Bullish Bytes reveals expansion plans

VAR admits it is emulating rival Softcat with new academy scheme as it pledges further acquisitions and organic expansion

After moving into a new head office, Bytes Technology Group has unveiled ambitious growth plans that include further acquisitions and the launch of a Softcat-style sales academy.

The VAR, whose largest arm Bytes Software Services (BSS) is now Microsoft's largest UK partner, today cut the ribbon on its new Leatherhead headquarters, which has spare capacity for 145 more staff.

The group saw revenue for its year to the end of February rise nine per cent to £164m, with BSS generating £131m of the total. Net profit rocketed by 25 per cent to £7m.

Talking to CRN, Neil Murphy, who heads up both the group and BSS, revealed that both organic and acquisitive growth are on the agenda in the coming years.

"This office gives us a greater platform for further expansion for the years ahead," he said.

This month sees the first intake to the Bytes Academy as the firm embarks on increasing its Leatherhead headcount from 170 towards its 340 capacity. A dozen new BSS sales staff will come on board initially, Murphy said.

"It's a bit of an experiment for us but if it's successful, we will do it on a regular basis," said Murphy. "We'd like to emulate some of the success Softcat has had with its recruitment model, which I've been impressed with."

It is two and a half years since Bytes UK made its last acquisition, in the shape of Security Partnerships, which now forms one of its two other subsidiaries alongside Xerox reseller Bytes Document Solutions.

"We're still on the lookout for acquisitions," said Murphy (pictured below, left), who listed security, SaaS, managed services and software asset management as the key markets in which Bytes may splash its cash.

Microsoft's recent fees shake-up has dented partner profitability in some quarters but Murphy said the changes - which are designed to ensure its LSPs are focused on generating new business in the mid-market - had played into Bytes' hands.

"Seventy per cent of our [BSS's] business is Microsoft and if you're that Microsoft-centric, you have to fit in with their model, or lose out," he said. "We couldn't have grown the way we've grown unless we're working well under the new strategy. Microsoft is rewarding less if it's predictable business they're going to win anyway - and quite rightly."

Bytes is among the only resellers of its size not to touch hardware and Murphy vowed this would not change.

"If we're selling a software solution that has an appliance, like Check Point, we'll sell those but we don't want to get into shifting PCs and servers," he said. "We want to continue our focus on software and the minute that changes is the minute we go backwards."

The group currently has about 300 staff in total, with satellite offices in Reading, Crawley, York and Manchester.