Bytes Technology Group plc (LSE: BYIT, JSE: BYI), a prominent software, security, and cloud services specialist in the UK, has announced its audited preliminary results for the fiscal year ending February 28, 2023. The company has achieved yet another year of robust performance, extending its track record of double-digit growth across key financial metrics.
Bytes Technology Group reported a significant increase in gross invoiced income (GII) for the year, reaching GBP1,439.3 million, a 19.1% rise from the previous year. This growth was evenly spread across software, hardware, and services, driven by sustained demand from corporate and public sector customers. The company’s revenue also witnessed substantial growth, rising by 26.5% to GBP184.4 million, compared to the restated figure of GBP145.8 million in the previous year.
The Group’s gross profit (GP) rose to GBP129.6 million, representing a 20.7% increase over the previous year’s GBP107.4 million. The gross margin percentage stood at 70.3%, slightly lower than the previous year’s 73.7%. Operating profit reached GBP50.9 million, reflecting a solid 20.6% growth compared to GBP42.2 million in the prior fiscal year.
Neil Murphy, Chief Executive Officer of Bytes Technology Group, expressed his delight at the positive set of results. He attributed the double-digit growth to contributions from all areas of the business, emphasizing the continued growth from both public sector and corporate clients. Murphy also highlighted the Group’s ability to increase market share by delivering a customer-oriented proposition and thanked the company’s dedicated employees for their exceptional customer service.
The Group witnessed an expansion in its customer base, with a total of 5,941 customers recorded during FY23, compared to 5,330 in the previous year. The growth in the customer base, combined with higher gross profit per customer, led to a 20.7% increase in GP to GBP129.6 million. Bytes Technology Group also reported a renewal rate of 116%, with 96% of GP generated from customers who traded with the company in the previous year.
Bytes Technology Group continued to experience strong customer demand driven by security, cloud adoption, digital transformation, hybrid data centers, and remote working solutions. The Group’s commitment to operational excellence was recognized as Bytes Software Services was named Microsoft Partner of the Year for Operational Excellence in 2022 out of over 3,900 partner entries worldwide. Additionally, Phoenix Software was awarded the Dell Technologies Public Sector Partner of the Year for 2022. Both businesses have also been certified as Great Places to Work.
Looking ahead, Bytes Technology Group remains optimistic about its future growth opportunities. While acknowledging ongoing macroeconomic challenges, the company is confident in its strategy of acquiring new customers, expanding its share of wallet, and leveraging strong vendor relationships to drive progress in the upcoming fiscal year.
In line with its dividend policy to distribute 40% of post-tax pre-exceptional earnings to shareholders, the Group proposed a final dividend of 5.1 pence per share. In addition, the Board announced a special dividend of 7.5 pence per share. The proposed dividends reflect a year-on-year increase of 21.4% and 21.0%, respectively, demonstrating the Group’s strong financial performance and cash generation.
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