Softcat Plc · LSE:SCT
Softcat — H1 2019 Earnings Presentation
14 slides from Softcat's earnings presentation, Mar 19, 2019
Slide 1: Results for the 6 months ended 31 January 2019
Example Presentation Name Results for the 6 months ended 31 January 2019 Graeme Watt, CEO Graham Charlton, CFO 19 March 2019 Presentation Date
Slide 2: Who we are
Who we are 1,188 £797m FY18 revenue Leading IT infrastructure Employees at 31 solutions provider July 2018 £175m FY18 gross profit £68.0m 11,900 Customers in FY18 operating profit FY18 200+ vendors 98% FY18 cash conversion 2
Slide 3: H1 2019 summary results
H1 2019 summary results ⚫ Gross profit up 27% to £94.7m ⚫ Operating profit up 40% to £33.9m ⚫ Gross invoiced income* up 29% to £607.8m ⚫ IFRS15 restated revenue up 21% to £434.0m Strong growth and ⚫ Gross profit per customer up by 19% profitability ⚫ Customer numbers up 620 (+6.5%) ⚫ 54 consecutive
Slide 4: Strategic update
Strategic update Acquire More Customers Sell More to Existing Customers • Customer numbers up 620 (+6.5%) • Strong growth from existing customer base • Revenue and gross profit from new customers up on • Increase of 19% in GP per customer prior period • Positive trends in business lines purchased pe
Slide 5: H1 2019 financial review
H1 2019 financial review Graham Charlton, CFO
Slide 6: Impact of IFRS 15 on revenue
Impact of IFRS 15 on revenue £m H1 FY19 H1 FY18 Growth ⚫ Presentational impact on revenue only, no impact on any Gross Invoiced Income 607.8 472.8 29% measure of profit or cash IFRS 15 Revenue Adjustments (173.8) (114.5) (52%) Revenue 434.0 358.3 21% Share of Business £m H1 FY19 H1 FY18 Growth H1 FY
Slide 7: Summary income statement
Summary income statement £m H1 FY19 H1 FY18 Growth ⚫ Strong revenue and gross profit growth reflect another period of Revenue 434.0 358.3 21.1% successful execution of the strategy ⚫ Upswing in gross margin reflects higher proportion of gross invoiced income coming from cloud-based software, meaning
Slide 8: Sales experience and longevity of customer relationships continue to drive profits
Sales experience and longevity of customer relationships continue to drive profits 110 H1 GP (£m) H1 19 100 90 80 H1 18 70 H1 17 60 H1 16 50 H1 15 H1 14 40 H1 13 30 H1 12 20 500 700 900 1,100 1,300 1,500 1,700 1,900 Cumulative years of experience of salespeople 8
Slide 9: Customer numbers
Customer numbers +0.6k +0.6k +7% +0.7k +7% +8% +0.7k +9% 9.5k 10.1k 8.9k 8.2k 7.5k H1 15 H1 16 H1 17 H1 18 H1 19 9 * A customer is defined as a unique trading entity that has transacted with Softcat during the period
Slide 10: Gross profit per customer
Gross profit per customer +19% +14% +5% +5% £9.4k £7.9k £6.5k £6.9k £6.2k H1 15 H1 16 H1 17 H1 18 H1 19 10
Slide 11: Cash flow
Cash flow £m H1 FY19 H1 FY18 ⚫ Capital expenditure requirements have remained limited, Operating profit 33.9 24.1 and mainly relate to general office and computer equipment. Depreciation and amortisation 0.8 0.9 ⚫ The slight increase period on period is in line with expectations on entering the year
Slide 12: Dividend
Dividend H1 FY19 H1 FY18 Growth Interim Dividend 4.5p 3.3p 36% Total £8.9m £6.5m 37% Ex Dividend Date 4 April 2019 Payment Date 10 May 2019 12
Slide 13: Closing remarks
Closing remarks Graeme Watt, CEO
Slide 14: Summary and Outlook
Summary and Outlook ⚫ Our simple strategy remains unchanged and continues to serve us well ⚫ Strong growth reflects further gains in market share ⚫ Significant headroom for further growth in the UK market ⚫ Performance continues to be broad-based ⚫ Continued investment in people and capacity for fut