Softcat raises profit guidance after strong third quarter

(Sharecast News) - IT infrastructure group Softcat has raised its guidance for full-year profit growth after a stronger-than-expected third-quarter performance. The firm, which provides things like cloud, cybersecurity and connectivity solutions, said it performed well during the three months to 30 April, with double-digit growth in gross profit and operating profit over last year.

That followed 12.1% and 10.4% growth in the respective measures in the first half, which Softcat reported in March was ahead of its expectations.

In a short trading update on Wednesday, the company said that growth was "broad-based across technology areas and customer segments" during the third-quarter period.

Its performance was also supported by the conversion of some larger solutions projects.

"The board is pleased with progress to date and, reflecting the contribution from larger deals, now expects low-teens growth in operating profit for the full year, up from low double-digit previously," Softcat said.

Shares were up 2.1% at 1,818p in early deals.