Company embarks on a share buyback program worth £25m to benefit shareholders and reduce share capital
Bytes Technology Group CEO Sam Mudd. Picture: SUPPLIED Bytes Technology Group has become the latest company to embark on a share buyback program me, announcing it will repurchase shares up to a value of £25m.said on Tuesday that after considering its strong balance sheet position and prevailing share price, the board believes it would be beneficial to return capital to shareholders through a further share repurchase.
The purpose of the programme is to reduce BTG’s share capital. The company conducted a similar programme in 2025. The group has entered into an agreement with Numis Securities and Peel Hunt to implement the programme in two equal tranches of up to £12.5m, and it is expected to be completed within the first half of the 2027 financial year.that revenue for the year to end-February grew 1.6% to £220.5m, while gross profit was 2.5% higher at £167.3m.
Gross invoiced income was 11.5% higher at £2.34bn, with 11.4% growth in software and 24.6% in services. The group said profit improved in the second half of the year as the one-year adverse effect of the Microsoft incentive changes ended in January, and the strategic refinement of the private sector sales structure to strengthen medium-term growth settled. Existing customers contributed 97% to profits, with £5m of gross profit contributed by new customers.
The group declared a final dividend of seven pence per share, resulting in a full-year dividend of 10.2p. CEO Sam Mudd said it had been a year of adaptation and evolution against a challenging market backdrop.
“We focused on optimising our business for continued growth, segmenting our private sector sales team to better align with our customers and vendors, managing Microsoft’s transition of incentives to consumption-based and service-led funding, and increasing our services portfolio and associated profits in line with our strategy,” Mudd said.
She said Bytes had maintained its share of wallet with existing customers as they invested in their IT requirements and continued to expand the client base in the public and private sectors, with significant framework wins in defence and private-sector enterprise client wins in retail and the energy sector.that the currently combined roles of CFO and COO will be split in the 2027 financial year to support the group’s next phase of growth. Current CFO Andrew Holden will transition into the role of COO and will stand down as CFO once a suitable replacement has been appointed, it said.
Mudd said as AI and associated technologies continue to be deployed, customers will need an integrated delivery model.
“This will almost always need a deep understanding of the domain the customer operates in and the associated data and services to help the customer adapt within the changing technological landscape. We are well positioned, as a Microsoft frontier partner, to be the partner for our customers on this journey,” she said. Bytes expects to deliver high single-digit to low double-digit percentage growth in gross profit in the 2027 financial year.
Operating profit is seen broadly flat, as the group absorbs about £4.5m of cost normalisation relating to higher technology costs after the completion of strategic projects and a return to normal bonus levels.
“We have now passed the anniversary of the Microsoft incentive changes and the tough comparison from the private sector sales realignment and have seen strong momentum continue into the early weeks of FY27, reinforcing our confidence in the year ahead,” Mudd said.
Bytes Technology Group Share Buyback Program £25M £220.5M £167.3M £2.34Bn 11.4% 24.6% Microsoft Private Sector Sales Team Customers And Vendors
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