Made Tech Reports Robust H1 Growth, Trading Ahead of Upgraded Expectations

Made Tech H1 FY26: revenue up 28% with profits and cash stepping on

Made Tech Group PLC has posted a strong first half to 30 November 2025, delivering record revenue and higher profitability while confirming trading is ahead of its recently upgraded expectations. These are unaudited numbers, but the direction of travel is clear: better utilisation, fewer contractors, and solid cash generation.

Metric	H1 FY26	H1 FY25	Change
Revenue	£27.8m	£21.8m	+28%
Gross Profit	£8.7m	£7.8m	+12%
Gross Margin	31.2%	35.8%	-460 bps
Adjusted EBITDA	£2.4m	£1.8m	+35%
Adjusted EBITDA margin	8.7%	8.2%	+50 bps
Statutory profit before tax	£1.3m	£0.4m	+186%
Adjusted profit before tax	£1.9m	£1.5m	+31%
Basic EPS	0.46p	0.16p	+187%
Adjusted diluted EPS	0.74p	0.66p	+12%
Sales bookings	£13.4m	£42.0m	-68%
Contracted backlog	£74.4m	£80.8m	-8%
Net cash	£11.9m	£9.1m	+30%

What is driving the improvement in profitability

Adjusted EBITDA rose 35% to £2.4m, with margin up to 8.7%. Adjusted means it excludes impairments, exceptional items and share-based payments. The lift came from better operational gearing and a deliberate shift away from contractors.

Contractors made up around 14% of billable staff in the half, down from about 19% in H2 FY25. That mix typically supports gross margin because permanent teams are cheaper on a like-for-like basis and improve delivery continuity. Management expects contractor proportion and utilisation – the percentage of time staff are chargeable to clients – to keep improving in H2, which should help gross margin.

The caveat: bookings were light, but pipeline is rebuilding

Sales bookings were £13.4m, down 68% against an unusually strong comparator. Contracted backlog – the future revenue already under contract but not yet delivered – stood at £74.4m, 8% lower year on year and down from £92.2m at FY25.

This is the main weak spot in the release. Management is clear that bookings can be lumpy and points to a re-acceleration in UK Government procurement since autumn 2025. Several opportunities have converted after the period end, and the late-stage pipeline suggests more momentum in Q4 FY26 and into H1 FY27. For now, the existing backlog provides a strong underpin for the rest of FY26.

Cash and balance sheet: optionality without leverage

Cash increased to £11.9m with no debt, up from £10.4m at year end and £9.1m in H1 FY25. Operating cash flow was £1.9m, helped by tighter working capital as debtor days improved to 46 from 53. Capital expenditure was modest at £0.2m and lease liabilities rose as more office leases sit on balance sheet under IFRS 16.

A healthy cash position gives flexibility for investment and M&A. The Employee Benefit Trust held 2.2% of issued shares at period end, which can help manage dilution from options.

Outlook: trading ahead of already upgraded expectations

Management says trading is ahead of recently upgraded expectations and anticipates Adjusted EBITDA to be materially ahead of market consensus, helped by contractor mix, utilisation and operational leverage. For reference, the company cites FY26 consensus of £55.1m revenue, £4.8m Adjusted EBITDA and £13.3m cash, and FY27 consensus of £58.0m revenue, £5.2m Adjusted EBITDA and £16.9m cash.

Procurement activity across government has picked up since the autumn, and recent bid conversions back up the confident tone. If margin tailwinds play out and bookings accelerate as indicated, FY26 profitability could surprise positively versus the market’s model.

Delivery footprint: national programmes and growing AI work

Made Tech highlights work with national impact, including secure sharing of millions of patient records, digitised assessment for reception-age children, and programmes across justice and public safety such as electronic monitoring and offender management. The group also progressed the reimagined Met Office weather application and continued delivery on Homes for Ukraine.

Artificial intelligence remains a focus. The company is embedding AI-enabled delivery and data capabilities across client programmes, emphasising the need for reliable data and modern platforms. In practice, that should support longer-running, higher-value engagements as departments move from experimentation to scaled use.

Software ambitions: early stage, disciplined approach

The software product business, primarily targeting local government, continues to develop solutions for repeatable needs. Sales cycles are lengthy and complex, but client feedback has been encouraging. The group remains early in commercialisation and is disciplined on investment, while actively exploring targeted acquisitions to broaden capability and accelerate the division.

People and leadership: scaling teams and appointing a new CFO

Headcount rose 16% during the half to 433, supporting delivery and growth. Annualised retention improved to 84% from 80%, and the contractor reduction should improve margin quality and client collaboration. Around 37% of eligible employees participate in the Save As You Earn scheme, aligning staff with shareholder outcomes.

On leadership, Neil Elton will step down as CFO after a handover, and Richard Swinyard joins as Chief Financial Officer from 2 March 2026, bringing experience in technology services and private equity-backed environments.

Why this update matters for investors

Positives I like

• Strong top-line growth and step-up in profitability, with Adjusted EBITDA margin improving to 8.7%.
• Clear margin levers in play: contractor mix moving lower and utilisation rising.
• Robust cash position of £11.9m and no debt, supporting organic investment and M&A options.
• Management signalling Adjusted EBITDA materially ahead of consensus for FY26.
• Improved working capital discipline, with debtor days down to 46.

Balanced by watch-outs

• Sales bookings of £13.4m were sharply lower versus a strong comparator, and contracted backlog fell to £74.4m.
• Gross margin at 31.2% remains below last year’s 35.8%, even if trending better than H2 FY25.
• Growth in headcount brings execution demands to maintain utilisation and delivery quality.

Key definitions for context

• Adjusted EBITDA: operating profit before depreciation, amortisation, impairment, share-based payments and exceptional items.
• Sales bookings: total value of sales contracts awarded in the period, expected to be delivered in FY26-FY30. Net bookings subtract lapsed contract values.
• Contracted backlog: contracted revenue not yet recognised. It provides revenue visibility.

What I will watch next

• Bookings cadence in Q4 FY26 and H1 FY27, and its impact on contracted backlog.
• Gross margin progression as contractor proportion moves lower and utilisation improves.
• Delivery on the statement that Adjusted EBITDA will be materially ahead of FY26 consensus.
• Cash trajectory against the £13.3m FY26 consensus cited by the company.
• Updates on AI-led wins, managed services, and any targeted M&A.
• Smooth CFO transition to Richard Swinyard.

Overall, this is a confident set of interims from Made Tech. Bookings softness is the obvious blemish, but momentum since the period end, stronger margins and a debt-free balance sheet give the Board room to keep compounding. If the pipeline converts as flagged, the second half could extend the positive trend.