Bytes Technology Group Plc · LSE:BYIT
Bytes Technology — Q2 2023 Earnings Presentation
16 slides from Bytes Technology's earnings presentation, Oct 26, 2022
Slide 1: Strong first half extending our track record of consistent double-digit growth
Strong first half extending our track record of consistent double-digit growth Financial results for the half year ended 31 August 2022 Bytes Technology Group plc Wednesday, 26 October 2022
Slide 2: Agenda
Agenda Introduction and overview Neil Murphy Financial review Andrew Holden Summary and outlook Neil Murphy Andrew Holden Chief Executive Officer Chief Financial Officer Neil Murphy Became CEO of BTG in 2020, having been MD of CFO since October 2021, having joined the the Group since 2000. More than
Slide 3: Positive start to the year with strong momentum going into the second half
Positive start to the year with strong momentum going into the second half H1 FY23 gross invoiced income H1 FY23 gross profit H1 FY23 adjusted operating profit £786.2m (+23.2%) £65.5m (+23.8%) £29.8m (+19.2%) H1 FY23 revenue H1 FY23 AOP/gross profit H1 FY23 earnings per share £93.5m (+27.9%) 45.5% (
Slide 4: Business benefitting from strong foundations
Business benefitting from strong foundations BTG provides world-class IT solutions and services, offering software, hardware and cloud services Employees Customers Vendors and partners • Growth in net number of employees of • Continuing our successful strategy of +13% to 871 acquiring new customers
Slide 5: High quality customer service at the centre of our business
High quality customer service at the centre of our business Culture Investment for the future Sales driven organisation ⚫ Collaborative, team-based culture drives ⚫ Net new employees ⚫ 53% of roles are sales, pre-sales, bids or sales performance and service − Technical skills up by 40 employees othe
Slide 6: Financial review
Financial review Andrew Holden CFO
Slide 7: Income statement
Income statement H1 FY23 H1 FY22 Gross invoiced income up by £148m to £786.2m £'m £'m % Change GII up 23.2% and, with growth spread across all areas of the business; software, services and hardware. Software Gross invoiced income (GII) 786.2 638.2 23.2% +23.2% remains the core focus, at 94% of total
Slide 8: Balance sheet
Balance sheet H1 FY23 H1 FY22 ⚫ The Group owns the Leatherhead and York offices, our £’m £’m smaller offices in Reading and Manchester are leased ASSETS Capital light ⚫ Intangible assets related to the acquisition of Security Property, plant and equipment 8.1 8.0 Partnerships (2011) and Phoenix Soft
Slide 9: Cash flow
Cash flow ⚫ Profits before adjustments of £27.3m H1 FY23 H1 FY22 Cash generated ⚫ Adjusted for depreciation, amortisation and share £'m £'m based payments totalling £3.1m from operations Cash generated from operations (0.2) 27.0 ⚫ Cash from operations of £30.4m before movement in working capital Pay
Slide 10: Interim dividend +20% to 2.4p per share
Interim dividend +20% to 2.4p per share Dividend policy Interim dividend Capital allocation Our dividend policy is to The Board is pleased to approve The Group’s capital allocation distribute 40% of post-tax pre- an interim dividend of 2.4 pence policy exceptional earnings to per share, payable in e
Slide 11: Summary and outlook
Summary and outlook Neil Murphy CEO
Slide 12: Proven strategy for growth
Proven strategy for growth Organic Inorganic Expand customer base Increase wallet share Focus on product mix Selective M&A ⚫ Increase the scale of our sales ⚫ Maintain customer service ⚫ Cloud ⚫ Track record of successful bolt- engine excellence ⚫ Services on acquisitions − Three rounds of graduate
Slide 13: Sustainability at the core of our strategy
Sustainability at the core of our strategy Environmental Social Governance ⚫ Progressing environmental targets under our ⚫ Investment in community training and ⚫ Strengthening our governance in line with Low Carbon Action Plan support FRC Review of Corporate Governance • Ongoing implementation of Sc
Slide 14: Summary
Summary ⚫ Positive start to the year, delivering double-digit growth ahead of the wider market ⚫ Benefitting from strong sector tailwinds as corporate and public sector customers continue to invest in technology ⚫ Good momentum in the adoption of cloud services and other subscription-based products,
Slide 15: Outlook
Outlook ⚫ Continued momentum going into the second half of the year ⚫ New ways of working have become entrenched and we believe the conditions we are operating in represent the new normal ⚫ Well-placed to capitalise on this opportunity thanks to our partnerships with the world’s leading vendors ⚫ De
Slide 16: Thank you
Thank you Any questions? www.bytesplc.com
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