Channel outfit Softcat is reporting some rather good figures for its first public full year.
The channel player reporting strong results and a £28m special dividend. The firm saw a 12.8 percent increase in revenues to £672.3m and gross profit coming in at 17.5 percent up on last year at £120.7 for the year ended 31 July. That gross profit number was helped by a one-off procurement saving of £3.4m.
Softcat saw a 7.5 percent increase in customer numbers and increasd its staff by 21 per cent to support its growth plans.
The channel outfit went public in November last year and the share price has consistently outperformed the initial valuation.
Martin Hellawell, Softcat CEO, said that the last financial year had seen it open an office in Glasgow, add 133 to the workforce and pick up a clutch of best partner awards from leading vendors.
“We are pleased to report continued strong organic growth at Softcat with 12.8 per cent revenue growth, 17.5 per cent growth in gross profit and 15.2 per cent growth in adjusted operating profit, achieved against a backdrop of very modest growth in the UK economy which has equally been reflected in the IT market,” he said.
“We have continued to win large numbers of new customers and earn increased spend from our existing customers. This has been achieved by our relentless focus on customer service, which is in turn driven by an excellent and engaged team of people at Softcat,” he added.
The Marlow-based software reseller Softcat has listed in a deal that valued the business at £472.3 million.
Softcat valued its shares at 240p, and they climbed as high as 270p in early trading. It said the IPO allowed its founders to sell down their stakes and the group would receive no proceeds from the flotation.
Founder Peter Kelly set up the firm in 1993 and has described himself as a “weird and eccentric entrepreneur.” He sold just over a third of his stake, raising an estimated £88m. He retains a holding of around 33 percent, which is worth around £150 million.
Kelly ran the company until 2006 and was its chairman until three years ago, owning around half the equity before the listing.
Martin Hellawell, chief executive, owned 12 percent of the business, valued at £56 million. He sold a third of his holding.
The float also created a number of paper millionaires among its employees. Staff, excluding founders, own some 24 percent of the company.
Kelly hitchhiked around the world before joining Xerox sales in 1981. His past ventures include founding a recruitment firm, and he launched an Apple dealership in 1988 before going on to found Softcat in 1993.
Started as a mail-order software firm, it has grown to become a major reseller to Microsoft and other large providers, as well as providing data centres for small businesses across the UK.
The group’s sales last year rose 18 pe cent to £596m with profits of £40.6 million. Hellawell said in a statement: “We are delighted with the outcome of the IPO process thus far and now look forward to fully focusing on the running and future development of our business.”
Vin Murria joined the board. She is one of the UK’s longest-standing female IT entrepreneurs, she ran Advanced Computer Software until it was taken over by US private equity group Vista Partners last year in a £725 million deal.
Hardware giant Dell claimed its two top channel tiers, PartnerDirect, and Premier and Preferred, grew by 29 percent in the last year.
Michael Dell, the founder of the company, told attendees that there are now 1,174 Premier and Preferred level partners in EMEA. He said the channel continued to be important to Dell’s strategy.
Dell claimed that PartnerDirect, including the online solutions configurator has been adopted by over 600 partners across 10 companies.
Michael Dell said: “We see our partners as a core part of our team, our strategy and our future, and we will continue investing to grow our business together.”
Gongs were handed out to UK company Softcat, winning UK partner of the year and platinum partner of the year. Pictured are Laurent Binetti, Greg Davis and Michael Dell himself. Michael Dell is second from the left and we don’t know which one is Laurent, which Greg and we don’t know who the others are. Sorry.