Andrews Sykes posts good growth for revenue, earnings

Air conditioning, heating and pump hire specialist Andrews Sykes reported revenue of £75.22m from continuing operations in its final results on Thursday, up from £67.26m year-on-year.

The AIM-traded firm said adjusted EBITDA totalled £28.95m from continuing operations in the 12 months ended 31 December, rising from £26.09m, while operating profit improved to £20.07m from £16.39m.

Net cash inflow from operating activities improved marginally, to £23.59m from £22.26m, while net funds at period end totalled £16.51m, rising from £7.67m.

Basic earnings per share came in at 36.85p, up from 30.87p.

The board proposed a final dividend of 12.5p per share, up from 11.5p for 2020, while interim and final dividends paid per share fell to 23.4p from 46.1p.

“Cost control, cash and working capital management continue to be priorities for the group with stocks reduced by £2.4m during the year,” said chairman Jacques-Gaston Murray.

“Capital expenditure is concentrated on assets with strong returns - in total £5m was invested in the hire fleet this year.”

In addition, Murray said the group invested a further £0.4m in property, plant and equipment.

“These actions will ensure that the group's infrastructure and revenue generating assets are sufficient to support future growth and profitability.

“Hire fleet utilisation, condition and availability continue to be the subjects of management focus.”

At 1204 BST, shares in Andrews Sykes Group were up 2.69% at 518.6p.