Bytes GII jumps double digits in FY26

Private and public sector split to drive next phase of strategy

Bytes Technology Group has reported positive figures in a trading update for the financial year ended 28 February 2026.

For FY26, the firm reportedly delivered double-digit growth in gross invoiced income (GII).

GII stood at £2.1bn in FY25, following a 15.2 per cent year-on-year increase.

Gross profit for the financial year is expected to reach around £167m, up from £163.3m last year.

On the other hand, operating profit is projected to come in at approximately £62m, down from £66.4m the year prior.

Performance was impacted by changes to Microsoft enterprise incentives and the phasing effects of a private sector sales realignment.

During H1, corporate sector gross profit, which was adjusting to Bytes’ new sales structure introduced at the start of the year, fell 0.6 per cent, while software gross profit declined 3.5 per cent.

Performance strengthened in H2, with gross profit rising around six per cent year-on-year in January and February.

FY27 outlook

For FY27, the firm expects high single-digit to low double-digit growth in gross profit, while operating profit is set to remain flat as the group absorbs around £4.5m of cost normalisation.

This reflects higher technology costs following the completion of projects, a return to normal bonus levels and continued headcount investment.

From July 2026, the group will further align its go-to-market approach, with Bytes Software Services focused on the private sector and Phoenix Software on the public sector.

The transition will result in “a small number of colleagues” moving within the group.

“We expect growth to further strengthen in FY27, while also continuing to invest in our capability and alignment to support increasingly distinct needs across our customer base,” said Sam Mudd, CEO of Bytes.

“While I remain mindful of the ongoing macro uncertainty, we see customers continuing to adopt AI and invest in their cloud infrastructure, cybersecurity and digital workspaces to drive efficiency and competitiveness.”

The organisation will release its full-year results on 12 May.

The firm ranks number three on CRN’s Top VARs list.