SAM's the man for Bytes in robust FY13

Annual accounts show solid increases in sales and profit

VAR Bytes Technology Group enjoyed a robust 2013 fiscal year, with all its divisions contributing to a sales and profit increase.

For the year to 28 February, the Surrey-based reseller posted a cumulative turnover of £146.6m. The firm's core Software Services arm grew sales 17.2 per cent annually to £115.7m. Gross margins declined slightly, from 14.7 to 14 per cent, while operating profit nudged up by about five per cent to £3.1m.

The directors' report for the year chalks up the slight decrease in profitability to "changes in the mix of licensing sales and changes to some of the key vendor incentive programmes".

Bytes' print services Document Solutions unit saw FY13 revenue decrease slightly to £19.7m, but operating profit rose 7.1 per cent to £951,625. Security Partnerships – which Bytes bought in August 2011 – posted annual sales of £11.2m, with operating profit of £1.5m.

Bytes Software Services saw its cash pile grow by more than a fifth during the year, with shareholders' funds standing at £22.4m, as of year end. The directors' report for the year claims that the division enjoyed a 49 per cent year-on-year increase in sales of software asset management (SAM), with strong growth in annuity revenue.

"In the year ahead the company will continue to focus on its core competencies of software licensing and software asset management and there are a number of initiatives in place to enable the business to continue to grow in the year ahead," concludes the report.