Made Tech Group PLC (AIM:MTEC) shares were climbing in Thursday’s early deals after the British data company said it expects revenue for FY25 to be around £46.4 million, up 20% from the prior year.
In a trading update, ahead of full year results to be released in September, it said earnings (adjusted EBITDA) are likely to be around £3.4 million, up almost 42%, with net cash rising 37% to £10.4 million.
It comes as the company secured £82.1 million in new bookings, more than double the previous year, notably including a three-year, £8.4 million contract with the Ministry of Justice. The firm said its contracted backlog stands at £92 million.
Chief executive Rory MacDonald highlighted strong revenue growth, improved profitability and continued free cash flow generation seen during the period.
It comes as the UK’s Labour government has been reviewing how it uses technology, and its spending.
“The UK government's renewed focus on digital transformation and data as a growth asset through the recently announced Spending Review, the State of Digital Government report, the UK's Modern Industrial Strategy and the Strategic Defence Review has reinforced a growing long term market opportunity with clear demand for modern digital technology and the potential for sustained returns,” MacDonald said.
He added: “With a strong balance sheet, significant cash position, tight cost control measures, and future revenue underpinned by a strong Contracted Backlog, we believe Made Tech is well placed to continue driving organic growth and to accelerate progress through targeted inorganic growth opportunities where appropriate."
In London, Made Tech shares rose by 15.4% to 35.19p, valuing the small-cap data business at over £50 million.