Bytes Technology Group (BYIT.L) 2024年年度報告「LSE」.pdf

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1、Annual Reportand Accounts2023/24Delivering progress through technologyContents As a creative and innovative business,we help our customers and our peopleget the most out of the transformative technologies thatareshaping our world today.Sam Mudd CEO 1Strategic report2 BTG at a glanceOur business4 Cha

2、irs statement6 CEOs review9 Our business model10 Our strategy12 Our market environment14 Feature Advising our customers16 Measuring progress keyperformance indicatorsReview of the year20 CFOs introduction22 Operational review26 Financial review30 Sustainability review32 Our people36 Our communities3

3、8 Our planet44 Task Force on Climate-related Financial Disclosures(TCFD)53 Risk report 63 Non-financial information and sustainability information statement64 Our viability statement 65 Section 172 statement 66Governance report68 Chairs introduction to corporategovernance 72 Board of directors75 Exe

4、cutive Committee76 The Boards year78 Stakeholder engagement(s.172 compliance)83 Audit Committee report94 Nomination Committee report98 Compliance with the UK CorporateGovernance Code102 Directors remuneration report128 Directors report132 Statement of directors responsibilities 134Financial statemen

5、ts136 Independent auditors report146 Consolidated financial statements150 Notes to the consolidated financialstatements182 Parent company financialstatements184 Notes to the financial statementsOther information194 Glossary195 Appendix196 Company information196 Financial calendarAdvising our custome

6、rsWe build lasting,trust-based relationships with customers,providing them with thesolutions they need.Read more on page 14Partnering with our vendorsWe work hand in hand with world-leading technology vendors to deliver the bestresults for our customers.Read more on page 25Mentoring our peopleWe str

7、ive to continually develop ourpeople and keep them engagedandfulfilled.Read more on page 351Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORTGross invoiced income(GII)1 1,823.0m(2023:1,439.3m)+26.7%Revenue2 207.0m(2023:184.4m)+12.3%Gross profit 145.8m(2023:129.6

8、m)+12.5%Average gross profit percustomer 24,400(2023:21,800)+11.9%Operating profit 56.7m(2023:50.9m)+11.4%Adjusted operating profit3 63.3m(2023:56.4m)+12.2%Employees 1,057(up from 930)Customers5,978(up from 5,941)1 Gross invoiced income(GII)is a non-IFRS financial measure that reflects gross income

9、billed to customers,adjusted for deferred and accrued revenue items.The reconciliation of GII to revenue is set out in note 3(b)totheconsolidated financial statements.2 Revenue is reported in accordance with IFRS 15 Revenue from Contracts with Customers.Under this standard,the Group is required to e

10、xercise judgement to determine whether the Group is acting as principal or agent in performing its contractual obligations.Revenue in respect of contracts for which the Group is determined to be acting as an agent is recognised on a net basis,that is,the gross profit achieved on the contract and not

11、 the grossincome billed to the customer.3 Adjusted operating profit is a non-IFRS alternative performance measure that excludes from operating profit the effects of significant items of expenditure that are non-recurring events or do not reflect our underlying operations.Amortisation of acquired int

12、angible assets and share-based payment charges are excluded.The reconciliation ofadjusted operating profit to operating profit is set out in note 2(b)to the consolidated financial statements.2Bytes Technology Group plc BTG AT A GLANCEBytes Technology Group plc(BTG)is one of the UK and Irelands leadi

13、ng software,security,AI and cloud services specialists.Strong history,strong prospectsWere made up of two companies with one shared culture:Bytes Software Services(Bytes),which supports corporate and public sector organisations,and Phoenix Software(Phoenix),focusing primarily on the public sector.Ou

14、r purpose is to empower andinspire our peopleto fulfil theirpotential,so they can help ourcustomers make smarter buying decisions and meet their business objectives through technology.Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT3Patrick De SmedtChairChairs

15、statementOur peoples passion for our customers and for technology shone through in 2023/24,helping us achieve strong financial performance andsetting us up well for the future under our new CEO,Sam Mudd.Navigating a change of CEO On 10 May 2024,BTG announced the appointment of new CEO Sam Mudd,whose

16、 wealth of experience in technology and senior leadership complements and enhances the existing skills and experience of the Board.Sam was initially appointed as Interim CEO following the resignation with immediate effect of former CEO,Neil Murphy,on 21 February 2024.While these circumstances brough

17、t considerable challenges,they have also been an opportunity to strengthen our Board and ourgovernance processes,which will remainan area of the upmost importance forthe Board over the coming year.You will find detailed disclosure on this and other related Board changes inmy introduction to corporat

18、e governance on pages 68 to 71.Our thanks to the team We achieved our aim of double-digit growth across our main metrics,gaining market share and demonstrating the resilience of our business model,despite the uncertainty in the business world,with concerns about high interest rates and global confli

19、ct stalling investment in many sectors.But theres another key factor that allowed us to achieve these financial results,and our impressive customer net promoter scores and vendor accreditations and awards.That factor is our people,whose commitment,hard work,passion and contribution to good causes ar

20、e such important parts of our culture.I know I speak for my fellow directors in saying how very proud and grateful we are for what they accomplished during the year.New Board members to support our growthWe welcomed two new directors to Board in the year.The promotion of Sam Mudd to the Board in Jul

21、y 2023 made her subsequent move into the role of CEO a natural evolution for BTG.Sam has an impressive track record.As Managing Director(MD)of Phoenix she led the tremendous growth of that business,and is a role model for women across BTG.On the Board,she has proved herself to be an inspiring fellow

22、 director.4Bytes Technology Group plcOUR BUSINESSDiversity on the Board As of the date of this Annual Report,we are aligned to the FCA Listing Rules,with 60%women on the Board and at least one director from a minority ethnic background.We also have women intheroles of CEO andsenior independent direc

23、tor.Shareholder dividends BTGs dividend policy is to distribute 40%ofpost-tax pre-exceptional earnings to shareholders.The Board is pleased to propose a gross final dividend of 6.0 pence per share.The proposed dividend is 14.4 million.Given the companys continued strong performance and cash generati

24、on,we are also proposing a cash return to shareholders with a special dividend of 8.7 pence per share,equating to 20.9 million.If approved by shareholders,the final and special dividend will be paid on 2 August 2024.Alison Vincent stepped down as a non-executive director at the end of her three-year

25、 term this year,sowe were delighted to welcome Shruthi Chindalur as anon-executive director at the start of February 2024.Shruthi brings a wealth of commercial and operational experience in the technology sector tothe role.She also takes on the role of designated non-executive director for employee

26、engagement.Wealso announced the resignation with immediate effect of Mike Phillips asanon-executive director towards the end of March.On 1 June 2024,we will also welcome Ross Paterson and Anna Vikstrm Persson as independent non-executive directors,adding even more to the skills and experience of the

27、 Board.Ross will become Chair of the Audit Committee,while Anna will become Chair of the newly constituted ESG Committee.You can find details about Ross and Annas expertise at .Engaging and investing in people for the long termEngaging with our stakeholders is an important cultural attribute of our

28、company,and an example ofhow we take a long-term perspective.We listen closely to our customers and our employees,and Im pleased that the respective net promoter scores of 82 and 71 remain high.We held a Board meeting in our City of London office this year,for example,and so had an opportunity to ta

29、lk to our employees there,which was greatly insightful.Our most senior executives also spend a lot oftime talking to investors.This all gives us confidence aswe continue toinvest in our systems,in developing new services and,especially,inourpeople.To support our future growth,weve expanded our headc

30、ount by 13.7%this year.It is also important to make sure we increase the management capabilitiesas our workforce grows.Besides ongoing training and promotion,we have been assessing leadership skills thisyear to identify gaps,so we can implement the necessary development and coaching programmes.At th

31、e same time,Sam,in her previous role as MD Phoenix,set up a female leadership acceleration programme,which the Phoenix leadership team is continuing.Monitoring the opportunities andrisksfromAI productsTurning to Board activity,weve been focused onmonitoring the vast potential of the emerging technol

32、ogies around artificial intelligence(AI),bothfor our business internally and externally as wesupport our customers.This year weve been increasing the use of AI-enabled tools in ouroperations,to see how they canhelp us be more productive.The feedback weve hadfrom people is promising.Our customers hav

33、e alsoshown lots of interest in AI-supported products,especially Microsoft 365 Copilot.For us,the emerging technology presents an opportunity to help customers prepare for AI.We are positioned not just to provide licences to customers,but also to help them consider the potential of the technology an

34、d to put the requisite security and data management practices in place before deploying it.Our commitment to sustainabilityIt takes more than great products and services to make a great company you need a commitment to sustainability,which means looking after people,governance and,of course,the plan

35、et,given the considerable challenges ofclimate change.This is a focus area for the Board and,as noted earlier,we are setting up a Board-level ESG Committee,with effect from 1 June 2024.During the year,our Group sustainability manager helped guide our journey to net zero,and ensure a coordinated appr

36、oach between our two businesses.We also submitted our carbon reduction targets to the Science Based Targets initiative and expanded our efforts to calculate all our Scope 3 emissions for the first time,both of which are important milestones.A confident outlookLooking ahead,we are confident about our

37、 prospects,and excited by the refreshed skills and experience onthe executive team and the Board.We see encouraging growth opportunities in cloud migration and the hybrid cloud environment,in our security solutions business and in AI-enabled tools.Strong foundations,an excellent management team and

38、a broad range of talent across the business mean the Board is looking forward to supporting and challenging the executive to achieve another year of success.Patrick De SmedtChair22 May 2024Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT5CEOs reviewThis was a y

39、ear in which we showed our resilience as a company.Inatime of geopolitical and macroeconomic challenges,and Board and leadership changes,our business proved strong,dependable and agile,allowing us to extend our long run of double-digit growth.By investing in our great people,ourculture and thetechni

40、cal capability to deliver thesolutions thatour customers need,we are wellplaced forourgrowthto continue.Im very excited to be part of that growth,having been appointed as BTGs new CEO.What has become even clearer in the past few months is the strength of our relationships with customers and the dept

41、h of our vendor partnerships.All this is underpinned by the quality of our people,who I truly believe are some of the best in the industry.Its an honour to lead them and the wider company in its next chapter.Robust demand drives strong financial yearperformance BTGs performance this year was strong

42、and in linewithexpectations,in keeping with our track record since listing in 2020.Though the broader business environment was at times challenging,thedemandfor the wide-ranging suite of products and services we provide,especially cloud services andcybersecurity,remained robust in both the corporate

43、and public sectors.We saw double-digit growth in both operations of Bytes and Phoenix.Grossinvoiced income(GII)rose by 26.7%to 1.8 billion,and profit before tax increased by 22.2%to 61.6 million,as we continued to increase the share of our customers business.These results are testament tothe commitm

44、ent of our people their ongoing willingness to go above and beyond for our customers is a constant inspiration.I would like to take this opportunity to thank them for all their hard work.Doing more for our customersTo maintain our edge in a competitive market,we aimto provide the highest level of se

45、rvice to our customers,offering the right,cost-effective advice fortheir needs and expert guidance when it comes tonew technologies.This commitment to quality and our ability to get things done is crucial if we are to achieve our ultimate strategic goal each year,which isto do more business with our

46、 existing customers and to win new ones.Sam MuddCEO6Bytes Technology Group plcOUR BUSINESSWe increased our gross profit(GP)from existing customers by 109%,and added 5.1 million of GP fromnew customers,with our total customer base now being just short of 6,000.Besides continued success inthe corporat

47、e sector,we won several long-term,large-value contracts in the public sector,including theNHS and HMRC.The new five-year agreement with the NHS,for example,has a sales value of 775 million over the life of the contract,supporting our longer-term growth ambitions.We have a track record of growing the

48、 profitability of these contracts over time,and opening up other software,hardware and serviceopportunities.Even after our impressive GII growth of 26.7%thisyear,our share of the overall total addressable market in the UK is still less than 4%.This,along with our high customer net promoter score of

49、82,gives usa lot of confidence that we can keep winning new customers,while deepening relationships with those we already serve.The potential of tools supported byAIIn our sector,agility is crucial:when new technologies emerge,we must be ready to help customers prepare for and adapt to them.We have

50、already seen strong interest from our customers in AI-enabled software solutions,such as Microsoft 365 Copilot,which use the power of large language models and a users data to help improve productivity.And while we understand their excitement,were also urging caution.We believe that careful consider

51、ation and planning is essential before implementing AI products.This includes putting in place the right guidelines,frameworks and guard rails for data protection and security,and providing training for users.By doing things in the right sequence,the positive outcomes can be far greater.Weve been fo

52、llowing this approach ourselves,whichwill help us provide even better support to our customers.During the last few months of the year,100 people at BTG,including myself and many of oursenior managers,enrolled in Microsofts early access programme for Copilot.As we advance our understanding of these t

53、ools,we are very optimistic about the technology,and planto gradually roll it outto the majority of our employees in line with the considered approach that we advise our customers to take.We believe that,over time,adopting AI in this measured,careful way will make our organisation more productive,he

54、lp us respond more quickly to our customers and other stakeholders,free up time for creativity and innovation,and give us a head start in advising customers on how to implement Copilot.Ultimately,then,our approach positions us well to be aleader in the implementation of AI and so drive our growth fo

55、r the rest of the decade,and beyond.When we look back at this pivotal moment in years to come,we will have played our role in helping our customers to benefit from this new wave of technology.Investment caseProven track record and growth strategyWe have a long track record of delivering strong finan

56、cial performance,enabled by highly motivated employees delivering the latest technology to a diverse and loyal customer base.Ourstrategy is to grow organically by doing more with existing customers and winning new customers this supports strong free cash flow that allows us to invest in our business

57、es.6-year GP compound average growth rate 18%Customers served in 2023/245,978Attractive market positioningWe have strategic relationships and partnerships with many ofthe worlds leading software vendors and distribution channels.This includes a long and deeply embedded relationship with Microsoft,as

58、 one of its largestpartners intheUK by revenue.Number of vendors and distributors800One of the biggest UK partners with Microsoft by revenueCompelling growth opportunityWe operate in a vast,growing market,boosted by technological tailwinds from digital transformation agendas,cloud products,cybersecu

59、rity and AI-enabled tools.Our share of our total addressable market is less than 4%,so we have plenty of roomto grow.Strong GII growth26.7%Strong team cultureOur dynamic culture drives our operational excellence andhighemployee retention rates.Our culture also increasessales productivity,customer sa

60、tisfaction andrepeat business.Employee net promoter score7104030201Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT7CEOs review continuedStaying true to our cultureDriving growth is only possible with a brilliant,highly engaged team with a can-do attitude.When

61、BTG was formed at our IPO in December 2020 we were 650 people;this year we celebrated passing the 1,000-employee mark,attracting great talent in acompetitive market for skills.During the year,our headcount grew by 13.7%as we looked to make surewe have the right number of people with the right techni

62、cal and commercial skills for where themarket will be in the coming years.Though we have grown significantly over the years,were always mindful of the importance of maintaining the family culture thathasbrought us so much success.That means recognising every employee as an individual whoneeds to be

63、guided,motivated,challenged and offered a clear career path.We encourage a workplace culture where employees gain value and personal satisfaction fromtheir work.This can lead to substantial benefits for both individualand organisation,and promote wellbeing andproductivity.We continually aim to creat

64、e an environment where these outcomes can be achieved and where people can thrive and be fulfilled.Our approach to flexible working is one example of howwe do this.Some companies,including in the technology sector,prefer their staff back in the office full time.In contrast,we believe that face-to-fa

65、ce interaction and collaboration is important to maintain our culture,and we have plenty of people who are inthe office five days a week,because they like the environment and work well that way.But we have others who prefer to work from home for part of the week,because it suits their personality an

66、d circumstances or the type of work they do.We learnt during the pandemic that everyone will find their own best way ofworking,and of being productive.As long as it continues to deliver the right results,then were happy.Deepening ties with our vendorsJust like with our people,building lasting relati

67、onships is crucial when it comes to our many vendors,including our largest and longest-standing partner,Microsoft,with which we continued to deepen our relationship this year.I was really pleased to get the opportunity to meet Microsofts CEO,Satya Nadella,and many senior Microsoft executives when I

68、went to Seattle for the awards ceremony for Phoenix winning Microsoft Global Modern Endpoint Management Partner of the Year for 2023.By working closely with our vendors over many years,and investing in our capabilities to stay ahead of the technology curve,we benefit from early access to new product

69、 development,such as Copilot.We also gettotake part in high-level discussions that help influence our strategic thinkingand awareness ofmarket opportunities.This year,we strengthened our partnership with Cloud Bridge Technologies,an Amazon Web Services(AWS)partner.In April 2023,we acquired an intere

70、st in Cloud Bridge,and this investment gives usaccess to resources that will help underpin our multicloud strategy in the coming years.Strengthening our commitment totheenvironmentAnother area in which we look to the outside world,and the expectations of businesses today,is sustainability.The enviro

71、nment,and climate change in particular,is becoming an ever-bigger issue for all businesses and rightly so,as the world looks for a manageable transition to net zero.Were particularly mindful of the impact on the environment of growth in technologies like AI,which require vast computing power and clo

72、ud storage and consume a lot of energy.And so,while as a company were not a big carbon emitter,were doing everything we can to mitigate our impact.Im pleased with our progress this year:we expanded our Scope 3 reporting,andsubmitted our carbon reduction targets to theScience Based Targets initiative

73、 for validation.The road aheadIm excited about the prospects for 2024/25 as we continue to work with our customers to be more productive through advancements in technology.Webelieve that tailwinds will continue to favour our industry,ascompanies look to the latest technologies,including AI,to become

74、 more efficient,and as thecybersecurity threat continues to grow.More important to us,however,are the investments and innovations were making to support that growth:increasing our technical skills,expanding our teams while maintaining our strong culture,strengthening our vendor relationships and bui

75、lding new services and solutions.Together,these investments are setting us up strongly for the years to come,and Ilook forward to the future with great optimism.Sam MuddCEO22 May 20248Bytes Technology Group plcOUR BUSINESSOur business modelWhat we doWere a value-added IT reseller,focusing on cloud a

76、nd security software developed by leading vendors.We also provide professional and managed IT services,and hardware,to deliver complete tailored solutions.Bytes Technology Groupcomprises two independent and complementary operating companies.Bytes Software Servicesfocuses on corporate enterprise clie

77、nts,small to medium-sized businesses and public sector customers.Phoenix Softwareserves mainly public sectorcustomers.Our corporate centre drives strategy and provides guidance and support on finance,governance,legal compliance,and sustainability,ensuring our organisations smooth operation and succe

78、ss.Why were different How we do it differentlyWe build lasting,mutually beneficial partnerships with ouremployees,customers and vendors this enables us to achieve consistent growth.We live by our values in all we do:be passionate,act with integrity,work together,be kindand respectful,getbusiness don

79、e and have fun doing it.Our peopleWe employ people who are passionate abouttechnology and our customers,including many who arelong serving and have ahigh level of technical skills.Our experience and expertiseWith more than 30 years of serving the UK IT market,wehaveaccumulated vast knowledge and exp

80、ertise.Ourleadership team is highly experienced.Our vendors and broad product portfolioWe have deep relationships with many of the worlds biggest software companies.We were one of Microsofts first resellers in the UK,and are one of its largest UK partners by revenue.Our trusted relationships with a

81、broad baseofcustomersWe serve customers across the corporate and public sectors,many of whom have been with us for a long time.Ourstrategy isto grow by doing more with our existingcustomers each year,and to win new ones.Putting customers firstWere trusted because we understand our customers and alwa

82、ys act in their best interest.We work with them to provide the right advice for their needs so theycanmake smarter buyingdecisions and meet their businessobjectives throughtechnology.Unique team cultureWere proud of our dynamic,enjoyable and supportive culture.Our people foster talent,enthusiasm,con

83、fidence andteam spirit.Continual investment in our people and technologyWe empower and inspire our employees to fulfil their potential,training them on the latest technologies and providing a clear career path.We strive to stay ahead of the technology curve by developing new solutions to meet custom

84、ers emerging needs.Sustainable approachOur commitment to sustainability goes beyond our concerted efforts to cut carbon emissions:volunteering and fundraising forgood causes is an integral part of our culture.How this creates valueCustomersEngaged partnerships,supporting customers growth aspirations

85、NPS 82EmployeesFulfilled,engaged employees in an enjoyable,healthy andethical workplace eNPS71ShareholdersConsistent dividends in line with policy and attractive returns from special dividends 18.5%3-year CAGRCommunitiesContribution to localemployment andcommunities 1,500hours volunteeredVendorsTrus

86、ted partnerships and shared knowledgeAnnual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT9Our strategyWe aim to grow organically by winning new customers and doing more for existing customers.We will complement this approach,as appropriate,with carefullyselected ac

87、quisitions that boost our value.Our strategy is rooted firmly in our meaningful values and in our purpose,which is toempower and inspire our people to fulfil their potential,so they can help ourcustomers make smarter buying decisions and meet their business objectives through technology.Underpinning

88、 this foundation are our long-standing,trust-based relationships with our customers and vendors,our investment in our people,and our dynamic,customer-focused culture.Our strategy islinked to,and measured by,our key performance indicators.Winning new customers 683customers delivering 5.1m new gross p

89、rofitDoing more for existingcustomers 11.1madditional gross profit generated from existing customersNew customer winsincludeCustomers who asked us to do more include From AI to cybersecurity,technology continues to advance rapidly.We invest ininnovation to help our customers stay ahead of the pace o

90、f change,manage the risks and make the most of the benefits.Sam MuddCEO10Bytes Technology Group plcOUR BUSINESSWe pursue our strategy by focusing on three key areas:putting customers first,investing in our people and our business and investing in innovation.Putting customers firstWe focus relentless

91、ly on our customers,helping them find innovative ways to use technology to improve the way they work,to control costs and to deliver a better service to their own clients.This means we:Give them impartial,expert advice for their needs based on our knowledge of the leading products and services of hu

92、ndreds of leading vendors Aim to exceed customer expectations,always we see ourselves as part of their team Keep up with the latest technologies and standards to meet customers evolving preferences.This year:We continued to win new customers and increase theamount of work we did for existing custome

93、rs.Our customers great experiences with us encouraged many tohighly recommend our services,with our customer net promoter score(NPS)increasing from 77 to 82,high by industry standards.Investing in our people and our businessOur people drive our success:we need to retain our exceptional employees to

94、continue to sell effectively,and to meet our growth ambitions we need to keep increasing our headcount.This means we:Work continually to develop,engage and fulfil our people Maintain a dynamic,supportive and fun culture Remain alert for potential acquisitions that would complement our offering and s

95、upport our strategy.This year:We grew our headcount by almost 13.7%and expanded ourtraining and development programmes.Employee satisfaction remained stable with an eNPS of 71,and staff turnover waslow.We acquired a 25.1%interest in AWS partner Cloud Bridge Technologies,which will complement our mul

96、ticloud business,offering both Microsoft and AWS cloud options according to what fits best with our customers.Investing in innovationFrom AI to cybersecurity,technology is advancing rapidly.We invest in innovation to help our customers stay ahead of the pace of change,manage the risks and make the m

97、ost of the benefits.This means we:Monitor market trends and develop innovative IT solutions that meet customers evolving needs and help them update or supplement their technology Invest in our technical capabilities to be able to give the best advice and support Advance our knowledge and expertise b

98、y partnering with specialist providers,updating our training and hiring employees with specific skills.This year:We continued to invest in the multicloud environment,which enables organisations to use the cloud systems of more than one vendor,giving them more flexibility to control costs and optimis

99、e performance.By rolling out Microsofts Copilot AI tool to a number of our employees,we improved our own ways of working and our understanding of the technology.And we enhanced our managed security services offerings,which have been in high demand with our customers.Our strategy works because we foc

100、us relentlessly on:Providing and being experts in great value,innovative IT products and services that customers need Identifying and targeting those customers Being straightforward and enjoyable to do business with.Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REP

101、ORT11Our market environmentThe resilience of the technology market was again on show in 2023/24.Despite the challenging macroeconomic environment,spending on IT continued to grow,as businesses looked to technology to make them more efficient,more productive and more secure.With the emergence of tran

102、sformative technologies such as AI,that trend is set to persist.The trends shaping UK technology todayDigitalisationOrganisations are choosing digital technology to improve their operations and create efficiencies.CybersecurityAs online attacks and the risk of breaking privacy laws increase,so does

103、the need for multilayered protection.$5tnforecast worldwide IT spending in 2024The move to the cloudSwitching from on-premise to hosted software offers more flexibility,scope for analytics and sustainable credentials.Cost optimisationInflation-linked vendor price rises andother economic pressures me

104、an customers are looking for greater value.$117.1bn projected revenue in the UK ITservices market in 2028Artificial intelligenceOrganisations are recognising the vast potential of AI-enabled tools to help their people become more productive and creative.One in ten organisations globally hit byattemp

105、ted ransomware attacks in 2023Our target segments9.1%projected compound annual growthrate in the UK public cloudsector from 2024 to 2028Software(94%of GII)We sell both cloud-based software,which is hosted for our customers in third-party data centres,and on-premise software,which is installed on our

106、 customers own networks.In both cases,the vast majority is licensed under subscription agreements,providing ahigh level of repeat(annuity)business.IT services(4%of GII)These include IT-managed services around a wide range of vendor technologies,including 24x7 support for critical security offerings,

107、as well as software asset management services and project-oriented consulting services such as IT deployment assistance,cloud migrations and software cost optimisation.Hardware(2%of GII)We sell a wide range of hardware,including desktops,monitors,mobile phones,servers and networking equipment.12Byte

108、s Technology Group plcOUR BUSINESSGlobal IT spending forecast setto continue risingWorldwide technology spending is expected to rise to$5 trillion in 2024,an increase of 8%from 2023,according to the research firm Gartner,as organisations invest in efficiency and optimisation projects.1 For Europe,th

109、e picture is evenmore positive,with IT expenditure inthe UK,Germany and France forecast togrow by 9.8%in 2024,to$588 million.2“ITspending in Europe continues to be recession-proof,”aGartner analyst noted.Cloud and cybersecurity software and services to leadtheway in 2024/25In keeping with the trend

110、in recent years,software and IT services BTGs main business areas will continue to be the two biggest areas of technology,with each expected to see robust growth.In the UK,revenue from enterprise software,which is mainly cloud-based,is projected to grow by 7.5%3 annually,between 2024 and 2028,the re

111、search company Statista said.Over the same period,spending onIT services should increase by 8.8%.4 Meanwhile,revenues in the public cloud 1 cybersecurity markets are expected to rise by 9.46%and 12.6%respectively.5,6 The investment in security stems from the ever-increasing threat from cyberattacks,

112、with one in ten organisations worldwide hit by attempted ransomware attacks in2023,up from one in 13 in 2022,according to Check Point Research.7 AI to help drive longer-term growthInterest in AI surged in 2023/24,and while it is not yet a major spending priority for many businesses,it is expected th

113、at it soon will be.2 The usefulness of AI as a productivity tool is reasonably well known.But it is the more advanced generative AI(GenAI),which has the power to create output that will be game-changing and will disrupt business models and entire industries,Gartner says.8 The research company predic

114、ts that,by 2026,more than 80%of businesses will have used GenAI alongside their human workforce.9 At BTG,were already using Microsofts Copilot AI tool internally,and were determined to lead the way in helping customers to prepare for and implement the right AI solutions for their needs.Weexpect that

115、 this fast-evolving technology will help drive our growth forthe next decade,and beyond.A focus on cost,value and agilityWhile IT spending has persisted in the challenging economic environment,customers have increased their scrutiny ofpotential new projects,which can take longer to get approved.Ther

116、e is a strong focus on maximising value and,at the same time,controlling costs.This plays to our strengths,because we always focus on what organisations need,not what we want to sell.Customers are seeking flexibility,so they can quickly respond to changes in the business environment.Cloud computing,

117、where the costs can be variable,is attractive for this reason,as is hybrid infrastructure,which offers a mix of on-site and cloud-based systems.Managed services,in particular security,are also becoming increasingly popular,as the expertise required to protect companies from cyberattacks continues to

118、 grow.All of this means we are being asked to provide more guidance and support to customers which is why we keep growing our teams and investing in our technical capabilities.How we fit into the UK technology sectorWere one of the UKs leading value-added resellers(VARs),providing IT products from a

119、 broad range of technology vendors to a large and diversified base of corporate and public sector organisations.Our potential market is large.UK business-to-business customers buy the majority of their technology products from VARs and other resellers and distributors.Currently,our share of the UK V

120、AR business isstill in single digits.And because no one company dominates the market,we have a lot of room to expand.For vendors,there are several advantages to selling through companies like ours,rather than directly to customers.Wecan promote their products using our skilled salesforce,market to t

121、housands of customers,advise on latest customer requirements and work on promotional campaigns with them.Our partnerships with vendors also benefit our customers because the discounts and rebates we receive from the vendors enable us to charge lower prices.This saves money for ourcustomers and deepe

122、ns our relationships with them.Case studyAnnual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT13Advising our customersHelping CFC Underwriting boost its cybersecurity Its great working with Bytes.It feels like we are two companies that are closely aligned they under

123、stand what we are trying to achieve and our goals over the next few years.Andy Clarke,Technology Operations Manager,CFC UnderwritingCFC Underwriting delivers specialist insurance products and is trusted by more than 130,000 businesses around the world.Like many businesses after the pandemic,CFC had

124、embraced hybrid working,with employees operating from home and in the companys offices in theUK and overseas.But the existing technology infrastructure did not adequately support this new wayof working,especially when it came to security.We did not have the resilience we needed for our business,and

125、we wanted greater visibility of our network traffic,says Andy Clarke,Technology Operations Manager at CFC.Weneeded something that would meet our current challenges and scale with us as we grow our business.Thats the reason we reached out to Bytes.The Bytes team set about understanding what was neede

126、d from a technical,commercial and time perspective.Together with CFC,they agreed that the best solution was a Secure Access Service Edge,or SASE,a cloud-based architecture that delivers network and security services to protect users,data and applications.Guiseppe Damiano,pre-sales solution consultan

127、t at Bytes,said a second big consideration was ensuring the proposed technology would not disrupt the existing environment,users and applications.You want to solve the problem at hand without introducing any new ones.Using their expertise and understanding of the business,the Bytes team was able to

128、identify the suitable vendors before moving ahead with the implementation of the SASE.The result?Another highly satisfied customer that considers Bytes as our trusted partner.14Bytes Technology Group plcFEATUREUsing modern technology to make council services more accessible Being able to work flexib

129、ly is really important because my job is all around people and noteveryone is available between nine and five.It enables me to be able to deliver the service to those people.Karen Sweeney,Senior Homelessness Prevention&Intervention Officer,St Helens Borough CouncilPhoenix has worked with St Helens B

130、orough Council for years.When the council wanted to realise the benefits of using modern technology,Phoenix worked alongside it to implement the solutions it needed.The council created a detailed ways of working programme to highlight the areas it needed to focus on to improve processes and inclusiv

131、ity.Phoenix supported this journey,ensuring the modernisation of St Helens Borough Councils infrastructure,devices and data platforms.With an alignment of Microsoft Power BI and SQL,the processes are now simpler and more effective,for the benefit of its employees and the residents they serve.Having

132、Phoenix as a trusted partner from a strategic perspective is really important,says Ste Sharples,AssistantDirector,People Management,ICT and Digital,StHelens Borough Council.I can approach them on a technical level and that trusted relationship we have had over the years means I am guaranteed to get

133、the right advice.Following the process improvements,Phoenix provided thecouncil with a simple rollout of Microsoft Surface devices,Azure cloud infrastructure and Microsoft 365.Since implementation,these products have driven cost savings,improved sustainability practices and increased collaboration.C

134、raig Taylor,Director of Cloud Solutions at Phoenix,says the relationship between St Helens,Microsoft and Phoenix was critical to the success of the project.Its resulted in excellent staff and citizen engagement,and I think a lot of councils can learn from St Helens because they have done itwith such

135、 conviction.Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT15FinancialMeasuring progressWe track our progress against financial,strategicand sustainability KPIs.Gross invoiced income(GII)1 1,823.0m+26.7%Revenue2,3 207.0m+12.3%2024 1,823.0m2023 1,439.3m2022 1,2

136、08.1m2021 958.1m2024 207.0m2023 184.4m2022 145.8m2021 393.6mAdjusted operating profit(AOP)4 63.3m+12.2%Gross profit(GP)145.8m+12.5%2024 63.3m2023 56.4m2022 46.3m2021 37.5m2024 145.8m2023 129.6m2022 107.4m2021 89.6mOperating profit 56.7m+11.4%Cash 88.8m+21.6%2024 56.7m2023 50.9m2022 42.2m2021 26.8m20

137、24 88.8m2023 73.0m2022 67.1m2021 20.7mGross margin3 70.4%AOP as a percentage of gross profit 43.4%2024 70.4%2023 70.3%2022 73.7%2021 22.8%2024 43.4%2023 43.5%2022 43.2%2021 41.8%Cash conversion5 104.3%2024 104.3%2023 84.3%2022 131.9%2021 130.7%1 Gross invoiced income is a non-IFRS financial measure

138、that reflects gross income billed to customers,adjusted for deferred and accrued revenueitems.The reconciliation of gross invoiced income to revenue is set out in note 3(b)to the consolidated financial statements.2 Revenue is reported in accordance with IFRS 15 Revenue from Contracts with Customers.

139、Under this standard,the Group is required to exercise judgement to determine whether the Group is acting as principal or agent in performing its contractual obligations.Revenue in respect of contracts for which the Group is determined to be acting as anagent is recognised on a net basis,i.e.the gros

140、s profit achieved on the contract and not the gross income billed to the customer.3 The 2022 figures for revenue and gross margin reflect the change in accounting policy under IFRS 15,which took effect from that year and has been applied in all subsequent periods.4 Adjusted operating profit is a non

141、-IFRS alternative performance measure that excludes from operating profit theeffects of significant items ofexpenditure which are non-recurring events or do not reflect our underlying operations.IPO costs,(2020/21 only)amortisation of acquired intangible assets andshare-based payment charges are all

142、excluded.Thereconciliation of adjusted operating profit to operating profit is set out in note 2(b)to the consolidated financial statements.5 Cash conversion is a non-IFRS alternative performance measure that divides cash generated from operations less capital expenditure(together,free cash flow)by

143、adjusted operating profit.16Bytes Technology Group plcOUR BUSINESSStrategicSustainabilityCustomer numbers 5,978+0.6%Employee numbers 1,057+13.7%2024 5,978 2023 5,941 2022 5,330 2021 5,147 2024 1,0572023 9302022 7732021 685Average gross profit per customer 24,400+11.9%Employee net promoter score 7120

144、24 24,4002023 21,8002022 20,1002021 17,4002024 712023 702022 692021 69Renewal rate 109%2024 109%2023 116%2022 111%2021 107%As part of our ongoing commitment to support positive change in our environment and communities where we operate,we continue to make contributions in various ways to corporate s

145、ocial responsibility activities.Customer net promoter score 822024 822023 772022 642021 63%GP from existing customers 97%2024 97%2023 96%2022 93%2021 95%Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT17Our people,customers and vendorshelped us achieve anotheri

146、mpressive yearBytes Technology Group plc18REVIEW OF THE YEARReview of the year20 CFOs introduction22 Operational review26 Financial review30 Sustainability review32 Our people36 Our communities38 Our planet44 Task Force on Climate-related Financial Disclosures(TCFD)53 Risk report 63 Non-financial in

147、formation and sustainability information statement64 Our viability statement 65 Section 172 statementFINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT19Annual Report and Accounts 2023/24CFOs introductionDuring the year,we continued to focus on three areas that drive our business:providing qualit

148、y service and doing more with our customers,staying close to our primary vendors and investing in our people.This allowed us to achieve good financial results,despite uncertainty in the broader market.I am proud of the efforts of the team across BTG that allowed us to increase our gross profit by 12

149、.5%to 145.8 million in 2023/24,and our gross invoiced income by 26.7%to 1.8 billion.We grew our adjusted operating profit by 12.2%to 63.3 million and ended the year with strong cash conversion at 104.3%.Broadening our customer base withnotable contract winsOur track record of service excellence help

150、ed usachieve our goal of doing more business with eachcustomer this year.Gross profit from existing customers increased by 11.1 million,these customers making up 97%of our total gross profit.The balance of our gross profit growth at 5.1 million came from new customers,supporting our overall strategy

151、 of doing more with existing customers andwinning new ones.One of the highlights this year was winning several major,multi-year contracts with government organisations,including the NHS and HMRC.Thissupports our long-term sales strategy and adds toour strong repeat(annuity)income.While these contrac

152、ts are typically won at reduced margins due tothe competitive nature of the tenders,we are confident that they will open up additional software,hardware and service opportunities over time.The growth this year was spread across the business,with the gross invoiced income in software,services and har

153、dware increasing by 27.9%,8.6%and 8.1%respectively.We grew by17.6%in the corporate sector,and by 32.8%inthepublic sector.Our continued disciplined approach to cost management and operating efficiency is evidenced by our adjusted operating profit(AOP)to gross profit(GP)ratio of 43.4%(2022/23 43.5%).A

154、ndrew HoldenCFO20Bytes Technology Group plcREVIEW OF THE YEARContinued robust demand in our market The world in general this year was marked by uncertainty and unease.The war in Ukraine continued and conflict erupted in the Middle East.Inflation started to fall but interest rates did not.Whilethese

155、issues have had no material impact onour business so far,we continue to keep a close eye on the external environment while it remains souncertain.We did see some reticence about committing to new investments in hardware,but because of our heavy focus on software,a largely subscription model that acc

156、ounts for around 94%ofour business,this did not noticeably affect us.Indeed,demand from public sector customers and corporate customers from all sectors remained robust,as organisations sought to boost their efficiency and productivity through technology.Investing for future growthOur biggest invest

157、ment is in people.As a consistently growing business,we need to attract and retain the right people so we can maintain our high levels of service as our customer base expands.During 2023/24 we increased our headcount by 13.7%,from930 to 1,057 across the business,including salesand support,which came

158、 on top of a 20.3%headcount increase in the previous financial year.Wespent a lot of time and effort on integrating andtraining our new employees,making sure they understood our culture,which is integral to our business.Its about high performance and high reward as well as flexibility and enjoyment.

159、We invested in our existing workforce too.Besides training,this included identifying and promoting talented people into leadership roles,to give ustheright managers for the larger team.We also invested in our workspaces and our cloud capabilities.In March 2023,we opened an office in the City of Lond

160、on,bringing us closer to prospective employees and customers,and in April 2023 we acquired a 25.1%interest in Cloud Bridge Technologies,an AWS partner,as part of our multicloud strategy.Looking aheadThanks to all the investments in people and systems that weve made in recent years,as well as our str

161、ong culture and the positive trends in our sector,Im confident we will be able to keep expanding our business in the coming year.However,we know that as we grow,processes and internal controls need to evolve too so that they keep in step with the larger business.Since we listed the company in 2020,w

162、e have been taking ongoing steps to strengthen our processes and internal controls,including around risk and governance,and embedding them into thenew systems we are implementing in 2024/25.This will include increased automation and greater efficiency in a number of areas as we increase ourvolume of

163、 business.Andrew HoldenCFO22 May 2024 Demand from corporate andpublic sector customers,across all sectors,remained robust as organisations sought toboost their efficiency and productivity through technology.Strong cash management We are fortunate to operate in an environment where,for the most part,

164、customers pay us before we are required to pay our suppliers.This means we dont have to borrow to fund ourgrowth and carry a certain amount of cash on the balance sheet on a day-to-day basis.Byactively managing our cash reserves on the money markets this year,when bank deposit rates rose to more tha

165、n 5%,we earned 5.1 million in interest.This offset the increase inour tax charge which was dueto both growth in profits and the rise in the corporate tax rate from 19%to 25%towards the start of our financial year.As a result,ourEPS has grown by 15.8%.Annual Report and Accounts 2023/24FINANCIAL STATE

166、MENTSSTRATEGIC REPORTGOVERNANCE REPORT21Operational reviewOur two complementary businesses share one culture,and deepcommitment to our people,our customers and our vendors.In2023/24,this again proved to be a winning formula.Both Bytes and Phoenix expanded on all fronts as we increased our customer n

167、umbers,headcount,gross profit and our offerings.Strong demand from the corporate and public sectorsAmid robust demand from existing and new customers,Bytes and Phoenix grew strongly across software,hardware and services,led by:Security as cyberattacks and threats continue to mount,businesses continu

168、e to invest in a wide array of advanced tools and managed security services,to strengthen their defences Subscription software most software contracts are now based onsubscriptions,rather than one-off licences,providing a strong annuity-based revenue stream Cloud-based solutions organisations contin

169、ue to migrate their systems to the cloud while also seeking to manage costs and take advantage of the latest cloud-based technologies,including AI,which bolsters our annuity business given its repeat nature Hybrid infrastructure to better manage their entire IT ecosystem,businesses combine the secur

170、ity and control of on-site data centres with the flexibility of cloud services IT services increasingly advanced technology has led to greater demand for expert support,from security to compliance,both on a project basis and via annual support contracts.Innovating to provide even betterservice and s

171、olutionsAs our customer base expands,we need to be innovative to maintain our high level of service,and to create new solutions to help our clients get the most out of the latest technology.A good example of thisis Bytes Marketplace platforms.Extending this offering from the existing Microsoft CSP p

172、latform,both businesses have added Adobe Marketplace in 2023/24.These platforms offer a one-stop shop that allows customers to self-serve their Microsoft and Adobe subscriptions,giving them greater control and clarity over costs and a more personalised experience,while Bytes continues to manage the

173、order processing and billing.Phoenix,meanwhile,has boosted its technical capabilities and professional services.This includes the governance,risk and compliance service,which helps organisations to keep their users and theirclients safe from the risk of data compromise and regulatory breaches.Both B

174、ytes and Phoenix continued to develop their strong managed security services,in partnership with leading vendors,as the risk of cyberattacks continues to increase.Using AI tools to boost ourproductivity and help ourcustomers boost theirsAs a Group,we were invited by Microsoft to form part of its ear

175、ly access programme for Copilot,the AI-supported tool that uses large language models and an organisations data to boost productivity.One hundred of our employees 50 each from Bytes and Phoenix started using the premium version of Copilot during the year,learning how it could help them in their day-

176、to-day tasks.While this is good for us internally,it also gave us valuable experience and insights before rolling out the product to our customers,who have expressed great interest in the technology.Bytes and Phoenix each held webinars for existing and prospective customers about Copilot,with more t

177、han 2,000 people registering to attend.We believe AI products,including GenAI,which enables users to quickly create content,will be a big driver for ourbusiness in the years ahead.What Bytes and Phoenix share:BTGs values,strategic ambitions,governancestructures Insights and good practice Industry-le

178、ading skills Can-do culture Representation and engagement in Group ExecutiveCommittee and steering committees Comparable products and services.The businesses have their own:Identities Management teams Individual but complementary routes to market Customer bases and markets Offices.22Bytes Technology

179、 Group plcREVIEW OF THE YEARExpanding our teams and strengthening our cultureWeve continued to invest in our teams to serve our ever-growing business,passing the 1,000-employee mark for the first time.The headcount at Bytes and Phoenix rose by 14%and 13%respectively,impressive numbers in a competiti

180、ve jobmarket.Our apprentice and sales academy schemes continue to grow and are creating a strong pipeline of talent.We also recruited people with specialist skills,including AI,to ensure we stay ahead of the technology curve and ready to respond to customer demand.Both businesses have worked hard to

181、 ensure that our culture is protected and maintained asthey grow,through their onboarding programmes,training and,in the case ofPhoenix,the use of a specialist cultureconsultant,Craft Your Culture.Read more on pages 32 to 33.Key factsEmployees631Customers3,344HQLeatherhead,SurreyMarkets Corporate an

182、d public sectors across a broad range of industries,including professional services,manufacturing,retail,central and local government,and technology,mediaand telecoms.VendorsSome of our partners Microsoft,AWS,Check Point,Mimecast,Adobe,Darktrace,Palo Alto and Security HQ In the AI gold rush,were sel

183、ling the equivalent of picks and shovels.That meansusing our own experience with AItoprovide advice and guidance on preparation all the way through to implementation and deployment.Jack WatsonMD BytesKey factsEmployees420Customers2,634HQPocklington,North YorkshireMarkets Mostly public sector,across

184、a wide range of areas,including central and local government,charities,education,emergency services,healthcare and housing.Its own License Dashboard offering has clients in the US and Canada.VendorsSome of our partners Microsoft,VMware,Dell,Adobe,Sophos,Citrix,Mimecast,Rubrik,ServiceNow,Tanium,Wasab

185、i and Verkada Expanding our team while safeguardingourculture ensures we sustain the spirit ofcollaboration andexcellence somethingthat trulydefines Phoenix.Clare MetcalfeMD PhoenixAnnual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT23Operational review continuedDo

186、ing more with existing customers and winning new onesOur close customer relationships are crucial to our success.We monitor our progress using three key metrics:customernumbers,our share of their business and our customer net promoter score(NPS).Growing our business in 2023/24In keeping with our str

187、ategy of expanding our business with existing customers and winning new ones,we:Total number of customersMaintained a high renewal rate 5,978This year5,941Last year 109%This year 116%Last yearWe did business with a number of new customers this year including Trainline,RSS Global and OCS atBytes and

188、Thames Valley Police,Aberdeenshire Council and Northern Trains at Phoenix.This metric tracks the growth in gross profit from existing customers.Phoenix did more business with established customers such as Lancashire County Council,CityofLondon and University of Essex,and Bytes withCostain,Anglian Wa

189、ter and CFC Underwriting.Improved our NPS Increased gross profit per customer 82This year77Last year 11.9%Across the GroupThe score measures the likelihood of our customers recommending us to others and can range from-100 to+100.We strive to create lasting relationships with our customers.However,th

190、e marketplace is competitive,and they are not tied to us.For that reason,we try not to depend too much onspecific customers.In 2023/24,no single customer represented more than 1%of our gross profit.A trusted partner to our customersWere dedicated to helping our customers use the latest technology to

191、 improve their businesses.Its about much more than just greater productivity and efficiency;we also want to save them money,secure their systems and data as cyberattacks increase,and make them more sustainable in a world threatened by climate change.Our customers choose Bytes and Phoenix,and stay wi

192、th us,because:We always act in their best interest.We dont sell to customers what we want we provide what they need.We understand their business.Our people are experts in abroad range of the latest technology.Theyre also experts in their customers,because we give themthe time to really understand ea

193、ch customer,andthecustomers industry.We provide continuity and a friendly,can-do culture.Given our high staff retention rates,our customers often deal with the same account manager and team,year afteryear.We propose solutions to problems and bring apositive attitude.We are committed to excellence an

194、d honesty.We always aim to exceed our customers expectations but,ifwe dont or we make a mistake,were honest about it andtry to fix it quickly.We support wider communities.For many of our customers,especially in the public sector,we go beyond thescope of the project with social value offerings,forthe

195、benefit of local communities.24Bytes Technology Group plcREVIEW OF THE YEARStrong partnerships with industry-leading vendors We enjoy close relationships with the more than 100 vendors who make or distribute the software,hardware and other IT products that we provide to our customers.Some have been

196、with us for several decades,including Microsoft,ourbiggest partner.Others are new companies,and work in cutting-edge areas such cybersecurity and AI.In 2023/24,we saw robust demand for cloud services,including Microsoft Azure and AWS,and for cybersecurity solutions,where we did more with Sophos,Crow

197、dstrike and Palo Alto.At Phoenix,our Microsoft business grew rapidly across all product areas.In addition to our other main vendors,we also strengthened our partnerships with ServiceNow,Tanium,Wasabi andVerkada.Awards in 2023/24Bytes Mimecast VAR Customer Excellence Partner of the Year 2023 Forcepoi

198、nt Partner Excellence Award 2023 Tenable Growth Partner of the Year 2023 Rubrik Top Growth Partner of the Year 2023 Check Point Cloud Partner of the Year 2023Phoenix Microsoft Global Modern Endpoint Management Partner of the Year Award 2023 VMware Industry Award 2023 winner Sophos Public Sector Part

199、ner of the Year Award EMEA North 2023 Adobe Best Retention Program 2023 Bitdefender Marketing Campaign of the Year Award 2023Why our vendors partner with usWere independent of the vendors whose products we sell,so were impartial when making recommendations to our customers.At the same time,we consid

200、er the vendors to be our partners,and we work hand in hand with themto deliver the best results for our customers.Vendors choose to workwith Bytes and Phoenix because we:Continually invest in training and development.That means we can promote our vendors products with knowledge and skill.And if we d

201、onthave the right expertise in our business,we hire people who do.Act with integrity.Before committing to a partnership with a vendor,wedo ourdue diligence and make sure that we have the technical deliverycapability and the market to make it worthwhile.Then we deliveron time,against the plan.Collabo

202、rate with them.By hosting seminars and events that bring togetherrepresentatives of leading vendors,we strengthen our mutualunderstanding of the challenges faced by customers,andthetechnologies that can help.Have a strong record of growth.Vendors can see where weve comefrom and where were going and

203、want to align with that.Some of our top vendors:We have always considered ourselves to be a trusted advisor to our customers.And today,when customers have more choice than ever before in terms of vendor product solutions,they need our advice.Jack WatsonMD BytesAnnual Report and Accounts 2023/24FINAN

204、CIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT25Financial reviewIncome statementYear ended 29 February 2024mYear ended 28 February 2023mChange%Gross invoiced income(GII)1,823.0 1,439.3 26.7%GII split by product:Software1,722.01,346.1 27.9%Hardware41.438.3 8.1%Services internal131.528.510.5%Service

205、s external228.1 26.4 6.4%Netting adjustment(1,616.0)(1,254.9)28.8%Revenue207.0 184.4 12.3%Revenue split by product:Software130.4 114.1 14.3%Hardware41.4 38.3 8.1%Services internal131.528.510.5%Services external23.7 3.55.7%Gross profit(GP)145.8 129.6 12.5%GP/GII%8.0%9.0%Gross margin%70.4%70.3%Adminis

206、trative expenses89.178.713.2%Administrative expenses split:Employee costs71.263.312.5%Other administrative expenses17.915.416.2%Operating profit56.7 50.9 11.4%Add back:Share-based payments5.74.235.7%Amortisation of acquired intangible assets 0.91.3(30.8)%Adjusted operating profit(AOP)63.3 56.4 12.2%

207、Interest income5.1Finance costs(0.4)(0.5)Share of profit of associate30.2Profit before tax61.650.4 22.2%Income tax expense(14.7)(10.0)47.0%Effective tax rate23.9%19.9%Profit after tax46.9 40.4 16.1%1 Provision of services to customers using the Groups own internal resources.2 Provision of services t

208、o customers using third-party contractors.3 Cloud Bridge Technologies 25.1%share of profits since April 2023.How we performed in 2023/2426Bytes Technology Group plcREVIEW OF THE YEAROverview of 2023/24 results2023/24 has seen continued double-digit growth across all our key performance measures.Cust

209、omers have continued to engage with us to support their move into the cloud,or to extend their presence init,with demand for more sophisticated and resilient security,support and managed service solutions.This has resulted in operating profit increasing by 11.4%to 56.7 million(2022/23:50.9 million)a

210、nd AOP growing by 12.2%year on year from 56.4 million to 63.3 million.The adjusted operating profit excludes the impact of amortisation of acquired intangible assets and share-based payment charges,which do notreflect the underlying day-to-day performance of the Group.Gross invoiced income(GII)GII r

211、eflects gross income billed to our customers,with some small adjustments for deferred and accrued items(mainly relating to managed service contracts where the income is recognised over time).We believe that GII is the most useful measure to evaluate our sales performance,volume of transactions and r

212、ate of growth.GII has a direct influence on our movements in working capital,reflects our risks and demonstrates the performance of our sales teams.Therefore,it is the income measure that is most recognisable among our staff,and we believe most relevant to our customers,suppliers,investors and share

213、holders for them to understand ourbusiness.GII has increased by 26.7%year on year,with growth spread acrossall the businesss income streams,but most significantly forsoftware,which remains the core focus,contributing 94%of thetotal GII for the year(2022/23:94%).The Groups already substantial presenc

214、e in the public sector has been bolstered by several very large strategic wins relating to government Microsoft Enterprise Agreements.The Group bids under highly competitive tenders,either for single contracts or for several public body contracts in aggregate,the latter enabling us to gain multiple

215、newclients from a single bid process.This continued high level of government investment in IT,and the Groups success in winning those new contracts,has resulted in ourpublic sector GII increasing by 280.9 million,up32.8%,to 1,137.5 million(2022/23:856.6 million).Our corporate GII increased by 102.7

216、million to 685.5 million(2022/23:582.7 million),representing a very pleasing rise of 17.6%.This means that our overall GII mix has moved slightly compared tolast year,with 62%in public sector(2022/23:60%)against corporate of 38%(2022/23:40%).RevenueRevenue is reported in accordance with IFRS 15 Reve

217、nue fromContracts with Customers.Under this reporting standard,weare required to exercise judgement to determine whether the Group is acting as principal or agent in performing its contractual obligations.Revenue in respect of contracts for which the Group is determined to be acting as an agent is r

218、ecognised on a net basis,that is,the gross profit achieved on the contract and not the gross income billed to the customer.Our judgements around this area are set out in notes 1.4 and 1.10 ofthe full-year financial statements for 2023/24 but in summary,software and external services revenue is treat

219、ed on an agency basis while hardware and internal services revenue is treated as principal.It should be noted that GII,gross profit,operating profit,and profit before and after taxes are not affected by these judgements,and neither are the consolidated statements of financial position,cash flows and

220、 changes in equity.With the significant increase in software GII,as noted above,and a squeeze on software margin as noted below,its treatment on a net,or agency,basis,means that the 12.3%increase in revenue in the year is therefore lower than the rise in GII.Gross profit(GP)Gross profit increased by

221、 12.5%to 145.8 million(2022/23:129.6 million).This growth is less than that for GII given the high level of new or renewed GII derived from the public sector and the highly competitive nature of the tendering process,governed under the Crown Commercial Services framework agreements.This has meant th

222、at large software contracts,most notably with Microsoft,have been won or renewed at reduced margins.This tends to be particularly prevalent in the first year of new agreements with public sector entities and,asa result,we have seen a reduction on our GP/GII%in the year to 8.0%(2022/23:9.0%).That sai

223、d,if the impact of the two largest new contracts is removed from the calculation,the percentage rises to 8.9%,virtually in line with last year and demonstrating the continued strong performance of the business in maintaining its margins.Deals such as these are consistent with the Groups strategy of

224、winning new customers and then expanding share of wallet.Our objective is to ensure we build our profitability within each contract over its term,typically three to five years,by adding additional higher-margin products into the original agreement as the customers requirements grow and become more a

225、dvanced.Adding AI products such as Copilot will become part of these contract expansions going forward.This is further enhanced by focusing on selling our wide range of solutions offerings and higher-margin security products,while maximising our vendor incentives through achievement of technical cer

226、tifications.We trackthese customers individually to ensure that the strategy delivers value for the business,and our other stakeholders,overtheduration of the contracts.Our long-standing relationships with our customers and high levels of repeat business was again demonstrated in 2023/24 with 97%ofo

227、ur GP coming from customers that we also traded with last year(2022/23:96%),at a renewal rate of 109%(which measures the GPfrom existing customers this period compared to total GP in the prior period).This demonstrates our ability to increase our share ofwallet with average GP per customer growing f

228、rom 21,800 in 2022/23 to 24,400 in 2023/24.Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT27Financial review continuedAdministrative expensesThis includes employee costs and other administrative expensesasset out below.Employee costsOur success in growing GII

229、and GP continues to be as a direct result of the investments we have made over years in our front-line sales teams,vendor and technology specialists,service delivery staff and technical support personnel,backed up by our marketing,operations,and finance teams.It has been,and will remain,a carefully

230、managed aspect of our business.In addition to continuing to hire in line with growth and to ensure wehave the expertise required to provide our clients with the best service,our commitment to develop,promote and expand from within the existing employee base,giving our people careers rather than just

231、 employment,is at the heart of our progress as a business.This has contributed to long tenure from our employees which in turn supports the long relationships we have established with our customers,vendors,and partners.This is at the very heart of our low employee churn rate,the growth in gross prof

232、it per customer and our high customer retention rate.During the year we have seen total staff numbers rise above 1,000 forthe first time,to 1,057 on our February 2024 payroll,up by 13.7%from the year-end position of 930 on 28 February 2023.Employee costs included in administrative expenses rose by 1

233、2.5%to 71.2 million(2022/23:63.3 million),in line with our GP growth and reflecting the balanced and proportional way in which staff investments are made.Indeed,after excluding share-based payments of 5.7 million(2022/23:4.2 million),the rise was lowerat 10.8%.Other administrative expensesOther admi

234、nistrative expenses increased by 16.2%to 17.9 million(2022/23:15.4 million).This increase included additional spend oninternal systems,professional fees,staff welfare and travel costs.This reflects the costs of running,and investing in,a growing organisation and in operating a listed Group,including

235、 evolving our governance structure,controls,and processes with the support of our professional advisors.Adjusted operating profit and operating profitAdjusted operating profit excludes,from operating profit,the effects of:Share-based payment charges because,while new employee share schemes are being

236、 launched,the charge to the income statement will increase each year.Accordingly,the charge forthe current year has risen to 5.7 million,compared to4.2 million last year.Amortisation of acquired intangibles because this cost only appears as a consolidation item and does not arise from ordinary opera

237、ting activities.We believe that adjusted operating profit is a meaningful measure that the Board can use to effectively evaluate our profitability,performance,and ongoing quality of earnings.Adjusted operating profit in 2023/24 increased to 63.3 million(2022/23:56.4 million),representing growth of 1

238、2.2%.Our operating profit increased from 50.9 million to 56.7 million,equating to an increase of 11.4%.Adjusted operating profit as a percentage of GP is one of the Groups key alternative performance indicators,being a measure ofthe Groups operational effectiveness in running day-to-day operations.W

239、e aim to sustain it in excess of 40%and have achievedthis,with a ratio of 43.4%(2022/23:43.5%).Interest receivable and finance costsThis year has seen significant interest being earned from money market deposits,totalling 5.1 million(2022/23:nil).Our finance costs largely comprise arrangement and co

240、mmitment fees associated to our revolving credit facility(RCF),noting that to date the Group has not drawn down any amount.This balance also includes a small amount of finance lease interest on our right-of-use assets,including the introduction of a staff electric vehicle(EV)scheme.Share of profit i

241、n associateFollowing the acquisition of a 25.1%interest in Cloud Bridge Technologies in April 2023,in accordance with IAS 28 Investments in Associates we have accounted for the Groups share of its profits since the date of our investment,0.2 million for the 11-month period.Profit before taxThe combi

242、ned impact of increased operating profits and high levels of interest received has seen our profit before tax increasing by an impressive 22.2%to 61.6 million(2022/23:50.4 million).Income tax expenseThe 4.7 million(47.0%)rise in our income tax expense to 14.7 million(2022/23:10.0 million)reflects th

243、e growth in profitsdescribed above and the increase in the UK corporate taxrate from 19%to 25%effective from 1 April 2023.Nevertheless,our effective rate of tax at 23.9%is lower than the taxcharge would be at the standard rate,primarily because of deductions available in relation to the share option

244、s exercised by staff during the year.The reconciliation is set out in note 8 to the financial statements.Profit after taxProfit after tax increased by 16.1%to 46.9 million(2022/23:40.4 million),underlining our growth in operating profits and withthe impact of higher taxes more than offset by the inc

245、rease ininterest income.Earnings per shareAs a result of this strong growth in profits attributable to owners ofthe company(post tax),our earnings per share have risen accordingly.Basic earnings per share are up 15.8%from 16.88 pence to 19.55 pence,while adjusted earnings per share haverisen 15.7%to

246、 21.78 pence(2022/23:18.83 pence).The adjusted figure removes the effects of share-based payment charges and amortisation of intangible assets.28Bytes Technology Group plcREVIEW OF THE YEARBalance sheet and cash flowBalance sheetAs at29 February 2024 mAs at28 February 2023 mInvestment in associate3.

247、2Property plant and equipment8.58.4Intangible assets40.641.5Other non-current assets4.91.2Non-current assets57.251.1 Trade and other receivables221.8185.9Cash88.873.0Other current assets11.810.7Current assets322.4269.6 Trade and other payables277.9231.7Lease liabilities0.40.1Other current liabilitie

248、s19.623.9Current liabilities297.9255.7 Lease liabilities1.30.9Other non-current liabilities2.12.6Non-current liabilities3.43.5 Net assets78.361.5Share capital2.42.4Share premium633.7633.6Share-based payment reserve11.07.2Merger reserve(644.4)(644.4)Retained earnings75.662.7Total equity78.361.5Closin

249、g net assets stood at 78.3 million(2022/23:61.5 million)including the Groups 3.2 million interest(25.1%)in Cloud Bridge Technologies(which includes our 0.2 million share of profits since it wasacquired in April 2023).Net current assets closed at 24.5 million(2022/23:13.9 million).This includes growt

250、h in the trade and other receivables of 19.3%,and similar growth in trade and other payables of 19.9%,both reflecting the increase in our GII.Our debtor days at the end of the year stood at 34,down from 37at28 February 2023,and our average debtor days for the year also reduced to 37(2022/23:39).Whil

251、e we have increased our closing loss allowance provision to 2.5 million(2022/23:1.5 million),this is a prudent position given the 35.0 million increase in our gross trade receivables and,in fact,we have come through the year with only 0.3 million in bad debt write-offs against total GII of 1.8 billi

252、on.This strong performance in respect of collecting customer receivables has contributed to the positive cash conversion figuresdescribed below.The Group has paid its suppliers on schedule through the year,withits average creditor days remaining in line with prior year at 47 and standing at 44 at th

253、e end of the year(2022/23:42).The consolidated cash flow is set out below along with the key flows which that affected it:Cash flowYear ended 29 February 2024 mYear ended 28 February 2023 mCash generated from operations67.348.9Payments for fixed assets(1.3)(1.3)Free cash flow66.047.6Net interest rec

254、eived/(paid)4.7(0.5)Taxes paid(15.1)(10.3)Lease payments(0.2)(0.2)Dividends(36.6)(30.7)Investment in associate(3.0)0.0Net increase in cash15.85.9Cash at the beginning of the year73.067.1Cash at the end of the year88.873.0AOP 63.356.4Cash conversion(annual)104.3%84.3%Cash conversion(since IPO)109.9%1

255、12.4%Cash at the end of the period was 88.8 million(2022/23:73.0 million),which is after the payment of dividends totalling 36.6 million during the year being the final and special dividends for 2022/23 and the interim dividend for 2023/24 and after making the 3.0 million investment in Cloud Bridge.

256、Cash flow from operations after payments for fixed assets(free cashflow)generated a positive cash flow of 66.0 million(2022/23:47.6 million).Consequently,the Groups cash conversion ratio for the year(free cash flow divided by AOP)was 104.3%(2022/23:84.3%).Our cumulative cash conversion since we firs

257、t reported as a PLC in 2020/21 stands at 109.9%over the four years,which is ahead of our sustainable cash conversion target of 100%and reflects the Groups longer-term performance against this measure.If required,the Group has access to a committed revolving credit facility(RCF)of 30 million with HSB

258、C.The facility commenced on 17 May 2023,replacing the Groups previous facility for the same amount and runs for three years,until 17 May 2026,with an optional one year extension to 17 May 2027.To date,the Group has not utilised the facility.Proposed dividendsAs stated above,the Groups dividend polic

259、y is to distribute 40%ofpost-tax pre-exceptional earnings to shareholders.Accordingly,the Board is pleased to propose a gross final dividend of 6.0 pence per share.The aggregate amount of the proposed dividend expected to be paid out of retained earnings at 29 February 2024,butnot recognised as a li

260、ability at the end of the financial year,is14.4 million.In light of the companys continued strong performance and cash generation,the Board also considers it appropriate to propose a cash return to ordinary shareholders with aspecial dividend of 8.7 pence per share,equating to 20.9 million.If approv

261、ed by shareholders,the final and special dividend will be payable on Friday,2 August 2024 to all ordinary shareholders who are registered as such at the close of business on the record date ofFriday,19 July 2024.Annual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT2

262、9 This has been an excellent year for progress in environmental andsocial goals.In fully understanding and quantifying our carbon emissions across Scope 3 and submitting our targets toSBTi,wehave achieved two big milestones.Lisa Prickett,Group Sustainability Manager At Phoenix,we take sustainability

263、 seriously.Ourinvestments this year have opened up opportunities to reduce our carbon emissions and build new partnerships to make a positive impact in our customer communities.Jennifer Clewley,Sustainability Lead,PhoenixSustainability review30Bytes Technology Group plcREVIEW OF THE YEARWere a respo

264、nsible business,with a duty to everyone who works for us,with us and around us.This philosophy is underpinned by our core values of integrity,respect and kindness.We strive to do the right thing by our people,our communities and our planet.Our peopleWe aim to attract,engage and retain employees,help

265、ing them build fulfilling and rewarding careers in a supportive and fun environment.Our headcount rose from 930 to 1,057.Our employee net promoter score reached 71.Read more on pages 32 to 35Our planetIn our own actions,and by supporting our customers to use IT more sustainably,were helping to prote

266、ct the planet for future generations.We made major progress in more fully measuring our Scope 3 emissions the indirect emissions across our value chain.We submitted our carbon reduction targets to the Science Based Targets initiative for validation.Read more on pages 38 to 43Our communitiesBy extend

267、ing our long track record of volunteering our time and giving money in the areas where we work,were creating stronger communities.Our people devoted more than 1,500 hours to voluntary work.We donated money and goods to numerous good causes,from the TurkeySyria earthquake appeal to charities supporti

268、ng young people frommarginalised communities.Read more on pages 36 to 37Our Sustainability Framework Our Sustainability Framework is published as a separate document and is available at .We support all the UN Sustainable Development Goals,but focus on the seven where we can have the most impact:Annu

269、al Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT31Sustainability review continuedOur peopleOur talented people drive our success as a business,and we strive tohelp them build fulfilling careers,with clear progression paths.In 2023/24,for the first time,we had more

270、than 1,000 employees,as we continued to expand our teams to serve our growing customer base.Two leading brands,one set of valuesOur two businesses,Bytes and Phoenix,have 631 and 420 people respectively.Each business operates autonomously and has its own identity,headquarters and management team,but

271、they have many commonalities.These include similar employment policies,industry-leading knowledge and,most importantly,the same values and culture.The businesses also look for opportunities to share good practice and insights,for the benefit of BTG.Communicating with ouremployeesAlong with the regul

272、atory announcement tothe market,communicating with employees was one of our primary concerns after the former CEOs resignation.New CEO,and former MD Phoenix,Sam Mudd communicated with all staff to introduce herself to those at Bytes and reassure employees that Neils resignation would have minimal im

273、pact on the continuity of the business.We also prepared an interview piece about Sam that went out to all employees.Throughout this period,Samled by example with her honest,open approach,which helped all managers and employees do the same.We were pleased to hear that people generally feltthat the si

274、tuation was,aswecharacterised it,the actions ofoneindividual and was in no way areflection on the company or the restofthe BTGteam.Growing our great teamEvery year our customer base grows and the technology powering the products we provide evolves.To keep offering the high levels of service and expe

275、rtise for which we are renowned,we also need to expand and adapt.That means recruiting new people with a passion for technology,aswell as training and retaining our existing employees.Apprenticeships are an important and successful part of our efforts to develop our talent from within.This year,for

276、the first time within Bytes,wehad people doing degree apprenticeships gaining valuable work experience whilethey study a development that we are really pleased with.Clare Wicks,Career Pathway Manager,Bytes50%of our people participate in ourSharesave schemes32Bytes Technology Group plcREVIEW OF THE Y

277、EARImpressive outcomes from our Great Place toWork surveys Based on staff surveys,Phoenix was certified as a Great Place to Work inthe 2021/22 financial year,and Bytes followed a year later.We continued to generate impressive survey results this year,with 94%of employees at Phoenix and 87%at Bytes a

278、greeing that they work at a great place,compared to 54%of employees at a typical UK-based company.Both businesses featured in the following Best Workplaces lists this year too:women,wellbeing and tech.In addition,Phoenix wasranked seventh in the UKs BestWorkplaces among large organisations,and Bytes

279、 moved upten places in the same overall rankings during the year.This year,we increased our headcount byalmost 14%,to 1,057.Were proud of the loyalty ofour people,many of whom have been with us for a long time.We ran new apprenticeships in HR,marketing,sustainability,governance and business analysis

280、 in 2023/24 and,across the Group,doubled the degree-level apprenticeships we offer.Apprenticeships are an important and successful part of our efforts to develop our talent from within,and our new employees included 15 sales and technical apprentices across our two businesses.This year,and for the f

281、irst time within Bytes,we had four people doing degree-level apprenticeships gaining valuable work experience while they study a development that we are really pleased with.With many new people joining us,it wasimportant to make sure we had thecapacity to integrate them,to offer support and to help

282、them understand ourculture.Our induction programmes,which run over several weeks,are designed to get people quickly up to speed with our way of working.All our managers receive training on how to onboard employees,and this year weappointed leaders in the various departments to provide additional sup

283、port.Other measures include pairing new staff with an experienced buddy,introductory meetings with department heads and directors,and a check-in from the welfare manager after a few months.Rewarding our people,whatevertheir rolesWe pay our people fairly,but we also reward high achievers and those wh

284、o gothe extra mile for our customers and colleagues.Our employee recognition programmes,based on the achievement of business objectives,both for sales and non-sales staff,include prizes such as a scuba-diving trip to Malta.We also offer awards for employees of the month and people who are seen to be

285、 living our values in all they do at work.At Bytes thisyear,eight people recognised for supporting their colleagues wellbeing were rewarded with a stay at a wellness spa near Lake Garda in Italy.We also recognise and reward long service.This year,Phoenix aligned its policy with Bytes,to give an addi

286、tional day of annual leave for anyone who has been with us for five years,rising to an extra five days paid holiday for those with 25 years ofservice.In June 2023,we launched our third Sharesave scheme,which was again wellreceived.More than half our staff have participated in one or more of these pl

287、ans.Taken together,all these initiatives contribute to our high employee net promoter score(eNPS)of 71,which measures the likelihood of people recommending their employer to others.Our values Be passionate about our employees,vendors and customers Act with integrity at all times Work together and co

288、llaborate across teams Be kind and respectful to all people,all of the time Get business done and havefundoing itAnnual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE REPORT33Sustainability review continuedSupporting wellbeing and promoting good mental healthWe do all we c

289、an to support the health and happiness of our people.They can,for example,use the free or subsidised gyms at or near our offices,and buy reduced-price bicycles through our cycle-to-work programme.In our offices we provide freefruit and healthy meal options.We take mental health seriously,encouraging

290、 openness and providing support for anyone who needs it.We have a 24/7 employee assistance programme,offer up to two extra days of discretionary paid leave for people in difficulty,and our designated wellness ambassadors are always available for a chat.This year weheld informative sessions for staff

291、 about mens mental health,menopause and,given the high cost of living,financial wellbeing.Our managers also received training on mental health issues,and an introduction to neurodiversity.Our hybrid-working policy which,with their manager,lets people determine the best approach for them and the busi

292、ness contributes to wellbeing.People whose role doesnt require them to be fully office-based can spend around half their hours working remotely.We believe this gives usand our people the best of both worlds:the benefits of collaboration,innovationand social interaction in the office,with the flexibi

293、lity and positive work-life balance that comes from beingat home.282new BTG employees this year34Bytes Technology Group plcREVIEW OF THE YEARHelping our people fulfil theirpotentialWe want all our people to reach their potential.Every employee,whatever theirrole,is given an opportunity to be support

294、ed on a personal development plan.We provide regular opportunities fortraining,which not only benefits our employees,but also the business,since we can offer our customers greater expertise.In addition,public sector tender frameworks require us to have certain accreditations,and vendors payus higher

295、 rebates if we are well accredited.At Phoenix,for example,wefocused heavily on digital training thisyear,so all our staff can operate at ahigh level using Microsoft applications.Identifying and developing future leaders is a strong priority for us.At Bytes,we selected 12 people,most aged under 30,to

296、 participate in a programme run by an external consultant to help develop their leadership skills and style,and we will extend that programme in the coming year.Working towards greater gender and ethnic diversity Providing equal opportunities to people ofall genders and ethnicities is not just somet

297、hing we believe in we see it as our responsibility.In recent years weve made good progress in gender parity.Sam Mudd is our CEO,and Clare Metcalfe the new MD Phoenix.Women now represent 34%of the combined managers at Bytes and Phoenix,and around 40%of our total workforce.By comparison,across the UK,

298、less than a third of people in the technology sector are women.1 At a Boardlevel,our gender balance was 50%at year end,compared with 29%atthe end of 2022/23.Weve also seen progression in the types of roles women hold at BTG for example,we have more women entering technology sales positions,which are

299、 typically better paid.As part of our commitment to encourage more women to enter the technology sector,we work with local schools and attend events that promote women in IT.We are also trying to become more ethnically diverse,though progress hasbeen slower than with gender.Ourworkforce has a higher

300、 proportion of people from a White British ethnicity than reflects UK society as a whole,but it does reflect the demographics of the locations of our head offices,in Surrey and East Yorkshire.As part of our efforts to actively encourage more diverse hiring,we provided training this year to our hirin

301、g managers on how to avoid unconscious bias when recruiting.We also work with a specialist agency that helps companies hire people from minority groups.Weve continued to collect data on our ethnicity breakdown,based on voluntary self-reporting from our some of our employees and,in 2024/25,aim to hav

302、e a self-reporting ethnicity option for all employees.We have held awareness activities to promote understanding andinclusion.Our employees created aRamadan awareness session,for example,withpeople taking on a dayof Ramadanfasting.BTG gender balance as at 29 February 2024MenWomen 50%50%Board 50%50%2

303、 2Executive Committee 66%34%Managers2 60%40%All colleagues 18 8 69%31%Executive Committee plus direct reports1 3 3 92 48 633 4241 The Executive Committee plus direct reportsinclude executive directors,our managing directors and their direct reports,comprising individuals for whom they have directlin

304、e management responsibility,excludingadministrative and support roles.2 Managers refers to leaders in BTG,includingExecutive Committee and seniorleadership members.1 womenintech.co.uk/women-in-tech-survey-2023 1,057BTG total headcountAnnual Report and Accounts 2023/24FINANCIAL STATEMENTSSTRATEGIC RE

305、PORTGOVERNANCE REPORT35Sustainability review continuedOur communitiesOne of the things we are most proud of about our people is their passion for making a real difference in the communities in which we work.Volunteering enriches our local areas,aligns with ourgoal of supporting social causes andbuil

306、ds the reputation of our businesses.Its also really enjoyable andrewarding for our employees andenhances their wellbeing.In addition,as part of BTGs commitmentto support positive change inour environment and communities where we operate,we continue to make financial contributions in various ways to

307、corporate social responsibility activities.Giving our time to help othersVolunteering is at the heart of our community work.We give everyone one fully paid volunteering day a year to help causes that are close to their hearts.And many of them use this opportunity to do awide range of wonderful work.

308、At Bytes,for example,more than 100 people spent time helping at an animal charity close toour office in Surrey.The Wildlife Aid Foundation,which is one of the UKs busiest wildlife rescue and rehabilitation centres,needed assistance in moving to a bigger site,so over the summer our staff got their ha

309、nds dirty planting trees and hedgerows and building ponds and pathways.Thework was greatly appreciated and,besides the satisfaction of a job well done,our employees also benefited fromgetting to know each other better.Inall,BTG employees contributed morethan 1,500 hours to supporting ourlocal commun

310、ities.We know how much our staff like helping other people so,to make it easier to find ways to do that,we partner with the onHand volunteering platform.This enables people to sign up for missions that take as little as an hour.Among the local causes supported this way in 2023/24 was the Wetherby Fo

311、odbank,and two swimming clubs:East Riding Leisure Driffield and Pocklington Dolphins.Partnering with the Rio Ferdinand Foundation to promote ITtogirlsAt Phoenix,were delighted to have built a partnership with the Rio Ferdinand Foundation,which was set up by the former professional footballer to crea

312、te opportunities for young people to tackle inequality,achieve their personal potential and drive social change.This year,the foundation ran a digital leadership programme for 50 high-school girls from deprived areas of Manchester.We provided a full day of career advice from two women in our cyberse

313、curity team,who talked about what it was like being a woman in tech and what their jobs entailed,before leading some fun digital activities.A few weeks later,the same students came to our offices in Salford,where they received a tour of Media City and took part in several immersive IT activities,inc

314、luding learning about sustainable cities and then putting their knowledge tothe test using Minecraft,and experiencing virtual reality technology.In feedback,the girls said the workshops had really inspired them,and more than three quarters of them said they were thinking about careers in technology.

315、Case study432hours of volunteering byPhoenix staff36Bytes Technology Group plcREVIEW OF THE YEAR1324Raising and donating money forgood causesAs a Group,and through our people,we donate money to charities and institutions that can use it to help others.At Phoenix,we again supported two great causes t

316、his year:St Leonards Hospice and York Special Care Baby Unit.In total our people raised more than 11,000 for them,as well as other charities and causes,including Save the Children,Macmillan Cancer Support and the TurkeySyria earthquake appeal.Fundraising activities included entering several teams to

317、 run the relay event at the Yorkshire Marathon,Christmas jumper day,an Easter raffle,a bake-off,and golf and horse-racing fun days.To further support our local communities,we also sponsored a girls and a boys football team,and held an autumn fair,where nearby businesses were invited to sell their wa

318、res.Many of our employees raise money intheir own time,and were pleased to support their efforts.At Bytes,we match fundraising pound for pound up to 1,000 per employee per event.Bytes supports many good causes but focused on four inparticular this year:the Wildlife Aid Foundation;the Change Foundati

319、on,which uses sport to help marginalised young people;the Rainbow Trust,whichprovides emotional and practical support to families who have a child with life-threatening or terminal illness;and Movember,which raises awareness ofmens physical and mental health.For the Change Foundation,we took part in

320、 the Thames River Kayak Challenge,along with one of our vendors,raisingaround 5,000,and also ran cybersecurity awareness and social media safety workshops for young people supported by the charity.To raise money for Movember,we organised a charity football tournament and set up a barbershop in our o

321、ffice so one of our employees a former barber could give people wet shaves.And forthe Rainbow Trust we held various fundraising activities and promoted awareness among our staff of their amazing work.All four charities were supported through a Christmas fair,where handmade items,baked goods and othe

322、r gifts were sold and proceeds of 330 split between the charities.We also supported the Macmillan Coffee Morning,which was held at Leatherhead,with the charity benefiting from the proceeds of 565.Bytes staff also took on the mighty Dragon Boat racing,supporting Playwise.Bytes also made direct financ

323、ial donations to causes that our staff really care about,including local sports clubs and schools.Because of a laptop refresh,Bytes was able to donate 140 laptops toemployee-nominated non-profit organisations and charities.These laptops have supported Lifeshare,a homeless charity in Manchester,schoo

324、ls and nurseries,local youth groups and a wildlife rescue charity in East Sussex.Delivering social value in areas where we workPhoenix does business almost entirely inthe public sector,and this comes with acommitment to deliver social value where the work is done.We take this responsibility seriousl

325、y and are pleased tobe able to use our skills to make a positive impact on peoples lives around the country.Our social value projects thisyear included building a community directory for charities in Hull,and providing digital skills support for refugees who have been resettled in Lancashire.We held

326、 an event for the Sunderland and County Durham Royal Society for the Blind to demonstrate how technology can help visually impaired people including Seeing AI,a Microsoft application that uses a phone camera to identify and then audibly describe people and objects.We also love working with young peo

327、ple,and this year our education outreach programme involved nearly 2,000 school children and young adults.This included helping young people from disadvantaged backgrounds explore technology,using fun activities to encourage Year 8 girls to take IT as a GCSE subject,and supporting digital bootcamps

328、for young people aged19 and over from minority and disadvantaged backgrounds.Community activities1 Wildlife AidFoundation2 Dragon Boat racing3 Thames River Kayak Challenge4 Christmas fair at Leatherhead1,110hours of volunteering by Bytes staffAnnual Report and Accounts 2023/24FINANCIAL STATEMENTSSTR

329、ATEGIC REPORTGOVERNANCE REPORT37Sustainability review continuedOur planetWe believe that everyone has a part to play in caring for ourplanet.As a responsible business,we are reducing our carbon footprint and helping our customers to do the same.Although we havent identified a material impact to our

330、business through the scenario analyses in our TCFD(see pages 44 to 52),climate change is too important for us not to take action.It is our duty as a responsible business to measure our carbon emissions and undertake initiatives to reduce our impact.It is also expected of us by a wide range of stakeh

331、olders,from investors,employees and customers.Our aim is to reach net zero emissions by 2040 at the latest,ten years ahead of the UK goal of 2050.This year,we made major progress in more fully measuring our Scope 3 emissions the indirect emissions across our value chain.We are now able to report on

332、all the Scope 3 categories relevant to our business,which makes a considerable difference to our overall footprint.This is because we are including purchased goods and services in full,which make up 93%of our total emissions,while Scope 3 overall now makes up over 99.9%of total emissions.This compre

333、hensive Scope 3 reporting isasignificant milestone for us and the culmination of several years of work.It is helping us to better understand the potential effects of climate change on our business and the role we can play in collective efforts to achieve a net zero economy.Our science-based targetsIn 2021/22 we announced our ambition to be net zero by 2040,along with near-term Scope 1,2 and 3 goal