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Bytes Technology Group plc Reports 26.7% Increase in Gross Invoiced Income and 15.8% Rise in Earnings Per Share | Rateweb
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Bytes Technology Group plc Reports 26.7% Increase in Gross Invoiced Income and 15.8% Rise in Earnings Per Share

Bytes Technology Group plc (LSE: BYIT, JSE: BYI), has reported strong financial results for the year ending 29 February 2024. Despite challenging economic conditions, the company has continued its trajectory of double-digit growth, demonstrating resilience and strategic acumen. This article delves into the key financial metrics, operational achievements, and future outlook of Bytes Technology Group, providing a comprehensive analysis for investors and stakeholders.

Key Financial Metrics

Revenue and Gross Invoiced Income

Bytes Technology Group’s gross invoiced income (GII) for FY 2023/24 was £1,823.0 million, representing a 26.7% increase from the previous year’s £1,439.3 million. Revenue grew by 12.3%, reaching £207.0 million, up from £184.4 million in FY 2022/23. This significant growth was primarily driven by strategic contract wins in the public sector, notably with the NHS and HMRC, and sustained demand from corporate customers.

MetricFY 2023/24FY 2022/23% Change
Gross Invoiced Income£1,823.0m£1,439.3m26.7%
Gross Profit£145.8m£129.6m12.5%
Operating Profit£56.7m£50.9m11.4%
Adjusted Operating Profit£63.3m£56.4m12.2%
Profit After Tax£46.9m£40.4m16.1%
Earnings Per Share19.55p16.88p15.8%

Gross Profit and Margins

The gross profit increased by 12.5% to £145.8 million, up from £129.6 million in the previous year. The gross margin remained stable at 70.4%, marginally higher than the previous year’s 70.3%. The increase in gross profit per customer, from £21,800 to £24,400, underscores the company’s ability to enhance its profitability through efficient operations and customer engagement.

Operating Profit and Adjusted Operating Profit

Operating profit rose by 11.4% to £56.7 million, compared to £50.9 million in FY 2022/23. Adjusted operating profit (AOP), which excludes significant non-operational expenses, increased by 12.2% to £63.3 million. The AOP margin remained consistent at 43.4%, reflecting effective cost management and strategic investments in growth initiatives.

Profit After Tax and Earnings Per Share

Profit after tax surged by 16.1% to £46.9 million, up from £40.4 million in the previous year. This robust growth was facilitated by high levels of interest income, which offset the impact of the rise in the corporation tax rate from April 2023. Earnings per share (EPS) increased by 15.8%, reaching 19.55 pence, compared to 16.88 pence in FY 2022/23.

Cash Conversion and Closing Cash

The company’s cash conversion rate improved significantly to 104.3%, up from 84.3% in the previous year. This strong cash conversion reflects efficient cash collection processes and effective working capital management. Closing cash for the year stood at £88.8 million, a 21.6% increase from £73.0 million in FY 2022/23.

Dividend Proposals

Bytes Technology Group’s Board has proposed a final dividend of 6.0 pence per share, a 17.6% increase from the previous year’s 5.1 pence. Additionally, a special dividend of 8.7 pence per share has been proposed, reflecting a 16.0% increase. These dividends highlight the company’s strong financial performance and commitment to returning value to shareholders.

Key Dividend Dates

Dividend Announcement Date23 May 2024
AGM Date11 July 2024
Record Date19 July 2024
Payment Date2 August 2024

Operational Achievements

Customer Retention and Expansion

In FY 2023/24, 97% of the company’s gross profit was contributed by customers who traded with BTG in the previous year, demonstrating a high renewal rate of 109%. This underscores the company’s ability to retain and expand its customer base effectively.

Strategic Investments and Partnerships

The company has made significant strategic investments in personnel, internal systems, and new vendor accreditations. These investments are designed to drive future growth and assist customers in navigating complex IT environments. Bytes Technology Group’s strong partnership with Microsoft continues to provide exciting opportunities in areas such as Copilot, Azure Virtual Solutions, and Business Apps.

Awards and Recognitions

Bytes Software Services and Phoenix Software, subsidiaries of Bytes Technology Group, received multiple industry awards in 2023. These include:

  • Mimecast VAR Customer Excellence Partner of the Year
  • Forcepoint Partner Excellence Award
  • Rubrik Top Growth Partner of the Year
  • Checkpoint Cloud Partner of the Year

Additionally, both companies were named among the UK’s top 50 Best Workplaces 2024 in the Large Company category, reflecting their commitment to creating positive work environments.

Future Outlook

Despite operating in highly competitive markets and facing challenging macroeconomic conditions, Bytes Technology Group remains confident in its ability to achieve further growth in 2024/25. The company aims to leverage its strong customer relationships, vendor partnerships, and the technical and commercial skills of its teams to drive continued success.

Focus Areas for 2024/25

  • Cloud Adoption: The company will continue to focus on cloud adoption, backup, storage, and security solutions to meet growing customer demand.
  • Talent and Innovation: Investing in passionate, talented, and experienced staff to provide high-quality licensing advice, technical support, and service delivery.
  • Strategic Partnerships: Strengthening relationships with key vendors like Microsoft to capitalize on new technological opportunities.


Bytes Technology Group plc has demonstrated robust financial performance for FY 2023/24, marked by significant growth in revenue, profit, and cash conversion. The company’s strategic investments, strong customer retention, and industry recognition position it well for future success. As Bytes Technology Group continues to innovate and expand, it remains a compelling investment opportunity for shareholders, offering both stability and growth potential in the dynamic IT sector.