Softcat reaches new heights in FY10

Strong growth in hardware sales helped reseller Softcat to achieve stellar growth in profit and margins during a bumper 2010 fiscal year.

For the 12 months to 31 July, sales at the Marlow-based firm rose 29 per cent annually to £145.7m. Operating profit rose 36 per cent to more than £10m. This equates to operational margins of 6.9 per cent, up from 6.5 per cent in FY09.

"The growth in turnover was ahead of expectations, with particularly strong growth noted in the hardware and public sector divisions," said the directors' report for the year. "[Profit] exceeded the budgeted operating profit and was achieved by the strong growth in all Softcat divisions: software, hardware, security, storage and IT services."

The report also stresses the importance of the firm's staff retention policy. During the year employee numbers rose from 199 to 244, and are expected to increase again this year with the opening of Softcat's London office in October.

"The company continues to invest heavily in sales recruitment," added the directors.

The report also sheds light on Softcat's customer satisfaction levels. Included in the financial statements are the results of a survey of 697 customers, 71.2 per cent of which claim to be very satisfied with the VAR's services. Some 28.3 per cent said they were satisfied. Just three customers indicated they were dissatisfied, with one professing to be very dissatisfied.

Looking ahead, the reseller is budgeting for another year of nigh on 30 per cent growth in 2011, with sales projected at £187m. Softcat is budgeting pre-tax profit to bump up to £11m.

"Despite the continued economic downturn, the company is cautiously optimistic about the prospects for the forthcoming year," added the report.

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• Topics
• Financial and Reporting
• Software
• Hardware
• Strategy
• Softcat
• Financial results
• Recruitment