Bytes Technology raises dividend as it looks to turn page on scandal
Scandal-stricken Bytes Technology Group has posted solid results due to demand for its IT services. It has also raised its dividend as it looks to woo investors after its former chief executive resigned amid misconduct revelations.
For the year ended February 2024, the British software company said revenue rose 12.3 per cent year on year to £207m, while adjusted operating profit climbed 12.2 per cent year on year to £63.3m.
Bytes has proposed a final dividend of six pence per share, an increase of 17.6 per cent since 2023, which takes the full-year dividend to 8.7 pence per share, an increase of 16 per cent.
Sam Mudd, chief executive officer, said: “Despite the challenging economic climate over the past year, our customers have continued to invest in their IT needs.
“Our gross invoiced income has grown by 26.7 per cent, and our gross profit has risen by 12.5 per cent, as we have expanded our client base in both the public and corporate sectors and increased our share of wallet among existing customers.
“Moving forward, through our passionate, talented, and experienced staff, we are well-positioned to continue providing high-quality licensing advice, technical support, and service delivery to meet our customers’ needs. This will remain our defining USP,” he added.
It comes as Bytes is trying to close the book on a misconduct scandal involving its long-standing former boss, Neil Murphy.
In February, Murphy announced he was stepping down after it emerged that he failed to disclose several trades he had made in the company’s shares.
An investigation found that a total of 119 unauthorised transactions took place on 66 trading days between January 2021 and November 2023, sending the London-listed stock plummeting.
But Bytes has since rebounded and shares are up nearly 16 per cent over the past month due to “very strong demand” for software and IT Services from both corporate and public sector clients.