Softcat 'off to a good start' in FY17 - Hellawell

Q1 trading update issued on the London Stock Exchange

Softcat's CEO Martin Hellawell has said he's pleased with the reseller's growth in Q1 of FY17, hailing "significant investments" in sales and tech resources.

In a Q1 trading update on the London Stock Exchange - which it joined a year ago - the reseller said the board is "pleased with the performance during the period".

"Positive momentum has been maintained during the first three months of the current financial year and gross profit performance has been strong," the update said. "The company has continued to make significant investments in both sales and technical resource. As a result, operating profit has performed in line with the company's expectations."

No numbers were given in the update, but it said the management team are focused on delivering "profitable growth and cash conversion".

Operating profit will be weighted towards the second half of its financial year, it added, citing the fact the company has made investments in H1 which it expects to pay off in H2, which is "seasonally the stronger six months for the company".

Softcat CEO Martin Hellawell (pictured) said: "While it's still early days for us in FY17 we are off to a good start. We are pleased with the levels of growth we have seen in the first quarter and the investments we are making will further enhance our position in the market."

In its most recent full financial year, which ended 31 July, Softcat posted revenues of £672.4m - up 13 per cent annually - with adjusted operating profit jumping 15 per cent over the same period to £46.8m.

Speaking to CRNabout the full year, Hellawell said that the company aims to continue adding in the region of £70m to its top line every year.