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Highlights

  • Softcat reported a 2.3% YoY decline in FY24 revenue to GBP 962.6 million
  • Gross invoiced income (GII) rose by 11.3% YoY, reaching GBP 2,852.2 million
  • Despite challenges, Softcat maintained a stable gross profit margin of 14.6%
  • Softcat is set to release its H1FY25 results on 19 March 2025
  • Softcat aims for double-digit gross profit growth and high single-digit operating profit in FY25

 Softcat PLC (LSE:SCT) is an IT solutions and services provider, specializing in IT reselling and infrastructure solutions for corporate and public sector clients.

In the financial year 2024 (FY24), Softcat reported a 2.3% YoY decline in total revenue to GBP 962.6 million compared to FY23. The decrease was largely attributed to an 8.0% YoY reduction in hardware sales, driven by lower client device and low-margin server sales. Additionally, software revenue growth slowed to 13.1% YoY, primarily due to lower margins in public sector deals, while services revenue growth remained modest at 1.1% YoY as more services were fulfilled by partners and reported net.

Despite the revenue decline, Softcat saw a notable performance in gross invoiced income (GII), which increased by 11.3% YoY to GBP 2,852.2 million. This growth was fueled by a significant rise in software and services revenue, although hardware sales continued to decline. Gross profit mirrored the GII growth, maintaining a stable margin of 14.6%. The company experienced a decent second half of the year, benefiting from a weaker prior-year base, although macroeconomic volatility continued to impact trading conditions throughout FY24.

Recent Business Update

On 26 February 2025, Softcat announced that it would release its half-year (H1FY25) results for the period ending  31 January, 2025, on 19March 19, 2025. The results are highly anticipated, providing a detailed look at the company’s performance midway through its fiscal year.

Earlier, on 20 November 2024, Softcat reported a decent performance in its Q1 2025 trading update for the quarter ended October 31, 2024. The company saw growth in both gross profit and operating profit, driven by resilient customer demand and a well-diversified portfolio. The company’s board is confident in meeting its FY2025 full-year goals. It includes double-digit gross profit growth and high single-digit operating profit growth.

Company Outlook

Softcat is operating in an expanding market and remains focused on growth through ongoing investments. The company plans to boost its market share. It is expecting double-digit gross profit growth along with high single-digit operating profit growth in FY25.

Top 10 Shareholders

The top 10 shareholders of Softcat collectively own approximately 58.04% of the company's total shares. Peter David John Kelly holds the largest stake at around 12.60%, followed by Capital Research Global Investors Limited with approximately 10.98%.

Stock Information

The stock price of SCT has declined by around 4.30% in the past month however, it has appreciated by around 3.75% in the past year. The stock’s 52-week low and high spans from GBX 1397.42 to GBX 1831.965. As of 03 March 2025, the stock’s closing price is GBX 1535.00.

 Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 03 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.