Bytes Technology reports 19% first-half revenue growth

what happened

Newsmetry API reports that UK software and cloud solutions provider Bytes Technology lifted first-half revenue 19% year on year to £128.3 million, ahead of the £126.91 million consensus based on three analysts’ estimates. Gross profit climbed 18% to £97.1 million, while operating profit was £35.3 million, pretax profit £40 million and net income £29.9 million.

The company attributed gross-profit growth to changes in its sales structure. Bytes completed its sector alignment in July, focusing on private-sector customers while Phoenix concentrates on the public sector. The company said the change supports growth and provides clearer customer engagement. Services gross invoiced income rose 41% as demand for managed services and security increased, while technical delivery headcount grew 17.4%.

After the reporting period, Bytes completed a £25 million share buyback and acquired CyberOne. The company expects fiscal 2027 gross-profit growth in the low to mid-teens and operating-profit growth in the low to mid single digits. It also said demand drivers in software, AI, cybersecurity and infrastructure are strengthening.

why it matters

The figures indicate faster revenue and gross-profit growth, while the fiscal 2027 operating-profit outlook points to a more moderate pace. The average analyst rating is “buy”: six recommendations are “strong buy” or “buy”, three are “hold” and three are “sell” or “strong sell”. Wall Street’s median 12-month price target is GBp450.00, about 2.6% below the October 12 close of GBp462.20. The shares recently traded at 20 times forward earnings, versus 17 three months earlier.

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