Softcat: A High-Quality IT Services Business

Softcat is the UK’s largest provider of IT infrastructure solutions and services, helping businesses buy, set up, and run their technology. From cloud computing and cybersecurity to networking, data, AI, and workplace tools, Softcat supports customers across the full IT stack. The company stands out through its strong culture, long-term customer relationships, and consistent execution rather than flashy products. As technology becomes more complex and critical to how organizations operate, Softcat aims to be the trusted partner that brings everything together. The question remains: Does this high-quality IT services business belong in a long-term investment portfolio?

This is not a financial advice. I am not a financial advisor and I only do these post in order to do my own analysis and elaborate about my decisions, especially for my copiers and followers. If you consider investing in any of the ideas I present, you should do your own research or contact a professional financial advisor, as all investing comes with a risk of losing money. You are also more than welcome to copy me.

For full disclosure, I should mention that I do not own any shares in Softcat at the time of writing this analysis. If you would like to copy or view my portfolio, you can find instructions on how to do so here. If you want to purchase shares or fractional shares of Softcat, you can do so through eToro. eToro is a highly user-friendly platform that allows you to get started on investing with as little as $50.

The Business

Softcat is the UK’s largest provider of IT infrastructure solutions and services. The company helps organizations buy, set up, and run their IT systems, acting as a single partner across hardware, software, cloud, security, and ongoing support. Instead of customers having to deal with multiple technology vendors, contracts, and service providers, Softcat simplifies the process by designing and managing integrated IT environments end to end. In practice, customers come to Softcat with business and technology challenges rather than specific products. These can range from modernizing workplace IT and moving systems to the cloud, to strengthening cybersecurity, connecting data canters, or managing complex hybrid environments. Softcat advises on the right solution, sources technology from leading global vendors, implements it, and supports it over time, allowing customers to focus on their core operations rather than IT complexity. Softcat operates across the full modern IT stack, including cloud and data centers, networking, security, end-user devices, and data and AI. It serves more than 10.000 customers mainly across the UK, Ireland, and the US, spanning small and mid-sized businesses, large enterprises, and public-sector organizations. Revenue is well balanced across technology areas, reducing reliance on any single product cycle, while long-standing relationships with major global vendors provide customers with broad choice and access to leading technologies. Softcat’s competitive moat can be summarized as a culture-led service model that combines trusted people, broad technical capability, and deep vendor relationships into a single partner that is difficult for customers to replace. The foundation of this moat is Softcat’s culture and people. The company invests heavily in recruiting, training, and empowering employees, with a strong emphasis on local office leadership and long-term career development. High employee engagement consistently translates into high customer satisfaction, building trust and long-term relationships that competitors struggle to replicate. The breadth and depth of Softcat’s offering further strengthen its position. Few providers can support the entire IT environment, from end-user devices at the edge to cloud infrastructure, security, data platforms, and managed services. This allows Softcat to remain relevant as customer needs evolve and to grow by solving more problems for existing customers rather than relying solely on new customer wins. Scale and vendor relationships add another layer of advantage. Softcat is often one of the largest partners for major technology vendors in the UK, holding top-level accreditations that signal execution quality and trust. This scale benefits customers through better commercial terms, early access to new technologies, and confidence that solutions will be implemented correctly. Finally, customer stickiness and ongoing investment reinforce the moat over time. As customers rely on Softcat to design, implement, and manage increasingly complex IT environments, switching providers becomes disruptive and risky.

Management

Graham Charlton serves as the CEO of Softcat and has led the company since 2018. He joined Softcat in 2014 as CFO and was appointed CEO after more than two decades of experience in senior financial and leadership roles. Before joining Softcat, Graham Charlton held senior positions at a number of UK-listed companies, including serving as Group Finance Director at Dunelm, where he played a key role in supporting the company’s growth, operational discipline, and capital allocation strategy. Earlier in his career, he built a strong foundation in finance and governance through roles at Home Retail Group and KPMG. As CEO of Softcat, Graham Charlton has overseen a period of continued scaling, reinforcing the company’s position as the UK’s largest IT infrastructure solutions provider while preserving the culture that underpins its success. His leadership has focused on maintaining a people-first organization, investing in training, local office leadership, and workplace environments, and ensuring that employee engagement remains central to the company’s strategy. This emphasis has translated into consistently high customer satisfaction and external recognition, including Softcat’s continued presence in the UK’s Best Workplaces list and its certification as a Great Place to Work in the UK, Ireland, and more recently the United States. Graham Charlton is closely associated with Softcat’s long-term, culture-led approach to growth. Under his leadership, the company has continued to reinvest in its people, systems, and customer proposition rather than pursuing short-term optimisation. He places strong emphasis on listening to employee and customer feedback as key inputs into strategy, reinforcing a virtuous cycle where engaged employees deliver better outcomes for customers, which in turn supports sustainable growth. With his blend of financial discipline, operational focus, and deep belief in Softcat’s culture, Graham Charlton is widely viewed as well suited to lead the business through its next phase of expansion while preserving the attributes that differentiate it in a fragmented market.

The Numbers

The first number we will look into is the return on invested capital, also known as ROIC. We want to see a 10-year history, with all numbers exceeding 10% in each year. Softcat has consistently achieved very high ROIC because its business can grow without needing large investments, its people generate a lot of value, and it earns good returns by selling complete IT solutions as a trusted partner in a fragmented market. At a basic level, Softcat does not make products itself and does not need factories, warehouses, or heavy equipment to grow. The business mainly relies on people, systems, and offices. Because growth does not require large upfront spending, the money invested in the business stays relatively modest. When a company can generate solid profits without needing to put a lot of money into the business, returns naturally end up high. There are a few practical reasons why this has worked so well for Softcat over a long period of time. First, the business is driven by people and expertise rather than physical infrastructure. Growth comes from hiring, training, and retaining skilled salespeople and technical specialists who help customers solve problems. Adding more customers usually means adding people, not building new facilities, which makes growth efficient. Second, Softcat does not compete purely on selling individual products. Customers buy complete solutions that combine advice, technology, setup, and ongoing support. This makes Softcat more valuable to customers than a simple reseller and allows it to earn better profits as relationships deepen and customers buy more services over time. Third, the way money flows through the business works in Softcat’s favour. Customers typically pay quickly, while payments to suppliers often come later. This means Softcat does not need to use much of its own money to run daily operations, which supports strong returns year after year. Fourth, scale and culture reinforce each other. As the largest player in the UK market, Softcat benefits from better relationships with vendors, efficient systems, and strong purchasing power. At the same time, its culture keeps employees motivated and productive. Over time, the company has been able to generate more profit per customer and per employee without needing to grow costs at the same pace. The decline in ROIC over the past three years is real, but it is not especially worrying. Returns above 40% are still extremely high. The recent dip mainly reflects intentional investment and a tougher market rather than a weakening business. Softcat has hired more people, upgraded offices, invested in systems and digital tools, and expanded internationally. These costs show up immediately, while the benefits tend to arrive later. The broader UK IT spending environment has also been more cautious, especially among mid-sized companies. This has slowed profit growth at the same time as the business continued to invest, which naturally brings returns down a bit. Looking ahead, it is reasonable to expect returns to stay high, even if they do not return to the very peak levels seen several years ago. As Softcat becomes larger and more international, some moderation is normal.

The next numbers are the book value + dividend. In my old format this was known as the equity growth rate. It was the most important of the four growth rates I used to use in my analyses, which is why I will continue to use it moving forward. As you are used to see the numbers in percentage, I have decided to share both the numbers and the percentage growth year over year. To put it simply, equity is the part of the company that belongs to its shareholders – like the portion of a house you truly own after paying off part of the mortgage. Growing equity over time means the company is becoming more valuable for its owners. So, when we track book value plus dividends, we’re essentially looking at how much value is being built for shareholders year after year. I don't have the growth rate from 2015 to 2016 as Finbox only provides data for the past ten years. Softcat has managed to grow its equity every year for the past decade mainly because it consistently generates profits and reinvests a meaningful part of those profits back into the business. At its core, equity growth reflects retained earnings, and Softcat has been able to compound those earnings year after year without needing to raise new capital or take on excessive risk. The key driver is the quality and consistency of the underlying business. Softcat earns steady profits across economic cycles thanks to its diversified customer base, broad technology offering, and long-term customer relationships. Because the business does not require large upfront spending to expand, most of the profits it generates can be retained rather than consumed by reinvestment needs. This steadily builds equity over time. Another important factor is discipline. Softcat has grown organically rather than through large, balance-sheet-heavy acquisitions. Growth has come from adding customers, increasing spend with existing customers, expanding services, and hiring more people, all of which are funded internally. This keeps equity growth closely tied to operating performance rather than financial engineering. The steady rise in equity also reflects management’s long-term mindset. Investments in people, systems, and capabilities are made with an eye toward sustainable growth rather than short-term profit maximisation. While these investments may temporarily slow profit growth in certain years, they strengthen the business and support continued equity growth over time.

Finally, we will analyze the free cash flow. Free cash flow, in short, refers to the cash that a company generates after covering its operating expenses and capital expenditures. I use levered free cash flow margin because I believe that margins provide a better understanding of the numbers. Free cash flow yield refers to the amount of free cash flow per share that a company is expected to generate in relation to its market value per share. Softcat has grown free cash flow steadily over the past decade because the underlying business has scaled in a controlled and repeatable way, while continuing to convert a high share of profits into cash. The main reason free cash flow has increased in most years is that Softcat’s growth is driven by people, expertise, and customer relationships rather than heavy spending. As revenue and profits grow, cash generation naturally grows with them because the business does not need to reinvest most of that money just to stand still. In addition, the way cash flows through the business is supportive. Customers often pay quickly, sometimes in advance, while payments to suppliers come later. This helps turn profits into cash on a consistent basis, which is why cash conversion has remained high even in years with higher investment. The reason free cash flow margins look relatively low, and why they fell in 2025, comes down to how Softcat makes money and where it chose to invest. Softcat sells a lot of hardware and software with large invoice values but relatively thin margins, alongside higher-margin services. When hardware-heavy activity is strong, free cash flow can rise in absolute terms while margins look modest when measured against total revenue. That is exactly what happened in recent years, where free cash flow increased from 115 to 129 between 2024 and 2025, but the margin fell from 11,9% to 8,8%. Another important factor in 2025 is higher spending. Capital expenditure more than doubled, largely due to investment in new offices and internal systems. Those cash outflows reduce free cash flow in the year they occur, even though the benefits are expected to show up over time. This is a timing issue rather than a sign of weaker cash generation. Management has also guided that cash conversion may sit towards the lower end of its normal range in the near term because of further investment in cloud-based sales and HR systems. Whether margins can increase again depends mainly on mix and investment intensity. If services, cloud, and managed offerings grow faster than hardware, margins can improve. At the same time, Softcat has shown that it is willing to reinvest aggressively when it sees long-term opportunity, which can temporarily suppress margins. The more important signal is that free cash flow in absolute terms continues to grow over time, even through investment cycles, which it has done very consistently. As for how Softcat uses its free cash flow, the pattern is disciplined and shareholder-friendly. The first priority is reinvesting in the business through hiring, training, offices, systems, and capabilities that support long-term growth. The second priority is paying an ordinary dividend. When cash builds beyond what the business needs, Softcat either returns it to shareholders through special dividends or uses it for small, targeted acquisitions such as the Oakland purchase in 2025. The free cash flow yield is at its highest level since fiscal year 2016. While this does not suggest that the shares are cheap, it does indicate that they are trading at a more attractive valuation than they have for many years. We will revisit valuation later in the analysis.

Debt

Another important aspect to consider is debt. It is crucial to evaluate whether a business maintains a manageable debt level that can be repaid within three years, typically assessed by dividing total long-term debt by earnings. An analysis of Softcat’s financials shows that the company currently has no debt. Softcat runs the business with a strong balance sheet and a cash buffer that provides flexibility in uncertain markets. Its cash-generative business model allows it to fund organic growth investments and maintain a progressive dividend policy without relying on borrowing. As a result, debt is not a concern when investing in Softcat.

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Risks

Macroeconomic factors is a risk for Softcat because customer technology spending is closely linked to confidence, budgets, and broader economic stability, all of which have been under pressure in recent years. While conditions have not materially worsened, they have also not meaningfully improved, and management has explicitly planned on the assumption that the current macro backdrop remains broadly similar to the past couple of years. This reflects an environment where uncertainty has become persistent rather than temporary. A challenging macro environment can affect Softcat primarily through customer behavior. When economic growth is weak or uncertain, customers tend to delay or phase large IT projects, reduce discretionary spending, and focus more on cost control than transformation. Even when technology investment remains necessary, decision-making often slows, budgets are scrutinized more closely, and deal sizes can become smaller. This can reduce demand growth and lower profit per customer, particularly in more discretionary areas of the technology stack. Macroeconomic pressure can also show up through higher costs. Wage inflation, rising energy prices, and increased operating expenses can put pressure on margins if these costs cannot be fully passed on to customers. At the same time, uncertainty around suppliers, global logistics, and trade policy can lead to short-term supply chain disruption, which can affect the timing and profitability of projects. Changes in foreign exchange rates, driven by geopolitical developments or shifts in trade policy, can also influence reported results from year to year. Macroeconomic pressure can dampen growth and weigh on margins, even if conditions do not materially worsen. Slower customer decision-making, higher costs, and occasional disruption can affect results from year to year. As a result, macroeconomic conditions remain an important external risk factor for Softcat that investors need to monitor.

Failure to respond to market changes is a risk for Softcat because the technology landscape evolves quickly and customer needs, vendor strategies, and competitive dynamics can shift faster than traditional planning cycles. Softcat operates as an intermediary between technology vendors and customers, which means its relevance depends on staying closely aligned with how both sides of the market change over time. One aspect of this risk relates to technology offerings. New technologies such as cloud platforms, AI-driven tools, cybersecurity solutions, and consumption-based pricing models continue to reshape how customers buy and use IT. If Softcat fails to build the right skills, partnerships, or services around emerging technologies quickly enough, customers may look elsewhere for expertise. Over time, this could reduce Softcat’s role as a trusted adviser and limit its ability to capture a growing share of customer spend. Another risk comes from potential channel disintermediation. Large technology vendors are increasingly offering more direct sales, self-service platforms, and bundled solutions, particularly in cloud and software. If vendors succeed in simplifying their offerings to the point where customers feel they no longer need an intermediary, the value Softcat provides could be challenged. The competitive landscape is also dynamic. New competitors may emerge with narrower, more specialized offerings, while existing peers may invest heavily in automation, pricing, or service models that appeal to cost-conscious customers. If competitors move faster or execute better in areas such as cloud optimization, managed services, or data and AI, Softcat could lose customers or see lower profit per customer as pricing pressure increases. Customer needs themselves are another source of risk. As customers focus more on outcomes, productivity, and cost efficiency rather than individual products, they expect partners to understand their business and deliver measurable value. If Softcat fails to adapt its sales approach, services, or delivery model to match these expectations, customer relationships could weaken over time, even if overall IT spending remains healthy. If these factors are not addressed effectively, the consequences could include a gradual loss of competitive advantage, fewer customers, and lower profit per customer.

Cyber security and business interruption is a risk for Softcat because the business relies heavily on its own IT systems to sell, deliver, and support technology solutions for customers. Softcat’s operations are built around digital platforms that support sales activity, order processing, customer support, vendor management, and managed services. Any disruption to these systems could have a direct impact on day-to-day operations. A cyber security incident could limit Softcat’s ability to deliver services to customers, particularly in areas such as managed services, cloud management, and security support. If systems were compromised or taken offline, Softcat might be unable to monitor, manage, or support customer environments effectively, which could lead to service interruptions and breach of service commitments. Business interruption is closely linked to this risk. A prolonged system outage, whether caused by a cyber attack, system failure, or external event, could prevent sales teams from placing orders, accessing customer data, or supporting ongoing projects. This could result in lost sales opportunities, delays in project delivery, and failure to meet key business objectives, especially during periods of high customer demand. There is also a reputational dimension. Softcat positions itself as a trusted partner that helps customers manage complex and sensitive IT environments, including security. A high-profile cyber incident or extended outage could undermine that trust, even if customer data is not directly compromised. Reputational damage could make it harder to win new customers or retain existing ones, particularly in regulated or security-sensitive sectors. Financial impacts can arise both directly and indirectly. Direct costs may include system recovery, remediation, and potential regulatory or legal expenses. Indirectly, service disruption and reputational harm can lead to customer dissatisfaction, contract losses, and slower growth.

Reasons to invest

Secular trends is a reason to invest in Softcat because long-term changes in how organizations use technology are steadily increasing the need for exactly the kind of integrated, advisory-led IT support that Softcat provides. Across the market, customers are facing growing complexity in their IT environments. Workplaces are becoming more flexible and distributed, with employees working from offices, homes, and everywhere in between. At the same time, organizations are trying to optimize cost, performance, and resilience across hybrid estates that combine on-premise infrastructure with multiple cloud platforms. This complexity makes it harder for customers to rely on single vendors or in-house teams alone, increasing demand for a partner that can design, implement, and manage integrated solutions across the entire IT stack. Cyber security is a clear structural driver. It remains one of the top priorities for boards and management teams as threats become more frequent and more sophisticated, and as regulatory requirements continue to tighten. Customers are under pressure to demonstrate resilience, compliance, and strong governance, particularly as data becomes more central to their operations. Softcat benefits from this trend because security is not a one-off purchase but an ongoing need that spans infrastructure, networks, data, and end-user environments. Data, AI, and automation represent another powerful secular tailwind. Organizations increasingly recognize that the value of AI depends on having the right data foundations in place, including data quality, storage, security, and governance. Many customers are at different stages of this journey, but the common goal is to embed more AI and automation into systems and workflows to improve productivity and decision-making. This creates sustained demand for data platforms, compute capacity, connectivity, and secure hybrid infrastructure, all areas where Softcat is active. Growth in data centers and networking further supports the long-term case. Rising data volumes, AI workloads, and the need for low-latency, secure connectivity are driving demand for larger and more complex infrastructure projects. While some very large deals can be lumpy from year to year, the underlying need for capacity, connectivity, and resilient architecture is structural rather than cyclical.

Winning new customers and selling more to existing customers is a reason to invest in Softcat because it shows that growth is coming from both expanding the customer base and deepening long-term relationships, rather than relying on one-off projects or favorable market conditions. Softcat continues to add new customers each year, with the customer base growing to almost 10.200 in the most recent year.  Softcat already serves a large number of organizations' and operates in a fragmented market where it estimates it still reaches only around one in five potential target customers. This leaves meaningful room for continued customer acquisition over time, supported by ongoing investment in sales teams, training, and specialist capabilities. At the same time, the more powerful driver of value is Softcat’s ability to sell more to existing customers. This is clearly reflected in the consistent growth in gross profit per customer, which rose by 16,5% in the latest year. As relationships mature, customers tend to buy across more technology areas, work with a broader range of vendors through Softcat, and rely more heavily on Softcat for complex and strategic projects. This increases profit per customer and reduces churn, creating a more stable and predictable revenue base. The account manager model plays a central role in this process. Winning a new customer is treated as the starting point rather than the end goal. Sales teams are focused on nurturing relationships over many years, gradually expanding the scope of services and solutions provided. This approach is reinforced by constantly evolving sales methods that are tailored to different customer types, sectors, and technology needs, including public sector, large enterprises, security, data, and AI-led solutions. Another important element is Softcat’s growing ability to deliver larger and more complex solutions. The number of large solution projects has increased significantly, reflecting investments made over recent years in technical expertise and specialist teams. This allows Softcat to capture a greater share of customer IT budgets and strengthens relationships with customers that have long-term, multi-year technology roadmaps. The long tail of smaller and less active customers also represents a future growth opportunity. Many of these customers have only engaged with Softcat on a limited or transactional basis, or not at all in the past year. As needs grow and complexity increases, these customers can move into more regular trading relationships, providing another source of organic growth.

International expansion is a reason to invest in Softcat because it extends a proven business model into much larger markets, deepens relationships with existing customers, and opens up a long runway for growth beyond an already mature UK business. Softcat has built a strong position in the UK, but many of its customers now operate internationally and increasingly want a single IT partner that can support them across multiple countries. Softcat is already being pulled into overseas work by these customers, particularly in Ireland and the United States, which allows international growth to start from trusted, existing relationships rather than from scratch. This reduces risk and increases the likelihood of successful execution. Ireland is a good example of how this can play out. Softcat has established a local team selling to local customers and continues to invest in that market with the ambition to become a leading player over time. This demonstrates that the Softcat model can be replicated outside the UK while maintaining the same culture, service quality, and customer focus. The US represents a much larger opportunity. Softcat already has a growing team on the ground, currently focused on supporting UK and Irish multinational customers in the US. This provides valuable experience, local knowledge, and operational capability before moving into serving US-based customers more broadly. Management has been clear that organic growth will continue, but that the pace could be accelerated through an acquisition if the right opportunity arises. Beyond Ireland and the US, Softcat is steadily building a global fulfilment network across Europe, Asia Pacific, and North America. This supports multinational customers and increases relevance with larger and more complex organizations, which tend to spend more on IT over time. Crucially, Softcat remains relatively small on a global scale despite being the UK market leader. It is not yet among the top global players in its industry, which highlights how much room there is to grow internationally. With a strong balance sheet, a scalable operating platform, and a culture that has proven transferable across locations, international expansion offers a meaningful and long-term growth opportunity for Softcat.

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Valuation

Now it is time to calculate the share price. I perform three different calculations that I learned at a Phil Town seminar. If you want to make the calculations yourself for this or other stocks, you can do so through the tools page on my website, where you have access to all three calculators for free.

The first is called the Margin of Safety price, which is calculated based on earnings per share (EPS), estimated future EPS growth, and estimated future price-to-earnings ratio (P/E). The minimum acceptable rate of return is 15%. I chose to use an EPS of 0,66, which is from the fiscal year 2025. I have selected a projected future EPS growth rate of 8%. Finbox expects EPS to grow by 8,3% over the next five years. Additionally, I have selected a projected future P/E ratio of 16, which is double the growth rate. This decision is based on Renishaw's historically higher price-to-earnings (P/E) ratio. Finally, our minimum acceptable rate of return has already been established at 15%. After performing the calculations, we determined the sticker price (also known as fair value or intrinsic value) to be £5,64. We want to have a margin of safety of 50%, so we will divide it by 2. This means that we want to buy Renishaw at a price of £2,82 (or lower, obviously) if we use the Margin of Safety price.

The second calculation is known as the Ten Cap price. The rate of return that a company owner (or stockholder) receives on the purchase price of the company essentially represents its return on investment. The minimum annual return should be at least 10%, which I calculate as follows: The operating cash flow last year was 141, and capital expenditures were 12. I attempted to analyze their annual report to calculate the percentage of capital expenditures allocated to maintenance. I couldn't find it, but as a rule of thumb, you can expect that 70% of the capital expenditures will be allocated to maintenance purposes. This means that we will use 8 in our calculations. The tax provision was 45. We have 199,4 outstanding shares. Hence, the calculation will be as follows: (141 – 8 + 45) / 199,4 x 10 = £8,93 in Ten Cap price. 

The final calculation is called the Payback Time price. It is a calculation based on the free cash flow per share. With Ashtead's Free Cash Flow Per Share at £0,65 and a growth rate of 8%, if you want to recoup your investment in 8 years, the Payback Time price is £7,47.

Conclusion

I believe Softcat is an attractive company with strong management that has built a durable competitive position through a culture-led service model combining skilled people, broad technical capability, and deep vendor relationships, making it a partner that customers find hard to replace. This model has allowed Softcat to consistently generate very high ROIC, a trait that is expected to continue given the nature of the business. The company has also grown free cash flow in most years over the past decade, reflecting its ability to convert profits into cash while funding growth internally, and this trend is also likely to persist over time. That said, macroeconomic factors remain a risk, as weak or uncertain economic conditions can lead customers to delay IT projects, slow decision-making, and focus more on cost control, which can reduce demand growth and profit per customer, while higher operating costs and external disruptions can pressure margins from year to year. Another risk is the failure to respond to market changes, as rapid shifts in technology, vendor strategies, competition, and customer expectations could weaken Softcat’s relevance if it does not adapt quickly enough, potentially leading to fewer customers, lower spend per customer, and a gradual erosion of competitive advantage. Cyber security and business interruption are also risks, since Softcat depends heavily on its own IT systems to sell, deliver, and support customer solutions, and any major cyber incident or prolonged outage could disrupt operations, harm customer trust, and result in financial and reputational damage. On the positive side, secular trends support the investment case, as the shift toward hybrid work, cloud and data-driven IT, AI adoption, and rising cyber security needs are increasing the complexity of customer IT environments and creating sustained demand for an integrated partner like Softcat. The company’s ability to win new customers while selling more to existing ones further underpins growth, with low penetration in a fragmented market and consistent increases in profit per customer as relationships deepen, allowing Softcat to expand its customer base while steadily increasing wallet share and reducing churn. International expansion adds another layer of opportunity, as Softcat extends its proven model beyond the UK by supporting multinational customers, building traction in Ireland, and establishing a growing presence in the US, giving it a long runway for growth without relying on a fundamental change in strategy. Overall, I believe Softcat is a high-quality business, and buying shares at £12, which implies a roughly 30% discount to intrinsic value based on the Ten Cap calculation, would represent an attractive long-term investment.

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