olivLaw · European equity research
Softcat plc SCT.L
United Kingdom · London Stock Exchange · ISIN GB00BYZDVK82 · Vertical: Listed companies from United Kingdom
Softcat plc is a UK IT solutions provider selling software, hardware and services to enterprise, mid-market and public sector customers. In fiscal 2025 revenue grew strongly, and the company aims to gain market share in a fast-growing IT market, particularly on demand for cyber security and AI-related infrastructure.
At the close of 05 Nov 2026, Softcat plc (SCT.L) stock was 15.95 GBP (−1.85% on the day), with market capitalisation 3.2 bn GBP, P/E 24.1 on diluted EPS of 0.66 GBP over the last 12 months, dividend yield 3.00%, beta 0.57, 52-week range 10.91–21.12 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 32.1
- weak (30–45)
- Bollinger (20, 2)
- 15.28 – 18.88
- in the lower half of the band · %B 0.19 · band width 21.1%
- SMA 50 / 200
- 18.26 / 16.12
- mixed trend
- MACD (12, 26, 9)
- -0.60 / -0.55
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.0% | −0.6% | −12.3 pp | — |
| 3 months | −19.9% | −4.2% | −15.8 pp | — |
| 6 months | +12.5% | +4.3% | +8.1 pp | — |
| Year to date | +12.6% | +7.5% | +5.1 pp | — |
| 1 year | +0.9% | +9.9% | −9.0 pp | +5.8% |
| 3 years | +24.3% | +49.8% | −25.5 pp | +26.3% |
| 5 years | −19.5% | +42.8% | −62.3 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 3-quarter history (min 24.7, median 26.8, max 27.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 985.3 m | 962.6 m | 1.5 bn |
| Revenue YoY | unavailable | −2.3% | +51.5% |
| Net income | 112.0 m | 119.0 m | 133.0 m |
| Net income YoY | unavailable | +6.3% | +11.7% |
| Diluted EPS | 0.56 | 0.59 | 0.66 |
| Diluted EPS YoY | unavailable | +6.1% | +11.4% |
| net % | 11.4% | 12.4% | 9.1% |
| Free cash flow | 102.3 m | 114.5 m | 128.9 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Jul 2025
- Cash
- 182.3 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 338.8 m GBP
- Total assets
- 1.2 bn GBP
- Debt / equity
- unavailable
- Current ratio
- 1.39x
- ROE
- 41.8%
- ROA
- 13.5%
- FCF margin
- 8.8%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 985.3 m | 962.6 m | 1.5 bn | esef· 18 Nov 2025verified |
| Cost of revenue | 611.5 m | 544.9 m | 964.1 m | esef· 18 Nov 2025verified |
| Gross profit | 373.8 m | 417.8 m | 494.3 m | esef· 18 Nov 2025verified |
| Operating income | 140.9 m | 154.1 m | 172.9 m | esef· 18 Nov 2025verified |
| Interest expense | 205.0 k | 443.0 k | 2.0 m | esef· 18 Nov 2025verified |
| Pre-tax income | 141.9 m | 159.4 m | 178.2 m | esef· 18 Nov 2025verified |
| Income tax | 29.8 m | 40.4 m | 45.2 m | esef· 18 Nov 2025verified |
| Net income | 112.0 m | 119.0 m | 133.0 m | esef· 18 Nov 2025verified |
| Diluted EPS | 0.56 | 0.59 | 0.66 | esef· 18 Nov 2025verified |
| Dividend per share | 0.37 | 0.38 | 0.48 | esef· 18 Nov 2025derived |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 122.6 m | 158.5 m | 182.3 m | esef· 18 Nov 2025verified |
| Receivables | 490.0 m | 585.3 m | 713.1 m | esef· 18 Nov 2025verified |
| Inventories | 3.6 m | 2.9 m | 151.9 m | esef· 18 Nov 2025verified |
| Current assets | 616.3 m | 746.7 m | 1.1 bn | esef· 18 Nov 2025verified |
| Property, plant & equipment, net | 11.3 m | 9.8 m | 16.9 m | esef· 18 Nov 2025verified |
| Intangibles (excl. goodwill) | 7.2 m | 11.6 m | — | esef· 05 Nov 2024verified |
| Total assets | 647.7 m | 780.7 m | 1.2 bn | esef· 18 Nov 2025verified |
| Accounts payable | 359.6 m | 430.1 m | 471.5 m | esef· 18 Nov 2025verified |
| Current liabilities | 386.2 m | 465.5 m | 809.0 m | esef· 18 Nov 2025verified |
| Total liabilities | 396.3 m | 482.7 m | 853.1 m | esef· 18 Nov 2025verified |
| Equity | 251.4 m | 298.0 m | 338.8 m | esef· 18 Nov 2025verified |
| Shares outstanding at year end | 199.3 m | 199.4 m | 199.7 m | esef· 18 Nov 2025derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 104.8 m | 115.6 m | 140.7 m | esef· 18 Nov 2025verified |
| Capex | 2.5 m | 1.1 m | 11.8 m | esef· 18 Nov 2025verified |
| Free cash flow | 102.3 m ≈ | 114.5 m ≈ | 128.9 m ≈ | esef· 18 Nov 2025derived |
| Investing cash flow | -2.1 m | -1.4 m | -16.0 m | esef· 18 Nov 2025verified |
| Financing cash flow | -77.2 m | -78.4 m | -98.1 m | esef· 18 Nov 2025verified |
| Dividends paid | 74.2 m | 76.0 m | 95.7 m | esef· 18 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 3.2 bn GBP
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
52% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 9.1% | 46 (vs peers) | 12% |
| FCF conversion · Quality | 96.9% | 96 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 84.4x | 100 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 1.4x | 49 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 24.1x | 17 (vs peers) | 20% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 4.0% | 51 (on a fixed band) | 16% |
| Shareholder yield (distributions) · Returns | 3.0% | 43 (on a fixed band) | 12% |
| Payout ratio (FCF) · Returns | 74.2% | 65 (on a fixed band) | 8% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet80/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality71/100 · 2/3 factors with a value
- Returns52/100 · 2/2 factors with a value
- Valuation32/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
SOFTCAT PLC (SCT.L). Latest full fiscal year: 2025; data up to 2025-07-31.
Figures computed from the financial statements: revenue 1.5 bn GBP in 2025; YoY growth 51.5%; net margin 9.1%; ROE 41.8%.
The estimated value range is 6.09–8.67 GBP per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 7.37 GBP, the price of 15.95 GBP leaves a potential of -53.8% (value / price − 1) and a margin of safety of -116.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 96.9%
- Interest coverage: 84.4x
What contradicts it
- P/E (TTM): 24.1x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| SCT.LSoftcat PLC | 3.2 bn | 24.1 | 41.8% | 9.1% | +51.5% | +10% / +26% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for SCT.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 10.49 Total return -32% · Per year -32% | 18.45 Total return 19% · Per year 19% | 27.68 Total return 78% · Per year 78% |
| 3 years | 12.44 Total return -13% · Per year -5% | 24.40 Total return 65% · Per year 18% | 39.86 Total return 165% · Per year 38% |
| 5 years | 14.75 Total return 8% · Per year 2% | 32.27 Total return 126% · Per year 18% | 57.40 Total return 291% · Per year 31% |
- Exit P/E± 6.10
- Net margin± 4.27
- Annual revenue growth± 3.19
- Annual dilution± 0.36
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Softcat plc is a UK IT solutions provider selling software, hardware and services to enterprise, mid-market and public sector customers. In fiscal 2025 revenue grew strongly, and the company aims to gain market share in a fast-growing IT market, particularly on demand for cyber security and AI-related infrastructure.
SWOT
Strengths
- A cash-generative business model and a long record of gross profit growth over two decades 1.
- Deep customer relationships, with high customer satisfaction and strong growth in gross profit per customer 1.
- Ability to deliver large, complex projects, supported by multidisciplinary teams and vendor partnerships.
Weaknesses
- Gross margin is relatively thin, and reported revenue growth can be shaped by gross or net treatment of transactions.
- The workplace segment and device sales were weak in fiscal 2025.
- Results depend significantly on large projects whose timing can be uneven.
Opportunities
- Demand for cyber security, data centres and AI infrastructure could keep growing.
- The Oakland acquisition could broaden the data and AI offer and open access to new customers.
- Expanding international capabilities could support customers seeking services outside the UK.
Threats
- Macroeconomic and geopolitical uncertainty could reduce customers' IT budgets.
- Policy changes by software vendors could affect margins and resale revenue.
- Competition from direct-selling vendors and other integrators could pressure pricing.
Risks
- Vendor dependencehigh
The business relies on relationships with technology vendors, and changes to their channel programmes could affect margins and product access.
- Timing of large projectshigh
Delivery of large projects depends on customers and vendors, and delays could shift profit between periods.
- Macroeconomic environmentmedium
Economic and geopolitical uncertainty could delay customers' IT investment, particularly in the workplace segment.
- Acquisition integrationmedium
Integrating Oakland and building M&A capability could bring costs and operational risks.
- Fraud and compliancelow
The company has anti-fraud and anti-bribery controls, but control failures could bring sanctions and reputational damage.
Investment thesis
What would need to be true (bull case)
- If demand for security, data centres and AI continues, the company could keep growing gross profit, in line with its long-term record 1.
- An established customer base and the ability to sell more to each customer could support growth even in a difficult environment 1.
- High cash conversion could provide flexibility for investment and strategic acquisitions 1.
What would break the thesis
- If large projects are delayed or not delivered on schedule, operating profit could come in weaker than the company expects 1.
- If the workplace segment stays weak due to incentive changes and subdued device demand, growth could slow 1.
- If competition from direct-selling vendors and other integrators intensifies, margins could come under pressure.
What to watch
- Delivery of large projects from the committed pipeline and the evolution of operating profit in the first halfFirst half of fiscal 2026
- Growth in gross profit per customer and in the number of customersNext annual report
- Integration of Oakland and its contribution to the data and AI offer2026
- Evolution of the workplace segment after Microsoft incentive changesNext annual report
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Softcat sells third-party software, hardware and IT infrastructure services, as well as its own services. Revenue is reported under IFRS 15, with some transactions (generally hardware and internally delivered services) reported gross and others (generally software) reported net. To give a clearer view of growth, the company also reports gross invoiced income, which reached £3,617.0m in fiscal 2025 1. Gross profit was £494.3m, up 18.3% 1.
The company serves enterprise, mid-market and public sector customers; its customer base grew 1.6% in fiscal 2025 to 10.2 thousand customers 1. Gross profit per customer rose 16.5%, showing that sales to existing customers were the main driver of growth 1. Management estimates the customer base accounts for about 20% of the addressable market 1.
Underlying operating profit was £180.1m in fiscal 2025, and underlying cash conversion reached 95.6% 1. The company says its business model is highly cash generative and that disciplined working capital management supports this result 1.
Segments
Hardware
Hardware was the fastest-growing revenue line, with gross invoiced income up 74.5% in fiscal 2025, supported by sales of data centre, networking, server and compute infrastructure 1. Larger solutions projects delivered in the second half contributed significantly.
Software
Software remains the largest segment by gross invoiced income, and gross profit growth in software was broad-based across technologies, with security as the main driver 1. Reported software revenue is lower because many transactions are recorded net.
Market context
The company describes the UK IT market as growing, with continued demand for cyber security, data centres, networking and AI-related projects. Softcat argues it still holds a relatively small share of its addressable market, leaving room to grow, but the trading environment remains difficult due to macroeconomic and geopolitical uncertainty 1.
The company links its outlook to customers adopting agentic AI and to their data needs, which could generate additional demand for infrastructure, connectivity and storage. The Oakland acquisition extends its access to data and AI consulting 1.
Trends
- Demand for cyber securitytailwind
Customers are investing more in security to respond to cyber threats and regulatory requirements, and security was the main driver of gross profit growth in fiscal 2025 1. If this continues, it could support growth in higher-margin categories.
- AI and data adoptiontailwind
Companies want to embed AI and automation into their systems, which increases requirements for data centres, storage and workload management 1. Softcat sees this as an opportunity, particularly for larger projects.
- Microsoft incentive changesheadwind
Changes to Microsoft incentives and subdued demand for devices slowed growth in the workplace area in fiscal 2025 1. This could continue to weigh on device-related revenue.
- Reliance on large projectsmixed
Results in the second half of fiscal 2025 were supported by large solutions projects, and for fiscal 2026 the company expects underlying operating profit to be weighted to the first half as committed large projects are delivered 1. Timing depends on customer and vendor schedules, which adds variability.
Competitive position
Softcat operates in a fragmented market of IT integrators and resellers, where competition turns on customer relationships, the breadth of products and services and the ability to deliver complex projects. The sources provided do not name specific competitors, so this profile cannot compare market shares with other players.
The company's stated advantage rests on its internal culture, long-term customer relationships and vendor partnerships. If these advantages weaken, or if vendors sell directly, its market position could be affected.
- Technology vendors selling direct
The sources do not name competitors, but direct sales by vendors are an alternative for customers.
- Other UK resellers and IT integrators
Integrators with similar offers compete for the same large projects and support contracts.
- Cloud and data consulting providers
Partners offering AI and data consulting may compete for customer budgets.
- Data centre hardware distributors
Specialist distributors may compete on infrastructure and networking projects.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202518 Nov 2025
- Annual report 202518 Nov 2025
- Annual report 202405 Nov 2024
- Annual report 202405 Nov 2024
Sources
- [1] Annual report, fiscal year ended 2025-07-31 (ESEF) · SEC / Softcat plc · 31 Jul 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.