Shares in Bytes Technology Group climbed 8% to 433.8p after the software and cloud services reseller said trading had run ahead of expectations and lifted its full-year guidance.
The FTSE 250 group, one of the UK and Ireland's larger specialists in software, security, AI and cloud services, reported strong momentum in the six months to 31 August.
Gross invoiced income, the total value of sales it processes for customers, is estimated to have risen about 19% year on year.
Gross profit is expected to have grown roughly 18%, though operating profit advanced a more modest 6%.
Costs weigh on profit
The gap reflects a previously flagged normalisation of costs, including higher technology spending on strategic projects and a return to more typical bonus levels.
On the back of the first-half showing, the board now expects full-year gross profit growth in the low to mid teens, with operating profit up by a low to mid single-digit percentage.
Cash returned to investors
Bytes ended the half with net cash of about £68 million, after handing back £41.3 million to shareholders.
That comprised a £16.3 million final dividend and £25 million of share buybacks.
Cash conversion improved to around 45%, from 34% a year earlier, reflecting the group's usual second-half weighting.
Chief executive Sam Mudd said demand for software, cloud and security remained strong, with AI becoming a more meaningful driver of growth across its core markets.
She added that the group had continued to invest in its platforms and people to support future growth.
