Public sector contractor Made Tech raises £85.4m on AIM admission

Public sector digital, data and technology service provider Made Tech Group announced the admission of its shares to trading on AIM on Thursday, raising £85.4m through its placing.

The AIM-traded firm said it provides services that enable central government, healthcare, and local government organisations to “digitally transform”.

Its primary clients included the departments, agencies and arm's length bodies of UK government, including the Home Office, DVLA, HMRC, the Department for Education, the Department for International Trade and the Ministry of Justice.

Made Tech said its current projects included delivering and operating the ‘Multichannel Digital Tax Platform’ (MDTP), which runs HMRC's ‘Making Tax Digital’ services, as well as supporting the Ministry of Justice to modernise the technology within the prison estate, and working with DVLA to “digitally transform” key services such as the UK provisional driving licence system.

It has a team of about 240 staff in the UK, with offices in London, Manchester, Bristol and Swansea.

The company said it raised gross proceeds of £85.4m at a placing price of 122p per share, with the oversubscribed fundraising bringing in £15m for the group, and £70.4m for certain selling shareholders.

On admission, Made Tech had a market capitalisation of around £180.7m at the placing price.

The board said the placing and admission would enable the group to execute its growth plans, further enhance its profile with existing and potential customers, and assist with the recruitment, retention and incentivisation of existing and future employees.

In particular, it said it would help with the opening of new offices in Scotland, the Midlands and the North of England, as well as the introduction of new service lines, including managed services and cybersecurity, and the group’s expansion, including hiring senior business leaders within the health, defence, and local government markets.

“Our mission is focused on improving public sector technology,” said chief executive officer Rory MacDonald.

“Becoming a publicly listed company will raise the profile of Made Tech, and enhance our ability to serve our existing clients across UK government.

“In addition, it will support the next stage of our development as we seek to diversify our offer to customers, open new offices across the UK and hire senior business leaders to drive our expansion.”

MacDonald said he was “delighted” that Made Tech received such interest from investors.

“This represents a real endorsement of our strategy and growth trajectory.”