Half Year 2025 Softcat PLC Earnings Call Transcript
Key Points
- Softcat PLC (FRA:SF5) reported double-digit growth in both gross profit and operating profit, slightly ahead of expectations.
- The company achieved a gross profit growth of 12.1% to GBP220 million, driven by strong performance across hardware, software, and services.
- Softcat PLC (FRA:SF5) maintained a strong balance sheet with a cash conversion rate of 110.9% and ended the period with GBP141 million in cash.
- The company announced an interim dividend payment of 8.9p, reflecting a 4.7% increase year on year.
- Softcat PLC (FRA:SF5) continues to expand its customer base, growing by 1.4% to nearly 10,300 customers, with a 10.7% increase in gross profit per customer.
- Gross margin declined by 100 basis points year on year due to higher-volume, low-margin sales and a decline in software margins.
- Operating costs grew by 12.9% year on year, driven by increased commissions and a rise in wages and salaries.
- The company experienced slower growth in the workplace technology segment, particularly in client devices.
- Despite strong overall performance, the growth in the public sector was slightly slower compared to previous years.
- There is ongoing macroeconomic uncertainty, which could impact future growth and customer spending behavior.
Good morning, and welcome to the Softcat half-year results presentation. This is for the six months ended January 31, 2025. Thank you very much for joining and for your interest in the company. I'm Graham Charlton, Chief Executive, and I'm joined today by our CFO, Katy Mecklenburgh, who you'll hear from shortly.
Before I hand over to Katy, I will begin with a quick reminder of who we are and what we do. Katy will then headline the results for the period. I'll come back after that and give you an update on the strategic progress that we've made in that time as well.
So Softcat is the largest provider in the UK and Ireland of technology structure solutions. This includes extensive capabilities across consultancy, implementation, and other related services. Our market-leading portfolio is incredibly well diversified, covering the breadth of cybersecurity, hybrid cloud infrastructure, networking, workplace technologies, and as well as data, AI, and automation. And we do all of this across hardware, software, and
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