A UK IT powerhouse with elite culture and cash generation, priced like a decliner while still compounding through cloud, cyber—and an emerging AI infrastructure cycle.
Overview
Softcat plc is positioned as the UK’s leading value-added reseller (VAR) for IT infrastructure, acting as a scaled intermediary between 1,000+ technology vendors and a broad customer base of ~10,200 organizations across corporate and public sectors. It monetizes through Software, Hardware, and Services, increasingly emphasizing services (professional + managed) to deepen customer relationships and improve resilience. A key reporting nuance is statutory revenue versus Gross Invoiced Income (GII): in FY2025 statutory revenue was £1,458.4m (+51.5%) while GII was £3,617.0m (+26.8%), reflecting accounting rules that record many software/cloud transactions net (gross profit as revenue) while hardware is gross. FY2025 delivered strong operating momentum: gross profit £494.3m (+18.3%), underlying operating profit £180.1m (+16.9%), underlying EPS 69.5p (+16.4%). The model remains highly cash generative (95.6% cash conversion) with net cash of £182.3m and no debt, supporting progressive dividends and specials. Softcat historically grew organically (20 consecutive years of double-digit gross profit growth) and has now made its first acquisition—Oakland, a data & AI consultancy—to capture the next wave of AI-driven infrastructure and advisory spend.