‘We’re starting to see the beginnings of the PC refresh cycle’ - Softcat CEO on Q3 success
Graham Charlton reflects on the company’s progress, Oakland buyout, and the impact of US tariffs
In its latest trading update for the third quarter ended 30 April, Softcat posted a strong double-digit growth in both operating and gross profit.
All technology areas and customer segments reportedly followed an upward trend, supported by the conversion of some larger solutions projects.
The company now expects full year operating profit to be in the low-teens, up from the low double-digit figure announced in H1.
In an interview with CRN, Graham Charlton, CEO of the 2025 Top VAR, delves into the different factors that have been driving these results.
The CEO explains that while customer demand remained materially the same as in H1, even though maybe slightly more positive, growth came from a mixture of mid-market, large, complex customers, in both the public and corporate sectors.
The company also performed well in datacentres, security, and networking.
“We’re also starting to see the beginnings of that hardware, laptop PC refresh cycle.”
Charlton explains that large deals in financial services, datacentres, AI, and GPU have also propelled this quarter’s growth.
The VAR also boasts of “the broadest and richest offering in the UK market,” which allows it to attract large deals and customers.
“We can serve a customer on their terms, whatever projects they're doing or working on.
“The breadth of the offering has led to our sustainable growth.”
According to the CEO, Softcat’s culture and people are also what differentiate it in the market.
“We win market share because we do more and more for each of our customers every year.
“They trust us because our culture and our people produce the best customer service in the industry.
“Our culture is the secret sauce, and the fact that we have a broad offering is really helpful.”
Tariffs and takeover
The Oakland acquisition last month, Softcat’s first ever buyout since its launch in 1993, has added 70 people to the VAR’s ranks.
While “its contribution to the numbers in the short term is immaterial,” Softcat intends to expand the acquired company’s capability and revenue stream in the future.
“Oakland gross income is of the order of £10m, and we're doing about £3bn of gross income this year,” Charlton tells CRN.
The VAR boss adds that the tariffs imposed by US President Donald Trump have not yet impacted the organisation, even if it has become a topic of discussion.
“It hasn’t had a material impact on our numbers, but it is a topic of conversation for some customers, and we have to do tactical work to help them navigate what it means for their procurement.”