Softcat's shares climb on first results since IPO
Marlow reseller reveals it will enter FTSE 250 next week as it reports 10 per cent rise in sales, and gross profit ahead of expectations in first interim numbers as a public company
Softcat's share price pogoed six per cent this morning as the reseller unveiled a "strong" set of interim numbers, its first as a public company.
The Marlow-based outfit also revealed it will enter the FTSE 250 next Monday as it reported double-digit revenue growth and profits it said exceeded its expectations.
For the six months ending 31 January, revenues rose 10.4 per cent year on year to £294m. Operating profit fell 11.1 per cent to £15.3m, with adjusted operating profit rising 12.9 per cent to £19.57m.
The announcement sent its share price up by nearly six per cent to £3.23, which is 15 per cent up on its IPO price, with CEO Martin Hellawell claiming Softcat's life as a public company has started promisingly.
"We are very pleased to report strong results for our first half-year as a public company," he said.
"The first half included the significant event of our IPO at the end of November but despite all the work and distraction involved with that, I am delighted that the company has continued to make good progress and deliver growth."
During the period, Softcat opened a Glasgow office and saw overall customer numbers rise 6.7 per cent year on year. Average (mean) revenue per customer also increased by three per cent to £31,800.
Demand for more complex solutions outstripped demand for high-revenue, low-margin areas, including PCs, Softcat indicated.
"A number of large commodity deals were tendered in the market which were won at very low or negative margins," Softcat said in its stock exchange release.
"The company is not chasing unprofitable revenue and therefore did not compete at the levels required to win these deals, instead choosing to focus attention on areas in which our customer service and advice is most needed."
Softcat claimed its IPO had gone "very much to plan", pointing out that it won an award for Best IPO of the Year in the under $300m raised category at the GlobalCapital awards.
"Softcat is adjusting well to life as a public company," it said.
Looking forward, Softcat said it remains confident of meeting its full-year profit expectations, adding that it has continued to see strong demand for customers during the first six weeks of its Q3.