Bytes Technology Group PLC (LSE:BYIT, JSE:BYI) saw its shares leap 4.5% higher to 392.60p on Wednesday morning following a positive trading update for the financial year just ended.
The software, security and cloud services firm predicted that gross profit and adjusted operating profit for the 12 months to 28 February 2023 will both rise by around 20% compared with the previous year, driven by “very strong demand” for software and IT services from corporate and public sector clients, despite the macroeconomic headwinds.
“With ongoing support from vendors, long-standing and strong relationships with our customers, and the hard work of our loyal employees, we remain confident in our continuing ability to deliver double-digit growth,” the company said.
As expected, cash conversion returned to higher levels in the second half to end the year at around 85%, and with a cash balance of around £73mln, it added.
"We are delighted with the performance delivered last year,” commented chief executive Neil Murphy in a statement. “Our successful strategy of acquiring new customers and then growing share of wallet, underpinned by strong vendor relationships and the commercial skills of our people, means we are well-placed to capture the significant growth opportunities ahead of us."
Bytes Technology plans to release its preliminary results for the full year on 23 May 2023.