UK's Bytes Technology forecasts flat profit as costs rise; shares drop

Computacenter

24/03/2026 09:35

March 24 (Reuters) - IT firm Bytes Technology BYIT.L warned on Tuesday that its annual profit would be broadly flat in fiscal 2027 due to higher technology costs, sending shares down 12%.

Here are some details:

CEO Sam Mudd said: "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".

Higher technology costs is due to the completion of strategic projects and a return to normal bonus levels, along with of continued headcount investment for growth, it said.

Analysts at brokerage firm Jefferies said investing is the right thing to do, though it is hard for Bytes to compete for air time versus current strong momentum at its rivals, like Computacenter Plc CCC.L and Softcat Plc SCTS.L.

For fiscal 2027, the company expects high single-digit to low double-digit percentage growth in gross profit.

Bytes Technology expects FY26 results in line with its expectations, with performance strengthening in the second half.

 (Reporting by Roshni Srivastava in Bengaluru; Editing by Nivedita Bhattacharjee)

 ((roshni.srivastava@thomsonreuters.com))