Softcat reports double digit growth in gross profit

Softcat achieved double-digit growth in first-half gross profit, rising 11% to £196.5m, despite a 8.8% fall in revenue, to £467.2m.

The company’s gross profit growth was consistent across customer segments and technology groups, with enterprise, mid-market and public sector, datacentre and cloud, networking and security, and workplace all seeing high single-digit or low double-digit growth rates.

Gross profit growth across product types was more divergent, with double-digit growth in software and services and low single-digit growth in hardware. 

Hardware Gross Invoiced Income declined by (17.6%), impacted by a decline in client device sales.

Graham Charlton, Softcat CEO, said: "We have delivered operating profit ahead of our expectations and double-digit gross profit growth from broad-based demand. We continue to execute against our key objectives to win new customers and sell more to existing customers. 

The future opportunity in our industry remains incredibly exciting. AI, data management and cybersecurity, amongst other technologies, continue to drive rapid transformation in technology, and this will generate growth across all areas from the cloud and datacentre to the edge.”

Headcount grew 14.6%, reflecting our continued investment in building capabilities and scale to enable long-term market share gains in a growing sector.

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