Bytes Technology Group's share price dropped nearly 30% after warning of lower-than-expected operating profit in the first half of the financial year.
Trading challenges in a tough macroeconomic environment led to deferred customer buying decisions, especially in the corporate sector.
Gross profit for the six months ending 31 August 2025 is expected to be in line with the prior year, while operating profit will be marginally lower.
The impact of Microsoft enterprise incentives changes is more pronounced in the first half, while the benefit from services growth is spread across the year.