Technology and services vendor Softcat has reached its highest ever market valuation after the outfit announced that it will be doing better than City expected.
he FTSE 250-listed IT reseller said it had delivered “strong” year-on-year growth “across all income and profit measures” for its third quarter to 30 April, leading it to foresee numbers that will be “slightly ahead” of the latest forecasts.
IT infrastructure and services outfit Softcat posted a 41 percent rise in first half profits, as it won more customers, and forecast a full-year result ‘marginally ahead’ of previous expectations.
CloudHealth and Softcat have announced a new partnership.
The pair say that Softcat’s Cloud Intelligence Service, powered by CloudHealth, will bring enhanced visibility into public cloud environments, offering greater insight into spend, usage, and identifying efficiencies across all cloud platforms.
CloudHealth and Softcat will generate automated reports on all of an organisation’s public cloud usage, in Microsoft Azure
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.”
Rubrik, the Cloud Data Management Company, today announced its first global programme for resellers.
Dubbed the Rubrik Velocity Partner Programme it will tap into the $48 billion data management market opportunity. The tiered program empowers partners with a framework for differentiation, more sales and technical enablement to build and recognize expertise, and new rewards to support partners who invest in their business with Rubrik.
Bertrand Yansouni, VP of Worldwide Channel at Rubrik said: “Rubrik’s unprecedented growth is due in large part to our phenomenal partner ecosystem and our 100 percent channel go-to-market approach. Our new Velocity Partner Programme expands upon our commitment to the channel by empowering partners to drive their key business initiatives through Rubrik, like building their cloud business or driving more advanced services. We believe this new programme will increase the velocity of our partners’ success.”
Lots of buzz words in there. Sounds like the firm needs a new spinmeister to us.
Rubrik has wanted a “total” channel business model since day one. The Rubrik Velocity Partner Programme was designed with partner input and incorporates meaningful investments to enable and reward dedicated partners who lead with Rubrik.
The new program includes three tiers – Authorized, Select, and Elite. Classification is based on competency and performance. Requirements will vary based on country and partner size so that every partner has access, and a clear progression path, to the highest tiers.
The programme also introduces new specialisations to recognise the unique capabilities.Rubrik claims. So it is launching Rubrik Academy, a new “enablement” programme for the entire Rubrik partner ecosystem, which includes accreditations for partner sales, pre-sales, and post-sales.
The Velocity Partner Programme introduces a rebate for Elite partners, lead and opportunity sharing, joint marketing funds, and incentives for partner sales and sales engineer representatives in the highest tiers.
The programme also introduces a new global Partner Technical Advisory Board, reflecting the value Rubrik places on partner solution engineers’ technical expertise. The new program is being introduced at Rubrik’s EMEA Partner Conference. Program benefits will go into effect February 1, 2019.
“Rubrik’s innovative technology has been instrumental in changing perceptions of the value of backup, recovery, and data protection. Rubrik brings simplicity to traditionally complex technologies and has allowed us to elevate data management from an insurance policy to become an integral part of our customers’ strategic approach”, said Tim Jeans, Head of Specialist Sales at Softcat. “Through the new Velocity Partner Program, Rubrik is proving to us once again how valued its partners are by building our technical and sales competencies further to drive bookings, increase deal size, and accelerate profitability.”
“Rubrik is a key partner for us because their solutions offer our customers simplicity, cost savings, automation and a path to the cloud”, said Rob Owen, AVP – Chief Architect at Computer Design Integration (CDI). “The Rubrik partner program is going to give us the tools to increase not only our top-line revenue, but our profitability as well.”
“Rubrik is driving positive disruption in a market that had limited innovation and can benefit from efficiency and modernization improvements”, said Manny Punzo, Director of Data Protection and Management at Technologent, a global provider of IT, data, cloud and security services. “Their [its, Ed.] simple, scalable solution addresses our customers’ key initiatives, including not only how they improve data protection, but also how they bring the cloud into their business. Rubrik’s new Velocity Partner Program is going to help us capture this shift in the market and grow our company.”
Rubrik didn’t say which tiers these partners occupied.
Softcat’s market value has hit parity with its larger rival Computacenter.
Softcat’s market capitalisation stands at £1.34 billion compared with £1.32 billion for Computacenter.
Softcat’s revenue run rate is close to 1 billion with its recently posted interim results showing 1H 2018 revenues powering up 25 percent to £472.8 million. Its shares have more than doubled since it listed on the LSE in November 2015.
Of course, Softcat is smaller than Computacenter in almost every respect, but it is nice to know that the market value numbers are the same.
The company’s long-standing CEO Martin Hellawell has announced that he is retiring from the role and is stepping back to the non-executive chairman role to make way for his chosen successor Graeme Watt.
Softcat is to set up shop in Ireland within a year.
The news came as it announced its 50th consecutive quarter of revenue and profit growth.
The Marlow-based reseller saw revenues increase 25 percent year on year to £472.8 million in the six months ending 31 January 2018, with operating profits increasing 15 percent to £24.1 million.
The outfit has opened a south-coast office and expanded its Manchester premises during the period, and now the cunning plan is to set up in Dublin within the next 12 months.
This is a big step for the company as it would be its first time trying to operate overseas.
Softcat CEO Martin Hellawell dubbed 1H “another robust period of performance”.
The firm added 600 new customers during the period, with gross profits per customer growing by more than 15 percent, he said.
By revenue, software generated £240 million of the total, up 24 percent, with hardware growing 30 percent to £165 million. Services revenues rose by 16 percent to £68 million.
“We are benefiting from strong market demand for all our offerings and all our major customer segments and continue to relentlessly pursue our simple strategy of doing more business with our existing customers and winning new customers”, Hellawell said.
Hellawell will step into the non-executive chairman role on 3 April t and be replaced by Graeme Watt.
“It has been a great privilege to run Softcat for over twelve years. We have achieved a great deal, and it’s been a pleasure to be part of the company’s success in that period. I owe an enormous debt of gratitude to the employees of Softcat for making this possible and also thank our customers and partners for their invaluable support during my tenure”, he said.
Softcat’s market valuation has more than doubled since it went public in November 2015,
VMware and Amazon Web Services (AWS) have launched their European partnership and the UK the first market to go live.
VMware Cloud on AWS was first announced in 2016 and puts VMware’s private cloud available on AWS’ public cloud infrastructure. It has been kicking around the US since last year, and the UK is the second market to see it.
It gives VMware partners the ability themselves to extend using native AWS service capabilities. So far two partners have signed up for the programme, one of which is Softcat.
The launch sees VMware expand its Solution Provider and Cloud Provider programmes to include VMware Cloud on AWS, and release a new competency for the service.
VMware said that its partnership with AWS shows its belief that there is “no question” hybrid cloud will ultimately rule.
AWS that the public cloud vendor expects the “vast majority” of workloads to run in the public cloud eventually.
VMware Cloud for AWS will soon be available in other European markets, with a launch in Germany set to take place soon.
Channel bellwether Softcat has announced that its first half turned out better than it anticipated.
The UK’s largest pure-play IT reseller said trading for the six months to 31 January 2018 had been “strong across all segments and ahead of the board’s expectations”.
Softcat said that revenues for its fiscal 2017 grew ahead of expectations to £832.5 million now it seems that gross profit and adjusted operating profit increased by 22 and 19 percent, respectively, in the first half of its fiscal 2018, “reflecting consistent performance across the period and further successful execution of strategy”.
“Strong H1 performance will support the full-year outturn, and as a result, the board expects to exceed previous expectations slightly”, the company said.
It was an interesting quarter for Softcat. It saw itself in the courts when a Leeds newsagent complained the outfit had not paid its £840 milk bill.
The total claim was £900 once newsagent Omran Malik’s costs were factored in. Malik runs a Mace convenience shop on Carlton Parade, Leeds, around half a mile north of Softcat’s Leeds offices.
“I have supplied the defendants’ office in Leeds with deliveries of milk”, said Malik’s claim form, lodged with the county court. “I have been issuing invoices on a monthly cycle direct to Softcat PLC head office in Buckinghamshire. My final reminder was sent on the 04/10/2017 by 1st class signed for delivery to both offices.”
Softcat has appointed Graeme Watt to join the Board as Chief Executive after 1 April 2018.
IT infrastructure products and services outfit said that Watt has more than 25 years of experience in the IT distribution industry and is currently Senior Vice President EMEA, Advanced and Specialist Solutions, Tech Data Corporation (“Tech Data”), a position he has held since March 2017.
He was promoted to that role when Avnet’s Technology Solutions business was acquired by Tech Data in early 2017. Prior to that, he was President for Avnet Technology Solutions, EMEA for almost seven years and a member of Avnet’s Global Executive Committee.
Watt previously spent six years at Bell Micro (as President of Global Distribution) and his earlier career included roles at Tech Data (President EMEA) and Computer 2000 (Managing Director UK & Ireland). Graeme Watt is also a qualified accountant (ICAEW).
As previously announced, and effective from the date of Graeme joining Softcat, Martin Hellawell (currently Chief Executive of the Company) will become Non-Executive Chairman and Brian Wallace (currently Non-Executive Chairman) will retire from the Board.
The Board’s decision to appoint Watt follows an extensive search process led by Brian Wallace and Lee Ginsberg (Senior Independent Director) with the assistance of global search firm, Odgers Berndtson.
Brian Wallace, Chairman of Softcat plc, said: “Our extensive search generated an impressive field of candidates and Watt stood out for his extensive knowledge of the sector and the reseller channel as well as his strong leadership skills and delivery of growth in very sizeable business units at Avnet and Tech Data. Equally importantly, he understood and was excited by the dynamic, enthusiastic, people-oriented culture at Softcat and its importance to our Company’s future success. In Graeme, we believe we have found someone who can nurture the best of what we do today with the experience and dynamism to scale and grow the business yet further.”
Watt said: “Softcat is a significant customer of Tech Data and I have therefore seen at close quarters its remarkable growth based on a great team providing outstanding service to a rapidly growing customer base. I look forward to introducing myself to the business, getting to know its people and operations even better and working with everyone to ensure the continued success of Softcat.”
Even while it hunts for a new CEO Softcat is making piles of dosh.
Softcat’s shares were up in early trading this morning as it announced that sales were up by nearly a quarter in its first full year of trading as a public company.
Revenues for the 12 months ended 31 July 2017 rose by 24 percent to £832.5 million, which the Marlow-based reseller thanks to winning 800 new customers and selling more to
Adjusted operating profit grew by 10.1 percent to hit £51.5 million.
Softcat CEO Martin Hellawell announced this summer that he is to step back into the non-executive chairman role, and in this morning’s stock exchange announcement, the firm said its hunt for a new CEO “is progressing”.
Softcat has initiated a search for a new CEO after announcing that Martin Hellawell is quitting after 11 years at the top scratching post.
Hellawell will leave once a replacement is found, but will stay on as non-executive chairman.
It is not as if the company has been doing badly, Softcat revealed in a trading update that its Q3 trading has been in line with expectations. Having obliterated its growth expectations in its fiscal first half, Softcat continued to “trade well” during Q3, according to a trading update released this morning.
During Hellawell’s tenure, Softcat’s revenues have boomed ten-fold, from £67 million to £672 million. It floated on the London Stock Exchange in November 2015.
Hellawell said it was the right time for him to step back from the day-to-day cut and thrust of the business.
He said that he was operational and hands on in every detail, and after 11 years it takes its toll on you.
“There’s a really great opportunity for Softcat ahead of us, and it’s time to get some fresh energy into the organisation to move us forward.”
Hellawell said Softcat managing director Colin Brown has ruled himself out of the running and that his successor will most likely be an external appointment.
Hellawell said stepping back to a non-exec role would allow him to focus on charity work and on his health and fitness, but stressed he will still be heavily involved with Softcat, and the wider industry.
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.
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