Independent IT group reveals record turnover

Europe’s largest independent IT group, SCC, based in Birmingham, has announced its full year results for the financial year ended March 31, 2020, revealing record turnover as services and data centre growth continues to lead the way and provide on-going stability.

Results for SCC EMEA show revenues reaching a record £2.3bn and EBIT of £30.7m – turnover growth of 5.5% and EBIT growth of 8.8% year-on-year despite performance being dampened by the global COVID-19 outbreak affecting the final month of FY20. The group achieved 11% growth in services across EMEA, driving SCC’s successive growth, with the product business also continuing to perform well.

FY20 highlights and outlook:

• £2.3bn turnover, up 5.5% across EMEA
• EBIT up 8.8%, at £30.7m
• 11% services growth across EMEA
• 9% services growth in the UK
• UK data centre operations up 17%
• Continued, long-term investments in people and technology

The group’s services growth is key to its ‘Leading with Services’ strategy flowing through into SCC EMEA’s record operating profit of £30.7m, also driven by the improved performance of SCC’s French services business.

In the UK, performance was again strong despite only a marginal increase in turnover – up 0.2% to £723.4m – with growth in operating profit of 5%, now at £15.4m. SCC UK grew its services business by 9% in the year, with data centre services turnover up 17% and annuity services in total growing again, by 9%.

No acquisitions were made in the financial year ended March 31, 2020, with investments made in the previous financial year becoming fully integrated into SCC over the past 12 months. Specialist AV services provider SCC AVS was integrated into the UK operations to better bring its services to the full range of SCC customers in the UK. This FY19 acquisition has continued to deliver value and is now making a strong operating profit.

France

At €1.7bn, SCC France represents 65% of the group’s turnover, with 9.2% growth year-on-year. This was once again achieved with higher turnover in both supply and services operations. SCC’s French supply business has a strong focus on the public sector, at over 60% of the product turnover, and on the software market which again showed strong growth in the year. This was also supported by growth in the SCC France services business, delivering €146m of turnover, up 30% year-on-year

Operating profit in France grew 14.5%, with significant progress made on the services transformation. Improvements in operational efficiency and contract management have been key elements in the programme of transformation in the services operation and have delivered significant improvements in margin and profitability.

Spain

In Spain, revenue growth of 15% in the year, to €93.8m, follows growth of 11% in the previous year as SCC Spain moves closer to the medium-term objective of €100m. Software growth was a key factor in the improved revenue performance this year, whilst growing volume in a competitive environment has enabled gross profit to be maintained and the business has streamlined its cost base to improve operating profits, now at €0.6m, up from €0.5m in FY19.

Global Delivery Centres

SCC’s global delivery centres (GDC) in Romania and Vietnam continue to support improved performance across SCC EMEA, providing 24x7 access to over 1,000 staff dedicated to flexible support solutions. Combined GDC turnover in the financial year ended March 31, 2020, was £21.6m, up 9.6% year-on-year, with operating profit at £1.3m.

In FY20, SCC enhanced its facilities in Iasi, Romania, moving to new modern offices designed to continue to attract and retain the best talent and our service levels are regularly recognised by important industry awards. In Vietnam, the operation established in 2017 has expanded rapidly providing technical and data centre infrastructure support expertise.

James Rigby, SCC EMEA CEO, said: “Understanding our customers’ needs continued as the cornerstone of our success and never before has this been so important. We are helping customers adapt to the current health and economic challenges, quickly deploying solutions to support workplace productivity and remote working.

“Investment in people and in technology remains essential to a healthy future and we have continued to invest for the long-term over the past year. Innovation in services is also important to our future and we continue to ensure we understand customers’ needs so we remain relevant to both vendors and customers. In response to recent events, new solutions in thermographic technology and document management solutions have supported customers alongside our specialisms in connectivity and remote working solutions.

“Our history is of adapting to change and we have successfully weathered economic headwinds in the past, leveraging our innovative spirit, and our strong relationships with customers and vendors. Our financial plans are in place, our financial position is secure, and we are well prepared for the coming year.”

Pictured: James Rigby