TMT: Technology – LSE – M cap £3,245m – Price 1,623.00p – Non client QV
SOFTCAT
H125 results outperform again
The Softcat machine rolls on. H125 results provide no hint of UK economic and geopolitical uncertainty. Gross profit per customer grew by 10.7% to £43.1k and the customer base expanded by 1.4%, to 10.3k. Furthermore, this growth was seen across hardware, software and services (all growing high single- or double-digit percentages) and across all customer types (enterprise, mid-market and public sector). In addition, operating profit was converted to cash (110.9% conversion vs 101.1% in H124), strengthening the already debt-free balance sheet. Unsurprisingly, full year guidance has been raised, as has the interim dividend. The quality credentials of the group look set to keep growing.