Softcat beats analyst expectations as profit jumps

Wednesday 19 March 2025 8:04 am

UK tech infrastructure agency Softcat beat analyst expectations final 12 months as revenue progress accelerated into the double digits during the last six months of the 12 months.

Gross revenue on the agency elevated by 12.1 per cent to £220.2m, above analyst expectations of £218.3m, Softcat revealed in its half-year report.

In the meantime, working revenue climbed 10.4 per cent to £73.7m, above analyst expectations of £72.3m.

Administration had additionally been anticipated to reaffirm its steering of excessive single-digit working revenue progress, however as an alternative upped forecasts to low double-digit progress.

Progress during the last six months was broad-based however particularly sturdy in safety, networking and knowledge centre infrastructure, the agency stated.

“We’ve continued to efficiently implement our technique, leading to a primary half efficiency barely above our preliminary expectations and an improve to full 12 months steering, regardless of the persistent backdrop of typically tougher buying and selling situations,” stated Softcat CEO Graham Charlton.

Headcount elevated by six per cent on the agency during the last 12 months to 2,617, and Charlton stated he anticipated an additional improve of between six and eight per cent over the total 12 months.

In the meantime, the group managed to make progress in opposition to two strategic objectives: Profitable new prospects, up 1.4 per cent from final 12 months, and promoting extra to current prospects, with gross revenue per buyer leaping 10.7 per cent.

Peel Hunt charges Softcat’s inventory a Purchase, with a goal value of 1,722p. Shares within the firm are presently buying and selling at 1,615p, having risen by 5.9 per cent because the begin of the 12 months.

“We’re excited by the fast tempo of innovation throughout our business, with extra organisations embedding AI and automation into their techniques and processes,” added Charlton.

“Our current capabilities and continued funding imply we’re nicely positioned to help the evolving technological wants of our prospects, enabling us to sustainably develop market share.”