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Bytes signals strong start to fiscal year

Ahead of its AGM, the firm has provided an update on the first few months of its latest fiscal year, indicating that it is performing well

Bytes Technology Group has shared an update on its progress ahead of its annual general meeting (AGM), which indicate that it is maintaining the momentum in the business.

The channel player will sit down with shareholders at its AGM today as it goes through its last set of full-year numbers, but the firm wanted to provide a brief, advanced update of trading so far in its fiscal year.

The channel player released full-year numbers on 23 May and stated that, since then, “the business has continued to trade strongly, and we are seeing resilient demand and pleasing win-rates across both the corporate and public sectors”.

The firm indicated that the past couple of months had seen it performing well against its key metrics, including percentage growth in gross profit and adjusted operating profit, both of which were in double digits for the first four months of the financial year.

The brief statement also indicated that percentage growth in gross invoiced income had “significantly exceeded” the increase in gross profit as a result of a number of high volume, lower gross margin software wins over the past few months.

Neil Murphy, CEO of Bytes, said the firm had started the first four months of the fiscal year strong. 

“We’re pleased with the progress we have made so far this year in executing against our strategy and continuing to expand our market share,” he said.

“Whilst we remain mindful of macroeconomic headwinds, these have not had a noticeable impact on our trading performance to date, and we are confident that our leading vendor partnerships and first-rate client service leave us well-positioned to make further progress this year,” he added.

The firm’s FY numbers back in May were impressive, with revenue climbing by 26.5% to £184.4m for the year ended 28 February 2023. Gross invoiced income improved by 19.1% to reach £1.44bn and operating profit was up by 20.6% to £50.9m.

The firm reported growth across software, hardware and services, with commercial and public sector clients alike continuing to invest in IT.

Bytes also demonstrated an ability to retain and grow business with existing customers, with 96% of gross profit coming from customers that had traded with the firm in the past year, with a renewal rate of 116%.

Murphy’s comments about the resilience of the business can be added to some of the comments made by channel leaders in recent financial updates. Results from Bytes – along with SoftcatComputacenter, Exclusive Networks and Westcon-Comstor – have shown the strength of resilience in the channel.

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