Softcat PLC (LSE:SCT) reassured the market that business is ticking along, even if the market reaction (the shares fell 2%) was a little sniffy.
In its first-quarter print revealed the reseller said it delivered “strong” double-digit growth in gross profit and underlying operating profit in the first quarter, with momentum described as broad-based across both customer types and revenue lines.
Nothing flashy, but that is not really Softcat’s style.
Management added that trading so far is consistent with the company’s full-year 2025 guide, which calls for high single-digit gross profit growth and low single-digit adjusted operating profit growth once large deals are included.
Those big one-off contracts matter: they can land unevenly through the year, and UBS gently reminds readers that their timing may colour the first-half picture.
Even so, consensus currently expects a 12% rise in adjusted operating profit for the half-year, and UBS notes that the first quarter is tracking ahead of that.
For a company whose valuation has been buffeted by worries over slowing public-sector spending and uneven corporate IT budgets, simply being “on plan” should soothe frayed tempers.
UBS still has the shares at a 'sell' rating and a price target of 1,450p, just a tad over where the stock currently sits.