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Public sector sales increase the number of bytes in the financial year

Posted on by darion

Bytes Technology Group has released decent preliminary numbers for its latest fiscal year, giving its newly appointed CEO an opportunity to discuss the progress it’s made in the channel player market.

Sam Mudd was appointed chief executive earlier this month after an interim period. Already in her first comments on the financial year results, she was able to highlight double-digit increases in invoiced gross revenues, revenues and adjusted operating profit.

Invoiced gross income was £1,823 million, up 26.7% year-on-year; revenues increased by 12.3% to £207 million; and adjusted operating profit also rose 12.2% to £63.3m for the year ended February 29.

Contracts with the public sector, in particular the NHS and HMRC, helped to drive growth, and Bytes managed to increase revenues from existing customers and renew its business during the year.

During this period, the company also increased its headcount by 13.7% to ensure it was able to meet customer demands, and cut the ribbon on its new London office in March last year.

“I am very pleased to report another set of positive results for BTG, with adjusted operating profit growth of 12.2%, driven by contributions from all areas of our business,” Mudd said. “Despite the challenging economic environment last year, our customers continued to invest in their IT needs.”

It added that both gross billable income and gross profits increased “as we expand our customer base in both the public and corporate sectors and increase our share of wallet among existing customers.”

Relations with Microsoft

Mudd added that the company’s close relationship with Microsoft continues to bear fruit and that the company is in a strong position to benefit from the more widespread emergence of Copilot and Azure.

“The group has made strategic investments in staff, internal systems and new vendor accreditations to drive future growth and help our customers navigate the complexities of secure IT environments,” she said. “With continued demand for cloud, backup, storage and security solutions, these will be our key areas of focus in 2024/25.”

In closing, Mudd indicated that looking forward, the company will continue to generate growth. “Going forward, with our passionate, talented and experienced staff, we are well-positioned to continue to provide high-quality licensing advice, technical support and service delivery to meet the needs of our clients,” she said. “This will remain our defining USP.”

Mudd stepped in to take the reins at Bytes after previous director Neil Murphy resigned in February and notified the board that he had made a number of transactions in the company’s shares that were not disclosed to the company or the market, leading to a failure to comply with PDMR disclosure requirements.

In preliminary results, Bytes revealed that it had been investigating Murphy’s activities and was concerned about reputational damage following his departure. However, the company expected this risk to decrease as events moved into the past.

In comments accompanying the results, Mudd touched on the CEO changes that occurred as a result of Murphy’s departure.

“My appointment as CEO was confirmed in May 2024, after a difficult few months for the Group,” she said. “Throughout the period since Neil Murphy’s resignation, I have been extremely impressed by the commitment and professionalism of all our staff as they continue to focus on delivering our strategic priorities as we start 2024/25.”