Softcat has beaten expectations for its half year results for the six months ending 31st January 2025, that showed continued successful strategic execution, enabling the delivery of further strong growth in gross profit and operating profit, together with healthy cash generation.
This positive momentum for the performance in the period saw a 19.3% rise in gross invoiced income to £1.51bn, with gross profit and operating profit rising too by 12.1% to £220.2m and 10.4% to £73.7m, respectively.
Graham Charlton, Executive Director and CEO (pictured) commented: “We have continued to successfully implement our strategy, resulting in a first half performance slightly above our initial expectations and an upgrade to full year guidance, despite the persistent backdrop of generally more challenging trading conditions.”
Charlton also expressed the potential for future M&A and said: “While our growth to date has been entirely organic, the strength of our financial position means that we could also complement the development of our offering through acquisitions, should a compelling opportunity arise.
“These results are particularly pleasing given the ongoing challenges within the UK economy and are testament to the quality of our business.”
The CEO also stated the company’s progress was attributable to the breadth of its product offering and the trust placed in Softcat by a large and diverse customer base.
During the period, Softcat continued to make good progress on its strategic goals of winning new customers, up 1.4% year-on-year, and selling more to existing ones, with an increase of 10.7% in gross profit (GP) per customer.
Growth was “especially strong” in security, networking and data centre infrastructure, with a number of customers making significant investments in these technologies.
Outlook remains positive, and operating profit growth in the first six months of the financial year ahead of the company’s expectations.
Softcat now expects operating profits for the full year to grow low double-digits, up from high single-digit previously.