Earnings Call: H2 2025

Sep 25, 2025

Summary

FY 2025 revenue rose 20% and adjusted EBITDA 47%, while bookings climbed 128% and backlog reached £92.2m. FY 2026 guidance anticipates growth, profitability improvement and free cash generation, supported by higher procurement activity.

Morning, everyone. Welcome to the FY 2025 results for Made Tech Group. These are the results through to 31st of May 2025. You have myself and Neil Anderson, our CFO, with you this morning. Looking forward to taking you through the progress we have made in FY 2025 and sharing some of the thoughts on what the rest of FY 2026 looks like. In terms of plan today, we are going to run through some of the highlights, to talk through those at a fairly high level. Neil is then going to take you through the financial results in some detail and talk through how they have looked. I am then going to take you through some of the operational updates and the outlook for FY 2026, and then we will move on to Q&A and any questions that anybody has. If we jump forward to the highlights. I think FY 2025 was a very strong year of delivery for the business. That delivery was done in the backdrop of quite a challenging environment, lots of political change, lengthy spending review process. Really pleased that we have been able to grow at pace and achieve these set of excellent results within the context of that quite difficult backdrop and market. Really pleased with how we have got on in FY 2025. Revenue grew to GBP 46.4 million, up 20%. Another strong year of top-line progress. Adjusted EBITDA up 47% to GBP 3.5 million, a margin of 7.5%. Generating free cash flow, which was something we talked about previously, and now starting to come through nicely. Net cash position increasing by 36% to GBP 10.4 million. That is 2 years of now profitability improvement, margin improvement, and cash generation to really helping to underline the progress we are making in building a business that is sustainable, profitable, and got the right foundations for moving forwards. On the sales performance, I think that was even stronger. Bookings reached GBP 82.1 million, which was a 128% increase on the prior year. That brought our contracted backlog up by 52% to just over GBP 92 million. Really importantly, a lot of this growth came from existing customers, signing new contracts with existing customers and a handful of new ones, but most of it was existing customers. Really highlights our ability as an organization to win customers and build long-term relationships, which help the business sustain over the medium term. Really, really pleased with sales performance of the business. We have made really good progress on strengthening our proposition and offering within the market. We have continued to invest into things like Data and AI, where we are seeing more and more demand for that within client environments. We have continued to scale our managed services offering. We have got more and more managed services engagements, and we are seeing more clients move from delivery through to managed services, which is a really important thing we are looking to do moving forward. We made a number of changes in the services organization, which I will talk about a little bit later. We have continued to push forward on the software side of things, which again, I will talk a little bit more about. Alongside all of this, obviously, people are at the absolute core of our business. We have welcomed 86 new colleagues into the business, 50 promotions, done a whole bunch of work on the employee proposition. We launched a Save As You Earn scheme. We moved into a new London office. There is a ton of stuff we have done on the people front as well, which has driven improvements in employee satisfaction and reduction in attrition within the business. Overall, FY 2025 has been a really positive year for the Made Tech business. With that, I will hand over to Neil to talk through the financials. Thank you, Rory. This is a summary of the financial results for the year ending 31st of May 2025. The audited results, which were announced this morning, and where relevant, you will see the prior year comparatives again over a 12-month period until the 31st of May 2024. Happy to say that it has been a strong performance across most of the metrics as summarized on this table. Revenue up 20% to GBP 46.4 million. Gross profit up 13% to GBP 14.8 million. You will note though that the gross profit margin came back by 220 basis points to 32% from 34.2%, and I will give a little bit more detail on that on a later slide. Sales were up 128% up to GBP 82.1 million against a particularly weak comparative in FY 2024 of GBP 36 million. That meant, as Rory said, the contracted backlog is the strongest it has ever been at GBP 92.2 million. Again, 32% increase year on year. Adjusted EBITDA, which is EBITDA excluding impairments, exceptional items, and share-based payments, increased by 47% to GBP 3.5 million. The cash generated from operating activities increased by 294% year on year, with net cash as a result of that increasing to GBP 10.4 million for 36% increase. Again, I will give a little bit more flavor around cash flow a little bit later on. The other thing related to that is earnings per share. Basic earnings per share as a result of that increased from a loss of GBP 0.0164 last year to positive GBP 0.0094 this year. In terms of adjusted diluted earnings per share, that went from a return of GBP 0.0092 per share in FY 2024, a 40% increase up to GBP 0.0129 in FY 2025. The next slide gives a little bit more color around revenue and gross profit. As in previous years, you will see there on the left-hand side, we break down our revenue into the four key industry groups which we service there. Worth saying that local government, which we have there, includes MHCLG, so the Ministry of Housing, Communities and Local Government, which operationally sits within central government. But for these purposes, we split that out because it is a way in which, alongside our software business, we address that local government market. What you will see there is that all our industry groups year-on-year, with the exception of public safety and defense, which was flat. But again, they had a good sales period and they entered FY 2026 with a strong contracted backlog, which we will see that coming through. But all other industries grew strongly last year. Central government, as a result of that, represents 36% of the overall group. So that is our largest sector, closely followed by public safety and defense at 34%, and health at 16%, with local government representing 14%. The graph on the right-hand side exemplifies the strong client retention we have seen since IPO here in the case of FY 2021. But actually, if we look even further back, we will see that key clients we have won in each every year, we have retained and are still working with them. As Rory said, I think the key story in FY 2025 is more about deepening relationships with our current clients more rather than new logos particularly, which we acquired in FY 2025. But again, that is the ambition for FY 2026. Then in terms of gross profit, I mentioned earlier, we actually saw the gross profit margin decline year-on-year. There are really two things going on there. In terms of the underlying productivity and utilization of the people within the business, we saw a further strengthening of that during the period. But as we flagged at the time of our interim results, partly in anticipation of the general election last year, which then came forward somewhat, we did ramp up the number of contractors we had in the business to deal with that risk there. Since then, obviously, the general election came forward, but also because of the strong demand, we have seen demand go up. So we are in the process of working that contractor figure down. But what it meant was that compared with FY 2024, when around about 9% of our billable employee or billable base was represented by contractors and partners, in FY 2025, that had increased to 19% and it peaked in the low 20% towards the end of last year, FY 2025. Since when, and we guided at the time of the interim that we thought it would take us FY 2026 to get that down to a target ratio of closer to 10%, so closer to where we were in FY 2024, that will be a benefit to gross margins in the year ahead. Next slide gives a little bit more detail around that particularly strong sales bookings performance we saw in the year compared with FY 2024. So you will see there the 128% increase in the green block in the middle there, the increase in sales bookings over and above FY 2024. Offsets against the revenue we recognized during the year of £46.4 million. Some key wins there, which we notified during the year, the Department for Education of £13.2 million contract, which included managed services component to it, but also DBT, Department for Business and Trade earlier on, and then the MOJ. And again, a new logo there in terms of the LAA of GBP 8.4 million contract over three years, resulting in, as I said, the contracted backlog of GBP 92.2 million. The sales booking figure is, in essence, the value of the sales we make. That can include call-off contracts, so it's not necessarily a guarantee that we ultimately will recognize the full value of all these contracts. You'll see there something called lapsed contracts. So that is the value of contracts which we had sold in prior periods, but ultimately, we didn't recognize the full value of it before that contract came to an end. So that represents about 5% of the sales bookings we made in the year. Looking ahead to FY 2026, we started the year very strongly in terms of bid activity. We're very much expecting that this will be H2-weighted. We're seeing a real uptick in activity over the last couple of months or so, and we're taking part in a lot of bids, which we are expecting to see particularly land in the second half of the year. But in the meantime, that contracted backlog figure of GBP 92 million strongly underpins our revenue expectations and profit expectations for FY 2026. The next slide gives a little bit more color around the P&L, and is in essence the bridge between operating profit and loss in FY 2024 through to Adjusted EBITDA. So starting with reversal in terms of Adjusted EBITDA, you'll see there the advance in margin from 6.2% to 7.5%. There are a number of moving parts to get to operating profit at the top of the screen there. The key one is the impairment which we did in terms of our technology IP in FY 2024, that charge there of GBP 4.3 million. No impairments this year. The amortization charge on intangible assets therefore relates to our capability IP. There was a GBP 600,000 charge which went through in FY 2025, and there's one year left to run on that, and therefore there'll be another GBP 600,000 charge in FY 2026, at which point we will not currently hold any intangibles on our balance sheet. As we flagged last year, at the moment we are still continuing to do development on things like software products, but we're putting all that through the P&L for the time being. We'll give a little bit more color on that in a moment. Depreciation came down slightly year-on-year. We are expecting that to increase next year. We're investing more, particularly in our sort of IT-based laptops and things like that, which were coming up for renewal. But also under IFRS 16, we've entered into a few longer leases than previously in our London, Manchester and Bristol hub locations. As a result of that, you'll see the IFRS 16, the change in accounting, which will mean that we have an asset in our balance sheet and no depreciation charge on that one. Also there's an increase in the share-based payment charge last year, mainly driven by the ELT awards made at the beginning of the year. Also the Sharesave scheme which we launched for all employees during the year very successfully received 38% take-up, which we're very happy with. We are looking to do that again in this year so that all employees can participate in the equity journey and story of the business. Next slide. There is a very tidy balance sheet. Not too much to see here. Tangible fixed assets, again, the main impact there, main increase is the IFRS 16 lease adjustment I mentioned earlier. Intangible assets, again, that will reduce over the course of the next year to zero. Deferred tax assets, for some reason that will map to our share-based payments. The options where we are expecting to see some sort of tax relief at some point in time. To confirm that last year we used up all our tax losses, so we are now in a position where we are making corporation tax payments and anticipate that will continue into the future. Cash and debtors is very good. Again, all our clients are government-related. There is very limited counterparty risk. Most terms are on 30 days, and most departments pay us very quickly. So again, very good cash collection, very good cash generation there. In terms of creditors and payables, again, we like to pride ourselves off that, where we pay people on time. So that is very tidy, very under control. One of the reasons for the increase in the balance is because of the strong performance last year. We will be paying some bonuses to some staff this year, and therefore there is a provision there which there wasn't in the FY 2024 comparative. In terms of cash, all those things ultimately have meant that cash advanced 36% to £10.4 million. Cash generated from operations was up to £3.1 million from £800,000 in FY 2024. As I mentioned last year, we did capitalize £1.4 million worth of development costs on the balance sheet. We are not capitalizing anything at the minute. The equivalent charge we put through the P&L this year was about £200,000, and that's based on targeted investment, which is more client-led in terms of the commercialization phase of our software IP, but that is all going through the P&L. Just to emphasize, the company has no debt, so that £10.4 million gross cash figure is also our net debt figure, and we are looking to make use of that cash balance in the foreseeable future. Super. Thanks, Neil. I was going to run through, kind of provide a bit more context on some of the operational things that have been going on within the business within the last year. Starting on the industry verticals that we target. I'll start with health and life sciences. So yeah, pretty solid year for the health and life sciences. Supported a number of kind of different government programs, and I'll talk about one of those, Pharmacy First, shortly. Saw revenue grow there 19%, which was pretty good performance given the market backdrop. I think slightly challenged more in this area. Bookings were not quite as strong as we saw in some of the other industries and didn't get a place on the Digital Capability for Health 2 framework, which was very disappointing. Though we flagged that previously at the interims. And obviously there's been a big set of changes announced around the future of NHS England and moving that into Department of Health and Social Care. So there's a lot of change that's been going on within this vertical, and I expect there to continue to be changes in this area moving forward. That being said, we still think there is real ability to deliver significant impact in healthcare moving forward. And although the next 12 months might be a little bit more challenging, we think we're still in a really good position to continue growing and to developing this part of the business. On the public safety, national security, and defense front, yes, as Neil mentioned, revenue was relatively flat in this area year-on-year, and that was really driven by one particular client, which we knew going into this year wouldn't be doing as much in FY 2025. So that sort of held back some of the revenue growth in this area. That being said, I think we had a really fantastic year from a sales bookings point of view in public safety and national defense. We won a number of new contracts within the justice system. We got places on a number of small defense frameworks. So overall, this industry is quite nicely set up in FY 2026 and moving forwards with the contracted backlog and mix of clients we've got in this space. So yeah, excited about what that looks like moving forwards. On the central government front, this remains our largest industry. It grew by 41% last year, which was excellent performance. As touched on earlier, that was driven by a number of wins, primarily with existing customers, but there were some new customers in there, like the DfE, their Standards and Testing Agency that we announced last year. So really good to see that very, very strong performance in that area. Margins in this area were a little bit more under pressure than in the other two industry referenced. I think part of that was driven by more of the contracts landing into the central government part of our organization than some of the other organizations, and that's part of the byproducts of the growth that was driven in this industry. But overall, delivered some really fantastic work within central government over the last year. In recent weeks, there's been a number of pretty high-profile launches that we've delivered within central government that we'll be talking about at our interims. So yeah, looking forward to updating more on that because some really good stuff we've been doing there. On the local government and housing front, as Neil sort of touched on, primary focus for this area is the software side of things and going to market with software into this market. Seeing good growth year-on-year on the software revenue side of things, but from a very, very small base. So yeah, pleasing, but still a long, long way to go. So tons more work for us to do within this area, and I'll talk a little bit more about that shortly. Just wanted to touch on clients and client base. We continue to have an excellent reputation across the U.K. public sector, continue to be trusted by departments at the very, very heart of government. We continue to have six of the top 10 spending government bodies as clients, which is great. The revenue from these continues to be pretty sticky, pretty high quality, and gives us very long-term visibility. We are very fortunate to be working with these customers and continue to grow these customers. As we touched on earlier, contracted backlog growing to £92.2 million. That gives us a really good foundation to continue building on and continue growing on within the core customers that we work with. That base enables us to expand and do more within those customers as well. That gives us a really good foundation. On the delivery side of things, we are quite nicely diversified. Across FY 2025, I think we have delivered about 150 work streams across customers. Yes, across central, health, defense, justice, local government, all of these areas. What is quite nice about that is we are not overly dependent on one particular area. We have got a real spread across work streams, across clients, across industries, covering lots of different things. Also continue to see very strong client retention. Once we engage with the customer, we tend to build long-standing relationships that provide stability and repeat business. We see that coming through in things like our client satisfaction scores. These remain very good, and reflect the high-quality reputation we have for good quality delivery and reliability of services we provide. Overall, client base remains very strong. I thought I would just talk through a couple of things we have been working on in FY 2025. The first one I thought I would touch on is Pharmacy First. This is an NHS England initiative that launched in January 2024, and really this is about driving more patients to pharmacies for first-line minor health conditions rather than putting the burden on GPs. We have been doing a whole bunch of work with NHS England on this program, enabling data sharing between some of its core GP systems and pharmacies to prevent pharmacies having to use faxes and phone calls as much. To enable much more efficient sharing of that. They have been working very closely with the NHS Direct Care team, and working with a number of suppliers who provide GP systems and parts of the central NHS organizations, to roll out the technology that enables Pharmacy First to operate. Huge impact. More than 4 million patients have accessed Pharmacy First services since it launched, and 8% have been referred back to GPs. Really having a very significant impact in trying to reduce the burden on GPs. Yes, good example of the type of thing we are involved in within NHS England, within some of our clients. I thought I would provide another example. This is some work we have been doing with the Home Office. We have worked with Home Office for the last four years as part of what is called their Enablers portfolio. Really that Enablers portfolio is responsible for making it easier for every part of the Home Office to deliver digital technology. Within this delivery, we've been doing a whole bunch of different work across different parts of the Home Office, trying to really streamline how they remove duplication around the way Home Office is delivering different parts of the technology. Things like improving CRM systems, improving central intelligence, and making that more joined up across the different parts of the Home Office. Seen some really fantastic results. User satisfaction increasing from 26% to 70%. We've saved significant amount of money in duplicate costs and reducing costs in different areas of the Home Office. Yeah, a good example of something that we're doing in a big government department to help them drive efficiency, and improve how they're providing services at a time when public services are under a bit of financial pressure. That's a good example of one of the things we're doing in the Home Office. We jump onto this next slide. I want to talk a little bit on some of the work we're doing on the services side of things, and really there's two key things I want to call out here. First thing's around continuing to build our end-to-end offering, and the second bit was around how we're working to try and improve the quality and the stickiness of the revenue that we deliver. On the end-to-end offering front, clients continue to look for partners who can support them on their end-to-end transformation journey. This is one of the key things we've been talking about for a few years but continues to be very true. As we look to scale and win larger and larger contracts, it's really important that we've got the breadth of capabilities to be able to support those clients on that full end-to-end journey. Right from early stage advisory through to delivery and then running services. We've done a bunch of work on this over the last year. We've made a number of changes around things like our cloud practices, our architecture practices. Some work on the cyber side of things. We've doubled down on some of the partnerships. AWS, you might have heard us talk about before. We do some work with Databricks, which is a big data AI-type partnership. We've done a lot of work around AI-enabled software engineering. Yeah, we're really investing in making sure that the services we provide enable our customers to really go from early stage advisory right through to run. One of the standout areas in the last 12 months really has been the Data and AI front. That practice has continued to grow really nicely, and I think what we're seeing across the board is more and more demand for support with Data and AI initiatives. Everywhere from Department for Education, Ministry of Justice, Department of Health and Social Care, the work we're doing in housing, all of these are looking for support with the Data and AI side of things. Really important part of our business, and we expect it to continue to be a really important part of our business moving forwards. Some of the work we've been doing in partnership with Databricks has also been really powerful there. We're doing more and more with them in different parts of the public sector and expect to do more and more of those moving forwards too. On the strategy and design side of things, we continue to build out and scale our offering in this space. Really this is about making sure we're embedded earlier in decisions and helping our customers to shape the program of change and helping to shape those things. We have been making some really good progress on that, so continue to see that move forward nicely as well. The other bit I wanted to touch on was quality of earnings and the stickiness of revenue. Really we've been spending quite a lot of time building and scaling our managed services offering over FY 2025. Really that's about making sure that as we deliver things for clients, we continue to be engaged long-term to provide the run of those services. I think we've highlighted the DfE contract last year, and that's a good example of the sort of thing we want to be doing more and more of, because it gives us good predictability and forward visibility. Overall, services, absolute core and foundation of our business and continuing to evolve this and move it forwards. To enable us to win larger and larger contracts and scale the offerings we're bringing to customers. Jump onto the next slide. Just wanted to touch on the software front. Software remains a really important part of our long-term strategy. We continue to see it complementing what we do in services and providing sort of recurring scalable revenue streams. That being said, it's not moved forward as fast as we would've liked. It's taken us longer to scale the go-to-market and get customer adoption than we anticipated. That being said, we have seen some good progress in the last year. I think revenue's probably up 100% in the last year within this area, but it's from a very, very small base. We want to continue to see that sort of trajectory and continue to see that growing moving forward. One of the things we would say is that a lot of what we're seeing from our growth and progression in this phase is from expansion of customers rather than net new. What we're finding is once we've got a software product in place within a particular organization, our ability to sell additional modules and upsells and scale from there is very, very significant. For us, the key thing we look at moving forward is how can we scale the customer base in this space as quickly as possible. We think M&A may be an interesting way to help us achieve that and really broaden that customer base moving forward. Overall software continues to be an important part of our long-term strategy. Definitely more work to do in this space. We remain very excited about it as an opportunity and we think it's an important part of the future of the organization. We jump onto the next slide. I thought to touch briefly on social value. Social value is pretty central to how government procures services. It's really not a side note for us as a business. It's really embedded very deeply into kind of how we operate as an organization and really kind of how we've operated for a number of years now. Some of you may be familiar, the government's released a new Social Value Model and really kind of what they've announced with that is essentially 10% of your weighting on public sector tenders is allocated to social value. It has a very direct impact on the ability to win contracts. It's not an optional thing to invest into. We need to be doing that to be able to win and succeed within this market. There's tons and tons of different things we're doing in this space. We've been doing a whole bunch of stuff around sort of being carbon neutral, embedding more green ways of working, hybrid models, lots of things in that front space. Lots of things on the workforce space. Diversity within the team kind of trends above sort of the tech average in the U.K. Lots of focus on wellbeing, flexible working, things like apprenticeships. We're an apprenticeship provider. Things like that are really important parts of kind of being an organization that delivers kind of strong amounts of kind of social value to customers. There's lots of other things we do in this space. I'm not putting them all on the slide here because I think it would take too long to go through. But it's absolutely critical for us to be able to provide kind of social value to our customers because it's what enables us to win and kind of compete on some of these contracts because 10% of the market is allocated to social value. It will continue to be a really important part of how we operate moving forward, because it will ultimately drive growth in the business. On the people front, total headcount is up, increased to 435, is up 14%. A good proportion of this has been the contractor increase. We saw that in H1 and continued to see that through to H2. As Neil touched on, we're working kind of hard to bring that number down because we really think that's important from a margin point of view. That's where it was at at the end of FY 2025. Really pleased to see attrition is down to 15% and we've seen much, much stronger engagement levels within the organization. We've been doing a lot of work internally on this and continue to see employee satisfaction scores improve, which is really good. We did a lot of work around internal structuring, sort of management development, introduced new careers frameworks, expanded our apprenticeship program. So lots of things to kind of help drive an environment which enables our people to succeed and build sort of longer-term careers at Made Tech. There's a lot of work on that over the last year, and I think a lot of that's been very successful. Neil touched on it earlier, but the Save As You Earn scheme, 38% take up of that was really fantastic to see. It's really great to have more and more of our colleagues who are sharing in the long-term success of the business. As kind of touched on earlier, looking to do that again in FY 2026 because it's really important to make sure we're all aligned and rowing in the same direction. Along with that, we also moved into a new London office. That's been selected to give us a good amount of flexibility moving forward, a good amount of burst capacity, similar model to what we're doing in Manchester and Bristol. That's been really great to have a new location. I think overall, we continue to invest really strongly in our people. That investment is paying off by stronger retention, delivering fantastic outcomes for our clients, and really building a culture that will sustain and continue to deliver the growth that we want to achieve over the coming years. That's all I wanted to cover on the operational side of things. In terms of outlook, I think we entered FY 2026 in a strong position. I think that was clear from the contracted backlog and the sales bookings we achieved last year. Trading has started in line with management expectations for the year. We were pleased to see that, and revenue is underpinned by the £92.2 million in contracted backlog we carried into the year. It really gives us very strong visibility and a fantastic foundation to continue driving the growth on. The conclusion of government spending review in June, July time, that now theoretically gives our clients good visibility through to 2028, 2029 on funding, where they can invest. We've really started to see that feed through into higher levels of procurement activity as we moved through the summer and people got back from summer holiday. There's a lot of activity going on on the procurement front at this point in time. Good increase there. That's really good to see. We're continuing to see the government talk very clearly about the key role technology is going to play in delivering its priorities. Driving efficiency outcomes in health, justice, education, all of these things are really key priorities for government, and technology plays a really key role in delivering those things. You'll have seen over the last year, numerous mentions of the role of technology by the government strategy documents around defense and the industry strategy in all sorts of different areas. Overall, there's a really solid basis and thesis for continuing to see the business succeed. We remain really well capitalized, debt-free, cash positive. Net cash position at the end of the year was good and obviously clearly advanced since then. We're in a very strong position to look at investing into capability and selective M&A opportunities as we identify them. Overall, we're super confident about FY 2026. We continue to expect to grow, drive profitability and free cash generation again. We will continue investing into the areas that would drive the business over the long term, and really looking to deliver strong returns to shareholders. I think I'll hand you across for Q&A. We have got a couple of hands up already. The first hand was Robert Chant. Robert, please go ahead. Thank you. Morning, Rory and Neil. The statement mentions potentially using debt financing for inorganic growth opportunities. You had over GBP 10 million of net cash. Does that mean there is more than potentially GBP 10 million to spend on M&A in the next year? Yeah. I think that is a very good one, Robert. Yes. Obviously, we are actively looking at M&A opportunities. In terms of working capital, focused on that, I would estimate we would probably want somewhere between GBP 4 million and GBP 5 million cash in the bank. So that means that we do obviously have a substantial pot and a growing pot of cash we could deploy to do M&A. We would, depending on the nature of the acquisition that we were looking at doing, consider using debt as part of that. I think we would be relatively cautious on that in terms of the leverage we would look to apply. But I think also it is fair to say that over the course of the last year and a half, two years, the advances seen in the share prices, I don't think we would be necessarily backward in coming forward in order to deploy our equity. I think in terms of our ambition and where we could go on that, we feel that we have a number of options ahead of us, of which cash and debt is part, absolutely. The next question comes from Kai Korschelt of Canaccord. Kai, please go ahead. Yeah. Good morning, gents. Familiar background there. Well done on the results. I had a couple of questions just around visibility and particularly backlog distribution. It is a multi-year backlog. I am just wondering how much of it, if you have any indication, is deliverable in the next 12 months versus multi-year? That was the first one. The second one was just around the planned push into other or new larger departments like HMRC or MOD. You have done really well with existing accounts. At the moment, what is the strategy or how would you approach potentially breaking into those departments? Thank you. Yeah. Kai, in terms of the contracted backlog figure. This was the total contracts sales. We are very happy with the position we finished at the end of last year. There are a number of things included in that. Again, we operate across a number of different clients. That is made up of a large number of different contracts. They can all vary in nature. Some of those might be individual statements for work or contracts, maybe call-off contracts that are only a year in length. Some of them could be much longer, say, three, four years' time. On average, I would say that we would look to recognize that revenue. As in the contracted backlog, there will be, on average, probably a two-year time frame over which we would expect to recognize that, with some creeping into year three. The cadence of that when we recognize it would tend to be more front-end loaded than back-end loaded. What we find is, particularly as we go for larger contracts, we have had a few very nice awards approaching GBP 20 million over the last year or so. Those tend to be contracts which we recognize over a longer period of time rather than a shorter period of time. It is very difficult to very quickly be able to say, "Oh, yes, well, that level of contracted backlog means that there is definitively going to be that level of revenue which we can recognize over these periods based on that." As we highlighted, there is always a possibility because these are time and material contracts, and we do not necessarily always see everything awarded under that, whether that ultimately always comes to fruition. I think what we can say is of that £92.2 million, that is particularly strong. Therefore, the wording we say is, we think it strongly underpins our revenue expectation for FY 2026. I think we feel very comfortable with that, with the anticipation, but also that will then take us very nicely and contribute very nicely to FY 2027 and beyond. On the second point, Kai, around some of the new areas we're focusing on. We've been making some investments into new sales leadership to help expand out into some of these areas. We brought in somebody specifically to lead on the defense side of things. We brought somebody into the organization who has very significant experience in the Home Office. So we're making very targeted, focused hires to help expand out. That alongside, we also have very strong profile and network across. We're using a combination of different things to really try and drive into those accounts that we're not currently active in. Sometimes we'll need to make decisions to be slightly more price competitive going in there to open up new accounts. We will make those decisions as and when we think it makes sense for the organization longer term value creation. We may decide to make decisions like that moving forward. Great. Could I just have just a quick follow-up then? I guess in terms of sales cycles for a provider like yourselves who doesn't have a track record in one of these accounts, what would the sales cycle typically be? I guess, would you expect to get deals in the current financial year, or is it slightly more longer term than that? I'll be disappointed if we don't win some new clients in some new areas in this financial year. I think the sales cycle on some of those new areas, certain parts of that is longer. Something like defense, where that is a very, very new area for us. I see that being a slightly longer horizon. Other areas like expansion, Home Office or HMRC or DWP as an example, these are areas where there's a lot of crossover with what we're doing in other parts of government already. The cycle on those shouldn't be as long. I'd say most of those central government-type departments we want to break into, they should be slightly shorter. I think my defense slightly longer would be my expectation. The other thing to touch on related to that is where we do see a slightly longer sales cycle, like in the MOD space, we may decide to subcontract into partners who have got very established positions in those markets. We have got conversations going on with You can probably imagine some of the organizations we are talking to there who have established positions and do not necessarily have the digital technology capability that we do. The next question is from George O'Connor at Progressive. George, please go ahead. Good morning, guys. Really nice to see the KPI evolution in this print. Three quickies from me, if you would not mind. Firstly, great to see the new career grading system, but given where gross profit has headed, are these contractors offering unique skills or is it simply a bodies count that you are looking for? Secondly, I appreciate that you are the delivery team, but can you give us any clarity in terms of how transform and run are stacking up at the moment? Finally, given that the U.K. Gov is now more sure-footed, any change from the new regime in terms of maybe outcomes-based pricing, pressure on underlying day rates? Are you seeing AI natives start to sniff into your accounts? Many thanks. Thanks, George. Right, we are going to go back over what those career grading. Contractors career grading contractors. Yes. Career grading, that is really a sort of an internal thing to give us more flexibility about how people progress within our organization, but also how they get deployed into client organizations. That is really about that kind of flexibility for us moving forward in terms of getting the right shape of people deployed into the right client organization. That has been an important thing to do, and we expected a bit more work on that in FY 2026. On the contractors front, our target state there is really to use contractors where they provide specialist skills. I think it is fair to say the numbers we have seen in FY 2025, they are inflated because we needed to bring headcount in. There is a whole bunch of contractors that we had in the business in FY 2025 and to some degree, kind of the early part of FY 2026 as well, where that is more about headcount numbers rather than specialist skills. What we try and do, and we try and actively manage is replacing those with employees where we can. We are on a quite an aggressive hiring push at this point in time to make sure that we can transition more and more of those more easily replaceable contractors with employees. I think long term, we would expect that sort of 10% of more specialist contractors to be about where we should be on the contractor front. That second one, managed services- The other side of the business. The other side of the business. Yes. We have invested into both the advisory design strategy kind of space. It is a relatively small area for us, but it is strategically really important because it gets us involved in conversations much earlier and therefore, we can shape and get a better sense on what is coming down the track and make sure we are well positioned for that. Yes, we have made a number of hires in that space. We continue to make some nice progress on it. We have not separated out in terms of revenue contribution from that area at this point in time. I think over time, we may decide to do that, but for right now, we do not do that. On the managed service side, again, we have made a number of hires into this space. We brought a new managed service leader into the organization to lead on the next phase of what that looks like. Somebody who's come from probably an organization some of you will be familiar with that was acquired last year by a big, big IT firm. We've continued to hire the right people into the organization to help scale up these things. Over time, I'd like to see a really nicely balanced services business that the bulk of what we will do will be delivery, but I'd like to see that managed service component becoming a reasonably larger component of our organization. Also the advisory early-stage stuff, but I probably don't see that becoming quite as large as delivery or managed services. Government procurement noticing changes in trends, AI pricing. Yeah. Great question on this. We're doing a lot of work around AI-enabled delivery, how we can really accelerate delivery using AI enablement. There's some fantastic things we're really doing on that front. We're really excited about it. We're trying to proactively have conversations with customers about how we can shift more and more towards outcomes-based opportunities. We're not seeing a push at this point in time from government on that. But we think it would be beneficial for us if we did see that. We're talking to customers, particularly friendly customers, about how we do more and more of that moving forwards. On the pricing front, I think it's fair to say, yeah, it is a competitive environment. We have definitely seen pricing pressure in a few places. We have been unsuccessful on some things because of pricing, and that's okay. We want to make sure we are pricing things that are right for our organization. If we can't win things on those pricing, then it's probably not the right business for us. But it's definitely a competitive environment from that point of view. The next question is from Paul Richards of Dowgate Capital. Paul, please go ahead. Thank you very much. Morning, gentlemen. Great set of results. Very much the type of numbers I am used to seeing from your time at LTG, so great to see that at Made Tech as well. Really encouraged to hear that pick up in procurement activity post the summer break. Just wondered on the shape on that, my understanding was that last year there was a number of small to medium-sized contracts that were available, but the larger ones, the multi-year ones, tended to get caught in government procurement. Obviously, you have had a couple of decent-sized wins, the multi-year contracts. But is it those ones that are now freeing up? Is it still lots and lots of small pieces of work, or is it the medium and now the larger ones now that you have got certainty of the spending review out to 2028, 2029, those are now coming up in the way that we hope they would? Yeah. Good question. We have seen a real mix, right? So we have seen some very large contracts come out, some medium-sized ones that we think are addressable by us, and some small, mid-sized ones that be more bread and butter for us. So we are seeing a real mix across most areas of government at this point in time in terms of the kind of stuff that is coming out to market. So the really large ones, we are seeing some of the larger departments like the Home Office. We are seeing some very, very major contracts come out there. And then in other places like education and lots of other areas, we are seeing decent-sized contracts, tens of millions, twenties of millions come out to market there across a number of different areas. So I think overall, I think it is a much healthier environment than it probably was six to nine months ago. But yeah, there is work to do. It is also a competitive environment. We have got work to do to continue pushing forward and win some of these things. Just hand back to Rory. Any closing remarks? Just a big thank you to all of you for joining today. Great to have you with us. I really look forward to seeing you all again in six months' time and updating on the progress we have made in the first half of FY 2026. Thank you all. Have a good day.