Record set of results for IT infrastructure business
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Listed IT infrastructure technology and services provider, Softcat, has reported another year of strong organic growth, profitability and cash generation in its preliminary results for the 12 months to 31 July 2021.
Revenues in the period rose by 7.4% to £1,156.7m (2020: £1,077.1m) with the business making a pre-tax profit of £118,967 (2020: £93,617).
Gross profits were £276,358 (2020: £235,705) and a strong balance sheet position was maintained with net cash at year end of £101.7m (2020: £80.1m).
Softcat, which has offices in Leeds, Manchester, Birmingham and London, says the new financial year has started well.
It anticipates that the resumption of business travel and events will create a significant headwind during 2022.
The company continues to target double-digit gross profit growth, well ahead of market trend, and it expects full year operating profit for 2022 to be in line with the record achieved in 2021.
Graeme Watt, Softcat CEO, said: “Public sector demand remained strong throughout the period and we saw further recovery in the corporate sector with an acceleration in customer growth and order volumes as the year progressed.
“As previously reported, the first half of the year was particularly strong as we delivered a small number of exceptionally large value mid-market deals.
“We made excellent progress selling deeper into existing customers and saw gross profit per customer improve by 14.6%, while also increasing the size of the customer base by 2.3%.
“Both people and systems continue to be a focus for investment, and we ended the year with 1,681 employees, an increase of 10%. We are very well positioned to drive growth and remain focused on taking further share in a growing market.
“Cash generation has remained typically robust and I’m delighted the company is able to recommend the payment of a special dividend.”