Wrap Text
Results for the six months ended 31 August 2026 and declaration of cash dividend
Bytes Technology Group plc
(Incorporated in England and Wales)
(Registered number: 12935776)
LEI: 213800LA4DZLFBAC9O33
Share code: BYI
ISIN: GB00BMH18Q19
("BTG”, or “the Group”)
13 October 2026
Results for the six months ended 31 August 2026 and declaration of cash dividend
Bytes Technology Group plc (LSE: BYIT, JSE: BYI), one of the UK and Ireland’s leading software, security, AI
and cloud solutions specialists, today announces its financial results for the six months ended 31 August 2026
(HY27).
Financial performance
HY FY27 (six HY FY26 (six % change
months ended 31 months ended 31 year on year
August 2026) August 2025)
Gross invoiced income (GII) [1] £1,605.2m £1,342.0m 19.6
Revenue [2] £128.3m £108.1m 18.7
Gross profit (GP) £97.1m £82.4m 17.8
Operating profit £35.3m £33.1m 6.6
Operating profit/GP% 36.4% 40.2%
Cash £68.4m £82.3m (16.8)
Cash conversion [3] 45.7% 34.4%
Cash conversion (rolling 12 months)3 108.8% 104.7%
Earnings per share (pence) 12.76 12.03 6.1
Headline earnings per share (pence) 12.76 12.03 6.1
Interim dividend per share (pence) 3.3 3.2 3.1
Financial highlights
- GII increased 19.6%, with 18.8% growth in software, services up 41.0%, and hardware up 39.7%.
- Revenue increased correspondingly by 18.7% with similar double-digit growth across all income streams.
- GP increased 17.8%, as positive impact from changes made to our sales structure took effect.
- Public sector GP up 23.1%, with GP/GII margin held at 3.5%.
- Private sector GP up 14.6%, following the refinement of the sales structure to increase customer centricity,
which launched at the start of FY26, with GP/GII margin of 12.2%.
- Operating profit was 6.6% higher, after absorbing around half of the c.£4.5m of cost normalisation set out at
our FY26 results, which reflects previously flagged costs, including bonuses and share-based payments,
returning to more normalised levels.
- Strong balance sheet with closing cash of £68m and cash conversion of 45.7%, reflecting the normal weighting
of our cash generation to H2, with £41m returned to shareholders in the half year including completion of the
£25m share buyback.
- Interim ordinary dividend of 3.3p, 3.1% higher than HY26.
[1] GII is a non-International Financial Reporting Standards (IFRS) alternative performance measure that reflects gross income
billed to customers adjusted for deferred and accrued revenue items. GII has a direct influence on our movements in working
capital.
[2] Revenue is reported in accordance with IFRS 15 Revenue from Contracts with Customers. Under this standard, the Group
is required to exercise judgement to determine whether the Group is acting as principal or agent in performing its contractual
obligations. Revenue in respect of contracts for which the Group is determined to be acting as an agent is recognised on a
‘net’ basis (the GP achieved on the contract and not the gross income billed to the customer). Our key financial metrics of GII,
GP, adjusted operating profit and cash conversion are unaffected by this judgement.
[3] Cash conversion is a non-IFRS alternative performance measure that divides cash generated from operations less capital
expenditure (together, free cash flow) by operating profit.
Operational highlights
- Private sector sales structure now embedded across our corporate, mid-market and channel segments,
supporting 14.6% growth in private sector GP.
- Sector alignment completed in July 2026, with Bytes now focused on the private sector and Phoenix on the
public sector, and no customer accounts changing hands as account managers moved with their customers.
- Existing customers contributed 98.2% of our GP in the period (HY26: 98.0%), at a renewal rate of 115.7%
(HY26: 98%), with £1.8m of gross profit contributed by new customer wins.
- Services GII up 41.0%, with growing demand for managed services and security, supported by a 17.4%
increase in our technical delivery teams headcount since this time last year.
- Average GP per employee for the half year increased by 13%, as we focused on utilising sales and technical
capacity added over previous years.
- Expanding use of AI within our own business. In-house agents now supporting our consultants in scoping
customer work through the launch of Seller Insights, which brings Microsoft funding and customer usage data
together for every account manager, with many more agentic initiatives across the business.
- Phoenix ranked 51st in the Best Small to Medium Workplaces in Europe list, with both operations confirmed in
the ‘Great Place to Work – Best Workplace for Tech UK 2026’ list.
- Received multiple vendor and industry awards over last 6 months across both operations, including from
Broadcom, Checkpoint, Microsoft, Mimecast, Palo Alto, Rubrik, Service Now.
Post period-end
After the period end, the Group acquired CyberOne on 9 October 2026, with completion subject to clearance
under the UK's National Security and Investment Act 2021 which is expected to be received by the end of October.
CyberOne is an award winning managed cyber security services provider built on Microsoft technology, adding
an accredited 24x7 security operations capability to the Group.
Interim dividend
The Group’s dividend policy is to distribute 40-50% of full year post-tax pre-exceptional earnings to shareholders.
Accordingly, the Board is pleased to declare a gross interim dividend of 3.3 pence per share. The aggregate
amount of the interim dividend expected to be paid out of retained earnings at 31 August 2026, but not recognised
as a liability at the end of the half year, is £7.6m.
The salient dates applicable to the dividend are as follows:
Dividend announcement date Tuesday, 13 October 2026
Currency conversion determined and announced together with the Friday, 30 October 2026
South African (SA) tax treatment on SENS by 11:00
Last day to trade cum dividend (SA register) Monday, 2 November 2026
Commence trading ex-dividend (SA register) Tuesday, 3 November 2026
Last day to trade cum dividend (UK register) Wednesday, 4 November 2026
Commence trading ex-dividend (UK register) Thursday, 5 November 2026
Record date Friday, 6 November 2026
Payment date Friday, 20 November 2026
Additional information required by the Johannesburg Stock Exchange:
1. The GBP:ZAR currency conversion will be determined and published on SENS on Friday, 30 October 2026.
2. A dividend withholding tax of 20% will be applicable to all shareholders on the South African register unless
a shareholder qualifies for exemption not to pay such dividend withholding tax.
3. The dividend payment will be made from a foreign source (UK).
4. At Tuesday, 13 October 2026, being the declaration announcement date of the dividend, the company had
a total of 230,112,513 shares in issue (with no treasury shares).
5. No transfers of shareholdings to and from South Africa will be permitted between Monday, 2 November 2026
and Friday, 6 November 2026 (both dates inclusive). No dematerialisation or rematerialisation orders will be
permitted between Tuesday, 3 November 2026 and Friday, 6 November 2026 (both dates inclusive).
Outlook
The demand drivers in our markets are strengthening, with software spend forecast to grow ahead of IT budgets
as a whole and AI, cyber security and infrastructure the areas attracting most incremental investment. We are
continuing to invest in our services capability to take a larger share of that spend.
We upgraded our full year guidance on 17 September 2026, following a first half that was ahead of our
expectations. The Board continues to expect GP growth for the full year in the low to mid-teens in percentage
terms, with low to mid single-digit percentage growth in operating profit. This excludes any contribution from
CyberOne, with the acquisition expected to complete by the end of October 2026, as we expect its post-acquisition
operating profit in FY27 to be offset by amortisation costs of the intangible assets acquired, but with a positive
contribution to earnings per share forecast for FY28.
Our second half will be measured against a stronger comparative, and our costs are slightly weighted towards the
second half, when commission accelerators apply and the sales intakes joining in November begin to build
capacity for FY28. Microsoft’s next set of partner incentive changes takes effect in October. These are separate
from the changes made in January 2025, which have now annualised. The revised incentives increase the rewards
on growth products and enhance the incentives available on CSP, while reducing the rebates on certain legacy
products, and are expected to be positive for the Group. They have been appropriately planned for and are
included in our upgraded guidance.
The c.£4.5m of cost normalisation we set out at our FY26 results falls across the full year. It reflects previously
flagged costs returning to normal levels, including bonuses and share-based payments, and the sales and
technical capacity added against clear customer demand. Following normalisation, and as that capacity becomes
fully productive, the Board expects operating profit to grow more broadly in line with GP from FY28, with operating
leverage building thereafter.
Analyst and investor presentation
A presentation for sell-side analysts and investors will be held today at 09:00 (BST) via a video webcast that can
be accessed at:
https://www.investormeetcompany.com/bytes-technology-group-plc-analyst-meeting/register-investor
A recording of the webcast will be available after the event at bytesplc.com. The announcement and presentation
will be available at bytesplc.com from 07:00 and 09:00 (BST), respectively.
Enquiries:
Bytes Technology Group plc Tel: +44 (0)1372 418500
Sam Mudd, Chief Executive Officer Email: IR@bytesplc.com
Andrew Holden, Chief Financial Officer
Jack Bradshaw, Investor Relations
Sodali & Co Tel: +44 (0)2072 501446
Elly Williamson Email: btg@info.sodali.com
Tilly Abraham
Samuel Hillary
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Forward-looking statements
This announcement includes statements that are, or may be deemed to be, ‘forward-looking statements’. By their
nature, forward-looking statements involve risk and uncertainty because they relate to future events and
circumstances. Actual results may, and often do, differ materially from forward-looking statements.
Any forward-looking statements in this announcement reflect the Group’s view with respect to future events as at
the date of this announcement. Except as required by law or by the UK Listing Rules of the Financial Conduct
Authority, the Group undertakes no obligation to publicly revise any forward-looking statements in this
announcement following any change in its expectations or to reflect events or circumstances after the date of this
announcement.
Short-form announcement
This short-form announcement has been prepared in accordance with the JSE Limited Listings Requirements
and is the responsibility of the directors. It is only a summary of the information in the full announcement and
does not contain full or complete details. Any investment decision should be based on the full announcement
that has been published on SENS https://senspdf.jse.co.za/documents/2026/jse/isse/BYIE/H1FY27.pdf and is
also available on our website https://www.bytesplc.com/.
About Bytes Technology Group plc
BTG is one of the UK's leading providers of IT software offerings and solutions, with a focus on cloud, security,
and AI products. The Group enables effective and cost-efficient technology sourcing, adoption and management
across software services, including in the areas of security and the cloud. It aims to deliver the latest technology
to a diverse range of customers across corporate and public sectors and has a long track record of delivering
strong financial performance.
The Group has a primary listing on the Main Market of the London Stock Exchange and a secondary listing on the
Johannesburg Stock Exchange.
Sponsor
Investec Bank Limited
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Date: 13/10/2026 08:01:00
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