Bytes Technology Group (LSE:BYIT) reported double-digit year-on-year growth in both gross invoiced income and gross profit during the first four months of its current financial year, with operating profit running broadly flat against the same period a year earlier.
The UK and Ireland software, security, AI and cloud services specialist said growth was achieved across both private and public sector customers, with no divisional lag flagged.
The board described the performance as consistent with the outlook it provided at the full-year results announcement, characterising this as a reiteration of prior guidance rather than an upgrade.
The trading update was issued ahead of the company's Annual General Meeting, being held today.
Panmure Liberum repeats Buy rating
Panmure Liberum analyst Andrew Ripper, in a note, highlighted that Bytes is delivering double-digit gross profit growth year-to-date but higher IT and bonus costs have largely offset margin progress.
Ripper rates the share as a Buy, with a 475p price target, and highlights an imminent CFO appointment that should be confirmed before the half-year results as a near-term catalyst.
The note adds the £25m buyback is half-complete and should provide low-single-digit EPS accretion, while valuation sits around 13x EV/EBIT to CY26E, in line with Computacenter and below Softcat.
