Bytes Technology Group (BTG) has signalled to investors that its full-year numbers – available in May – will be solid, thanks to the business navigating through a challenging fiscal ’24.
The channel player issued a trading statement to provide an outline of how the year to 28 February has gone, with guidance on its key financial metrics. It indicated that it had been able to deliver double-digit growth in gross invoiced income, gross profit and operating profit. Bytes saw its gross invoiced income top £2bn for the first time, which puts the channel player among a select few that are operating at that level.
The trading update indicated that operating profit grew in the mid-to-high teens, and gross profit performed well in the second half, securing business in both private and public sectors, to deliver full-year growth of around 12%.
As well as having to deal with a challenging economic backdrop, with many customers hesitant about committing to spending, as major Microsoft partners, Bytes also had to navigate through the vendor’s partner programme changes that were ushered in at the start of the year.
Those changes included moving away from legacy incentives, retirement of the silver and gold competencies, and the introduction of a wave of fresh benefits that could be unlocked through gaining solution partner designations and by selling new product licences.
As a result, the full-year trading included two months of working with the updated Microsoft incentive plan, which Bytes indicated had now been incorporated into its growth plans for 2025. It added that it felt well-positioned to take advantage of the growth opportunities that were emerging as a result of those changes.
Sam Mudd, chief executive officer of Bytes, said that the firm continued to enhance its industry position. “These results demonstrate the positive trajectory of our business which benefits from an ever-evolving industry. Our unwavering focus on great customer service drives expansion in our customer base and an increasing share of wallet from our existing customers,” she said.
Through the year, the channel player reported continued demand for software, AI and services – and given its strong vendor relationships, the firm was able to meet those demands.
“BTG remains at the forefront of IT delivery, and we are highly engaged in areas such as AI adoption, cloud services and cyber security, which continue to be strong industry drivers,” said Mudd. “Our strategy is underpinned by our strong vendor relationships and the commercial acumen and dedication of our people, which means we are primed to capture the significant growth opportunities ahead and drive continued success.”
The reference to the business enjoying a strong second half echo the experiences of Computacenter, which published its FY24 numbers 18 March. After a challenging first half, the firm revealed that operating profit for the second half of 2024 was ahead of the equivalent period in 2023.
Mike Norris, CEO of Computacenter, said: “The second half was the most profitable in our history and was derived from our highest number of major customers.”
Softcat is publishing its full-year numbers on 19 March, which will add more details to the picture of how the leading resellers have performed over 2024.