Softcat's full-year results 'ahead of expectations'
Success allows reseller to resume dividend policy which was cancelled in March
Softcat has seen its full-year operating profit exceed expectations, according to its latest trading update.
The LSE-listed reseller reported that it has continued to trade "satisfactorily" throughout its fourth quarter, which ended 31 July 2020 and that cash generation has remained "strong".
It also flagged its intention to resume its normal dividend policy to shareholders, including payment of its interim dividend which was cancelled in March, though it cautioned that this plan is dependent on there being no "material adverse movement" between now and the publication of its full-year results on 20 October.
"Our performance during the year is a great credit to the team at Softcat and on behalf of the board I would like to thank them for their exceptional agility," stated CEO Graeme Watt.
"The support they have shown to each other, our customers and our partners continues to be a key feature of our business. Their commitment, alongside the breadth of our technology offering and customer base, provided a strong foundation for our performance in the second half. We are pleased to have been able to maintain staff levels without any actions to furlough staff in this period.
"Cash generation has been strong and, as a consequence, we intend to resume our normal dividend policy in addition to the reinstatement of the cancelled interim dividend."
Softcat's announcement comes after Computacenter said its H1 was "substantially ahead" of 2019, while global reseller CDW's UK operation was highlighted by chief exec Christine Leahy as a shining light in an otherwise disappointing quarter.
Earlier this month, Insight reported a rise in revenue for its quarter ending 30 June but admitted that it would have been a quarter of decline had PCM's sales not been added to the overall figure.
Meanwhile, German resellers Bechtle and Cancom last week reported mixed results for their respective second quarters, with the latter in particularly seeing revenues drop 8.6 per cent from April to June.
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