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Softcat MD sells down

Managing director Colin Brown sold shares worth £1.3m in two transactions on 4 and 5 June
June 10, 2020

A third-quarter update from Softcat (SCT) revealed that it had achieved growth in revenue, gross profit and operating profit, with cash receipts broadly in line with normal trends. But management flagged a high degree of uncertainty in the months ahead and that the group is by no means immune to the challenges in the wider economy. 

IC TIP: Hold at 1,060p

Still, Softcat’s ability to deliver earnings growth in an especially difficult trading environment in the third quarter is encouraging. Indeed, the group’s performance over the past nine months has been robust, supported by strong first-half results which revealed that average gross profit per customer had increased by 12 per cent. While progress may well slow in the final three months of its financial year, especially as revenues are historically higher in the second half, its May trading update suggests that it should be able to drive overall growth. 

Managing director Colin Brown took the opportunity to sell shares worth £1.3m in two transactions on 4 and 5 June. Softcat declined to comment on the sale.

Buys      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
GetBusyMiles Jakeman1 Jun 20150,0006496,000 
International Personal FinanceStuart Sinclair (ch)4 Jun 2086,9445749,558 
Braveheart Investment GroupTrevor Brown5 Jun 20972,38517165,306 
Lok'nStoreCharles Peal5 Jun 207,20049835,856 
Lok'nStoreAntonia Peal5 Jun 207,20049235,424 
Sells      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
AvastUlf Claesson4 Jun 20250,000486.891,217,225 
XP PowerAndy Sng4 Jun 207,9003,557281,003

Exercise and sale of options

SSPGail Davies4 Jun 20300,000315.50946,493

PCA of CFO Jonathan Davies, sold to facilitate property purchase

SoftcatColin Brown4-5 Jun 20120,0001,1111,333,024Aggregate price
ClinigenJohn Hartup5 Jun 205,0008.86544,325 
JD SportsPeter Cowgill5 Jun 201,985,000671.7713,334,635

Residual interset of 0.67%

Young & CoPatrick Dardis (ceo)8 Jun 2010,5001,110116,550 
Young & CoTorquil Sligo-Young8 Jun 2010,00072572,500 
Aston MartinAmr Ali Abdallah Abouelseoud8 Jun 20300,00078.93236,780Sold by PCA
Kainos GroupPaul Gannon8 Jun 20115,0008.659,950 
Kainos GroupPaul Gannon8 Jun 201,5008.3125