Bytes Technology Group PLC

Latest Results (20.01.2026):

Bytes Technology Group PLC — results for the year ended 28 February 2025 (FY 2024/25; fourth quarter ended 28 February 2025). The Group reported strong full‑year performance with gross invoiced income (GII) topping £2.1bn (+15.2%), revenue of £217.1m (+4.9%), gross profit of £163.3m (+12.0%), operating profit of £66.4m (+17.1%) and basic EPS of 22.78p (+16.5%). Closing cash was £113.1m and cash conversion remained above 100%. The board has proposed a final dividend of 6.9p and a special dividend of 10.0p, payable 25 July 2025.

Key financials

GII £2,099.8m (+15.2%); Revenue £217.1m (+4.9%); Gross profit £163.3m (+12.0%); Operating profit £66.4m (+17.1%); Operating profit / GP 40.7% (2023/24: 38.9%); EPS 22.78p (+16.5%).

Dividends & capital return

Final ordinary dividend 6.9p per share and a proposed special dividend 10.0p per share (total special = £24.1m). Final & special payable 25 July 2025 to shareholders on the register 11 July 2025. Board policy targets 40–50% post‑tax pre‑exceptional earnings distribution and prefers buybacks when shares are materially undervalued.

Cash, balance sheet and cash generation

Closing cash £113.1m (FY24: £88.8m); free cash flow £75.5m; cash conversion (free cash flow / operating profit) 113.8% (target ~100%). Net assets £98.0m. Undrawn committed RCF £30m. Capitalised software development £3.7m and property purchases (Leatherhead) added to PP&E.

Drivers of growth

Software was the primary driver (software GII +16.5%); public sector accounted for 65% of GII and delivered 18.2% GP growth, while corporate GP grew 8.9%. Software GP rose to ~£146.1m and internal services GP grew 27.9% as the Group expanded cloud, security and AI services.

Customers, operations & people

Existing customers contributed 97% of GP with a renewal rate of 109%. Customer count rose to 5,913 and average GP per customer increased to £27,600. Headcount increased 17.8% to 1,245 to support sales and delivery expansion; offices opened/expanded in Sunderland, Portsmouth, London and Leatherhead.

Costs, margins and tax

Administrative expenses £96.9m (+8.8%) with employee costs £78.1m (underlying increase ~13.7% excluding capitalisation and lower share‑based payments). Operating margin improved despite investment. Interest income rose to £8.5m; effective tax rate increased to 26.5% (FY24: 23.9%).

Outlook

Management expects another year of double‑digit gross profit growth and high single‑digit operating profit growth in FY2025/26, driven by demand in cloud, security and AI, continued vendor partnerships and ongoing investment in people, systems and possible targeted M&A.

Risks & notable items

Microsoft incentive changes were managed and had limited short‑term impact; principal risks highlighted include working capital, cyberthreats, talent retention and vendor commercial changes. Company notes elevated interest income from higher cash balances and continues to prioritise vendor certifications and service delivery specialisms.