- Softcat Plc shares surged after it released the results of a strong Q3 performance.
- The IT services provider expected the cost savings relating to the pandemic to get reversed as it entered the next financial year.
- The FTSE 250 company predicted to see further growth on its normalised EBIT during the next year FY 2022.
Technology stocks have been on a bull run all through the last year when pandemic ravaged the whole world. Softcat Plc (LON: SCT) shares surged today after the company released its trading update for the third quarter ended 30 April 2021. The company stated that it is hopeful of its results for the full year FY 2021 being ahead of expectations after a strong Q3 performance.
It also said that the company had continued to trade steadily and had built upon its exceptional first half performance that had delivered double-digit growth in gross profit, revenue, and operating profit. Shares in SCT were up 5.16 per cent at GBX 1,897.00 in the post noon trade today after the results were out.
The trading update stated that the group had delivered double-digit growth in gross profit, revenue, and operating profit in its third quarter.
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The company had recently endeavoured to improve its green credentials and make a swift transition towards electric vehicles.
Main highlights of Q3 update
- The IT services provider expects the cost savings relating to the coronavirus pandemic to get reversed as it entered the next financial year.
- The company also said that during the ongoing financial year, it saw some of the largest deals ever.
- The above two factors are likely to contribute around £12 million to EBIT for the financial year 2021, and most of this contribution came in the first half of the year itself.
- Further, the IT infrastructure technology and services company predicted to see further growth on its normalised EBIT during the next year FY 2022.
Half yearly results
- The FTSE 250 firm released its half yearly results for the six months to 31 January 2021 in the month of March. Its revenue was up 10.1 per cent to £577.0 million for the period.
- Its gross profit grew 20.4 per cent to £134.5 million for H1 2021.
- The interim dividend paid for the period was 6.4p (H1 2020: 5.4p).
- The earnings per share were up 39.5 per cent to 23.3 pence.
- Gross profit jumped 20.4 per cent to £134.5 million, while gross invoiced income was up 19.7 per cent to £870.8 million for the six-monthly period.
- Operating profit jumped 41 per cent to £57.1 million as a result of operating cost savings and good top line performance.
- The company’s customer base increased by 1.5 per cent to 9,600.
- The firm took zero government support during the coronavirus pandemic for the half-year period. It did not lay off any staff as well during the mentioned time frame.
- In fact, the firm systematically invested in internal systems, employees, and tools to support its ongoing growth and was in a good position to deliver robust performance for the entire year.