Softcat profit slips but full year expectations reaffirmed

IT infrastructure company Softcat, which listed on the London stock Exchange last year, posted a drop in full year operating profit despite an uptick in revenue.

For the year to the end of January, it reported operating profit of £15.3m from £17.2m the previous year as the company booked costs related to its listing on the LSE in November.

Adjusted operating profit, however, rose 12.9% to £19.5m and revenue was up 10.4% to £293m.

Softcat remains debt free, with a cash balance of £54.9m and said it would pay a maiden interim dividend of 1.70p per share on 29 April.

Customer numbers rose 6.7% in the period compared with the first half of the year and cash conversion was strong at 142%.

Chief executive officer Martin Hellawell said: "We are very pleased to report strong results for our first half year as a public company.

The first half included the significant event of our IPO at the end of November but despite all the work and distraction involved with that, I am delighted that the company has continued to make good progress and deliver growth.”

Hellawell said the group remained confident of meeting its expectations for the full year following a good start to the second half.

At 0908 GMT, Softcat shares were up 6.1% to 318.25p.