British Investors Show Strong Interest in Lloyds Shares, but Small UK Tech Firm Made Tech Poised for Bigger Gains
British investors are currently rallying around shares of Lloyds Banking Group, buoyed by a supportive banking sector and positive share price momentum. However, when analysts take a medium-term view, they see even more upside potential in select UK stocks, particularly in the tech sector.
One such standout is Made Tech, a penny stock trading on the UK’s Alternative Investment Market at 34.5p per share with a market capitalization just above £50 million. This British technology company specialises in helping government organisations and regulated industries execute their digital transformation strategies. Given the UK government’s urgent push to upgrade legacy systems and adopt AI-driven solutions, demand for Made Tech’s offerings is expected to remain strong.
City analysts tracking Made Tech are optimistic, with an average price target of 46.5p, implying potential gains of around 35% over the next year. This compares favourably with Lloyds shares, which analysts forecast to rise only about 13% from current levels.
Made Tech’s robust growth underpins this bullish outlook. The company has demonstrated remarkable expansion, growing its revenue from £5.5 million five years ago to £46 million most recently. It projects a further 20% revenue rise for the financial year ending May 2025, with current trading ahead of expectations. Financially sound, Made Tech boasts profitability, a strong balance sheet with approximately £10 million cash and no debt, and a healthy contracted backlog that supports continued organic growth.
In terms of valuation, Made Tech’s price-to-earnings ratio stands at about 24, which is reasonable relative to its solid growth trajectory.
While the positive forecasts are encouraging, potential investors should consider risks, notably the possibility of reduced IT expenditure by the UK government, which could impact Made Tech’s revenue growth and valuation.
In summary, while Lloyds remains a popular and solid choice among British investors, Made Tech’s impressive financial performance, growth prospects, and strategic position in government digital transformation make it a compelling stock to watch for medium-term investment gains.
