Bytes Technology

Bytes Technology (Bytes) represents a high-quality play on structural growth in cloud computing, cybersecurity, and AI-driven IT spend, particularly within the UK’s mid-market and public sectors. The company’s recent sales force realignment and segmentation exercise are strategically aimed at expanding capacity and deepening specialisation, which are critical levers to capture rising demand in Microsoft’s Cloud Solution Provider and AI ecosystems. Despite a softer start to FY26, the underlying pipeline health remains strong. We view the recently announced share buyback as a positive capital allocation decision. With execution improvements under a refreshed management structure and exposure to the fastest-growing areas of enterprise IT, Bytes is well-positioned to sustain mid-teens profit growth over time and re-rate as operational confidence rebuilds.

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