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Results for the six months ended 31 August 2025 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")
Results for the six months ended 31 August 2025 and declaration of cash dividend
14 October 2025
Bytes Technology Group plc (LSE: BYIT, JSE: BYI), one of the UK's leading software, security, cloud and AI
services specialists, today announces its half year results for the 6 months ended 31 August 2025 (H1 FY26).
Financial performance (£'million) H1 FY26 (six H1 FY25 (six % change
months ended 31 months ended 31 year on year
August 2025) August 2024)
Gross invoiced income (GII)(1) £1,342.0m £1,230.2m 9.1
Revenue(2) £108.1m £105.5m 2.5
Gross profit (GP) £82.4m £82.1m 0.4
Operating profit £33.1m £35.6m (7.0)
Operating profit/GP% 40.2% 43.4%
Cash £82.3m £71.5m 15.1
Cash conversion(3) 34.4% 56.2%
Cash conversion (rolling 12 months)(3) 104.7% 112.6%
Earnings per share (pence) 12.03 12.67 (5.1)
Headline earnings per share (pence) 12.03 12.67 (5.1)
Interim dividend per share (pence) 3.2 3.1 3.2
(1) GII is a non-International Financial Reporting Standard (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 gross profit achieved on the contract and not the gross income billed to the customer). Our key financial metrics
of gross invoiced income, gross profit, 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. It is calculated over both the current 6 month reporting period and
over a rolling 12 months, the latter taking the previous 12 months free cash flow divided by the previous 12 months operating
profit, in order to reflect seasonal variations between the two halves of the year.
Financial highlights
- GII increased 9.1%, with 8.9% growth in software and 15.1% in services.
- GP increased 0.4%. Segmentally public sector, more impacted by Microsoft's partner incentive changes, was
+1.6% and corporate, which adjusted to the new sales structure launched at the start of the year, was -0.6%.
Software GP down 3.5% was offset by strong growth in services which increased over 40% consistent with our
strategic objective to grow services income and profit.
- Operating profit down 7.0%, with higher headcount, salary and national insurance costs only partly mitigated
by lower variable remuneration.
- Strong balance sheet with closing cash of £82.3m.
- Interim dividend of 3.2p, increased by 3.2% from last year's interim dividend (H1 FY25: 3.1 pence).
- Outlook: We remain confident of delivering a full year outcome within the range of market expectations.
Operational highlights
- New corporate sales structure has settled after an adjustment period.
- Customers that traded with BTG in the prior year contributed 98% of our GP in this half year (H1 FY25: 98%)
- Headcount up 12.0% year-on-year to 1,266 (up 1.7% since 28 February 2025).
- Received multiple vendor awards including from Axonius, Barracuda, Checkpoint, Sophos, Varonis and
VMWare.
- Both Bytes Software Services and Phoenix Software named among the UK's top 100 Best Workplaces 2025
with Phoenix Software in the top 10.
Interim dividend
The Group's dividend policy is to distribute 40-50% of post-tax pre-exceptional earnings to shareholders.
Accordingly, the Board is pleased to declare a gross interim dividend of 3.2 pence per share. The aggregate
amount of the interim dividend expected to be paid out of retained earnings at 31 August 2025, 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, 14 October 2025
Currency conversion determined and announced together with the Monday, 3 November 2025
South African (SA) tax treatment on SENS by 11:00
Last day to trade cum dividend (SA register) Tuesday, 4 November 2025
Commence trading ex-dividend (SA register) Wednesday, 5 November 2025
Last day to trade cum dividend (UK register) Wednesday, 5 November 2025
Commence trading ex-dividend (UK register) Thursday, 6 November 2025
Record date Friday, 7 November 2025
Payment date Friday, 21 November 2025
Additional information required by the Johannesburg Stock Exchange:
1. The GBP:ZAR currency conversion will be determined and published on SENS on Monday, 3 November
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 Tuesday, 14 October 2025, being the declaration announcement date of the dividend, the company had
a total of 239,090,507 shares in issue (with no treasury shares).
5. No transfers of shareholdings to and from South Africa will be permitted between Monday, 3 November 2025
and Friday, 7 November 2025 (both dates inclusive). No dematerialisation or rematerialisation orders will be
permitted between Wednesday, 5 November 2025 and Friday, 7 November 2025 (both dates inclusive).
Current trading and outlook
We are well positioned to benefit from the structural demand drivers we see in our markets including cloud
computing, cyber security and AI for the remainder of FY26. We have a strong pipeline and have started H2 FY26
well but are mindful that comparatives will be impacted by the particularly strong trading performance we saw in
the last few months of the prior financial year. We remain confident of delivering a full year outcome within the
range of market expectations.
Analyst and investor presentation
A presentation for sell-side analysts and investors will be held today at 9:00am (BST) via a video webcast that
can be accessed using the link:
https://brrmedia.news/BYIT_HY_26
A recording of the webcast will be available after the event at www.bytesplc.com. The announcement and
presentation will be available at www.bytesplc.com from 7.00am and 9.00am (BST), respectively.
Enquiries
Bytes Technology Group plc Tel: +44 (0)1372 418 500
Sam Mudd, Chief Executive Officer
Andrew Holden, Chief Financial Officer
James Zaremba, Investor Relations
Email: ir@bytesplc.com
Sodali & Co Tel: +44 (0)20 7250 1446
Elly Williamson
Tilly Abraham
Email: btg@info.sodali.com
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 since 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. Save 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/H1FY26.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: 14-10-2025 08:00:00
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