Half Year Trading Update
H1 FY27 trading ahead of expectations; FY27 guidance upgraded to low-mid teens Gross Profit growth.
vs expectations: ahead
- Gross Invoiced Income growth c.19% (prior H1 FY27 vs prior year)
- Gross Profit growth c.18% (prior H1 FY27 vs prior year)
- Operating Profit growth c.6% (prior H1 FY27 vs prior year)
- Net cash position c.£68m
- Cash returned to shareholders £41.3m (prior FY26 dividend £16.3m and buyback £25.0m)
- Cash conversion 45% (prior 34% (H1 FY26))
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Bytes Technology Group, one of the UK and Ireland's leading software, security, AI and cloud services specialists, is pleased to provide the following update on trading for its financial half year ended 31 August 2026 ("H1 FY27").
The Group has traded ahead of expectations in the first half of FY27, continuing the momentum built from H2 FY26. Gross Invoiced Income for the period is estimated to increase by c.19% year-on-year, with Gross Profit estimated to increase by c.18% and Operating Profit by c.6%. The Operating Profit performance reflects the impact of cost normalisation previously communicated. This reflected higher technology costs linked to strategic projects and a return to more normalised bonus levels.
As a result of the strong first half performance, the Board now expects Gross Profit growth for the full year in the low to mid-teens, with low to mid single-digit Operating Profit growth.
BTG's net cash position at the end of H1 FY27 was c.£68m, after returning £41.3m to shareholders through the payment of the FY26 final dividend of £16.3m and £25.0m of share repurchases under the Group's buyback programme. Cash conversion for the first half was around 45% (H1 FY26: 34%), reflecting the Group's normal weighting towards the second half of the financial year.
Notice of Interim Results
BTG will publish its H1 FY27 results on 13 October 2026.
Sam Mudd, Chief Executive Officer, said:
"We are pleased with the positive momentum in the first half across both our private and public sector businesses. Customer demand for software, cloud and security solutions has remained strong, and AI is becoming a more meaningful driver of growth in our core business areas. During the period, we continued to invest in our technology platforms and our people to support future growth, enhance our capabilities and strengthen the quality of service we provide to customers. We remain confident in the Group's strategy and the strength of our customer and vendor relationships. As a result, we have upgraded our expectations for FY27."
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