Sales struggle as group diversifies and IT moves to cloud services among other areas
Rigby Group’s IT services arm posted stagnant sales for the year ended 31 March. The group includes six core divisions of technology, airports, hotels, real estate, financial services and aviation.
While total group revenues jumped 10.8 percent to £1.79 billion over the year, the SCC EMEA IT business generated revenues of £1.55 billion – down from £1.56 billion in 2015. EBITDA for the IT division also slumped 5.1 percent to £32.8 million (£34.6 million last time).
SCC Vietnam launched in 2016, based in Ho Chi Minh City, delivering two main activities – providing level 3 and 4 infrastructure support to customers, and the creation of an Offshore Development Centre to accelerate the development of custom applications.
Steven Rigby, group chief operating officer, said: “2016 marks the Rigby Group’s transformation from an organisation focused almost entirely on technology services to a diverse vibrant group showing profitable growth across each of its divisions.”
SCC UK 2016 revenue was £653 million – down 1 percent. Total services revenues reached £177 million, up 11 percent and accounting for 27 percent of total UK revenues (17 percent in 2013).
Data centre services revenues were up 67 percent to £43 million. There are two data centre expansion projects underway in Birmingham and Fareham.