Award-winner in IT Europa European IT & Software Excellence Awards commits to further data centre investment SCC results for year ending 31st March 2016 show it well on the way in its transition to a managed services business. Over the last three years SCC has changed the mix of its UK business, with 27% of turnover now coming from services, up from 17% in 2013, and 66% of gross profit is now generated from services, up 14% from 2013.
The most notable growth in FY16 came from SCC’s Cloud Delivered Managed Services (CDMS) business. In FY16, SCC’s overall managed services turnover grew by £22m, driven principally by its Data Centre Services which saw turnover hit £43m, up 67% on FY15. This was supported by a number of key wins in the private and public sectors including: Konica Minolta, Next, Clarke Willmott, Ince & Co, Arnold Clarke, and NHS Blood and Transplant. In March SCC won Managed Services Solution of the Year at IT Europa’s European IT & Software Excellence Awards for its Data Centre migration project with WHSmith.
With its focus still firmly fixed on building long-term strategic partnerships, SCC’s Data Centre Services closed FY16 with an annualised revenue run rate of £52m, a 51% increase from the start of the year, of which 80% is repeatable income, it says, underpinning its strategy for annuity business and continued profitability. Services margins represent 66% of total margins – up from 63% in the prior year and 52% in 2013.
Since its acquisition by SCC in February 2014, M2, a Managed Print Services business, has enjoyed its best ever period of growth. SCC & M2 closed FY16 on £46m combined turnover, representing 21% turnover growth, and £4.6m combined EBITDA, up 48%. In the last year, M2 has grown to employ over 230 people and has 24,000 devices under management in the UK. FY16 also saw the expansion of M2’s regional office network to include: London, Bracknell, Bristol, Birmingham, Manchester, Leeds, and Scotland, and the creation of a dedicated public sector division.
SCC Chief Executive James Rigby (above) says “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.”
Looking ahead to FY17, SCC expects stable growth in product revenues and continuing growth in services revenues led by its CDMS proposition. Immediately following the close of FY16, SCC launched its Universal Cloud Gateway service, a cloud brokerage portal enabling customers to procure both public and SCC cloud solutions. SCC will continue to invest in Data Centre & cloud services, with two major Data Centre expansion projects already underway at its Birmingham and Fareham facilities. In 2016, SCC will increase rack capacity to more than 3,000, bringing total capacity growth over the last three years to over 300%.