Shares in Bytes Technology Group PLC (LSE:BYIT, JSE:BYI) fell 23% after the FTSE 250-listed software reseller warned on profits for the first half.
It said gross profit was now expected to be flat compared to last year and operating profit "marginally lower", followed by "more normalised growth" for both in the second half, having in May given full-year guidance for double-digit percentage gross profit growth and operating profits growth in the high single-digits.
Trading in the early months of 2025 was affected by a "challenging macroeconomic environment", it said, leading some customers, particularly in the corporate sector, to delay purchasing decisions.
The company has found it has also taken longer than expected to adjust to a shift in its corporate sales division "from a generalist model to specialised, customer-segment-focused teams", while changes to Microsoft incentive plans are also weighted more to the first half of the year.
Bytes said it will update full-year guidance at the interim results in October.
Chief executive Sam Mudd said: "In recent weeks, we've navigated a more challenging macro environment, compounded by the near-term effect of transforming our corporate sales team. While this has affected trading, our value proposition remains strong. We're seeing continued engagement, a healthy pipeline and remain confident that as these sales team changes bed in, we will be a stronger business, better aligned to meeting our customer needs and drive sustainable growth."