Softcat’s revenue growth doesn’t save share price

The price of shares in FTSE 250 IT infrastructure firm Softcat (LON:SCT) dropped by 2.87% to 914.50p (as of 15:00 BST) after the company published its final results for the year ended 31st July. Revenues for the period rose by 24.4% as customer numbers grew across the year.

CEO Graeme Watt commented: “It’s been another great year for Softcat in which we have delivered strong growth and financial success, but most importantly we have continued to strive to provide a first class service to our customers while at the same time expanding our offerings to them. The basis of that success continues to be the attitude and skills of our people, and especially the way in which they collaborate and work closely together. Their efforts resulted in revenue and operating profit growth of 24%. Gross profit per customer increased by 17% and we were delighted to trade with 400 more customers than in the previous year.

“This success demonstrates how our straightforward strategy continues to be well-executed by the team. Whilst our key aims of winning new customers and selling more to existing customers remain unchanged, we are doing much to further expand our addressable market and as a result the Company enters the new financial year in a strong position and with good momentum. Customer requirements are becoming more complex and they are faced with greater choice. The opportunity for Softcat is growing and this underpins our willingness to invest in skills and expertise for the long term“.