Softcat Plc · LSE:SCT
Softcat — H1 2017 Earnings Presentation
15 slides from Softcat's earnings presentation, Mar 22, 2017
Slide 1: Interim results for the 6 months to 31 January 2017
Example Presentation Name Interim results for the 6 months to 31 January 2017 Martin Hellawell, CEO Graham Charlton, CFO 22 March 2017 Presentation Date
Slide 2: Who we are
Who we are 1,050 £672m FY16 revenue Leading IT infrastructure Employees at 31 January 2017 £121m FY16 gross profit provider £47m UK 12,200+ Customers in FY16 adjusted operating profit Focused FY16 Glasgow 200+ vendors 113% FY14-16 cumulative cash conversion 2
Slide 3: H1 2017 summary results
H1 2017 summary results Gross profit up 14.1% to £61.3m (+17.5% excluding the prior year one-off) Adjusted operating profit* up 9.4% to £21.4m (+16.4% Strong growth AND excluding prior year one-off) profitability Revenue growth 28.9%, to £378.5m Especially strong demand in Q2, partly due to
Slide 4: Business update
Business update • Our three core offerings of workplace technology, networking & security and datacentre infrastructure all delivered strong growth • Strong demand and growth in both corporate and public sector markets • Double digit growth for hardware, software and services • Brexit related curren
Slide 5: 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 5
Slide 6: Progress against plan
Progress against plan 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 800 • Excellent progress on • Increase of 8.1% in GP per (8.7%) on H1 FY16 – the recruitment customer (excluding FY1
Slide 7: H1 2017 financial review
H1 2017 financial review Graham Charlton, CFO
Slide 8: Summary income statement
Summary income statement £m H1 FY17 H1 FY16 Growth Strong gross profit growth reflects success of investment in sales and technical staff, together with heightened customer demand during Q2 ahead of vendor price rises. Revenue 378.5 293.6 28.9% GP margin movement: (0.6% pts) due to FY16 non-re
Slide 9: Customer numbers
Customer numbers H1 customer numbers* +0.8k +0.6k +9% +0.5k +7% 10.0k +7% 9.2k 8.6k 8.1k H1 14 H1 15 H1 16 H1 17 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 £0.2k non-recurring procurement benefits +5% +7% +8% u/l +4% u/l +11% £5.7k £6.1k £4.9k £5.4k H1 14 H1 15 H1 16 H1 17 10
Slide 11: Cash flow
Cash flow £m H1 FY17 H1 FY16 Operating profit 20.9 15.3 Depreciation and amortisation 1.0 1.1 Net movement in fixed assets close to nil continues to illustrate the relatively low capital intensity of the model Net capital expenditure (1.1) (1.0) Movements in working capital 2.3 6.2 Net working c
Slide 12: Dividend
Dividend An interim dividend of 2.9p (2016: 1.7p) per share Total dividend payment will be £5.7m (2016: £3.3m) Ex dividend date is 30 March 2017 Record date is 31 March 2017 Payment date is 28 April 2017 12
Slide 13: Closing remarks
Closing remarks Martin Hellawell, CEO
Slide 14: Summary
Summary Strategy unchanged – focus on UK organic growth Strong gross profit growth Good conversion to the bottom line and into cash despite ongoing investment Acceleration in customer number growth Reduction in gross profit margin is not a concern, given strong growth All areas of the bu
Slide 15: Outlook
Outlook Strong momentum in the business and a good start to H2 But as always a long way to go Confident of meeting the Board’s expectations for the full year 15