Updates

Softcat - Benefits as customers accelerate buying decisions for IT

May 2020

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.

Yet another superlative set of results from Softcat (the interims mark 58 consecutive quarters of organic growth). Revenues were up 21% to £524m with pretax profit and eps both up 20% to £40.4m and 16.7p, respectively. As in previous periods, gross profit is Softcat’s primary measure of growth and this rose 18% to £111.7m. Despite a still very cash rich balance sheet of £49.4m (following the £52m special dividend in December) it will not pay an interim dividend. Across end customer segments, growth was broadly based with the public sector remaining at approx 35%. There was a 4.1% rise in the number of customers to 9.5k (now redefined as the number of customers who have transacted with ...

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On The Beach

Kainos - Helping government deal with COVID-19 fallout

Softcat - 56 quarters of consecutive organic growth (December 2019)

Softcat (November 2018)

Softcat - Exceeding market expectations (August 2018)

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

Softcat - Forecasts raised for next three years (March 2018)

Softcat (November 2017)

Softcat - Strong start to second half (April 2017)

Softcat - 14.2p special dividend (November 2016)

Softcat (June 2016)

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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