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FY17 was a record year for SCC – one that saw EBIT up 39% to £25m (EBITDA at £41m up 26%) across EMEA.
SCC witnessed an exceptional financial year – delivering record earnings of £25m (up 39%) across its EMEA businesses.
SCC EMEA grew 8.7% in FY17, with turnover reaching £1.7billion, and EBITDA up 26% to £41m. Our services business has now grown by 16% to £313m and at 19% has grown its share of our turnover from 17.4% in the prior year. The Services business now represents over 31% of UK revenues.
Early in 2017, SCC opened a new Global Delivery Centre in Vietnam to complement its near-shore customer support operations in Romania. The new centre offers Data Centre infrastructure support for round-the-clock customer service and access to additional technical skills, as well as software development capabilities.
The year was rounded off with a number of key industry awards underlining SCC’s dedication to delivering outstanding IT services. These awards included winning the coveted Service Desk Institute’s Best Managed Service Desk of the Year, PIN’s Outsourcing Company of the Year along with IBM’s UK Services Partner of the Year and Cisco’s Public Sector Partner of the Year.
SCC UK (includes M2)
As results have proved in recent years, the investments SCC has made in its services capabilities are continuing to position us well in the market and attract the level of business that we aspire to.
The year saw SCC achieve its three year plan in the UK to grow a world-class services business across cloud, data centre services, managed services and managed print; services revenues now account for over 31% of revenues at £194m – an increase of 10% on the previous year.
Data Centre Services turned over £56m in the year – up 29% – as SCC completed its current investment programme, bringing additional capacity to its UK-wide network.
New customers also added to SCC’s growth, securing new contracts with Grafton Group, Interserve, Liverpool Victoria Insurance, Secure Trust Bank and Skipton Building Society.
SCC France enjoyed another year of growth across its 23 locations and 2,000 customer focused employees.
Our French operation, with the largest share of group turnover, grew by 22% in sterling terms and 6% on a constant currency basis. Our UK operation declined in turnover as Specialist Computer Centres plc continued to move away from lower margin product business whilst growing the services business, the impact of which was markedly improved EBIT. In Spain, turnover grew by 7% to €68m.
Our business delivers solutions in Enterprise Infrastructure, Outsourcing and Maintenance, Desktop & Workplace, Software and Software Asset Management, Network and Security, and Datacentre Services. In addition, we operate dedicated businesses, providing customer Financing Solutions and Recycling Services.
We deliver technology solutions and services to leading organisations in both the commercial and public sectors and have many high profile customers in France including Safran, CEGID, CSC, Orange, La Poste, Peugeot, UGAP and the Ministeries de la Defence, Interieur and Finance.
Over 70% of the turnover comes from product sales, however as our services business grows the mix is starting to change. Of the €4.6m turnover growth in the year, 70% came from services which is now over €17m for the last financial year.
Gross margins declined slightly due to competitive pressure, however tight overhead control minimised impact on EBIT returns.
Working with leading public and commercial sector organisations, we specialise in the delivery of advanced managed services and the implementation of new technology for business benefit, to help customers reduce costs and improve performance.
Our Spanish operations employ more than 250 people across six locations: Madrid, Barcelona, Bilbao, Pamplona, Valencia, and Seville. SCC Spain has established itself as a top three Corporate IT Services Provider and Reseller, operating as Specialist Computer Centres S.L and Specialist Computer Centres Services S.L.
In Romania we now employ more than 1,000 multi-lingual staff based in two locations, providing high quality cost effective support solutions for our operating companies and for their customers in other territories.
Established in 2006 with less than 50 staff, the business has grown significantly over the past 10 years and was named Outsourcing Company of the Year at the Prestigious Regional IT and Outsourcing Awards (PIN 2016). PIN 2016 recognises IT and Outsourcing companies, universities, student associations and related services including training recruitment and foreign language courses.
The 2016 Romanian Outsourcing Awards for Excellence also recognised our success naming SCC Romania “SSC Company of the Year”, the highest level of award for shared services operations in Romania.
Our new operation in Ho Chi Minh City, Vietnam provides access to the skills we need to support our customers most technical requirements.
In Vietnam we will extend our internal capabilities to the development of internal software solutions to support our operations in the UK and France alongside of our customer support services.
Our strategy of services revenue growth has been successful and we will continue with this approach whilst not neglecting to provide our customers with excellence in the supply of products. We expect to continue to grow our services business in all territories over the coming year.
Where opportunities to invest or acquire other businesses arise we will grow our business if the strategic fit and price is right, focusing on earnings enhancement in preference to revenue growth.
Our marketplace is constantly changing and economic uncertainties exist, however we have a clear strategy and a focused and agile business which gives us confidence in a strong financial performance over the coming year.