Softcat sees operating profit weighted towards H2

Softcat said on Wednesday that it has seen a good start in the first quarter but that it expects operating profit for the year to be weighted towards the second half.

In a trading update for the quarter to the end of October, the company, which provides IT infrastructure products and services, said positive momentum has been maintained during the first three months of the current financial year and gross profit performance has been strong.

Softcat said it has continued to make significant investments in both sales and technical resource and as a result, operating profit has performed in line with its expectations.

The group has invested heavily in future growth and much of this investment is phased into the first half of the current financial year, with returns on these investments becoming evident in the second half - seasonally the stronger six months for the company - and beyond.

Consequently, it expects operating profit to be weighted towards the second half.

Chief executive Martin Hellawell said: "While it's still early days for us in full-year 2017, we are off to a good start. We are pleased with the levels of growth we have seen in the first quarter and the investments we are making will further enhance our position in the market."