Bytes aiming for December IPO after barnstorming H1

Software reseller set to list on the London and Johannesburg stock exchanges

Bytes Group has revealed plans to float on the London and Johannesburg stock exchanges, with CEO Neil Murphy telling CRN that the firm is aiming for a mid-December IPO.

The move would see Bytes demerged from its parent company Altron.

Bytes CEO Neil Murphy said in statement: "We are delighted to be taking these steps towards an expected flotation on the London Stock Exchange and Johannesburg Stock Exchange.

"After 22 years as an autonomous unit within a diversified technology services group, this marks an important chapter in the development of Bytes. This pivotal moment reflects the achievements of the past and also signals our belief in our ability to deliver on our strategy and gain share in an exciting and rapidly growing market.

We have traded strongly this year-to-date as we have helped our clients adapt to new working patterns and this has resulted in a positive financial performance and continued growth in our customer base.

"We are confident that Bytes is well positioned to continue to take advantage of the wider digital transformation agenda and deliver on its long-term strategy for growth."

Bytes said its gross invoiced income rocketed 36.5 per cent year on year to £505.4m during six-month period ending 31 August 2020.

Adjusted operating profit climbed 22.8 per cent to £20.5m in the same period.

Altron first revealed plans of the demerger and IPO in April to unlock shareholder value.

Murphy told CRN at the time that the parent company feels the true value of Bytes is not reflected in its own share price.

The listing would see Bytes shares traded on the main market of the London Stock Exchange, with a secondary inward listing on the main board of the Johannesburg Stock Exchange.

The listed company would be the parent of both Bytes Software Services and Phoenix Software, which it acquired in 2017.