Softcat posts record FY results amid solid demand

IT infrastructure and services provider Softcat reported record full-year results on Tuesday amid strong public sector demand and a recovery in the corporate sector.

In the year to the end of July, pre-tax profit rose to £119m from £93.6m on revenue of £1.16bn, up 7.4% on the previous year. Operating profit grew 27.4% to £119.4m and the company declared a final dividend of 14.4p a share, up from 11.2p, and a special dividend of 20.5p, compared to 7.6p a year earlier.

Gross profit, Softcat’s key measure of income, rose 17.2% to £276.4m. The gross profit margin came in at 23.9% versus 21.9% in 2020.

Chief executive officer Graeme Watt said: "I am pleased to report on a record set of results in our 2021 financial year.

"Public sector demand remained strong throughout the period and we saw further recovery in the corporate sector with an acceleration in customer growth and order volumes as the year progressed. As previously reported, the first half of the year was particularly strong as we delivered a small number of exceptionally large value mid-market deals.

"We made excellent progress selling deeper into existing customers and saw gross profit per customer improve by 14.6%, while also increasing the size of the customer base by 2.3%."

Softcat said the new financial year had started well and it continues to target double-digit gross profit growth, "well ahead of market trend". Full-year operating profit for 2022 is set to in line with the record achieved in 2021, it added.