Strong performance in H1
Companies: Andrews Sykes Group plc
Andrews Sykes Group (LSE: ASY) released its half-year report this morning, announcing strong performance in the first half of the year. The group's revenue increased 7.2% to £30.3m, EBITDA increased 20.6% to £8.8m, and operating profit increased 28% to £6.4m. The groups' cash generation during the period was £7.1m.
According to today's announcement, the improvement was primarily due to favourable forex gains of £1.1m after the Brexit-induced weakening of Sterling.
Operations in the UK and Europe continued to grow during the period:
"Our pumping activity has increased when compared to 2015 and, despite a mild winter, our heating products have maintained revenue levels. Demand for our air conditioning products was in line with previous years."
Operations across Benelux also continued to see positive growth on last year's performance, and recently established businesses in France, Switzerland and Luxembourg traded in-line with management's expectations.
The company said:
"Management continue to safeguard the operational structure of the business. Cash spent on new plant and equipment, primarily hire fleet assets, amounted to £2.2 million and a further £0.7 million from stock was also added to the hire fleet.
We have continued our policy of pursuing organic growth within our market sectors and start-up costs of the new businesses discussed in previous Strategic Reports continue to be expensed as incurred.
Continuing investment in both our existing core businesses and the ongoing development of new operations and income streams will ensure that we remain in a strong position and will safeguard profitability into the future."
