Bytes to list on London Stock Exchange

Parent company Altron looks to realise Bytes' true value

Bytes Technology Group is set to demerge from its parent company Altron and list on the London Stock Exchange.

Speaking to CRN, Bytes boss Neil Murphy said that decision stems from Altron feeling that the true value of the UK-based reseller is not reflected in its share price.

He said that no timeframe has been placed on when the listing will happen, partly due to the current climate, but added that it could be as early as the autumn.

"People's lives and safety come before any of our other business challenges at a time like this," Murphy said. "But in a way this is good timing.

"It's a positive announcement and now we have a period of time to prepare for it in terms of the due diligence that potential investors will want to see, so that when market conditions do improve we're able to press the button on the floatation.

"It's anyone's guess at the moment as to when that will be."

Publicly listed resellers, including the likes of Softcat, Computacenter and CDW, have enjoyed a buoyant few years, with their growth far outpacing larger services businesses.

Murphy added that going public is the "natural next step" for Bytes.

"We've had compound annual growth of 24 per cent year on year over the last 10 years and there is no reason why that shouldn't continue," he said. "We've generated a really good track record so we're keen to carry on that journey.

"If we can achieve half of what [other listed resellers] have achieved then we will be very pleased.

"The thing about resellers is that we have all had to morph to become systems integrator and service providers; we provide a whole range of services so that our customers keep coming back to us."

In a move unrelated to the intention to go public, Bytes has also merged its subsidiary Bytes Security Partnerships into the main business.

Joint-MDs Dave Rawle and John Gilbertson remain with Bytes as directors .

Murphy said this move will help capitalise on the strength of both businesses.

"There are still a few bits and pieces to finish off but we're now one organisation and one enlarged salesforce," he said.

"Our security business on it's on is £100m a year turnover and the services we're providing around that we're now providing to the combined group's clients."