Softcat Plc · LSE:SCT
Softcat — FY2024 Earnings Presentation
24 slides from Softcat's earnings presentation, Oct 24, 2024
Slide 1: Evolution: Results for the year ended 31 July 2024
Evolution Results for the year ended 31 July 2024 Graham Charlton, CEO Katy Mecklenburgh, CFO 24 October 2024
Slide 2: Largest provider of cyber security, cloud and IT infrastructure solutions in the UK
We are the largest provider of cyber security, cloud and IT infrastructure solutions in the UK¹, supporting local customers with their global needs We support commercial and public sector organisations to design, procure, implement and manage their IT infrastructure Corporate and public sector custo
Slide 3: Financial Review
2024 Financial Review Katy Mecklenburgh, CFO Softcat plc Results for the year ended 31 July 2024 3
Slide 4: Consistent strategic execution driving further profitable growth
Consistent strategic execution driving further profitable growth GII* Gross profit Operating profit Cash conversion** £2.85bn £417.8m £154.1m 95.9% FY23: £2.56bn FY23: £373.8m FY23: £140.9m FY23: 93.2% +11.3% +11.7% +9.3% £158.5m closing cash Ordinary dividend Special dividend Customers Gross profit
Slide 5: Summary income statement
Summary income statement £m FY24 FY23 Change • GII growth driven by strength in software and services, Gross invoiced income 2,852.2 2,563.3 11.3% partially offset by decline in hardware. Revenue 962.6 985.3 (2.3%) • Revenue decline reflects reduction in hardware sales Gross profit 417.8 373.8 11.7%
Slide 6: Well-diversified customer base and broad customer offering
Well-diversified customer base and broad customer offering Our well-balanced customer base, together with the breadth and depth of our customer proposition, supports continued growth and drives significant competitive advantage Customer segment Product Technology 17% 21% 29% 38% 41% 20% 63% 41% 30%
Slide 7: What drives progress in customer numbers and GP per customer
A closer look at what drives progress in customer numbers and GP per customer Customer count and GP per customer Customers delivering at least £1k GP in a single year 11,000 8,000 £40k £50k 10,000 7,500 7,000 £40k 9,000 £30k 6,500 8,000 £30k 6,000 7,000 £20k 5,500 £20k 6,000 £10k 5,000 £10k 5,000 4,
Slide 8: Strong cash generation
Strong cash generation £m FY24 FY23 • Good net working capital management, particularly on Operating profit 154.1 140.9 receivables Depreciation and amortisation 6.6 6.1 • Increased capex reflecting investments in IT systems Net movement in working capital (9.4) (15.7) and expansion of data and digi
Slide 9: Further dividend growth
Further dividend growth £m FY24 FY23 • Total ordinary dividend for the year of 26.6p, +6.4% Interim 8.5p 8.0p versus FY23, reflecting PAT growth in the period Final 18.1p 17.0p • The Group remains debt free and, reflecting the Total ordinary 26.6p 25.0p company's strong cash generation is again retu
Slide 10: Disciplined approach to capital allocation
Disciplined approach to capital allocation Expanding headcount and investing in capabilities, systems Investment in organic growth and processes to enable growth and gain market share. The main driver of long-term shareholder value Distributing between 40% and 50% of reported profits after tax Progr
Slide 11: Outlook
Outlook • Softcat operates in a significant and growing market, and we continue to invest to capitalise on this exciting growth potential • In FY2025, we expect to deliver another year of double-digit gross profit growth, together with high single-digit operating profit growth Softcat plc Results fo
Slide 12: Strategic update
Strategic update Graham Charlton, CEO Softcat plc Results for the year ended 31 July 2024 12
Slide 13: Our track record of organic growth
Our track record of organic growth Passed 2.5k staff £450m Softcat core 3,000 Softcat UK Passed 10k customers addressable market share¹ UK market £400m ~£60bn ~5% Became no. 1 VAR in the UK 2,500 £350m Opened US office in Virginia £300m 2,000 Opened first office outside the UK in Dublin £250m Listed
Slide 14: Evolving a proven strategy
Evolving a proven strategy Acquire more customers Sell more to existing customers Culture and Special Market-leading capability customer service culture development Highly engaged Reinvestment employees Loyalty in people and and proposition Best in class customer propositions trust Market-leading pe
Slide 15: The components of our customer proposition for the future
The components of our customer proposition for the future Customer proposition development Technology Data strategy proposition Vendor Finance Sales IT management operations, strategy strategy enablement legal Technical and Digital service strategy offering Chief Chief Chief Chief Revenue Technology
Slide 16: The three facets of our technical offering
The three facets of our technical offering Technology proposition The expertise we have in modern fields Networking Hybrid Cyber Data, AI and of digital infrastructure, cloud data, AI Workspace and and cyber security platforms security automation connectivity Vendor management The relationships we h
Slide 17: Our services offering is mature, well-resourced, and spans the lifecycle
Our services offering is mature, well-resourced, and spans the lifecycle of the solutions we sell Personnel, including 10 former CIO’s, providing expert advice on all Advise 28 aspects of IT strategy Architect 82 technical specialists designing solutions Implement 105 programme management and delive
Slide 18: The three facets of our technical offering
The three facets of our technical offering Technology proposition The expertise we have in modern fields Networking Hybrid Cyber Data, AI and of digital infrastructure, cloud data, AI Workspace and and cyber security platforms security automation connectivity Vendor management The relationships we h
Slide 19: How we and customers both win from this expansion of our capability
How we and customers both win from this expansion of our capability Customers Account managers Avg. Avg. # Churn Avg. Avg. Customers tenure vendors rate tenure GP/AM/year per AM £100k+ GP p.a. FY24 <1k 11+ yrs 14 <1% customers 9+ yrs £1,343k 10 5yr CAGR: 16.8% £10k–£100k GP p.a. c.9 yrs 5 3% FY24 3k
Slide 20: Sustainability and ESG
Sustainability and ESG Sustainability Vision We strive for a sustainable future and one where our people and our planet can prosper Environmental Social Governance Softcat operations People and community Risk Strategy Supply chain Education and economy Reporting Customer solutions Diversity and incl
Slide 21: Summary
Summary Consistent Delivering Enhancing our Well positioned strategic sustainable competitive for long-term execution growth advantage opportunity Softcat plc Results for the year ended 31 July 2024 21
Slide 22: Q&A
“SOFtCat Q&A
Slide 23: Appendix
Appendix Softcat plc Results for the year ended 31 July 2024 23
Slide 24: Awards from our vendors and channel partners during FY24
Awards from our vendors and channel partners during FY24 Client Partner of the Year Dell UKI EMEA Partner of the Year Tenable EMEA Partner of the Year CrowdStrike Sustainable Impact Partner of the Year HP Cloud Innovation and Transformation Award VMware EMEA Partner of the Year Netskope As One Partn