Deceptively strong. That’s how Barclays Capital described the 18% gross profit growth from Softcat (LSE:SCT) PLC, the IT infrastructure specialist, which reported its interims on Tuesday.
“We think the combination of strong headcount growth (+21% year-on-year) and the broad-based nature of gross profit growth leaves Softcat (LSE:SCT) well placed to follow up on a solid [first-half],” the investment banks said in a note to clients.
“To use management's words, the ‘tried and tested’ nature of organic growth remains a key attraction.”
Barclays repeated its ‘overweight’ call on the stock and £20.10 price target. The shares were up 2.2% at £12.45.