Bytes Technology Share Discussion Threads

[adthorn] 30/6/2023 12:40

Nice cup and handle forming here

[blackhorse23] 24/3/2023 08:11

Sold with profit & bought GNC

[boozey] 23/3/2023 23:03

thanks again Tole. We need the ftse 250 to stage a recovery to support price improvement here.

[tole] 23/3/2023 06:25

Numis upgrades Bytes Technology, notes 'strong rebound' in 2H cash conversionBy Sharecast NewsSharecast News | 22 Mar, 2023Analysts at Numis upgraded their recommendation for shares of Bytes Technology from 'add' to 'buy' after the software reseller guided towards full-year operating earnings ahead of their expectations.Adjusted earnings before interest and taxes were seen growing by roughly 20% or two percentage points quicker than Numis had estimated.In particular, the analysts noted the "strong rebound" in cash conversion, which saw Bytes end the second half with approximately £73m of cash on hand an no debt (Numis: £60.7m)."At a time when investors are sensitive to changes in the demand landscape, it is reassuring to see the group continue to see healthy demand levels across both private and public companies," they said in a research note sent to clients."At 375p, the shares are trading on Feb'24 EV/NOPAT of 18.3x, supported by a 4% FCF yield, which we believe is attractive given its growth."Numis kept its target price for the shares at 500.0p.

[boozey] 23/3/2023 06:17

Thanks for that Tole. Interesting read.

Some significant Director Buys in recent times too.

[tole] 23/3/2023 05:39

Liberum: Bytes offers value and tech exposureComputer software reseller Bytes Technology (BYIT) is offering 'reasonable value' as well as providing investors with exposure to Microsoft and cybersecurity, says Liberum.Analyst Andrew Ripper reiterated his 'buy' recommendation and target price of 550p on the stock, which rose 1.9%, or 6.9p, to 382.5p on Wednesday.'Bytes is a leading UK value-added reseller which offers investors a way to gain exposure to Microsoft, cybersecurity, and other software vendors, which have good structural growth and pricing power,' he said.A year-end update from the group indicated that 'trading has been better than we and consensus expected, beating the fade in the second half', Ripper added, leading him to update hit profit and loss estimates by 3-4%.'The shares trade on current year 2023 enterprise value/ebitda of 14 times and a free cashflow yield of 5%, which we think is reasonable value for 13% three-year ebitda compound annual growth rate, with scope to return surplus capital via special dividends,' he concluded

[johnrxx99] 27/10/2022 03:17

And there's me thinking it was the statement.

[scobak] 26/10/2022 19:11

fall influenced to some extent by Microsoft and Google poor showings of last 2 sessions.

[skyracer] 26/10/2022 13:54

Not holder. Just a brief look. This is a £1bn business. "growing our share of wallet", what sort of spivvy remark is this to appear in a large plc accounts ?

[tole] 27/6/2022 18:12

https://www.fool.co.uk/2022/06/27/is-this-tech-stock-one-of-the-best-shares-to-buy-now/

[mbds01] 04/5/2022 10:28

Does anyone any background as to why the prolonged shared price drop over the last few weeks, especially following a positive statement.

[km18] 23/3/2022 12:41

Bytes Technology Group issued a trading update a few days ago. Bytes enjoyed another upbeat year with results ahead of expectations. The Group recorded double-digit growth throughout the year in its three key financial performance metrics, with accelerated growth in the second half of the year. Gross Invoiced Income increased more than 26% to around £1.2 billion, Gross Profit growth was approximately 20% and Adjusted Operating Profit growth was around 23%. The business has a history of solid growth and that growth is profitable, profitability ratios are impressive for the sector. Valuation looks unhelpful with forward PE ratio over 30 a little expensive even for Software & IT Services sector. But the PS ratio at 2.75 is a little more favourable, while the balance sheet is healthy and the share price had momentum before the Q1 market sell-off. BUY...

...from WealthOracleAM

[scobak] 25/1/2022 19:45

Seems a simple company to understand. Now looking to get in on this price pullback.
My only concern is the high P/E of around 50. Is that likely to be wrong as we head towards next year or is there some valuation issue?

[tomps2] 26/11/2021 09:05

Alexandra Jackson Interview with PIWORLD

Alexandra Jackson mentions Bites Technology Group #BYIT at 13m53s in the latest PIWORLD interview

Watch the video here:

Or listen to the podcast here:

[w1lbur01] 14/9/2021 07:35

Nice update and brought my first lot of shares today

[tole] 14/9/2021 06:46

Bytes continued to trade strongly during the first half of the financial year, building on the robust maiden full year results reported in May 2021 and the positive start to the current financial year that we announced in July 2021. During H1 FY22 the Group delivered year-on-year low-teens percentage growth in gross profit and high-teens growth in adjusted operating profit, reflecting a performance which has seen corporate sector demand strengthening alongside continued growth from the public sector. Cash collections and conversion have remained very strong and our operating expenses have also benefitted from ongoing efficiencies.

[tole] 12/8/2021 05:56

Ashworth-Lord takes Bytes of the actionCFP SDL Free Spirit fund has taken a new position in Bytes Technology (BYIT), which manager Keith Ashworth-Lord backs for its competitive position, growth record, and profitability.The Citywire AA-rated manager of the £116m fund announced he had taken a stake in the UK's leading 'value added resellers of technology products and services' in his latest factsheet.He said the company has built 'a strong competitive position with a hugely skilled workforce and long-established relationships with both customers and vendors'.Currently, over 60% of gross profit comes from repeat revenue, such as cloud-based software sales, and 90% of gross profit is from existing customers 'demonstrating high levels of repeat demand and customer loyalty'.'The company has an excellent track record of growth, profitability, and cash generation. The return on equity exceeds 50% and over 100% of earnings are converted into free cashflow,' said Ashworth-Lord.'Finally, the chief executive and chief financial officer have both been with Bytes for more than 20 years and have material shareholdings. Exactly the kind of alignment we like to see.'Shares in Bytes were down 0.9%, or 5.4p, at 479p yesterday.

[thefartingcommie] 23/4/2021 11:00

Mng all...joined the party...on the back of Max Ward (IIT)...Bytes Technology Group plc ORD GBP0.01 6.15% ....he wld certainly have done his dd.

[sphere25] 24/3/2021 12:13

No problem Tole.

If the opportunity is there, then I'm sure folk who do trade the index re-jigs jump in for little sharp trades. The MSCI reviews can throw up some opportunities too.

Worth keeping a tabs on.

All imo
DYOR

[tole] 22/3/2021 20:44

Thanks Sphere. Wasnt aware of the inclusion here.
Intersting.


Always like to trade the quadruple witching dates as it can throw up some short term misprices especially in the auction. I assume this always coincides with the index review dates too.. 3rd friday of the quarter.

[sphere25] 19/3/2021 12:29

Hi Tole :-)

Just a comment on the FTSE review changes taking place at the close of play today.

Posted the changes on the RCH board (it was close to getting into the FTSE250 but fell away) a short while back but will re-post here:

FTSE100:

IN - WEIR, RSW
OUT - MRW, PNN

FTSE250:
IN - MRW, PNN, DOCS, BYIT, CHRY
OUT - WEIR, RSW, NESF, BCPT, PFC

FTSE350:
IN - DOCS, BYIT, CHRY
OUT - NESF, BCPT, PFC

FTSE SmallCap:
IN - NESF, BCPT, PFC, LAM, GSEO
OUT - CHRY

FTSE AllShare:
IN - DOCS, BYIT, LAM, GSEO
OUT - None

FTSE Fledgling:
IN - None
OUT - LAM


The likes of BYIT, BCPT and LAM could possibly provide quick opportunities if the book skews to one side. The movements aren't as powerful as they used to be years back because the FTSE review process has been more smoothed recently.

You can still get gyrations in the afternoon from around 3:30 ish onwards but have to be quite sharp and take the profit before the close because the order book can skew one way in the open trading hours market and then close the other way in the auction.

Seen plenty in the past where you can have a book look strong with good demand for shares on the bid and say get bid up from 118p to 125p but then close at 115p in the auction.

BYIT is very lumpy and gaps alot so have to be even more careful with these but it's a case in point about future index review possibilities. Nonetheless, can always watch from the sidelines and observe some of the movements, as well as the auction where there will be some whopping exchanges.

Outside of the review shares, other shares in the main indices will also see above normal auction exchanges so there can be opportunities in some of the ordinary ones too where the weightings in the relevant index have to be increased and where the sellers might not as prevalent on the offer intraday.

I remember PHTM as an example of a share that wasn't moving as part of an index years back moving suspiciously higher into the close and on checking the order book it was heavily skewed with the demand very strong. Not only did it rally into the close, it gapped about 10% higher in the closing auction managed to chuck the shares into the auction and make a decent turn.


All in all, even though the process is more smoothed and provides less opportunities, it is still well worth keeping an eye on anything that is moving irregular in the afternoons of these closing FTSE review auctions to see if there is a very quick in and out intraday trade.

All imo
DYOR

[tole] 17/3/2021 07:03

Bytes, one of the UK's leading software, security and cloud services specialists, is pleased to provide the following update on trading for its financial year ended 28 February 2021 ("FY21"). The trading environment has remained resilient throughout the second half of FY21, and as a consequence Bytes expects to report preliminary results somewhat ahead of market expectations, with comfortably double-digit percentage gross profit growth and adjusted operating profit growth in the upper teens for the financial year as a whole, all of it organic. Cash conversion has also remained strong, resulting in a net cash position at 28 February 2021 of GBP20.7 million, ahead of management's expectations

[the white house] 15/2/2021 12:37

Someone nibbling enough to offset the 2 x SA sellersInteresting

[opaldouglas] 14/2/2021 09:00

What's the driver for the high valuation? I can't find any broker notes. Thanks in advance.

OD

[rampmeister] 10/2/2021 15:57

I’ve joined you today. The interview below covers MXCT which I hold but also BYIT.

RM


0
MXCT mentioned in this interview with Dan Hanbury, UK Equity Fund Manager at River and Mercantile, from about 14:30