Bytes thrives from demand for security and cloud with double-digit growth

The reseller’s FY23 results were propelled by both public sector and corporate clients

Bytes Technology Group has posted double-digit growth in its preliminary financial results for the year ended 28 February 2023 (FY23).

Revenues surged 26.5 per cent to £184.4m year on year despite ongoing uncertainty around the geopolitical outlook and macro-economic conditions.

Gross invoiced income (GII) climbed 19.1 per cent from £1.20bn in FY22 to £1.44bn for FY23.

"This performance was underpinned by continued growth from both our public sector and corporate clients, with customers showing a sustained appetite to invest in their IT requirements," said Bytes CEO, Neil Murphy.

"We have seen our gross profit increase by 20.7 per cent as we have expanded our customer base and increased our share of wallet among existing customers."

The Bytes customer base swelled from 5,330 customers in FY22 to 5,941 for the year ended 28 February 2023.

While 96 per cent of gross profit (FY23: £129.6m) came from customers that traded with Bytes last year, at a renewal rate of 116 per cent.

Murphy added that the business also benefited from its "wide-ranging product offering", which includes software, services and IT hardware solutions.

The Bytes boss continued to highlight what drove his company's solid performance, adding that customer appetite for security, cloud adoption, digital transformation, hybrid datacentres and remote working solutions have propped up Bytes' FY23 growth.

He said these investments increasingly take the form of annualised contracts and he remains confident in the group's growth prospects going forward.

"This reinforces our belief in the potential for future up-selling and cross-selling opportunities into existing clients. The double-digit growth in GII and GP reflects the buoyant and robust nature of IT spend across the UK and Ireland," Murphy continued.

Continued growth in public sector

Bytes said it saw encouraging double-digit growth for GII from both its public sector customers and corporate clients.

This is also reflected in the group's 18.5 per cent rise in software GII and 30.7 per cent jump in internal services GII during FY23, the two areas of the Bytes business that are key drivers in delivering our growth targets, the reseller said.

It added these have been supported by hardware growth of 33 per cent and external services growth of 22.8 per cent.

The double-digit growth across all sectors and product sets reflects the continued demand from customers to invest in resilient and efficient IT services, Bytes claimed.