IT appears to be an increasingly defensive sector, which is maybe no surprise given its essential role in businesses. IT services company Softcat (SCT ) said its operating profit in the first six months of FY 2023 is ahead of expectations and now expects the full-year results to be in front of guidance. SCT:LSE Softcat PLC 1mth Today change 6.07% Softcat is extending a history of producing impressive numbers. In the six months to January, gross invoiced income (GII), which is effectively its underlying sales, increased 4.9 per cent to £1.21bn. Meanwhile, its gross profit was up by 17.9 per cent to £177mn. Software and services GII rose 24.5 per cent and 31.5 per cent respectively. This more than offset the 27.2 per cent decline in hardware. This fall in hardware was because of a tough comparator, as it was set against a large data centre contract in the 2022 half-year. Management said that if this customer was taken out of the equation, gross profit would have risen by 27 per cent. One concern is that customers might stop paying up on time if economic conditions continue to worsen. Management said the £140mn increase in receivables is mostly due […]
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