Made Tech Group commenced two year contract with NHS digital worth up to £37.5m and saw revenue increase 131%.
However, news of staffing issues has seen Made Tech shares crash over 50% in two trading sessions.
Made Tech Group is a significant digital, data, and technology services provider to the UK public sector.
Made Tech recorded revenue growth of 131% to £11.7m from H1 21 to H1 22. The Central Government contributes 71% of the the Group’s revenue.
The Group established itself as a significant and trusted partner to government agencies, resulting in a large number of new contracts, a large order backlog, and a strong sales pipeline for the upcoming months. Despite some immediate obstacles in meeting the client’s needs, the directors are optimistic that substantial growth will be attained in the coming years.
Made Tech NHS Contract
The £37.5m contract was granted through the NHS Digital Capability framework, and it will be implemented by Made Tech and its consortium partner Answer Digital, with Made Tech receiving roughly half of the contract amount. The delivery of the contract is already underway.
NHS Digital is platfrom provider which allows clinics to design, develop, and manage national IT and data services to improve health care and for patients.
Made Tech’s revenue prospects in FY23 and FY24 will be greatly improved as a result of the arrangement. The award is in keeping with the Group’s stated objective to expand Made Tech’s footprint in the Health & Social Care industry, which was disclosed at the time of its IPO.
“We are delighted to announce our first major contract within Health & Social Care. Twelve months ago, we began building a team focused on Health, and this contract is a testament to their hard work and focus. We are also excited to be working with the NHS, one of the country’s most cherished institutions, in its quest to further improve its speed of service and reduce waiting times. We look forward to delivering this contract and to growing our services to this key Health and Social Care market,” said Rory MacDonald, Chief Executive Officer, Made Tech.
Made Tech’s Staffing Difficulties
Although the top line growth made for good reading, additional costs related to staffing and recruitment is set to damage profits in the coming periods.
“Despite some short-term challenges relating to IR35 and staffing of public sector contracts and increased overhead costs, which we expect to impact our trading performance in Q4 FY22 and into the first half of FY23, the Group’s significant new contract bookings and robust pipeline underpin the Board’s confidence in the medium term outlook,” MacDonald said.
Made Tech shares were trading at 44p, down 12% on the day on Tuesday.