Bytes Technology Group (JSE:BYI) News - Results for the six months ended 31 August 2021 and dividend declaration Bytes Technology Group plc (Incorporated in England and Wales) (Registered number: 12935776) LEI: 213800LA4DZLFBAC9O33 Share code: BYI ISIN: GB00BMH18Q19 ("Bytes” or “the Group”) 28 October 2021 Results for the six months ended 31 August 2021 and dividend declaration A strong half year performance delivering on our strategy Bytes Technology Group plc (LSE: BYIT, JSE: BYI), one of the UK’s leading software, security, and cloud services specialists, today announces its half year results for the six months ended 31 August 2021 (“H1 FY22”). Neil Murphy, Chief Executive Officer, said: “I am delighted to report this strong set of results, which saw the Group deliver against its strategic goals, producing growth across all areas of the business. We have maintained our track record of year-on-year growth despite the ongoing uncertainty caused by the pandemic, with our business benefitting from our wide-ranging offering, and our partnerships with the world’s leading vendors and software publishers. Reflecting the strength of our business and our performance, I am pleased to announce an interim dividend of 2.0 pence per share.” “I am particularly proud of the energy, enthusiasm and professionalism demonstrated by our people through what has been and remains a challenging time. I would also like to thank our clients for their continued support; they are the lifeblood of this business and will always be our top priority. Looking ahead, we remain confident in delivering our growth strategy and capitalising on the market opportunity for the benefit of all our stakeholders.” Financial performance £’million H1 FY22 (six H1 FY21 (six % change months ended months ended year-on-year 31 August 2021) 31 August 2020) Gross invoiced income £638.2m £505.4m 26.3% (“GII”)1 Revenue2 £251.4m £221.2m 13.7% Gross profit (“GP”) £52.9m £46.4m 14.0% Operating profit £23.2m £19.5m 19.0% Adjusted operating profit £25.0m £20.5m 22.0% (“AOP”)3 Earnings per share (pence) 7.72 6.78 13.9% Adjusted earnings per 8.48 7.19 17.9% share4 (pence) Headline earning per share 7.72 6.78 13.9% (pence) Group highlights for the six months ended 31 August 2021 - Gross invoiced income increased 26.3% to £638.2 million (H1 FY21: £505.4 million), with growth primarily in software and services, as corporate client demand strengthened alongside continued growth from public sector customers. - Revenue has also increased by 13.7% to £251.4 million (H1 FY21: £221.2 million). - Gross profit growth of 14.0% to £52.9 million (H1 FY21: £46.4 million), reflecting strong customer acquisition trends across both public and private sectors and increasing gross profit per customer. - Operating profit has increased by 19.0% from £19.5 million to £23.2 million. - Adjusted operating profit of £25.0 million (H1 FY21: £20.5 million), representing growth of 22.0%. - Earnings per share has increased by 13.9% from 6.78 pence to 7.72 pence. - Accordingly, the Board is pleased to declare an interim dividend of 2.0 pence per share to be paid on 3 December 2021. Dividend declaration As stated above, the Group’s dividend policy is to distribute 40% of post-tax pre-exceptional earnings to shareholders. Accordingly, the Board is pleased to declare a gross interim dividend of 2.0 pence per share. The aggregate amount of the proposed dividend expected to be paid on 3 December 2021 out of retained earnings at 31 August 2021, but not recognised as a liability at the end of the half year, is £4.8m. The salient dates applicable to the dividend are as follows: Dividend announcement date Thursday, 28 October 2021 Currency conversion and SA tax treatment Monday, 15 November 2021 announcement released on SENS Last day to trade cum dividend (SA register) Tuesday, 16 November 2021 Commence trading ex-dividend (SA register) Wednesday, 17 November 2021 Commence trading ex-dividend (UK register) Thursday, 18 November 2021 Record date Friday, 19 November 2021 Payment date Friday, 3 December 2021 Additional information required by the Johannesburg Stock Exchange: 1. The GBP:ZAR currency conversion will be determined and published on SENS on 15 November 2021. 2. A dividend withholding tax of 20% will be applicable to all shareholders on the South African register who are not exempt therefrom. 3. The dividend payment will be made from a foreign source. 4. At 28 October 2021, being the declaration announcement date of the dividend, the Company had a total of 239,482,333 shares in issue (with no treasury shares). 5. No transfers of shareholdings to and from South Africa will be permitted between Tuesday, 16 November 2021 and Friday,19 November 2021 (both dates inclusive). No dematerialisation or rematerialisation orders will be permitted between Wednesday, 17 November 2021 and Friday, 19 November 2021 (both dates inclusive). Current trading and outlook After a successful H1 FY22 with a continuation of double-digit growth, the business carries strong momentum going into the second half of the year where we have already got off to a good start. Travel and marketing expenses have not reverted to pre-lockdown levels and are still broadly in line with those experienced in H1 last year. These costs are expected to increase gradually in the second half of the year. Our successful strategy of acquiring new customers and then growing our share of wallet, building on our strong vendor relationships and the technical and commercial skills of our people, makes us confident that the Group is well positioned for the remainder of the financial year. Analyst and investor presentation A presentation and Q&A session for analysts and investors will be held today via webcast at 9:30am BST. If you wish to access the webcast, please contact Headland Consultancy at Bytes@headlandconsultancy.com for the registration details. The announcement and presentation will be available after the event at: https://www.bytesplc.com/investors. Enquiries Bytes Technology Group plc Tel: +44 (0)1372 418 500 Neil Murphy, Chief Executive Officer Andrew Holden, Chief Financial Officer Headland Consultancy (financial PR advisor to Bytes) Tel: +44 (0) 20 3805 4822 Stephen Malthouse Lucy Legh Henry Wallers Jack Gault Forward-looking statements This announcement includes statements that are, or may be deemed to be, ‘forward-looking statements’. By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect the Group’s view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, the Group undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect events or circumstances after the date of this announcement. Short-form announcement This short-form announcement is the responsibility of the directors and is only a summary of the information in the full announcement and does not contain full or complete details. Any investment decision should be based on the full announcement that has been published on SENS https://senspdf.jse.co.za/documents/2021/jse/isse/BYIE/H1FY22SENS.pdf and is also available on our website https://www.bytesplc.com/investors. The full announcement is also available at our registered office for inspection, at no charge, during office hours. Copies of the full announcement may be requested by contacting Headland Consultancy on telephone: +44 (0) 20 3805 4822 or email: Bytes@headlandconsultancy.com. About Bytes Technology Group plc Bytes is one of the UK's leading providers of IT software offerings and solutions, with a focus on cloud and security products. The Group enables effective and cost-efficient technology sourcing, adoption, and management across software services, including in the areas of security and cloud. It aims to deliver the latest technology to a diverse and embedded non-consumer customer base and has a long track record of delivering strong financial performance. 1 ‘Gross invoiced income’ (“GII”) is a non-IFRS alternative performance measure that reflects gross income billed to customers adjusted for deferred and accrued revenue items. 2 ‘Revenue’ is reported in accordance with International Financial Reporting Standard (IFRS) 15, Revenue from Contracts with Customers. Under this standard the Group is required to exercise judgment to determine whether the Group is acting as principal or agent in performing its contractual obligations. Revenue in respect of contracts for which the Group is determined to be acting as an agent is recognised on a ‘net’ basis i.e., the gross profit achieved on the contract and not the gross income billed to the customer. 3 ‘Adjusted operating profit’ is a non-IFRS alternative performance measure that excludes from operating profit the effects of significant items of expenditure which are non-recurring events or do not reflect our underlying operations. IPO costs, amortisation of acquired intangible assets and share-based payment charges are all excluded. 4 ‘Adjusted earnings per share’ is a non-IFRS alternative performance measure that the Group calculates by dividing the profit after tax attributable to owners of the Company, adjusted for the effects of significant items of expenditure which are non-recurring events or do not reflect our underlying operations (“Adjusted earnings”) by the weighted average number of ordinary shares in issue during the period. IPO costs, amortisation of acquired intangible assets and share-based payment charges are all excluded in arriving at Adjusted earnings. The calculation is set out in note 15 of the financial statements. The Group has a primary listing on the Main Market of the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 28-10-2021 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.