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Exceptional market conditions boost Softcat

Chanel player reaches revenue milestone and heralds strong 2018 with a slight note of caution about what lies ahead

Brexit is looming large and nobody knows what next year will hold once the exit date in March comes and goes but one of the largest resellers is confident 2019 will be positive.

There have been warnings from bosses at car manufacturers and banks about the prospects of leaving the EU without a deal or a hard Brexit and last week at Canalys Channels Forum there were concerns a bad departure would hit distribution.

But for those looking for some more optimistic words the comments made by Softcat CEO Graeme Watt might provide some comfort.

Comments accompanying the 2018 numbers shared his thoughts about the year ahead and while there was caution it was not all doom and gloom.

“We benefited from exceptional market conditions in 2018. Despite current political and economic uncertainty, and notwithstanding tough comparative figures, we are confident of achieving further profitable growth in 2019,” he said.

“Trading in the first ten weeks of the new financial year has been encouraging,” he added.

The channel player revealed that it had increased revenues for the year to the end of July by 30% to break through the £1bn barrier. Encouraging for investors the firm has always been a good bet and has seen its services increase to now account for 14% of the turnover.

Watt put the growth down to a "successful execution of a simple strategy" but accepted that there had been very good market conditions for the firm to operate in.

"The adoption of technology change continues to gather pace, as customers take the opportunity to embrace the benefits of digital transformation. In 2018 we saw customers from all sectors invest and this is reflected in our customer metrics," he said.

"Both revenue and gross profit per customer increased significantly, as we benefited from a strong market and the increasing trust placed in us by our clients. Our long-term strategy of growth through sustained investment means we remain well-positioned to keep pace with the accelerating needs of customers," he added.

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