Bytes Technology Group plc announces interim dividend of 3.1 pence per share

DividendMax Ltd.

Bytes Technology Group plc announces interim dividend of 3.1 pence per share

Bytes Technology Group's dividend policy is to distribute 40-50% of post-tax pre-exceptional earnings to shareholders. Accordingly, their Board declared a gross interim dividend of 3.1 pence per share. The aggregate amount of the interim dividend expected to be paid out of retained earnings at 31 August 2024, but not recognised as a liability at the end of the half year, is £7.5 million. 

Other financial highlights include: 

- GII increased by 13.7% to £1,230.2 million (H1 FY24 : £1,081.6 million), primarily driven by software. There continued to be a strong contribution from the public sector and the large prior year contract wins from NHS & HMRC have seen further growth.  

-  Revenue reduced by 2.9% to £105.5 million (H1 FY24 : £108.7 million)  primarily due to a decrease in hardware GII (all of which is booked as revenue) and which exceeded the growth in software GP (where only the GP is included in revenue rather than the full GII). This has resulted in an increase in gross margin % (GP/revenue) from 69.3% to 77.8% with GP increasing against the slight decline in revenue.

-  Growth in GP of 9.0% to £82.1 million (H1 FY24 : £75.3 million) in part reflects a greater weighting towards aggregated public sector sales under competitive tendering processes. This led to a corresponding small reduction in GP/GII from 7.0% last year to 6.7% this year. Behind this figure however the Group saw growth in two key income streams, software and internal services, by 11.3% and 28.1% respectively.

-  Operating profit increased by 16.3% to £35.6 million (H1 FY24: £30.6 million), with a corresponding rise in the ratio of operating profit to GP from 40.6% to 43.4%, reflecting the balance achieved between investing in the business whilst driving efficiencies.

-  Earnings per share increased 19.5% to 12.67 pence (H1 FY24: 10.6 pence).

-  Half year cash conversion of 56.2% is in line with their expectations reflecting the seasonal timing of cash flows, with a stronger weighting in the second-half of the financial year (H1 FY24: 54.0%). The Group's rolling cash conversion for the 12 months ended 31 August 2024 stood at 112.6%, meeting their sustainable annual target of 100%.

-  Closing cash was £71.5 million (H1 FY24: £51.7 million).

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