SOFTCAT plc
(‘Softcat’, the ‘Group’)
Half year results for the six months to 31 January 2025
Strong first half performance with positive momentum
Softcat plc (LSE: SCT.L), a leading UK provider of IT infrastructure products and services, today announces its half year results for the six months to 31 January 2025 (‘the period’).
These results demonstrate continued successful strategic execution, enabling the delivery of further strong growth in gross profit and operating profit, together with healthy cash generation. Our performance in the period, coupled with an encouraging second half pipeline, provides us with the confidence to upgrade full year operating profit guidance.
Financial Summary
| Six months ended | |||
| 31 Jan 2025 (£m) | 31 Jan 2024 (£m) | Change | |
| Gross invoiced incomea | 1,507.1 | 1,263.5 | 19.3% |
| Revenueb | 545.6 | 467.2 | 16.8% |
| Gross profit | 220.2 | 196.5 | 12.1% |
| Operating profit | 73.7 | 66.7 | 10.4% |
| Cash conversion %c | 110.9% | 101.1% | 9.8ppts |
| Interim dividend (p) | 8.9p | 8.5p | 4.7% |
| Basic earnings per share (p) | 28.7p | 25.6p | 12.3% |
a Gross invoiced income reflects gross income billed to customers adjusted for deferred and accrued revenue items. This is an Alternative Performance Measure (APM).
b Revenue is reported under IFRS 15, the international accounting standard for revenue. IFRS 15 requires judgements be made to determine whether Softcat acts as principal or agent in certain trading transactions. These judgements, coupled with slight variations of business model and contractual arrangements between IT Solutions Providers, means the impact of IFRS 15 across the peer group is not uniform. Income prior to the IFRS 15 adjustment is referred to as gross invoiced income, which is an Alternative Performance Measure (APM).
c Cash conversion is defined as net cash generated from operating activities before tax but after capital expenditure, as a percentage of operating profit. This is also an Alternative Performance Measure.
Highlights for the six months to 31 January 2025
- Continued double-digit growth of 12.1% in gross profit and 19.3% in gross invoiced income, reflecting broad-based success across technology areas and customers.
- Strong operating profit growth of 10.4%, delivering another record first half profit.
- Further targeted strategic investment to underpin future growth, with headcount up 6.0% on the prior period.
- Continually evolving technology and service proposition supports our ability to take market share and add further scale in a growing industry.
- Strong cash conversion of 110.9%, with closing cash of £141.0m.
- Interim ordinary dividend growth of 4.7% to 8.9p, in line with progressive policy.
- Outlook: operating profit growth in the first six months of the financial year is slightly ahead of the Board’s expectations. We continue to expect to deliver another year of double-digit gross profit growth in FY2025, with operating profit growth now expected to be low double-digit, up from high single-digit previously.
Graham Charlton, Softcat CEO, 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. Our progress is attributable to the breadth of our offering and sustainability of our growth model, powered by Softcat’s special culture and the differentiated customer service it delivers.
We are excited by the rapid pace of innovation across our industry, with more organisations embedding AI and automation into their systems and processes. Our existing capabilities and continued investment mean we are well positioned to support the evolving technological needs of our customers, enabling us to sustainably grow market share. Should a compelling opportunity arise, our financial strength also provides us with the flexibility to accelerate further through acquisitions.
As ever, these results are only possible thanks to the tremendous efforts of the entire Softcat team. I would like to thank all our people for their positive attitude, customer focus and outstanding support for each other. Reflecting the strength of collaboration between our people, customers and partners, we have an incredible opportunity to build on our current momentum and further improve our market-leading UK position.“
Outlook
Operating profit growth in the first six months of the financial year is slightly ahead of the Board’s expectations. We continue to expect to deliver another year of double-digit gross profit growth in FY2025, with operating profit growth now expected to be low double-digit, up from high single-digit previously, supported by an encouraging second half pipeline.
Softcat operates in a significant and growing market, and we continue to invest to capitalise on this exciting growth potential, to drive further market share gains.