Bytes Tech hikes payout as profit surges on software demand

(Alliance News) - Bytes Technology Group PLC on Tuesday said annual profit surged on the back of strong software demand and margin expansion, and it rewarded shareholders with higher dividend payouts.

The Surrey, England-based computer software company said pretax profit rose 21% to GBP74.6 million in the financial year ended February 28, from GBP61.6 million the year before.

Operating profit increased 17% to GBP66.4 million, while revenue climbed 4.9% to GBP217.1 million from GBP207.0 million. Diluted earnings per share increased 16% to 21.95 pence from 18.85p.

Bytes declared a final dividend of 6.9 pence per share, up 15% from 6.0p a year earlier. It also declared a special dividend of 10.0p, up from 8.7p the year before. This brings the total dividend for the year to 20.0p, compared with 14.7p a year prior.

Gross invoiced income surpassed GBP2.10 billion for the first time, up 15%, driven primarily by software sales. Gross profit rose 12% to GBP163.3 million, with double-digit growth across both public and corporate sectors.

Chief Executive Officer Sam Mudd said the company was well-positioned to capitalise on growing demand in areas such as cloud computing, cybersecurity and AI.

"Despite a challenging macroeconomic environment, we have not only deepened our relationships with existing clients-securing a greater share of their IT spend-but also successfully expanded our footprint across both public and corporate sectors," CEO Mudd said.

Bytes forecast another year of double-digit gross profit growth and high single-digit operating profit growth in financial 2026.

Cash at year-end rose to GBP113.1 million from GBP88.8 million.

Bytes Technology shares were down 4.4% at 527.00 pence in London on Tuesday morning.

Their shares were 5.3% lower at ZAR127.75 each in Johannesburg.

By Eva Castanedo, Alliance News reporter

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