Softcat Interim Profit Up 14% But Falls Short Of 25% Revenue Growth

21st Mar 2018 09:02

LONDON (Alliance News) - UK-based IT infrastructure products and services company Softcat PLC on Wednesday said it recorded a significant increase in revenue and profit in the first half of its financial year, due to a strong market demand, driven by "customer buying behaviour".

Softcat recorded a pretax profit of GBP24.1 million for six months to January 31, up 14% from GBP21.0 million the prior half year 2017. Revenue rose 25% to 472.8 million from GBP378.5 million the prior year. The company said there was a consistent and strong performance across all its customer segments and technology areas.

The improved revenue and profit performance was attributed to higher customer demand for Softcat's security, data storage and computing solutions. Profit failed to keep pace with sales growth, as administrative expenses rose by 25% to GBP50.7 million from GBP40.4 million.

Softcat declared an interim dividend of 3.3 pence, up 14% from 2.9p in financial 2017.

"I'm delighted to report on another very strong period of performance for the company. We are benefiting from strong market demand for all our offerings and from all our major customer segments and continue to relentlessly pursue our simple strategy of doing more business with our existing customers and winning new customers," CEO Martin Hellawell said.

"The second half of the year has started well and the board is confident of meeting its expectations for the full year, but we have some important months ahead and will remain very focussed on continuing to deliver outstanding service for our customers," Hellawell said.

Shares in Softcat were 11% down at 602.00 pence on Wednesday.

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