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Bytes keeps momentum going in H1

Channel player follows up maiden full-year numbers with signs that growth is continuing

Bytes has continued to trade strongly in the first six months, with the channel player following up its first set of full-year public results with more of the same for investors.

The firm issued a trading update that indicated that demand from its corporate sector customers had continued to improve, and the public sector had also been a source of revenue for the six months ended 31 August.

Bytes revealed it had continued the momentum after full-year results came out in May, with low-teen percentage growth in gross profit and high-teen percentage in operating profit. Investors will get a chance to pore over the details of 1 trading when the full numbers come out next month.

The positive signals coming out of Bytes can be added to those from fellow listed players Softcat and Computacenter, as evidence that the market is continuing to recover from the pandemic and customers that delayed projects and investments are coming back on stream.

Neil Murphy, CEO of Bytes, said the two factors that were supporting growth had meant it was a solid H1. “We are pleased with our first half performance, with the twin benefits of strengthening corporate demand and continued growth in public sector spend ensuring we closed out the period ahead of expectations,” he said.

Given the uncertainties around the prospects for Covid this winter, the ongoing impact of component shortages and other potential unknowns, he was realistic about the prospects going forward.

“Whilst uncertainty remains due to the ongoing impact of the pandemic, we’re confident that our deep understanding of customers’ needs and strong relationships with vendors means we’re well-positioned to enhance our market share and to continue delivering against our strategy,” he added.

Chief financial officer handover

The trading update was also a chance for the business to bid farewell to retiring chief financial officer Keith Richardson, who is calling time on a career with the business that has stretched across almost three decades.

Bytes had already indicated that Andrew Holden, who joined the business as chief operating officer on 1 June, will be taking over the chief financial officer responsibilities with Richardson helping with the handover. Bytes will be providing an update in the future about the long-term plans for the position.

“We would like to express our appreciation to Keith for his dedication and contribution to the Group over the past 27 years,” said Murphy.

“Keith has been ever present since I joined Bytes many years ago and I will be sad to see him go. He has been an integral part of the business and I know the impact of his efforts will continue to be felt well into the future. We wish him the very best in his retirement.”

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