Bytes Technology Group (LON:BYIT) reported higher full-year gross invoice income and modest gross profit growth, while operating profit declined as Microsoft incentive changes and internal sales realignment weighed on performance.
Chief Executive Sam Mudd said the software solutions provider made “good strategic progress” during the year and entered fiscal 2027 with improved sales momentum
The company operates through two brands: Bytes, focused on the private sector, and Phoenix, focused on the public sector. “We’re confident that despite growth being temporarily impacted in H1, H2 has showed movement back to recovery, including strong growth with Microsoft as we annualize the incentive changes,” Mudd said. Profit Growth Slows as Microsoft Incentive Changes Weigh Andrew, the company’s chief financial officer, said gross invoice income rose 11.5%, driven by software and services sales. Gross profit increased 2.5% to £167.3 million, while operating profit fell 4.6% to £62.7 million, in line with guidance issued in October.
Public sector gross profit grew 7.4%, while private sector gross profit declined 0.3%. Andrew said private sector performance was affected by the segmentation of sales teams, which caused an adjustment period in the first half. Momentum improved in the second half, though against a tougher comparison.