Softcat Plc · LSE:SCT
Softcat — FY2016 Earnings Presentation
15 slides from Softcat's earnings presentation, Oct 19, 2016
Slide 1: Results for the year ended 31 July 2016
Example Presentation Name Results for the year ended 31 July 2016 Martin Hellawell, CEO Graham Charlton, CFO 19 October 2016 Presentation Date
Slide 2: Who we are
Who we are 927 Leading IT infrastructure Employees at 31 July 2016 £672m provider for UK SMOs FY16 revenue 12,200 100% UK Focused Customers in FY15 £46.8m FY16 Adjusted operating profit 200+ vendors (1) Glasgow office opened in February 2016. 2
Slide 3: 2016 summary results
2016 summary results Revenue up 12.8% to £672.4m Gross profit up 17.5% to £120.7m (including £3.4m one-off benefit) Strong revenue growth Gross profit margin up 0.8% pts to 18.0% AND profitability Adjusted operating profit* up 15.2% to £46.8m Strong cash conversion** of 86% The Company r
Slide 4: Our proven growth strategy
Our proven growth strategy Significant untapped growth potential Develop offering (new services, new verticals) Scale platform (new offices, new recruits) Sell more to existing customers OUTSTANDING CUSTOMER SERVICE Win new customers 4
Slide 5: Strategic progress
Strategic progress Sell more to Win new Scale the 1 existing 2 customers 3 platform and customers develop offering • Strong growth from existing customer base • Customer numbers up 7.5% • Record year for new hires – year-on-year, accelerating both in sales and services from 6.5% growth in prior • GP
Slide 6: 2016 financial review
2016 financial review Graham Charlton, CFO
Slide 7: Summary income statement
Summary income statement £m FY16 FY15 Growth Revenue 672.4 596.1 12.8% Strong GP growth driven by increase in both customer Gross profit 120.7 102.8 17.5% numbers and GP per customer GP % 18.0% 17.2% Includes £3.4m one-offs Administrative expenses (74.0) (62.2) 18.9% Include incremental costs
Slide 8: Impact of non-recurring savings
Impact of non-recurring savings £m (reported) FY16 FY15 Growth Revenue 672.4 596.1 12.8% Gross profit 120.7 102.8 17.5% GP % 18.0% 17.2% Administrative expenses (74.0) (62.2) 18.9% Adj operating profit 46.8 40.6 14.5% Adj OP % 7.0% 6.8% Adj OP/GP % 38.7% 39.5% £m (excluding one-off savings) FY16 FY1
Slide 9: Customer numbers
Customer numbers +7.5% +6.5% 12.2k 11.4k 10.7k FY 14 FY 15 FY 16 9 * A customer is defined as a unique trading entity that has transacted with Softcat during the period
Slide 10: Revenue and GP per customer
Revenue and GP per customer Revenue per customer GP per customer +4.9% 55.0k 52.5k +9.2% £9.9k £9.0k FY 15 FY 16 FY 15 FY 16 10
Slide 11: Cash flow
Cash flow £m FY16 FY15 Operating profit 42.2 39.6 Small net reduction in fixed asset carrying value reflects Depreciation and amortisation 2.1 2.1 capital-light model Net capital expenditure (1.7) (2.5) Small expansion in working capital due to business Movements in working capital (6.8) 13.0 gr
Slide 12: Dividend
Dividend The Board recommends the payment of a 3.6p final dividend, representing a total payment of £7.0m In addition, and reflecting the very strong cash position of the Company, the Board recommends the payment of a 14.2p per share special dividend, representing a total payment of £28.0m If
Slide 13: Closing remarks
Closing remarks Martin Hellawell, CEO
Slide 14: Summary
Summary Successful first period as a listed company Delivered 44 consecutive quarters of growth Performing particularly well against peers in the UK market Gaining share but still a lot more share to go after Business model and strategy unchanged Strong net returns despite increased PLC
Slide 15: Outlook
Outlook Good momentum entering 2017 Competitive and challenging market Brexit has had some impact but we believe it’s marginal to date Hybrid cloud, IoT, security (amongst others) all creating opportunity Ideally placed in SMO market Further opportunities in adjacent markets Last year’