REG - Andrews Sykes Group - Final Results for the Year Ended 31 December 2025
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RNS Number : 8676D Andrews Sykes Group PLC 12 May 2026
12 May 2026
ANDREWS SYKES GROUP PLC
("Andrews Sykes" or "the Company" or "the Group")
Final Results
for the year ended 31 December 2025
Summary of Results
Year ended Year ended
31 December
31 December
2025
2024
£000 £000
Revenue from continuing operations 76,500 75,942
Adjusted EBITDA* from continuing operations 30,156 30,933
Operating profit 23,457 23,187
Profit after tax for the financial period 18,085 16,798
Net cash inflow from operating activities 22,843 20,323
Net funds 13,173 7,152
Cash and cash equivalents 28,386 23,181
Total interim and final dividends paid 10,841 10,841
(pence) (pence)
Basic earnings per share 43.20 40.13
Interim and final dividends paid per share 25.90 25.90
Proposed final dividend per share 14.00 14.00
* Earnings before interest, taxation, depreciation, profit on the sale of land
and buildings and plant and equipment and amortisation
Enquiries
Andrews Sykes Group plc T: +44 (0)1902 328 700
Carl Webb, Group Managing Director
Ian Poole, Group Chief Financial Officer and Company Secretary
Houlihan Lokey UK Limited (Nominated Advisor) T: +44 (0)20 7389 3355
Tim Richardson
CHAIRMAN'S STATEMENT
Overview and outlook
Andrews Sykes' overall trading remained solid during 2025 and we are pleased
to report that the Group as a whole has again delivered an increased operating
profit. We are, as always, thankful for and proud of our team members who have
made this possible by continuing to provide our customers with an essential 24
hour service offering.
However, 2025 was not without its challenges. Revenue opportunities in our UK
business were constrained by the local macro-economic environment and, in
particular impacting demand for pumps, by summer drought conditions in many
areas as England experienced its driest Spring in 130 years. The Group's
businesses in Europe and the Middle East both recorded robust growth,
mitigating the revenue decline in the UK, and highlighting the strength of our
geographical diversification. This, along with our long-standing commitment to
tight cost control and leveraging our strong relationships with customers, in
particular our key accounts, allowed the Group to increase its overall
revenues and operating profit over the previous year.
The year marked a key milestones for our Group in the Middle East. We formally
incorporated a new subsidiary in Saudi Arabia in order to take advantage of
the well publicised construction boom resulting from that country's efforts to
diversify its economy. Our new subsidiary opened in early 2025 and is being
managed by our UAE management team which has done such a good job in turning
around our existing business in the Middle East. Whilst generating revenue of
only £0.1 million during 2025, we believe our exposure to this market
represents a significant growth opportunity in 2026 and beyond.
Andrews Air Conditioning & Refrigeration Ltd., our fixed air conditioning
installation business in the UK, ceased trading in the second half of the
year. After experiencing declining revenues and low profitability for several
years, management decided that the resources required for that business are
better utilised on supporting the growing areas of our Group.
We remain encouraged by how our highly experienced management team has
consistently adapted the Group to overcome market and operational issues and
take advantage of new revenue opportunities.
Positive trading momentum experience towards the end of 2025 has continued
into the current financial year, with overall performance in the year to date
in line with the Board's expectations. Whilst the situation in the Middle East
has not currently had a significant impact on trading activities in that
region, the Board continues to monitor the situation and will respond to any
impact it may have on operations. The Group is confident in its core markets,
its revenues and its profits.
2025 trading summary
The Group's revenue for the year ended 31 December 2025 was £76.5 million, an
increase of £0.6 million, or 0.7%, compared with last year. Excluding the
results of the now discontinued UK fixed air conditioning business, underlying
revenues increased from £74.4 million to £75.6 million, an increase of £1.2
million or 1.6%. Operating profit increased by 1.2%, or £0.3 million, to
£23.5 million from £23.2 million last year. Operating profit in 2025 was
enhanced by a £1.1 million profit on the disposal of a property in the UK,
with the funds being re-invested into a new £2.1 million depot located in the
Northwest of the UK. Despite the difficult year experienced by the UK
business, this large reinvestment demonstrates our long-term confidence in the
UK market. Operating profit in the prior year was enhanced by a net £0.8
million reduction in provisions due to commercial negotiations for the early
exit of previously vacated lease properties. In the year under review, net
provisions increased by £0.6 million. Excluding both the impact of the
one-off profit on disposal of property and the impact of provision movements,
operating profit increased from £22.4 million in 2024 to £23.0 million in
2025, an increase reflective of the increase in underlying revenues. Revenue
for the second half of the year increased by 2.7%, or £1.0 million, on the
corresponding period last year and underpins the solid progress made during
the current year to date.
Decreasing interest rates in the UK and Europe over 2025 contributed to
decreased returns on cash reserves with net finance income remaining flat at
nil in both the year under review and the prior year. Profit before taxation
was £23.4 million (2024: £23.2 million) and profit after taxation was £18.1
million (2024: £16.8 million).
The Group has reported an increase in basic earnings per share of 3.07p, or
7.7%, from 40.13p in 2024 to 43.20p in 2025, a record result for the Group.
This is mainly attributable to the above mentioned increase in the Group's
overall operating profit and a reduced overall tax charge.
The Group continues to generate strong net cash inflows. Net cash inflow from
operating activities was £22.8 million compared with £20.3 million last
year.
Cost control, cash generation and working capital management continue to be
priorities for the Group. Overdue debt has been decreased significantly during
the year with debt not past due accounting for 79% of total receivables in the
year under review versus 49% in the prior year. Capital expenditure is
concentrated on assets with strong returns; in total £5.5 million was
invested in the hire fleet during the year. In addition, the Group invested a
further £2.7 million in property, plant and equipment. These actions will
ensure that the Group's infrastructure and revenue generating assets are
sufficient to support anticipated future growth and profitability. Hire fleet
utilisation, condition and availability continue to be the subjects of
management focus.
Operating performance
The following table splits the results between the first and second half
years:
Revenue Operating profit
£'000 £'000
1st half 2025 37,944 10,003
1st half 2024 38,387 9,726
2nd half 2025 38,556 13,454
2nd half 2024 37,555 13,461
Total 2025 76,500 23,457
Total 2024 75,942 23,187
The above table reflects the trading performance of the Group as the year
progressed, with second half revenues increasing £1.0 million on prior year
and £0.6 million on first half revenues.
Revenue at our main UK business decreased to £39.4 million from £43.1
million last year, with operating profit decreasing from £15.4 million to
£11.6 million. These results were constrained by the local macro-economic
environment and, in particular impacting demand for pumps, summer drought
conditions in many areas as England experienced its driest Spring in 130
years. Heating hire was down 10.2% on the prior year. Pump hire declined 10.7%
on the prior year, ending seven consecutive years of growth.
Revenue and operating profit at our European businesses reached record levels
in 2025. Revenue increased to £26.8 million from £23.6 million last year and
operating profit increasing from £8.2 million to £11.7 million in 2025.
Strong summer temperatures increased revenue opportunities in both Northern
and Southern Europe, with air conditioning revenues 52.3% higher in Italy and
33.1% higher in the Netherlands as compared to 2024. European revenue growth
was primarily driven by £2.0 million growth in the Netherlands and £0.7
million growth in Italy.
The revenue of our hire and sales business in the Middle East increased to
£9.4 million from £7.7 million last year, and operating profit (including a
£0.2 million first year loss at our new operation in Saudi Arabia) increased
to £1.5 million from £1.1 million last year. The result continues the strong
turnaround driven by local management since their appointment in the summer of
2023. The increased operating profit is reflective of the increased revenue
with expected credit losses remaining under control. Management are
confident of this upwards trend continuing.
Our fixed installation and maintenance business in the UK saw a decrease in
revenue to £0.9 million from £1.6 million last year, resulting from the
decision to cease trading in the second half of the year. An operating profit
of £0.1 million for the year under review reflects the successful cessation
of trading and collection of outstanding debts resulting in the modest
unwinding of various balance sheet accruals.
Central overheads remain under control and were flat at £1.5 million in the
year under review.
Profit for the financial year
Profit before tax was £23.4 million this year compared with £23.2 million
last year; an increase of £0.2 million. This is largely attributable to the
£0.2 million increase in operating profit, partially reduced by lower levels
of interest receivable.
Tax charges for the year decreased to £5.3 million from £6.4 million in
2024. The overall effective tax rate decreased from 27.6% in 2024 to 22.8%
this year, primarily driven by reduced UK tax as a result of changes to the UK
owned property portfolio and an increased amount of operating profit being
generated in lower tax jurisdictions. Profit for the financial year was £18.1
million compared with £16.8 million last year.
Defined benefit pension scheme
As reported in previous years, the Company has successfully de-risked its
defined benefit scheme by completing a buy-in deal. This transaction means
that future liabilities are fully de-risked and the Company will not be
required to contribute significant cash payments into the pension scheme to
fund adverse liability movements. As such no cash contributions into the
scheme were made during 2025. The defined benefit pension scheme surplus after
the application of an asset restriction has decreased from £1.8 million as at
31 December 2024 to £1.5 million at 31 December 2025, primarily as a result
of experience adjustments associated with work undertaken in relation to the
buy-in deal during the year under review.
Equity dividends
The Company paid two dividends during the year. On 20 June 2025, a final
dividend for the year ended 31 December 2024 of 14.0 pence per ordinary share
was paid. This was followed on 31 October 2025 by an interim dividend for 2025
of 11.9 pence per ordinary share. Therefore, during 2025, a total of £10.8
million in cash dividends was returned to our ordinary shareholders.
The Board has decided to propose a final dividend for the year ended 31
December 2025 of 14.0 pence per ordinary share. If approved at the forthcoming
Annual General Meeting, this dividend, which in total amounts to £5.9
million, will be paid on 19 June 2026 to shareholders on the register as at 22
May 2026.
Share buybacks
As at 11 May 2026, there remained an outstanding general authority for the
directors to purchase up to 5,232,343 ordinary shares, which was granted at
last year's Annual General Meeting.
The Board believes that it is in the best interests of shareholders to retain
this authority in order that market purchases may be made in the right
circumstances and if the necessary funds are available. Accordingly, at the
next Annual General Meeting, shareholders will be asked to vote in favour of a
resolution to renew the general authority to make market purchases of up to
12.5% of the ordinary share capital in issue.
Net funds
Net funds increased by £6.0 million from £7.2 million at 31 December 2024 to
£13.2 million at 31 December 2025. Net funds include cash and cash
equivalents of £28.4 million (2024: £23.2 million) less right-of-use lease
obligations of £15.2 million (2024: £16.0 million).
JJ Murray
Executive Chairman
11 May 2026
Consolidated Income Statement
for the year ended 31 December 2025
Year ended Year ended
31 December 2025
31 December 2024
£000 £000
Revenue 76,500 75,942
Cost of sales (27,613) (26,743)
Gross profit 48,887 49,199
Distribution costs (13,270) (11,335)
Administrative expenses (12,160) (14,677)
Operating profit 23,457 23,187
Adjusted EBITDA* 30,156 30,933
Depreciation (5,680) (5,968)
Depreciation of right-of-use assets (3,269) (2,929)
Profit on the sale of plant and equipment and right-of-use assets 1,177 1,151
Profit on the sale of land and buildings 1,073 -
Operating profit 23,457 23,187
Finance income 983 1,060
Finance costs (1,013) (1,060)
Profit before tax 23,427 23,187
Tax expense (5,342) (6,389)
Profit for the period from continuing operations attributable to equity 18,085 16,798
holders of the Parent Company
Earnings per share from continuing operations:
Basic and diluted 43.20p 40.13p
Dividend per equity share paid during the period 25.90p 25.90p
Proposed dividend per equity share 14.00p 14.00p
(*) Earnings before interest, taxation, depreciation, profit on sale of land
and buildings and plant and equipment and amortisation.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
Year ended Year ended
31 December
31 December
2025
2024
£000 £000
Profit for the period 18,085 16,798
Other comprehensive income
Currency translation differences on foreign currency operations 403 (464)
Net other comprehensive income/ (expense) that may be reclassified to profit 403 (464)
and loss
(396) (49)
Re-measurement of defined benefit pension assets and liabilities
Related asset restriction 101 275
Net other comprehensive (expense)/ income that will not be reclassified to (295) 226
profit and loss
108 (238)
Other comprehensive income/ (expense) for the period net of tax
Total comprehensive income for the period attributable to equity holders of
the Parent Company
18,193 16,560
Consolidated Balance Sheet
At 31 December 2025
31 December 31 December
2025
2024
£000 £000
Non-current assets
Property, plant and equipment 21,595 19,403
Right-of-use assets 14,239 14,874
Defined benefit pension scheme surplus 1,486 1,786
37,320 36,063
Current assets
Stocks 3,780 2,394
Trade and other receivables 17,315 17,888
Current tax assets 584 769
Cash and cash equivalents 28,386 23,181
50,065 44,232
Total assets 87,385 80,295
Current liabilities
Trade and other payables (15,590) (15,865)
Current tax liabilities (679) (471)
Right-of-use lease obligations (2,885) (2,556)
(19,154) (18,892)
Non-current liabilities
Deferred tax liabilities (296) (185)
Right-of-use lease obligations (12,328) (13,473)
Provisions (2,070) (1,560)
(14,694) (15,218)
Total liabilities (33,848) (34,110)
Net Assets 53,537 46,185
Equity
Called up share capital 419 419
Share premium 13 13
Retained earnings 49,180 42,231
Translation reserve 3,676 3,273
Other reserve 249 249
Total equity 53,537 46,185
Consolidated Cash Flow Statement
for the year ended 31 December 2025
Year ended Year ended
31 December
31 December
2025
2024
£000 £000
Operating activities
Profit for the period 18,085 16,798
Adjustments for:
Tax charge 5,342 6,389
Finance costs 1,013 1,060
Finance income (983) (1,060)
Profit on disposal of plant and equipment and right-of-use assets (1,177) (1,151)
Profit on disposal of land and buildings (1,073) -
Depreciation of property, plant and equipment 5,680 5,968
Depreciation of right-of-use assets 3,269 2,929
Difference between pension contributions paid and amounts recognised in the
Income Statement
131 166
Increase in inventories (2,277) (1,196)
Decrease in receivables 906 901
Decrease in payables (707) (1,541)
Movement in provisions 485 (1,310)
Cash generated from continuing operations 28,694 27,953
Interest paid (1,013) (1,015)
Corporation tax paid (4,838) (6,615)
Net cash inflow from operating activities 22,843 20,323
Investing activities
Disposal of plant and equipment 1,044 1,162
Disposal of property 1,255 -
Purchase of property, plant and equipment (7,279) (5,387)
Interest received 830 952
Net cash outflow from investing activities (4,150) (3,273)
Financing activities
Capital repayments for right-of-use lease
obligations (3,053) (2,920)
Equity dividends paid (10,841) (10,841)
Net cash outflow from financing activities (13,894) (13,761)
Net increase in cash and cash equivalents 4,799 3,289
Cash and cash equivalents at the start of the period 23,181 19,967
Effect of foreign exchange rate changes 406 (75)
Cash and cash equivalents at the end of the period 28,386 23,181
Consolidated Statement of Changes in Equity
for the year ended 31 December 2025
Share capital UAE legal reserve Netherlands capital reserve Retained earnings Attributable to equity holders of the parent
Capital
Share premium Translation reserve redemption reserve
£000 £000 £000 £000 £000 £000 £000 £000
At 31 December 2023 419 13 3,737 161 79 9 36,048 40,466
Profit for the period - - - - - - 16,798 16,798
Other comprehensive expense for the period net of tax - - (464) - - - 226 (238)
Total comprehensive income/ (expense) - - (464) - - - 17,024 16,560
Dividends paid - - - - - - (10,841) (10,841)
Total of transactions with shareholders - - - - - - (10,841) (10,841)
At 31 December 2024 419 13 3,273 161 79 9 42,231 46,185
Profit for the period - - - - - - 18,085 18,085
Other comprehensive income/ (expense) for the period net of tax - - 403 - - - (295) 108
Total comprehensive Income - - 403 - - - 17,790 18,193
Dividends paid - - - - - - (10,841) (10,841)
Total of transactions with shareholders - - - - - - (10,841) (10,841)
At 31 December 2025 419 13 3,676 161 79 9 49,180 53,537
Notes to the Interim Financial statements
1 Basis of preparation
Whilst the information included in this preliminary announcement has been
prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRSs), this announcement does
not itself contain sufficient information to comply with IFRSs. Therefore, the
financial information set out above does not constitute the company's
financial statements for the 12 months ended 31 December 2025 or 31 December
2024 but it is derived from those financial statements.
2 Going concern
The directors are required to consider the application of the going concern
concept when approving financial statements. The principal element required to
meet the test is sufficient liquidity for a period from the end of the year
until at least 12 months subsequent to the date of approving the accounts.
Management has prepared a detailed "bottom-up" budget including profit and
loss and cash flow for the financial year ending 31 December 2026 and has
extrapolated this forward until the end of May 2027 in order to form a view of
an expected trading and cash position for the required period. This base level
forecast fully incorporates management's expectations around the performance
of the group and was prepared on a cautiously realistic basis. This forecast
takes into account specific factors relevant in each of our businesses. These
2026 forecasts have been reviewed and approved by the Board.
Whilst profitability and cash flow performance to the end of March 2026 has
been close to expectation, in order to further assess the company's ability to
continue to trade as a going concern, management have performed an exercise to
assess a reasonable but plausible downside scenario and the impact of this on
profit and cash. For the purposes of the cash forecast, the below
assumptions have been incorporated into this forecast:
• Normal level of dividends will be maintained during the 12 months
subsequent to the date of approving the accounts;
• No new external funding sought;
• Hire turnover and product sales reduced by 23% versus budget- a
variance level seen across any individual product class for 2025 and 2026
actual results versus budgets;
• All overheads continue at the base forecast level apart from
overtime and commission and repairs and marketing, which are reduced by 25%
and travel costs reduced by 12.5%;
• All current vacancies are filled immediately; and
• Capital expenditure is reduced by 25%.
The above factors have all been reflected in the forecast for the period
ending 12 months subsequent to the date of approving the accounts. The board
consider this scenario to be extremely unlikely. The headline numbers at a
group level would be:
• Group turnover for the 12 months ending 31 December 2026 is forecast
to be adverse to the 31 December 2025 figures. Operating profit is below the
profit for 2025.
• Closing net funds as at the end of May 2027 are forecast to be
comparable to the level reported at 31 December 2025.
Under this reasonable but plausible downside scenario, the group has
sufficient net funds throughout 2026 and up to the end of May 2027, to
continue to operate as a going concern.
A final sensitivity analysis was performed in order to assess by how much
group turnover could fall before further external financing would need to be
sought. Under this scenario it was assumed that:
• Capital expenditure falls proportionately to turnover;
• Temporary staff are removed from the group; and
• Various overheads decrease proportionately with turnover.
Given these assumptions, and for modelling purposes only, assuming dividends
are maintained at normal levels, group turnover could fall to below £40
million on an annualised basis without any liquidity concerns. Due to the
level of confidence the Board has in the future trading performance of the
group, this scenario is considered highly unlikely to occur.
The group has considerable financial resources and a wide operational base.
Based on the detailed forecast prepared by management, the Board has a
reasonable expectation that the group has adequate resources and management
experience to continue to trade for the foreseeable future, at least 12 months
from the date of approving these financial statements, even in the reasonable
but plausible downside scenario identified by the group. Management have also
considered the risks previously identified around climate change and their
potential impact on the forecasts produced and have not identified any
significant risks that impact the going concern assumption. Accordingly, the
Board continues to adopt the going concern basis when preparing this Annual
Report and Financial Statements.
3 International Financial Reporting Standards (IFRS)
adopted for the first time in 2025
There were no new standards or amendments to standards adopted for the first
time this year that had a material impact on the results of the group. The
prior year comparatives have not been restated for any changes in accounting
policies that were required due to the adoption of new standards this year.
4 Distribution of Annual Report and Financial
Statements
The group expects to distribute copies of the full Annual Report and Financial
Statements that comply with IFRSs by 18 May 2026 following which copies will
be available either from the registered office of the company; Unit 601 Axcess
10 Business Park, Bentley Road South, Wednesbury, WS10 8LQ; or from the
company's website; www.andrews-sykes.com (http://www.andrews-sykes.com) . The
Annual Report and Financial Statements for the 12 months ended 31 December
2024 have been delivered to the Registrar of Companies and those for the 12
months ended 31 December 2025 will be filed at Companies House following the
company's Annual General Meeting. The auditor has reported on those financial
statements; the report was unqualified, did not draw attention to any matters
by way of emphasis without qualifying their report and did not contain details
of any matters on which they are required to report by exception.
5 Date of Annual General Meeting
The group's Annual General Meeting will be held at 3.00 p.m. on Tuesday, 16
June 2026 at Unit 5, Peninsular Park Road, London, SE7 7TZ.
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