Rigby Group reports record performance in FY23

Rigby Group (the Group) has announced its audited results for the year ended 31 March 2023 (FY23), revealing a record financial performance

Consolidated group turnover reached £3.9 billion, 16% higher than the previous financial year (FY22), with adjusted operating profit more than doubling to £163.2 million (FY22, £76.6m), boosted by the sale of cyber security and networking distribution business Nuvias during the year.

Technology is the cornerstone of Rigby Group, with SCC continuing as the principal driver of growth as the Group seeks to create long-term value as a technology focussed business operator and investor. The Group’s newest division, Rigby Technology Investments is focusing on investments in new technology related businesses outside of SCC operations. Elsewhere, the Group’s Airports division continued its recovery from the pandemic, with revenues of £94m representing a growth of 21% on the prior year.

FY23 highlights 

• Group turnover: £3.893bn (+16%; FY22, £3.364bn)
• Adjusted operating profit: £163.2m (+113%; FY22, £76.6m)
• Group adjusted profit*: £195.2m (+83%; FY22, £106.6m)
• Group net assets: £505.3m (+39%; FY22, £362.7m)
• EBITDA: £192.6m (+85%; FY22, £104.3m)
• The Group continues to be active in the M&A markets across its portfolio interests.

*Group adjusted profit represents Adjusted Operating profit adjusted for depreciation, amortisation and acquisition earnout costs accrued in the year

SCC

FY23 was another record year for SCC, with 23% growth in revenues which now exceed £3.2bn, and 7% growth in operating profit for the group to £68.9m, largely driven by a strong performance in France, where revenues are up 26% to over €2.6bn and the business delivered a 42% growth in operating profit to €66.2m.

In the UK, revenues were up 13% to £877m. The acquisition of Visavvi in May 2022 contributed £23m of revenue and delivered £0.3m of operating profit in 11 months. In March 2023, SCC UK acquired Vohkus Limited, a UK-focused value- added reseller, providing exciting opportunities to expand SCC’s capabilities and customer offerings, and presenting an additional platform for growth in the UK.

SCC Spain, after a record in FY22, delivered another record year with 22% growth in turnover to €107m. Operating profit of €3.2m is a 64% improvement over the prior year and has been delivered by growth in both product and services.

• Turnover: £3.287bn (+23%; FY22, £2.661bn)
• Operating profit: £68.9m (+7%; FY22, £64.5m)

Rigby Technology Investments (RTI)

RTI is a new division of Rigby Group, holding minority and majority investments in three technology businesses: Infinigate, CloudClevr, and Nuvias Unified Communications.

RTI will reinvest in new technology related businesses where those businesses do not form part of the Group’s long-term SCC operations. The Group generated cash in the year from the disposal of the cyber security distributor Nuvias, which is being reinvested in RTI. Prior to its sale, Nuvias generated turnover of £346.3m and EBITDA of £5.9m which was up by £3.5m (145%) compared to the equivalent period in the prior year. The sale of Nuvias gave rise to a gain on disposal of £104m. 

Through its RTI division, the Group has a trade investment in Infinigate, a Zurich head-quartered cyber security distributor, with revenues of over €2bn and in which RTI is the second largest investor. Infinigate operates from 29 countries and is Europe’s second largest distributor of cyber security technology. As a minority investor, the Group does not include the revenue or operating profit of the Infinigate investment in its financial results.

• Turnover: £110.3m (+2%; FY22, £108.4m)
• Operating loss: £(5.6)m (-364%; FY22, £2.1m)

Airports

Regional & City Airports (RCA) is a leading UK regional airport operator. RCA owns Bournemouth Airport, Coventry Airport, Exeter Airport and Norwich Airport, and operates Solent Airport Daedalus on behalf of Fareham Borough Council. RCA also operates XLR Executive Jet Centres (XLR), the renowned boutique FBO business. XLR has centres at Birmingham, Bournemouth, Exeter and Liverpool airports.

RCA continued to recover during this financial year with full year revenues of £94m representing a growth of 21% on the prior year. Operating profit of £2.9m is down 64% on last year which is mainly due to the impact of property revaluations in the current year and the non-repeat of one-off profits in the prior year.

RCA recorded EBITDA of £10m, which was up 5% on the prior year. Properties were externally revalued downwards by £3.6m compared to £1.2m in the prior year, reflecting the commercial property market at the close of the financial year.

Passenger numbers during the year have not yet returned to pre-pandemic levels although RCA expects significant improvements in the coming year as travel patterns normalise. The Group expects year on year growth, as increased passenger numbers and cargo volumes will drive improved financial performance in FY24.

• Turnover: £94m (+22%; FY22, £77.4m)
• Operating profit: £2.9m (-64%; FY22, £8.2m)

Hotels

The Eden Hotel Collection (EHC) is a well-established and widely recognised award-winning luxury hotel brand within the UK. In FY23, Rigby Group began a significant investment programme across all of EHC’s hotels to align with its strategic objectives to offer luxury boutique hotel experiences.

This financial year has seen revenues grow by 3% to £16.7m, though this did not translate into increased profitability versus the previous year, with operating loss for the year of £(2.3)m being 312% down.

Economic conditions for the UK hospitality sector combined with wider macroeconomic factors such as domestic fuel increases, food inflation and latterly interest rate rises, have affected confidence and tempered demand in the market, particularly in the corporate business market.

• Turnover: £16.7m (+3%; FY22, £16.2m)
• Operating loss: £(2.3)m (-312%; FY22, £1.1m)

Rigby Real Estate (RRE)

RRE is the Group’s commercial real estate business whose principal activities continue to be property investment, management, acquisition, and development across the Group’s property portfolio.

The resilience of the property portfolio over the past few years has continued, with very low levels of customer turnover resulting in year-on-year revenue remaining stable at £3.2m.

Operating profit includes adverse property revaluations of £0.4m (prior year gain of £1.0m) reflecting the current market for commercial property at the year end. Excluding these revaluation movements, operating profit has increased by 12% due to value added services provided by RRE across the Rigby Group portfolio.

• Turnover: £3.2m (FY22, £3.2m)
• Operating profit: £1.7m (-41%; FY22, £2.9m)

Allect and Head Office Operations

Allect is Rigby Group’s international design business which brings together development management, architecture, interior design, construction, private client services, and a creative division. The division trades under three internationally recognised brands: Rigby & Rigby, Helen Green Design and Lawson Robb Design. 

Allect enjoyed a strong year, with a 10.5% growth in revenue. Despite the continued focus on growing margin by improving efficiency and by providing an end-to-end service, well publicised cost increases resulted in gross profit growth being tempered to 2.8%.

Head Office Operations also comprises Rigby Group’s former aviation division, until its disposal of British International Helicopters (BIH) to Bristow Helicopters Limited in August 2022.

• Turnover: £29.4m (+19%; FY22, £24.8m)
• Operating loss: £(7.5)m (-25%; FY22, £(6)m)

Steve Rigby, Co-CEO of Rigby Group, said:

“To achieve our best ever results as the family business approaches our 50^th year in 2025 is fantastic.  My father, Sir Peter Rigby, started the business in 1975 and to see where we are today is amazing. Today, we have three generations of family involved in our business, and I believe it is the combination of our ages, ability and ambition that have led us to this point, and of course the 8,500 colleagues who help us achieve great things for our customers and partners every day. Looking ahead, these results put us in an excellent position to realise our future investment ambitions and plans.” 

James Rigby, Co-CEO of Rigby Group and EMEA CEO of SCC, added:

“Technology is the driving force behind Rigby Group and sits at the heart of our investment strategy. Being family-owned, we are able to remain agile and throughout FY23 we have continued to take decisive action and deliver strategic initiatives that align with our long-term vision, resulting in another record year. This will remain the case as we look ahead to 2024 and beyond, and we remain firmly committed to investing in our business, our people, and new technologies for strategic and sustainable growth.”

Sir Peter Rigby, Founder and Chairman of Rigby Group, commented:

“I am delighted to once again be presenting the best results in our Group’s history for the fiscal year 2023. Our performance right across the group is testament to an organisation that puts people at the heart of all we do, and continually reinvests in order to innovate and grow. We have continued to develop innovative new business initiatives and investment opportunities, and each of our core divisions continue to make strategic investments. My family and myself remain committed to the Rigby Group for the long term – with technology at its heart – and maintain our core principles of hard work, entrepreneurship, good governance and philanthropy.”

Download a full copy of the Rigby Group FY23 Report and Accounts here.