Profits heat up for air conditioning group Andrew Sykes
WOLVERHAMPTON-based air conditioning group Andrew Sykes has seen a 3.1% increase in half-year revenue with a subsequent 18.6% growth in pre-tax profits.
For the six months to June 30, 2012, group revenue was £28.6m (2011: £27.7m), while normalised operating profit increased by £0.5m (8.7%) from £5.9m in the same period last year to £6.4m.
Pre-tax profit increased by £1m from £5.7m in the six months of 2011 to £6.7m. Aside from the increase in normalised profit, this was due to the receipt of a dividend of £0.3m from Oasis Sykes, its investment in Saudi Arabia and the absence of a £0.2m inter-company foreign exchange loss incurred last half year caused by an adverse currency fluctuations.
Overall, profit for the period increased by £0.8m (19.9%) from £4.1m to £4.9m. Basic earnings per share increased by 21.8% from 9.58p to 11.67p reflecting the increase in profit and the group’s ongoing share buyback programme.
Despite the growth, the company has opted not to declare an interim dividend. The board said it continued to adopt the policy of returning value to shareholders whenever possible and a decision regarding an interim dividend would be taken later in the year in the light of profitability and cash resources.
The group said it continued to generate strong cash flows and the management had been mindful of the need to maintain the operational structure of the business and to ensure this was not damaged by unnecessary cuts in expenditure.
The relocation to its new freehold property in Peninsular Way, London, was successfully completed within financial budgets and timescales during the first half of 2012.
Consequently the group said it now had a much improved and enlarged operating base from which to serve customers in London and the South East of England.
Its hire fleet continues to be well maintained and the group has invested £2m in new plant and equipment and property improvements during the first half.
“This is necessary to ensure that we remain in a strong position ready to take advantage of any business opportunities whenever they arise,” it said.
