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The Markets
by Proactive
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The Markets
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Proactive UK has moved.
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Hardware & electrical equipment

Softcat jumps on profits beat and special dividend announcement

Shares in Softcat (LSE:SCT), the provider of IT infrastructure products and services, jumped 10.4% after it reported full-year results showing lower revenue but higher profit.

Revenue for the year ended 31 July came in at £962.6 million, down 2.3%, but operating profit rose 9.3% to £154.1 million.

City analysts had been expecting an operating profit of £152.2 million.

With cash generation at 95.9%, the board declared a final dividend of 18.1p and a special dividend of 20.9p.

Chief executive Graham Charlton said it was "another record year", with strong growth ahead of market expectations despite challenging market conditions.

"During the year we made further progress against our two key strategic goals: expanding our position with existing customers whilst also adding to our customer base," he added.

Charlton said investment made in staff, growing headcount by more than 30% over the past two years, "puts us in an incredibly strong position for when economic conditions improve".

On the outlook, the FTSE 250-listed company said it continues to invest to capitalise on the growth potential of its "significant and growing market".

Further market share gains are expected to result in "double-digit" gross profit growth together with "high single-digit" operating profit growth in the new financial year.

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