Softcat PLC (LSE:SCT) shares jumped 13% after the IT company upgraded its full-year profit guidance following a strong first half.
The FTSE 250-listed group reported a 12.1% rise in gross profit to £220.2 million and a 10.4% increase in operating profit to £73.7 million for the six months to January 31.
The company credited broad-based success across technology sectors and strong customer demand for its continued growth. With a solid pipeline for the second half, Softcat now expects operating profit to grow in the low double digits, up from its previous high single-digit forecast.
Cash conversion remains strong at 110.9%, with £141 million in cash reserves. The interim dividend has been raised 4.7% to 8.9p per share. Management highlighted ongoing strategic investments, including a 6% increase in headcount, to support long-term expansion in a growing industry.
Softcat's operating profit growth for the first half came in slightly ahead of board expectations. The company is now forecasting operating profit will rise in the low double digits for the tear, having previously guided for high single-digit growth.
The stock rose 210p to 1,833p.