Softcat set to benefit from increasing demand for AI, data management and cybersecurity

Softcat said the outlook for growth in the UK IT market was highly encouraging

Softcat, a leading UK provider of tech infrastructure products and services, today, reported a slight decline in revenue for 2024 but said it remained optimistic about the outlook for tech spending in the UK.

The firm reported a 8.8 per cent decline in revenue to £467m for its 2024 fiscal year (ending 31 January 2024). However, on its preferred measure of growth, gross invoiced income, income grew 4.4 per cent.

Overall, the firm reported an increase in gross profit of 11 per cent. Earnings per share came in at 25.6p, up 2.4 per cent year-on-year.

The company increased its interim dividend bt 6.3 per cent to 8.5p.

Softcat said the outlook for growth in the UK IT market was highly encouraging, and it has been boosting its headcount to make the most of potential opportunities.

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

Graham Charlton, Softcat chief, commented: “We are delighted to report a strong set of results and key performance indicators, delivering operating profit ahead of our expectations and double-digit gross profit growth from broad-based demand.

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,” Charlton added.

“These incremental tailwinds to an already growing market play perfectly into our comprehensive offering at a time when customers need broader and more integrated support from their partners than ever before.”