Revenues cool at heating hire specialist Andrew Sykes

OPERATING profit has climbed while profit after tax and revenues took a small tumble at Black Country heating and air conditioning hire specialist Andrews Sykes.

In its preliminary results for the 12 months ended December 31, 2010, operating profit rose year-on-year from £12.9m to £13.9m while post-tax profit fell from £11.6m to £10.5m.

Revenues dropped to £55.9m compared with £54.3m in 2009.

Net cash inflow from operating activities at the Wolverhampton-based firm dropped to £13.8m from £14.3m.

At the end of 2010, the company said it had net funds of £4.9m compared with net debt of £2.8m the previous year.

External bank borrowings had been reduced by £9m from £29m and on going cost control, cash and working capital management continued to be priorities for the group, the statement added.

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“Our main hire and sales business in the UK and Northern Europe – the Netherlands and Belgium – returned a strong performance in the year,” the company said.

“The operating profit from this business sector increased by £2.9m from £11.1m in 2009 to £14m in the current year.

“The performance was in part attributable to the cold weather in December which assisted the performance of our heating division.

“In addition, management continue to develop non-weather dependent niche markets which has benefited the performance of the specialist hire division.

“We will continue to invest in and develop this business as well as our traditional core products and services.”