Made Tech Group (AIM:MTEC) has acquired Target Applications Limited, trading as CX Feedback, a Glasgow-based housing technology provider which serves more than 100 customers across social housing and local government. Made Tech said that the deal brings further scale and customer reach to its existing solutions and gives the company its first office in Scotland, providing a local base from which to pursue opportunities across the Scottish public sector.
About Made Tech
Founded in 2008 by CEO Rory MacDonald, Made Tech provides digital, data, AI and technology services to the UK public sector and other regulated industries. The company helps clients modernise legacy technology, accelerate digital delivery, strengthen cyber resilience and harness data and AI. Its work enables organisations to operate more efficiently, reduce costs and deliver services that are more accessible, reliable and effective for users.
The company listed on AIM in September 2021, raising £85.4 million at a placing price of 122p per share. Made Tech’s most recent results, for the full year to 31st May 2026, reported revenues up by 26.8% to £58.9 million and pre-tax profits up by 141% to £4.74 million.
Get our research notes free, the day they're published
In-depth coverage of UK small caps and junior miners. Email only, unsubscribe any time.
Target Applications deal highlights
Established in 2010, Target Applications operates the CX Feedback business, whose technology solutions help social housing providers in Scotland, England and Wales collect and act on tenant feedback, manage complaints and cases, and automate associated workflows and reporting.
Target Applications is said to have more than 100 customer relationships across social housing and local government. It operates a recurring revenue model, with contracts typically renewed annually and many long-standing customer relationships, together with low customer churn. These factors helped the firm’s Annual Recurring Revenue (ARR) to reach £1.05 million as at 27th October 2026. Revenue increased by 24% to £1.45 million in 2025 and profit before tax rose by 36% to £0.49 million, based on unaudited management accounts.
Made Tech is acquiring Target Applications from its founder and sole shareholder, Johnathan Briggs, who will remain with the business to drive its continued growth. The initial cash consideration of £3 million, subject to working capital adjustments, was paid on completion. Additional consideration of up to £3 million is payable in cash two years after completion, based on the achievement of ARR growth of up to 150% over the two years following completion. Target Applications is expected to be earnings-enhancing on an adjusted basis in the financial year ending 31st May 2027.
Strategic Rationale
Made Tech highlighted that Target Applications brings with it an established Glasgow team and office, strengthening the group’s ability to develop customer relationships and pursue public sector contracts in Scotland. CX Feedback brings an established housing solution, long-standing customer relationships and an experienced team led by founder Johnathan Briggs. The CX Feedback solution broadens Made Tech’s existing housing solutions and increases its recurring revenue.
Made Tech share price chart since IPO
Comment
This is the first acquisition that Made Tech has made since listing on AIM. The group alluded to deal making back in its FY2026 results, saying: “We are interested in businesses that deepen our public-sector presence, add relevant capabilities or increase recurring and defensible revenue.” With cash of £14.47 million as at 31st May 2026, the deal is easily covered by existing financial resources, with plenty of cash left to make other deals.
In the context of last year’s near £60 million revenue total, Target Applications brings only a small amount of additional revenues, but, with higher margins than Made Tech, it brings a more significant profit contribution. Initial consideration is just over 2 times Target Applications’ historic revenues and 6 times pre-tax profits, with the profit multiple notably being lower than Made Tech’s historic pre-tax profit multiple of 16.4 times. On the maximum possible consideration of £6 million, the deal has been done at 4.1 times revenues and 12.2 times pre-tax profits, which looks fair to us if the 150%, two-year ARR growth target is achieved.
Sign up to receive our full investment research notes on small cap growth companies, as soon as they are published.
Disclosures
Made Tech is not a corporate client of Optimo Research Ltd.
Disclaimers
This article, and all articles on the Optimo Research blog, are for information purposes only. Our blog articles do not constitute an investment recommendation or personal advice. Nothing in our blog articles should be construed as an offer or the solicitation of an offer to buy or sell securities by us and, as we have no knowledge of your individual situation and circumstances, you should not make any investment decision without consulting a fully qualified financial adviser. Your capital is at risk by investing in the financial instruments issued by the companies discussed. For full disclosures, disclaimers and risk warnings click here.