SCC-UK-Financials-2015-275x363Foreword by James Rigby – Chief Executive

People do business. We make it work.

This fiscal was another positive year for SCC – one that saw the 3-5 year strategic transition deliver 87% growth in Data Centre Services.

SCC’s transition from a product reseller business to IT services business has seen very positive results this year.

Services revenue reached £160m, up 21% and accounting for 24% of its total income.

Key to SCC EMEA’s strategy to reach £50m EBITDA by FY17 is its Services division, which saw an overall GP growth of 22% in FY15.

This was supported by key new business wins with Kier Group, Samworth Brothers, Grafton Group, McDonald Hotels, United Utilities, Department for Work and Pensions, and WHSmith.

SCC’s Professional Services business grew 11% versus last year, with Managed Services up 13% and growth from the new Flexible Resourcing service.

As SCC continues to invest heavily in its Data Centre Services (DCS) most recently taking a majority share in Fluidata, the Data Delivery Network it enjoyed another year of accelerated growth, up 87% on FY14.

DCS closes the year on £26m, with an Annualised Run Rate (ARR) of £34m. March 2015 alone saw Monthly Recurring Revenue (MRR) increase 100% compared to last year.

As SCC’s Cloud platforms enter maturity, DCS GP closed the year at 44% from 25%, with ARR closing on £29.4m, 96% ahead of the previous year.

Monthly DCS EBITDA closes 220% ahead of FY14, at an annualised EBITDA of £12m (pre-central costs).

Following SCC¹s acquisition of SSE¹s Tier 3+ Data Centre in Fareham and our recent 2nd phase 360 rack Birmingham investment, our total rack capacity is over 1,800 and 14Mv of power, the business closes the year on 67% occupancy and annual rack growth of 145%.

Looking ahead to FY16 for the combined UK business, turnover for Services business is expected to top £200m with Cloud Services set to close next March on £55m and an ARR of £70m.

EBITDA is estimated to grow 30% to £25m, with stable Product revenues of £500m and overall revenues of £700m.

In Europe, SCC France recorded its best year of EBITDA for a second consecutive year, up 5.4% to £15.7m. Overall revenue in France closed on £812m a 3% improvement in constant currency terms.

SCC Spain increased its revenue by £8m to £48m versus FY14 a constant currency increase of 30%, with EBITDA of £0.6m, up 123%, as it continues its own transition to a services led business.

And SCC Romania saw revenues of £9.2m, while the business delivered a 103% increase of EBITDA to £1.2m. During the year, headcount grew to 711 people at the facilities in Iasi and Bacau.

During FY16, it is expected to grow to more than 1,200 people.

SCC EMEA closed the year on £1.5bn revenue and EBITDA of £32m; an increase of 10% over the prior year.

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