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Half-year results hint at IT sector growth

IT provider Softcat reports an impressive first half to its financial year: its top line and bottom line are both up 65%. The results hint at new growth in the IT sector amid post-recession doom and gloom

IT provider Softcat reports an impressive first half to its financial year: its top line and bottom line are both up 65%. The results hint at new growth in the IT sector amid post-recession doom and gloom.


“We sell a lot of IT, so we can say with authority that there has been a significant upturn in organisations’ investment in IT – particularly in core infrastructure – over the last few months,” said Softcat managing director Martin Hellawell. “IT budgets have become more readily available once again, and we have been in the right position to benefit from that.”


“Of course, that doesn’t mean that companies are throwing cash at IT and hoping for the best,” he added. “Every penny of expenditure is being scrutinised and justified.”


Softcat achieved £146m turnover last year, and Mr Hellawell feels that £200m might just be possible by the end of the company’s financial year in August 2011. To support this rapid growth, in the last year alone the company has had to grow its headcount by approximately 20%, to nearly 300. It has set up a new office in Moorgate, London, to attract talented employees, and has continued to expand its new Manchester office and its Marlow headquarters.


Mr Hellawell believes that by recruiting the right people and keeping them by ensuring they are fully motivated by the company they are working for, Softcat is in a better position to satisfy its customers. Its 2011 employee satisfaction survey results are the best it has ever achieved: the company morale score rose from 9.2 to 9.7 (out of a possible 10) in the last year.


Accolades that Softcat has won in the last six months include CRN Reseller of the Year at the Channel Awards, Dell UK and EMEA Partner of the Year, and Symantec Commercial Partner of the Year.