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Results for the six months ended 31 August 2021 and dividend declaration
Bytes Technology Group plc
(Incorporated in England and Wales)
(Registered number: 12935776)
LEI: 213800LA4DZLFBAC9O33
Share code: BYI
ISIN: GB00BMH18Q19
("Bytes” or “the Group”)
28 October 2021
Results for the six months ended 31 August 2021 and dividend declaration
A strong half year performance delivering on our strategy
Bytes Technology Group plc (LSE: BYIT, JSE: BYI), one of the UK’s leading software, security, and cloud services
specialists, today announces its half year results for the six months ended 31 August 2021 (“H1 FY22”).
Neil Murphy, Chief Executive Officer, said:
“I am delighted to report this strong set of results, which saw the Group deliver against its strategic goals,
producing growth across all areas of the business. We have maintained our track record of year-on-year growth
despite the ongoing uncertainty caused by the pandemic, with our business benefitting from our wide-ranging
offering, and our partnerships with the world’s leading vendors and software publishers. Reflecting the strength of
our business and our performance, I am pleased to announce an interim dividend of 2.0 pence per share.”
“I am particularly proud of the energy, enthusiasm and professionalism demonstrated by our people through what
has been and remains a challenging time. I would also like to thank our clients for their continued support; they
are the lifeblood of this business and will always be our top priority. Looking ahead, we remain confident in
delivering our growth strategy and capitalising on the market opportunity for the benefit of all our stakeholders.”
Financial performance
£’million H1 FY22 (six H1 FY21 (six % change
months ended months ended year-on-year
31 August 2021) 31 August 2020)
Gross invoiced income £638.2m £505.4m 26.3%
(“GII”)1
Revenue2 £251.4m £221.2m 13.7%
Gross profit (“GP”) £52.9m £46.4m 14.0%
Operating profit £23.2m £19.5m 19.0%
Adjusted operating profit £25.0m £20.5m 22.0%
(“AOP”)3
Earnings per share (pence) 7.72 6.78 13.9%
Adjusted earnings per 8.48 7.19 17.9%
share4 (pence)
Headline earning per share 7.72 6.78 13.9%
(pence)
Group highlights for the six months ended 31 August 2021
- Gross invoiced income increased 26.3% to £638.2 million (H1 FY21: £505.4 million), with growth primarily in
software and services, as corporate client demand strengthened alongside continued growth from public
sector customers.
- Revenue has also increased by 13.7% to £251.4 million (H1 FY21: £221.2 million).
- Gross profit growth of 14.0% to £52.9 million (H1 FY21: £46.4 million), reflecting strong customer acquisition
trends across both public and private sectors and increasing gross profit per customer.
- Operating profit has increased by 19.0% from £19.5 million to £23.2 million.
- Adjusted operating profit of £25.0 million (H1 FY21: £20.5 million), representing growth of 22.0%.
- Earnings per share has increased by 13.9% from 6.78 pence to 7.72 pence.
- Accordingly, the Board is pleased to declare an interim dividend of 2.0 pence per share to be paid on
3 December 2021.
Dividend declaration
As stated above, the Group’s dividend policy is to distribute 40% of post-tax pre-exceptional earnings to
shareholders. Accordingly, the Board is pleased to declare a gross interim dividend of 2.0 pence per share. The
aggregate amount of the proposed dividend expected to be paid on 3 December 2021 out of retained earnings at
31 August 2021, but not recognised as a liability at the end of the half year, is £4.8m. The salient dates applicable
to the dividend are as follows:
Dividend announcement date Thursday, 28 October 2021
Currency conversion and SA tax treatment Monday, 15 November 2021
announcement released on SENS
Last day to trade cum dividend (SA register) Tuesday, 16 November 2021
Commence trading ex-dividend (SA register) Wednesday, 17 November 2021
Commence trading ex-dividend (UK register) Thursday, 18 November 2021
Record date Friday, 19 November 2021
Payment date Friday, 3 December 2021
Additional information required by the Johannesburg Stock Exchange:
1. The GBP:ZAR currency conversion will be determined and published on SENS on 15 November 2021.
2. A dividend withholding tax of 20% will be applicable to all shareholders on the South African register who are
not exempt therefrom.
3. The dividend payment will be made from a foreign source.
4. At 28 October 2021, being the declaration announcement date of the dividend, the Company had a total of
239,482,333 shares in issue (with no treasury shares).
5. No transfers of shareholdings to and from South Africa will be permitted between Tuesday, 16 November
2021 and Friday,19 November 2021 (both dates inclusive). No dematerialisation or rematerialisation orders
will be permitted between Wednesday, 17 November 2021 and Friday, 19 November 2021 (both dates
inclusive).
Current trading and outlook
After a successful H1 FY22 with a continuation of double-digit growth, the business carries strong momentum
going into the second half of the year where we have already got off to a good start. Travel and marketing
expenses have not reverted to pre-lockdown levels and are still broadly in line with those experienced in H1 last
year. These costs are expected to increase gradually in the second half of the year. Our successful strategy of
acquiring new customers and then growing our share of wallet, building on our strong vendor relationships and
the technical and commercial skills of our people, makes us confident that the Group is well positioned for the
remainder of the financial year.
Analyst and investor presentation
A presentation and Q&A session for analysts and investors will be held today via webcast at 9:30am BST. If you
wish to access the webcast, please contact Headland Consultancy at Bytes@headlandconsultancy.com for the
registration details.
The announcement and presentation will be available after the event at: https://www.bytesplc.com/investors.
Enquiries
Bytes Technology Group plc Tel: +44 (0)1372 418 500
Neil Murphy, Chief Executive Officer
Andrew Holden, Chief Financial Officer
Headland Consultancy (financial PR advisor to Bytes) Tel: +44 (0) 20 3805 4822
Stephen Malthouse
Lucy Legh
Henry Wallers
Jack Gault
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 any 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 Listing Rules of the UK Listing 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/2021/jse/isse/BYIE/H1FY22SENS.pdf and is also available on our website
https://www.bytesplc.com/investors. The full announcement is also available at our registered office for
inspection, at no charge, during office hours. Copies of the full announcement may be requested by contacting
Headland Consultancy on telephone: +44 (0) 20 3805 4822 or email: Bytes@headlandconsultancy.com.
About Bytes Technology Group plc
Bytes is one of the UK's leading providers of IT software offerings and solutions, with a focus on cloud and security
products. The Group enables effective and cost-efficient technology sourcing, adoption, and management across
software services, including in the areas of security and cloud. It aims to deliver the latest technology to a diverse
and embedded non-consumer customer base and has a long track record of delivering strong financial
performance.
1 ‘Gross invoiced income’ (“GII”) is a non-IFRS alternative performance measure that reflects gross income billed to customers adjusted for
deferred and accrued revenue items.
2 ‘Revenue’ is reported in accordance with International Financial Reporting Standard (IFRS) 15, Revenue from Contracts with Customers.
Under this standard the Group is required to exercise judgment 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 i.e., the gross profit achieved on the contract and not the gross income billed to the customer.
3 ‘Adjusted operating profit’ is a non-IFRS alternative performance measure that excludes from operating profit the effects of significant items
of expenditure which are non-recurring events or do not reflect our underlying operations. IPO costs, amortisation of acquired intangible assets
and share-based payment charges are all excluded.
4 ‘Adjusted earnings per share’ is a non-IFRS alternative performance measure that the Group calculates by dividing the profit after tax
attributable to owners of the Company, adjusted for the effects of significant items of expenditure which are non-recurring events or do not
reflect our underlying operations (“Adjusted earnings”) by the weighted average number of ordinary shares in issue during the period. IPO
costs, amortisation of acquired intangible assets and share-based payment charges are all excluded in arriving at Adjusted earnings. The
calculation is set out in note 15 of the financial statements.
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
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 28-10-2021 08:00:00
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