IT provider Bytes' shares tumble despite NHS and HMRC contract wins

Bytes Technology Group, the IT provider, has reported a surge in income and operating profit as both new and existing clients ramp up their software investments.

For the six-month period ending 31 August, Bytes revealed that its gross invoiced income soared by 13.7% to £1.2bn, with the increase largely attributed to software sales and significant public sector contracts, including those with the NHS and HMRC, as reported by City AM.

Despite this positive performance, the company's shares fell by approximately 6% following an announcement that hardware sales had not fared as well, leading to a 2.9% decline in revenue from £108.7m to £105.5m.

Nevertheless, Bytes saw its operating profit climb by 16.3% to £35.6m, up from the previous £30.6m, while gross profit also rose by 9% to £82.1m.

Sam Mudd, the Chief Executive of Bytes, commented: "I am pleased to report another set of positive results for [Bytes Technology Group], with a