Europe’s largest independent IT Group SCC has announced record earnings for the fifth consecutive year driven by customer demand for digital services and cloud strategies.
Full year results for the financial year ending 31 March, 2018, for the SCC EMEA Group, showed revenues reaching a record £1.8bn and EBIT of £27.7m – a 10% growth year-on-year.
FY18 highlights and outlook:
- £1.8bn turnover, up 9% across EMEA
- EBIT up 10% to £27.7m
- EBITDA at £45m up 9% across EMEA;
- Group services now stands at £325m – up 4% year-on-year
- Earnings of £16m for the UK business (before interest and tax);
- Strong EBIT growth in both Spain and France
- Net Assets £147m up 7%
- Customers’ need to digitise their own businesses will drive demand
- Acquisitions remain a possibility
Strong performances from the UK, France and Spain have underpinned another year of record growth for the company. The operations in France and the UK continue to drive the majority of group turnover (96%) and profitability (94%) and this is expected to continue to be the case for the foreseeable future.
France has the largest turnover of the group and was able to grow by £132m in the last 12 months – an increase of 13%. Long term relationships in the private and public sector have underscored growth in France. Customers include UGAP, the Ministries of Defence, Interior, Finance, Safran, Air France, Thales Societe Generale, AXA and La Poste.
Within the UK, growth in high value products was a key element of success alongside a strong performance in services. Key data centres in Birmingham and Hampshire completed major investment programmes and these two Tier 3+ locations are providing first class services to a range of customers.
Key customers for the UK business include the BBC, NHS, the Police force, a range of FTSE 100 companies, banks and a significant number of private sector firms including British Airways and BAE Systems.
James Rigby, SCC Chief Executive, said: “Performance of the business over the last year has been exceptional with growth and improved profitability in all our key trading operations. There is now a need for all businesses, whoever they are or whatever they do, to digitise their operations and outsourcing that requirement is an effective way to manage the continual investment needed for growth. We have invested over the past few years via our cloud services and data centres in anticipation of that demand and we expect to continue our current performance levels in the coming years.
“We will continue to invest in our capabilities and that means areas such as artificial intelligence and cognitive computing where we are already well-placed to meet customer demand. Our performance is also based on the success of our strategic acquisitions we have made over the past few years. We will continue to look at opportunities which fit our strategic criteria and help further grow our capabilities.”