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Investing.com -- Shares of Bytes Technology Group PLC (LSE:LON:BYIT) fell by 5.08% on Tuesday as the market responded to the company’s latest financial report.
Despite Bytes Technology exceeding £2 billion in gross invoiced income (GII) for the first time and posting a 15.2% increase primarily driven by software, investors reacted negatively to the news.
The company reported a gross profit (GP) growth of 12.0%, with corporate growth at 8.9% and public sector growth at 18.2%.
The figures also showed double-digit growth in software and services. Operating profit increased by 17.1%, with the operating profit to GP margin rising to 40.7%.
Additionally, the company announced a final ordinary dividend of 6.9p, leading to a full-year dividend of 10.0p, up 15.0%, along with a special dividend of 10.0p.
The balance sheet remained strong with a closing cash of £113 million and a cash conversion of 114%.
Operational highlights included a headcount growth of 17.8% to 1,245, expansion of physical offices, and the renewal of Microsoft (NASDAQ:MSFT) Azure Expert status.
Looking forward, Bytes Technology Group anticipates continued strong growth in the financial year 2025/26, with a focus on double-digit gross profit growth and high single-digit operating profit growth.
Despite the positive outlook and strong performance indicators, the market’s reaction suggests investor concerns, possibly around the challenges in the macroeconomic environment or the ability to sustain the growth momentum.
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