Andrews Sykes hikes dividend after solid 2022 performance

Andrews Sykes Group reported revenue of £83.01m in its preliminary results for 2022 on Wednesday, up from £75.22m in 2021.

The AIM-traded firm said its adjusted EBITDA from continuing operations rose to £30.62m, from £28.95m in the prior year, while its operating profit totalled £21.53m, compared to £20.07m year-on-year.

Profit after tax for the financial period was £17.02m, an increase from £15.54m, while net cash inflow from operating activities improved to £28.46m from £23.59m.

In terms of net funds, Andrews Sykes Group reported £25.9m at the end of 2022, compared to £16.51m a year earlier.

The company also paid out a total of £17.29m in interim, special and final dividends in 2022, compared to £9.87m in 2021.

Basic earnings per share came in at 40.36p, up from 36.85p in 2021, while the interim, special and final dividends paid per share rocketed to 41p from 23.4p.

The board proposed a final dividend per share of 14p, an increase from 12.5p in 2021.

“Andrews Sykes' trading has been robust, with record revenues and profits being delivered by several of our subsidiaries and we are pleased to report that the group as a whole has delivered a record level of profitability during 2022,” said chairman Jacques-Gaston Murray.

“We are thankful and proud of our team members who have made this possible by continuing to provide our customers with an essential 24-hour service offering.

“The group has faced many challenges over the past few years, and this year has been no different with Andrews Sykes not being immune from the well-publicised inflationary pressures that are impacting the UK and European economies.”

Murray said the company’s “strong relationships” with customers and “long-standing relationships” with key suppliers, coupled with its “highly experienced” management team, were allowing it to navigate its way through the tougher economic circumstances.

“We are encouraged by how the business has consistently adapted to overcome operational issues and take advantage of new revenue opportunities.

“The group was well placed to take advantage of the record summer temperatures seen this year and our core traditional market of ‘comfort’ cooling had a stand out year as a result.”

Jacques-Gaston Murray said the year was again supported by another strong year for the company’s UK pump hire business, continuing its recent history of setting record levels of revenue yearly.

“Trading momentum has continued into the current year, with overall performance in the year to date in line with the board's expectations.

“The group is confident in its core markets, its revenues and its profits.”

At 1055 BST, shares in Andrews Sykes Group were up 3.83% at 516.55p.

Reporting by Josh White for Sharecast.com.