Bytes Technology Group PLC

Latest Results (06.03.2026):

Bytes Technology Group PLC — reporting its full-year results for the year ended 28 February 2025 (FY 2024/25; final quarter ended Feb 2025). The Group delivered broad-based growth: gross invoiced income exceeded £2.0bn (+15.2%), revenue was £217.1m (+4.9%), gross profit £163.3m (+12.0%), operating profit £66.4m (+17.1%), basic EPS 22.78p (+16.5%), and closing cash of £113.1m with cash conversion of 113.8%. Management proposes a final dividend of 6.9p and a special dividend of 10.0p; guidance for 2025/26 is double-digit gross profit growth and high single‑digit operating profit growth.

Key headline numbers

FY 2024/25 (year ended 28 Feb 2025): GII £2,099.8m (+15.2%); revenue £217.1m (+4.9%); gross profit £163.3m (+12.0%); operating profit £66.4m (+17.1%); basic EPS 22.78p (+16.5%).

GII and revenue mix

Gross invoiced income topped £2.0bn for the first time, driven predominantly by software (software GII £2,005.3m). Revenue growth is muted vs GII because IFRS 15 means software and some services are reported on a net basis; management focuses on gross profit as the consistent performance metric.

Profitability and margins

Gross profit rose 12.0% to £163.3m and operating profit increased 17.1% to £66.4m. Operating profit as a share of GP improved to 40.7% (from 38.9%), reflecting scale and cost control despite investment in staff and systems.

Cash generation and balance sheet

Closing cash was £113.1m (up from £88.8m) after dividends and property purchases; free cash flow was £75.5m. Net assets rose to £98.0m. Cash conversion (free cash flow / operating profit) was strong at 113.8%.

Dividends and capital return

The Board proposes a final ordinary dividend of 6.9p and a special dividend of 10.0p (total special = 10.0p), in line with a policy to return excess cash (40–50% of post-tax pre-exceptional earnings). Payment is subject to shareholder approval (record date 11 July 2025).

Operational progress

Headcount rose 17.8% to 1,245, reflecting hires in sales and service delivery. The Group expanded its estate (new offices in Sunderland and Portsmouth; property purchase in Leatherhead) and renewed/acquired vendor specialisms and awards (Microsoft Azure Expert status and vendor recognition from Palo Alto, Adobe, Sophos, etc.).

Outlook

Management expects to deliver another year of double-digit gross profit growth and high single‑digit operating profit growth in FY 2025/26, citing continued demand in cloud, security and AI and further investment in people and vendor specialisms.

Risks and tax

Key risks highlighted include vendor commercial changes (Microsoft incentive changes were managed in-year), working-capital sensitivity, cyberthreats, and talent retention. The effective tax rate rose to 26.5% (from 23.9%) reflecting the full-year UK rate and timing differences, which raised the tax charge and affected profit after tax.