Europe’s largest independent IT Group SCC, part of the Stratford-upon-Avon based Rigby Group, has announced record earnings for the sixth consecutive year driven, it says, by continued demand from businesses seeking outsourced and cost-effective solutions for cloud and digital services.
Full year results for the financial year ending 31 March 2019, for the SCC EMEA Group, showed revenues reaching a record £2.2 billion and EBIT of £28.2 million – a 1.7 per cent growth year-on-year. The group has made significant investment in its own IT systems over the past 12 months to ensure capability to meet future customer demand.
FY19 highlights and outlook:
- £2.2bn turnover, up 18 per cent across EMEA.
- EBIT up £28.2m up 1.7 per cen.
- Operating profit of £18.7 million for the UK business (before interest and tax), up 16.9 per cent.
- Acquisitions of AVS (an AV Specialist) and Hobs Onsite (a Managed Print Specialist)
The group’s record level of turnover reflects strong performance in the product divisions in France and the UK, with growth of 20 per cent and 23 per cent respectively. In all territories, services turnover also grew during the year to £337 million, a growth of 4 per cent.
France, at €1.5bn (euro), represented 65 per cent of group turnover with growth of 18 per cent on last year. The UK represents 65 per cent of operating profit delivering £18.7 million up 16.9 per cent on the prior year. France saw a slight reduction in operating profit of 0.3 per cent driven by margin pressure and a challenging environment in the services operations.
Turnover in Spain has increased 11.4 per cent year-on-year, predominantly driven by stronger product sales though services also grew by seven per cent.
The group’s Global Delivery Centres in the UK, France, Romania and Vietnam continued to grow as investment continued in capacity, and capability in support of clients.
The group’s long-term IT investment programme is ongoin to support customers and internal operations delivering better service, information and efficiency opportunities.
James Rigby, SCC Chief Executive, said: “We are very pleased to achieve another record year of growth and profitability. All companies today are digital and operate in digital environments and this presents great opportunities for us.
“During the year, we have significantly invested across all of our capital programmes. Re-investing profits back into the business is a key part of our strategy to ensure that the group is able to meet the needs of our customers and remains relevant for the future.
“Funds are available to support continued investment programmes, organic growth and targeted acquisition opportunities. We have a strong and resilient business based on long-term relationships and a sound strategy which is proving successful in growing profitability.”