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BYTES TECHNOLOGY GRP PLCBYTES TECHNOLOGY GRP PLCBYTES TECHNOLOGY GRP PLC

BYTES TECHNOLOGY GRP PLC

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BYI trade ideas

Our opinion on the current state of BYTES(BYI)Bytes Technology, spun out of Altron, was separately listed on the London Stock Exchange (LSE) and the JSE. At the time of listing, it had a market capitalisation of around R13 billion, which has since grown to R26.5 billion. Altron shareholders benefited from the demerger, receiving GBP542 million in shares and cash, marking a significant release of value. Bytes Technology describes itself as "one of the UK's leading software, security, and cloud services specialists." It is also the largest reseller of Microsoft products in the UK, with approximately 60% of its revenue generated from annuity-based income. In its results for the six months to 31st August 2024, the company reported a 2.9% decline in revenue but a 19.5% increase in headline earnings per share (HEPS). The company attributed the strong increase in operating profit to continued demand for its broad range of software, solutions, and services. Technically, the share rose to a cycle high of 16,100c on 25th January 2024, and there are expectations that it will exceed this high in the near future. The current downward trend is likely due to the relative strength of the rand this year. However, Bytes Technology remains a solid rand-hedge and is expected to perform well going forward. On 21st February 2024, the company announced the resignation of its CEO, Neil Murphy, with immediate effect, and he was replaced by Sam Mudd. Despite this leadership change, the company is positioned to maintain its strong performance in the market.
JSE:BYI
by PDSnetSA
Our opinion on the current state of BYTES(BYI)Bytes Technology was spun out of Altron and separately listed on the London Stock Exchange (LSE) and the JSE. At the time of listing, it had a market capitalisation of approximately R13 billion, which has since grown to R26.5 billion. Altron shareholders received GBP 542 million in shares and cash during the demerger, representing a significant release of value. Bytes Technology describes itself as "one of the UK's leading software, security, and cloud services specialists." It is the largest reseller of Microsoft products in the UK and derives about 60% of its revenue from annuity-based contracts. In its results for the year ending 29th February 2024, the company reported a 26.7% increase in gross income and a 15.8% rise in headline earnings per share (HEPS). The company highlighted that, "The exceptional level of growth was underpinned by strategically important contract wins in the public sector (most notably with the NHS and HMRC) and by continued demand from corporate customers. Revenue increased 12.3% to £207.0 million (2022/23: £184.4 million)." In a trading update for the first half of 2024, Bytes Technology stated that "Gross Invoiced Income and Adjusted Operating Profit growth was comfortably in the double digits at circa 13.5% each, and Gross Profit growth was circa 9%." Technically, the share rose sharply to a cycle high of 16,100c on 25th January 2024. It is expected that the share will surpass this high in the near future. As a solid rand-hedge, the company is positioned to perform well going forward. On 21st February 2024, Bytes Technology announced the resignation of its CEO, Neil Murphy, with immediate effect. He has been replaced by Sam Mudd.
JSE:BYI
by PDSnetSA
Our opinion on the current state of BYTES(BYI)Bytes Technology was spun out of Altron and separately listed on the London Stock Exchange (LSE) and the JSE. At listing, it had a market capitalization of about R13bn, which has subsequently grown to R26.5bn. Altron shareholders received GBP542m in shares and cash at the demerger in a significant release of value. It describes itself as "...one of the UK's leading software, security, and cloud services specialists." The company is the biggest reseller of Microsoft products in the UK and receives about 60% of its revenue in annuity form. In its results for the year to 29th February 2024, the company reported gross income up 26.7% and headline earnings per share (HEPS) up 15.8%. The company said, "The exceptional level of growth was underpinned by strategically important contract wins in the public sector (most notably with the NHS and HMRC) and by continued demand from corporate customers. - Revenue increased 12.3% to £207.0 million (2022/23: £184.4 million)." Technically, the share rose strongly to a cycle high of 16100c on 25th January 2024 from a low of 6800c. We believe that it will exceed this high in the not-too-distant future. This share is a solid rand-hedge and will perform well going forward. On 21st February 2024, the company announced the resignation of its CEO, Neil Murphy, with immediate effect. He is replaced by Sam Mudd.
JSE:BYI
by PDSnetSA
BYI: bullish crossoverqA price action above 13900 supports a bullish trend direction. Increase exposure for a break above 14600. The target price is set at 15600. The stop-loss price is set at 1300. Crossing above the 38,2% Fibonacci retracement level might support the bullish price action. The MACD bullish crossover (see the lower panel) might support the bullish underlying trend. Notice that the price action remains above its 200-day, supporting a bullish underlying trend.
JSE:BYILong
by Peet_Serfontein
Our opinion on the current state of BYIBytes Technology Group's strategic demerger from Altron and subsequent listings on the London Stock Exchange (LSE) and the Johannesburg Stock Exchange (JSE) marked a significant milestone in its corporate evolution. Initially listed with a market capitalization of around R13 billion, Bytes Technology has seen its value more than double to R26.5 billion, a testament to its growth trajectory and strategic positioning in the IT services sector. Altron shareholders benefitted from a substantial release of value, receiving GBP542 million in shares and cash during the demerger process. Positioning itself as a leading specialist in software, security, and cloud services in the UK, Bytes Technology has solidified its market presence, notably as the largest reseller of Microsoft products in the region. The company's revenue model, with approximately 60% coming in an annuity form, provides a stable and predictable income stream, underpinning its financial health and operational stability. For the six months ending on 31st August 2023, Bytes Technology reported a commendable 16.3% increase in revenue and a 17% rise in headline earnings per share (HEPS). The company's forward-looking statement on the anticipated shift towards Artificial Intelligence (AI) products in the IT services sector underscores its strategic foresight and readiness to capitalize on emerging technological trends. This adaptability positions Bytes Technology at the forefront of industry innovation, ready to leverage new opportunities in AI and related domains. The share price performance post-listing reflects the company's market reception and investor confidence, with a significant rise from around 6800c at its listing on 17th December 2020 to 12570c at the end of 2021. Despite experiencing a period of downward or sideways movement, likely influenced by broader market corrections, the share reached a new high of 12400c on 6th June 2023. This pattern suggests a robust investor interest and market valuation of Bytes Technology's business model and growth prospects. The announcement on 21st February 2024 regarding the resignation of CEO Neil Murphy and the appointment of Sam Mudd as his successor introduces a new chapter in the company's leadership. This change at the helm is expected to bring fresh perspectives and potentially new strategic directions to further enhance Bytes Technology's market position and growth trajectory. Given its solid rand-hedge characteristics and the underlying strength of its business model, Bytes Technology is poised for continued success. The company's strategic focus on capitalizing on the burgeoning AI market and its stable revenue streams from annuity contracts provide a strong foundation for future performance and investor returns.
JSE:BYI
by PDSnetSA
Our opinion on the current state of BYIBytes Technology was spun out of Altron and separately listed on the London Stock Exchange (LSE) and the JSE. At listing it had a market capitalisation of about R13bn which has subsequently grown to R26,5bn. Altron shareholders received GBP542m in shares and cash at the demerger in a significant release of value. It describes itself as "...one of the UK's leading software, security and cloud services specialists". The company is the biggest reseller of Microsoft products in the UK and receives about 60% of its revenue in annuity form. In its results for the year to 28th February 2023 the company reported revenue up 26,5% and headline earnings per share (HEPS) up 23%. The company said, "Customer appetite for security, cloud adoption, digital transformation, hybrid datacentres and remote working solutions underpinned the Group’s continued growth in FY23. - 96% of GP came from customers that traded with BTG last year (FY22: 93%), at a renewal rate of 116%". In an update on the six months to 31st August 2023 the company reported, "...continued growth in Gross Profit and Adjusted Operating Profit, both growing comfortably in double digits. This reflects BTG’s continued market share gains in both corporate and public verticals. Our net cash position at the end of H1 FY24 was £51.3 million, after paying £30 million of final and special dividends in the period". Technically, the share rose strongly after listing at around 6800c on 17th December 2020 to reach 12570c at the end of 2021. After that it was in a downward or sideways trend probably because of the correction on world markets. In the last two months to share has been rising sharply. We believe that this share is a solid rand-hedge and will perform well going forward.
JSE:BYI
by PDSnetSA