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(Alliance News) - Softcat PLC on Tuesday declared an increased final dividend alongside a special dividend, amid surging annual earnings figures on a steady improvement in revenue.
The IT infrastructure product and services provider posted a pretax profit of GBP119.0 million in the financial year that ended on July 31, an annual rise of 27% from GBP93.6 million. While revenue grew a steady 7.4% to GBP1.16 billion from GBP1.08 billion.
The Marlow, England-based firm said growth was built on a strong performance in both the first and second halves of the year, as it extended its record of organic year-on-year growth in gross invoiced income, gross profit and operating profit to sixty-four consecutive quarters.
Softcat raised its final dividend by 29% to 14.4 pence from 11.2p, increasing the full-year payout by 25% to 20.8p from 16.6p. The company also declared a special dividend of 20.5p, up from 7.6p a year before. Softcat Chief Executive Officer Graeme Watt credited "robust" cash generation for the special dividend.
Shares were trading 6.0% lower in London on Tuesday around midday at 1,898.00 pence each.
Looking at the new financial year, the FTSE 250-listed firm said trading had started well and that it remained "confident of the future of the industry and especially Softcat".
"I am pleased to report on a record set of results in our 2021 financial year," commented Chief Executive Graeme Watt.
"Public sector demand remained strong throughout the period and we saw further recovery in the corporate sector with an acceleration in customer growth and order volumes as the year progressed."
For financial year 2022, Softcat expects that the resumption of business travel and events will create a "significant headwind". While this will be amplified in the first half by very strong income comparatives in 2021. Operating profit performance for the coming financial year will be slightly more weighted towards the second half than in 2021, the company highlighted, in line with the record achieved in 2021 overall.
Double-digit gross profit growth is being targeted, well ahead of market trend.
By Will Paige; willpaige@alliancenews.com
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