Softcat Share Discussion Threads

[smegster] 20/10/2020 14:15

Although revenue growth was decent (8%), the Net cash generated from operating activities has gone down slightly, mainly due to a large rise in Income taxes paid (2020 - 27.1m, 2019 - £15.5m)

Seems strange, I wonder why Income tax paid has gone up so much (a 75% rise)?

[maldridge27] 20/10/2020 11:00

Most of sales in FY20 was attributed to sales of MS licensing and computer hardware, ( a lot of laptops as home working edict started to rise) This pipeline was exhausted by end of FY20 which coincided with end of the virus first wave. The ‘softeningR17; of demand is a pointer to a fall in sales of laptops but they should make up for it with large scale cloud wins. They kind of need to add something else into the mix to make their business look as strong as Computercentre. I would say they need to try and move into a new technology area or expand into the US to make the share price really fly but right now i will hoLe and see what happens. I’m not expecting it to rise very quickly and think it will remain between 1400 and 1150p for a good few months.

[stdyeddy] 20/10/2020 08:11

What were people here hoping for in September when it was 1400p; a reverse takeover of Microsoft?

[ddubzy] 20/10/2020 08:08

It was only a short while ago that SCT were going to cancel the divi on COVID uncertainty, its now reinstated including the March divi plus a special, albeit reduced slightly. Cant keep the market happy it seems

[mad foetus] 20/10/2020 08:06

I've bought in small, I understand the slight caveat at the end of the results but in a way think they are more relevant to market generally than SCT in particular

[mfhmfh] 20/10/2020 08:03

'Increases in both customer base and average gross profit per customer, demonstrating progress against both key elements of our strategy.'

[peterlowen] 20/10/2020 07:46

At the other end of the mid-caps, Softcat shed 11%, after cutting its special payout.

Softcat raised its total ordinary dividend by 11% to 16.6 pence and proposed a special payout of 7.6p, though this is down 53% from a year earlier.

The IT infrastructure products and services firm's revenue climbed 8.6% to GBP1.08 billion in the 12 months ended July 31, with pretax profit rising 10% to GBP93.6 million.

[stdyeddy] 20/10/2020 07:46

Cautiously, I've accepted the reaction on the open as a gift and have bought in at 1108. Re-read the main points and am still a little baffled at the open. Fat-finger? Overnight fall in the NASDAQ? I'm expecting this to finish somewhere above 1300. 2% in divis being proposed for Nov 6? Well, thanks very much!

[iandippie] 20/10/2020 07:42

In the outlook statement it says...This year has started well, however we do expect corporate customers to continue to be circumspect with their spending over the coming months...Will probably bounce back a bit from this drop but there won't be a massive stampede to jump on board at this stage with a forward pe of 32.

[ddubzy] 20/10/2020 07:28

Expected a 10% rise, not drop. Wouldnt be surprised if it was a blue finish. 23p odd divi soon

[n0rbie] 20/10/2020 07:24

That was a comment about early 2020

[iandippie] 20/10/2020 07:20

BUSINESSPERFORMED STRONGLY, BUT EXPERIENCED SOFTENING IN DEMAND FROMCORPORATE CUSTOMERSThat's why it's gone down.

[siggs44] 20/10/2020 07:18

Are they reading the same report as me!

[n0rbie] 20/10/2020 07:14

Very odd reaction?!

[iandippie] 20/10/2020 07:13

The outlook was cautious

[peterlowen] 20/10/2020 07:11

Paying Dividends, good progress, no debt, WTF

[siggs44] 19/10/2020 16:30

Looking forward to the results tomorrow.

[fuji99] 10/9/2020 13:43

Interesting analogy with Computacenter. - - -

[fuji99] 09/9/2020 12:49

One of the best software house on offer under tough times. The share price will follow the steps of CCC in the next few months for sure.

[peterlowen] 19/8/2020 14:15

Why I see the Softcat share price as a growth buy, even in a stock market crash

[n0rbie] 19/8/2020 07:57

Great company in a sector that is in high demand. Huge growth to cloud (see Microsoft results). Am a customer of theirs and work in the industry so this is a clear winner for me.

[redips2] 19/8/2020 07:21

All good 👍

[siggs44] 19/8/2020 06:49

Great trading update and fabulous that they are going to pay the dividend that was due earlier this year plus the dividend due at the end of the year.
Expecting a good rise in the share price today.