Bytes Technology warns on increased cyber risk as profit jumps
Bytes Technology has warned of the increased risk of cyber threats as the Leatherhead-based business reported a jump in profit.
The software supplier has upped the risk level of potential cyber threats to “increase” on its list of emerging risks, adding that it made the move “because of evolving and elevated global risk to IT security.”
The firm added that it had taken “extra mitigation measures” to combat the threat including regular training for staff and changing ownership of the issue to chief technology officers of subsidiary companies.
Bytes also said the rise in the threat level was contributing to “higher levels of interest leading to increased demand” from customers for cybersecurity software, which accounts for as much as a quarter of the company’s sales.
CEO Sam Mudd told CityAM: “Any good CISO would engage with us on a regular basis where we can talk to them about upcoming technology and work with them on their strategy.
“It’s an ongoing boardroom topic where there isn’t a CEO in this country or a business leader that wouldn’t have security front of mind if they’re running a business.”
2025 has seen a growing number of big businesses suffer major cyber attacks. The most prominent in the UK has been the recent attack on retail giant M&S, which saw the company lose more than £1bn from its market cap after being forced to suspend online sales.
M&S warned today that its databases had been compromised, adding: “We are writing to customers informing them that due to the sophisticated nature of the incident, some of their personal customer data has been taken.”
Bytes Technology expands footprint
It comes as Bytes posted a 21 per cent jump in pre-tax profits to £74.6m for the year to end February, along with a 5 per cent rise in revenues to £217m as it benefitted from rising customer demand.
The firm upped its headcount by more than 100 extra staff to 1,245 over the period, as well as expanding its office footprint in Sunderland, Portsmouth and London as it prepared for continued future growth.
“The sustained demand in structural growth areas such as cloud, security and AI, our commitment to customer service, our expanding technical capabilities and our high levels of accreditation underpin our confidence for continued strong growth in our financial year,” Mudd said.
The company guided another year of double-digit gross profit for the 12 months to February 2026.
Bytes Technology shares fell 3 per cent to 534p in early London trade.