Bytes Technology Shares Climb: ‘Well-Poisitioned to Benefit From Structural Demand Drivers’

Bytes Technology Group (LON:BYIT) shares gained ground on Thursday after the company released a trading update for the first half of fiscal year 2026 (H1 FY26), revealing a resilient performance amid challenging market conditions.

Gross Invoiced Income is expected to be approximately £1.33 billion, with Gross Profit projected to be no less than £82 million and Operating Profit not less than £33 million.

The company said the figures “substantially align” with the expectations outlined in the AGM Statement published on July 2, 2025.

BYIT shares are up more than 3% on Thursday morning.

BTG's net cash position stands at roughly £82 million at the close of H1 FY26, after the disbursement of £41 million in final and special dividends and the repurchase of £1 million worth of shares as part of the £25 million buyback program announced in August 2025. Cash conversion during the first half typically leans towards the second half of the year, with robust cash conversion anticipated for the full fiscal year.

Bytes Technology Group's management remains optimistic about the company's growth prospects, even as they acknowledge the impact of strong comparative trading performance in the latter months of the previous financial year.

CEO Sam Mudd commented, “We delivered a resilient performance, improving through the period as we successfully settled into our new corporate sales structure, and I am grateful to our teams for their ongoing efforts.”

Mudd added that the company has a strong pipeline and expects continued momentum into the start of the second half, albeit they are “mindful that comparatives will be impacted by the particularly strong trading performance we saw in the last few months of the prior financial year.”

“We remain confident in our growth strategy and believe we are well-positioned to benefit from the structural demand drivers we see in our markets, including cloud computing, cyber security and AI,” concluded Mudd.