Bytes Technology Group (BTG) seeks to achieve consistent profit growth over the medium-term while maintaining its focus on providing a high-quality service to customers and maintaining its positive and dynamic workplace culture.
The company aims to achieve these objectives by:
- Increasing its share of wallet with existing customers: There is a significant opportunity to deepen existing customer relationships and fulfil more of our customers’ overall IT requirements.
- Expanding its customer base: Our leading reputation in the market and suite of accreditations means that we have been successful in winning new customers. The UK IT market is highly fragmented and our share of the core software market is less than 3%, which demonstrates the significant opportunity for further growth.
- Customers grew from 4,330 in FY18 to 4,930 in FY20 (across both the public and private sectors).
Underpinning all of this is a culture which puts customers at its core while also seeking to maintain a dynamic sales culture. This has led to strong employee retention rates, improved productivity, better customer service and “stickier” customer relationships.
BTG intends to execute its strategy of continuing to expand and deepen its customer relationships by:
Increasing the scale and productivity of our sales engine: Our sales team is integral to growing and developing a loyal customer base. We seek to maintain this culture by focusing on developing the skills of new hires within the business, rather than hiring experienced sales staff from other VARs.
Focusing on strength and depth in end markets: We closely follow market trends and develop our solutions offering to meet the changing demands of customers. There is a large addressable market in the UK of more than [42,000] private companies with over 100 employees and an opportunity to develop further our public sector expertise.
Targeted marketing: We market our products and services to new customers across a number of channels, focusing on product areas characterised by higher levels of customer spend.
Delivering repeatable cloud solutions: The market trend towards cloud based solutions, which involves customers purchasing a renewable licence to use a product, provides an opportunity to increase the proportion of gross profit derived from annuity-type revenue streams.
Continued diversification of product offering: Our strong relationships with customers provide us with a deep knowledge of organisations’ requirements and inform our approach in providing and recommending new products by vendor partners. Although historically hardware has only accounted for a small proportion of the Group's gross profit, it is considered to be an area of significant potential growth in the coming years.
Optimising software management capabilities: We have a dedicated team of software asset management consultants and developing this offering further is an important part of the Group’s growth strategy. Our proprietary Quantum tool plays an important role in our SAM offering, providing customers with the data to make informed future decisions in relation to their IT spend.
Maintaining customer service excellence and continuing to develop technical expertise: The key to being able to continue to differentiate ourselves from competitors, is maintaining the level and quality of the customer service we provide. One of the key components of our customer service is the focus on technical expertise and ensuring that customers are given specialist guidance at the point of sale so that they can make informed choices in relation to their IT spend.
Strategic acquisition opportunities: We have a history of carefully considered, successful acquisitions. In 2011 we bought Security Partnerships, a cyber security specialist and more recently in 2017 acquired Phoenix Software, a leading IT infrastructure provider to the UK public sector. Both additions have continued to grow and add value in terms of expanding our customer base and increasing the services capability that we offer. With a growing technology market, there are continuous opportunities to selectively acquire attractive businesses that can bring a complementary service offering or allow Bytes to expand regionally across the UK and we will continue to monitor this space.