A successful year for SCC Group as growth accelerates with key services wins
- SCC Group revenues up 9.5% to £1.74bn
- EBITDA rises 93% due to record services wins and growing recurring revenues
- SCC UK revenues top £751m (+13%) with a 27% increase in profitability
- Major UK growth attributable to services across Datacentre and Cloud - up 69%
- SCC growth set to continue with focus on achieving £50m EBITDA
(UK) SCC Group - part of the privately owned Rigby Group - has announced its full year financial results to March 2014 showing increased revenue growth of 9.5% compared to the same period last year to total revenues of £1.74bn.
During the same period, EBITDA grew by 93% to £32m and on a continuing basis, excluding disposals and acquisitions, EBITDA was £34.2m.
From a domestic perspective, SCC UK revenues grew by 13% to £751m and £17.1m of EBITDA, 27% higher than the previous year. SCC UK product sales rose by 13% in revenue and 7% in GP. SCC UK services business grew by 12% in revenue and 17% in GP.
UK Datacentre and Cloud revenues grew by 69%. This was supported by a large number of key wins. These included Gist, Aggregate Industries, BOC, IBM, Oxford Council, CAA and Highways Agency. Collectively, these wins delivered in excess of £50m of contract value and SCC enters the new financial year with a strong number of additional contracts that are in transition.
SCC’s Professional Services business benefited from the necessity of customers to migrate away from Windows XP. Key multi-million pound wins in the Professional Services practice included Eurostar, Aldermore Bank, BOC, United Utilities, and Babcock.
The Managed Services business also secured many new customer wins and renewals, many of which went live in H2 and positioned the business for further growth. Key multiyear, multimillion pound annuity service wins or renewals included Mitie, CMS Cameron McKenna, BOC, TUI, Konica Minolta, Volac, National Trust, CSC, Messier Dowty, Price Forbes, Nissan and British Airways.
James Rigby, SCC’s CEO said “I am delighted by this year’s results. Following the sale of SDG in late 2012, these results show our renewed focus on SCC following detailed strategic review and put us firmly on the road to our interim financial goal of £50m EBITDA.
“The services wins secured represent our best achievements and we are grateful for customers entrusting in our vision and approach to the market. I am particularity pleased with our outstanding growth in Cloud services. Looking to the next fiscal year and on the back of our best ever year of services wins, SCC is positioned strongly to continue its evolution through on-going organic investment and acquisitive growth.”
SCC France enjoyed further revenue growth of 5% to £846m and its best year of EBITDA at £15m. The business secured numerous key government and private sector contracts and enters FY15 with a clear strategy to drive the services business to £150m in the coming years.
Despite SCC Spain witnessing a 5% decline in revenue to £40m, margins increased and the business delivered an improved EBITDA of £0.5m. The team remained focused on their transition to a services led business.
SCC Romania saw revenues increase by 72% and the business delivered EBITDA of £0.6m. During the year, headcount increased to 600 at the facilities in Iasi and Bacau. During FY15, it is expected to grow to more than 900 people in Romania.
SCC successfully completed the acquisition of M2 managed print services in February 2014. It is anticipated this business will grow to £50m and 30,000 managed devices by the end of 2015, positioning SCC as the leading independent managed print provider.
During the last fiscal SCC secured a number of global awards from several vendor partners, including HP and Oracle.