Olivier Le Moal - Fotolia
SCC today announced its financial results for year ending 31st March 2016, and while turnover was down by a hair, strong earnings suggested that the shift to managed services is starting to pay dividends.
UK revenue was down by just over 1% to £653m. However, with improved margins coming from the expansion of the services business, the reseller reported EBITDA of £24.9m, up 29% year-on-year. Services-based turnover increased 11% to £177m.
SCC has been rapidly shifting all of its eggs into the managed service and solutions basket. Services now accounts for 27% of total turnover and represent 66% of total margins.
“We’ve had another strong financial performance in the areas identified in our business strategy as key to SCC’s long-term success,” said SCC chief exec James Rigby. “We continued to make investments throughout FY16 in additional capability, improved facilities and skilled people – all geared towards delivering the very best service to our customers.”
“Our services business has grown significantly over the past three years and the forecast is for that to continue. And the opportunity for customers, particularly in the mid-market space, to grow with us has never been so large with the completion of our Cloud Delivered Managed Services proposition in FY16.”
The [self-proclaimed] largest independent IT company in Europe also announced a new global delivery centre (GDC) in Vietnam.
SCC Vietnam, headquartered in Ho Chi Minh City, will provide level three and four infrastructure support to customers. The firm said that the delivery centre will also house an ‘Offshore Development Centre’ in order to accelerate the development of custom applications.
Commenting on the new delivery centre, Rigby said: “It’s an exciting time for SCC as we look further East to a location that combines a sufficient time difference with widely-available technical skills. SCC Vietnam will be incorporated by August 2016 and we are aiming for an initial headcount of around 50.”
“Vietnam is a country of over 90 million people with an average age of 30. It has a high quality education system, similar to Romania, with over 300 IT-only universities. English is widely spoken to a high standard and the time difference of London+7 is ideal for 24X7 customer support.”