Bytes Technology Group
Website:
Bytes Technology Group
Index:
FTSE 250
EPIC: BYIT
Supersector:
Technology
Sector:
Software and Computer Services
Subsector:
Computer Services
Market Cap:
£821.01M
Payout Frequency: Semi-Annual
Bytes Technology Group Dividend Analysis and Summary
Dividend details
- Interim dividend per share: 3.2p (up 3.2% YoY from 3.1p)
- Policy: Distribute 40–50% of post-tax, pre-exceptional earnings
- Declared payout (not a liability at period end): ~£7.6m on 239,090,507 shares
- H1 FY26 basic EPS: 12.03p (down 5.1% YoY); interim DPS covered ~3.8x by H1 EPS
Key dates
- Ex-dividend date (UK): 06/11/2025
- Record date: 07/11/2025
- Payment date: 21/11/2025
- (SA register: currency conversion 03 Nov; ex-div 05 Nov; last day to trade cum dividend 04–05 Nov by register)
Coverage, cash and balance sheet support
- Cash at 31 Aug 2025: £82.3m; undrawn £30m RCF; no net debt
- Free cash flow (H1): £11.4m; cash conversion 34.4% (seasonal), but rolling 12-month cash conversion 104.7%
- Large capital returns already paid in H1: £41.0m (final + special FY25)
Structural or policy items relevant to dividends
- £25m share repurchase programme announced (15 Aug 2025); ~£2.75m completed by 31 Aug with further purchases expected. Buybacks reduce share count, supporting per-share dividend capacity.
- Dividend policy reaffirmed (40–50% payout). Board states confidence in delivering FY outcome within market expectations.
- Operational realignment of the corporate sales structure (no change to dividend policy, but transition effects influenced H1 profitability).
- Cross-listing (LSE/JSE) leads to separate SA timetable/tax treatment but does not alter UK policy.
Brief analysis: sustainability and growth
- Sustainability: Ordinary dividend appears well supported by cash resources, undrawn facilities, and high rolling cash conversion. H1 cash conversion was seasonally weak, but the 12-month metric >100% and strong net cash provide headroom.
- Growth trajectory: DPS up 3.2% YoY is modest but sensible given H1 EPS fell 5.1% and operating profit declined 7.0%. Management guides to FY results within expectations; services growth and CSP mix shift should underpin medium-term earnings and DPS growth.
- Coverage: Interim DPS is covered ~3.8x by H1 EPS, aligning with the 40–50% payout policy on a full-year basis. Share buybacks should modestly bolster per-share metrics and dividend capacity.
- Capital allocation: The combination of ordinary dividends, occasional specials (FY25) and the new £25m buyback signals confidence and disciplined returns, without stressing the balance sheet.
Risks and flags to dividend stability
- Vendor incentive changes (Microsoft) continue to pressure margins (GP/GII down to 6.1% from 6.7%); mitigation via higher-margin services is progressing but execution risk remains.
- Working capital seasonality drove lower H1 cash conversion; sustained slippage in debtor days would be a watchpoint, though rolling 12-month conversion remains strong.
- Vendor concentration (notably Microsoft) and margin pressure are identified principal risks; any adverse shifts could weigh on profit growth and dividend progression.
- Macro/geopolitical uncertainty could affect demand and renewals; however, diversified customer base and resilient cash generation partly mitigate.
Read more
Bytes Technology Group Annual Dividend Yield - 5.79%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 10/07/2025 |
25/07/2025 |
Special |
10.00p |
GBX |
| 10/07/2025 |
25/07/2025 |
Final |
6.90p |
GBX |
| 06/11/2025 |
21/11/2025 |
Interim |
3.20p |
GBX |
Total (Annual Dividends Per Share):
20.10p
Dividend Yield =
Annual Dividends Per Share (20.10p)
÷ Share Price (347.2p)
= 5.79%
Bytes Technology Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 06/11/2025 |
21/11/2025 |
Interim |
3.20p |
GBX |
| 10/07/2025 |
25/07/2025 |
Special |
10.00p |
GBX |
| 10/07/2025 |
25/07/2025 |
Final |
6.90p |
GBX |
| 07/11/2024 |
22/11/2024 |
Interim |
3.10p |
GBX |
| 18/07/2024 |
02/08/2024 |
Special |
8.70p |
GBX |
| 18/07/2024 |
02/08/2024 |
Final |
6.00p |
GBX |
| 16/11/2023 |
01/12/2023 |
Interim |
2.70p |
GBX |
| 20/07/2023 |
04/08/2023 |
Special |
7.50p |
GBX |
| 20/07/2023 |
04/08/2023 |
Final |
5.10p |
GBX |
| 17/11/2022 |
02/12/2022 |
Interim |
2.40p |
GBX |
| 28/07/2022 |
12/08/2022 |
Special |
6.20p |
GBX |
| 28/07/2022 |
12/08/2022 |
Final |
4.20p |
GBX |
| 18/11/2021 |
03/12/2021 |
Interim |
2.00p |
GBX |
| 18/11/2021 |
03/12/2021 |
Q2 |
2.00 |
|
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
3.100 |
6.000 |
8.700 |
GBX |
17.800 |
16.330 |
| 2023 |
2.700 |
5.100 |
7.500 |
GBX |
15.300 |
19.530 |
| 2022 |
2.400 |
4.200 |
6.200 |
GBX |
12.800 |
220.000 |
| 2021 |
2.000 |
|
|
|
4.000 |
|
Bytes Technology Group Dividend Calculator
Bytes Technology Group Dividend Growth
| Dividend Growth (1Y) |
12.92%
|
| Dividend CAGR (5Y) |
–
|
| Years of Growth |
4
|
| Payout Ratio |
45.32%
|
| Buyback Yield |
-0.52%
|
| Shareholder Yield |
5.26%
|
| P/E Ratio (TTM) | 16.25 |
|---|
| Forward P/E | 15.45 |
|---|
| P/FCF | 13.73 |
|---|
| Earnings Yield | 6.51% |
|---|
| FCF Yield | 7.29% |
|---|
| ROE | 68.93% |
|---|
| ROCE | 76.45% |
|---|
| Profit Margin | 24.31% |
|---|
| Operating Margin | 28.91% |
|---|
| Gross Margin | 74.42% |
|---|