Softcat says future 'difficult to predict' as market cap breaks £3bn

Reseller's share price jumps by more than seven per cent based on positive H1 results

Softcat has said that the second half of its fiscal year is "difficult to predict", despite posting a glowing H1 trading update which bumped its valuation past the £3bn mark.

Softcat stated that trading has remained positive since its Q1 statement in November and that demand from public sector customers has been strong.

However, business from corporate customers has been "mixed" with some clients undertaking large projects, while others continue to be cautious as the COVID-19 pandemic rages on.

The company reported that, though H2 remains difficult to predict, trading is still ahead of where it expected it to be at this point in its financial year.

Softcat's share price rose over seven per cent this morning in the wake of the trading update, bumping its market valuation to £3.04bn.

"Demand from our public sector customers has remained strong. The corporate picture has continued to improve but is also somewhat mixed, with some customers pursuing large projects and others taking a more cautious approach," the update stated.

"Ongoing investment in our multinational and technical capabilities, which continued throughout 2020 despite the challenges of Covid-19, has enabled us to play an important role in these large projects with both corporate and public sector customers.

"Much still needs to be done in the second half of the financial year which remains difficult to forecast, but with the seasonally important December trading period behind us we are significantly ahead of where we expected to be at this stage."