Full Year 2024 Softcat PLC Earnings Call Transcript
Key Points
- Softcat PLC (LSE:SCT) reported double-digit growth in gross profit, highlighting resilience despite a challenging macro environment.
- The company achieved a 9.3% increase in operating profit, surpassing expectations and reflecting successful strategic investments.
- Softcat PLC maintained a strong balance sheet with a cash conversion rate of 95.97%, slightly above the target range.
- The company announced the largest dividend in its history, including a special dividend, reflecting strong cash flow and financial health.
- Softcat PLC's diverse customer base and broad technical offering position it well for future growth opportunities across various markets.
- The hardware segment experienced an 8% decline, impacting overall revenue due to reduced low-margin client device sales.
- Operating profit to gross profit ratio saw a slight decline due to increased headcount and associated costs.
- The company faces ongoing challenges from a volatile macroeconomic environment, affecting customer spending behavior.
- There is a noted weakness in the PC and devices market, which could continue to impact hardware sales.
- Softcat PLC's growth in customer base was modest at 1.8%, indicating potential challenges in acquiring new customers.
Right, good morning, everybody. And welcome to the Softcat results presentation for the year ended 31st of July 2024. I'm Graham Charlton, the chief exec of softcat and I'm joined today by our CFO Katie Mecklenburg, who you'll hear from very shortly. But before I hand to Katie, I will run to, to run through the financial results from last year, I'll start with a brief reminder of who we are and what we do. Then once you've heard from Katie, I'll be back to give you an update on the evolution of our strategy.
So who are we? And what do we do? Softcat is today the largest provider in the UK and Ireland in what's known as the vast space. So the value added reseller space of it solutions that covers cybersecurity, hybrid cloud infrastructure, networking, workplace technologies, and so on and across hardware, software and services. So it's a tremendously broad and well diversified offering across the full scope of the modern it environment. And we've grown to that position as number one in the UK, entirely organically from a
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
