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REG - Andrews Sykes Group - Half-year Report

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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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