Softcat’s CEO has mooted the possibility of a US acquisition that would give it the ability to begin selling to new customers there for the first time.
Talking to IT Channel Oxygen following this morning’s “outstanding” full-year results, Graham Charlton also said he was “delighted” with Microsoft’s recent incentive changes despite conceding they had left a £4m hole in one area of its business.
In its full year results, Softcat’s key numbers all exceeded even the raised guidance it issued this summer.
Gross invoiced income pogoed 26.8% to £3.6bn, with gross profit and underlying operating profit up 18.3% to £494.3m and 16.9% to £180.1m, respectively.
“If we do geographic, it’s going to be in the US”
On a follow-up call with IT Channel Oxygen, Charlton was quick to pay tribute to Softcat’s staff culture, which he said was integral to its success in recording 20 consecutive years of double-digit gross profit growth.
“It’s the only thing to explain this ridiculous, unique globally organic track record we’ve got, so long may it continue,” he said.
After Softcat in April moved to expand its technology prowess via its maiden acquisition of data and AI consultancy Oakland, Charlton said future M&A could also have a geographic bent.
“If we do geographic, it’s going be in the US,” he said.
“But it would have to fit the same model as Oakland, which is first and foremost a management team that genuinely cares about their people and has a similar ethos to ours, and who wanted to join Softcat and could see why we’d be the right owner for them.
“I think we could be a terrific owner for a business like that in the States.”
Charlton revealed that Softcat has taken a circa £4m hit from Microsoft’s EA fee slash this year, but was quick to add that it has made up this shortfall by switching its attention to CSP.
“I think the way we’ve leaned into that, the way we’ve adapted and are working with Microsoft has gone to plan, and I’m delighted with it,” he said.
In the interview, Charlton also opened up on Softcat’s future hiring and investment plans, his priorities for the year ahead, whether he sees AI PCs as a “flop” and its push into the enterprise space.
What did he say?
Full interview begins on following page…
