Security, cloud and digital transformation drive Bytes H1 growth
Channel player shares numbers for its first half and talks of a solid second half to the year
Bytes has added to a picture of health in the channel after sharing its first-half numbers and indicating that the positive momentum has continued.
The firm revealed that revenues had increased by 13.7% to £251.4m and operating profit climbed by 19% from £19.5m to £23.2m, for the six months ended 31 August 2021.
A trading update signalled that it had continued to follow a strategy of acquiring new customers and then growing its share of wallet. There was also a focus on making sure it could continue to tap into strong vendor relationships and lean on the expertise of its staff to make a difference for customers.
The firm reported that public sector business had held up and echoed the experiences of others in the channel by seeing improving demand from enterprise customers.
Security, cloud adoption and digital transformation were all highlighted as areas that had driven growth, with most of those investments now taking the form of annualised contracts.
Neil Murphy, CEO of Bytes Group, said the strategy had delivered in H1 and there was confidence about the rest of the fiscal year. “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,” he said.
“We have maintained our track record of year-on-year growth despite the ongoing uncertainty caused by the pandemic, with our business benefiting from our wide-ranging offering, and our partnerships with the world’s leading vendors and software publishers.
“Looking ahead, we remain confident in delivering our growth strategy and capitalising on the market opportunity for the benefit of all our stakeholders.”
In his review for investors, Murphy said the firm was continuing to invest in services, fuelled by its position as a Microsoft Azure Expert and its delivery of managed services, and was also developing its own systems to ensure it could offer the best customer experience.
Bytes also said it remained committed to running a sustainable business, a factor that is increasingly important to investors, and the business was also determined to increase its workforce diversity.
Bytes started life as a public company just over a year ago, with a string of positive financial updates, rewarding investors that grasped the value that the channel player had built up in the market.
The company’s results come just a couple of days after full-year numbers from Softcat also revealed that it had come through the pandemic in good shape. The larger channel players have been able to navigate the challenges and tap into the rising demand for security, cloud, digital transformation and hybrid workplace solutions.