Bytes Technology Group Plc (BYIT) AI Stock Analysis

• Market Cap: £962.86M
• Dividend Yield: 4.21%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.71
• Revenue Growth: 4.89%
• EPS Growth: 16.52%
• Country: UK
• Employees: 1,245
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.11
• Shares Outstanding: 242,411,600
• 10 Day Avg. Volume: 1,206,524
• 30 Day Avg. Volume: 1,133,566
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: £428.67
• Price Target Upside: 6.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: 407.00p ▲(1.04% Upside)

Bytes Technology Group's strong financial performance and strategic corporate actions are significant positives, contributing to a robust overall score. However, technical indicators suggest caution due to bearish momentum. The stock's reasonable valuation and attractive dividend yield further support its investment appeal.

Positive Factors

Cash flow

Strong cash flow dynamics are expected to lend support to the company.

Ecosystem strength

The fundamental strength of the Microsoft ecosystem likely means that growth can recover in the future.

Negative Factors

Corporate sector decisions

Delayed decisions are particularly in the corporate sector, where short-term momentum has been exacerbated by a re-alignment of sales teams.

Growth concerns

A disappointing AGM statement pointing to a collapse in growth is all the more difficult to absorb following the proximity of the upbeat messaging in May.

Investment sentiment

Confidence will take time to rebuild and until it does the shares are likely to trade below fair value.

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 Plc generates revenue through the sale of IT software, hardware, and related services. The company's primary revenue streams include licensing solutions, where it helps businesses acquire and manage software licenses from major vendors such as Microsoft, Adobe, and VMware. Additionally, Bytes earns revenue from IT security solutions, providing products and services that protect client data and infrastructure. The cloud services segment, which involves assisting clients in migrating to and managing cloud-based environments, also contributes significantly to the company's earnings. Strategic partnerships with leading technology vendors enable Bytes to offer a comprehensive portfolio of solutions and maintain competitive pricing, thus attracting a broad customer base across various industries.

Bytes Technology Group Plc Financial Statement Overview

Summary

Bytes Technology Group has shown strong financial performance with consistent revenue growth and high profitability margins. The company's minimal leverage risk and effective cash management further enhance its financial stability. Continued focus on maintaining profit margins and equity levels will be crucial.

Income Statement

Bytes Technology Group has demonstrated consistent revenue growth with a 4.88% increase in the latest year. The company maintains a strong gross profit margin of 75.2% and a robust net profit margin of 25.26%, indicating operational efficiency. Additionally, the EBIT margin of 30.6% and EBITDA margin of 35.72% reflect healthy profitability levels. Despite these strengths, monitoring the sustainability of profit margins amidst industry competition is crucial.

Balance Sheet

The company exhibits a solid equity base with a debt-to-equity ratio of 0.02, showcasing minimal leverage risk. The equity ratio stands at 21.54%, reflecting a balanced capital structure. Moreover, a return on equity of 55.94% highlights efficient use of shareholder funds to generate profits. However, maintaining or improving equity levels relative to total assets would enhance financial robustness.

Cash Flow

Bytes Technology Group has achieved a commendable free cash flow growth rate of 16.56%, driven by effective cash management. The operating cash flow to net income ratio of 1.37 indicates strong cash generation capability. The free cash flow to net income ratio of 1.18 further underlines effective conversion of profits into cash. Continued focus on sustaining cash flow growth will be beneficial.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	217.13M	207.02M	184.42M	145.84M	393.57M
Gross Profit	163.25M	145.78M	149.39M	123.31M	86.89M
EBITDA	77.55M	64.20M	53.33M	44.74M	29.54M
Net Income	54.84M	46.85M	40.42M	32.85M	19.93M
Balance Sheet
Total Assets	455.23M	379.72M	320.77M	283.57M	189.55M
Cash, Cash Equivalents and Short-Term Investments	113.08M	88.84M	73.02M	67.12M	20.73M
Total Debt	1.94M	1.74M	992.00K	1.18M	1.38M
Total Liabilities	357.19M	301.38M	259.27M	236.00M	172.81M
Stockholders Equity	98.04M	78.34M	61.50M	47.57M	16.75M
Cash Flow
Free Cash Flow	64.90M	55.67M	36.79M	51.43M	30.62M
Operating Cash Flow	74.97M	57.01M	38.15M	52.05M	31.22M
Investing Cash Flow	-10.07M	-4.36M	-1.36M	-617.00K	-17.28M
Financing Cash Flow	-40.66M	-36.83M	-30.89M	-5.05M	-40.56M

Bytes Technology Group Plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 402.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 402.8 is above the 20-day moving average (MA) of 377.15, above the 50-day MA of 379.98, and below the 200-day MA of 428.34, indicating a neutral trend. The MACD of 7.90 indicates Negative momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 87.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
FNX	78 Outperform	£211.55M	19.23	101.82%	4.05%	4.77%	15.03%
BYIT	75 Outperform	£962.86M	17.69	62.19%	4.21%	4.89%	16.52%
BOKU	74 Outperform	£679.40M	240.21	2.71%	―	16.77%	-64.34%
BKS	74 Outperform	£142.79M	61.54	6.33%	―	25.72%	290.00%
SPT	68 Neutral	£1.14B	199.39	1.92%	1.27%	2.34%	-45.30%
PAY	63 Neutral	£506.24M	27.30	17.90%	4.71%	1.42%	-46.02%
Sector *	61 Neutral	$36.05B	6.66	-10.61%	1.86%	8.68%	-8.81%

Bytes Technology Group Plc Corporate Events

Bytes Technology Group Launches £25 Million Share Repurchase Programme

Bytes Technology Group plc has announced a share repurchase programme, aiming to buy back up to £25 million of its ordinary shares. This move is part of the company’s capital allocation strategy to enhance growth and return excess capital to shareholders, supported by its strong financial position. The repurchase will be managed by Deutsche Numis and Peel Hunt, with completion expected in the second half of 2025, potentially impacting the company’s share capital and market positioning.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Seeks Block Listing for Employee Share Plan

Bytes Technology Group Plc has applied for a block listing of 450,000 ordinary shares on the London Stock Exchange, expected to be admitted on 25 July 2025. These shares are reserved for the BTG Sharesave Plan, allowing employee options to be exercised, and will align with existing shares, potentially impacting employee engagement and share liquidity.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

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 13.04% from a previous 12.11%. This acquisition of voting rights signifies a strengthened position for Coronation Fund Managers within the company, potentially impacting corporate governance and decision-making processes at Bytes Technology Group Plc.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £380.00 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Director Joins Kainos Group

Bytes Technology Group Plc announced that Shruthi Chindalur, a Non-Executive Director of the company, has been appointed to the same role at Kainos Group Plc, effective from 24 September 2025. This appointment includes joining several key committees at Kainos, potentially enhancing collaboration and strategic alignment between the two companies.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Plc Sees Change in Major Holdings

Bytes Technology Group Plc announced a change in major holdings as JPMorgan Asset Management Holdings Inc. adjusted its voting rights position in the company. The notification indicates JPMorgan’s voting rights have fallen below the minimum threshold, which could have implications for the company’s shareholder dynamics and influence in strategic decisions.

The most recent analyst rating on (GB:BYIT) stock is a Hold with a £500.00 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

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 12.11% from a previous 10.14%. This acquisition of additional voting rights signifies a strengthened position for Coronation in the company, potentially impacting the strategic decisions and future direction of Bytes Technology Group Plc.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Announces Dividend Currency Exchange Rates

Bytes Technology Group Plc announced the currency exchange rates for dividends payable to shareholders on its South African register. The final and special dividends, approved at the recent Annual General Meeting, will be paid in ZAR, with applicable withholding tax, reflecting the company’s commitment to returning value to its shareholders.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

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 10.144398% as of July 3, 2025. This acquisition of voting rights signifies a strategic move by Coronation Fund Managers, potentially impacting Bytes Technology Group’s shareholder dynamics and reflecting confidence in the company’s market position.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Plc Secures Shareholder Approval for All AGM Resolutions

Bytes Technology Group Plc announced that all resolutions at its Annual General Meeting on July 2, 2025, were passed by the required majority. This includes the approval of the 2025 Annual Report, directors’ remuneration, dividends, re-election of directors, and other corporate governance matters, reflecting strong shareholder support and confidence in the company’s strategic direction.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Navigates Macroeconomic Challenges with Strategic Sales Transition

Bytes Technology Group plc reported that its trading in the early months of the year has been affected by a challenging macroeconomic environment, leading to deferred customer buying decisions, particularly in the corporate sector. The company has transitioned its corporate sales division to specialized, customer-segment-focused teams, which, despite a longer adjustment period, is expected to drive sustainable growth in the latter half of the financial year. The impact of changes to Microsoft enterprise incentives is more pronounced in the first half, but the company anticipates normalized growth in gross and operating profits in the second half. BTG continues to invest in its sales teams to drive growth and will update its full-year guidance in October.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £515.00 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Expands Share Listing on LSE

Bytes Technology Group Plc has applied for the admission of 21,772 ordinary shares to the Official List of the Financial Conduct Authority and trading on the premium segment of the London Stock Exchange’s main market. This move is to satisfy the exercise of options under the BTG Deferred Bonus Plan, and the shares will align with the company’s existing issued shares. This development indicates the company’s strategic financial maneuvers to accommodate employee incentives, potentially enhancing stakeholder value and market confidence.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Enhances Employee Ownership with New Sharesave Scheme

Bytes Technology Group Plc announced the grant of options over 489,323 ordinary shares under its Sharesave Scheme, aimed at promoting employee share ownership. The options, exercisable at £4.18 per share from August 2028, were granted to employees, including key managerial personnel, indicating a strategic move to align employee interests with company performance.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Seeks Block Listing for Employee Share Plan

Bytes Technology Group plc has applied for a block listing of 325,000 ordinary shares on the London Stock Exchange, expected to be admitted on 1 July 2025. These shares are reserved under the BTG Performance Share Plan for employee options, aligning with the company’s strategy to incentivize its workforce and potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Executives Exercise Share Options

Bytes Technology Group Plc announced that its CEO, Sam Mudd, and Director of Group Finance, Paul Emms, exercised options over a significant number of ordinary shares under the BTG Performance Share Plan. Both executives sold portions of these shares to cover the tax liabilities arising from the exercises. This transaction highlights the company’s ongoing executive compensation strategy and may impact shareholder perceptions and market dynamics.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group’s Director Exercises and Sells Share Options

Bytes Technology Group Plc announced that Jack Watson, the Managing Director of Bytes Software Services Limited, exercised options over 46,460 ordinary shares and subsequently sold them. This transaction, conducted under the BTG Performance Share Plan, reflects the company’s adherence to regulatory requirements and could impact investor perceptions and market positioning.

The most recent analyst rating on (GB:BYIT) stock is a Hold with a £520.00 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology CFO Exercises and Sells Share Options

Bytes Technology Group Plc announced that its Chief Financial Officer, Andrew Holden, exercised options over a total of 107,015 ordinary shares under the company’s share plans. Following the exercise, Holden sold 50,664 shares to cover tax liabilities and exercise costs. This transaction reflects the company’s adherence to regulatory requirements and highlights the financial activities of its executive management, potentially impacting investor perceptions and market positioning.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Grants Share Options to Executives

Bytes Technology Group Plc has announced the granting of Performance Share Plan (PSP) and Deferred Share Bonus Plan (DBP) options to its directors and persons discharging managerial responsibilities. These grants are part of the company’s 2020 incentive plans, designed to align management interests with shareholder returns and company performance. The PSP options are contingent on specific performance conditions related to earnings per share growth and total shareholder return over a three-year period, while the DBP options are tied to annual bonus deferrals without additional performance conditions. This move is expected to strengthen the company’s management incentives and potentially enhance its market positioning by aligning executive rewards with long-term company performance.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Publishes 2025 Annual Report and Announces AGM Date

Bytes Technology Group Plc has released its 2025 Annual Report and Accounts and announced the date for its Annual General Meeting (AGM), scheduled for 2 July 2025. Shareholders are encouraged to submit proxy forms and questions ahead of the meeting, with key dates outlined for trading eligibility. The documents are accessible online and will be submitted for inspection to the Financial Conduct Authority.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Releases 2025 Annual Report and Announces AGM

Bytes Technology Group Plc has published its 2025 Annual Report and Accounts following the release of its audited results for the year ending 28 February 2025. The company also announced that its Annual General Meeting will be held on 2 July 2025. Shareholders are encouraged to participate by submitting proxy forms and questions ahead of the meeting. The documents are available on the company’s website and will be submitted to the Financial Conduct Authority for inspection. This announcement underscores the company’s commitment to transparency and shareholder engagement.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Coronation Fund Managers Reduces Stake in Bytes Technology Group Plc

Coronation Fund Managers, based in Cape Town, South Africa, has reduced its voting rights in Bytes Technology Group Plc from 10.986858% to 9.911191% as of May 20, 2025. This change in holdings may impact the company’s shareholder dynamics, reflecting a shift in investment strategy by a significant stakeholder.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £6.10 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.