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Softcat enjoys strong H1 with services delivering growth

Services are growing strongly at Softcat continuing trends that the channel player enjoyed last year

Those investors that backed Softcat when it went public 15 months ago should feel fairly happy with the performance of the mid market specialist.

Since it went public the numbers delivered by the channel firm have been consistently good and the latest H1 figures will add to that trend.

For the six months ended 31 January Softcat saw revenues improve by 28.9% to £378.5m with gross profit climbing by 14.1% to £61.3m.

The second quarter was particularly strong with customers rushing to put in orders before price rises, caused by vendors trying to claw back funds lost due to currency rates.

The services side of the business, managed print, professional services and contractal support offerings, saw strong growth, which continues a trend that was a feature of the market last year.

"Growth in gross profit, our primary measure of income, was 14.1%. The Company has made significant investments in new sales, services and technical resource over the past 18 months and the return on those investments is evident in our latest figures. As a result, we are pleased to announce the payment of an interim dividend of 2.9p per share, in line with the policy set out at the time of our IPO," said Martin Hellawell, Softcat CEO.

"The Board is confident of meeting its expectations for the full year. Whilst trading in the first six weeks of the second half has been strong, we have some important months ahead and we remain focussed
on the job in hand," he added.

Recruitment and headcount expansion has been something Softcat has become well known for over the last few years and that was also a feature of H1.

There has been 30% headcount growth on the services side in addition to the talent brought on board through the firm's graduate programme.

The firm informed investors that it plans to continue recruitment during the second half. There could also be more office openings to add to the recent ribbon cutting in Glasgow, expansion in Manchester and Bristol.

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