Softcat reports annual profit of £327.2million

By Stephen Emerson

26 October 2022

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Softcat appoints new CEO

IT services firm Softcat has reported an almost 40 per cent growth in revenue.

Buckinghamshire based IT infrastructure firm Softcat's annual report informed shareholders via the LSE, that revenue rose from £938.4million to £1077.92 between 2021 to 2022 - an upturn of 37.5 per cent. This equates to gross profit of £327.2million and a final dividend of 16.6p. Shares in the firm stood at 1,186.00GBp (25/10/22).

Graeme Watt, Softcat CEO, said of the report: "Our people continue to be the primary focus of our investments. Despite the tough talent market, we were able to grow headcount by 14.3% and, since year end, this has grown further to 2,060 which sets us up to drive future success by continuing to take share of a growing market.

"We do this by providing the broadest portfolio of leading-edge technology solutions and services, listening to our customers, and leveraging the largest commercial team in our space in the UK market.

"I am delighted that the Company is again able to recommend the payment of a special dividend this year."

That special dividend amounts to 12.6p per share. The overwhelmingly positive annual report also reported a strong balance sheet position maintained with net cash at year end of £97.3m (2021: £101.7m).

The Chairman reported: "Our balance sheet remains strong, and the Company carries no external bank debt. Consequently, we are confident that the business is in a very strong position to continue to outperform the market."

Having emerged from the pandemic in a "very positive fashion," Softcat's annual report highlights how supply chain issues are improving and despite the: "significant volatility and uncertainty, particularly in relation to interest rates and foreign currency exchange.....our experience suggests demand for IT infrastructure is robust even in extreme circumstances."

Looking ahead to the coming financial year, Softcat shareholders were informed: "We are confident that operating profit for the year will be in line with expectations and at levels similar to 2022."

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By Stephen Emerson

Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset.

Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users.

He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.