Sophos, a FTSE 250 provider of network cybersecurity solutions, said on Thursday that it expects reported full-year billings growth to be towards the top end of the previously guided range of 20% to 22%.
This would represent growth of around 18% at constant currency, the company said in an update ahead of its preliminary results for the year to the end of March 2018.

The group, which aims to deliver annual billings of $1bn for FY20, said fourth-quarter reported billings grew approximately 23%, or 16% at constant currency.

Sophos is due to release its preliminary results on 17 May.

Shore Capital said FY18 billings growth of circa 22% would imply FY18 billings of around $771m versus the consensus range of $758m-774m and Shore's $771m estimate.

"We retain our forecasts for FY18/FY19, which are mildly above consensus for the present, noting that FX is now a tailwind supporting positive underlying like-for-likes (Sophos reports in dollars)."

At 1455 BST, the shares were up 14.6% to 476.80p.

Credit Suisse reiterated its 'outperform' rating on the stock and said: "The trading update will provide significant comfort to investors that Sophos remains on track to deliver its mid-to-high teens billings growth targets and reach $1bn of bookings in FY20.

"In light of recent newsflow, we think this reacceleration of billings growth will have a positive and material impact on the share price. We make no forecast changes today, and continue to feel that at on a Mar FY20E free cash flow yield yield of 7% (with the share price at 480p), Sophos remains an attractive investment opportunity."

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