# Bytes Technology Group Reports 17.8% Gross Profit Growth and Reaffirmed Outlook

- URL: https://stocks.freetheai.org/news/bytes-technology-group-reports-17-8-gross-profit-growth-and-reaffirmed-outlook-1daf63
- Published: 2026-10-13T06:00:03Z
- Category: earnings; sentiment: bullish; impact: medium
- Symbols: [LSE:BYIT](https://stocks.freetheai.org/symbols/LSE-BYIT)
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Bytes Technology Group plc (LSE: BYIT) delivered double-digit growth in the six months ended 31 August 2026, driven by strong performance across its software, hardware, and managed services divisions. Gross profit grew 17.8% year over year, supported by a 23.1% rise in public sector gross profit and a 14.6% increase in the private sector. Revenue climbed 18.7%, while operating profit rose 6.6% after absorbing planned cost normalisations, including restored bonus levels and share-based payments.

The company benefited from structural sales reorganisations launched in the prior fiscal year, which aligned operations to target customer segments more effectively. Existing clients generated 98.2% of gross profit during the period, with renewal rates reaching 115.7%. To broaden its managed cyber security offerings, the group also agreed to acquire CyberOne in October 2026, subject to regulatory approval. Meanwhile, cash conversion stood at 45.7%, and the board declared an interim dividend of 3.3p per share, marking a 3.1% increase from the prior year.

Looking ahead, management reaffirmed its upgraded full-year guidance issued in September 2026. The group expects full-year gross profit growth in the low to mid-teens percentage range, alongside low to mid single-digit operating profit growth. Investors will be observing the integration of CyberOne once national security clearances complete, as well as the impact of revised partner incentive structures introduced by Microsoft.

## Key points

- Gross profit for the six months ended 31 August 2026 grew 17.8% year over year, with public sector gross profit up 23.1% and private sector gross profit up 14.6%.
- Revenue rose 18.7% and operating profit increased 6.6% after absorbing roughly half of expected £4.5 million in cost normalisation.
- The company declared an interim dividend of 3.3p per share, an increase of 3.1% compared to the same period last year.
- Full-year guidance was reaffirmed, projecting low to mid-teens percentage growth in gross profit and low to mid single-digit growth in operating profit.
- The business agreed to acquire cyber security provider CyberOne in October 2026, subject to regulatory clearance.

## Questions and answers

### What were Bytes Technology Group's half-year financial results for 2026?

Bytes Technology Group plc reported a 17.8% increase in gross profit and an 18.7% rise in revenue for the six months ended 31 August 2026. Operating profit increased 6.6%, and the company raised its interim dividend by 3.1% to 3.3p per share.

### Did Bytes Technology Group update its full-year earnings guidance?

The company reiterated its upgraded full-year guidance, expecting gross profit to grow in the low to mid-teens percentage range and operating profit to increase in the low to mid single-digit percentage range.

### What acquisition did Bytes Technology Group announce?

Bytes Technology Group agreed to acquire CyberOne, an award-winning managed cyber security provider built on Microsoft technology. The transaction was signed in October 2026 and remains subject to UK regulatory clearance.