The Bytes Group has confirmed it intends going for an IPO this December, demerging from its South African parent company Altron. Altron had suggested this April that the move was a possibility and Bytes now plans to list on both the London Stock Exchange and the Johannesburg Stock Exchange.
The move aims to “unlock value for Altron shareholders” said the parent. UK-headquartered Bytes Group provides software and services with a focus on cloud and security products. Bytes employs 650 and says it has almost 5,000 customers across the private and public sectors. It has over 100 vendor partners, and is one of Microsoft's biggest partners in the UK.
FY20 gross profit at Bytes was £79.2m – up 24.5% annually, with adjusted operating profit of £31.7m (+53.9% against FY19).
“The demerger and IPO will allow the Bytes Group to pursue its growth strategy independently, with an enhanced market profile while also enhancing culture by increasing employee ownership and incentivisation,” said Altron.
Neil Murphy (pictured), chief executive officer of the Bytes Group, said: “After 22 years as an autonomous unit within a diversified technology services group, this marks an important chapter in the development of Bytes. This pivotal moment reflects the achievements of the past and also signals our belief in our ability to deliver on our strategy and gain share in an exciting and rapidly growing market.”
He added: “We have traded strongly this year-to-date as we have helped our clients adapt to new working patterns and this has resulted in a positive financial performance and continued growth in our customer base.”
