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By | Paul Kunert 24th May 2016 15:34

Steady as she goes at Softcat, Q3 trading in line with forecasts

No further mention of storm clouds gathering

London Stock Exchange-listed reselling machine Softcat has issued a steady as she goes update to the market though it was stat light and made no further mention of economic storm clouds gsathering.

The Marlow-based biz that floated late last year, warned at the half-way stage of fiscal ’16 ended January of “risks posed to business confidence by general global economic uncertainty”.

This was passed over today in a Q3 update for the three months ended 30 April, which “met management’s expectations for gross and operating profit from underlying trading in the period”.

“Revenue growth was slightly ahead of that seen in the first half, with gross and operating profit also growing faster than in the first six months,” it stated.

In H1 ended January, Softcat turned over £293.6m, up 10.4 per cent year-on-year. Gross profit was up 15.1 per cent to £53.7m and operating profit fell to £15.32m up from £17.23m, including exceptional costs related to the IPO.

The company said today its business mix remained slanted toward high margin area - Softcat previously said it was walking away from cut throat margin battles.

The volumes of customer and gross profit per punter was up on the first half of the year, it said.

Financial analysts forecasted Sofcat sales to reach £657m this year, which would be up ten per cent on fiscal ’15, and earning before income tax, amortisation and depreciation of £44m, which would equate to growth of three per cent. ®

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