UK's Bytes Technology FY revenue slightly misses estimates

Bytes Technology

12/05/2026 07:16

Overview

UK software and cloud solutions firm's FY26 revenue grew 1.6%, slightly missing analyst expectations

Gross profit rose 2.5% while operating profit fell 5.6% amid higher staff investment

Company announced £25 mln share buyback and raised final dividend

Outlook

Company expects FY27 GP growth in high single-digit to low double-digit percentage range

Operating profit for FY27 expected to be broadly flat as c.£4.5m of cost normalisation absorbed

Company says strong early FY27 momentum reinforces confidence in outlook

Result Drivers

MICROSOFT INCENTIVE CHANGES - Co said changes to Microsoft partner incentives temporarily reduced software gross profit, particularly in H1, with improvement in H2 as the impact lessened

PRIVATE SECTOR SALES REALIGNMENT - Co said realignment of private sector sales structure led to an adjustment period and marginal decline in private sector gross profit, with momentum improving in H2

SERVICES GROWTH - Co said services gross profit grew sharply, supported by increased vendor funding and focus on managed services

Company press release: ID:nRSL8758Da

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Miss*
GBP 220.50 mln
GBP 221.44 mln (10 Analysts)
FY Net Income
GBP 51.30 mln
FY Gross Profit
GBP 167.30 mln
FY Operating Profit
GBP 62.70 mln
FY Pretax Profit
GBP 69.80 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Bytes Technology Group PLC is GBp390.00, about 22.6% above its May 11 closing price of GBp318.00

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)