Made Tech Group (LON: MTEC), an AIM-listed provider of digital, data and technology services to the UK public sector, saw its shares jump sharply on Tuesday after announcing its largest-ever contract award and raising financial guidance for the second time this year.
The shares opened at 40.5p and have risen as high as 44p, last trading near 43.1p, up 12.7% from Monday’s close of 38.25p. Volume of around 4.2 million shares was well above the typical daily turnover of under a million shares seen in recent weeks. The intraday high approached but did not exceed the 52-week peak of 46p.
Made Tech said in an RNS statement released before the London market opened that it had been appointed as part of a consortium delivering a four-year UK government contract, with the portion attributable to the company worth approximately £40m — the largest single award in its history. Alongside the announcement, the board upgraded FY27 revenue guidance to a range of £63m to £66m and adjusted EBITDA guidance to £6.3m to £6.6m, both ahead of prior market expectations of £60.3m revenue and £6.0m adjusted EBITDA.
Revenue from the new contract is expected to begin only in FY27 and ramp more significantly in FY28, meaning Tuesday’s re-rating reflects improved visibility over future earnings rather than any immediate boost to current-period revenue. Contracted backlog — the total value of work already secured but not yet delivered — has risen to approximately £115m following accelerated bookings in the second half of FY26 combined with the new award. Against a market capitalisation of around £57m, a £40m contract represents a substantial addition to the company’s order book, which helps explain the scale of the share-price reaction.
Rory MacDonald, chief executive of Made Tech, said: “This is the largest contract award in our history and marks an important milestone in our growth. The award also endorses our position at the centre of a number of critical programmes across government. Importantly, it also provides greater visibility over future revenues and underpins the Board’s confidence in upgrading its expectations for FY27 while reinforcing our confidence in the Group’s medium-term growth trajectory. We look forward to working alongside our consortium partners over the coming years.”
With shares trading near their 52-week high, the next test for Made Tech will be converting its expanded backlog into delivered revenue once the new contract begins in FY27.