Services and datacentres keep SCC growth coming

Services growth and a healthy increase in the datacentre business helped SCC deliver a seventh successive year of growth.

The largest privately owned reseller shared details of its fiscal year ended 31 March, with the firm managing to add to recent numbers from their publicly listed rivals to illustrate that those leading the industry are in robust shape.

SCC saw turnover improve year on year (YoY) by 5.5% across Europe, the Middle East and Africa (EMEA) to come in at £2.3bn, with earnings before interest and taxes (EBIT) up by 8.8% to £30.7m, which was delivered despite the impact in the past few weeks of its trading by the coronavirus.

Services increased by 9% in the UK and 11% across EMEA and was a major source of growth, along with the 17% yearly improvement in the UK datacentre operations.

Drilling down into the performance of the UK, the firm saw a slight rise in turnover, up 0.2% to £723.4m, and there was an increase in operating profit of 5%, coming in at £15.4m. The services business was up by 9%, datacentre by 17% and annuity services improved by 9%.

Unusually for SCC, the past fiscal year did not include any acquisitions in the UK, with the firm integrating some of its previous purchases, including specialist communications services player SCC AVS, which revealed that the business was now making a strong operational profit.

France was particularly strong, with the territory accounting for 67% of the group’s turnover, with 18% growth YoY to reach €1.7bn. A lot of the success was put down to the strength of the business in the public sector and increases in services growth.

Spain moved closer towards the firm’s target of hitting €100m revenues, with a 15% improvement helping it reach €93.8m. Software growth was highlighted as a key factor in the region’s performance, along with the payoff from efforts to streamline the cost base.

SCC also operates global delivery centres in Romania and Vietnam, and it saw those deliver a 9.6% increase in turnover to hit £21.6m, with operating profits of £1.3m. The past fiscal year saw the facilities in Romania enhanced to ensure it could deliver high levels of support, with similar investments maintained in the Vietnamese operation. 

James Rigby, SCC EMEA CEO, was understandably upbeat about the progress the business had made in the past fiscal year.

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

He added that the business had been making strategic investments over the course of FY20 to make sure it could maintain its momentum.

“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,” he said. “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.”

One of the recent examples of the firm reacting to an evolving situation involved its thermographic technology being deployed at airports to help identify those who were able to travel during the coronavirus.

“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,” said Rigby.