Softcat
Website:
Softcat
Index:
FTSE 250
EPIC: SCT
Supersector:
Technology
Sector:
Software and Computer Services
Subsector:
Computer Services
Market Cap:
£3.22B
Payout Frequency: Semi-Annual
Next Softcat Dividend
Softcat next goes ex-dividend on 06/11/2025. This will be the Final dividend for 2025.
The dividend per share amount is 20.4000p (GBP) and the payment date is 16/12/2025.
A
Special dividend of
16.1000p is also being paid. This brings the
total payable to 36.5000p.
Softcat Dividend Analysis and Summary
Dividend summary (ex-dividend date confirmed)
- Final ordinary dividend: 20.4p per share (up 12.7% YoY). Ex-dividend: 06/11/2025; Record date: 07/11/2025; Payment date: 16/12/2025. DRIP election deadline: 25/11/2025.
- Special dividend: 16.1p per share (down from 20.9p last year). Same key dates as above.
- Total ordinary dividend for FY2025: 29.3p (up 10.2%). Total cash return incl. special: 45.4p.
- Earnings and cover: Underlying EPS 69.5p (+16.4%); ordinary DPS cover ~2.4x; cover incl. special ~1.5x. Statutory EPS 66.6p.
- Cash and balance sheet: Net cash £182.3m, debt-free; underlying cash conversion 95.6%.
- Policy: Board reiterates progressive ordinary dividend; excess cash returned via specials (unchanged).
Dividend sustainability and growth
- Supportive fundamentals: Double-digit growth in gross profit (+18.3%) and underlying operating profit (+16.9%), strong cash conversion (95.6%) and a net cash position underpin the 10.2% ordinary DPS increase.
- Coverage and affordability: Ordinary dividend covered ~2.4x by underlying EPS, indicating headroom for continued progression. Even including the special, coverage (~1.5x) remains acceptable given the debt-free balance sheet and consistent cash generation.
- Capital allocation discipline: Priority remains organic investment, then progressive ordinary dividend, then returning excess (specials/bolt-on M&A). The cash floor raised to £90m from £75m from FY2026 modestly tightens free cash available for specials but does not impair ordinary dividend progression.
- Outlook consistency: FY2026 guidance implies high single-digit underlying operating profit growth (reported basis low single-digit given FY2025 large deal comps), first-half weighted. This suggests ordinary dividend progression can continue, though specials may flex with deal timing and working capital.
Structural changes and other factors affecting dividends
- Acquisition: First-ever bolt-on (Oakland, data/AI consulting) completed in April 2025. Small, strategically aligned; near-term non-underlying costs but minimal impact on dividend capacity.
- Working capital dynamics: A very large order recognized as deferred income increased contract liabilities and inventories at year-end. Both customer and supplier were paid upfront; accounting deferral may cause timing effects but not a structural cash drain.
- Cash policy update: Cash floor raised to £90m from FY2026 to support larger deals and growth. This could temper the size of future specials but supports balance-sheet resilience and ordinary dividend security.
Risks and flags to dividend stability
- Deal lumpiness and margin mix: Larger, low-margin projects boosted H2 but diluted gross margin; FY2026 growth is expected to be H1-weighted and dependent on customer/vendor schedules, which can add volatility to cash generation and the scale/timing of specials.
- Customer concentration (revenue): One customer >10% of FY2025 revenue (much lower share of GP). Not a near-term threat to the ordinary dividend, but concentration heightens volatility risk.
- Macro/credit risk: Management acknowledges inflation/interest rate and credit risks; severe-but-plausible scenarios still show positive cash, but a tougher environment could reduce headroom for specials.
- Vendor incentives mix: Changes (e.g., Microsoft) pressured workplace margins in parts of FY2025; continued shifts could affect profitability mix.
- Investment spend: Non-capitalisable SaaS systems costs and ongoing office investments increase near-term opex (non-underlying), but are manageable and aimed at long-term efficiency and growth.
Read more
Softcat Annual Dividend Yield - 2.84%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 10/04/2025 |
21/05/2025 |
Interim |
8.90p |
GBX |
| 06/11/2025 |
16/12/2025 |
Special |
16.1000p |
GBX |
| 06/11/2025 |
16/12/2025 |
Final |
20.4000p |
GBX |
Total (Annual Dividends Per Share):
45.40p
Dividend Yield =
Annual Dividends Per Share (45.40p)
÷ Share Price (1598p)
= 2.84%
Softcat Dividend History
| Ex Dividend Date | Payment Date | Type | Amount | Currency |
| 06/11/2025 | 16/12/2025 | Special | 16.1000p | GBX |
| 06/11/2025 | 16/12/2025 | Final | 20.4000p | GBX |
| 10/04/2025 | 21/05/2025 | Interim | 8.90p | GBX |
| 07/11/2024 | 17/12/2024 | Special | 20.90p | GBX |
| 07/11/2024 | 17/12/2024 | Final | 18.10p | GBX |
| 11/04/2024 | 22/05/2024 | Interim | 8.50p | GBX |
| 09/11/2023 | 19/12/2023 | Special | 12.60p | GBX |
| 09/11/2023 | 19/12/2023 | Final | 17.00p | GBX |
| 13/04/2023 | 24/05/2023 | Interim | 8.00p | GBX |
| 10/11/2022 | 19/12/2022 | Special | 12.60p | GBX |
| 10/11/2022 | 19/12/2022 | Final | 16.60p | GBX |
| 07/04/2022 | 13/05/2022 | Interim | 7.30p | GBX |
| 11/11/2021 | 20/12/2021 | Special | 20.50p | GBX |
| 11/11/2021 | 20/12/2021 | Final | 14.40p | GBX |
| 01/04/2021 | 14/05/2021 | Interim | 6.40p | GBX |
| 05/11/2020 | 11/12/2020 | Special | 7.60p | GBX |
| 05/11/2020 | 11/12/2020 | Final | 16.60p | GBX |
| 02/04/2020 | 15/05/2020 | Interim | 5.40p | GBX |
| 07/11/2019 | 13/12/2019 | Special | 16.00p | GBX |
| 07/11/2019 | 13/12/2019 | Final | 10.40p | GBX |
| 04/04/2019 | 10/05/2019 | Interim | 4.50p | GBX |
| 01/11/2018 | 14/12/2018 | Special | 15.10p | GBX |
| 01/11/2018 | 14/12/2018 | Final | 8.80p | GBX |
| 29/03/2018 | 11/05/2018 | Interim | 3.30p | GBX |
| 02/11/2017 | 15/12/2017 | Special | 13.50p | GBX |
| 02/11/2017 | 15/12/2017 | Final | 6.10p | GBX |
| 30/03/2017 | 28/04/2017 | Interim | 2.90p | GBX |
| 17/11/2016 | 16/12/2016 | Special | 14.20p | GBX |
| 17/11/2016 | 16/12/2016 | Final | 3.60p | GBX |
| 31/03/2016 | 29/04/2016 | Interim | 1.70p | GBX |
| Year | Interim | Final | Special | Currency | Total | Change (%) |
| 2024 | 8.500 | 18.100 | 20.900 | GBX | 47.500 | 26.32 |
| 2023 | 8.000 | 17.000 | 12.600 | GBX | 37.600 | 3.01 |
| 2022 | 7.300 | 16.600 | 12.600 | GBX | 36.500 | -11.62 |
| 2021 | 6.400 | 14.400 | 20.500 | GBX | 41.300 | 39.52 |
| 2020 | 5.400 | 16.600 | 7.600 | GBX | 29.600 | -4.20 |
| 2019 | 4.500 | 10.400 | 16.000 | GBX | 30.900 | 13.60 |
| 2018 | 3.300 | 8.800 | 15.100 | GBX | 27.200 | 20.88 |
| 2017 | 2.900 | 6.100 | 13.500 | GBX | 22.500 | 15.38 |
| 2016 | 1.700 | 3.600 | 14.200 | GBX | 19.500 | |
Softcat Dividend Calculator
Softcat Dividend Growth
| Dividend Growth (1Y) |
-4.42%
|
| Dividend CAGR (5Y) |
13.41%
|
| Years of Growth |
2
|
| Payout Ratio |
40.56%
|
| Buyback Yield |
-0.17%
|
| Shareholder Yield |
2.67%
|
Softcat Valuation & Profitability
| P/E Ratio (TTM) |
24.14
|
| Forward P/E |
22.55
|
| P/FCF |
24.71
|
| Earnings Yield |
4.17%
|
| FCF Yield |
4.05%
|
| ROE |
41.77%
|
| ROCE |
47.03%
|
| Profit Margin |
9.12%
|
| Operating Margin |
12.35%
|
| Gross Margin |
33.89%
|