Profit drop at Andrews Sykes despite revenue rise
OPERATING profits have taken a small dip at Black Country heating and air conditioning hire specialist Andrews Sykes despite a rise in revenues.
In an interim management statement for the six months ended June 30, 2011, the plc reports a drop in operating profit from £6.8m to £5.9m and a fall from £8.8m to £7.7m in EDITDA from continuing operations.
Revenue from continuing operations rose year-on-year from £27.57m to £27.71m while profit for the period was down from £5.22m to £4.11m.
Chairman Jacques Gaston Murray said: “The group continues to generate strong cash flows. Management has been mindful of the need to maintain the operational structure of the business and to ensure that this is not damaged by unnecessary cuts in expenditure.
“Our hire fleet continues to be well maintained and the group has spent £3m on new plant and equipment in the six months under review.
“This is necessary to ensure that we remain in a strong position ready to take advantage of any business opportunities whenever they arise.
“Our main hire and sales business in the UK and Northern Europe has been adversely affected by the mild weather at the end of 2010/11 winter which resulted in an early end to the heating season.
“Whilst May and June saw some dry and warm weather it was never hot enough to significantly stimulate our air conditioning business which remained flat.”
The company opened its fourth Dutch depot in the north-east of The Netherlands during the period which it said had strengthened its position there and would provide a platform for future expansion.
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