Slide 1: Strong performance capitalising on continued demand
Strong performance capitalising on continued demand Financial results for the half year ended 31 August 2024 Tuesday, 15 October 2024
Slide 2: Agenda
Agenda Introduction and overview Sam Mudd Financial review Andrew Holden Summary and outlook Sam Mudd Q&A Sam Mudd Chief Executive Officer Andrew Holden Chief Financial Officer Financial results for the half year ended 31 August 2024 2
Slide 3: Introduction
Introduction Outstanding team delivers best-in-class performance ⚫ Continue to achieve strong results, despite a challenging economic backdrop in the corporate sector ⚫ Our core strength is our dedicated team with deep expertise across our products and vertical markets ⚫ Well placed to drive AI and
Slide 4: Financial highlights
Financial highlights Gross invoiced income Gross profit Operating profit OP/GP £1,230.2m £82.1m £35.6m 43.4% +13.7% +9.0% +16.3% H1 FY24 40.6% Cash Cash conversion Earnings per share £71.5m 56.2% 12.67p +38.3% H1 FY24 54.0% +19.5% Financial results for the half year ended 31 August 2024 4
Slide 5: Investing in people and capabilities
Investing in people and capabilities We’re expanding our teams to meet our customers’ evolving needs Headcount over the past half year We continue to invest in our people Sales staff 376 Sales support staff 240 ⚫ More sales talent, standing up new teams Employee Net numbers growth Technical staff 28
Slide 6: Capitalising on cybersecurity growth trends
Capitalising on cybersecurity growth trends A trusted adviser, delivering integrated cybersecurity solutions to our clients ⚫ Security pedigree and DNA in our business ⚫ Offering integrated cyber consultancy, solutions, managed services and insights across our client base ⚫ EMEA security growth of 9
Slide 7: Selected cybersecurity case studies
25 years of cybersecurity Selected case studies Shelter Howard Kennedy ⚫ Uncompromised approach to security solutions to ensure 24/7 IT ⚫ Full-service London-based law firm offering services globally infrastructure monitoring and protection ⚫ Cyber security and security of client data being a core a
Slide 8: Deepening our partnerships with key vendors
Deepening our partnerships with key vendors • Microsoft Azure Expert MSP • Check Point Elite Partner • 11 Microsoft Specialisations, including 4 in security • Certified Collaborative Support and Professional Services Partner • Leading EMEA FastTrack Ready Partner • Infinity Partner of the Year 2023
Slide 9: Financial review
Financial review ie) SA an! _ *
Slide 10: Continued strong performance
Continued strong performance ⚫ GII is up 13.7% driven by significant public sector contributions ⚫ Gross profit grew by 9.0%, less than our growth in GII, due to public sector contracts having initially lower margins ⚫ Employee costs up 4.2% against headcount growth of 6.9% ⚫ Capitalised £0.7 millio
Slide 11: Income analysis
Income analysis GII by sector GP by sector ⚫ Software sales make up 96.5% of GII and 91% of GP 30% 63% ⚫ Hardware sales have shrunk to now make up 1% of GII and 2% of GP ⚫ Services constitute 2.5% of GII and 7% of GP 2024/25 2024/25 ⚫ Public sector sales grew faster than corporate sales, and now rep
Slide 12: Focus on operating profit
Focus on operating profit A djustments (£’m) 1 Operating profit OP/GP Cash conversion (OP) A djusted operating profit A OP/GP Cash conversion (A OP) Share options 1 Adjustments include share-based payments and amortisation of intangibles Financial results for the half year ended 31 August 2024 12 2
Slide 13: Cash flow
Cash flow Cash flow (£’m) Operating profit and cash conversion Increase Decrease OP (£’m) Total Cash conversion (%) ⚫ Remain a capital-light business ⚫ Cash balance a healthy £71.5m after dividend payment of £35.4m ⚫ Cash conversion for the the half year of 56.2% shows our seasonality from H1 to H2
Slide 14: Capital allocation
Capital allocation Organic Shareholder Interim M&A growth returns dividend ⚫ Continue our proven strategy of ⚫ Dividend policy is to distribute ⚫ The Board is pleased to ⚫ Actively monitoring acquisition growing our customer base and between 40% and 50% of post-tax approve an interim dividend opport
Slide 15: Sustainability integral to our mission
Sustainability integral to our mission Environmental ⚫ SBTi validation for our near-term and net zero carbon reduction targets ⚫ Completed our annual CDP submission ⚫ Expanded our electric vehicle scheme across the Group ⚫ Installed solar panels at our York office, with further self-generating energ
Slide 16: Summary and outlook
Summary and outlook
Slide 17: A proven strategy for growth
A proven strategy for growth Grow wallet share Grow customer base ⚫ Maintain customer service excellence ⚫ Growing sales capacity with regular new sales intakes ⚫ Focus on depth and strength of our capabilities ⚫ Regional sales capacity, new offices opened and more planned for the future ⚫ Increase
Slide 18: Positioned to benefit from IT industry trends
Positioned to benefit from IT industry trends ⚫ Sustained growth supported by Microsoft’s expanding market share and our 30-year partnership ⚫ Strong vendor relationships enable us to evolve in line with programmatic changes ⚫ Continuing to transform as the big are getting bigger ⚫ Expanding our cus
Slide 19: Summary and outlook
Summary and outlook Structured and focused strategy to deliver for all our stakeholders Large addressable market, opportunities supported by growing global IT spend Strong strategic partnerships with vendors Our people’s expertise positions us well for further expansion Group benefits from strong ba
Slide 20: Q&A
@ BYTES | E20" Q&A www.bytesplc.com