Softcat Reports Higher Pretax Profit for Fiscal 2023
Softcat reports higher pretax profit and growing customer base in fiscal year 2023, remains confident in long-term growth and cash generation.
Softcat, the London-listed provider of IT-infrastructure products and services, has announced a higher pretax profit for fiscal 2023. The company expects its full-year operating profit to be in line with market expectations.
For the year ended July 31, Softcat's pretax profit reached £141.9 million ($173.8 million), compared to £136.1 million in the same period last year. Despite a decline in hardware gross invoiced income and soft market demand for client devices, Softcat's revenue amounted to £985.3 million, down from £1.08 billion. However, the company's gross profit increased by 14.2% to £373.8 million, driven by a 1.9% growth in the customer base.
Softcat's board is recommending a final dividend of 17.0 pence per share, resulting in a full-year payout of 25.0 pence per share, up 4.6%. The company has also declared a maintained special dividend of 12.6 pence per share.
Despite challenges in the market, Softcat remains confident in its long-term growth and cash generation. Chief Executive Officer Graham Charlton stated, "The company remains in a very strong financial position, and we have great confidence in our long-term growth and cash generation."
Softcat has provided an operating profit consensus of £152.1 million for the year, marking an increase from £140.9 million in fiscal 2023. The company anticipates that profit will be second-half weighted, with modest growth in the first half against strong comparatives.
In conclusion, Softcat's fiscal year 2023 has delivered positive results, with increased pretax profit and a growing customer base. The company remains optimistic about its future growth and profitability.