(Alliance News) - Softcat PLC on Tuesday said its annual performance meant it has seen quarterly growth in revenue, gross profit and operating profit for sixty consecutive quarters as it increased its total ordinary dividend payout but significantly lowered its special dividend.
Shares in the FTSE 250 IT infrastructure products and services firm were trading 9.9% lower at 1,118.23 pence each on Tuesday morning in London.
For the twelve months to July 31, Softcat posted pretax profit of GBP93.6 million, up 10% from GBP84.8 million recorded the year prior. This was as revenue rose 8.6% to GBP1.08 billion from GBP991.8 million, driven by an increase in the company's customer base as well as in the average gross profit per customer which rose by 7.8% to GBP24,800.
The total ordinary dividend was increased by 11% to 16.6p. A special payout of 7.6p was proposed, although this was down 53% from a year earlier.
Looking ahead, Chief Executive Graeme Watt said: "This year has started well, however we do expect corporate customers to continue to be circumspect with their spending over the coming months. This may mean that market conditions remain challenging for a time, but we remain confident in our ability to gain market share and our view of the long-term opportunity is undiminished."
As at July-end, Softcat had cash of GBP80.1 million, up from GBP79.3 million the year prior.
By Ife Taiwo; ifetaiwo@alliancenews.com
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