24 September 2025                                                                                                                   

ANDREWS SYKES GROUP PLC

("Andrews Sykes" or the "Company" or the "Group")

Half Year Results

Unaudited results for the six months ended 30 June 2025

Summary of Results

* Earnings before interest, taxation, depreciation, profit on the sale of plant and equipment and amortisation

Enquiries

CHAIRMAN'S STATEMENT

Overview of H1 2025

The Group's revenue for the six months ended 30 June 2025 (the "period") was £37.9 million, a decrease of £0.4 million compared with the same period in 2024. Unfavourable exchange rate movements in both the Euro and the Dirham decreased revenue by £0.3 million when compared to the prior period. Operating profit for the period was £10.0 million compared with £9.7 million for the same period in 2024.  This is a record level and the first time operating profit above £10.0 million has been generated in the first half of the year. Overall, net funds decreased by £0.2 million from £7.2 million as at 31 December 2024 to £6.9 million as at 30 June 2025. This was largely driven by an increased investment in our UK depot network following the £2.0 million acquisition of a new depot in the North West. As at 30 June 2024 net funds were £6.6 million. A further breakdown of net funds is given in note 8.

Operations review

Revenue in the period at Andrews Sykes Hire in the UK declined by 10.9% compared with the same period in 2024, with reduced pump revenue accounting for the majority of this decrease. With the UK experiencing one of the driest springs on record, and England experiencing the driest start to a year since 1976, weather-related revenue opportunities were negatively impacted.

Our businesses in Europe fared more positively, with revenue in the period increasing 8.1% compared to the same period in 2024. This was largely driven by a standout performance from our Dutch subsidiary, with revenue increasing 18.9% on the same period in 2024 and all product classes experiencing an increase in revenue. Our Italian business continued to grow, with revenue increasing 1.8% compared to 2024. Our Belgium revenue was impacted by a slow start to the summer cooling season, with total revenues decreasing 11.1% on 2024. Following the construction crisis in 2024, revenue in our Luxembourg business remained depressed and decreased 19.6% on 2024.  These challenges to revenue growth have led to the combined operating profit for the UK and European hire businesses decreasing £0.4 million compared to the level achieved in 2024.   

Andrews Air Conditioning and Refrigeration, our UK air conditioning installation business, continues to experience difficult trading conditions with a reduction in service and maintenance revenue. Overall revenue for this business decreased 24.5% in the period compared to the first six months of 2024. Overheads have been reduced to right-size the business which in turn has resulted in a small operating profit compared to a small loss in the prior period.

Khansaheb Sykes, our business based in the UAE, continues to experience an improvement in trading performance and the recent trend of revenue growth. Revenue increased 38.0% versus the first half of 2024, aided by a one-off large pump sale contract worth in excess of £1.0 million. Core underlying hire revenues, excluding pump sales, have increased 15.0% to the first half of 2024. The increased turnover in the UAE has resulted in operating profit being £0.3 million higher than in the first half of 2024. Our newly incorporated subsidiary in Saudi Arabia, under common management with Khansaheb Sykes, has taken its first pump sale order with the revenue to be recognised on delivery in the second half of the year. Management remain confident of the future growth prospects of this market.

Profit for the period and Earnings per Share

Profit before tax for the period was £10.0 million compared with £9.7 million in the same period last year. This increase is attributable to the £0.3 million increase in operating profit, with finance income of £0.5 million and finance costs of £0.5 million both being comparable to the prior period.

The total tax charge for the period decreased by £0.1 million to £2.6 million (2024: £2.7 million), an effective tax rate of 25.8% (2024: 27.4%). The decrease in the overall effective rate of tax is driven by an increase in profits generated in the UAE which are subject to a lower rate of corporation tax than the UK and Europe.

Profit after tax in the period was £7.4 million (2024: £7.1 million). Basic earnings per share increased by 0.87 pence, or 5.1%, to 17.77 pence (2024: 16.90 pence) reflecting this increase in profit.

Dividends

The final dividend of 14.00 pence per ordinary share for the year ended 31 December 2024 was approved by members at the AGM held on 17 June 2025. Accordingly, on 20 June 2025 the Company paid dividends totalling £5.9 million to shareholders on the register as at 23 May 2025.

The Board continues to adopt the policy of returning value to shareholders whenever possible. The Group remains profitable, cash generative and financially strong. Accordingly, the Board has decided to declare an interim dividend of 11.90 pence per ordinary share (2024: 11.90 pence) which in total amounts to £5.0 million. The interim dividend will be paid on 31 October 2025 to shareholders on the register as at 3 October 2025.

Outlook

Trading in the second half of the year to date has broadly followed the trend of the first half, with continued softness in the UK market being offset by strong performances in Europe and the Middle East. Whilst trade in the UK has been more subdued than in the comparable period of last year, with challenging market conditions prevailing, the Group's focus on continued cost control and operational efficiency will limit the impact. Our European businesses have benefitted from a strong start to the summer season with warm June and July temperatures presenting good revenue opportunities for the Group in these jurisdictions. Several of our European businesses have set record revenue run rates during July and continue to trade positively compared to the prior period. The Middle East continues to trade comparatively positively in the second half of the year as it did in the first half of the year. Overall, the Board remains confident of delivering full year results in line with its expectations, with the geographical diversification of the Group mitigating the risk of any one market underperforming. In the longer term, the Board remains optimistic that the business will continue to improve but are mindful of the impact that adverse macro-economic issues can pose to the business and customer demand.  

JJ Murray

Executive Chairman

23 September 2025

Consolidated Income Statement

for the six months ended 30 June 2025

^* Earnings before interest, taxation, depreciation, profit on sale of plant and equipment and amortisation.

Consolidated Statement of Comprehensive Total Income

for the six months ended 30 June 2025

Consolidated Balance Sheet

At 30 June 2025

Consolidated Cash Flow Statement

for the six months ended 30 June 2025

Consolidated Statement of Changes in Equity

for the six months ended 30 June 2025

Notes to the Interim Financial statements

1              General information and accounting policies

These interim financial statements have been prepared in accordance with the recognition and measurement principles of international accounting standards in conformity with the requirements of the Companies Act 2006.

The information for the 12 months ended 31 December 2024 does not constitute the Group's statutory accounts for 2024 as defined in Section 434 of the Companies Act 2006. Statutory accounts for 2024 have been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These interim financial statements, which were approved by the Board of Directors on 23 September 2025, have not been audited or reviewed by the auditors.  

Basis of preparation

The interim financial statement has been prepared using the historical cost basis of accounting except for:

(i)            Properties held at the date of transition to IFRS which are stated at deemed cost;

(ii)           Assets held for sale which are stated at the lower of (i) fair value less anticipated disposal costs and (ii) carrying value;

(iii)          Derivative financial instruments (including embedded derivatives) which are valued at fair value; and

(iv)          Pension scheme assets and liabilities calculated at fair value in accordance with IAS 19

The annual financial statements of the Group are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the AIM Rules issued by the London Stock Exchange.

Accounting policies

The principal accounting policies applied in preparing the interim Financial Statements comply with international accounting standards in conformity with the requirements of the Companies Act 2006 and are consistent with the policies set out in the Annual Report and Accounts for the year ended 31 December 2024.

No new standards or interpretations issued since 31 December 2024 have had a material impact on the accounting of the Group.

Functional and presentational currency

The financial statements are presented in pounds Sterling because that is the functional currency of the primary economic environment in which the group operates.

2              Revenue

An analysis of the Group's revenue is as follows:

The geographical analysis of the Group's revenue by destination is not materially different to that by origination.

3              Finance income and costs

4              Income tax expense

The total effective tax charge for the financial period represents the best estimate of the weighted average annual effective tax rate expected for the full financial year applying tax rates that have been substantively enacted by the balance sheet date. UK corporation tax has been provided at 25% being the tax rate in the UK for 2025. Deferred tax has been calculated based on the rates that the directors anticipate will apply when the temporary timing differences are expected to reverse.

5              Earnings per share

Basic earnings per share

The basic figures have been calculated by reference to the weighted average number of ordinary shares in issue and the earnings as set out below. There are no discontinued operations in any period.

Diluted earnings per share

There were no dilutive instruments outstanding as at 30 June 2025 or either of the comparative periods and therefore there is no difference in the basic and diluted earnings per share for any of these periods. There were no discontinued operations in any period.

6              Dividend payments

Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2025 were as follows:

The above dividend was charged against reserves during the 6 months ended 30 June 2025.

On 23 September 2025 the directors declared an interim dividend of 11.90 pence per ordinary share which in total amounts to £4,981,000. This dividend will be paid on 31 October 2025 to shareholders on the register as at 3 October 2025 and will be charged against reserves in the second half of 2025.

Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2024 were as follows:

The above dividend was charged against reserves during the 6 months ended 30 June 2024.

Dividends declared and paid on ordinary one pence shares during the 12 months ended 31 December 2024 were as follows:

The above dividends were charged against reserves during the 12 months ended 31 December 2024.

7              Pensions

The Group closed the UK Group defined benefit pension scheme to future accrual as at 29 December 2002. The assets of the defined benefit pension scheme continue to be held in a separate trustee administered fund. Over recent years the Group has taken steps to manage the ongoing risks associated with its defined benefit liabilities including completing an insurance buy-in of the scheme meaning the scheme has been derisked in terms of investment, interest rate, inflation and longevity risks. The buy-in secures an insurance asset that fully matches, subject to final price adjustments, the remaining pension liabilities of the scheme.

As at 30 June 2025 the Group had a net defined benefit pension scheme surplus, calculated in accordance with IAS 19 using the assumptions as set out below, of £2,451,000 (30 June 2024: £2,514,000; 31 December 2024: £2,382,000). The asset has been recognised in the financial statements as the directors are satisfied that it is recoverable in accordance with IFRIC 14.

The last formal triennial funding valuation was as at 31 December 2022. The valuation, including a revised schedule of

contributions, was agreed between the pension scheme trustees and the Board of directors in December 2023 and was effective from 1 January 2024. In accordance with this schedule of contributions, the group is no longer required to make any regular contributions into the scheme. Consequently, the Group expects to make total contributions to the defined benefit pension scheme of £Nil during 2025.

Assumptions used to calculate the scheme surplus

The IAS 19 figures are based on a number of actuarial assumptions as set out below, which the actuaries have confirmed they consider appropriate. 

The demographic assumptions used for 30 June 2025, were the same as used in 31 December 2024, 30 June 2024 and the last full actuarial valuation performed as at 31 December 2022.

Assumptions regarding future mortality experience are set based on advice in accordance with published statistics. The mortality table used at 30 June 2025, 30 June 2024 and 31 December 2024 is 100% S3PA CMI2023 with a 1.25% per annum long term improvement for both males and females, heavy tables for males and medium tables for females.

Valuation

The defined benefit scheme funding has changed under IAS 19 as follows:

8              Net funds and movement in financing liabilities

9              Distribution of interim financial statements

Following a change in regulations in 2008, the Company is no longer required to circulate this half year report to shareholders. This enables us to reduce costs associated with printing and mailing and to minimise the impact of these activities on the environment. A copy of the interim financial statements is available on the Company's website, www.andrews-sykes.com.