Softcat Plc · LSE:SCT
Softcat — FY2018 Earnings Presentation
15 slides from Softcat's earnings presentation, Oct 17, 2018
Slide 1: Results for the year ended 31 July 2018
Example Presentation Name Results for the year ended 31 July 2018 Graeme Watt, CEO Graham Charlton, CFO 17 October 2018 Presentation Date
Slide 2: Who we are
Who we are 1,188 £1,082m FY18 revenue Leading IT infrastructure Employees at 31 solutions provider July 2018 £175m FY18 gross profit £70.5m 11,900 Customers in FY18 adjusted operating profit FY18 200+ vendors 98% FY18 cash conversion 2
Slide 3: 2018 summary results
2018 summary results Gross profit up 28.5% to £175.2m Adjusted operating profit* up 36.9% to £70.5m Revenue up 29.9% to £1,081.7m Strong growth and Gross profit per customer up by 23% profitability 530 new customers added in the period, up 5% 52 consecutive quarters of organic top line a
Slide 4: Business update
Business update • Customer demand has remained robust in a particularly buoyant market • 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 perf
Slide 5: Our proven growth strategy
Our proven growth strategy Acquire more customers Sell more to existing • Customer numbers up 530 (+5%) customers • Revenue and gross profit from new customers • Strong growth from existing customer base up on prior period • Increase of 23% in GP per customer • Growth coming from both corporate and
Slide 6: 2018 financial review
2018 financial review Graham Charlton, CFO
Slide 7: Summary income statement
Summary income statement Strong revenue and gross profit growth reflect successful execution in £m FY18 FY17 Growth a buoyant market Gross margin slightly down year on year reflecting strong Revenue 1,081.7 832.5 29.9% performance by our public sector partner business and consequential small shi
Slide 8: Sales experience drives successful productivity
Sales experience drives successful productivity GP (£m) 210 190 FY18 170 150 FY17 130 FY16 110 FY15 FY14 90 FY13 70 FY12 50 500 700 900 1,100 1,300 1,500 1,700 1,900 Cumulative average man years experience of AMs 8
Slide 9: Customer numbers
Customer numbers +0.5k +0.6k +5% +0.8k +6% +0.7k +8% +7% 11.4k 11.9k 10.7k 9.9k 9.3k FY 14 FY 15 FY 16 FY 17 FY 18 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 +23% +7% +9% +8% £14.7k £11.3k £12.0k £9.6k £10.3k FY 14 FY 15 FY 16 FY 17 FY 18 10
Slide 11: Cash flow
Cash flow £m FY18 FY17 Operating profit 68.0 50.2 Capital expenditure requirements have remained limited, Depreciation and amortisation 1.8 2.0 and mainly relate to general office and computer equipment requirements. A slight increase in capital spend is Net capital expenditure (1.1) (1.5) anticip
Slide 12: Dividend
Dividend 2018 2017 Interim 3.3p 2.9p Final 8.8p 6.1p Special 15.1p 13.5p Total 27.2p 22.5p Basic EPS 27.9p 20.4p Ex dividend 1 November Payment 14 December Since IPO in November 2015, total cash returned to shareholders will rise to £136.8m 12
Slide 13: Closing remarks
Closing remarks Graeme Watt, CEO
Slide 14: Summary
Summary Our simple strategy remains unchanged and continues to serve us well Market conditions were particularly buoyant Strong growth also reflects some further gains in market share All business lines, customer segments and branches performing well Cash conversion maintained, dividend po
Slide 15: Outlook
Outlook We benefited from exceptional market conditions in 2018. Despite current political and economic uncertainty, and notwithstanding tough comparative figures, we are confident of achieving further profitable growth in 2019. Trading in the first ten weeks of the new financial year has been encou