Is Softcat about to break £1bn revenue barrier?

Marlow-based reseller says it continues to 'perform exceptionally well' in trading update

Softcat says its growth is accelerating as it approaches the end of its financial year, opening up the possibility that it will burst through the £1bn revenue barrier.

Having grown revenues by an unexpectedly high 25 per cent to £472.8m in its fiscal first half and issued a buoyant Q3 trading statement, the LSE-listed reseller this morning gave another glowing update to the market.

Softcat, whose new CEO Graeme Watt CRN recently interviewed, continues to "perform exceptionally well", according to the statement.

"Market conditions have been very favourable and growth against prior year has accelerated. As a result, the board now expects that full-year 2018 adjusted operating profit will be materially ahead of its prior expectations," it said.

The bullish update comes despite a profit warning from one of Softcat's key European peers, Econocom, last week. Nordic peer Atea is also mired in a Danish corruption scandal.

Marlow-based Softcat's share price has been on a fairly consistent bull run since it floated on the LSE in 2015, with its market cap currently standing at over £1.4bn. Its shares have lost some momentum recently, however, and are down seven per cent over the last week.

Softcat turned over £832.5m last year, meaning it will exceed the £1bn annual sales barrier in its current year if it exceeds 20 per cent growth.

Full-year results are due on 17 October.