Air conditioning specialist Andrews Sykes stabilises

BLACK Country heating and air conditioning hire specialist Andrews Sykes has staunched its profit decline and seen strong cash flows continue, according to its interim six monthly financial statement today.

Despite a revenue decline of more than £1m, the Wolverhampton-based group said normalised operating profit * has increased by £0.2 million, or 3.1%, from £6.6 million in the first half of 2009 to £6.8 million in the current period.

Chairman JG Murray said: “Our main hire and sales business in the UK and Northern Europe benefited from a long and cold end to the 2009 winter although, conversely, the second quarter of 2010 was abnormally dry.

Fortunately our ongoing strategy of diversification, particularly into less weather dependent specialist hire sectors, again proved beneficial.”

Mr Murray said the group generated strong cash flows: “The group has net funds of £2.8 million compared with a net debt position of £12.1 million at 30 June 2009 – an overall reduction in net debt of £14.9 million in a 12 month period. This clearly demonstrates the group’s positive cash flow ability.”

The group’s share buyback drive would continue, he confirmed.
In the six month period, 909,930 ordinary shares were bought back for £1,053,000, representing approximately 2.07% of shares in issue at the beginning of the financial year.