Investing.com-- British IT solutions provider Bytes Technology Group (LON:BYIT) reported a 6.6% year-on-year increase in first-half operating profit on Tuesday, as strong demand for artificial intelligence, cybersecurity and cloud infrastructure supported revenue growth.
Operating profit for the six months ended August 31 rose to 35.3 million pounds from 33.1 million pounds a year earlier.
Revenue climbed 18.7% to 128.3 million pounds. Gross invoiced income rose 19.6% to 1.61 billion pounds.
The company declared an interim dividend of 3.3 pence per share, up 3.1% from a year earlier.
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Bytes said higher employee and administrative costs partly offset gross profit growth. Services gross invoiced income increased 41%, while gross profit rose 23.1% in the public sector and 14.6% in the private sector.
Earlier this month, Bytes announced the acquisition of cybersecurity services provider CyberOne for an initial 19.4 million pounds.
The acquisition will strengthen Bytes' capabilities in managed security services, cyber resilience consulting and professional services, as businesses seek to adopt AI securely.
Bytes reaffirmed its upgraded full-year guidance for gross profit growth in the low-to-mid-teens percentage range and operating profit growth in the low-to-mid-single digits, excluding CyberOne's contribution.
Bytes also said changes to Microsoft partner incentives taking effect in October were expected to have a positive impact and were already incorporated into its guidance.
Original Article
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