Bytes Technology continues to trade 'strongly' in H1
By Michele Maatouk
Date: Wednesday 21 Sep 2022
(Sharecast News) - Bytes Technology said on Wednesday that it continued to trade "strongly" in the first half of the year, as it struck an upbeat note on its outlook.
In the half year to the end of August, the company - which provides IT software offerings and solutions - said it performed well across its key financial performance metrics, with year-on-year growth in gross invoiced income and gross profit of more than 20%. Meanwhile, adjusted operating profit growth was "comfortably in the high-teens", reflecting robust demand from the corporate and public sectors.
Bytes said it expects to report a strong cash balance of around £35m at the end of H1, after accounting for tax and £25m of dividends.
Cash conversion in the period reflect the accelerated adoption by customers of cloud usage or subscription-based products and a consequent increase in debtor days in the first half. However, the company said it was confident cash conversion will return to normal higher levels in the second half.
Chief executive Neil Murphy said: "We've made a very positive start to the year, extending our track record of double-digit growth we have delivered since our IPO in 2020. Despite the difficult economic conditions, corporate and public sector organisations continue to invest in their IT systems.
"We are well placed to capture these growth opportunities thanks to our strong partnerships with many of the world's leading software companies and high levels of customer service."
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