UK's Bytes Technology H1 revenue rises 19%, beats estimates
UK's Bytes Technology H1 revenue rises 19%, beats estimates
Overview
UK software and cloud solutions provider's H1 revenue grew 19% yr/yr, beating analyst expectations
Gross profit for H1 rose 18% yr/yr, driven by changes to sales structure
Company completed £25 mln share buyback and acquired CyberOne after period end
Outlook
Bytes Technology expects FY27 GP growth in the low to mid-teens percent
Company sees FY27 operating profit growth in the low to mid single-digit percent
Company says demand drivers in software, AI, cyber security and infrastructure are strengthening
Result Drivers
SALES STRUCTURE CHANGES - Co said changes to sales structure contributed to 17.8% gross profit growth in both public and private sector businesses
SECTOR ALIGNMENT - Co completed sector alignment in July, focusing Bytes on private sector and Phoenix on public sector, supporting growth and clearer customer engagement
STRONG DEMAND FOR SERVICES - Co said services gross invoiced income grew 41%, driven by higher demand for managed services and security, with technical delivery headcount up 17.4%
Company press release: ID:nRSM6409Ya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Beat | GBP 128.3 mln | GBP 126.91 mln (3 Analysts) |
H1 Net Income |
| GBP 29.9 mln |
|
H1 Gross Profit |
| GBP 97.1 mln |
|
H1 Operating Profit |
| GBP 35.3 mln |
|
H1 Pretax Profit |
| GBP 40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and 3 "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 GBp450.00, about 2.6% below its October 12 closing price of GBp462.20
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago
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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.)