olivLaw · European equity research
Bytes Technology Group plc BYIT.L
United Kingdom · London Stock Exchange · ISIN GB00BMH18Q19 · Vertical: Listed companies from United Kingdom
Bytes Technology Group is a UK and Ireland value-added reseller of software, security, IT services, cloud and hybrid infrastructure, serving private and public sector customers. In fiscal 2025/26 gross invoiced income grew 11.5% to 2.3 billion GBP, but operating profit fell as Microsoft incentive changes and a sales reorganisation weighed on profitability.
At the close of 05 Nov 2026, Bytes Technology Group plc (BYIT.L) stock was 4.47 GBP (−1.50% on the day), with market capitalisation 1.1 bn GBP, P/E 21.5 on diluted EPS of 0.21 GBP over the last 12 months, dividend yield 4.54%, beta 0.52, 52-week range 2.54–4.73 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 48.7
- neutral
- Bollinger (20, 2)
- 4.34 – 4.72
- in the lower half of the band · %B 0.35 · band width 8.4%
- SMA 50 / 200
- 4.38 / 3.69
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.04 / 0.06
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.4% | −0.6% | +1.1 pp | — |
| 3 months | +6.4% | −4.2% | +10.5 pp | — |
| 6 months | +42.8% | +4.3% | +38.5 pp | — |
| Year to date | +24.6% | +7.5% | +17.1 pp | — |
| 1 year | +20.1% | +9.9% | +10.2 pp | +5.8% |
| 3 years | −10.7% | +49.8% | −60.6 pp | +26.3% |
| 5 years | −20.9% | +42.8% | −63.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 67 percentile of its own 3-quarter history (min 14.6, median 19.1, max 29.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 207.0 m | 217.1 m | 220.6 m |
| Revenue YoY | unavailable | +4.9% | +1.6% |
| Net income | 46.9 m | 54.8 m | 51.3 m |
| Net income YoY | unavailable | +17.1% | −6.5% |
| Diluted EPS | 0.19 | 0.22 | 0.21 |
| Diluted EPS YoY | unavailable | +16.4% | −5.5% |
| net % | 22.6% | 25.3% | 23.3% |
| Free cash flow | 55.7 m | 68.6 m | 59.2 m |
Balance sheet & financial health
Fiscal year 2026 · 28 Feb 2026
- Cash
- 98.6 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 81.1 m GBP
- Total assets
- 474.1 m GBP
- Debt / equity
- unavailable
- Current ratio
- 1.05x
- ROE
- 57.2%
- ROA
- 11.0%
- FCF margin
- 26.9%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 207.0 m | 217.1 m | 220.6 m | esef· 02 Jun 2026verified |
| Cost of revenue | 61.2 m | 53.9 m | 53.3 m | esef· 02 Jun 2026verified |
| Gross profit | 145.8 m | 163.3 m | 167.3 m | esef· 02 Jun 2026verified |
| Operating income | 56.7 m | 66.4 m | 62.7 m | esef· 02 Jun 2026verified |
| Interest expense | 393.0 k | 291.0 k | 319.0 k | esef· 02 Jun 2026verified |
| Pre-tax income | 61.6 m | 74.6 m | 69.8 m | esef· 02 Jun 2026verified |
| Income tax | 14.7 m | 19.8 m | 18.6 m | esef· 02 Jun 2026verified |
| Net income | 46.9 m | 54.8 m | 51.3 m | esef· 02 Jun 2026verified |
| Diluted EPS | 0.19 | 0.22 | 0.21 | esef· 02 Jun 2026verified |
| Dividend per share | 0.15 | 0.18 | 0.20 | esef· 02 Jun 2026derived |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 88.8 m | 113.1 m | 98.6 m | esef· 02 Jun 2026verified |
| Receivables | 221.8 m | 268.5 m | 299.9 m | esef· 02 Jun 2026verified |
| Inventories | 60.0 k | 14.0 k | 0 | esef· 02 Jun 2026verified |
| Current assets | 322.5 m | 391.5 m | 408.1 m | esef· 02 Jun 2026verified |
| Property, plant & equipment, net | 8.5 m | 13.6 m | 14.1 m | esef· 02 Jun 2026verified |
| Total assets | 379.7 m | 455.2 m | 474.1 m | esef· 02 Jun 2026verified |
| Current liabilities | 297.9 m | 353.9 m | 387.2 m | esef· 02 Jun 2026verified |
| Total liabilities | 301.4 m | 357.2 m | 393.0 m | esef· 02 Jun 2026verified |
| Equity | 78.3 m | 98.0 m | 81.1 m | esef· 02 Jun 2026verified |
| Shares outstanding at year end | 239.6 m | 240.7 m | 239.6 m | esef· 02 Jun 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 57.0 m | 75.0 m | 61.0 m | esef· 02 Jun 2026verified |
| Capex | 1.3 m | 6.4 m | 1.8 m | esef· 02 Jun 2026verified |
| Free cash flow | 55.7 m ≈ | 68.6 m ≈ | 59.2 m ≈ | esef· 02 Jun 2026derived |
| Investing cash flow | -4.4 m | -10.1 m | -5.9 m | esef· 02 Jun 2026verified |
| Financing cash flow | -36.8 m | -40.7 m | -69.6 m | esef· 02 Jun 2026verified |
| Dividends paid | 36.6 m | 42.8 m | 48.6 m | esef· 02 Jun 2026verified |
| Share repurchases | — | 0 | 25.0 m | esef· 02 Jun 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 1.1 bn GBP
Key indicators
Coverage and freshness
Score by group
52% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 23.3% | 74 (vs peers) | 12% |
| FCF conversion · Quality | 115.5% | 100 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 196.7x | 100 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 1.1x | 21 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 21.5x | 28 (vs peers) | 20% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 5.5% | 69 (on a fixed band) | 16% |
| Shareholder yield (distributions) · Returns | 6.9% | 98 (on a fixed band) | 12% |
| Payout ratio (FCF) · Returns | 82.1% | 54 (on a fixed band) | 8% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet68/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality87/100 · 2/3 factors with a value
- Returns81/100 · 2/2 factors with a value
- Valuation46/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
BYTES TECHNOLOGY GROUP PLC (BYIT.L). Latest full fiscal year: 2026; data up to 2026-02-28.
Figures computed from the financial statements: revenue 220.6 m GBP in 2026; YoY growth 1.6%; net margin 23.3%; ROE 57.2%.
The estimated value range is 2.17–3.03 GBP per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 2.60 GBP, the price of 4.47 GBP leaves a potential of -41.9% (value / price − 1) and a margin of safety of -72.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 23.3%
- FCF conversion: 115.5%
- Interest coverage: 196.7x
- Shareholder yield (distributions): 6.9%
What contradicts it
- Current ratio: 1.1x
- P/E (TTM): 21.5x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| BYIT.LBytes Technology Group PLC | 1.1 bn | 21.5 | 57.2% | 23.3% | +1.6% | +29% / −17% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for BYIT.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 2.65 Total return -37% · Per year -37% | 4.68 Total return 10% · Per year 10% | 7.06 Total return 64% · Per year 64% |
| 3 years | 2.42 Total return -36% · Per year -14% | 4.83 Total return 23% · Per year 7% | 8.02 Total return 98% · Per year 26% |
| 5 years | 2.21 Total return -34% · Per year -8% | 4.99 Total return 36% · Per year 6% | 9.11 Total return 137% · Per year 19% |
- Exit P/E± 1.21
- Net margin± 0.85
- Annual revenue growth± 0.71
- Annual dilution± 0.07
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Bytes Technology Group is a UK and Ireland value-added reseller of software, security, IT services, cloud and hybrid infrastructure, serving private and public sector customers. In fiscal 2025/26 gross invoiced income grew 11.5% to 2.3 billion GBP, but operating profit fell as Microsoft incentive changes and a sales reorganisation weighed on profitability.
SWOT
Strengths
- Deep, long-standing vendor relationships, a customer base with very high retention and strong cash conversion.
- An asset-light model that supports high returns on capital and consistent distributions to shareholders.
- A strong internal culture with high employee and customer satisfaction scores supporting retention and repeat sales.
Weaknesses
- A significant share of gross profit depends on one vendor, Microsoft.
- Operating profit fell in fiscal 2025/26 even though gross invoiced income grew.
- The private sector sales transition took longer than anticipated and temporarily disrupted account relationships.
Opportunities
- Expanding managed services and consultancy in AI and cloud could build more recurring revenue.
- Growing non-Microsoft work could reduce dependence on a single vendor.
- Customers outsourcing IT to service providers could create additional demand for the company's services.
Threats
- Changes to vendor commercial models could significantly reduce incentive income.
- Competitive pressure and commoditisation of some products could erode margins.
- Economic and geopolitical uncertainty could lead customers to defer IT investment.
Risks
- Microsoft dependencehigh
Microsoft forms a significant part of gross profit, and changes to its incentive programmes can directly affect profitability.
- Margin pressurehigh
Competition, commoditisation and vendor commercial changes could reduce profit margins.
- Economic uncertaintymedium
Trade tensions and international conflicts could reduce customer IT spending and public sector funding.
- Cyber threatsmedium
Cyberattacks, including AI-assisted ones, could cause financial and reputational damage.
- Attracting and retaining talentlow
Generational and social change could make it harder to attract and keep employees and customers with evolving values.
Investment thesis
What would need to be true (bull case)
- Growth in gross invoiced income and a low market share could offer room to expand if managed services and AI gain traction.
- The asset-light model and strong cash conversion support consistent distributions to shareholders.
- High customer retention and strong employee scores could support repeat sales over the long term.
What would break the thesis
- Operating profit fell, so revenue growth has not yet translated into higher profitability.
- Dependence on Microsoft and its incentive programmes could magnify the impact of future changes.
- If customer IT budgets shrink or clients shift to in-house resources, growth could slow.
What to watch
- Trajectory of operating profit and gross margin2026/27
- Changes to Microsoft incentive programmes2026/27
- Appointment of a new chief financial officer2026
- Development of managed services and AI revenuenext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The group, formed from Bytes Software Services and Phoenix Software, earns gross profit from two main sources: margin and fees on resold software, and fees for consultancy and support services. Revenue comes from licences, security, AI, cloud and hybrid infrastructure, and the company describes itself as one of the largest UK Microsoft partners by revenue. The model is described as asset light with strong cash conversion.
Segments
Private sector sales
The private sector sales division was reorganised into three teams focused on customer size. Management said the transition took longer than expected, but the average enterprise deal size grew markedly during the year.
Public sector sales
Public sector sales teams are organised by government sector and were left unchanged. Activity is shaped by budget cycles and the March and April financial year end.
Market context
The company operates in the UK and Irish IT market, which it describes as vast and growing, supported by cloud migration, cybersecurity and AI tools. Its estimated share of the total addressable market is only 3%, suggesting room to grow, though growth still depends on customers' IT investment pace.
Trends
- Microsoft incentive changesheadwind
Changes to Microsoft enterprise incentive programmes reduced margin income in the first half of the year. If these changes persist, profitability could remain under pressure.
- Cloud migration and securitytailwind
Demand for cloud workload migration, cybersecurity and managed services supports growth in service revenue, according to the report.
- Artificial intelligencemixed
AI, including Microsoft Copilot, opens sales and service opportunities but also raises risks such as fewer entry-level roles at customers and deepfake-enabled fraud.
- Economic uncertaintymixed
Geopolitical tensions and macroeconomic pressures could cut customer IT budgets, although the company says its diverse client base has helped it maintain business.
Competitive position
The company competes with other UK resellers and IT integrators, and the report explicitly cites evolving competition as a risk to margins. Competitive pressure is compounded by changes in vendor commercial models.
Differentiation rests on independent software advisory, knowledge of public procurement routes and relationships with many vendors beyond Microsoft, including Check Point, Zscaler and Varonis.
- UK IT resellers and integrators
Resellers and integrators active in the same licence and services markets; the report does not name specific companies.
- Cloud and security software vendors
Vendors the company distributes that may also sell directly to customers.
- Managed services integrators
Firms offering managed services similar to those the company aims to expand.
- Distribution partners
Distributors competing in the resale segment that can change commercial terms.
News & filings
In the press
- LISPy things you can do in 64K bytes of coreHacker News · 25 Oct 2026 · EN
- Fintech bytes : 55ip , Vise , Syntax push tax - smart tools for RIAsSurge — GDELT DOC · 21 Oct 2026 · RO
- Retrofitting language models to operate over bytesNature · 07 Oct 2026 · EN
- Eight Bytes Are a NumberHacker News · 01 Oct 2026 · EN
- 1.1.1.1 now supports post-quantum DNSSEC, all 2,420 bytes of itCloudflare Blog · 10 Sept 2026 · EN
- Making a Python interpreter in 1024 bytesHacker News · 06 Sept 2026 · EN
- When random.bytes() runs but doesn't workHacker News · 02 Aug 2026 · EN
- AttoChess, a complete, playable chess program for 16-bit x86 DOS in 278 bytesHacker News · 16 Jul 2026 · EN
- How to pack ternary numbers in 8-bit bytesHacker News · 14 Jul 2026 · EN
- Count the Bytes, Not the FLOPsHacker News · 14 Jul 2026 · EN
- Optimizing Lua string literals to save 400 bytesHacker News · 13 Jul 2026 · EN
- Building a World Map with only 500 bytesSimon Willison Blog · 04 Jul 2026 · EN
- Can you build a recognizable World Map in under 500 bytes?Hacker News · 01 Jul 2026 · EN
- Let's Decode the Mystery Bytes [video]Hacker News · 24 Jun 2026 · EN
- Windows devs rerolled old code to save precious bytesThe Register · 17 Jun 2026 · RO
- Bible bytes: The Pope and Anthropic co-founder join forces on AI ethicsEuronews Next · 19 May 2026 · RO
- WriteUp: 16 Bytes of x86 that turn Matrix rain into soundHacker News · 17 May 2026 · EN
Annual reports (ESEF)
- Annual report 202602 Jun 2026
- Annual report 202602 Jun 2026
- Annual report 202529 May 2025
- Annual report 202529 May 2025
Sources
- [1] Annual report, fiscal year ended 2026-02-28 (ESEF) · SEC / Bytes Technology Group plc · 28 Feb 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.