Bytes Technology Group, the UK firm spun out of Altron in 2020, has moved to simplify its dividend policy, but will still pay out £4.8m (R100m) to shareholders for its half-year to end-August, citing strong appetite from customers for services such as digital security and solutions for remote working.
Bytes, a software, security and cloud services specialist, listed on the London Stock Exchange in December, with a secondary inward listing on the JSE, after a demerger that created R13bn in value for Altron shareholders.
Altron had argued that the true value of the UK business was not fully reflected in its share price. Since listing, shares of Bytes have risen almost 44%, valuing it at R23.5bn on the JSE.
Bytes said on Thursday group revenue rose 13.7% to £251.4m, with profit after tax rising 15.8% to £18.3m, with the group saying investments by clients were increasingly taking the form of annualised contracts, which gave the group confidence in its growth prospects.
Bytes declared a 2p per share dividend, a £4.8m payment, which is based on 40% of post-tax pre-exceptional earnings, or profits excluding the effects of unusual events.
The group’s previous policy was to pay out in a range of 40%-50%, but it said on Thursday it has opted to simplify its policy, as this would provide greater clarity on its capital allocation moving forwards.
“After a successful first-half with a continuation of double-digit growth, the business carries strong momentum going into the second half of the year, where we have already got off to a good start,” Bytes said.
With Mudiwa Gavaza
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.