Rigby Group’s SCC completes One Point investment


In a deal announced today, SCC, Europe's biggest independent IT services business which is part of the Rigby Group, has taken a controlling stake in One Point, adding mobile voice and data capability to complete its Cloud Delivered Managed Services (CDMS) proposition.

One Point becomes SCC's third major investment in 2015 - another key milestone in the development of its CDMS portfolio following investments in Fluidata and SIPCOM earlier this year.

Having invested more than £50m in its own Data Centres - including the acquisition of SSE's flagship Tier 3+ Data Centre in Fareham in 2014 - SCC has since bolstered its capability in connectivity, voice, and now mobile to complete its CDMS offering.

One Point simplifies the delivery of mobile voice and data services by unifying best-in-class technologies to improve business performance. The strategic partnership will see One Point continue to operate as normal, under its own brand and existing leadership team.

James Rigby, SCC Chief Executive, said: "We've been actively pursuing an investment in mobile - and in One Point we've found the right business to complement our existing services portfolio and deliver the same, excellent levels of service to customers.

"We've worked tremendously hard to build a formidable Cloud Delivered Managed Services proposition - and position SCC at the cutting edge of IT service delivery.

"This investment marks the completion of our CDMS portfolio, in terms of capability. We'll now look to drive the proposition forward, adding additional capacity where necessary, alongside continued organic investments in our own Data Centre Services."

One Point Managing Director Ben McElligott added: "Aligning our business with SCC increases our overall service offering, expanding our own capability and making the most of our service offering, particularly around mobile.

"The investment from SCC cements One Point firmly in the mid-market space and provides our customers with additional choice and value. We're delighted to be joining SCC and view this as a great partnership for both our business and our customers."

In November, SCC was named Managed Services Provider of the Year at the CRN Channel Awards 2015. The judges commended SCC for its "long-term investment in its capabilities and developing a comprehensive and effective value proposition," and described SCC's entry as "a shining example of clear strategy and delivering exceptional results to its customers."


Rigby Private Equity makes second major investment in specialist distribution


In a deal announced today, Rigby Private Equity (RPE), the private equity arm of Rigby Group Investments, has made a significant investment in specialist services distributor Zycko Ltd. The deal will allow Zycko to expand more aggressively throughout the EMEA region.

David Galton-Fenzi, CEO of Zycko, said: "The backing and support of RPE means we are now in a position to accelerate our ambitious growth plans. It’s a great opportunity for the company to continue its growth and transformation into a significantly larger organisation, but one which is still focussed on providing first-class, specialist support to vendors seeking services-oriented, EMEA-wide distribution. I’m looking forward to spearheading our expansion plans and leading our team at this very exciting time."

Zycko is the second acquisition for Rigby Private Equity, which is building an EMEA-wide high-value specialist distribution business. RPE was formed earlier this year to identify established companies with both a great value proposition and plans for strong growth, to invest in these companies and to support the acceleration of their growth plans. In July, Rigby Private Equity made a major investment in leading specialist security value-added distributor Wick Hill.

Paul Eccleston, head of Rigby Private Equity, commented: "We are extremely pleased that Zycko is joining Rigby Private Equity. The company has a great track record and a reputation for helping vendors successfully bring new technologies to market and grow their business. Their ethos of innovation and excellence, alongside a strong commitment to specialist services and support, is entirely aligned with that of Wick Hill.

"Zycko is already in twelve countries in EMEA, which helps us move forward rapidly with our growth plans. The benefits for Wick Hill, and its partners and customers, include access to the international scope offered by Zycko’s established EMEA network; and the benefits for Zycko include access to Wick Hill’s strength in security and the chance to further build on high value and consultancy opportunities for channel customers."


Rigby Group Invests In Cloud Service Provider SIPCOM


Rigby Group plc has invested in cloud service provider SIPCOM.

The investment enables additional services capability to Rigby Group’s technology division, SCC, and is the Group’s 15th piece of M&A activity since hitting the acquisition trail in 2013, and the second telecoms deal in 2015.

SIPCOM is a global & leading CSP specialising in delivering Software as a Service (SaaS) that includes Unified Communications as a Service (UCaaS) and operates in a rapidly expanding and high growth market, sized today at £13bn+.

SCC’s new strategic partnership with SIPCOM, a key partner to leading ISVs Microsoft, Oracle and BroadSoft, is another milestone in the accelerated growth of its services division – with Data Centre Services turnover alone increasing 87% in FY15.

It follows the acquisitions of SSE Telecoms’ flagship Hampshire Data Centre and Data Telecoms business Fluidata earlier this year, and significantly enhances SCC’s Unified Comms proposition with specialist Microsoft, SIP and Hosted PBX capabilities.

SIPCOM offers the ability to build private hybrid clouds with full feature capability that can be delivered over three continents, supported by a Hosted Voice service covering 65 counties. Key to Rigby Group’s investment is the potential to deliver a local service to international customers, underpinned by its growing near-shore service centre operation in Romania.

SCC’s total rack capacity now stands at over 1,800 and 14MW of power, with the business closing FY15 on 67% occupancy and annual rack growth of 145%.

Rigby Group Chief Operating Officer Steve Rigby said of the acquisition: “Securing this deal provides additional services capability and a stable foundation for SCC to further grow its Cloud Delivered Manages Services (CDMS – DCS & connectivity) business.

James Rigby, Chief Executive of SCC, added: “This deal underlines our 3-5 year growth plan in positioning SCC as a leading Data Centre & Cloud Services provider.

“Adding Fluidata’s network and SIPCOM’s Hosted Voice & UCaaS capabilities to our Data Centre Services delivers a very compelling Cloud Delivered Managed Services proposition to our customers and the markets we operate in.”

Daniel Allen, Chief Executive of SIPCOM, commented: “The investment from Rigby Group positions SIPCOM firmly in the mid-market space – and offers customers the value and comfort they expect when selecting a cloud service provider.

“SIPCOM is delighted be aligned to Rigby Group’s pedigree and credibility, and SCC's leading position as an IT services business. It’s a great match for everyone."

With the market rapidly expanding and a surge of more flexible, agile working for users – balanced with cost-saving and efficiency programs – the demand for UCaaS based technologies continues to accelerate.

SIPCOM, supported by Rigby Group, has extended its market with SCC and is looking to build its plan to 200,000 cloud based users by the end of 2018.


Wick Hill deal paves the way for further growth and international expansion


Woking, Surrey: Monday, July 6th 2015: 2.00 p.m. - In a deal announced today, Rigby Private Equity, the private equity arm of Rigby Group Investments, has made a significant investment in specialist, high value-added distributor Wick Hill Group. The deal will allow Wick Hill to grow further in the UK and Germany, as well as giving it a major opportunity to expand into Europe and the Middle East.

Both Wick Hill and Rigby Private Equity stressed that it will be business as usual in the future. Wick Hill will continue with the same staff and management team, led by Ian Kilpatrick, and with the same market-making, high value-add philosophy that has made it a leading VAD in both the UK and DACH regions. Rigby Private Equity is an autonomous, independent entity within Rigby Group Investments.

Ian Kilpatrick, chairman Wick Hill Group, commented: “This deal gives Wick Hill an opportunity for major growth and the chance to take our successful distribution model across Europe and the Middle East. Some of our vendors and potential vendors, as well as some of our customers, have been asking us for an international network, with our value-add model, and we will now be able to deliver that. It’s a logical next step for us and we’re very confident about the opportunities for our staff, vendors and resellers. I am looking forward to what will be a very exciting time for the company.”

Paul Eccleston, head of Rigby Private Equity, said: “Rigby Private Equity has been formed to identify established companies with both a great value proposition and plans for strong growth. Our aim is to invest in these companies, so we can support the acceleration of their growth plans. Wick Hill has been an established leader in high value distribution for more than three decades, with Ian and the team having a great reputation for service, as well as having strong plans for growth. Rigby Private Equity is delighted to be joining the team, to help achieve those plans. This is an exciting time for us, for the Wick Hill team and for Wick Hill’s customers and vendor partners.”


Hard work and ambition are the bedrock of Sir Peter’s 40 successful years


Hard work, commitment and ambition are the critical career traits relied upon by Sir Peter Rigby - one of the UK’s most successful serial entrepreneurs – who is celebrating 40 years since founding the Rigby Group.

Sir Peter – who was knighted in 2002 – started out in 1975 with just £2000 of his own money and has spent the past four decades building and expanding a highly successful range of business interests covering technology, aviation, leisure, real estate and financial services.

Today - alongside his sons - he continues to be at the forefront of his business interests as the chairman and chief executive of the £1.8bn turnover Rigby Group.

Reflecting on his career, Sir Peter said: “I find business as exciting today as I did when I started and that’s because I have a total commitment to what I am doing. Even today I still set myself goals and want to do more and do better.

“I have always believed there is no substitute for hard work as well as a natural instinct to be bold and a desire to move forward. You need to be ambitious – not stupid ambitious – but nevertheless looking to the future and that’s what really gets the adrenalin going. Even today I want the Rigby Group to double in scale within the next five years. That’s my current ambition.”

Sir Peter’s first venture in 1975 was to found SCC which today is Europe’s largest independent IT company. He went out on his own after becoming frustrated with the corporate world.

He added: “I started a business with no university degree and I have always held great store by experience and getting mud on your boots. There are more failures than successes in IT and you need to be exposed to both in order to make it. There is no substitute for seeing good practice in action and working with good people. Looking back I sometimes wonder how it all happened and I am still astounded by the capabilities of our group, the quality of our people and the results we achieve - all of which are world class.”

Today Sir Peter is joined in the business by his sons Steven and James who are the Rigby Group COO and CEO of SCC respectively.

Remaining a family-owned business has always been a priority for Sir Peter who said: “Being a family-business is very important to me and I have never been interested in selling off what we have created. I have also always tried to extend the family culture to our whole company and believe in allowing people to make the best of themselves and progress upwards.”

In recent years Sir Peter - a qualified pilot - has increased his interests in sectors such as aviation and leisure, and despite the recent economic downturn, the Rigby Group has continued to grow.

He said: “During the recession there was no trimming in our core businesses. Every significant capital expenditure we delivered and our strategy was to invest. In the last 14 months we have made 11 acquisitions which demonstrates our long-term ambitions. I have no plans to stop or slow down and I still get up in the morning and want to go to work – I love doing what I am doing.”

Away from his business interests, Sir Peter has recently served as the Chairman of the Coventry and Warwickshire Local Enterprise Partnership (CWLEP), which aims to promote business and industry growth within the area. He is also a trustee of several key charities, including The Rigby Foundation, his family charitable trust.


EY National Lifetime Achievement Honour for Sir Peter


Founder and chief executive of Rigby Group Plc, Sir Peter Rigby has been recognised for his 40 years in business with a special national lifetime achievement honour from EY which was presented at the accountancy firm’s Midlands Entrepreneur Of The Year awards.

Sir Peter, who started his first business in 1975, was given the lifetime achievement award at an event which was also recognising the Midlands region’s current crop of entrepreneurs and business leaders across a range of award categories.

Sir Peter Rigby, said: “I am delighted to be recognised by EY with this lifetime achievement award. When I look back at my career it has been an amazing journey and one that I enjoy as much today as I did at the start. This is my 40th year as an entrepreneur but my enthusiasm for business remains undimmed and I look forward the next stage of development and growth for the Rigby Group.”

Adrian Roberts, Partner and Midlands Entrepreneur of the Year Leader at EY, said: “Many congratulations to Sir Peter Rigby on achieving 40 years in business. He had the vision to build a world class business from scratch, which demonstrates true entrepreneurialism, drive and commitment. He’s also made a real impact by bringing jobs and wealth to the Midlands region, as well as across the UK and internationally.”

Rigby Group PLC focuses on six core areas: technology, airports, hotels, real estate, finance and aviation. It encompasses the technology solutions provider SCC, the luxury Eden Hotel Collection, British International Helicopters (BIH), Regional & City Airports (RCA) the property development business Rigby & Rigby and a wide range of additional investments including Rigby Capital.

The Group was recently named as one of the UK’s top 25 businesses in the prestigious Sunday Times HSBC Top Track 100 list.


Rigby Group Recognised in Sunday Times Top Track 100


Rigby Group Plc, the parent company for a portfolio of privately owned and highly successful businesses, has been named as one of the UK’s top 25 businesses in the prestigious Sunday Times HSBC Top Track 100 list.

The full list was published yesterday (Sunday 7) and Rigby Group plc - which was founded by Sir Peter Rigby and is run with his two sons Steven and James - was placed at number 24.

The Rigby Group - which includes interests in technology, aviation, leisure and property among others - has grown significantly in the past 18 months through a series of strategic acquisitions. The recognition coincides with Sir Peter Rigby celebrating 40 years as one of the UK’s leading business leaders and entrepreneurs.

Sir Peter Rigby, said: “To be recognised in this way is a huge honour for the Rigby Group which has grown at a fast rate particularly over the last few years. Alongside our growth and focus on different sectors, we remain a family-owned and run business and work hard to translate that into our wider values as well as the culture we have created. We firmly believe that as a growing collection of businesses, we need to maintain core principles at every level which help underpin our success.”

Steven Rigby, Group COO, added: “This type of recognition is testament to the hard work and excellence across our Group and demonstrates that we are being noticed for delivering on our stated growth strategies.”

Rigby Group focuses on six core areas: technology, airports, hotels, real estate, finance and aviation. It encompasses the technology solutions provider SCC, the luxury Eden Hotel Collection, British International Helicopters (BIH), Regional & City Airports (RCA) the property development business Rigby & Rigby and a wide range of additional investments including Rigby Capital.


FY15: Strategic transition keeps SCC UK growth plans on track with DCS revenue up 87%


SCC* has announced its annual results for year ending March 2015, with Services revenue reaching £159m, up 22% and accounting for 24% of its total income.

Combined UK Operations*:

  • FY15 revenue £662m, down 13.3%;
  • Services revenue up 22% to £159m, now 24% of total revenue;
  • Gross Profit (GP) increase of 15% and margin rate up 3.7% in the year to 15.5%;
  • Share of GP from Services up 11% in the year to 55% of overall GP;
  • EBITDA up 25% on prior year to £19.4m;
  • PBT at £12.4m up 20% on prior year;
  • M2 print business contributes turnover of £27m and EBITDA of £1.6m.

*SCC plc & M2 Digital Ltd

The transition has seen dramatic changes in the underlying business and hyper growth in Cloud Delivered Managed Services (CDMS – DCS & Connectivity), as SCC moves the business away from low margin product sales.

Key to SCC EMEA’s strategy to reach £50m EBITDA by FY17 is its Services division, which saw an overall GP growth of 22% in FY15.

This was supported by key new business wins with Kier Group, Samworth Brothers, Grafton Group, Mcdonald Hotels, United Utilities, Department for Work and Pensions, and WHSmith.

SCC’s Professional Services business grew 11% versus last year, with Managed Services up 13% and growth from the new Flexible Resourcing service.

As SCC continues to invest heavily in its Data Centre Services (DCS) – most recently taking a majority share in Fluidata, the Data Delivery Network – it enjoyed another year of accelerated growth, up 87% on FY14.

DCS closes the year on £26m, with an Annualised Run Rate (ARR) of £34m. March 2015 alone saw Monthly Recurring Revenue (MRR) increase 100% compared to last year.

As SCC’s Cloud platforms enter maturity, DCS GP closed the year at 44% from 25%, with ARR closing on £29.4m, 96% ahead of the previous year.

Monthly DCS EBITDA closes 220% ahead of FY14, at an annualised EBITDA of £12m (pre-central costs).

Following SCC’s acquisition of SSE’s Tier 3+ Data Centre in Fareham and our recent 2nd phase 360 rack Birmingham investment, our total rack capacity is over 1,800 and 14Mv of power, the business closes the year on 67% occupancy and annual rack growth of 145%.

Looking ahead to FY16 for the combined UK business, turnover for Services business is expected to top £200m with Cloud Services set to close next March on £55m and an ARR of £70m.

EBITDA is estimated to grow 30% to £25m, with stable Product revenues of £500m and overall revenues of £700m.

SCC Chief Executive James Rigby said: “The business is firmly on track to achieve its 3-year target of £50m EBITDA. We now have a sizeable Services business to further our growth and margins through recurring revenues.

“Cloud Delivered Managed Services is the way forward for SCC. We have already started our next phase with a £10m investment in our own Data Centres, building additional data halls at Birmingham and Fareham facilities to increase capacity to 3,000 racks in FY16 to cater for CDMS growth of up to 60%.

“SCC has always been a company with vision and an ability to deliver. We have an exciting year ahead as we grow our Services business organically and through further investments.”

In Europe, SCC France recorded its best year of EBITDA for a second consecutive year, up 5.4% to £15.7m. Overall revenue in France closed on £812m a 3% improvement in constant currency terms.

SCC Spain increased its revenue by £8m to £48m versus FY14 – a constant currency increase of 30%, with EBITDA of £0.6m, up 123%, as it continues its own transition to a services led business.

And SCC Romania saw revenues of £9.2m, while the business delivered a 103% increase of EBITDA to £1.2m. During the year, headcount grew to 711 people at the facilities in Iasi and Bacau. During FY16, it is expected to grow to more than 1,200 people.

SCC EMEA closed the year on £1.55bn revenue and EBITDA of £35.2m; an increase of 10% over the prior year.


Rigby Group Launches Captive Finance Division

  • Business aiming to turnover £75million in the UK within two years

Rigby Group Plc, the parent company for a portfolio of privately owned and highly successful businesses, has launched a captive finance division to help customers fund future investments particularly in IT.

Rigby Capital is headed up by Nigel Jenkins, who has previously held similar roles in CISCO, Hewlett Packard and Microsoft.

The new company, which is based in Bracknell and employs 8 staff, aims to turn over around £75million of revenues within two years in the UK principally through offering finance solutions to customers of Rigby Group’s core IT businesses, SCC and M2.

Steven Rigby, Rigby Group COO, commented: “Our experience and knowledge of the IT market in particular has shown there is a strong demand for these types of solution. The sector has transitioned significantly and we are seeing more demand for captive finance to fund new investments rather than traditional sources such as the banks.

“We are very confident that by providing this service within the Rigby Group, we can offer a service and solution which is different to what is already on the market.”

The Group already has an existing and successful leasing business in France which will also re-brand as Rigby Capital.

Nigel Jenkins, General Manager, Rigby Capital, commented: “My previous experience has been with very large US-based IT firms which have the capability but not always the flexibility which I believe is crucial in this sector. Rigby Capital will provide an effective and responsive offer to clients where decision-making is done on the ground. What we have which sets us apart, is the financing and route to market through the successful IT brands within the Group combined with the agility to adjust our solutions to meet client requirements.”


Rigby Group Invests In Data Delivery Business Fluidata


Rigby Group plc has invested in Data Delivery Business Fluidata.

The investment enables additional services capability to Rigby Group’s technology division, SCC, is the Group’s 14th piece of M&A activity since hitting the acquisition trail in 2013, and the first in 2015.

Fluidata, the Data Delivery Network, is a multi-award-winning business that delivers innovative high speed data connectivity solutions to the corporate, industry and public sectors.

It specialises in Layer-2 and Layer-3 delivery using a wide reach of technologies including DSL, EFM, Fibre, VPLS/MPLS, Wireless and unique failover/aggregation technology.

The strategic partnership with Fluidata is another milestone in the accelerated growth of SCC’s services division – with services turnover alone increasing 25% to £165m by the close of the fiscal.

It follows Rigby Group’s acquisition of SSE Telecoms’ flagship Hampshire Data Centre earlier this quarter, representing the addition of a second Tier 3+ facility alongside its Birmingham Data Centre.

Rigby Group Chief Operating Officer Steve Rigby said of the acquisition: “Securing this deal provides additional services capability and a stable foundation for SCC to enter the Data Telecoms market.

“SCC remains the cornerstone of the Group in terms of revenues and this acquisition further underlines our investment plans in Data Centre Services.”

James Rigby, Chief Executive of SCC, added: “Fluidata very much complements our data centre services investment strategy, providing greater flexibility and value to our customers and the overall market.”

Piers Daniell, Managing Director of Fluidata, commented: “Aligning our business with SCC increases our overall service offering and expands our Data Centre capability while making the most of our diverse connectivity offering.

“SCC’s pedigree, leading position and IT portfolio provides our customers with more choice and value. It’s a great match for everyone."