14 September 2021
Bytes Technology Group plc
Half Year Trading Update and Retirement of Chief Financial Officer
Half Year Trading Update:
Bytes Technology Group ("Bytes" or "the Group"), one of the UK's leading software, security and cloud services specialists, is pleased to provide the following update on trading for its financial half year ended 31 August 2021 ("H1 FY22").
Bytes continued to trade strongly during the first half of the financial year, building on the robust maiden full year results reported in May 2021 and the positive start to the current financial year that we announced in July 2021. During H1 FY22 the Group delivered year-on-year low-teens percentage growth in gross profit and high-teens growth in adjusted operating profit, reflecting a performance which has seen corporate sector demand strengthening alongside continued growth from the public sector. Cash collections and conversion have remained very strong and our operating expenses have also benefitted from ongoing efficiencies.
Bytes expects to release its half year results for FY22 in late October 2021.
Neil Murphy, Chief Executive Officer ("CEO"), commented: "We are pleased with our first half performance, with the twin benefits of strengthening corporate demand and continued growth in public sector spend ensuring we closed out the period ahead of expectations. Whilst uncertainty remains due to the ongoing impact of the pandemic, we're confident that our deep understanding of customers' needs and strong relationships with vendors means we're well-positioned to enhance our market share and to continue delivering against our strategy."
Retirement of Chief Financial Officer:
Keith Richardson has notified the Board that after nearly three decades with the Company, he intends to retire as Chief Financial Officer ("CFO"). Andrew Holden, our Chief Operating Officer ("COO"), will assume leadership of our finance function as acting CFO of Bytes with immediate effect. Keith will work with Andrew as part of a managed handover period and controlled transition of responsibilities until 31 October 2021, when he will step down from the Board. The Board will provide an update regarding the longer-term CFO position in due course.
As announced on 22 July 2021, Andrew joined Bytes as COO on 1 June 2021 from JSE-listed technology company, Altron Limited, Bytes' former parent company, from which it demerged in 2020. Andrew has extensive experience in the ICT sector, having spent more than 27 years at Altron, the last 15 years in various senior leadership roles. His most recent position was that of COO which he held for five years (including a period of eight months where he held both the COO and CFO roles simultaneously). Andrew brings strong financial and commercial acumen, and a proven record of delivering insights into strategy implementation and executive decision-making.
Neil Murphy, CEO, said: "We would like to express our appreciation to Keith for his dedication and contribution to the Group over the past 27 years. Keith has been ever present since I joined Bytes many years ago and I will be sad to see him go. He has been an integral part of the business and I know the impact of his efforts will continue to be felt well into the future. We wish him the very best in his retirement.
I am delighted that Andrew has agreed to take on the duties of acting CFO in addition to his current role as COO. His significant and wide-ranging experience, coupled with his longstanding knowledge of Bytes, will serve the Group well as it continues on its growth trajectory."
Bytes Technology Group
Neil Murphy, Chief Executive Officer
Tel: +44 (0)1372 418 500
Tel: +44 (0) 20 3805 4822
About Bytes Technology Group plc:
Bytes is one of the UK's leading providers of IT software offerings and solutions, with a focus on cloud and security products. The Bytes Group enables effective and cost-efficient technology sourcing, adoption and management across software services, including in the areas of security and cloud. It aims to deliver the latest technology to a diverse and embedded non-consumer customer base and has a long track record of delivering strong financial performance.
The Company has a primary listing on the Main Market of the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.