Bytes Technology (LSE:BYIT) H1 FY26 GII Up 9%, Operating Profit Down 7%

3 min read | October 14, 2025 05:22 AM EDT | By Sonal Goyal

Google News:

Bytes Technology (LSE:BYIT) H1 FY26 GII Up 9%, Operating Profit Down 7% — Image source: © 2025 Krish Capital Pty. Ltd.

Recent News

Centerra Gold Pipeline Growth Fuels Fresh Valuation Debate Today

Manulife’s TSX Composite Index Story Tests Asia Growth Confidence

Sprott Valuation Check Deepens After Multi Year Market Run

Neo Performance Valuation Debate Deepens After Strong Market Rally

Make Kalkine Media
My Trusted Source

Highlights

In H1 FY26, gross invoiced income (GII) rises 9.1% with software and services contributing to growth.

Operating profit declines 7.0% due to higher headcount and salary costs.

Interim dividend per share increased to 3.2p, up from 3.1p last year.

Bytes Technology Group plc (LSE:BYIT) has reported its half-year results for the six months ended 31 August 2025 (H1 FY26). The Group recorded gross invoiced income (GII) of GBP 1,342.0m, up 9.1% from GBP 1,230.2m in H1 FY25. Revenue rose 2.5% to GBP 108.1m, compared with GBP 105.5m in the same period last year.

Gross profit (GP) was GBP 82.4m, a slight increase of 0.4% year-on-year, while operating profit decreased 7.0% to GBP 33.1m, representing 40.2% of GP (H1 FY25: GBP 35.6m, 43.4%). Cash on hand rose 15.1% to GBP 82.3m, although cash conversion fell to 34.4% from 56.2% in H1 FY25. Earnings per share declined to 12.03p from 12.67p, and the interim dividend was raised to 3.2p per share, a 3.2% increase over the prior year.

Segment and Operational Highlights
GII growth was supported by an 8.9% increase in software and a 15.1% rise in services. Segmental performance showed public sector GP growth of 1.6%, affected by Microsoft partner incentive changes, while corporate GP fell 0.6% following adjustments to the new sales structure. Software GP decreased 3.5%, offset by over 40% growth in services, in line with the Group’s strategic objective to increase services income.

Headcount grew 12.0% year-on-year to 1,266 employees. Returning customers accounted for 98% of GP, consistent with H1 FY25. BTG received multiple vendor awards, including recognition from Axonius, Barracuda, Checkpoint, Sophos, Varonis, and VMWare. Both Bytes Software Services and Phoenix Software were named among the UK's top 100 Best Workplaces 2025, with Phoenix Software ranking in the top 10.

CEO Statement
Sam Mudd, CEO, said:
"We delivered a resilient performance, building positive momentum through the period as we settled into our new corporate sales structure. Despite the challenging economic climate, and our internal and industry changes over the past six months, we have maintained our share of wallet amongst our existing customers as they continued to invest in their IT needs and we have continued to expand our client base in both the public and corporate sectors.

Outlook
BTG noted that demand drivers in cloud computing, cyber security, and AI continue to influence trading for the remainder of FY26. While H2 FY26 has started positively, the Group is mindful that prior-year comparatives were particularly strong. The Group expects full-year results to remain within market expectations.

Share Performance

The company is currently trading at GBX 380.60 down by 7.77%from its previous close of GBX 412.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.