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Softcat says full-year results to significantly top expectations

In the six months to January 31, revenue jumped 10% to £577mln while profit before tax climbed 29% to £57mln

Softcat - Softcat says full-year results to top expectations significantly

Softcat PLC (LON:SCT) said it will deliver full-year results significantly ahead of its previous expectations.

The provider of IT infrastructure products and services added it has continued to invest in its growth strategy throughout the pandemic and sees good momentum into the second half of the financial year.

READ: Softcat upgraded by Citigroup driven by shift to remote working

Total headcount stood at 1,658 at the end of January, up 12% since January 2020, and the company said it didn’t make use of government support.

Cost savings related to Coronavirus (COVID-19) restrictions are expected to dwindle over the next six months but the FTSE 250 firm said it is optimistic about the growth opportunity in its market.

In the six months to January 31, revenue jumped 10% to £577mln while profit before tax climbed 29% to £57mln thanks to higher operating profit due to cost savings.

The interim dividend was hiked 18.5% to 6.4p per share and will be paid in May.

The customer base rose 1.5% to 9,600 despite the move to remote working, with public sector remaining strong and corporate demand continuing to gradually recover after a dip in spring 2020.

“For the time being, we expect our financial year 2022 forecasts will only rise by low single digits. While Softcat has had a strong run, we think the upgrade momentum will continue to support the premium valuation,” analysts at Peel Hunt commented.

Shares jumped 11% to 1,731p on Wednesday at the opening bell.

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Price: 2214 GBX

Market Cap: £4.41 billion

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