BYTES TECHNOLOGY GROUP PLC - Full Year Trading Update

Bytes Technology Group plc
(Incorporated in England and Wales)
(Registered number: 12935776)
LEI: 213800LA4DZLFBAC9O33
Share code: BYI
ISIN: GB00BMH18Q19

24 March 2026


                                       Bytes Technology Group plc

                                        Full Year Trading Update


Bytes Technology Group plc ("BTG" or "the Group"), one of the UK and Ireland's leading software,
security, AI and cloud services specialists, today publishes a trading update for the financial year ended
28 February 2026 ("FY26").


For FY26, BTG delivered results in line with the outlook provided in October 2025 with double-digit
gross invoiced income growth, gross profit of c.#167m and operating profit of c.#62m. Cash conversion
exceeded 100%, with a year-end cash balance of over #98m. During the year, the Group returned #74m
to shareholders, reflecting the Board's continued confidence in the business.


As previously reported, FY26 was impacted by changes to Microsoft enterprise incentives and the
phasing effects of the private sector sales realignment. Encouragingly, performance strengthened in
the second half, with gross profit growing c.6.% year-on-year in January and February 2026 against a
strong comparator.


For FY27, we expect high single-digit to low double-digit percentage growth in gross profit, with
operating profit broadly flat as the Group absorbs c.#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.[1]


From July 2026, the Group will further align its go-to-market approach, with Bytes Software Services
focused on the private sector, and Phoenix Software on the public sector. This is an important step in
our evolution towards a simpler, more scalable organisation, deepening sector expertise and enabling
our teams to deliver increasingly specialised support to customers. The transition will be carefully
sequenced and managed, with a small number of colleagues moving within the Group and customers
continuing to be supported throughout.


We look forward to sharing more detail in our full year results on 12 May 2026.


Sam Mudd, Chief Executive Officer, commented: "I am pleased to report FY26 results in line with
expectations, with performance strengthening in the second half. We expect growth to further
strengthen in FY27, while also continuing to invest in our capability and alignment to support
increasingly distinct needs across our customer base. While I remain mindful of the ongoing macro
uncertainty, we see customers continuing to adopt AI and invest in their cloud infrastructure, cyber
security and digital workspaces to drive efficiency and competitiveness. BTG is well-positioned to
support customers as AI moves from experimentation to deployment at scale. With our deep vendor
partnerships, strong customer relationships, and ongoing investment in our employees, I am confident
in the Group's ability to deliver sustainable growth."

Conference call today

A conference call for analysts and investors will be held today, Tuesday, 24 March 2026, at 08:15 (UK
time).


Dial-in details: UK Toll Free: 0800 279 9489; UK Local Toll: 0207 544 1375.


Password (if prompted): Quote 'Bytes Technology Group' when prompted by the operator.


A replay of the call will be available via the Company's website, www.bytesplc.com/ in due course.


[1] The increased technology cost is comprised of the amortisation of those assets in line with our accounting
policies and the reallocation of associated resource which was previously capitalised.


                                                 -Ends-
Enquiries:

Bytes Technology Group plc
Sam Mudd, Chief Executive Officer
Andrew Holden, Chief Financial Officer
James Zaremba, Investor Relations
Tel: +44 (0)1372 418 500
Email: IR@bytesplc.com

Sodali & Co
Elly Williamson
Tilly Abraham
Samuel Hillary
Tel: +44 (0)2072 501446
Email: btg@info.sodali.com




This announcement contains inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 of 16 April 2014 (MAR) as it forms part of domestic law by virtue of the
European Union (Withdrawal) Act 2018.

About Bytes Technology Group plc:

BTG is one of the UK and Ireland's leading providers of IT software offerings and solutions, with a focus
on AI, cloud and security products. The Company enables effective and cost-efficient technology
sourcing, adoption and management across software services, including in the areas of security, cloud
and AI solutions. 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.

Sponsor
Investec Bank Limited

Date: 24-03-2026 09:00:00

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