Softcat (LSE:SCT) PLC, the FTSE 250 provider of information technology infrastructure products and services, said supply chain issues are contributing to a modest backlog of orders.
In its interim results statement covering the six months to the end of January, the company said the situation regarding component shortages has neither worsened nor improved, meaning its backlog has grown a bit; the backlog is expected to unwind in the financial year ending July 2023.
Operating profit in the first half of the current financial year has been ahead of the board's initial expectations at £64.1mln, up 12.4% on £57.1mln a year earlier, thanks in part to reduced travel costs during the omicron phase of the COVID-19 pandemic.
The company said that while the current geopolitical and macroeconomic volatility makes it more difficult to forecast performance, the board believes that the strong first half makes it likely the out-turn for the full year will be ahead of previous estimates.
The company reported revenue of £770.9mln, up by a third on £577mln in the corresponding period of 2020/21.
Profit before tax improved to £64.2mln from £57.0mln the year before.
The interim dividend has been bumped up to 7.3p from 6.4p a year earlier.
Chief executive officer Graeme Watt commented on the Russian invasion of Ukraine and the perception of the increased risk from cyber-attacks and said the company is redoubling its own cyber defences.
“In addition, we are fully compliant with UK government sanctions and monitoring the impact of the conflict on supply chains,” Watt said.
“Turning now to Softcat (LSE:SCT)'s business performance, the company continued to perform well across all areas of the business in the first half. Transaction numbers grew strongly as we saw more customers emerge from the impacts of the pandemic, and this drove a 12.4% expansion in gross profit per customer. All customer segments made good progress which included an acceleration in our enterprise business. Various industry data and commentary suggest the overall market has maintained a mid-single-digit growth rate which indicates that we have continued to gain share,” Watt said.
Shares in Softcat were up 6.1% at 1,823p.