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Bytes breaks through GII £2bn barrier
Channel player Bytes shares FY numbers that underline its successful ability to emerge strongly through a challenging market
The headline from Bytes Technology Group FY numbers will be the channel player’s ability to break through the £2bn barrier with gross invoiced income (GII).
An increase of 15.2% enabled that milestone barrier to be overcome, with the firm indicating that gross profit had improved by 12% to reach £163.3m, with 8.9% corporate growth and 18.2% public sector growth along with double-digit improvements in software and services.
Bytes was able to win public sector tenders and expand relationships during the period despite the challenging economic conditions. The firm follows a strategy of looking to increase the number of services customers adopt over the period of a five-to-10-year contract, with artificial intelligence (AI) increasingly an area where more products can be added.
Operating profit increased by 17.1%, and Bytes closed out the year ending 28 February with a strong balance sheet that included £113m in cash.
During the year, the channel player saw its existing customer contribute 97% of its growth, with a renewal rate of 109%. The firm also increased headcount in the period by 17.8% to 1,245 staffers as it added more depth to sales and service teams.
The fiscal year saw expansion in the form of fresh office openings in Sunderland and Portsmouth, along with a move to expand floorspace available in London. The firm also acquired a couple of buildings next to its Leatherhead headquarters as it eyed future growth.
Sam Mudd, CEO of Bytes, welcomed the results and drew attention to the firm’s ability to continue to serve customers with their software needs.
“This performance reflects robust and sustained demand for our comprehensive suite of software, solutions and services,” she said. “Despite a challenging macroeconomic environment, we have not only deepened our relationships with existing clients – securing a greater share of their IT spend – but also successfully expanded our footprint across both public and corporate sectors.
“The Group continues to make investments in personnel, systems, services and new vendor accreditations to drive growth and support our customers to navigate the complexities of the evolving IT market where innovation, cloud and security are only becoming more important.
“The strength of our relationships with Microsoft and many other top-tier vendors – such as Adobe, AWS, Check Point, Dell, VMware and Service Now – allows us to seize exciting opportunities in cloud adoption, data and workload migrations, storage, security and virtualisation technologies.
“We continue to expand our collaboration with customers as they roll out emerging AI technologies like Copilot, working closely with their teams to embed these tools into their businesses to support growth and drive efficiency,” she added.
Looking ahead, Mudd indicated that the foundations are there to keep the momentum going across the business as it moves deeper into its latest fiscal year. Bytes remains committed to a strategy of nurturing existing customer relationships, extending vendor partnerships, and leveraging the technical skills of its service delivery teams, she added.
“The sustained demand in structural growth areas such as cloud, security and AI, our commitment to customer service, our expanding technical capabilities and our high levels of accreditation underpin our confidence for continued strong growth in our financial year 2025/26,” said Mudd.
