Softcat Plc · LSE:SCT

Softcat — H1 2016 Earnings Presentation

14 slides from Softcat's earnings presentation, Mar 17, 2016

  1. Slide 1: Interim results for the 6 months to 31 January 2016

    Example Presentation Name Interim results for the 6 months to 31 January 2016 Martin Hellawell, CEO Graham Charlton, CFO 17 March 2016 Presentation Date

  2. Slide 2: Who we are

    Who we are 794 Leading IT infrastructure Employees at 31 July 2015 £596m FY15 revenue provider for UK SMOs 11,400 100% UK Focused Customers in FY15 £41m FY15 Adjusted operating profit 200+ vendors (1) Glasgow office opened in February 2016. 2

  3. Slide 3: H1 2016 summary results

    H1 2016 summary results l Admission in November 2015 IPO successfully completed l Revenue up 10.4% to £293.6m l Gross profit up 15.1% to £53.7m Strong top-­‐line AND l Gross profit margin up 0.8% pts to 18.3% (H1 2015: 17.5%) profitability l Adjusted operating profit* up 12.9% to £19.5m l Stro

  4. Slide 4: 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 4

  5. Slide 5: 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 numbers up • Acceleration of recruitment customer base approximately 600 (6.7%) on H1 FY15 • Front line account managers • Particularly buoya

  6. Slide 6: H1 2016 financial review

    H1 2016 financial review Graham Charlton, CFO

  7. Slide 7: Summary income statement

    Summary income statement £m H1 FY16 H1 FY15 Growth Revenue 293.6 265.8 10.4% l Strong GP growth and margin reflects customer demand for solutions-­‐rich products and services. Gross p rofit 53.7 46.6 15.1% l GP margin includes c.£1m non-­‐recurring procurement benefits – excluding which FY16 margi

  8. Slide 8: Customer numbers

    Customer numbers H1 customer numbers* +0.6k +0.5k 9.2k 8.6k 8.1k H1 14 H1 15 H1 16 8 * A customer is defined as a unique t rading entity t hat has transacted w ith S oftcat during the period

  9. Slide 9: Revenue and GP per customer

    Revenue and GP per customer Revenue per customer GP per customer +3.2% £30.8k £31.8k +7.9% £5.42k £5.85k H1 15 H1 16 H1 15 H1 16 9

  10. Slide 10: Cash flow

    Cash flow £m H1 FY16 H1 FY15 Operating p rofit 15.3 17.2 Depreciation and amortisation 1.1 1.1 l Net movements in fixed assets close to nil illustrates the relative lack of capital investment required for further Net capital expenditure (1.0) (1.4) growth. Movements in working capital 6.2 (4.7) l

  11. Slide 11: Dividend

    Dividend l A dividend of 1.70p per share will be paid on 29 April 2016 to shareholders on the register at the close of 1 April 2016 l Total dividend payment will be £3.3m l The shares will trade ex dividend on 31 March 2016 l For this first year the dividend payments will be pro rata to mirror t

  12. Slide 12: Closing remarks

    Closing remarks Martin Hellawell, CEO

  13. Slide 13: Summary

    Summary l Smooth transition to life as a public company l OP and GP growth higher in Q2 than Q1 l Strong GP growth of 15% l Increase in new customers and business from existing customers l Good revenue growth at 10% l Lower than GP growth due to positive shift in mix l Increased gross profit

  14. Slide 14: Outlook

    Outlook l Strong momentum in the business and a good start to Q3 l Well placed against competition l Expect mix shift to maintain in H2 l Continued investment for future growth l Mindful of economic and political uncertainty in H2 l Confident of meeting the Board’s profit expectations for the

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