Softcat has reported growth in revenue, gross profit and operating profit for the first quarter although stopped sort of quoting any actual numbers.
The reseller said that customer demand had “remained strong across all segments” during the three months ending 31 October.
CEO Graeme Watt said: “We’ve traded well during the first quarter of our new financial year and, while there’s still a long way to go, we’re pleased with the performance so far and are where we’d want to be at this stage.
Softcat has broken through the £1 billion mark and CEO Graeme Watt said it was all due to “exceptionally good market conditions”.
Revenues shot up 30 percent to £1.082 billion in its year ended 31 July 2018 and net profit increased 37 percent to £55 million.
Watt added that Softcat’s new apprentice and graduate recruits had won hundreds of new customers during the year, and signalled Softcat maintains a “strong appetite” for recruiting new talent. It hired ten percent more staff this year and opened a new Dublin office. It took on 4.7 percent more customers too.
Softcat has now delivered 52 consecutive quarters of top and bottom-line growth, and Watt said he was “particularly pleased” that a wide spread of its vendors that were hiring.
“We grew revenue for fourteen of our top twenty vendors at over 20 per cent and our top twenty vendors made up a healthy 66 per cent of total sales. All of our regional offices delivered double-digit growth in gross profit, as did each of our customer segments. We are not overly reliant on any customer or vendor,” he said.
Watt added that the adoption of technology change continues to gather pace, as customers take the opportunity to embrace the benefits of digital transformation.
“In 2018 we saw customers from all sectors invest and this is reflected in our customer metrics. Both revenue and gross profit per customer increased significantly, as we benefited from a strong market and the increasing trust placed in us by our clients.”
Mega distie Avnet said it has set up a new business unit in the European, Middle East and Africa markets.
The dvision, called Avnet Security and Networking Solutions (ASNS), is intended to boost its share of this sector and will include the opening of specialist technical and commercial competence centres in the region.
Network security is predicted to be worth over $10 billion in revenues, according to market research firm IDC.
The first commercial competence centre will open in the Netherlands this quarter, and be a hub for delivering security and networking services.
Graeme Watt, president of Avnet in EMEA said his company will use existing people in the company to bring in external specialist skills to bolster the market.