Having upgraded back in November, we have another opportunity today, following a strong H1, during which sales grew +14% y/y to £21.8m and EBITDA is up +29% to £1.8m. Exceptionally strong sales execution was key to this, as per +233% bookings growth to £42.0m, following several ‘seven figure’ deals. And we think MTEC can maintain this rich vein of form in view of its well-developed pipeline and how Government initiatives should continue to benefit. As such while we have upgraded forecasts today, believe the company could do better still if current momentum continues. We also take this opportunity increase our target price to 38p ~1.1x EV/FY26 Sales or 10x (unmodelled) FY27 EBITDA the latter reflects our preliminary assumption that EBITDA margins are progressing towards 10%.
