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Highlights

  • FY25 gross invoiced income (GII) exceeded £2 billion, up 15.2%, driven by software demand.

  • Operating profit rose 17.1%, with dividends up 15% and a special dividend declared.

  • Analyst recommendation remains BUY, with a target price of AUD 11.11, offering a 60.24% upside.

Bytes Technology Group plc (LSE:BYIT), a leading UK software, cloud, AI, and cybersecurity services provider, reported its financial results for the fiscal year ending 28 February 2025. The company achieved £2.02 billion in Gross Invoiced Income (GII), a 15.2% year-on-year increase, driven primarily by software.

Gross profit (GP) rose 12.0%, with contributions from both the corporate (8.9%) and public sector (18.2%) segments. Operating profit surged 17.1%, while operating profit as a percentage of gross profit improved to 40.7%. The company declared a final dividend of 6.9p, bringing the full-year dividend to 10.0p, alongside a special dividend of 10.0p.

Customer Retention, Expansion and Talent Growth

Bytes reported a 97% GP contribution from existing clients, with a 109% renewal rate, highlighting customer loyalty. The company’s headcount grew by 17.8%, now employing 1,245 staff, with a strategic focus on sales and service delivery capabilities.

Physical expansion included new offices in Sunderland and Portsmouth, added floorspace in London, and acquisition of two buildings adjacent to its Leatherhead HQ, further reinforcing its future-readiness.

Recognition and Continued Vendor Success

The company renewed its Microsoft Azure Expert Managed Services Partner status and earned awards from major vendors including Palo Alto Networks, Sophos, Adobe, and Druva, affirming its market leadership in cloud and cybersecurity.

Outlook

Despite macroeconomic headwinds, Bytes aims to deliver double-digit gross profit growth and high single-digit operating profit growth in FY26. The firm continues to invest in key growth areas like cloud computing, cybersecurity, AI, and managed services.

Analyst View

Bytes Technology holds a current recommendation of BUY with a target price of AUD 11.11, representing a 60.24% upside from its current level. The long-term growth estimate stands at 6.42%, and Jefferies continues to back the stock with a BUY rating.