Bits and Splits - stock.adobe.co

Bytes trading update signals strong FY numbers coming

Channel player Bytes updates markets ahead of more details of its fiscal year performance coming later this spring

Bytes has given its investors a boost after sharing some details of its fiscal year (FY) ahead of the release of detailed numbers in a few weeks.

The channel player revealed that trading had been above expectations as it continued to reap the benefits of being in a position to deliver tech and services around the popular areas of cloud, security and software.

As a result, the group issued a full-year trading update to cover the 12 months ended 28 February, indicating that there was double-digit growth in its key financial metrics and that the increase in gross invoice income was “robust”, with an improvement of more than 26% to around £1.2bn.

The channel player also delivered gross profit growth of approximately 20% and adjusted operating profit growth of approximately 23%. Cash collections continued to be strong and cash conversion for the business will be well over 100%, with cash on the balance sheet of £68m at year end.

“We continue to build positive momentum in our business as we further invest in new talent and maintain our focus on customer service. The past year has seen Bytes continuing to strengthen its market position in cloud, security and annuity software and services, working with some of the world’s most successful software companies,” said Neil Murphy, CEO of Bytes.

“We are making good progress with our strategy and are well-positioned to deliver on the significant opportunity ahead of us,” he added.

Preliminary results will be issued later in May to provide more meat on the bones, marking its second set of full-year numbers since the firm went public in 2020.

Last year’s preliminary results showed a 5% rise in revenues to £393.6m, compared with £373.1m a year earlier, and a 33% climb in gross invoicing income totalling £958.1m. Adjusted operating profit of £37.5m represented growth of 18%.

Bytes has consistently delivered since its IPO and rewarded those investors that backed its move to go public back in December 2020, when the business was valued at approximately £646.6m and its placing being oversubscribed as investors looked to get involved with the firm.

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