Shares in Bytes Technology Group shot up the most in 21 months on Tuesday.
The UK-based company reported it had achieved a milestone in the year to end-February, with gross invoiced income “comfortably exceeding” £2-billion for the first time as it enjoys continued demand for its services.
The group, one of the UK’s leading software, security, cloud and AI services specialists, said in a trading update that it delivered double-digit growth in its key financial metrics, gross invoiced income, gross profit and operating profit.
Operating profit grew in the mid-to-high teens, underscoring the technology company’s sustained momentum.
“We are particularly pleased with the acceleration in gross profit growth in the second half, which was balanced across both corporate and public sector clients, to deliver full-year growth of around 12%,” said CEO Sam Mudd.
Cash conversion remained strong, surpassing the group’s target of 100%, with a cash balance of more than £110m at year-end.
The group distinguishes between revenue and gross invoiced income based on gross income billed to customers versus revenue, which is recognised on a net basis depending on whether the company acted as an agent or principal in delivering work for a customer.
The results include two full months of trading under the recently updated Microsoft incentive plan, which has been embedded into Byte’s strategic growth plans.
Bytes is the biggest reseller of tech giant Microsoft’s products in the UK and is chasing a market of 42,000 private sector companies, which collectively spent about £105bn on IT in 2019.
The group, valued at about R28.17bn on the JSE, has reported strong demand for software, AI and IT services from both corporate and public sector clients at the start of the 2025 financial year.
Market players cheered the trading update with shares gaining the most since June 2023, up almost 17% to R117.23 at 3.50pm on Tuesday. Bytes is listed on the JSE and in London.
“Given our deep partnerships with established vendors, exciting opportunities with new providers across technology areas, long-standing customer relationships, and ongoing investment in our employees, we believe BTG is well-positioned to continue its strong growth,” it said.
“BTG remains at the forefront of IT delivery, and we are highly engaged in areas such as AI adoption, cloud services and cybersecurity, which continue to be strong industry drivers.
“Our strategy is underpinned by our strong vendor relationships and the commercial acumen and dedication of our people, which means we are primed to capture the significant growth opportunities ahead and drive continued success,” said Mudd.
Mudd took over as CEO of Bytes in early May last year after the ousting of long-time boss Neil Murphy earlier in 2024 due to a share trading scandal.
In February the firm, spun out of Altron in 2020, said Murphy had notified the board that he had made a number of trades in the company’s shares that had not been disclosed to it or the market, as required by listing rules.
The group will release its annual results in May.
*Update, 18 March 2025: This story was updated with new information.
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.