24th Mar 2021 09:34
(Alliance News) - Shares in Softcat PLC surged on Wednesday after the IT infrastructure firm posted improved first half profit, upped its payout, and guided for an annual earnings beat.
Shares in the company were 14% higher at 1,779.00 pence each in London on Wednesday morning.
The Marlow, Buckinghamshire-based firm posted a 10% revenue rise to GBP577.0 in the six months to January 31, from GBP524.1 million a year earlier. Pretax profit surged 41% year-on-year to GBP57.0 million from GBP40.5 million.
"We are pleased with the strong performance in the first half of the financial year in which we continued to grow and take share in a market that has remained relatively resilient during the pandemic. We did see a reduction in income from some corporate customers during the last quarter of our previous financial year, but during the current period that effect has gradually diminished," Chief Executive Officer Graeme Watt commented.
Softcat's interim dividend amounted to 6.4p, up 19% from last year's 5.4p.
Softcat added: "Investment in our growth strategy has continued unabated throughout the pandemic and we now carry good momentum into the second half of our financial year. Cost savings related to Covid restrictions are expected to dissipate over the next six months but we are optimistic about the growth opportunity in our market."
It expects annual results to be "significantly ahead of its previous expectations".
By Eric Cunha; [email protected]
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