Marlow: Softcat delivers 30% organic growth

IT infrastructure provider Softcat has posted its full audited financial results for the financial year ending July 31, 2013, reporting another year of strong progress. Revenues reached £395.8 million, 30% up on the previous financial year.

Gross profit grew 25% year-on-year, in line with growth in operating expenditure of 27%, resulting in £28.2m normalised operating profit. This represents an increase of 22% on the previous year and a 7.1% return on sales.

In the past three financial years alone Softcat has increased turnover by 172% from £145.8m to £395.8m and operating profit has increased 174% in the same period, representing 40% CAGR (Compound Annual Growth Rate) for both metrics.

This has been achieved entirely organically and against the backdrop of an industry showing low single digit growth figures for the period, says the company.

Softcat’s growth has largely been achieved by maintaining and growing its existing accounts, by continually developing its offering and by winning large numbers of new accounts. In the past financial year the company traded with a record 1,750 new accounts, which bodes well for the future as it expects business levels from these customers to grow significantly over time as these relationships deepen, in the same pattern we’ve observed over many previous years.

Colin Brown, managing director, said: “2013 was a year of great progress for Softcat. We won a record number of new customers, recruited more new talent into the business than ever before, and delivered our best ever customer satisfaction results. As the new man on the block I have been taken aback by the dynamism of the company, the friendliness of the employees and the overall spirit that is pervasive in Softcat.

"The relationships we enjoy with one another as team members as well as with customers and partners are second to none and I am sure that is fuelling our growth. But we have just started our journey in many aspects of the business and we have a very clear road map ahead with absolutely no shortage of opportunity or work to do. I’m personally relishing the challenge ahead of us and thank all the Softcat employees, customers and partners for their fantastic support in my first year at Softcat.”