Updates

Softcat - 56 quarters of consecutive organic growth

December 2019

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.

It might have been a week before Guy Fawkes but another set of incredible results (marking 56 consecutive quarters of organic growth) lit the blue touch paper and the share price took off like a rocket. With next to no capex required in its expansion, net cash at the year end was £79.3m. The results are accompanied with a 16p special dividend and the ord dividend rising 18% to 10.4p. Revenues were up 24% to £991m (on the IFRS15 restated comparative from 2018 of £797.2m). Pretax profit was £84.8m for eps of 34.4p. As previously stated, gross profit continues to be the company's primary measure of income performance and growth and this was up 21% to £211m. The lower implied gross margin was due ...

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Softcat (November 2018)

Softcat - Exceeding market expectations (August 2018)

Softcat - Gain since write up: 174% (June 2018)

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Softcat (November 2017)

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Softcat - 14.2p special dividend (November 2016)

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Softcat (April 2016)

Softcat - 40 consecutive quarters of growth and a tidal wave of cashflow (December 2015)

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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