Softcat Plc · LSE:SCT

Softcat — H1 2018 Earnings Presentation

17 slides from Softcat's earnings presentation, Mar 21, 2018

  1. Slide 1: Interim results for the 6 months to 31 January 2018

    Example Presentation Name Interim results for the 6 months to 31 January 2018 Martin Hellawell, CEO Graham Charlton, CFO 21 March 2018 Presentation Date

  2. Slide 2: H1 2018 results summary and business update

    H1 2018 results summary and business update Martin Hellawell, CEO

  3. Slide 3: Who we are

    Who we are 1,046 £832m FY17 revenue Leading IT infrastructure Employees at 31 July 2017 £136m provider FY17 gross profit £51.5m 13,000 Customers in FY17 adjusted operating profit FY17 Glasgow Manchester Leeds Marlow Bristol London 200+ vendors 97% FY17 cash conversion South Coast 3

  4. Slide 4: H1 2018 summary results

    H1 2018 summary results  Gross profit up 22.2% to £74.8m  Adjusted operating profit* up 19.1% to £25.4m Strong growth and  Revenue up 24.9% to £472.8m profitability  Gross profit per customer up by 15.3%  600 new customers added in the period, up 6.0%  Strong cash conversion of 103%**  The Co

  5. Slide 5: Business update

    Business update • All areas of our business are performing strongly, with double-digit growth across all key technology areas, business lines and office locations • Security, networking and client devices among the strongest performers • Customer demand has remained robust with no noticeable impact

  6. Slide 6: Our proven growth strategy

    Our proven growth strategy Significant untapped growth potential Develop offering (new services, new verticals) Build scale (new offices, new recruits) Sell more to existing customers OUTSTANDING CUSTOMER SERVICE Win new customers 6

  7. Slide 7: Progress against plan

    Progress against plan Sell more to Win new Build scale, 1 existing 2 customers 3 develop the customers offering • Strong growth from existing • Customer numbers up 600 to • Further recruitment customer base 10.6k planned for H2 • Increase of 15% in GP per • Revenue and gross profit • South coast off

  8. Slide 8: H1 2018 financial review

    H1 2018 financial review Graham Charlton, CFO

  9. Slide 9: Summary income statement

    Summary income statement  Consistent, measured investment in key areas since IPO has delivered £m FY18 FY17 Growth consistent growth and developed a platform for sustainable, profitable growth in market share Revenue 472.8 378.5 24.9%  This is reflected in 22% gross profit growth, our primary meas

  10. Slide 10: Customer numbers

    Customer numbers +0.6k +0.8k +6% +0.6k +9% +0.5k +7% +7% 10.0k 10.6k 8.6k 9.2k 8.1k H1 14 H1 15 H1 16 H1 17 H1 18 10 * A customer is defined as a unique trading entity that has transacted with Softcat during the period.

  11. Slide 11: H1 Gross profit per customer

    H1 Gross profit per customer £0.2k non recurring procurement benefits +15% +5% (+8% u/l) +7% (+4% u/l) +11% £0.2k £7.1k £6.1k £5.4k £5.7k £4.9k H1 14 H1 15 H1 16 H1 17 H1 18 11

  12. Slide 12: Cash flow

    Cash flow £m H1 FY18 H1 FY17 Operating profit 24.1 20.9 Depreciation and amortisation 0.9 1.0  Capital expenditure requirements have remained relatively limited, and mainly relate to general office and computer Net capital expenditure (0.6) (1.1) equipment requirements  The net working capital mov

  13. Slide 13: Dividend

    Dividend  Our stated policy is to return 40% to 50% of profit after tax to shareholders in the form of dividends. We aim to split this c. 1/3rd interim and 2/3rd final. In line with this policy:  A dividend of 3.3p (2017: 2.9p) per share will be paid on 11 May 2018 to shareholders on the register

  14. Slide 14: Closing remarks

    Closing remarks Martin Hellawell, CEO

  15. Slide 15: Summary

    Summary  Our simple strategy remains unchanged and continues to serve us well  The market has remained robust  Strong growth reflects further gains in market share  All business lines, customer segments and branches performing well  Cash conversion maintained, dividend policy maintained  Conti

  16. Slide 16: Board Changes

    Board Changes  Graeme Watt starts as CEO on 3rd April  He joins us from Tech Data and has an outstanding reputation within the industry  I will step into the Non-executive Chairman role at the same time  Brian Wallace to step down from the Board  This brings my 12 year tenure as CEO to a close,

  17. Slide 17: Outlook

    Outlook  The second half of the year has started well and the Board is confident of meeting its expectations for the full year  Some important months ahead and we remain very focused on continuing to deliver outstanding service for our customers 17

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