Bytes Technology sees FY in line, flat operating profit in 2027

(Sharecast News) - Bytes Technology said annual earnings would be in line with expectations after its performance strengthened in the second half but expected 2027 operating profit to be broadly flat on the back of higher costs after the completion of strategic projects. In a trading update for the 12 months to February 28, Bytes added that gross invoiced income growth was in double digits, with gross profit of £167m and operating profit of £62m.

Cash conversion exceeded 100%, with a year-end cash balance of over £98m.

The 2025-26 financial year was impacted by changes to Microsoft enterprise incentives and the phasing effects of the group's realignment to private sector sales. Gross profit grew 6.% year-on-year in January and February 2026 against a strong comparator.

"For full-year 2027, we expect high single-digit to low double-digit percentage growth in gross profit, with operating profit broadly flat as the group absorbs £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," Bytes said.

Reporting by Frank Prenesti for Sharecast.com

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