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Softcat adds scale, offices as sales and profits rise

Reseller and IT services group Softcat has reported a 21% increase in sales to £434m for the first six months ended 31 January. In addition, gross profit reached £94.7m, up 26.5%; and operating profit went up 40% to £33.9m.

As a result, the interim dividend rose 36% to 4.5 pence. The company added 620 new customers in the six month period, with the total number of customers up 6.5%. There was growthin gross profit per customer  of 18.7%. The company said London and Leeds office relocations to larger premises have been completed, and that one further new UK office opening is planned by the end of the calendar year. The Ireland office now has 15 sales staff and is “making good progress” in winning new customers and local vendor accreditations, said Softcat. The company remains debt free with a cash balance of £52.8m.

Graeme Watt (pictured), Softcat CEO, said: "It has been another period of very strong performance for the company, characterised by additional market share gains. We have maintained our ongoing and long‐term investment in building scale and creating new capabilities.”

Softcat reached over £1bn in sales for its full year of trading ending 31 July 2018, thanks to a 30% year-over-year revenue jump to £1.082bn.