Softcat Plc · LSE:SCT
Softcat — FY2017 Earnings Presentation
18 slides from Softcat's earnings presentation, Oct 18, 2017
Slide 1: Results for the year ended 31 July 2017
Example Presentation Name Results for the year ended 31 July 2017 Martin Hellawell, CEO Graham Charlton, CFO 18 October 2017 Presentation Date
Slide 2: 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 2
Slide 3: 2017 summary results
2017 summary results Revenue up 23.8% to £832.5m Gross profit up 12.9% to £136.3m (+16.2% excluding the prior year one-off) Adjusted operating profit* up 10.1% to £51.5m (+16.4% Strong growth and excluding prior year one-off) profitability Gross margin down by 1.6% pts: FY16 one-off, large g
Slide 4: Business update
Business update • All areas of our business are performing strongly, with double-digit growth across all key technology areas and business lines • Security and services businesses among the strongest performers • Cloud transition continues to present both opportunities and challenges • Good growth f
Slide 5: 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 5
Slide 6: 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 to • Excellent progress on customer base 13.0k from 12.2k recruitment across sales, • Positive trends in business • Increases in both co
Slide 7: 2017 financial review
2017 financial review Graham Charlton, CFO
Slide 8: Summary income statement
Summary income statement £m FY17 FY16 Growth Consistent, measured investment in key areas since IPO has developed a Revenue 832.5 672.4 23.8% platform for sustainable, profitable growth This is reflected in double-digit revenue and profit growth in 2017, Gross Profit 136.3 120.7 12.9% despite a
Slide 9: Sales experience drives successful productivity
Sales experience drives successful productivity GP (£m) 150 140 FY17 130 120 FY16 110 FY15 100 90 FY14 80 70 FY13 60 FY12 50 500 600 700 800 900 1,000 1,100 1,200 1,300 Cumulative man years experience across all sales floors 9
Slide 10: Summary income statement
Summary income statement £m FY17 FY16 Growth Consistent, measured investment in key areas since IPO has developed a Revenue 832.5 672.4 23.8% platform for sustainable, profitable growth This is reflected in double-digit revenue and profit growth in 2017, Gross Profit 136.3 120.7 12.9% despite a
Slide 11: Gross margin movement
Gross margin movement • Overall decline in GP margin from 18.0% to 16.4% • (0.5% pts) due to 2016 non-recurring procurement benefits • (0.3% pts) due to largest ever licensing deal for an 80,000-user central government department at very low initial margin - £14m revenue in 2017, and expected to del
Slide 12: Impact of FY16 one-off
Impact of FY16 one-off £m (reported) FY17 FY16 FY17 Growth FY15 FY16 Growth Revenue 832.5 672.4 23.8% 596.1 12.8% Gross Profit 136.3 120.7 12.9% 102.8 17.5% GP% 16.4% 18.0% 17.2% Administrative expenses (84.8) (74.0) 14.7% (62.2) 18.9% Adj Operating profit 51.5 46.8 10.1% 40.6 15.2% Adj OP % 6.2% 7.
Slide 13: Customer numbers
Customer numbers +0.8k +0.8k +6% +0.8k +7% +7% 12.2k 13.0k 10.7k 11.4k FY14 FY15 FY16 FY17 13 * A customer is defined as a unique trading entity that has transacted with Softcat during the period.
Slide 14: Gross profit per customer
Gross profit per customer £0.3k non recurring procurement benefits +7% +9% (+10% u/l) (+6% u/l) +9% £10.5k £9.0k £9.6k £8.3k FY14 FY15 FY16 FY17 14
Slide 15: Cash flow
Cash flow £m 2017 2016 Operating profit 50.2 42.2 Depreciation and amortisation 2.0 2.1 Net movement in fixed assets slightly negative over the last two years reflects our lack of exposure to a capital Net capital expenditure (1.5) (1.7) intensive, highly competitive IaaS landscape. Movements in w
Slide 16: Dividend
Dividend 2017 2016 Interim 2.9p 1.7p Final 6.1p 3.6p Special 13.5p 14.2p Total 22.5p 19.5p Ex dividend 2 November Payment 15 December If approved, since IPO in November 2015 total cash returned to shareholders will rise to £83m 16
Slide 17: Closing remarks
Closing remarks Martin Hellawell, CEO
Slide 18: Summary
Summary Strategy unchanged – sell more to existing customers, win new customers Very strong revenue growth at 24%; helpful but not our most important measure GP and OP growth of 16% excluding one-off benefit in FY 2016 Strong cash conversion All business lines, customer segments and branch