Bytes Technology Group (LSE:BYIT) reported an 18.7% increase in revenue for the six months ended 31 August 2026, alongside growth in gross profit and gross invoiced income, as the software and IT services provider expanded its activities across public and private sector markets.
Gross invoiced income increased 19.6% compared with the corresponding period last year, while gross profit rose 17.8%. The company reported growth across its software, services and hardware operations, with public sector gross profit increasing 23.1% and private sector gross profit rising 14.6%.
Earnings per share increased 6.1% during the period, while the interim dividend was raised by 3.1%.
Bytes said its sector-focused sales structure contributed to performance across both customer segments. The group operates through its Bytes and Phoenix businesses, which primarily serve private and public sector customers, respectively.
Existing customers accounted for more than 98% of gross profit during the first half, with the company reporting a renewal rate of 115.7%. The figure reflects continued business from established customer relationships, including additional spending within the existing customer base.
Services income increased 41%, supported by demand for managed services and cyber security offerings. The company has been expanding its technical delivery capabilities to support customers requiring software management, security and infrastructure services.
Average gross profit per employee rose 13% compared with the prior-year period. Bytes attributed the increase partly to the contribution from employees recruited in earlier periods, as the group continued developing its sales and technical operations.
Following the reporting period, Bytes agreed to acquire CyberOne, a provider of managed cyber security services. The proposed transaction will add round-the-clock security monitoring and management capabilities to the group’s existing service portfolio.
The company expects the acquisition to contribute positively to earnings in FY28, although financial terms of the agreement were not included in the supplied update.
Bytes also reiterated its upgraded full-year guidance, citing demand across software, artificial intelligence, cyber security and IT infrastructure.
Management expects changes to Microsoft’s partner incentive arrangements to have a positive impact on the business. The group maintains commercial relationships with major technology providers, including Microsoft, through its software licensing and services operations.
