Updates

Softcat - Strong start to second half

April 2017

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares went into orbit after Softcat’s H1 statement said customer growth has been the fastest seen since H1 14 with 800 (8.7%) customers added whilst gross profit per customer also lifted by 8.1%. With those results, Softcat has delivered 46 consecutive quarters of revenue and profit growth. Sales were up a third to £398m but as always gross profit is Softcat’s chief measure of success and was up 14% to £61.3m. Adjusted operating profit was up 9% to £21.4m. Eps was 8.7p, up 6%. The gross profit margin was 16.2%, down from last year’s exceptionally high 18.3%, which had been driven by a once off procurement benefit. This decline was further exacerbated ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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