Softcat ‘Well Positioned to Deliver Further Growth’; Shares Rise

Softcat (LON:SCT) shares jumped close to 4% in early Thursday trading after the company released a positive year-end trading update.

The UK IT infrastructure provider anticipates a robust financial year ending July 31, 2025, with high-teens growth in gross profit and mid-teens growth in operating profit.

The positive forecast follows a strong fourth quarter driven by the successful conversion of large solutions projects. The company's cash generation is said to remain strong, with FY25 cash conversion expected to be near the upper end of the guided 85%-95% range.

Softcat shares are currently trading at 1,626p, pulling higher after a more than 9% decline over the last three months.

Looking ahead to FY26, the company stated it is “well positioned to deliver further growth.” Softcat anticipates low double-digit gross profit growth and high single-digit operating profit growth, excluding the significant contribution from large projects in FY25.

Including these large deals in the comparative period, reported growth rates are expected to be high single-digit for gross profit and low single-digit for operating profit.

Softcat's FY2025 preliminary results are scheduled for release on October 22, 2025.