# Bytes Technology Maintains FY27 Outlook After Mixed FY26 Results - Link: https://www.directorstalkinterviews.com/bytes-technology-maintains-fy27-outlook-after-mixed-fy26-results/4121251255 - Published: 2026-05-12T08:01:51+01:00 - Author: Amilia Stone **Bytes Technology Group plc **(LON:BYIT, JSE: BYI), one of the UK and Ireland’s leading software, security, AI and cloud solutions specialists, has announced its financial results for the year ended 28 February 2026 (FY26). **Financial performance** | | **Year ended 28 February 2026** | **Year ended 28 February 2025** | **% change year on year** | | ** ** | | | | | **Gross invoiced income (GII)^(1)** | £2,341.0m  | £2,099.8m  | 11.5 | | **Revenue^(2)** | £220.5m | £217.1m | 1.6 | | ** ** | | | | | **Gross profit (GP)**** ** | £167.3m  | £163.3m  | 2.5 | | **Operating profit**** ****Operating profit/GP%** | £62.7m 37.5% | £66.4m 40.7% | (5.6) | | ** ** | | | | | **Cash** | £98.6m | £113.1m | (12.8) | | ** ****Cash conversion^(3)**** ** |  105.1% |  113.8% | | | **Earnings per share (pence)** | 21.4 | 22.8 | (6.1) | | ** ** | | | | | **Final dividend per share (pence)**** ** | 7.0  | 6.9  | 1.4 | **Financial highlights** –    GII increased 11.5%, with 11.4% growth in software and 24.6% in services. –    GP increased 2.5%, with H1 GP decline of 0.3% improving to 4.6% growth in H2 as the one-year adverse effect of the Microsoft incentive changes ended in January 2026, and the strategic refinement of the private sector sales structure to strengthen medium-term growth settled. –    Public sector GP up 7.4%, despite Microsoft partner incentive change impact. –    Private sector GP decreased marginally by 0.3% due to the refinement of sales structure to increase customer centricity (which launched at the start of the year), and some Microsoft incentives impact. –    Operating profit was 5.6% lower because of slower GP growth and investment in people to drive future growth. –    Strong balance sheet with closing cash of £99m and 105% cash conversion, with £74m returned to shareholders in FY26, including the £25m share buyback. –    Final ordinary dividend of 7.0p, resulting in a full-year dividend of 10.2p together with a new £25m share buyback. ^(1) GII is a non-International Financial Reporting Standards (IFRS) alternative performance measure that reflects gross income billed to customers adjusted for deferred and accrued revenue items. GII has a direct influence on our movements in working capital. ^(2) Revenue is reported in accordance with IFRS 15 Revenue from Contracts with Customers. Under this standard, the Group is required to exercise judgement to determine whether the Group is acting as principal or agent in performing its contractual obligations. Revenue in respect of contracts for which the Group is determined to be acting as an agent is recognised on a ‘net’ basis (the GP achieved on the contract and not the gross income billed to the customer). Our key financial metrics of GII, GP, adjusted operating profit and cash conversion are unaffected by this judgement. ^(3) Cash conversion is a non-IFRS alternative performance measure that divides cash generated from operations less capital expenditure (together, free cash flow) by operating profit. **Operational highlights** –   New private sector sales structure implemented to increase customer centricity and medium-term growth through closer alignment with customers’ and vendors’ needs, impacted H1 with momentum improving in H2. –   Existing customers contributing 97% of our GP in this year (FY25: 97%), at a renewal rate of 99% (FY25: 109%), with £5m of gross profit contributed by new customers. –   Year-end headcount growth of 6.9% to 1,331, with ongoing investment in sales and service delivery teams. –   Strong progress on increasing services gross profit through using vendor funding to support customers in discovery and implementation, as well as attaching more managed services to support customers through the whole technology lifecycle. –    Ranked 14th in the FT’s UK’s Best Employers list, the highest of any reseller. –   Received multiple vendor and industry awards, including from AWS, Axonius, Barracuda, Checkpoint, Commvault, Cyera, Exclusive Networks, Microsoft, Nutanix, ServiceNow, Sophos, Varonis, Veeam and VMWare, as well as a Royal Warrant. –    Moved into the first of the two buildings acquired in FY25, adjacent to our existing Leatherhead office, adding capacity to our existing modern and inviting workspaces. –    The currently combined roles of CFO and COO will be split in FY27 to support our next phase of growth. Current CFO Andrew Holden will transition into the role of COO, and will stand down as CFO once a suitable replacement has been appointed. > **Sam Mudd, Chief Executive Officer, said:** > “This has been a year of adaptation and evolution against a more challenging market > backdrop. We focused on optimising our business for continued growth, segmenting > our private sector sales team to better align with our customers and vendors, > managing Microsoft’s transition of incentives to consumption-based and service- > led funding, and increasing our services portfolio and associated profits, in > line with our strategy. We maintained our share of wallet with existing customers, > as they invested in their IT requirements; continued to expand our client base > in both the public and private sectors, with significant framework wins in defence, > and private sector enterprise client wins in retail and the energy sector; while > continuing to drive momentum through the year. > “As Agentic AI and associated technologies continue to be deployed, our customers > need an integrated delivery model. This will almost always need a deep understanding > of the domain the customer operates in, and the associated data and services, > to help the customer adapt within the changing technological landscape. We are > well positioned, as a Microsoft Frontier Partner, to be the partner for our customers > on this journey. > “Our passionate, talented, dedicated and experienced staff remain central to our > success. Their ability to provide high-quality licensing advice, technical enablement > and support continues to differentiate us in the market and gives us confidence > as we look ahead. I would like to thank all our teams for their continued commitment > and hard work.” > “I want to thank Andrew for his five-year contribution to the Group as CFO and > as a Board member. We are pleased that we will be retaining his longstanding knowledge > of the business and deep operational experience as he transitions to the COO role.” **Outlook** Over the year, we have further positioned ourselves to be well placed to benefit from the structural demand drivers we see in our markets, including hybrid cloud computing, cybersecurity, services and AI. Our focus remains on implementing our growth strategy through our enablers: Our People, Our Vendors, and how we bring these together into Our Customer proposition. We are increasing our customer centricity, extending our strong vendor partnerships and leveraging the technical skills of our service delivery teams to drive our growth through this next technological phase. Our FY27 outlook remains consistent with that provided in our FY26 trading update on 24 March. The Board expects to deliver high single-digit to low double-digit percentage growth in GP, with operating profit broadly flat, as the Group absorbs c.£4.5m of cost normalisation relating to higher technology costs following the completion of strategic projects and a return to normal bonus levels. We have now passed the anniversary of the Microsoft incentive changes and the tough comparative from the private sector sales realignment, and have seen strong momentum continue into the early weeks of FY27, reinforcing our confidence in the year ahead. **Analyst and investor presentation** A presentation for sell-side analysts and investors will be held today at 09:00 ( BST) via a video webcast that can be accessed at: https://stream.brrmedia.co.uk/ broadcast/69aeeade3254580013ad35c5 A recording of the webcast will be available after the event at bytesplc.com. The announcement and presentation will be available at bytesplc.com from 07:00 and 09: 00 (BST), respectively. [BYIT News](https://www.directorstalkinterviews.com/wp-content/uploads/2026/05/BYIT-News.pdf) [Download](https://www.directorstalkinterviews.com/wp-content/uploads/2026/05/BYIT-News.pdf) Share on: