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Condensed annual results for the year ended 28 February 2025 and proposed dividend
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")
Condensed annual results for the year ended 28 February 2025 and proposed dividend
Strong partnerships drive consistent growth
13 May 2025
Bytes Technology Group plc (LSE: BYIT, JSE: BYI), one of the UK and Ireland's leading software, security, AI
and cloud services specialists, today announces its financial results for the year ended 28 February 2025
(2024/25).
Financial performance
Year ended 28 Year ended 29 % change
February 2025 February 2024 year on year
Gross invoiced income (GII)(1) £2,099.8m £1,823.0m 15.2
Revenue(2) £217.1m £207.0m 4.9
Gross profit (GP) £163.3m £145.8m 12.0
Operating profit £66.4m £56.7m 17.1
Operating profit/GP% 40.7% 38.9%
Cash £113.1m £88.8m 27.4
Cash conversion(3) 113.8% 116.4%
Earnings per share (pence) 22.78 19.55 16.5
Headline earnings per share (pence) 22.78 19.55 16.5
Final dividend per share (pence) 6.9 6.0 15.0
Special dividend per share (pence) 10.0 8.7 14.9
Financial highlights
- GII exceeded £2bn for the first time, increasing by 15.2%, primarily driven by software.
- GP growth of 12.0%, with 8.9% corporate growth and 18.2% public sector growth, and double-digit growth in
software and services.
- Operating profit increased by 17.1%, with the operating profit / GP margin increasing to 40.7%.
- Final ordinary dividend of 6.9p, resulting in a full-year dividend of 10.0p, up 15.0%, together with a special
dividend of 10.0p.
- Strong balance sheet with closing cash of £113m and 114% cash conversion.
(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. In prior years, the measure divided 'free cash flow' by adjusted
operating profit. Accordingly the previously reported cash conversion for the year ended 29 February 2024 of 104.3% has
been revised to 116.4% above.
Operational highlights
- Existing customers contributed 97% of our GP in this year (2023/24: 97%), at a renewal rate of 109% (2023/24:
109%).
- Headcount growth of 17.8% to 1,245 (29 February 2024: 1,057), with focus on bolstering sales and service
delivery teams while ensuring support areas also grow to support the expanding business.
- Continued to grow our physical footprint by opening offices in Sunderland and Portsmouth, expanding
floorspace in London and, towards the end of the year, the acquisition of two buildings adjacent to our
Leatherhead office to cater for our further expansion.
- Renewed our Microsoft Azure Expert status for provision of managed services and secured more security and
cloud specialisms.
- Received multiple vendor awards, including from Palo Alto Networks, Axonius, Check Point, Sophos, Cato
Networks, Bitdefender, Adobe and Druva.
- Both Bytes Software Services and Phoenix Software named among the UK's top 50 Best Workplaces 2024.
Sam Mudd, Chief Executive Officer, said:
"I am proud to report another strong set of results for BTG, marked by a significant rise in operating profit. This
performance reflects robust and sustained demand for our comprehensive suite of software, solutions, and
services. Despite a challenging macroeconomic environment, we have not only deepened our relationships with
existing clients—securing a greater share of their IT spend—but also successfully expanded our footprint across
both public and corporate sectors.
The Group continues to make investments in personnel, systems, services and new vendor accreditations to drive
growth and support our customers to navigate the complexities of the evolving IT market where innovation, cloud
and security are only becoming more important. The strength of our relationships with Microsoft and many other
top-tier vendors, such as Adobe, AWS, Check Point, Dell, VMware and Service Now, allows us to seize exciting
opportunities in cloud adoption, data and workload migrations, storage, security and virtualisation technologies.
We continue to expand our collaboration with customers as they roll out emerging AI technologies like Copilot,
working closely with their teams to embed these tools into their businesses to support growth and drive efficiency.
The sustained demand in structural growth areas such as cloud, security and AI, our commitment to customer
service, our expanding technical capabilities and our high levels of accreditation underpin our confidence for
continued strong growth in our financial year 2025/26.
I have been hugely impressed by the commitment and professionalism of all of our staff as they remained focused
on delivering our strategic priorities in 2024/25, and wish to extend my gratitude for their hard work and dedication
to the business. Finally, I would like to thank our clients for their support and entrusting their business to us.
Together, our staff and customers are our lifeblood and will always be our top priority."
Proposed dividends
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 6.9 pence per
share. The aggregate amount of the proposed dividend expected to be paid out of retained earnings at 28
February 2025, but not recognised as a liability at the end of the financial year, equates to £16.6m. 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, preferring share
buybacks when our shares are materially undervalued. In light of the company's continued strong performance
and cash generation, the Board also considers it appropriate to propose a cash return to ordinary shareholders
with a special dividend of 10.0 pence per share, equating to £24.1m. If approved by shareholders, the final and
special dividend will be payable on 25 July 2025 to all ordinary shareholders who are registered as such at the
close of business on the record date of 11 July 2025.
The salient dates applicable to the dividend are as follows:
Dividend announcement date Tuesday, 13 May 2025
AGM at which dividend resolutions will be proposed Wednesday, 2 July 2025
Currency conversion determined and announced together with the Monday, 7 July 2025
South African (SA) tax treatment by 1100 (SAST)
Last day to trade cum dividend (SA register) Tuesday, 8 July 2025
Commence trading ex-dividend (SA register) Wednesday, 9 July 2025
Last day to trade cum dividend (UK register) Wednesday, 9 July 2025
Commence trading ex-dividend (UK register) Thursday, 10 July 2025
Record date Friday, 11 July 2025
Payment date Friday, 25 July 2025
Additional information required by the Johannesburg Stock Exchange:
1. The GBP:ZAR currency conversion will be determined and published on SENS on 7 July 2025.
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 12 May 2025, being the declaration announcement date of the dividend, the company had a total of
241,142,169 shares in issue (with no treasury shares).
5. No transfers of shareholdings to and from South Africa will be permitted between 7 July 2025 and 11 July
2025 (both dates inclusive). No dematerialisation or rematerialisation orders will be permitted between 9 July
2025 and 11 July 2025 (both dates inclusive).
Outlook
The Group traded strongly in financial year 2024/25, while operating in highly competitive markets and despite
challenging macroeconomic conditions. Our focus remains on executing our growth strategy by nurturing existing
customer relationships, extending our strong vendor partnerships, and leveraging the technical skills of our service
delivery teams. We are well positioned to respond to the evolving demands we see in our markets, including cloud
computing, cybersecurity, AI and managed services and deliver another year of double-digit gross profit growth
together with high single-digit operating profit growth in financial year 2025/26.
Analyst and investor presentation
A presentation for sell-side analysts and investors will be held today at 09:30 (BST) via a video webcast that can
be accessed at:
https://sparklive.lseg.com/BytesTechnologyGroup/events/5e028343-b396-4384-a339-1cb2d82ae8eb/btg-plc-
full-year-results
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
Andrew Holden, Chief Financial Officer
James Zaremba, Investor Relations
Sodali & Co Tel: +44 (0)2072 501446
Elly Williamson
Jane Glover
Maria Zander
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/2025/jse/isse/BYIE/FY25_SENS.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
Date: 13-05-2025 08:00:00
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