Monday, October 10th, 2016: Rigby Group (RG) plc, the parent company for a portfolio of family-owned and highly successful businesses operating across Europe and the Middle East., has published its final results for the year to 31 March 2016.
The Group - which comprises six core divisions covering technology, airports, hotels, real estate, financial services and aviation - announced an increase in revenues of £1.79bn up 10.8% on the previous year. Group EBITDA rose to £54.4m, up 47.6%. Profit before tax rose 23.5% to £22.3m compared with the previous 12 months.
The Group, which was formed 41 years ago by Sir Peter Rigby and is run by him with his sons Steven and James, is on course to double in size by 2025, creating a £1bn market value diversified business. This would make it one of the most successful wholly-owned family businesses the UK has ever produced.
Rigby Group Highlights
• Consolidated revenues from continuing operations up by 10.8% to £1.79bn (2015: £1.61bn);
• EBITDA (before exceptional items) for the continuing operations up 47.6% to £54.4m (2015: £36.8m);
• Group pre-tax profit of continuing operations, before exceptional items, of £22.9m (2015: £20.9m);
• Group total pre-tax profit of £22.3m (2015: £18.1), an increase of 23.5%;
• Consolidated net assets of£282.3m (2015: £257.2m);
• Year-end net cash (cash less debt plus current asset investments) of £62.1m (2015: £116.0m);
• Gross cash at year end was £109.5m (2015: £135.7m);
• Current asset investments at year end of £44.3m (2015: £59.0m);
The group continues to be active from a merger and acquisitions markets across its portfolio interests, with five acquisitions completed in the year and three post year end.
Sir Peter Rigby, Founder and CEO of the Rigby Group, said: “With two generations of the family at the helm, Rigby Group has built a distinguished reputation as both an investor and business operator; renowned for its independent thinking, seamless execution and a peerless approach to acquiring and nurturing businesses to unleash their potential. This approach has underpinned the success of the Group today as shown in these results.”
Steven Rigby, Group Chief Operating Officer, said: “The hard work of the last three years is now paying off. We no longer have a single business but a capable Group, which in time will transform into one of the UK’s most profitable private companies.
“We have exciting new divisions set to transform the landscape of the Group and it is clear in time that the business will have a number of material £100m plus value divisions. 2016 marks the Rigby Group’s transformation from an organisation focused almost entirely on technology services to a diverse vibrant group showing profitable growth across each of its divisions.”
Technology - SCC
SCC EMEA Group
• SCC EMEA generated revenues of £1.55bn (2015: £1.56bn), with EBITDA for the continuing operations down 5.1% at £32.8m (2015: £34.6m);
• SCC EMEA has made significant progress on its continued transition to a managed service and solutions led business.
• SCC Vietnam launched in 2016, based in Ho Chi Minh City, delivering two main activities: providing level 3&4 infrastructure support to customers, and the creation of an Offshore Development Centre to accelerate the development of custom applications.
• Operations of SCD Morocco terminated during the year.
SCC UK (combined Specialist Computer Centres plc and M2 Digital Limited)
• SCC UK 2016 revenue £653m, down 1%, low margin product revenues down by £35m, largely compensated by £22m of higher margin services revenues;
• Total Services revenues reached £177m, up 11% and accounting for 27% of total UK revenues (17% in 2013);
• Data Centre Services (DCS) revenues up 67% to £43m;
• EBITDA up 29% to £24.9m;
• Share of margins from Services up to 66% of overall margins (2015: 63%, 2013: 52%);
• Total investment in Cloud Delivered Managed Services (CDMS) across Rigby Group exceeds £60m;
• Continued investment in Data Centre, with two major Data Centre expansion projects underway in Birmingham and Fareham, increasing capacity to 3,000 racks (up 300% over the last three years)
• Key DCS wins include Konica Minolta, Next, Clarke Wilmott, Ince & Co, Arnold Clarke, and NHS Blood and Transplant;
• Annualised DCS Revenues of£52m at year end, up 51% from 2015, and of which 80% is repeatable revenues, underpinning SCC’s strategy for annuity revenues and continued profitability;
• Sentinel by SCC (SCC’s secure multi-tenanted cloud platform) revenues up 120% to £8m (2015:£3.6m). Key wins included Sodexo, Oxford City Council and Department for Works and Pensions;
• M2, Europe’s leading Managed Print Service (MPS) business and SCC MPS revenues up 21% to £46m, delivering EBITDA of £4.8m, up 48%;
• M2 employs over 230 staff, has 24,000 devices under management and has expanded its regional office network in the UK to 7 offices, including a dedicated public sector division;
• In April 2016, launched Universal Cloud Gateway service, a cloud brokerage portal enabling customers to easily procure both public and SCC cloud solutions.
• SCC France recorded an EBITDA performance at €13.3m;
• Overall revenue in France closed on €1.1bn, an increase of 10%;
• Flowline acquired in April 2016, a data centre infrastructure and services business with a presence in Paris and Lyon, as part of the group’s strategy to develop its service business in France.
• One of the 5 largest British businesses, and one of the top 10 infrastructure providers in France, with over 2,000 employees based in 23 locations.
• SCC Spain grew turnover by 5% to €64m;
• Services turnover increased by 7%;
• Underlying EBITDA of €0.3m achieved in the year;
• 150 staff operating from 6 locations
• SCC Romania grew revenues by 28% to €15m;
• Underlying EBITDA of €0.6m achieved in the year;
• Over 1,000 employees based in 3 locations, as Global Delivery Centre to the group and its customers;
• Named Outsourcing Company of the Year at prestigious Regional IT and Outsourcing Awards (PIN 2016), and SSC Company of the Year at Romanian Outsourcing Awards for Excellence.
Airports – Regional & City Airports
• Airports division handled 170,000 flights and processed 1.6m passengers through three owned airports (Exeter International Airport, Norwich International Airport, Coventry Airport) and three managed airports (Blackpool airport, City of Derry Airport and Solent Airport Daedalus);
• Total airport revenues reduced marginally (0.8%) to £34.5m;
• Passenger numbers up 3% and 2% at Exeter and Norwich Airports respectively;
• EBITDA, excluding exceptional items, increased by 36.3% to £5.6m compared to a £4.1m in 2015.
• New routes introduced at Exeter and Norwich
Hotels – Eden Hotel Collection
• Hotel division owns or operates eight luxury hotels in the Midlands and South West, with total of 242 bedrooms and 22 three bedroom lodges;
• AA Hospitality Awards’ Small Hotel Group of the Year in 2014-2015;
• Tides Reach hotel acquired in January 2014 to be redeveloped, sold in March 2016;
• Over 67,000 room nights sold in 2016, with revenues up by 14.9% to £17.4m;
• EBITDA up by 264.4% £1.7m (2015: £0.5m), including £1.1m gain on disposal of Tides Reach. EBITDA Up 18.4% excluding Tides Reach gain.
• Brockencote Hall awarded Gold Award in Visit England: Awards for Excellence – Small Hotel of the Year in May 2015, Mallory Court awarded Bronze;
• Refurbishment of ground floor, Elan Spa and some bedrooms at Bovey Castle completed during the year;
• New Elan Spa, with 12 additional bedrooms, being developed at Mallory Court Hotel at a total cost of £6.5m, scheduled for completion during the first quarter of 2017;
• Planning permission granted for additional bedrooms at Greenway Hotel & Spa and new function room, Elan Spa and additional bedrooms at Brockencote Hall Hotel.
• The real estate division continues to develop its two core businesses: super prime London residential development (via Rigby & Rigby); and commercial property development;
• Award winning Rigby & Rigby continues to have a strong market presence in London;
• New development brand, Imperial Park, launched in the year and first development underway, a £50.6m Gross Development Value (GDV) development of three warehouses totalling 575,000 ft2 on a 30 acre site next to Coventry Airport;
• Total revenues up 21.4% to £15.4m (2015: £12.7m);
• EBITDA up 972.7% to £12.6m (2015: £1.2m), including net fair value gains of £11.8m on investment properties;
• Profit before tax of £12.1m (2015: £0.7m);
• Post year end, planning permission granted to develop Whitley South Technology Campus to the north of Coventry Airport.
• Rigby Capital commenced actively trading in the UK during the year, generating £21.6m of revenues from lease activations in the 10 month period since May 2015, and breaking even for the year (2015: EBITDA loss of £0.4m);
• Rigby Capital closed the financial year with a pipeline of £120m+ leasing value;
• Rigby Private Equity made its first acquisitions of Wick Hill Group in July 2015, and Zycko Group in December 2015, which were included in the newly branded Nuvias Group;
• Nuvias Group generated revenues of £133.0m (2015: £Nil), and EBITDA of £1.9m (2015: loss of £0.3m);
• Rigby Technology Investments (“RTI”) commenced operations with acquisition of 51% of Fluidata in April 2015, 60% of One Point in August 2015 and 25% of Sip Communications in August 2015;
• RTI development focussed on Cloud, Data and Voice with integrated mobile, hosted PBX and SIP propositions utilising common shared service infrastructures;
• RTI generated revenues of £19.3m (2015: £Nil) and EBITDA of £1.7m (2015: £Nil);
• Investment portfolio incurred loss before tax of £4.0m (2015: profit before tax of £6.1m) due to the well-publicised market turmoil during the year. Investments of £44.7m (2015: £59.0m) held at year end, and investment returns post year end have improved as global markets recover.
Aviation – British International Helicopters
• Air medical operations rebranded “Capital Air Ambulance” during the year;
• Major contract started on 1 April 2016 to provide combined Search and Rescue (“SAR”) and Support Helicopter Services in the Falklands for 10 years. The contract, serviced by BIH together with AAR Airlift and Air Rescue Services has a total contract value of £180m;
• Division restructured to reduce reliance on general aviation and increase reliance on services underpinned by long term contracts, resulting in closure of Redhill facilities during the year;
• Fleet expanded by the acquisitions of Lear 45 jet and Cessna Citation XLS+;
• Revenues generated of £16.1m (2015: £13.6m), an increase of 18.4%;
• EBITDA of £0.7m, up 35.6% on prior year (2015: £0.5m);
Rigby Group article - The Telegraph