Channel player Softcat has told the world+dog that it expects its full year results to exceed expectations.
The firm indicated to the markets that it had built on strong momentum in the first half with a decent performance in its fiscal third quarter with “double digit year on year growth in revenue, gross profit and operating profit”.
That first half saw Softcat deliver increased revenues of 10 percent to £577 million, gross profits improving by 20 percent to £134.5 million and operating profits up 41 percent to £57.1 million, for the six months ended 31 January.
The third quarter trading update also indicated that it had seen growth coming more broadly across the business.
The company said that “run rate transaction volumes strengthened in the latest period, and cash collections and conversion have remained good, in line with expected trends. This means that the results for the entire year ending 31 July 2021 will be ahead of expectations”.
The channel player warned that some of the cost savings during the coronavirus pandemic would be reversed as staff returned to offices and travel increased to customer sites and events.
Softcat revealed that this year contained many of the biggest deals the firm had ever made, which were one-offs and would skew the numbers when it came to future year on year comparisons.
Softcat recently pledged to improve its green credentials and move to electric vehicles and encourage working from home.
