Bytes delivers FY growth 'comfortably' in the double digits as it sheds light on Neil Murphy resignation

The group remains under Sam Mudd's leadership following February shake-up

Bytes Technology Group has announced robust performance for its financial year ended 29 February 2024 , despite the sudden resignation in February of its former CEO, Neil Murphy, over undisclosed trades.

In its FY24 trading update, BTG revealed significant growth, "comfortably in the double digits", in key metrics including gross profit and adjusted operating profit.

Gross invoiced income growth exceeded 25 per cent, indicating strong demand for software and IT services from corporate and public sector clients.

The company's cash position stood at approximately £89m at the year end, reflecting a cash conversion in line with the group's target of 100 per cent.

"Our board, management and staff should be very proud of the performance delivered last year and celebrating a record year for the group," said interim CEO, Sam Mudd (pictured).

"We remain committed to our successful strategy of delivering great customer service to our existing customers, acquiring new customers and increasing our share of their IT expenditure.

"This strategy is underpinned by our strong vendor relationships and the commercial skills of our people and means we are well-placed to capture the significant growth opportunities ahead of us."

New info on Murphy's departure

Neil Murphy's resignation came following a request for information from the Financial Conduct Authority (FCA) regarding undisclosed transactions, according to new statement by Bytes.

The FCA's request indicated potential unauthorised and undisclosed trading activities, prompting Murphy's immediate resignation.

Subsequent investigations revealed unauthorised trading of the company's ordinary shares on 66 trading days between January 2021 and November 2023, totaling 119 transactions.

Additional transactions conducted by Murphy on behalf of his wife were disclosed later, further highlighting the lack of transparency in his dealings.

Despite the CEO's resignation and the revelation of undisclosed trades, the market remains optimistic about BTG's future prospects.

The reseller said it is working closely with regulatory authorities to address the situation and ensure transparency and compliance in its operations.