Bytes to report earnings growth in inaugural results
This will be Bytes Technology Group’s first earnings report as a listed company
17 March 2021 - 15:55
byMudiwa Gavaza
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Bytes Technology Group, the UK firm recently spun out of Altron, has said it expects to report growth in profit of at least 10% for the year to end-February 2021.
Bytes, a software, security and cloud services specialist, is a former subsidiary of technology group, Altron. The company listed on the London Stock Exchange in December with secondary inward listing on the JSE after a demerger that created R13bn in value for Altron shareholders.
Altron had argued that the true value of the UK business was not fully reflected in its share price.
Since listing, the company’s market capitalisation has grown to R20.31bn.
On Wednesday, the company said it expects to report “comfortably, double-digit percentage gross profit growth and adjusted operating profit growth in the upper teens for the financial year as a whole, all of it organic”.
The company said its cash conversion has been strong for the period, resulting in a net cash position of £20.7m (R429m), ahead of management’s expectations.
Bytes said it performed well in the second half of the reporting period and expects to report results “somewhat ahead of market expectations” as a result.
In a note to shareholders, CEO Neil Murphy said: “We have continued to perform well in the second half of the year and we have positive momentum across the business. Our performance during the year was underpinned by our continued high levels of service to our existing customers and notable successes achieved in securing new contracts from customers in both the private and public sectors.”
In lunchtime trade on Wednesday, shares in Bytes — 25% higher since listing — were marginally firmer, up 0.46% at R85.
Bytes expects to report its earnings for the period in late May or early June.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Bytes to report earnings growth in inaugural results
This will be Bytes Technology Group’s first earnings report as a listed company
Bytes Technology Group, the UK firm recently spun out of Altron, has said it expects to report growth in profit of at least 10% for the year to end-February 2021.
Bytes, a software, security and cloud services specialist, is a former subsidiary of technology group, Altron. The company listed on the London Stock Exchange in December with secondary inward listing on the JSE after a demerger that created R13bn in value for Altron shareholders.
Altron had argued that the true value of the UK business was not fully reflected in its share price.
Since listing, the company’s market capitalisation has grown to R20.31bn.
On Wednesday, the company said it expects to report “comfortably, double-digit percentage gross profit growth and adjusted operating profit growth in the upper teens for the financial year as a whole, all of it organic”.
The company said its cash conversion has been strong for the period, resulting in a net cash position of £20.7m (R429m), ahead of management’s expectations.
Bytes said it performed well in the second half of the reporting period and expects to report results “somewhat ahead of market expectations” as a result.
In a note to shareholders, CEO Neil Murphy said: “We have continued to perform well in the second half of the year and we have positive momentum across the business. Our performance during the year was underpinned by our continued high levels of service to our existing customers and notable successes achieved in securing new contracts from customers in both the private and public sectors.”
In lunchtime trade on Wednesday, shares in Bytes — 25% higher since listing — were marginally firmer, up 0.46% at R85.
Bytes expects to report its earnings for the period in late May or early June.
gavazam@businesslive.co.za
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