Softcat profits 'ahead of expectations' in H1 results

Revenue and gross invoiced income balloon by 34 and 33 per cent respectively with growth across all customer segments

Softcat has posted profits "ahead of expectations" as the reseller reports steep revenue growth across all business segments in its H1 results.

For the six months until 31 January 2022, gross invoiced income grew by 33 per cent to £1.16bn, while revenue under IFRS 15 grew by 33.6 per cent to £770.9m.

Operating profit swelled by 12.4 per cent to £64.1m over the six-month period, while gross profit grew 11.7 per cent to £150.2m.

The reseller's share price has risen by around seven per cent so far this morning as the results were announced.

Softcat claims that it made "good progress" across all customer segments and across software, hardware and services.

This was against a backdrop of ongoing supply chain challenges which Softcat claims nether improved or got worse during the six months.

Softcat added that it expects its "relatively modest" backlog of hardware orders to "gradually unwind" during its next financial year.

Operating profit came in "ahead of expectations" in part due to the spread of the Omicron variant producing cost constraints for the business.

The firm added that travel and events spending returned to normal levels as Covid restrictions began to ease, but this happened at a slower pace than initially expected.

The Marlow-based reseller grew its headcount by 10 per cent year on year during the six months with recruitment expected to be continue in all areas of the business.

Average gross profit per customer grew by 12.4 per cent to £30,200 with Softcat claiming that it continued to grow its customer base.

"Notwithstanding the very high bar we set during last year's exceptional first half performance, these results preserve a run that now extends to 66 consecutive quarters of year-on-year growth in gross invoiced income and profit," said CEO Graeme Watt in a statement.

"Our focus on being people and customer-led remains at the highest level. I would like to offer our sincere thanks to all our customers and partners for being such a pleasure to work with. And a big thank you must go to the entire team at Softcat for these results. They have all performed brilliantly and I am very proud of how we continue to work together and support each other."