Bytes Technology Group (BYIT) H2 2025 earnings summary

Executive summary

• Achieved strong full-year results with 15.2% growth in gross invoiced income to £2.1bn, 12% rise in gross profit, and 17.1% increase in operating profit, with over 100% cash conversion.

• Double-digit organic profit growth sustained for over a decade, despite macroeconomic challenges and changes in Microsoft incentives.

• Expanded customer base and increased spend from existing clients in both public and corporate sectors, with a focus on Microsoft, cybersecurity, and AI as key growth drivers.

• Continued investment in staff, technical capabilities, culture, and vendor partnerships, supporting growth and customer needs.

• Expanded service delivery offerings, particularly in AI and generative AI.

Financial highlights

• Gross invoiced income up 15.2% to £2.1bn, gross profit up 12% to £163.3m, and operating profit up 17.1% to £66.4m year-over-year.

• Adjusted operating profit (excluding amortization and share-based payments) grew 14.4% to £72.4m.

• Profit before tax up 21.1% to £74.6m; earnings per share grew 16.5% to 22.8p.

• Cash conversion at 114% (operating profit denominator), with a year-end cash balance of £113.1m, up 27.4% year-over-year.

• Final dividend of £0.069 per share, full-year dividend of £0.10 per share (up 15%), plus a special dividend of £0.10 per share.

Outlook and guidance

• Expectation to maintain double-digit gross profit growth and high single-digit operating profit growth, absorbing £1.6m in National Insurance cost increases.

• Well positioned to capitalize on trends in cloud computing, cybersecurity, AI, and managed services.

• Continued focus on organic growth, with M&A considered only for strategic, culturally aligned opportunities.

• Ongoing investment in services, staff, and technology to support future growth.