STELLAR RESULTS FOR HISTORIC LISTED FIRM
Andrew Sykes Group, the Wolverhampton-based heating and air-conditioning equipment hire company, has reported the second-best financial performance in its history.
The listed business, which was founded in 1857, has posted a revenue of £77.2m and pre-tax profits of £18.5m for the 12 months to 31 December 2019.
The figures come after the company achieved its best-ever results in 2018, with a revenue of £78.5m and pre-tax profits of £21m.
A statement said: “Andrews Sykes Group remains resilient as sectors in which we trade have shown continuous demand whilst facing an unprecedented challenge in the form of the coronavirus pandemic.
“We are thankful and proud of our team members who continue to respond as essential service providers.
“The group’s trading in the first quarter of 2020 started positively, especially in the UK where the pump hire business benefited from the recent abnormally wet weather while March was unfavourably affected by the pandemic.
“As many of our products are sourced from China, our supply chain was only mildly affected as most of our goods had already been delivered before the virus spread.
“Customer demand in specific geographical areas of our business has been affected more than others. Our relatively small businesses in Italy and France faced strict lockdowns in late February and March, and the UK introduced a more flexible lockdown on 23 March 2020.
“The Benelux countries have adopted a similar approach, we are able to continue to trade, albeit at a reduced level and with increased health and safety and social distancing measures. In the UAE trading is also continuing but at a lower level than in the past.
“The result for 2019 was the second best on record following the record result in 2018, and cash reserves are robust.
“We have modelled with caution the effects of sales decline along with other factors to ensure the group remains within its bank facilities including cash flow forecasts for a period in excess of 12 months.
“The group has cash reserves beyond May 2021 without renegotiating its bank facilities.
“The board therefore considers the group is well positioned to manage through the impact of the pandemic considering its strong balance sheet and significant net cash position.”