Bytes Technology Group’s (BTG) share price has dropped by 15 per cent on the back of a disappointing trading update.
The FTSE 250-listed firm is one of the UK and Ireland’s leading software, security, AI and cloud services specialists.
In the financial year to February 28th, the company reported gross profit of c.£167m and operating profit of c.£62m.
For FY27, Bytes said it expects to achieve high single-digit to low double-digit percentage growth in gross profit.
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However, it predicted operating profit would remain broadly flat as the group absorbs c.£4.5m of cost normalisation, reflecting higher technology costs following the completion of strategic projects and a return to normal bonus levels, on top of continued headcount investment for growth.
The cautious outlook spooked investors, sending BTG’s share price down 15 per cent from 300p to 255p.
From July 2026, the group will further align its go-to-market approach, with Bytes Software Services focused on the private sector and Phoenix Software on the public sector.
Sam Mudd, chief executive officer, said: “I am pleased to report FY26 results in line with expectations, with performance strengthening in the second half.
“We expect growth to further strengthen in FY27, while also continuing to invest in our capability and alignment to support increasingly distinct needs across our customer base.
“While I remain mindful of the ongoing macro uncertainty, we see customers continuing to adopt AI and invest in their cloud infrastructure, cyber security and digital workspaces to drive efficiency and competitiveness.
“BTG is well-positioned to support customers as AI moves from experimentation to deployment at scale. With our deep vendor partnerships, strong customer relationships, and ongoing investment in our employees, I am confident in the group’s ability to deliver sustainable growth.”
BTG’s share price stood at 255.2p at 3.15pm on Tuesday.