REG - Bytes Technology Grp - Full Year Trading Update

Bytes TechnologyAnnouncement

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RNS Number : 7798X  Bytes Technology Group PLC  24 March 2026

24 March 2026

 

Bytes Technology Group plc

Full Year Trading Update

 

Bytes Technology Group plc ("BTG" or "the Group"), one of the UK and Ireland's
leading software, security, AI and cloud services specialists, today publishes
a trading update for the financial year ended 28 February 2026 ("FY26").

 

For FY26, BTG delivered results in line with the outlook provided in October
2025 with double-digit gross invoiced income growth, gross profit of c.£167m
and operating profit of c.£62m. Cash conversion exceeded 100%, with a
year-end cash balance of over £98m. During the year, the Group returned £74m
to shareholders, reflecting the Board's continued confidence in the business.

 

As previously reported, FY26 was impacted by changes to Microsoft enterprise
incentives and the phasing effects of the private sector sales realignment.
Encouragingly, performance strengthened in the second half, with gross profit
growing c.6.% year-on-year in January and February 2026 against a strong
comparator.

 

For FY27, we expect high single-digit to low double-digit percentage growth in
gross profit, with operating profit broadly flat as the Group absorbs c.£4.5m
of cost normalisation, reflecting higher technology costs following the
completion of strategic projects and a return to normal bonus levels, on top
of continued headcount investment for growth.1 (#_ftn1)

 

From July 2026, the Group will further align its go-to-market approach, with
Bytes Software Services focused on the private sector, and Phoenix Software on
the public sector. This is an important step in our evolution towards a
simpler, more scalable organisation, deepening sector expertise and enabling
our teams to deliver increasingly specialised support to customers. The
transition will be carefully sequenced and managed, with a small number of
colleagues moving within the Group and customers continuing to be supported
throughout.

 

We look forward to sharing more detail in our full year results on 12 May
2026.

 

Sam Mudd, Chief Executive Officer, commented: "I am pleased to report FY26
results in line with expectations, with performance strengthening in the
second half. We expect growth to further strengthen in FY27, while also
continuing to invest in our capability and alignment to support increasingly
distinct needs across our customer base. While I remain mindful of the ongoing
macro uncertainty, we see customers continuing to adopt AI and invest in their
cloud infrastructure, cyber security and digital workspaces to drive
efficiency and competitiveness. BTG is well-positioned to support customers as
AI moves from experimentation to deployment at scale. With our deep vendor
partnerships, strong customer relationships, and ongoing investment in our
employees, I am confident in the Group's ability to deliver sustainable
growth."

 

Conference call today

A conference call for analysts and investors will be held today, Tuesday, 24
March 2026, at 08:15 (UK time).

 

Dial-in details: UK Toll Free: 0800 279 9489; UK Local Toll: 0207 544 1375.

 

Password (if prompted): Quote 'Bytes Technology Group' when prompted by the
operator.

 

A replay of the call will be available via the Company's website,
www.bytesplc.com/ (http://www.bytesplc.com/) in due course.

 

1 (#_ftnref1) The increased technology cost is comprised of the amortisation
of those assets in line with our accounting policies and the reallocation of
associated resource which was previously capitalised.

-Ends-

Enquiries:

 

Bytes Technology Group plc

Sam Mudd, Chief Executive Officer

Andrew Holden, Chief Financial Officer

James Zaremba, Investor Relations

Tel: +44 (0)1372 418 500

Email: IR@bytesplc.com (mailto:IR@bytesplc.com)

 

Sodali & Co
Elly Williamson
Tilly Abraham

Samuel Hillary

Tel: +44 (0)2072 501446

Email: btg@info.sodali.com (mailto:btg@info.sodali.com)

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 of 16 April 2014 (MAR) as it forms
part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

 

About Bytes Technology Group plc:

BTG is one of the UK and Ireland's leading providers of IT software offerings
and solutions, with a focus on AI, cloud and security products. The Company
enables effective and cost-efficient technology sourcing, adoption and
management across software services, including in the areas of security, cloud
and AI solutions. It aims to deliver the latest technology to a diverse and
embedded non-consumer customer base and has a long track record of delivering
strong financial performance.

 

The Company has a primary listing on the Main Market of the London Stock
Exchange and a secondary listing on the Johannesburg Stock Exchange.

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