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RNS Number : 4995A Andrews Sykes Group PLC 24 September 2025
24 September
2025
ANDREWS SYKES GROUP PLC
("Andrews Sykes" or the "Company" or the "Group")
Half Year Results
Unaudited results for the six months ended 30 June 2025
Summary of Results
Unaudited Unaudited
six months ended
six months ended
30 June
30 June
2025
2024
£000 £000
Revenue from continuing operations 37,944 38,387
EBITDA* from continuing operations 13,564 13,139
Operating profit 10,003 9,726
Profit for the financial period 7,439 7,075
Cash and cash equivalents 23,412 21,108
Net funds 6,931 6,645
(pence) (pence)
Basic earnings per share 17.77 16.90
Interim dividend declared per equity share 11.90 11.90
* Earnings before interest, taxation, depreciation, profit on the sale of
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 7839 3355
Tim Richardson
CHAIRMAN'S STATEMENT
Overview of H1 2025
The Group's revenue for the six months ended 30 June 2025 (the "period") was
£37.9 million, a decrease of £0.4 million compared with the same period in
2024. Unfavourable exchange rate movements in both the Euro and the Dirham
decreased revenue by £0.3 million when compared to the prior period.
Operating profit for the period was £10.0 million compared with £9.7 million
for the same period in 2024. This is a record level and the first time
operating profit above £10.0 million has been generated in the first half of
the year. Overall, net funds decreased by £0.2 million from £7.2 million as
at 31 December 2024 to £6.9 million as at 30 June 2025. This was largely
driven by an increased investment in our UK depot network following the £2.0
million acquisition of a new depot in the North West. As at 30 June 2024 net
funds were £6.6 million. A further breakdown of net funds is given in note 8.
Operations review
Revenue in the period at Andrews Sykes Hire in the UK declined by 10.9%
compared with the same period in 2024, with reduced pump revenue accounting
for the majority of this decrease. With the UK experiencing one of the driest
springs on record, and England experiencing the driest start to a year since
1976, weather-related revenue opportunities were negatively impacted.
Our businesses in Europe fared more positively, with revenue in the period
increasing 8.1% compared to the same period in 2024. This was largely driven
by a standout performance from our Dutch subsidiary, with revenue increasing
18.9% on the same period in 2024 and all product classes experiencing an
increase in revenue. Our Italian business continued to grow, with revenue
increasing 1.8% compared to 2024. Our Belgium revenue was impacted by a slow
start to the summer cooling season, with total revenues decreasing 11.1% on
2024. Following the construction crisis in 2024, revenue in our Luxembourg
business remained depressed and decreased 19.6% on 2024. These challenges to
revenue growth have led to the combined operating profit for the UK and
European hire businesses decreasing £0.4 million compared to the level
achieved in 2024.
Andrews Air Conditioning and Refrigeration, our UK air conditioning
installation business, continues to experience difficult trading conditions
with a reduction in service and maintenance revenue. Overall revenue for this
business decreased 24.5% in the period compared to the first six months of
2024. Overheads have been reduced to right-size the business which in turn has
resulted in a small operating profit compared to a small loss in the prior
period.
Khansaheb Sykes, our business based in the UAE, continues to experience an
improvement in trading performance and the recent trend of revenue growth.
Revenue increased 38.0% versus the first half of 2024, aided by a one-off
large pump sale contract worth in excess of £1.0 million. Core underlying
hire revenues, excluding pump sales, have increased 15.0% to the first half of
2024. The increased turnover in the UAE has resulted in operating profit being
£0.3 million higher than in the first half of 2024. Our newly incorporated
subsidiary in Saudi Arabia, under common management with Khansaheb Sykes, has
taken its first pump sale order with the revenue to be recognised on delivery
in the second half of the year. Management remain confident of the future
growth prospects of this market.
Profit for the period and Earnings per Share
Profit before tax for the period was £10.0 million compared with £9.7
million in the same period last year. This increase is attributable to the
£0.3 million increase in operating profit, with finance income of £0.5
million and finance costs of £0.5 million both being comparable to the prior
period.
The total tax charge for the period decreased by £0.1 million to £2.6
million (2024: £2.7 million), an effective tax rate of 25.8% (2024: 27.4%).
The decrease in the overall effective rate of tax is driven by an increase in
profits generated in the UAE which are subject to a lower rate of corporation
tax than the UK and Europe.
Profit after tax in the period was £7.4 million (2024: £7.1 million). Basic
earnings per share increased by 0.87 pence, or 5.1%, to 17.77 pence (2024:
16.90 pence) reflecting this increase in profit.
Dividends
The final dividend of 14.00 pence per ordinary share for the year ended 31
December 2024 was approved by members at the AGM held on 17 June 2025.
Accordingly, on 20 June 2025 the Company paid dividends totalling £5.9
million to shareholders on the register as at 23 May 2025.
The Board continues to adopt the policy of returning value to shareholders
whenever possible. The Group remains profitable, cash generative and
financially strong. Accordingly, the Board has decided to declare an interim
dividend of 11.90 pence per ordinary share (2024: 11.90 pence) which in total
amounts to £5.0 million. The interim dividend will be paid on 31 October 2025
to shareholders on the register as at 3 October 2025.
Outlook
Trading in the second half of the year to date has broadly followed the trend
of the first half, with continued softness in the UK market being offset by
strong performances in Europe and the Middle East. Whilst trade in the UK has
been more subdued than in the comparable period of last year, with challenging
market conditions prevailing, the Group's focus on continued cost control and
operational efficiency will limit the impact. Our European businesses have
benefitted from a strong start to the summer season with warm June and July
temperatures presenting good revenue opportunities for the Group in these
jurisdictions. Several of our European businesses have set record revenue run
rates during July and continue to trade positively compared to the prior
period. The Middle East continues to trade comparatively positively in the
second half of the year as it did in the first half of the year. Overall, the
Board remains confident of delivering full year results in line with its
expectations, with the geographical diversification of the Group mitigating
the risk of any one market underperforming. In the longer term, the Board
remains optimistic that the business will continue to improve but are mindful
of the impact that adverse macro-economic issues can pose to the business and
customer demand.
JJ Murray
Executive Chairman
23 September 2025
Consolidated Income Statement
for the six months ended 30 June 2025
Note Unaudited Unaudited Year ended
six months ended
six months ended
31 December 2024
30 June 2025
30 June 2024
£000 £000 £000
Revenue 2 37,944 38,387 75,942
Cost of sales (14,182) (14,143) (26,743)
Gross profit 23,762 24,244 49,199
Distribution costs (6,177) (6,492) (11,335)
Administrative expenses (7,582) (8,026) (14,677)
Operating profit 10,003 9,726 23,187
EBITDA* 13,564 13,139 30,933
Depreciation (2,632) (2,814) (5,968)
Depreciation of right-of-use assets (1,588) (1,386) (2,929)
Profit on the sale of plant and equipment and right-of-use assets 659 787 1,151
Operating profit 10,003 9,726 23,187
Finance income 3 517 521 1,060
Finance costs 3 (488) (497) (1,060)
Profit before tax 10,032 9,750 23,187
Tax expense 4 (2,593) (2,675) (6,389)
Profit for the period from continuing operations attributable to equity 7,439 7,075 16,798
holders of the Parent Company
Earnings per share from continuing operations:
Basic and diluted 5 17.77p 16.90p 40.13p
Dividend per equity share paid during the period 14.00p 14.00p 25.90p
Proposed dividend per equity share 11.90p 11.90p 14.00p
(*) Earnings before interest, taxation, depreciation, profit on sale of plant
and equipment and amortisation.
Consolidated Statement of Comprehensive Total Income
for the six months ended 30 June 2025
Unaudited Unaudited Year ended
six months ended
six months ended
31 December
30 June
30 June
2024
2025
2024
£000 £000 £000
Profit for the period 7,439 7,075 16,798
Other comprehensive income
Currency translation differences on foreign currency operations 32 (216) (464)
Foreign exchange differences on IFRS 16 adjustments - 10 -
Net other comprehensive expense that may be reclassified to profit and loss 32 (206) (464)
74 96 (49)
Re-measurement of defined benefit pension assets and liabilities
Related asset restriction (17) (9) 275
Net other comprehensive income that will not be reclassified to profit and 57 87 226
loss
89 (119) (238)
Other comprehensive expense for the period net of tax
Total comprehensive income for the period attributable to equity holders of
the Parent Company
7,528 6,956 16,560
Consolidated Balance Sheet
At 30 June 2025
Unaudited Unaudited 31 December
30 June
30 June
2024
2025
2024
£000 £000 £000
Non-current assets
Property, plant and equipment 21,502 18,898 19,403
Right-of-use assets 15,567 13,218 14,874
Deferred tax assets - 79 -
Defined benefit pension scheme surplus 1,838 1,634 1,786
38,907 33,829 36,063
Current assets
Stocks 2,754 2,759 2,394
Trade and other receivables 15,724 17,216 17,888
Current tax asset 738 159 769
Cash and cash equivalents 23,412 21,108 23,181
42,628 41,242 44,232
Current liabilities
Trade and other payables (15,345) (17,204) (15,865)
Current tax liabilities - - (471)
Right-of-use lease obligations (2,814) (2,353) (2,556)
(18,159) (19,557) (18,892)
Net current assets 24,469 21,685 25,340
Total assets less current liabilities 63,376 55,514 61,403
Non-current liabilities
Deferred tax liabilities (245) - (185)
Right-of-use lease obligations (13,667) (12,110) (13,473)
Provisions (1,611) (1,842) (1,560)
(15,523) (13,952) (15,218)
Net assets 47,853 41,562 46,185
Equity
Called up share capital 419 419 419
Share premium 13 13 13
Retained earnings 43,867 37,350 42,231
Translation reserve 3,305 3,531 3,273
Other reserve 249 249 249
Total equity 47,853 41,562 46,185
Consolidated Cash Flow Statement
for the six months ended 30 June 2025
Unaudited Unaudited Year ended
six months ended
six months ended
31 December
30 June
30 June
2024
2025
2024
£000 £000 £000
Operating activities
Profit for the period 7,439 7,075 16,798
Adjustments for:
Tax charge 2,593 2,675 6,389
Finance costs 488 497 1,060
Finance income (517) (521) (1,060)
Profit on disposal of plant and equipment and right-of-use assets
(659) (787) (1,151)
Depreciation of property, plant and equipment 2,632 2,814 5,968
Depreciation of right-of-use assets 1,588 1,386 2,929
Difference between pension contributions paid and amounts recognised in the
Income Statement
68 125 166
Increase in inventories (700) (372) (1,196)
Decrease in receivables 2,108 1,791 901
Decrease in payables (481) (294) (1,541)
Movement in provisions 37 (1,061) (1,310)
Cash generated from continuing operations 14,596 13,328 27,953
Interest paid (488) (439) (1,015)
Corporation tax paid (2,941) (3,036) (6,615)
Net cash inflow from operating activities 11,167 9,853 20,323
Investing activities
Disposal of property, plant and equipment 278 673 1,162
Purchase of property, plant and equipment (4,317) (2,561) (5,387)
Interest received 424 467 952
Net cash outflow from investing activities (3,615) (1,421) (3,273)
Financing activities
Capital repayments for right-of-use lease
Obligations (1,498) (1,394) (2,920)
Equity dividends paid (5,860) (5,860) (10,841)
Net cash outflow from financing activities (7,358) (7,254) (13,761)
Net increase in cash and cash equivalents 194 1,178 3,289
Cash and cash equivalents at the start of the period 23,181 19,967 19,967
Effect of foreign exchange rate changes 37 (37) (75)
Cash and cash equivalents at the end of the period 23,412 21,108 23,181
Consolidated Statement of Changes in Equity
for the six months ended 30 June 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 - - - - - - 7,075 7,075
Other comprehensive (expense)/ income for the period net of tax - - (206) - - - 87 (119)
Total comprehensive (expense)/ income - - (206) - - - 7,162 6,956
Dividends paid - - - - - - (5,860) (5,860)
Total of transactions with shareholders - - - - - - (5,860) (5,860)
At 30 June 2024 419 13 3,531 161 79 9 37,350 41,562
Profit for the period - - - - - - 9,723 9,723
Other comprehensive (expense)/ income for the period net of tax - - (258) - - - 139 (119)
Total comprehensive (expense)/ income - - (258) - - - 9,862 9,604
Dividends paid - - - - - - (4,981) (4,981)
Total of transactions with shareholders - - - - - - (4,981) (4,981)
At 31 December 2024 419 13 3,273 161 79 9 42,231 46,185
Profit for the period - - - - - - 7,439 7,439
Other comprehensive income for the period net of tax - - 32 - - - 57 89
Total comprehensive income - - 32 - - - 7,496 7,528
Dividends paid - - - - - - (5,860) (5,860)
Total of transactions with shareholders - - - - - - (5,860) (5,860)
At 30 June 2025 419 13 3,305 161 79 9 43,867 47,853
Notes to the Interim Financial statements
1 General information and accounting policies
These interim financial statements have been prepared in accordance with the
recognition and measurement principles of international accounting standards
in conformity with the requirements of the Companies Act 2006.
The information for the 12 months ended 31 December 2024 does not constitute
the Group's statutory accounts for 2024 as defined in Section 434 of the
Companies Act 2006. Statutory accounts for 2024 have been delivered to the
Registrar of Companies. The auditor's report on those accounts was unqualified
and did not contain statements under Section 498(2) or (3) of the Companies
Act 2006. These interim financial statements, which were approved by the Board
of Directors on 23 September 2025, have not been audited or reviewed by the
auditors.
Basis of preparation
The interim financial statement has been prepared using the historical cost
basis of accounting except for:
(i) Properties held at the date of transition to IFRS
which are stated at deemed cost;
(ii) Assets held for sale which are stated at the lower of
(i) fair value less anticipated disposal costs and (ii) carrying value;
(iii) Derivative financial instruments (including embedded
derivatives) which are valued at fair value; and
(iv) Pension scheme assets and liabilities calculated at
fair value in accordance with IAS 19
The annual financial statements of the Group are prepared in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with the AIM
Rules issued by the London Stock Exchange.
Accounting policies
The principal accounting policies applied in preparing the interim Financial
Statements comply with international accounting standards in conformity with
the requirements of the Companies Act 2006 and are consistent with the
policies set out in the Annual Report and Accounts for the year ended 31
December 2024.
No new standards or interpretations issued since 31 December 2024 have had a
material impact on the accounting of the Group.
Functional and presentational currency
The financial statements are presented in pounds Sterling because that is the
functional currency of the primary economic environment in which the group
operates.
2 Revenue
An analysis of the Group's revenue is as follows:
Unaudited Unaudited
six months six months Year ended
ended ended 31 December
30 June 30 June 2024
2025 2024
£000
£000 £000
Continuing operations
Hire and hire related 34,385 34,625 70,932
Sales 2,904 2,922 3,441
Maintenance 378 575 1,091
Installation and sale of units 277 265 478
Group consolidated revenue from the sale of goods and provision of services 37,944 38,387 75,942
The geographical analysis of the Group's revenue by destination is:
Unaudited Unaudited
six months six months Year ended
ended ended 31 December
30 June 30 June 2024
2025 2024
£000
£000 £000
United Kingdom 21,112 23,217 44,297
Europe 11,913 11,609 23,980
Middle East and Africa 4,919 3,561 7,665
37,944 38,387 75,942
The geographical analysis of the Group's revenue by destination is not
materially different to that by origination.
3 Finance income and costs
Unaudited Unaudited Year ended
six months ended
six months ended
31 December
30 June
30 June
2024
2025 2024
Finance income £000 £000 £000
Net interest on net defined benefit pension surplus 63 54 108
Intertest receivable on bank deposit accounts 424 467 952
Inter-company foreign exchange gains 30 - -
517 521 1,060
Finance costs
Interest charge on right-of-use lease obligations (488) (439) (1,015)
Inter-company foreign exchange losses - (58) (45)
(488) (497) (1,060)
4 Income tax expense
The total effective tax charge for the financial period represents the best
estimate of the weighted average annual effective tax rate expected for the
full financial year applying tax rates that have been substantively enacted by
the balance sheet date. UK corporation tax has been provided at 25% being the
tax rate in the UK for 2025. Deferred tax has been calculated based on the
rates that the directors anticipate will apply when the temporary timing
differences are expected to reverse.
Unaudited Unaudited
six months ended six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
£000 £000 £000
Current tax
UK corporation tax at 25% (June and December 2024: 25% and 25%) 1,293 1,907 3,288
Adjustments in respect of prior periods - - (19)
1,293 1,907 3,269
Overseas tax 1,240 720 2,223
Overseas tax adjustments in respect of prior periods - - 586
1,240 720 2,809
Total current tax charge 2,533 2,627 6,078
Deferred tax
Origination and reversal of timing differences 60 48 325
Adjustments in respect of prior periods - - (14)
Total deferred tax charge 60 48 311
Total tax charge for the financial period 2,593 2,675 6,389
5 Earnings per share
Basic earnings per share
The basic figures have been calculated by reference to the weighted average
number of ordinary shares in issue and the earnings as set out below. There
are no discontinued operations in any period.
Unaudited Unaudited
six months ended six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
Weighted average number of ordinary shares 41,858,744 41,858,744 41,858,744
£000 £000 £000
Basic earnings 7,439 7,075 16,798
pence pence pence
Basic earnings per ordinary share 17.77 16.90 40.13
Diluted earnings per share
There were no dilutive instruments outstanding as at 30 June 2025 or either of
the comparative periods and therefore there is no difference in the basic and
diluted earnings per share for any of these periods. There were no
discontinued operations in any period.
6 Dividend payments
Dividends declared and paid on ordinary one pence shares during the 6 months
ended 30 June 2025 were as follows:
Paid during the six months ended 30 June 2025
Total dividend paid
£000
Pence per share
Final dividend for the year ended 31 December 2024 paid on 20 June 2025 to
members on the register as at 23 May 2025
14.00p 5,860
The above dividend was charged against reserves during the 6 months ended 30
June 2025.
On 23 September 2025 the directors declared an interim dividend of 11.90 pence
per ordinary share which in total amounts to £4,981,000. This dividend will
be paid on 31 October 2025 to shareholders on the register as at 3 October
2025 and will be charged against reserves in the second half of 2025.
Dividends declared and paid on ordinary one pence shares during the 6 months
ended 30 June 2024 were as follows:
Paid during the six months ended 30 June 2024
Total dividend paid
£000
Pence per share
Final dividend for the year ended 31 December 2023 paid on 21 June 2024 to
members on the register as at 24 May 2024
14.00p 5,860
The above dividend was charged against reserves during the 6 months ended 30
June 2024.
Dividends declared and paid on ordinary one pence shares during the 12 months
ended 31 December 2024 were as follows:
Paid during the year ended 31 December 2024
Total dividend paid
£000
Pence per share
Final dividend for the year ended 31 December 2023 paid on 21 June 2024 to
members on the register as at 24 May 2024
14.00p 5,860
Interim dividend declared on 24 September 2024 and paid on 1 November 2024 to 11.90p 4,981
members on the register as at 4 October 2024
25.90p 10,841
The above dividends were charged against reserves during the 12 months ended
31 December 2024.
7 Pensions
The Group closed the UK Group defined benefit pension scheme to future accrual
as at 29 December 2002. The assets of the defined benefit pension scheme
continue to be held in a separate trustee administered fund. Over recent years
the Group has taken steps to manage the ongoing risks associated with its
defined benefit liabilities including completing an insurance buy-in of the
scheme meaning the scheme has been derisked in terms of investment, interest
rate, inflation and longevity risks. The buy-in secures an insurance asset
that fully matches, subject to final price adjustments, the remaining pension
liabilities of the scheme.
As at 30 June 2025 the Group had a net defined benefit pension scheme surplus,
calculated in accordance with IAS 19 using the assumptions as set out below,
of £2,451,000 (30 June 2024: £2,514,000; 31 December 2024: £2,382,000). The
asset has been recognised in the financial statements as the directors are
satisfied that it is recoverable in accordance with IFRIC 14.
The last formal triennial funding valuation was as at 31 December 2022. The
valuation, including a revised schedule of
contributions, was agreed between the pension scheme trustees and the Board of
directors in December 2023 and was effective from 1 January 2024. In
accordance with this schedule of contributions, the group is no longer
required to make any regular contributions into the scheme. Consequently, the
Group expects to make total contributions to the defined benefit pension
scheme of £Nil during 2025.
Assumptions used to calculate the scheme surplus
The IAS 19 figures are based on a number of actuarial assumptions as set out
below, which the actuaries have confirmed they consider appropriate.
30 June 30 June 31 December
2025 2024 2024
Rate of increase in pensionable salaries n/a n/a n/a
Rate of increase in pensions in payment 2.95% 3.20% 3.05%
Discount rate 5.55% 5.10% 5.45%
Inflation assumption - RPI 2.95% 3.20% 3.20%
Inflation assumption - CPI 2.55% 2.75% 2.80%
Percentage of members taking maximum tax-free lump sum on retirement
0.00% 0.00% 0.00%
The demographic assumptions used for 30 June 2025, were the same as used in 31
December 2024, 30 June 2024 and the last full actuarial valuation performed as
at 31 December 2022.
Assumptions regarding future mortality experience are set based on advice in
accordance with published statistics. The mortality table used at 30 June
2025, 30 June 2024 and 31 December 2024 is 100% S3PA CMI2023 with a 1.25% per
annum long term improvement for both males and females, heavy tables for males
and medium tables for females.
Valuation
The defined benefit scheme funding has changed under IAS 19 as follows:
Unaudited Unaudited
six months to six months to Year to
Funding status 30 June 30 June 31 December
2025 2024 2024
£000 £000 £000
Scheme assets at end of period 27,754 28,644 28,330
Benefit obligations at end of period (25,303) (26,130) (25,948)
Surplus in scheme 2,451 2,514 2,382
Impact of asset restriction (613) (880) (596)
Net pension asset recognised on the balance sheet 1,838 1,634 1,786
8 Net funds and movement in financing liabilities
Unaudited Unaudited
six months ended six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
£000 £000 £000
Cash and cash equivalents per consolidated cashflow statement 23,412 21,108 23,181
Gross funds 23,412 21,108 23,181
Right-of-use lease obligations at the beginning of the period (16,029) (15,397) (15,397)
Capital repayments for right-of-use lease obligations 1,498 1,395 2,920
New right-of-use leases entered into during the period (2,279) (918) (4,210)
Non-cash movements re: termination of right-of-use lease obligations 333 411 616
Foreign exchange (4) 46 42
Right-of-use lease obligations at the end of the period (16,481) (14,463) (16,029)
Gross debt (16,481) (14,463) (16,029)
Net funds 6,931 6,645 7,152
9 Distribution of interim financial statements
Following a change in regulations in 2008, the Company is no longer required
to circulate this half year report to shareholders. This enables us to reduce
costs associated with printing and mailing and to minimise the impact of these
activities on the environment. A copy of the interim financial statements is
available on the Company's website, www.andrews-sykes.com.
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