Slide 1: Strong customer focus drives double-digit growth
Strong customer focus drives double-digit growth Financial results for the year ended 29 February 2024 Thursday, 23 May 2024
Slide 2: Agenda
Agenda Introduction and overview Sam Mudd Financial review Andrew Holden Sam Mudd Andrew Holden Chief Executive Officer Chief Financial Officer Summary and outlook Sam joined Phoenix Software in November Andrew joined BTG as COO on 1 June Sam Mudd 2003, having previously held senior roles at WordPer
Slide 3: Introductory remarks
Introductory remarks Best-in-class customer service delivered by an outstanding team ⚫ Strong and dedicated team with depth of expertise across our business ⚫ Embedded client relationships across the public and corporate sectors ⚫ Well placed to deliver innovation in an industry undergoing perpetual
Slide 4: Financial highlights
Financial highlights Gross invoiced income Gross profit A djusted operating profit Cash £1,823.0m £145.8m £63.3m £88.8m +26.7% +12.5% +12.2% FY23 £73.0m Earnings per share GP per customer A OP/Gross profit Cash conversion 19.55p £24.4k 43.4% 104.3% +15.8% +11.9% FY23 43.5% FY23 84.3% ⚫ GII increased
Slide 5: Proven track record of strong organic growth
Proven track record of strong organic growth Gross Invoiced Income Gross Profit A djusted Operating Profit Organic Organic Organic CAGR CAGR CAGR 27.1% 18.0% 25.2% Financial results for the year ended 29 February 2024 5
Slide 6: Growing our team and broadening our footprint
Growing our team and broadening our footprint Continuing to build our expertise to deliver growth and better service for our customers ⚫ Strong track record of attracting and retaining talent, especially in sales ⚫ Passed the 1,000 employee mark in 2023/24 ⚫ eNPS 71 (2022/23: 70) ⚫ Named among the U
Slide 7: Strength in diversification of client base
Strength in diversification of client base ⚫ 5,978 customers in 2023/24 ⚫ 97% of GP from existing customers, with renewal rate of 109% ⚫ 11.9% growth in gross profit per customer in 2023/24 to £24.4k ⚫ GII split 62/38 public vs corporate ⚫ No customer concentration risk, with the biggest client less
Slide 8: Delivering for our customers
Delivering for our customers Case studies from our broad and loyal customer base CFC (specialist insurance provider) University of Stirling ⚫ Bytes has worked with CFC for more than 5 years ⚫ Phoenix has worked with the university since 2019 ⚫ Initial focus was on bringing outsourced IT back in-hous
Slide 9: A key partner to global vendors
A key partner to global vendors • Microsoft Azure Expert MSP • 11 Microsoft Specialisations and Solution Partner for Microsoft Cloud Status • Leading EMEA FastTrack Ready Partner and multiple UK and Global Microsoft Partner of Year awards • 7+ year relationship • Achieved AWS MSP competency status i
Slide 10: Financial review
Financial review
Slide 11: Ongoing strong performance
Ongoing strong performance ⚫ GII is up 26.7% driven by significant public sector contributions. ⚫ Gross Profit grew by 12.5%, less than our growth in GII, due to public sector contracts having initially lower margins. The margins are expected to improve over the term of the contracts in line with ou
Slide 12: Segmental analysis
Segmental analysis Make up GP by GP by of GP sector vendor Software 89.7% Corporate 65% Microsoft Hardware 3.0% Public 35% Top 20 strategic Services internal 4.6% Rest Services external 2.6% ⚫ Software sales grew at 27.9% and now make up close to 95% of our GII and 90% of our gross profit ⚫ Sales of
Slide 13: Cash flow
Cash flow Cash flow A OP & operating cash flows by financial half year AOP Operating cash ⚫ Remain a capital light business ⚫ Cash balance a healthy £88.8m after payment of dividends of £36.6m ⚫ Cash conversion for the full year of 104% ⚫ Cash conversion continues to reflect the seasonality evident
Slide 14: Capital allocation policy
Capital allocation policy Capital Full year Special M&A allocation dividend dividend The Group’s capital allocation policy: ⚫ Dividend policy is to distribute Cloud Bridge Technologies Limited ⚫ Due to continued strong ⚫ Future growth c.40% of adjusted earnings to 25.1% interest acquired in April 20
Slide 15: Sustainability at our core
Sustainability at our core Environmental Social Governance ⚫ Complete measurement of BTG ⚫ Charity donations, sponsorships ⚫ Investigation related to emissions across all Scopes and fundraising for local and the resignation of former national charities CEO concluded ⚫ Submission of carbon reduction
Slide 16: Summary and outlook
_summary and outlook
Slide 17: Our continued strategy for growth
Our continued 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, more offices opened and planned ⚫ Increase our technical
Slide 18: Strength of our Microsoft partnership
Strength of our Microsoft partnership 30+ years of working with Microsoft Microsoft testimonial watch video ⚫ A deep embedded partnership ⚫ At the forefront of software, cloud technology, optimisation and delivery services ⚫ BTG is well placed to support our customers with access to new, innovative
Slide 19: Summary and outlook
Summary and outlook Tried and tested business model continues to deliver for 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 str
Slide 20: Q&A
@ BYTES | es" Q&A www.bytesplc.com