Softcat Delivers Strong Full Year Performance
Why we think this is very good
The trading update from Softcat plc indicates the company delivered a strong performance in the 2025 financial year, with high-teens growth in gross profit and mid-teens growth in operating profit. The company remains highly cash generative, with cash conversion expected to be towards the top end of the guided range. While the RNS does not provide specific revenue growth figures, it suggests the company continued to trade well in the fourth quarter, supported by larger solutions projects. Overall, the tone is positive, and the company appears well-positioned for further growth in the next financial year.
Key Points
- High-teens growth in full year gross profit
- Mid-teens growth in operating profit
- Highly cash generative, with FY2025 cash conversion expected to be towards the top end of the guided range
- Well positioned to deliver further growth in FY2026, with low double-digit gross profit growth and high single-digit operating profit growth expected
Summary
Softcat plc, a leading UK provider of IT infrastructure technology and services, has published a trading update for the financial year ended 31 July 2025. The Group continued to trade well during the fourth quarter, supported by further conversion of larger solutions projects. As a result, the Board now expects to deliver high-teens growth in full year gross profit and mid-teens growth in operating profit. The Group also remains highly cash generative, with FY2025 cash conversion expected to be towards the top end of the guided range of 85%-95%. Looking ahead, Softcat remains well positioned to deliver further growth, with low double-digit gross profit growth and high single-digit operating profit growth expected in FY2026, excluding the significant incremental contribution from large projects in FY2025.