Softcat (LON: SCT), the IT products and services group, reported a 19.4% rise in underlying operating profit to £215.1m for the year to the 31st of July. Chief executive Graham Charlton described growth as significantly ahead of the company’s own expectations.
The shares were at 1,826p at 8:11am, about 5% below yesterday’s close of 1,924p. That is a delayed intraday quote rather than a close, and the results statement gives no reason for the fall.
Gross invoiced income (GII), the group’s headline measure of business billed, rose 30.5% to £4,719.7m from £3,617.0m. Gross profit climbed 24.7% to £616.3m from £494.3m, and underlying basic earnings per share rose 19.7% to 83.2p from 69.5p. Statutory basic earnings per share were 75.8p, against 66.6p.
Shareholders get a total dividend of 31.5p, up 7.5%. Charlton said in the statement:
Softcat delivered outstanding performance in FY2026, continuing the momentum established in the first half.
Graham Charlton, chief executive of Softcat
Softcat credited larger solutions projects, customers bringing orders forward because of a memory shortage, and vendor rebates. Hardware GII jumped 41.6% to £1,405.2m. Software GII rose 25.3% to £2,598.6m and Services GII rose 30.1% to £715.9m. Gross margin slipped to 13.1% from 13.7%, and underlying costs grew 27.7%, faster than gross profit.
Statutory operating profit was £196.4m, up 13.6%, after £18.7m of non-underlying costs. Cash conversion was 93.6%, against 95.6%, and net cash stood at £199.9m.
Momentum also eased through the year: GII growth was 28.5% in the second half against 33.3% in the first. For FY2027, excluding the contribution from US acquisition GDT, the board expects high single-digit underlying operating profit growth, slightly ahead of gross profit growth, a sharp step down from 19.4%.
Softcat is buying GDT for $1,050m (£785m), part-funded by a £346m share issue, and expects leverage of about 1.3x after completion. The deal is due to close by the end of the first quarter of calendar 2027. The 21.6p final dividend goes ex-dividend on the 12th of November. An analyst call is scheduled for 9:30am UK time today.
