Shares fall at technology firm despite £1bn revenue milestone
Technology firm Softcat has hit £1billion in revenue - but a "softening" in demand from corporate customers saw its share price dip by as much as 10% this morning.
The FTSE250 company, which has offices in Manchester and Leeds, reported a 8.6% hike in revenue to £1.08bn with profit before tax up 10% to £93.6m.
But Softcat said that while the new financial year had started well, it expected corporate customers "to continue to be circumspect with their spending over the coming months".
Chief executive Graeme Watt said: "This year has started well, however we do expect corporate customers to continue to be circumspect with their spending over the coming months.
"This may mean that market conditions remain challenging for a time, but we remain confident in our ability to gain market share and our view of the long-term opportunity is undiminished."
The company is proposing a special dividend of 7.6p on top of its total ordinary dividend, although this was down 53% from a year earlier.
Shares were down 7% to 1152p at 10.45am.