AI assistant
Bytes Technology Group PLC — Earnings Release 2026
May 12, 2026
5048_rns_2026-05-12_ed34cd6b-ebb1-42c9-a289-211c6e3ebddf.pdf
Earnings Release
Open in viewerOpens in your device viewer
Bytes Technology Group plc
(Incorporated in England and Wales)
(Registered number: 12935776)
LEI: 213800LA4DZLFBAC9O33
Share code: BYI
ISIN: GB00BMH18Q19
("BTG", or "the Group" or "the company")
12 May 2026
Condensed annual results for the year ended 28 February 2026 and proposed 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 year ended 28 February 2026 (FY26).
Financial performance
| Year ended 28 February 2026 | Year ended 28 February 2025 | % change year on year | |
|---|---|---|---|
| Gross invoiced income (GII)^{1} | £2,341.0m | £2,099.8m | 11.5 |
| Revenue^{2} | £220.5m | £217.1m | 1.6 |
| Gross profit (GP) | £167.3m | £163.3m | 2.5 |
| Operating profit | £62.7m | £66.4m | (5.6) |
| Operating profit/GP% | 37.5% | 40.7% | |
| Cash | £98.6m | £113.1m | (12.8) |
| Cash conversion^{3} | 105.1% | 113.8% | |
| Earnings per share (pence) | 21.4 | 22.8 | (6.1) |
| Headline earnings per share (pence) | 21.4 | 22.8 | (6.1) |
| Final dividend per share (pence) | 7.0 | 6.9 | 1.4 |
Financial highlights
- GII increased 11.5%, with 11.4% growth in software and 24.6% in services.
- GP increased 2.5%, with H1 GP decline of 0.3% improving to 4.6% growth in H2 as the one-year adverse effect of the Microsoft incentive changes ended in January 2026, and the strategic refinement of the private sector sales structure to strengthen medium-term growth settled.
- Public sector GP up 7.4%, despite Microsoft partner incentive change impact.
- Private sector GP decreased marginally by 0.3% due to the refinement of sales structure to increase customer centricity (which launched at the start of the year), and some Microsoft incentives impact.
- Operating profit was 5.6% lower because of slower GP growth and investment in people to drive future growth.
- Strong balance sheet with closing cash of £99m and 105% cash conversion, with £74m returned to shareholders in FY26, including the £25m share buyback.
- Final ordinary dividend of 7.0p, resulting in a full-year dividend of 10.2p together with a new £25m share buyback.
^{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
- New private sector sales structure implemented to increase customer centricity and medium-term growth through closer alignment with customers' and vendors' needs, impacted H1 with momentum improving in H2.
- Existing customers contributing 97% of our GP in this year (FY25: 97%), at a renewal rate of 99% (FY25: 109%), with £5m of gross profit contributed by new customers.
- Year-end headcount growth of 6.9% to 1,331, with ongoing investment in sales and service delivery teams.
- Strong progress on increasing services gross profit through using vendor funding to support customers in discovery and implementation, as well as attaching more managed services to support customers through the whole technology lifecycle.
- Ranked 14th in the FT's UK's Best Employers list, the highest of any reseller.
- Received multiple vendor and industry awards, including from AWS, Axonius, Barracuda, Checkpoint, Commvault, Cyera, Exclusive Networks, Microsoft, Nutanix, ServiceNow, Sophos, Varonis, Veeam and VMWare, as well as a Royal Warrant.
- Moved into the first of the two buildings acquired in FY25, adjacent to our existing Leatherhead office, adding capacity to our existing modern and inviting workspaces.
- The currently combined roles of CFO and COO will be split in FY27 to support our next phase of growth. Current CFO Andrew Holden will transition into the role of COO, and will stand down as CFO once a suitable replacement has been appointed.
Sam Mudd, Chief Executive Officer, said:
"This has been a year of adaptation and evolution against a more challenging market backdrop. We focused on optimising our business for continued growth, segmenting our private sector sales team to better align with our customers and vendors, managing Microsoft's transition of incentives to consumption-based and service-led funding, and increasing our services portfolio and associated profits, in line with our strategy. We maintained our share of wallet with existing customers, as they invested in their IT requirements; continued to expand our client base in both the public and private sectors, with significant framework wins in defence, and private sector enterprise client wins in retail and the energy sector; while continuing to drive momentum through the year.
"As Agentic AI and associated technologies continue to be deployed, our customers need an integrated delivery model. This will almost always need a deep understanding of the domain the customer operates in, and the associated data and services, to help the customer adapt within the changing technological landscape. We are well positioned, as a Microsoft Frontier Partner, to be the partner for our customers on this journey.
"Our passionate, talented, dedicated and experienced staff remain central to our success. Their ability to provide high-quality licensing advice, technical enablement and support continues to differentiate us in the market and gives us confidence as we look ahead. I would like to thank all our teams for their continued commitment and hard work."
"I want to thank Andrew for his five-year contribution to the Group as CFO and as a Board member. We are pleased that we will be retaining his longstanding knowledge of the business and deep operational experience as he transitions to the COO role."
Proposed dividend
As stated above, the Group's dividend policy is to distribute between 40% and 50% of post-tax pre-exceptional earnings to shareholders. Accordingly, the Board is pleased to propose a gross final dividend of 7.0p per share. The aggregate amount of the proposed dividend expected to be paid out of retained earnings at 28 February 2026, but not recognised as a liability at the end of the financial year, equates to £16.5m. Our capital allocation policy is that excess cash following organic investment and any M&A is returned to shareholders. We consider both special dividends and share buybacks as methods to return excess capital. If approved by shareholders, the
final dividend will be payable on 31 July 2026 to all ordinary shareholders who are registered as such at the close of business on the record date of 17 July 2026.
The salient dates applicable to the dividend are as follows:
| Dividend announcement date | Tuesday, 12 May 2026 |
|---|---|
| AGM at which dividend resolutions will be proposed | Thursday, 9 July 2026 |
| Currency conversion determined and announced together with the South African (SA) tax treatment by 1100 (SAST) | Monday, 13 July 2026 |
| Last day to trade cum dividend (SA register) | Tuesday, 14 July 2026 |
| Commence trading ex-dividend (SA register) | Wednesday, 15 July 2026 |
| Last day to trade cum dividend (UK register) | Wednesday, 15 July 2026 |
| Commence trading ex-dividend (UK register) | Thursday, 16 July 2026 |
| Record date | Friday, 17 July 2026 |
| Payment date | Friday, 31 July 2026 |
Additional information required by the Johannesburg Stock Exchange:
- The GBP:ZAR currency conversion will be determined and published on SENS on 13 July 2026.
- 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.
- The dividend payment will be made from a foreign source (UK).
- At 12 May 2026, being the declaration announcement date of the dividend, the company had a total of 236,370,093 shares in issue (with no treasury shares).
- No transfers of shareholdings to and from South Africa will be permitted between 13 July 2026 and 17 July 2026 (both dates inclusive). No dematerialisation or rematerialisation orders will be permitted between 15 July 2026 and 17 July 2026 (both dates inclusive).
Outlook
Over the year, we have further positioned ourselves to be well placed to benefit from the structural demand drivers we see in our markets, including hybrid cloud computing, cybersecurity, services and AI. Our focus remains on implementing our growth strategy through our enablers: Our People, Our Vendors, and how we bring these together into Our Customer proposition. We are increasing our customer centricity, extending our strong vendor partnerships and leveraging the technical skills of our service delivery teams to drive our growth through this next technological phase.
Our FY27 outlook remains consistent with that provided in our FY26 trading update on 24 March. The Board expects to deliver high single-digit to low double-digit percentage growth in GP, with operating profit broadly flat, as the Group absorbs c.£4.5m of cost normalisation relating to higher technology costs following the completion of strategic projects and a return to normal bonus levels. We have now passed the anniversary of the Microsoft incentive changes and the tough comparative from the private sector sales realignment, and have seen strong momentum continue into the early weeks of FY27, reinforcing our confidence in the year ahead.
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://stream.brrmedia.co.uk/broadcast/69aeeade3254580013ad35c5
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.
4
Enquiries:
Bytes Technology Group plc
Sam Mudd, Chief Executive Officer
Andrew Holden, Chief Financial Officer
James Zaremba, Investor Relations
Sodali & Co
Elly Williamson
Tilly Abraham
Samuel Hillary
Tel: +44 (0)1372 418500
Email: [email protected]
Tel: +44 (0)2072 501446
Email: [email protected]
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 is the responsibility of the directors and 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/FY26_SENS.pdf and is also available on our website https://www.bytesplc.com/. This short form announcement and the results contained in this short form announcement have been prepared in compliance with the JSE Limited's Listings Requirements.
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