# Bytes Technology (BYIT.LSE)

Canonical: https://gigainvestors.com/s/BYIT.LSE

Analysis as of: 2026-10-16T07:42:51.909Z. Financial observations: FY2018–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 443.20 per share; close as of 2026-10-15.

Estimated value: low GBX 281.58 per share, central GBX 314.76 per share, high GBX 358.93 per share. Buy at or below the central value GBX 314.76 per share. Valuation as of 2026-10-16T07:42:51.909Z; scenarios are not confidence intervals.

Expected annual return: 7.7% at the stated quote. About 7.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.60×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.03×

- FY2019: 0.05×

- FY2020: 0.08×

- FY2021: 0.09×

- FY2022: 0.29×

- FY2023: 0.28×

- FY2024: 0.27×

- FY2025: 0.31×

- FY2026: 0.29×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 53.9%

- ROIC, second-lowest year: 29.1%

- Typical minus recent gross margin: -4.0 pp

- Typical gross margin (annual median): 70.4%

- Recent gross margin (lower of latest and 3-year median): 74.4%

- Years with nonpositive capital: 9

- Capital spending / revenue: 0.5%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 20.6%

- FY2019: 29.1%

- FY2020: 44.3%

- FY2021: >100%

- FY2022: 68.3%

- FY2023: 65.3%

- FY2024: 53.9%

- FY2025: 48.8%

- FY2026: 55.6%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 223M

- Net income, five-year total: GBP 226M

- Return on incremental invested capital: 45.5%

- Working capital / revenue, annual change: 6.3 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.05×

- FY2023: 1.02×

- FY2024: 1.01×

- FY2025: 0.87×

- FY2026: 1.02×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 29.1% vs 53.9%

- Per-share earnings: 0.06 to 0.21 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: 0.6%

- Per-share value growth: 22.2%

- Per-share value change: GBP 0.15

- Per-share value, starting three-year median: GBP 0.06

- Per-share value, ending three-year median: GBP 0.21

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 2.1%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 29.1%

- ROIC, last three-year median: 53.9%

Chart: Earnings per share; fiscal year observations.

- FY2018: GBP 0.03

- FY2019: GBP 0.06

- FY2020: GBP 0.10

- FY2021: GBP 0.08

- FY2022: GBP 0.13

- FY2023: GBP 0.16

- FY2024: GBP 0.19

- FY2025: GBP 0.22

- FY2026: GBP 0.21

### accounting: pass

- Sloan accruals: -2.1%

- Receivables to sales index (DSRI): 1.09×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.19×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.57×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -2.4%

- FY2019: -8.1%

- FY2020: -6.9%

- FY2021: -6.0%

- FY2022: -6.8%

- FY2023: 0.7%

- FY2024: -2.7%

- FY2025: -4.4%

- FY2026: -2.1%

## Holders

## Price story

Down 32% since Jan 2024 · sales +1.6%

Story as of 2026-10-16T10:00:12.528Z; price observation 2026-10-15.

Price needs cash profits to grow 5.7% a year for ten years

### Sales · FY2025–2026

sales +1.6%; source https://filings.xbrl.org/213800LA4DZLFBAC9O33/2026-02-28/ESEF/GB/0/213800LA4DZLFBAC9O33-2026-02-28/reports/213800LA4DZLFBAC9O33-2026-02-28-T01.xhtml; observed 2026-06-02.

- FY2018: GBP 322M 

- FY2019: GBP 350M 

- FY2020: GBP 373M 

- FY2021: GBP 394M 

- FY2022: GBP 146M 

- FY2023: GBP 184M 

- FY2024: GBP 207M 

- FY2025: GBP 217M 

- FY2026: GBP 221M 

### Gross margin · FY2026

gross margin 74.4%; source https://filings.xbrl.org/213800LA4DZLFBAC9O33/2026-02-28/ESEF/GB/0/213800LA4DZLFBAC9O33-2026-02-28/reports/213800LA4DZLFBAC9O33-2026-02-28-T01.xhtml; observed 2026-06-02.

- FY2018: 13.5% 

- FY2019: 18.2% 

- FY2020: 20.5% 

- FY2021: 22.1% 

- FY2022: 84.6% 

- FY2023: 81.0% 

- FY2024: 70.4% 

- FY2025: 75.2% 

- FY2026: 74.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are GBP 220.6 million.

- Source: https://filings.xbrl.org/213800LA4DZLFBAC9O33/2026-02-28/ESEF/GB/0/213800LA4DZLFBAC9O33-2026-02-28/reports/213800LA4DZLFBAC9O33-2026-02-28-T01.xhtml (filed 2026-06-02); FY2026: revenue 220562000; grossProfit 164201000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BYIT.LSE: Bytes Technology Group plc offers software, security, AI, and cloud services in the United Kingdom, Europe, and internationally. It sells servers, laptops, and other devices; various cloud-based and non-cloud-based licenses; and subscriptions and software assurance products. The company also offers externally and internally training and consulting services; cyber security; digital workspace; hybrid infrastructure; public cloud; and software asset management. The company was founded in 1982 and is headquartered in Leatherhead, the United Kingdom

### Why customers stay

Margins ranged from 70.4% to 75.2% during 2024–26; it earns 53.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2024: grossProfit / revenue = 70.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2025: grossProfit / revenue = 75.2%.

- Source: https://filings.xbrl.org/213800LA4DZLFBAC9O33/2026-02-28/ESEF/GB/0/213800LA4DZLFBAC9O33-2026-02-28/reports/213800LA4DZLFBAC9O33-2026-02-28-T01.xhtml (filed 2026-06-02); FY2026: grossProfit / revenue = 74.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); 9-year return on capital observations [[2018,0.20551131420244712],[2019,0.29069170916721415],[2020,0.4428753350112411],[2021,1.4409858589915596],[2022,0.683189101856792],[2023,0.6527802438236274],[2024,0.5387102241151179],[2025,0.48833272826412005],[2026,0.5561182940139368]]; median 0.5387102241151179. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 9 of 9 years; bought back GBP 25.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2018: growth capex 0; upkeep 227000; owner earnings 9025000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2019: growth capex 0; upkeep 1063000; owner earnings 16345000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2020: growth capex 0; upkeep 1745000; owner earnings 24676600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2021: growth capex 0; upkeep 607000; owner earnings 21730400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2022: growth capex 0; upkeep 617000; owner earnings 34609600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2023: growth capex 0; upkeep 1363000; owner earnings 41339600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2024: growth capex 0; upkeep 1334000; owner earnings 47548600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2025: growth capex 511567.73148225807; upkeep 9555432.268517742; owner earnings 47542167.73148226. Growth capex / owner earnings = 0.010760294616172911.

- Source: https://filings.xbrl.org/213800LA4DZLFBAC9O33/2026-02-28/ESEF/GB/0/213800LA4DZLFBAC9O33-2026-02-28/reports/213800LA4DZLFBAC9O33-2026-02-28-T01.xhtml (filed 2026-06-02); FY2026: growth capex 0; upkeep 1816000; owner earnings 52180000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); Dividend observations: [[2018,6500000],[2019,6500000],[2020,13800000],[2021,48600000],[2022,4790000],[2023,30654000],[2024,36641000],[2025,42843000],[2026,48618000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800LA4DZLFBAC9O33/2026-02-28/ESEF/GB/0/213800LA4DZLFBAC9O33-2026-02-28/reports/213800LA4DZLFBAC9O33-2026-02-28-T01.xhtml (filed 2026-06-02); FY2026: cash repurchases 25187000 GBP.

### Are managers owners

Insiders own 8.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BYIT.LSE SharesStats.PercentInsiders = 8.606 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); Ten-year compound average after fade. Initial solved rate 0.06894994713313299. Price 443.2; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2020-12: GBX 335.00 per share

- 2021-01: GBX 360.00 per share

- 2021-02: GBX 418.60 per share

- 2021-03: GBX 399.40 per share

- 2021-04: GBX 493.00 per share

- 2021-05: GBX 500.00 per share

- 2021-06: GBX 463.00 per share

- 2021-07: GBX 482.40 per share

- 2021-08: GBX 514.00 per share

- 2021-09: GBX 507.00 per share

- 2021-10: GBX 534.00 per share

- 2021-11: GBX 554.50 per share

- 2021-12: GBX 567.50 per share

- 2022-01: GBX 461.20 per share

- 2022-02: GBX 460.40 per share

- 2022-03: GBX 497.80 per share

- 2022-04: GBX 447.20 per share

- 2022-05: GBX 466.60 per share

- 2022-06: GBX 418.40 per share

- 2022-07: GBX 451.20 per share

- 2022-08: GBX 417.00 per share

- 2022-09: GBX 419.80 per share

- 2022-10: GBX 359.20 per share

- 2022-11: GBX 413.40 per share

- 2022-12: GBX 387.00 per share

- 2023-01: GBX 387.00 per share

- 2023-02: GBX 399.60 per share

- 2023-03: GBX 388.40 per share

- 2023-04: GBX 415.80 per share

- 2023-05: GBX 510.00 per share

- 2023-06: GBX 527.50 per share

- 2023-07: GBX 516.00 per share

- 2023-08: GBX 485.40 per share

- 2023-09: GBX 498.80 per share

- 2023-10: GBX 492.20 per share

- 2023-11: GBX 539.50 per share

- 2023-12: GBX 612.00 per share

- 2024-01: GBX 656.50 per share

- 2024-02: GBX 557.50 per share

- 2024-03: GBX 511.00 per share

- 2024-04: GBX 488.20 per share

- 2024-05: GBX 558.50 per share

- 2024-06: GBX 554.50 per share

- 2024-07: GBX 508.00 per share

- 2024-08: GBX 476.60 per share

- 2024-09: GBX 515.00 per share

- 2024-10: GBX 452.80 per share

- 2024-11: GBX 453.60 per share

- 2024-12: GBX 422.60 per share

- 2025-01: GBX 462.20 per share

- 2025-02: GBX 419.40 per share

- 2025-03: GBX 485.00 per share

- 2025-04: GBX 507.00 per share

- 2025-05: GBX 525.00 per share

- 2025-06: GBX 512.50 per share

- 2025-07: GBX 367.00 per share

- 2025-08: GBX 403.60 per share

- 2025-09: GBX 396.60 per share

- 2025-10: GBX 369.80 per share

- 2025-11: GBX 346.00 per share

- 2025-12: GBX 358.60 per share

- 2026-01: GBX 336.20 per share

- 2026-02: GBX 303.40 per share

- 2026-03: GBX 276.40 per share

- 2026-04: GBX 301.20 per share

- 2026-05: GBX 368.60 per share

- 2026-06: GBX 378.00 per share

- 2026-07: GBX 400.80 per share

- 2026-08: GBX 438.60 per share

- 2026-09: GBX 444.00 per share

- 2026-10: GBX 443.20 per share

## Annual estimated value (GBX per share)

- FY2022: low GBX 62.16 per share, central GBX 67.12 per share, high GBX 73.71 per share

- FY2023: low GBX 81.19 per share, central GBX 88.56 per share, high GBX 98.36 per share

- FY2024: low GBX 237.02 per share, central GBX 265.02 per share, high GBX 302.30 per share

- FY2025: low GBX 256.41 per share, central GBX 285.77 per share, high GBX 324.84 per share

- FY2026: low GBX 267.17 per share, central GBX 298.65 per share, high GBX 340.56 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:48:38.373Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800LA4DZLFBAC9O33/2026-02-28/ESEF/GB/0/213800LA4DZLFBAC9O33-2026-02-28/reports/213800LA4DZLFBAC9O33-2026-02-28-T01.xhtml); period 2026-02-28, filed 2026-06-02.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations