**Summary**
Bytes Technology Group PLC, a leading software, security, AI, and cloud solutions provider in the UK and Ireland, reported its audited financial results for the year ended February 28, 2026. The company achieved significant growth in Gross Invoiced Income (GII), which increased by 11.5% to £2,341.0 million, driven by strong performance in software and services. Revenue grew by 1.6% to £220.5 million, and gross profit rose by 2.5% to £167.3 million. Operating profit, however, declined by 5.6% to £62.7 million due to slower gross profit growth and increased investment in people for future growth.
Key financial highlights include
GII growth of 11.5%, with software growing by 11.4% and services by 24.6%.
Gross profit increased by 2.5%, with a 4.6% growth in H2 after a 0.3% decline in H1, primarily due to the resolution of Microsoft incentive changes.
Public sector gross profit grew by 7.4%, while private sector gross profit marginally decreased by 0.3% due to sales structure refinements.
Strong cash position with £98.6 million in cash and 105% cash conversion, enabling £74 million in shareholder returns, including a £25 million share buyback.
Final dividend of 7.0 pence per share, resulting in a full-year dividend of 10.2 pence and a new £25 million share buyback program.
Operationally, the company implemented a new private sector sales structure to enhance customer centricity and medium-term growth, with 97% of gross profit coming from existing customers at a 99% renewal rate. Headcount grew by 6.9% to 1,331, with investments in sales and service delivery teams. The company also expanded its services gross profit through vendor funding and managed services.
Bytes Technology Group was ranked 14th in the FTs UKs Best Employers list and received multiple vendor and industry awards. The company moved into a new building in Leatherhead, adding capacity to its modern workspaces. The roles of CFO and COO were split, with Andrew Holden transitioning from CFO to COO and a new CFO to be appointed.
Looking ahead, the company is well-positioned to benefit from structural demand drivers in hybrid cloud computing, cybersecurity, services, and AI. The FY27 outlook anticipates high single-digit to low double-digit percentage growth in gross profit, with operating profit expected to remain flat due to cost normalization and bonus adjustments. Strong momentum is expected to continue into FY27, supported by the resolution of Microsoft incentive changes and sales realignment impacts.
| Financial Metric | Year Ended 28 Feb 2026 | Year Ended 28 Feb 2025 | Year-on-Year Change |
|---|---|---|---|
| Gross Invoiced Income (GII) | £2,341.0m | £2,099.8m | 11.5% |
| Revenue | £220.5m | £217.1m | 1.6% |
| Gross Profit (GP) | £167.3m | £163.3m | 2.5% |
| Operating Profit | £62.7m | £66.4m | (5.6%) |
| Cash | £98.6m | £113.1m | (12.8%) |
| Earnings per Share (pence) | 21.4 | 22.8 | (6.1%) |
| Final Dividend per Share (pence) | 7.0 | 6.9 | 1.4% |