Bytes Technology H1 Operating Profit Rises 6.6% on AI Demand

Bytes Technology Group reported a 6.6% increase in operating profit for the first half of its fiscal year. Demand for artificial intelligence, cloud infrastructure, and cybersecurity services bolstered these results. For the six months ended August 31, the company posted an operating profit of £35.3 million, up from £33.1 million in the same period last year, according to a company report.

The firm saw double-digit growth across its primary revenue streams, with total revenue rising 18.7% to £128.3 million. Gross invoiced income, a metric for IT service providers representing the total value of software and services billed to clients, grew 19.6% to reach £1.61 billion.

Strategic Expansion in Cybersecurity

To accelerate growth in specialized security, the company acquired cybersecurity services provider CyberOne earlier in October. The deal, valued at an initial £19.4 million, aims to deepen Bytes Technology’s capabilities in managed security and cyber resilience. These areas have become central to enterprise IT spending as businesses navigate complex digital threat environments.

Financial Outlook and Guidance

Looking ahead, the company reaffirmed its full-year expectations for gross profit growth in the low-to-mid-teens percentage range. Operating profit growth is forecasted in the low-to-mid-single digits. This target excludes the expected contribution from the newly acquired CyberOne business.

These projections show the firm's focus on balancing organic growth in cloud and AI services with targeted acquisitions. By expanding its managed security portfolio, Bytes Technology intends to capture a larger share of enterprise budgets dedicated to digital transformation and infrastructure hardening.