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SCC completes three year plan growing services business

SCC has given an insight into the changing nature of its business with its three year plan to grow services having been achieved

SCC is now gaining a third of its revenues from services and is stating that it has achieved its ambitions to rebalance the business over the last three years.

The channel player reported a 8.7% increase in turnover across EMEA to £1.7bn with the UK enjoying a 10% revenue improvement to hit £194m for the firm's full fiscal year results.

The privately owned form has been going through a transition to increase its services revenue and position the firm as a provider of cloud, data centre, managed services and print.

SCC also used the glimpse into its financial affairs to talk up the strength of its relationships with customers, noting that it had kept existing contracts going with the likes of the Department for Work and Pensions and Ladbrokes but had also added some fresh names to the roster. The channel player now includes Liverpool Victoria Insurance and Skipton Building Society among those it started working with in the last fiscal year.

The revenues that now come through the services side has hit 31%, £194m, which is up by 10% on the previous year, and data centre services drove a lot of that improvement with a 29% y-o-y improvement to £56m turnover.

“We’ve had an exceptional year to close off our three year plan of building a more agile and focused business delivering the very best services to our customers," said James Rigby, SCC chief executive. “Our future is as an IT Services business, delivering solutions around data, cloud and cognitive computing supported by our next generation Global Delivery Centres across the world”

He added that the strategy would continue with the work done over the last three years filtering into changing the business model further.

“Growth through our Services business will continue as this gives us recurring revenues that enable us to invest in the right areas to support our customers now and in the future," he said.

FY17 highlights

•    £1.7bn turnover, up 8.7% across EMEA
•    EBIT up 39% to £25m (EBITDA at £41m up 26%) across EMEA
•     Record earnings of £17.2m for the UK business (before interest and tax)
•    UK Services turnover up 10% to £194m
•    UK Data Centre Services revenues up 29% to £56m
•    Services business now represents over 31% of UK revenues

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