Softcat Share Discussion Threads

[togglebrush] 28/3/2023 06:12

In brief Today's Interims:-
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Highlights for the six months to 31 January 2023

Growth in gross profit (GP),was very strong at 17.9% and ahead of expectations
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Operating profit was also ahead of expectations .
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Gross invoiced income (GII) was up 4.9%,
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Performance and growth drivers have again been broad-based,·
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Closing headcount was up 21.1% ·
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Customer base grew by 3.3%, GP per customer was up by 17.4%,
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Cash generation was strong 117.8%;Cash closed at £97.7m;Company remains debt free.
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An interim dividend of 8.0p per share, up 9.6%, paid on 24 May 2023; ex-dividend on 13 April 2023.

[togglebrush] 18/3/2023 08:20

Negotiated trades, dealt en mass after the bell on Friday, before the Interims due 28th March, with a spike in the share price, very high daily volume, and following a new CFO appointment, all look very interesting.

[fuji99] 15/3/2023 11:55

Now it's the turn of Credit Suisse spreading toxicity into the markets. Could be another big bank going down. Market nervousness and volatility are now the norm.

[togglebrush] 15/3/2023 07:54

Softcat plc will announce its results for the six months to 31 January 2023 on Tuesday 28 March 2023.

and will host an investor/analyst conference call 9.30am UK time, on Tuesday 28 March.

[redface] 24/1/2023 21:11

Microsft results just out and are better than expected:

[disc0dave45] 31/10/2022 14:54

That will put the kiss of death to the sp!

[my retirement fund] 30/10/2022 09:28

Tipped this week IC. FT says no drop off from working from home in sales

[ianguerin] 27/10/2022 07:50

shareholder 7 - Liberum don't share your view about costs, but who takes notice of brokers? They seem to be suggesting that hardware updates will slow down, which may be an understandable viewpoint, but realistic?

hxxps://citywire.com/funds-insider/news/expert-view-hargreaves-lansdown-reckitt-zoo-digital-rws-and-softcat/a2400938?re=102320&refea=1738689#i=6

[disc0dave45] 25/10/2022 15:56

EIKeeping my eye on COA, let's see what Hunt delivers and the subsequent BoE rate increase.Any reason for the afternoon kick up in the market generally?Sorry for off topic too :)

[essentialinvestor] 25/10/2022 13:42

Dave, nice day for COA atm - on around 10.5 X this FY, dropping to 7 X on FY '23 (if the deliver).
May drift back towards 55 pence if markets sell off again.

Apologies for off topic.

[disc0dave45] 25/10/2022 13:10

They said today that operating profit for this FY will be on a par with FY22, so not much growth.My slight concern at the moment is their staffing cost increases in H1 eroding margin and extending through to H2....so risking their expectations of matching year end operating profit.

[essentialinvestor] 25/10/2022 12:52

Dave, looking at FY '23 and '24 consensus there does not appear to be much growth forecast - may be adjusted following today.

UK about to take a significant macro hit but SCT market arguably more resilient.

Previous multiples were in a ZIRP environment and easier to justify,
post ZIRP leading to multiple compression across the market.

On a very quick first look this seems fairly valued with so much else
getting cheaper, however the record is strong, no debt ..etc.

[essentialinvestor] 25/10/2022 12:37

I've just started looking at this so will need to watch or read the conference
call presentation. I know the name as it's held by some IT's I hold.

Bought a very small amount to keep it on m screen.

[shareholder7] 25/10/2022 11:38

Lack of understanding it's not a tech share This will pick up once the management has done it's rounds later but great pension share if you can wait

[essentialinvestor] 25/10/2022 11:17

What's driven the huge de-rating?, wider tech multiple compression?, bear market..

[shareholder7] 25/10/2022 11:02

What people don't realise is this company is a trader and has a unique sales model by recruiting graduates and paying them on Gross profit.That ensures a very competent work force and Softcats competition don't do this. So it's a sales model that makes them different Everyone will need office and essential software so sales will continue on the up The more people they hire the more margin they make that's why employee numbers are key Great share to put away, take the dividend and wait for it to hit new highs as it will

[disc0dave45] 25/10/2022 10:37

EI"Strong balance sheet position maintained with net cash at year end of GBP97.3m (2021: GBP101.7m"

[essentialinvestor] 25/10/2022 10:34

thanks, late one last night.

[ddubzy] 25/10/2022 10:23

Our balance sheet remains strong, and the Company carries no external bank debt. Consequently, we are confident that the business is in a very strong position to continue to outperform the market.Probably explains why this continues to fall!!!!

[essentialinvestor] 25/10/2022 09:44

Dave, is there net debt here, can't see on a first look through, thanks.
Need a coffee.

[disc0dave45] 25/10/2022 09:23

Agree. On a PE of 20x is back to 2018 lows when eps was half what it is now. As a comparison, the share price peaked in 2018 at about 845, so double that for now is 1690p. This will recover when growth / Tech returns to favour, but until then?.

[brut winky] 25/10/2022 07:19

Looking to buy back in after selling weeks ago, will wait for some weakness.

[shareholder7] 25/10/2022 06:36

? good results market does not get Softcat