Reseller praises mid-market's performance as turnover hits £1.6bn
Softcat highlighted the performance of the mid-market in its full-year results, which saw revenue rise over seven percent to £1.16bn for its year ending 31 July 2021.
The reseller also saw gross profit – a “key measure” of income for the company – jump 17 percent to £276.4m, while operating profit increased over 27 percent to £119.4m.
Softcat also saw gross profit per customer grow by 14.6 percent and increased the size of the customer base by 2.3 percent. It also increased its headcount by 11 percent to 1,681.
“I am pleased to report on a record set of results in our 2021 financial year,” stated CEO 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. As previously reported, the first half of the year was particularly strong as we delivered a small number of exceptionally large value mid-market deals.
“Our growth was again broad-based but I would highlight the mid-market for its strong contribution to our overall GII growth of 17.7 percent. It was particularly pleasing to see the corporate business continue to recover in the second half and for us to be able to drive growth for our major vendors throughout both halves of the year”
“Performance also benefitted from a small number of very large one-time deals in the first half, as well as Covid-related cost-savings from not being able to carry out some of our ordinary activities, mainly in the areas of travel and events.”
Softcat has said its new fiscal year has started well and it anticipates that the resumption of business travel and events will create a “significant” headwind in 2022. It warned that this headwind will be amplified by “very strong” income comparatives due to the large deals it made in is H121, meaning that operating profit for its FY22 will be slightly more weighted towards the second half than in 2021.
“We continue to target double-digit gross profit growth, well ahead of market trend. As we maintain high levels of investment in future growth, we expect full year operating profit for 2022 to be in line with the record achieved in 2021,” Watt stated in his review of the company.
“While it is difficult to look too far forward, given the strength of our business, the outlook for the industry and our confidence in our people, we expect to return to strong operating profit growth thereafter.”