Bytes Technology lifts FY outlook after better-than-expected H1

(Sharecast News) - Bytes Technology lifted its FY27 outlook on Thursday following a better-than-expected performance in the first half of the year. In an update for the year to the end of August, the software, security, AI and cloud services specialist said the momentum from the second half of 2026 had carried over into the first half of FY27.

Gross invoiced income for the period was estimated to have increased by around 19% year-on-year, with gross profit up around 18% and operating profit 6% higher. Bytes said the operating profit performance reflects the impact of cost normalisation previously communicated.

"This reflected higher technology costs linked to strategic projects and a return to more normalised bonus levels," it said.

As a result of its strong first-half performance, Bytes now expects full-year gross profit growth in the low to mid-teens, with low to mid single-digit operating profit growth.

Chief executive Sam Mudd said: "We are pleased with the positive momentum in the first half across both our private and public sector businesses. Customer demand for software, cloud and security solutions has remained strong, and AI is becoming a more meaningful driver of growth in our core business areas.

"During the period, we continued to invest in our technology platforms and our people to support future growth, enhance our capabilities and strengthen the quality of service we provide to customers. We remain confident in the group's strategy and the strength of our customer and vendor relationships. As a result, we have upgraded our expectations for FY27."

At 0813 BST, the shares were up 6.9% at 429.60p.

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