Bytes Technology Group Plc (BYIT) AI Stock Analysis

• Market Cap: £1.27B
• Dividend Yield: 1.73%
• Average Volume (3M): 603.41K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.77
• Revenue Growth: 2.11%
• EPS Growth: 17.44%
• Country: UK
• Employees: 1,057
• Sector: Technology
• Sector Strength: 66
• Industry: Software - Infrastructure
• EPS (TTM): 0.22
• Shares Outstanding: 241,097,210
• 10 Day Avg. Volume: 434,059
• 30 Day Avg. Volume: 603,406
• PEG Ratio: 1.39
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £581.25
• Price Target Upside: 10.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Bytes Technology Group Plc scores well due to its strong financial performance and positive corporate developments. While technical indicators show potential overbought conditions, the company's robust growth and insider confidence provide a compelling investment case.

Positive Factors

Earnings

Adj. EBIT was in line with the trading update and slightly ahead of consensus at £38.5mn, showing approximately 13.5% growth year over year.

Financial Performance

The recent trading update pointed to far better than expected trading, with Bytes shaking off macro and changing MSFT commission fears.

Financial Position

Cash flow dynamics were in line with prior years' seasonality, with the net cash position coming at £71.5m.

Negative Factors

Customer Retention

The customer renewal rate trended down.

Growth Forecast

Growth at Bytes has always been volatile and one good period doesn't necessarily de-risk the future.

Market Visibility

With MSFT changes needing to annualise and the UK macro remaining soft, current visibility remains low.

Bytes Technology Group Plc Business Overview & Revenue Model

Company Description

Bytes Technology Group plc offers software, IT security, hardware, and cloud services in the United Kingdom, rest of Europe, and internationally. The company sells servers, laptops, and other devices; various cloud-based and non-cloud-based licenses; and externally and internally provided training and consulting services. It also offers IT consulting and support services, including IT deployment and training. The company sells its products and services under the Bytes Software Services and Phoenix brands. It serves small- and medium-sized businesses, enterprises, and public sector organizations. The company was founded in 1982 and is headquartered in Leatherhead, the United Kingdom.

How the Company Makes Money

Bytes Technology Group makes money primarily through the resale of software licenses and IT solutions, earning revenue from the sale of third-party software, hardware, and IT services. The company has established strategic partnerships with leading technology vendors like Microsoft, Adobe, and Cisco, which enable it to offer a broad portfolio of products and services. Revenue streams include direct sales to clients, subscription-based services, and managed services. Additionally, Bytes Technology Group benefits from consulting and advisory services, helping organizations implement and optimize their technology investments. The company's ability to provide customized solutions and its focus on customer service are significant factors contributing to its financial success.

Bytes Technology Group Plc Financial Statement Overview

Summary

Bytes Technology Group Plc exhibits strong financial performance with impressive revenue and profit growth, robust margins, minimal leverage, and significant cash flow generation.

Income Statement

Bytes Technology Group Plc shows strong revenue growth with a Revenue Growth Rate of 12.24% in 2024 compared to 2023. The Gross Profit Margin is robust at 70.42%, indicating effective cost management. Net Profit Margin has improved to 22.63%, reflecting enhanced profitability. The EBIT Margin is solid at 27.38%, and the EBITDA Margin stands at 31.01%, showcasing strong operational performance.

Balance Sheet

The company maintains a healthy balance sheet with a low Debt-to-Equity Ratio of 0.02, indicating minimal leverage. Return on Equity is strong at 59.81%, demonstrating effective use of shareholder equity. The Equity Ratio of 20.63% suggests a moderate level of equity financing relative to assets.

Cash Flow

Bytes Technology Group Plc has demonstrated significant Free Cash Flow Growth of 51.36% in 2024, indicating robust cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 1.22, showing efficient conversion of profits into cash. The Free Cash Flow to Net Income Ratio is 1.19, highlighting strong cash flow relative to net earnings.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
207.02M	184.42M	145.84M	393.57M	373.10M
	Gross Profit
145.78M	149.39M	123.31M	86.89M	76.63M
	EBIT
56.71M	50.85M	42.13M	34.94M	29.83M
	EBITDA
64.20M	53.33M	44.74M	29.54M	32.41M
	Net Income Common Stockholders
46.85M	40.42M	32.85M	19.93M	24.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
88.84M	73.02M	67.12M	20.73M	47.36M
	Total Assets
379.72M	320.77M	283.57M	189.55M	187.19M
	Total Debt
1.74M	992.00K	1.18M	1.38M	1.60M
	Net Debt
-87.10M	-72.03M	-65.94M	-19.36M	-45.76M
	Total Liabilities
301.38M	259.27M	236.00M	172.81M	134.40M
	Stockholders Equity
78.34M	61.50M	47.57M	16.75M	52.78M
Cash Flow		Free Cash Flow
55.67M	36.79M	51.43M	30.62M	35.33M
	Operating Cash Flow
57.01M	38.15M	52.05M	31.22M	37.07M
	Investing Cash Flow
-4.36M	-1.36M	-617.00K	-17.28M	-1.75M
	Financing Cash Flow
-36.83M	-30.89M	-5.05M	-40.56M	-14.01M

Bytes Technology Group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 525.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BYIT, the sentiment is Positive. The current price of 525.5 is above the 20-day moving average (MA) of 486.48, above the 50-day MA of 464.36, and above the 200-day MA of 462.55, indicating a bullish trend. The MACD of 13.11 indicates Negative momentum. The RSI at 68.43 is Neutral, neither overbought nor oversold. The STOCH value of 90.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BYIT.

Bytes Technology Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYIT	73 Outperform	£1.27B	24.31	75.46%	1.73%	2.11%	17.44%
Sector *	60 Neutral	$10.94B	10.48	-7.04%	2.99%	7.55%	-12.20%
RM	43 Neutral	£82.71M	―	-22.14%	―	-14.88%	88.86%
SYN	40 Underperform	£3.19M	0.50	56.96%	―	-55.66%	―

Bytes Technology Group Plc Corporate Events

Bytes Technology Group Announces Total Voting Rights

Bytes Technology Group Plc announced its total voting rights, with an issued share capital comprising 241,068,265 ordinary voting shares. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how stakeholders manage their interests in the company.

Coronation Fund Managers Increases Stake in Bytes Technology Group

Coronation Fund Managers, based in Cape Town, South Africa, has increased its voting rights in Bytes Technology Group Plc to 11.02% from 10.06%. This acquisition of voting rights indicates a growing interest and investment in Bytes Technology Group, potentially impacting the company’s governance and strategic decisions.

Bytes Technology Group Achieves Record Financial Growth in FY25

Bytes Technology Group plc reported strong financial performance for the fiscal year ending February 2025, with double-digit growth in key metrics like gross invoiced income, which surpassed £2 billion for the first time. The company attributes its success to its robust business model, strategic vendor partnerships, and high demand for software, AI, and IT services from corporate and public sector clients. The integration of the new Microsoft incentive plan also positions BTG to capitalize on future growth opportunities.

Bytes Technology Group Announces Total Voting Rights

Bytes Technology Group Plc announced its total voting rights, with an issued share capital comprising 241,068,265 ordinary voting shares. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

Coronation Fund Managers Increases Stake in Bytes Technology Group

Coronation Fund Managers, based in Cape Town, South Africa, has increased its stake in Bytes Technology Group Plc to over 10% of the voting rights, up from just over 9%. This acquisition of voting rights solidifies Coronation Fund Managers’ influence within the company, potentially impacting strategic decisions and shareholder dynamics.

Bytes Technology Sees Increased Stake from Coronation Fund Managers

Bytes Technology Group PLC announced a change in major holdings, with Coronation Fund Managers increasing its stake in the company. As of February 5, 2025, Coronation Fund Managers holds 9.068% of the voting rights, up from the previous 8.959%. This adjustment in shareholding reflects a strategic move by Coronation Fund Managers and may influence Bytes Technology’s market positioning and stakeholder interests.

Bytes Technology Group Announces Total Voting Rights

Bytes Technology Group Plc announced its total voting rights, with an issued share capital of 241,029,355 ordinary voting shares, and no shares held in treasury. This information allows shareholders to determine their notification requirements under regulatory rules, impacting stakeholders’ transparency in shareholding interests.

Bytes Technology Leadership Buys Company Shares

Ross Paterson, an Independent Non-Executive Director at Bytes Technology Group, and Emma Paterson, a person closely associated with him, have purchased ordinary shares of the company. This transaction, conducted on the London Stock Exchange, highlights the confidence of the company’s leadership in its future prospects, potentially signaling a positive outlook for stakeholders.

Bytes Technology Group Announces Total Voting Rights Details

Bytes Technology Group plc, which is listed on both the London Stock Exchange and Johannesburg Stock Exchange, announced details regarding its total voting rights. The company’s issued share capital consists of 240,956,032 ordinary voting shares, with no shares held in treasury, meaning the total voting rights are also 240,956,032. This information assists shareholders in determining their notification obligations under regulatory rules.