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Bytes Technology sees flat operating profit in 2027, shares tank
(Sharecast News) - Shares in Bytes Technology slumped on Tuesday after the IT reseller said operating profit this year would be broadly flat on the back of higher costs. In a trading update for the 12 months to February 28, Bytes said that gross invoiced income growth was in double digits, with gross profit of £167m and operating profit of £62m.
Cash conversion exceeded 100%, with a year-end cash balance of over £98m.
The 2025-26 financial year was impacted by changes to Microsoft enterprise incentives and the phasing effects of the group's realignment to private sector sales. Gross profit grew 6% year-on-year in January and February 2026 against a strong comparator.
"For full-year 2027, we expect high single-digit to low double-digit percentage growth in gross profit, with operating profit broadly flat as the group absorbs £4.5m of cost normalisation, reflecting higher technology costs following the completion of strategic projects and a return to normal bonus levels, on top of continued headcount investment for growth," Bytes said.
Reporting by Frank Prenesti for Sharecast.com
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