S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Wednesday, Deutsche Bank (ETR:DBKGn) analysts downgraded Bytes Technology Group PLC (LON:BYIT:LN) stock rating from Buy to Hold, adjusting the price target to GBP5.32. The decision followed Bytes Technology’s fiscal year 2025 results, which matched market expectations previously outlined in its March trading update.
Bytes Technology reported a 15% year-over-year increase in gross invoiced income, reaching £2.1 billion. The company’s gross profit rose by 12% to £163.3 million, while earnings before interest and taxes (EBIT) grew by 17% to £66.4 million, slightly exceeding expectations by approximately 1%. EBIT as a percentage of gross profit was reported at 40.7%.
The company has also experienced significant headcount growth over the year, at 17.8%. Bytes Technology’s cash conversion rate stood at 113.8%, indicating robust cash generation from operations after accounting for capital expenditures. This financial strength enabled the company to easily cover additional capital expenditures incurred during the year.
In terms of expansion, Bytes Technology has broadened its regional footprint, opening new offices in Sunderland and Portsmouth. Additionally, the company acquired two buildings adjacent to its Leatherhead office to support further growth.
The group announced a final dividend per share (DPS) of 6.9p, which brought the total DPS for the year to 10.0p, representing a 15% increase from the prior year. A special DPS of 10.0p was also declared, marking a similar year-over-year rise. At the end of the fiscal year, Bytes Technology reported a cash position of £113.1 million with no debt.
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