Made Tech Group PLC (MTEC) AI Stock Analysis

• Market Cap: £58.97M
• Dividend Yield: N/A
• Average Volume (3M): 852.62K
• Price to Earnings (P/E): 42.7
• Beta (1Y): 1.81
• Revenue Growth: 20.40%
• EPS Growth: N/A
• Country: UK
• Employees: 426
• Sector: General
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 149,287,060
• 10 Day Avg. Volume: 1,467,301
• 30 Day Avg. Volume: 852,616
• PEG Ratio: -0.22
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 16.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 44.00p ▲(31.34% Upside)

The score is driven primarily by improving financial performance (return to profitability, stronger cash flow, low leverage) and supportive technical momentum. These positives are partially offset by a high P/E valuation and the company’s history of earnings and cash-flow volatility, while recent corporate updates provide an additional positive tilt.

Positive Factors

Revenue & profitability recovery

A return to profitability with double-digit revenue growth signals the company has stabilized its core delivery model. This strengthens contract competitiveness, improves reinvestment capacity, and provides a firmer base to scale recurring managed services over the next 2–6 months.

Conservative balance sheet / low leverage

Very low leverage and positive equity give the business durable financial flexibility to bid for longer public contracts, absorb timing mismatches in project payments, and fund selective M&A or investment without stressing liquidity during typical public-sector procurement cycles.

Improved cash generation

Material FCF improvement and close conversion of net income to free cash flow (~0.95) enhance earnings quality and fund day-to-day operations. Stronger cash conversion supports investment in delivery capacity and managed service retention, improving long-term serviceability of contracts.

Negative Factors

Earnings & cash-flow volatility

The recent recovery follows several years of unstable profits and intermittent negative cash flow, indicating underlying business cyclicality. This historical volatility increases execution risk on new contracts and complicates multi-period planning for staffing and investment.

Modest margins

Relatively low net and EBITDA margins limit the company's ability to absorb cost inflation, higher staff costs, or pricing pressure in tendered public-sector work. Margin modesty reduces buffer for reinvestment and makes sustained profitability sensitive to utilization and pricing swings.

Dependence on UK public sector frameworks

Heavy reliance on public-sector customers and framework-based procurement concentrates revenue risk around government budgets, long tender cycles and competitive call-offs. Contract timing and renewals create structural revenue lumpiness and exposure to policy and budget shifts.

Made Tech Group PLC Business Overview & Revenue Model

Company Description

Made Tech Group Plc provides digital, data, and technology services to the public sector in the United Kingdom. The company offers digital delivery, data infrastructure and insights, embedded capabilities, and legacy application transformation services. It serves central and local government, housing, healthcare, transport, and education; police, justice, and emergency; and space, defense, and security sectors. The company was formerly known as Made Tech Group Limited and changed its name to Made Tech Group Plc in September 2021. Made Tech Group Plc was founded in 2008 and is based in London, the United Kingdom.

How the Company Makes Money

Made Tech Group PLC generates revenue primarily through the provision of consulting services and digital transformation projects for public sector clients. The company engages in long-term contracts with government agencies and departments to deliver customized technology solutions, which include software development, IT infrastructure modernization, and data analytics services. Key revenue streams include project-based fees for service delivery, subscription models for ongoing support and maintenance, and consulting fees for strategic digital advisory services. Made Tech's earnings are significantly influenced by its ability to secure government contracts and maintain strategic partnerships within the public sector.

Made Tech Group PLC Financial Statement Overview

Summary

FY2025 shows a clear turnaround with revenue up ~12.7%, a return to profitability, and materially improved operating/free cash flow. The balance sheet is conservatively financed (debt-to-equity ~0.08) with positive equity, but multi-year volatility (prior losses and choppy cash flow, including negative periods) keeps the score below top-tier.

Income Statement

The business returned to profitability in FY2025, with revenue up ~12.7% and positive operating and net margins after losses in FY2023–FY2024. Gross margin remained solid (~32%), but overall profitability is still modest (net margin ~3.0%, EBITDA margin ~5.6%) and the recent history shows earnings volatility, including negative margins in the prior two years.

Balance Sheet

The balance sheet looks conservatively financed in FY2025, with very low leverage (debt-to-equity ~0.08) and positive equity (~£14.5m). Return on equity improved to ~9.6% alongside the earnings recovery. A key watch-out is the uneven historical profile (including a prior year with negative equity), which suggests the capital base and profitability have not been consistently stable over time.

Cash Flow

Cash generation strengthened in FY2025, with operating cash flow of ~£3.1m and free cash flow of ~£2.9m, and free cash flow growth of ~50.7% versus the prior year. Free cash flow was broadly in line with reported profit (free cash flow to net income ~0.95), supporting earnings quality. However, cash flow has been choppy historically (including negative operating/free cash flow in FY2023 and negative free cash flow in FY2024), so consistency remains a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.43M	46.43M	38.57M	40.20M	29.29M	13.33M
Gross Profit	14.84M	14.84M	14.01M	14.39M	11.26M	5.01M
EBITDA	1.88M	2.59M	-1.77M	-1.10M	49.00K	-511.00K
Net Income	1.40M	1.40M	-2.45M	-1.60M	-308.00K	-781.00K
Balance Sheet
Total Assets	19.37M	19.37M	15.63M	20.18M	21.18M	4.22M
Cash, Cash Equivalents and Short-Term Investments	10.41M	10.41M	7.65M	8.47M	12.33M	922.00K
Total Debt	1.09M	1.09M	0.00	140.00K	320.00K	1.73M
Total Liabilities	4.89M	4.89M	3.14M	4.97M	6.39M	5.01M
Stockholders Equity	14.49M	14.49M	12.49M	15.21M	14.79M	-787.00K
Cash Flow
Free Cash Flow	2.93M	2.93M	-568.00K	-3.69M	-661.00K	48.00K
Operating Cash Flow	3.06M	3.06M	778.00K	-521.00K	1.68M	320.00K
Investing Cash Flow	-139.00K	126.00K	-1.10M	-3.14M	-2.34M	-272.00K
Financing Cash Flow	-419.00K	-424.00K	-506.00K	-194.00K	12.07M	-112.00K

Made Tech Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MTEC, the sentiment is Positive. The current price of 33.5 is below the 20-day moving average (MA) of 36.54, above the 50-day MA of 33.24, and above the 200-day MA of 33.29, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 70.62 is Negative, neither overbought nor oversold. The STOCH value of 75.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MTEC.

Made Tech Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCT	75 Outperform	£2.85B	21.66	41.77%	2.05%	51.50%	11.62%
FDM	74 Outperform	£177.12M	11.43	24.53%	13.93%	-27.01%	-49.07%
TRD	72 Outperform	£50.72M	26.62	44.27%	2.69%	30.01%	138.65%
MTEC	69 Neutral	£58.97M	42.74	10.36%	―	20.40%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
RCN	54 Neutral	£190.36M	77.10	1.35%	3.01%	-31.46%	297.44%
TPX	50 Neutral	£21.70M	-2.83	-17.47%	―	-5.84%	55.30%

Made Tech Group PLC Corporate Events

Made Tech Group PLC Reports Strong First Half Performance, Expects to Surpass Market Expectations

Made Tech Group PLC announced a significant trading update for the first half of FY26, reporting a 27% increase in revenue to approximately £27.7 million and a 33% rise in adjusted EBITDA to around £2.4 million. The company remains debt-free with strong cash flow, and its contracted backlog provides solid coverage for future operations. Despite softer sales bookings compared to the previous year, the company expects to exceed market expectations for FY26, driven by operational efficiencies and a strong sales pipeline. The UK Government’s emphasis on technology positions Made Tech well for future growth, with the company expressing confidence in its outlook.

Made Tech Group PLC Announces New Employee Share Options

Made Tech Group PLC announced the granting of awards over ordinary shares to employees through its Long Term Incentive Plan (LTIP) and Save As You Earn (SAYE) scheme. The LTIP options, granted to senior employees, are subject to performance conditions and vest over three years, while the SAYE scheme, launched in 2025, allows employees to purchase shares at a set price, with a significant portion of the workforce participating. These initiatives aim to align employee incentives with company performance, potentially enhancing stakeholder value and company growth.

Made Tech Group PLC Announces Successful AGM Outcomes

Made Tech Group PLC announced that all resolutions were passed at its recent Annual General Meeting, reflecting strong shareholder support. This outcome is likely to reinforce the company’s strategic direction and operational stability, potentially enhancing its positioning within the digital transformation sector for the UK public sector.