Softcat shares jump as FY results to significantly beat expectations
Investing.com
Published Mar 24, 2021 10:34
By Samuel Indyk
Investing.com –IT company Softcat PLC (LON:SCTS) has seen its shares move to the top of the FTSE 250 after reporting results that beat expectations.
Softcat reported half year revenues of £577mln, up 10.1% from the same period a year earlier. Operating profit was up 41% to £57.1mln and the company boosted their interim dividend by 18.5% to 6.4p per share.
At 10:30GMT, shares were up almost 14% at 1,772, just below the all-time high of 1,807.
“We are pleased with the strong performance in the first half of the financial year in which we continued to grow and take share in a market that has remained relatively resilient during the pandemic,” said Softcat CEO Graeme Watt.
The company is one of a few companies that have weathered the storm from the pandemic. They have not taken government support, boosted their dividend and increased both profit and revenue. They also announced that they have increased headcount by over 12% during the last 12 months.
“We have continued to invest in staff, internal systems and tools to support current growth which puts us in a strong position to deliver on future opportunities,” Watt added.
h2 Outlook/h2Not only were the last 6 months strong for the company, but the outlook remains positive too. The company said that the second half of the year has begun well despite cost savings brought on the pandemic expected to diminish.
“The Board is confident the Company will deliver a full year result significantly ahead of its previous expectations,” the IT infrastructure company said.
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