Investing.com — shares jumped more than 10% after the software and cloud services group said it traded ahead of expectations in the first half of fiscal 2027, continuing the momentum built from the second half of fiscal 2026, and upgraded its full-year guidance.
The company now expects gross profit growth in the low-to-mid teens for the year, up from a prior forecast of high single-digit to low double-digit percentage growth.
Gross invoiced income for the six months to August 31 is estimated to have risen around 19% year-on-year, with gross profit up around 18% and operating profit up around 6%. The more modest operating profit growth reflects previously flagged cost normalization, including higher technology spending tied to strategic projects and a return to more typical bonus levels.
The board also guided for low-to-mid single-digit operating profit growth for the full year.
Net cash stood at around £68 million at the end of the first half, after the company returned £41.3 million to shareholders through a £16.3 million final dividend and £25.0 million in share buybacks. Cash conversion improved to around 45% from 34% a year earlier, though the company noted its cash generation is typically weighted toward the second half.
Chief Executive Sam Mudd said the company was pleased with the momentum across both its private and public sector businesses, adding that AI “is becoming a more meaningful driver of growth in our core business areas.”
Bytes is scheduled to publish its full first-half results on October 13.