(Reuters) -IT services provider Softcat on Wednesday raised its full-year operating profit growth forecast, bolstered by a boom in demand for artificial intelligence and automation.
Shares of the British firm were up as much as 12.5% at 1825 pence, topping the FTSE midcap index.
Softcat said its operating profit jumped 10.4% to 73.7 million pounds ($95.5 million) in the six months ended January and the company expects full-year growth in the low double-digit percentage range.
That is higher than its previous forecast of high single-digit profit growth.
“We expect the upgraded guidance to predominantly account for the better-than-expected H125 performance,” said analysts at J.P. Morgan.
Based on brokerage estimates in a company-compiled poll, analysts were expecting Softcat’s operating profit to increase between 3% and 12% for the full year.
“Our existing capabilities and continued investment mean we are well positioned to support the evolving technological needs of our customers, enabling us to sustainably grow market share,” Softcat’s CEO, Graham Charlton, said in a statement.
Technology firms across the board have benefited from a surge in demand for AI applications and automation as organizations seek greater efficiency.
($1 = 0.7715 pounds)
(Reporting by Raechel Thankam Job and Anandita Mehrotra; Editing by Savio D’Souza and Mark Potter)
