Softcat ahead of expectations

Softcat has given investors some cheer on the hottest day of the year with an update indicating that its fourth fiscal quarter is going well.

The firm has consistently delivered good results and was ahead of expectations for its 2018 fiscal year is on course to do the same again with the update giving a picture of the channel player enjoying decent trading conditions.

"Following the positive statement released on 20 May 2019 outlining a strong third quarter, the Company has continued to trade well during its fourth and typically largest financial quarter," the update stated.

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

There are still a few days left in the firm's fiscal year, which finishes on 31 July, with preliminary numbers for the full year expected out towards the end of October.

When MicroScope sat down with Softcat CEO Graeme Watt the other week he made it clear that he believed there was plenty of growth left in the UK market for the firm to exploit.

“We have a very simple strategy: keep going after the share in the market, both by acquiring new customers and selling deeper into existing customers. We have built out a technology portfolio strongly in the last four or five years and it is continuing to take share and it’s a simple strategy that is well executed. We think it has loads of runway in terms of share to go after in the UK,” he said.

Softcat is also just weeks away from opening its latest office in Birmingham as it looks to add even more country coverage.

“We have a strong track record of sticking to the market we know and investing in new offices,” added Watt “Over the last few years we have opened up one a year and last year we opened up one in Ireland and it has been a very successful model. With Birmingham we will have eight offices in the UK and one in Ireland.”