Andrews Sykes performance hit by weather-linked “trading challenges”

WOLVERHAMPTON air conditioning firm Andrews Sykes Group has seen both its revenue and profit decline.

In a statement accompanying the release of its results for the six months ended June 30, the group said it had faced a number of challenges during the period.

Revenue from continuing operations was £26.8m compared to £29.8m for the same period last year while operating profit was £4.3m (H12013: £6.4m).

Chairman Jacques Gaston Murray said: “During the first half of 2014, the group faced a number of challenges which had a detrimental impact on our trading performance for the period.”

The firm said that  in the UK the wet weather during the period stimulated the demand for its pump hire business which returned a strong operating performance.

“Demand for our air conditioning products started earlier than last year with a spell of warm weather in the early summer. Unfortunately all of these positive factors were more than offset by the decline in the heating business which was severely affected by the unseasonably mild winter conditions,” it said.

“The main factor affecting the segment’s result for this period was the poor performance of our trading in the Netherlands.

“As with the UK, the Netherlands had an unseasonably mild winter with a consequential impact on the heating business. The effect was made worse by a decline in the construction sector in the Netherlands, particularly the housing market, which is one of our principal trading sectors.

“The performance of our Belgian and Italian operations were also affected by the mild weather, albeit to a lesser extent.

Cash spent on new plant and equipment, primarily hire fleet assets, during the period  amounted to £1.3m and a further £0.4m from stock was also added to the hire fleet.

The firm says it has continued its policy of pursuing organic growth within its market sectors.

A new depot in Paris has been opened in the second half of 2014.