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Softcat delivers again in FY ’25
Channel player has delivered growth for more than two decades as the focus on data and digital technology continues to pay off
Softcat has become synonymous with delivering decent numbers, and it has now reached the milestone of 20 years of consecutive growth with its latest preliminary full-year numbers.
The channel player saw gross invoiced income climb by 26.8% to come in at £3,617m. Gross profit was up by 18.3%, and underlying operating profit growth improved by 16.9% for the 12 months ended 31 July.
The business benefitted from a strong second half, supported by a number of larger projects and very large low-margin deals.
However, the fiscal year will be remembered for the move by Softcat to seal its first acquisition, bringing data and artificial intelligence (AI) specialist Oakland into the fold.
Softcat surveys its customer base, and security topped the list of concerns, along with the need to adapt to changing regulations. There is a demand for increased automation, and users were at various stages of a journey to get on top of their data to unlock the benefits of AI. It was against that backdrop that the move for Oakland was made.
In comments accompanying the results, the firm indicted that the Oakland process had enabled it to build up its “M&A muscle”, and talked of “future strategic acquisitions”.
Some of that activity could well be overseas, as the business continues to build a network of offices across Europe, Asia-Pacific and the US.
The channel player has also continued investment in its ability to tap into growth areas, with increased support for data and digital projects. The firm is introducing fresh sales and HR systems.
Record performance
Softcat CEO Graham Charlton said the business continued to deliver results and ratchet up fresh achievements. “I’m very pleased to report another record performance for Softcat, which marks a milestone achievement of 20 consecutive years of double-digit gross profit growth,” he said. “The strength of our business model and our consistent strategic execution underpin our continuing ability to scale and invest for future growth.”
The mantra from Softcat’s leadership over the years has been to take a position that views the UK as a market that continues to offer opportunities for growth, and that was the tone struck again by Charlton as he spoke of these results.
In his comments accompanying the numbers, he emphasised the changing priorities of customers, with workspace evolution a key driver that had consequences for security, networking, data and AI strategies.
“We have never been in a better position to address the increasingly complex needs of customers, who are adapting to rapid developments across all facets of their technology,” said Charlton. “During the year, we completed our first acquisition, bolstering our data, automation and AI capabilities in an exciting growth segment. And we have once again proven our ability to deliver larger and more complex solutions projects, an area we have been investing in for a number of years.
“Our strong performance provides us with the confidence to accelerate investment in our own systems and processes, ensuring that we have a modern and efficient infrastructure, to reinforce our competitive advantage and deliver on the significant growth opportunities ahead,” he said.
With a number of large deals in the pipeline, Softcat is indicating that 2026 will meet expectations, but the firm is likely to be weighted more towards the first half as those deals come through.
