Bytes Technology posts 25% rise in interim profit on software demand

Tue, 15th Oct 2024 08:01

(Alliance News) - Bytes Technology Group PLC on Tuesday reported "another set of positive" results for the first half of its financial year due in part to strong demand for its software offering.

The Surrey, England-based computer software company said its pretax profit rose by a quarter to GBP41.5 million for the first six months that ended August 31 from GBP33.3 million a year before.

Despite intense competition, gross margin improved to 78% from 69%.

But revenue fell 2.9% to GBP105.5 million from GBP108.7 million, mainly as a result of a 48% decrease in hardware gross invoiced income to GBP12.5 million from GBP24.1 million.

Gross invoiced income for the group was up 14% to GBP1.23 billion from GBP1.08 billion, primarily driven by software. Software gross invoiced income was 16% higher at GBP1.19 billion from GBP1.03 billion.

Bytes said there continued to be a strong contribution from the public sector and the large prior year contract wins from the National Health Service and HM Revenue & Customs had seen further growth.

Netting adjustment cost was GBP1.12 billion, up 15% from GBP972.9 million.

Bytes declared an interim dividend of 3.1 pence, 15% higher than 2.7p a year before.

Earnings per share and headline EPS grew by 20% to 12.67p, compared to 10.60p.

Chief Executive Officer Sam Mudd described its first half as "another set of positive" results.

The group said it traded strongly in the first half of 2025 financial year, while operating in highly competitive markets and despite challenging macroeconomic conditions.

Looking ahead, Bytes said its focus remains on executing its growth strategy by nurturing customer relationships, extending its strong vendor partnerships, and leveraging the technical and commercial skills of its teams.

It also said it is well positioned to benefit from the structural demand drivers it sees in its markets including cloud computing, cyber security and AI for the remainder of the 2025 financial year.

By Artwell Dlamini, Alliance News reporter

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