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Softcat reports year-on-year growth across the board in first quarter

The FTSE 250 IT infrastructure firm said demand had remained strong across all segments during the period, with growth in revenues, gross profit, and operating profit
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Chief executive Graeme Watt said both customer numbers and gross profit per customer were up year-on-year

Softcat PLC (LON:SCT) said it has delivered year-on-year growth in the first quarter of the year in the first update since a cautious set of final results in October.

The FTSE 250 IT infrastructure firm said demand had remained strong across all segments during the period, with growth in revenues, gross profit, and operating profit.

READ: Softcat strikes a cautious note on growth

The company added that it had continued to invest in scale and developing its offering. Its Irish office, which had opened during the period, had also started well.

Graeme Watt, chief executive of Softcat, said both customer numbers and gross profit per customer had grown in the first quarter, in line with the firm’s “simple strategy”.

“The breadth and depth of our offering, together with the scale and diversity of our customer relationships, remain key strengths upon which we continue to build and during the Period we saw good growth across all customer and technology segments”.

Watt added that the second quarter had “started well” and that the firm was confident of meeting its expectations for the year.

The update is the first since the group’s results for the last full year in October when it cautioned that “exceptional market conditions” in the year would make it difficult to keep up the pace of growth into the current fiscal year.

Revenue in the 12 months to the end of July 2018 crashed through the billion pounds barrier to hit £1.08bn, up from £832.5mln the year before while customer numbers rose 4.7% to 11,900.

In early trading Wednesday, Softcat shares were down 0.3% at 587p.

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