Bytes reports 'high teens percentage growth' in adjusted operating profit for first half of financial year

CEO Neil Murphy puts growth down to 'strengthening corporate demand and continued growth in public sector spend'

Bytes Software Services has reported "strong" trading during the first half of its current financial year and has also announced the retirement of CFO Keith Richardson.

The reseller, ranked eighth on CRN's VAR 350 2021, announced increases in revenue and adjusted operating profit for its last full year, which saw the company IPO in December, and has continued to "trade strongly" for the first half of FY22 which ended on 31 August, it claims.

"During H1 FY22 the group delivered year-on-year low-teens percentage growth in gross profit and high-teens growth in adjusted operating profit, reflecting a performance which has seen corporate sector demand strengthening alongside continued growth from the public sector," the company update states.

"Cash collections and conversion have remained very strong and our operating expenses have also benefitted from ongoing efficiencies."

But after nearly three decades with the company, Bytes has announced that Richardson will step down from his position as CFO.

COO Andrew Holden will assume leadership of the finance function as acting CFO of Bytes with immediate effect and will work with Richardson as part of a managed handover period and controlled transition of responsibilities until 31 October, when he will step down from the board.

Bytes will then provide an update regarding the longer-term CFO position in due course.

"We are pleased with our first half performance, with the twin benefits of strengthening corporate demand and continued growth in public sector spend ensuring we closed out the period ahead of expectations," CEO Neil Murphy said.

"Whilst uncertainty remains due to the ongoing impact of the pandemic, we're confident that our deep understanding of customers' needs and strong relationships with vendors means we're well-positioned to enhance our market share and to continue delivering against our strategy.

"We would like to express our appreciation to Keith for his dedication and contribution to the group over the past 27 years. Keith has been ever present since I joined Bytes many years ago and I will be sad to see him go.

"He has been an integral part of the business and I know the impact of his efforts will continue to be felt well into the future."

Bytes expects to release its half year results for FY22 in late October.