The recovery has continued at Bytes Technology Group plc after it upgraded guidance for its FY27 results.
Shares in Bytes – a software, security, AI and cloud services specialist based in Surrey – had climbed 13% today by 1pm to 454 pence, passing a market cap of £1 billion.
It has been a remarkable recovery from Bytes, which six months ago saw its share price drop as low as 253p after a disappointing trading update and the departure of MD Jack Watson after two decades ‘by mutual consent’.
Shares are now up 52% in six months, although they remain below the 2024 high water mark of 657p.
For the financial half-year ended 31st August 2026, the group traded ahead of expectations. Gross invoiced income for the period is estimated to increase by 19% year-on-year, with gross profit estimated to increase by 18% and operating profit by 6%.
BTG’s net cash position at the end of H1 FY27 was £68m, after returning £41.3m to shareholders through the payment of the FY26 final dividend of £16.3m and £25m of share repurchases under the group’s buyback programme.
It marks a return to form after a turbulent two years for Bytes, which in 2024 began investigating the shock resignation of its former CEO Neil Murphy after he was accused of unauthorised trading in the company’s shares.
The investigation ultimately found 119 unauthorised transactions on 66 trading days between January 2021 and November 2023 which sent the London-listed stock plummeting.
The firm rebounded under new CEO Sam Mudd (pictured) before the blip earlier this year – and is now moving in the right direction again.
“We are pleased with the positive momentum in the first half across both our private and public sector businesses,” said Mudd.
“Customer demand for software, cloud and security solutions has remained strong, and AI is becoming a more meaningful driver of growth in our core business areas.
“During the period, we continued to invest in our technology platforms and our people to support future growth, enhance our capabilities and strengthen the quality of service we provide to customers.
“We remain confident in the group’s strategy and the strength of our customer and vendor relationships. As a result, we have upgraded our expectations for FY27.”