Slide 1: Results for the half year ended 31 August 2025
Results for the half year ended 31 August 2025 Tuesday, 14 October 2025
Slide 2: Agenda
Agenda Introduction and overview Sam Mudd Financial review Andrew Holden Strategic review and outlook Sam Mudd Sam Mudd | Chief Executive Officer Andrew Holden | Chief Financial Officer Q&A Read the full biographies on our website. Financial results for the half year ended 31 August 2025 2
Slide 3: Introduction
Introduction Resilient performance, evolving the business for continued growth ⚫ Our new corporate sales structure, which resulted in an adjustment period and affected the phasing of our growth, has settled ⚫ Effectively managing through the impact from reduced Microsoft Enterprise incentives ⚫ Cont
Slide 4: Financial highlights
Financial highlights Gross invoiced income 1 Gross profit Operating profit Earnings per share £1,342m £82.4m £33.1m 12.0p +9.1% +0.4% -7.0% -5.1% Net cash Cash conversion 2 LTM cash conversion 2 Interim dividend 3 £82.3m 34.4% 104.7% 3.2p +15.1% H1 FY25 56.2% H1 FY25 112.6% +3.2% 1 GII is a non-IFRS
Slide 5: Financial review
@ BIG Financial review
Slide 6: Resilient performance
Resilient performance ⚫ GII is up 9.1% with balanced growth across segments ⚫ Gross profit grew by 0.4%, less than our growth in GII, due to Microsoft Enterprise rebates in public sector and the transition to CSP in corporate (where BTG invoices the customer) from EA (where MSFT invoices and BTG onl
Slide 7: Income analysis
Income analysis GII by sector GP by sector ⚫ Public sector and corporate sales grew broadly in line 30% 62% ⚫ Public sector delivers relatively lower GP/GII due to the billing arrangements of enterprise agreements 2025/26 2025/26 ⚫ Services margin expansion driven by mix and cost efficiencies ⚫ Micr
Slide 8: Cash flow
Cash flow Cash flow (£’m) Operating profit and cash conversion Increase Decrease OP (£’m) Total Cash conversion (%) ⚫ Remains a capital-light business ⚫ Cash balance a healthy £82.3m after dividend payment of £41.0m and £1.1m shares acquired ⚫ Cash conversion for the half year of 34.4% shows our sea
Slide 9: Capital allocation hierarchy
Capital allocation hierarchy Organic growth Dividends Return of M&A excess cash ⚫ Continue our proven strategy of ⚫ Dividend policy is to distribute growing our customer base and 40% to 50% of post-tax ⚫ Actively monitoring acquisition wallet share with our clients ⚫ £25m share repurchase programme
Slide 10: Summary and outlook
@BIG Summary and outlook
Slide 11: Measured investment in people and capabilities
Measured investment in people and capabilities We’re expanding our teams to meet our customers’ evolving needs Headcount for the year 1 Sales staff 313 ⚫ Measured investment across sales, support, technical and Sales support staff 362 Technical delivery staff 325 operational capabilities through new
Slide 12: Our sales segmentation
Our sales segmentation W hat have we done? W hy did we do it? W hat impact has it had? Strategically realigned our corporate To improve our customer proposition by Temporarily affected the phasing of growth. sales team at the start of the year, from a enhancing account management, vendor ⚫ Strong pi
Slide 13: Microsoft incentives update
Microsoft incentives update W hat were the incentives changes? W hat was our plan to address the changes? From 1 Jan 2025 Microsoft’s partner incentives were: Accelerate the ongoing transition to CSP for corporate customers • significantly reduced for Enterprise Agreements (EAs) for Corporate Accele
Slide 14: Our strategy for growth
Our strategy for growth Our sources of growth W here we invest Grow both wallet share and customer base Growing sales capacity with regular new sales intakes Market share still <4% of estimated £82bn TAM, which continues to grow Increasing our technical capabilities 6,000 out of 42,000 addressable c
Slide 15: The growing role of services
The growing role of services W hat do we currently do How services fit into a customer journey – illustrative Microsoft Cloud example Our services gross profit are roughly: ⚫ one-third Professional project based ⚫ two-thirds Managed and recurring Our customer is generally the IT department We sell s
Slide 16: 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 Continued expansion of technical service delivery offerings Group benefits from strong balan
Slide 17: Q&A
@ BIG Bytes Technology Group
Slide 18: Sustainability integral to our mission
Sustainability integral to our mission Environmental ⚫ GHG emissions methodology improvement ⚫ Constituent of the FTSE4Good Index ⚫ Rollout of carbon literacy training, which will continue through FY26 ⚫ Solar panels at York produced 71,500kWh from installation in FY25 ⚫ ISS ESG Corporate Rating sco