Softcat PLC on Tuesday reported a half-year revenue decline but said profit came in ahead of expectations.
The IT infrastructure provider said it now expects its annual outturn to be ‘slightly ahead of previous estimates’.
Softcat shares were 5.3% higher at 1,215.00 pence each in London on Tuesday morning, among the best mid-cap performers.
The Buckinghamshire-based firm said revenue in the six months to January 31 fell 11% to £512.4 million from £577.8 million. Pretax profit declined 1.7% to £63.1 million from £64.2 million.
Operating profit declined 1.7% on-year to £63.1 million from £64.1 million, ‘ahead of the board’s initial expectations’.
Gross profit, which does not take into account administrative expenses or finance costs, increased 18% to £177.1 million from £150.2 million a year prior. It was an outcome that beat expectations, Softcat said.
‘I am pleased to be reporting positive numbers across a whole range of key performance indicators in a period that has exceeded expectations,’ Chief Executive Graeme Watt said.
Softcat said while there is uncertainty going into the second half, it ‘now expects that the outturn for the full year will be slightly ahead of previous estimates’.
Softcat lifted its interim dividend by 9.6% to 8.0p per share from 7.3p.
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