Bytes Technology H1 trading 'substantially in line' with expectations

(Sharecast News) - Software and security firm Bytes Technology said on Thursday that it had delivered "a resilient performance" in the six months ended 31 August, with trading "substantially in line" with expectations. Gross invoiced income was expected to be roughly £1.33bn, while gross profits were seen at no less than £82m, and operating profits were pegged to be at least £33m.

Bytes' net cash position at the end of the first half was approximately £82m, after paying £41m of final and special dividends and purchasing £1m shares in the period as part of its £25m repurchase programme. Cash conversion in H1 was said to reflect Bytes' normal weighting to the second half, with strong cash conversion expected for the full year.

The FTSE 250-listed group also cautioned that although it had "a strong pipeline" going into the second half, it remained mindful that comparatives would be impacted by "the particularly strong trading performance" it experienced in the last few months of the prior financial year.

Chief executive Sam Mudd said: "We delivered a resilient performance, improving through the period as we successfully settled into our new corporate sales structure, and I am grateful to our teams for their ongoing efforts.

"We remain confident in our growth strategy and believe we are well-positioned to benefit from the structural demand drivers we see in our markets, including cloud computing, cyber security and AI."

Reporting by Iain Gilbert at Sharecast.com