Softcat delivers investor cheer with profit beating update

Softcat's investors will be pleased to have read the words 'exceptionally well' as a description of how the resellers fourth fiscal quarter is shaping up.

The firm's fiscal year ends at the end of this month but a trading update issued this morning will give those eagerly waiting for the numbers a taster of what is to come.

"Following the positive statement released on 23 May outlining a successful third quarter, the Company has continued to perform exceptionally well. Market conditions have been very favourable and growth against prior year has accelerated," stated the update.

"As a result, the Board now expects that full year 2018 adjusted operating profit will be materially ahead of its prior expectations," it concluded.

Following the statement shares increased by 8% with the market reacting positively to the indication that profits would be better than expected.

When the Q3 numbers came out the firm revealed that market conditions and customer demand had remained strong throughout the fiscal year so far and that has clearly remained through Q4.

Speaking back in May, Softcat CEO Graeme Watt opened up on the strategy: "We continue to hit our goals across the business. We've achieved this through our high energy focus on winning new customers and selling more of our technology and services portfolio to existing customers."

"This simple strategy is serving us well and we still have considerable market share opportunity," he added.

The prospects for the next fiscal year being buoyed by the benefits of further expansion got a boost last month when Softcat settled on a location in the Dublin area for its Irish office last month, which is announced as part of its plans to expand its footprint geographically. 

Softcat floated in November 2015 with a value of £472.3m and has consistently delivered good results and finished its first couple of years as a public entity strongly.