Equipment hire group enjoys strong half year

Wolverhampton-based heating and air-conditioning equipment hire group Andrew Sykes has posted a record set of results for the first six months of the year.

Revenue from continuing operations was up from £37.9m in the first half of 2022 to £38.8m this year, while operating profit grew from £8.4m to £9.7m.

Revenue at Andrews Sykes Hire in the UK continues to grow, the company said in a market update, and improved by 5.6% compared with the same period in 2022.

Business in Europe is also continuing to grow strongly, with revenue up 15.5%.

Andrews Air Conditioning and Refrigeration, the company’s UK air conditioning installation business, continues to trade broadly in line with last few years but remains significantly down on 2019 levels.

The company said that while revenue decreased 11.7% in the period compared to the first six months of 2022, tight cost control meant operating profit increased by 1.8%.

A final dividend of 14p per ordinary share for 2022 was agreed by the company’s board.

Looking ahead, the group said: “Following the company’s strong first half performance, trading in the second half of the year to date has been more mixed. While extreme summer temperatures in Southern Europe positively impacted demand for the group’s chillers in Italy, a more subdued summer season in the UK has limited the overall positive impact for the group.

“Overall, management remains confident of delivering full year results in line with the board’s expectations. In the longer term, management remains optimistic that the business will continue to improve but are mindful of the current economic climate and the impact that volatile energy prices and inflationary cost pressures can pose to the business and customer demand.”

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