Softcat lifts annual outlook as half-year profit tops expectations

(Alliance News) - Softcat PLC on Tuesday reported a half-year revenue decline but said profit ...

Alliance News 28 March, 2023 | 9:16AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Softcat PLC on Tuesday reported a half-year revenue decline but said profit came in ahead of expectations.

The IT infrastructure provider said it now expects its annual outturn to be "slightly ahead of previous estimates".

Softcat shares were 5.3% higher at 1,215.00 pence each in London on Tuesday morning, among the best mid-cap performers.

The Buckinghamshire-based firm said revenue in the six months to January 31 fell 11% to GBP512.4 million from GBP577.8 million. Pretax profit declined 1.7% to GBP63.1 million from GBP64.2 million.

Operating profit declined 1.7% on-year to GBP63.1 million from GBP64.1 million, "ahead of the board's initial expectations".

Gross profit, which does not take into account administrative expenses or finance costs, increased 18% to GBP177.1 million from GBP150.2 million a year prior. It was an outcome that beat expectations, Softcat said.

"I am pleased to be reporting positive numbers across a whole range of key performance indicators in a period that has exceeded expectations," Chief Executive Graeme Watt said.

Softcat said while there is uncertainty going into the second half, it "now expects that the outturn for the full year will be slightly ahead of previous estimates".

Softcat lifted its interim dividend by 9.6% to 8.0p per share from 7.3p.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Softcat PLC 1,646.00 GBX 1.35 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures