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The fiscal was another positive year for SCC – one that saw consolidated EBITDA up 4% to £32m.
SCC EMEA grew 8% in FY16, with turnover reaching €2.1billion, and consolidated EBITDA up 4% to £32m. The UK and France business generated over 96% of total turnover – with France marginally larger at 54% as is consistent with results in recent years and projected trends for the future.
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.
FY16 was another successful year in terms of our strategic plan, and our strong financial performance is a direct result of our clear business vision, all geared towards helping our customers make the transition to the new world of IT.
While overall turnover showed a marginal decline of 2% in the year ending March 31st 2016, services turnover grew 12% to £177m as we continue to focus on improved margin and developing long-term relationships with customers, based on annuity revenue.
The mix of the UK business continued to change throughout FY16. While high-turnover/low-margin product revenue decreased by £35m, our total turnover now comprises 27% of services business, up from 17% in 2013, and 66% of gross profit is now generated from services, up 14% from 2013.
As expected, the standout performer in terms of growth last year was our Cloud Delivered Managed Services (CDMS) business. As our total investment in CDMS surpassed £60m, combined services revenues totalled £203m.
SCC France enjoyed another year of growth across its 23 locations and 2,000 customer focused employees.
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.
During the last year we have extended our support to many new customers including BNP Paribas, AXA, Societe Generale, Air France, SNCF, Thales and EADS.
Our Spanish business once again saw growth in both turnover and profit in FY16.
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 150 people across six locations: Madrid, Barcelona, Bilbao, Pamplona, Valencia, and Seville. SCC Spain has established itself as a top three Corporate IT Services Provider & Reseller, operating as Specialist Computer Centres S.L and Specialist Computer Centres Services S.L.
In Romania we now employ 1,000 multi-lingual staff based in three 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.
In FY17, we expect some growth from stable product revenues and continued strong growth in services, with the company’s Cloud Delivered Managed Services set to continue its growth next year.
The group has strong operations in France and the UK, both of which continue to generate cash and profit. We have a clear strategy in each territory, focused on achievable growth in their services businesses. Our annuity business continues to grow and with the significant progress of our data centre operations we look forward to 2017 with an expectation of continued growth in profitability.