Softcat reports 18.3% gross profit growth, completes first acquisition

Published 22/10/2025, 07:24

Investing.com -- Softcat PLC (LON:SCTS) on Wednesday reported record financial results for the year ended 31 July 2025, with gross profit increasing 18.3% to £494.3 million and underlying operating profit rising 16.9% to £180.1 million.

The company achieved strong performance across its business segments, with gross invoiced income (GII) growing 26.8% to £3.62 billion, driven by contributions from larger solutions projects in the second half and very large, low margin deals. This marks Softcat’s 20th consecutive year of double-digit gross profit growth.

Statutory operating profit rose 12.2% to £172.9 million, which included £7.2 million in non-underlying costs primarily related to systems investment. The company maintained strong underlying cash conversion at 95.6%, ending the year with £182.3 million in cash and cash equivalents.

"I’m very pleased to report another record performance for Softcat, which marks a milestone achievement of 20 consecutive years of double-digit gross profit growth," said Graham Charlton, Softcat CEO. "The strength of our business model and our consistent strategic execution underpin our continuing ability to scale and invest for future growth."

During the year, Softcat completed its first acquisition with the purchase of Oakland, a data and AI consultancy, expanding its capabilities in a growing market segment. The company also invested significantly in IT infrastructure, data and digital projects, new sales and HR systems, and its office network.

The Board has recommended a final ordinary dividend of 20.4p per share, resulting in a full year dividend of 29.3p, up 10.2% YoY, along with a special dividend of 16.1p per share.

For FY2026, Softcat expects to deliver low double-digit gross profit growth and high single-digit underlying operating profit growth, excluding the significant incremental contribution from large projects in FY2025. The company noted that growth in underlying operating profit for FY2026 will be first half weighted due to the timing of large projects.

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