Bytes shows its teeth in growth plans

Software specialist has eyes on acquisition as it aims for £180m turnover in coming year

Bytes Technology Group UK is fully focused on growing its software and services business after celebrating a strong FY 2014 performance.

For the financial year to 28 February 2015, revenues stood at £163m, and operating profit was £7m, it revealed.

The firm, which moved into new offices last year to house its expanding team, offloaded its Xerox business arm - Bytes Document Solutions (BDS) - last year, but managed to plug the hole left by the sale and keep growing, explained UK managing director Neil Murphy (pictured, right).

"When we sold BDS, we sold £17m worth of revenue and £750,000 worth of profit," he said. "So overall our growth was even greater. Disposing of BDS meant we could focus on software and services which is a profitable area for us. We are not going to be investing in hardware or diversifying too much from our core focus."

Murphy said Microsoft sales, which account for about 60 per cent of the business, had increased by around 30 per cent with significant increases in Azure and Office 365, and Bytes intends to grow that business further in FY2015.

Also putting in a strong performance was the firm's Symantec, VMware, Check Point, Citrix, Oracle, Mimecast and IBM software lines.

He added that in the year ahead he is aiming for 15 per cent growth in turnover and profit.

"Fifteen per cent is a reasonable growth figure. We are aiming to hit around £180m turnover," he said. "We will be investing more in complimentary services around software resale, and will also be looking for a suitable acquisition to help us achieve our plans."

Murphy said the firm was already in talks with potential acquisition targets, but would not elaborate further. He added that Bytes had recruited more than 20 new sales heads over the past year, and was on track to repeat the process this year.

"The only way to grow a business is to get more feet on the street," he said, adding that it is also in the second year of running its graduate recruitment scheme, which was launched with the help of former Apprentice contestant Lee McQueen, who is currently helping Softcat.

And the market is definitely in growth mode, Murphy said. "Generally speaking, the software resale market is competitive. Nearly all our key competitors are currently recruiting, so it is a growing area, which is positive for all of us."