12 May 2026

ANDREWS SYKES GROUP PLC

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

Final Results

for the year ended 31 December 2025

Summary of Results

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

Enquiries

CHAIRMAN'S STATEMENT

Overview and outlook

Andrews Sykes' overall trading remained solid during 2025 and we are pleased to report that the Group as a whole has again delivered an increased operating profit. We are, as always, thankful for and proud of our team members who have made this possible by continuing to provide our customers with an essential 24 hour service offering.

However, 2025 was not without its challenges. Revenue opportunities in our UK business were constrained by the local macro-economic environment and, in particular impacting demand for pumps, by summer drought conditions in many areas as England experienced its driest Spring in 130 years. The Group's businesses in Europe and the Middle East both recorded robust growth, mitigating the revenue decline in the UK, and highlighting the strength of our geographical diversification. This, along with our long-standing commitment to tight cost control and leveraging our strong relationships with customers, in particular our key accounts, allowed the Group to increase its overall revenues and operating profit over the previous year.

The year marked a key milestones for our Group in the Middle East. We formally incorporated a new subsidiary in Saudi Arabia in order to take advantage of the well publicised construction boom resulting from that country's efforts to diversify its economy. Our new subsidiary opened in early 2025 and is being managed by our UAE management team which has done such a good job in turning around our existing business in the Middle East. Whilst generating revenue of only £0.1 million during 2025, we believe our exposure to this market represents a significant growth opportunity in 2026 and beyond.

Andrews Air Conditioning & Refrigeration Ltd., our fixed air conditioning installation business in the UK, ceased trading in the second half of the year. After experiencing declining revenues and low profitability for several years, management decided that the resources required for that business are better utilised on supporting the growing areas of our Group.

We remain encouraged by how our highly experienced management team has consistently adapted the Group to overcome market and operational issues and take advantage of new revenue opportunities.

Positive trading momentum experience towards the end of 2025 has continued into the current financial year, with overall performance in the year to date in line with the Board's expectations. Whilst the situation in the Middle East has not currently had a significant impact on trading activities in that region, the Board continues to monitor the situation and will respond to any impact it may have on operations. The Group is confident in its core markets, its revenues and its profits.

2025 trading summary

The Group's revenue for the year ended 31 December 2025 was £76.5 million, an increase of £0.6 million, or 0.7%, compared with last year. Excluding the results of the now discontinued UK fixed air conditioning business, underlying revenues increased from £74.4 million to £75.6 million, an increase of £1.2 million or 1.6%. Operating profit increased by 1.2%, or £0.3 million, to £23.5 million from £23.2 million last year. Operating profit in 2025 was enhanced by a £1.1 million profit on the disposal of a property in the UK, with the funds being re-invested into a new £2.1 million depot located in the Northwest of the UK. Despite the difficult year experienced by the UK business, this large reinvestment demonstrates our long-term confidence in the UK market. Operating profit in the prior year was enhanced by a net £0.8 million reduction in provisions due to commercial negotiations for the early exit of previously vacated lease properties. In the year under review, net provisions increased by £0.6 million. Excluding both the impact of the one-off profit on disposal of property and the impact of provision movements, operating profit increased from £22.4 million in 2024 to £23.0 million in 2025, an increase reflective of the increase in underlying revenues. Revenue for the second half of the year increased by 2.7%, or £1.0 million, on the corresponding period last year and underpins the solid progress made during the current year to date.

Decreasing interest rates in the UK and Europe over 2025 contributed to decreased returns on cash reserves with net finance income remaining flat at nil in both the year under review and the prior year. Profit before taxation was £23.4 million (2024: £23.2 million) and profit after taxation was £18.1 million (2024: £16.8 million).

The Group has reported an increase in basic earnings per share of 3.07p, or 7.7%, from 40.13p in 2024 to 43.20p in 2025, a record result for the Group. This is mainly attributable to the above mentioned increase in the Group's overall operating profit and a reduced overall tax charge.

The Group continues to generate strong net cash inflows. Net cash inflow from operating activities was £22.8 million compared with £20.3 million last year.

Cost control, cash generation and working capital management continue to be priorities for the Group. Overdue debt has been decreased significantly during the year with debt not past due accounting for 79% of total receivables in the year under review versus 49% in the prior year. Capital expenditure is concentrated on assets with strong returns; in total £5.5 million was invested in the hire fleet during the year. In addition, the Group invested a further £2.7 million in property, plant and equipment. These actions will ensure that the Group's infrastructure and revenue generating assets are sufficient to support anticipated future growth and profitability. Hire fleet utilisation, condition and availability continue to be the subjects of management focus.

Operating performance

The following table splits the results between the first and second half years:

The above table reflects the trading performance of the Group as the year progressed, with second half revenues increasing £1.0 million on prior year and £0.6 million on first half revenues.

Revenue at our main UK business decreased to £39.4 million from £43.1 million last year, with operating profit decreasing from £15.4 million to £11.6 million. These results were constrained by the local macro-economic environment and, in particular impacting demand for pumps, summer drought conditions in many areas as England experienced its driest Spring in 130 years. Heating hire was down 10.2% on the prior year. Pump hire declined 10.7% on the prior year, ending seven consecutive years of growth.

Revenue and operating profit at our European businesses reached record levels in 2025. Revenue increased to £26.8 million from £23.6 million last year and operating profit increasing from £8.2 million to £11.7 million in 2025. Strong summer temperatures increased revenue opportunities in both Northern and Southern Europe, with air conditioning revenues 52.3% higher in Italy and 33.1% higher in the Netherlands as compared to 2024.  European revenue growth was primarily driven by £2.0 million growth in the Netherlands and £0.7 million growth in Italy.

The revenue of our hire and sales business in the Middle East increased to £9.4 million from £7.7 million last year, and operating profit (including a £0.2 million first year loss at our new operation in Saudi Arabia) increased to £1.5 million from £1.1 million last year. The result continues the strong turnaround driven by local management since their appointment in the summer of 2023. The increased operating profit is reflective of the increased revenue with expected credit losses remaining under control.  Management are confident of this upwards trend continuing.

Our fixed installation and maintenance business in the UK saw a decrease in revenue to £0.9 million from £1.6 million last year, resulting from the decision to cease trading in the second half of the year. An operating profit of £0.1 million for the year under review reflects the successful cessation of trading and collection of outstanding debts resulting in the modest unwinding of various balance sheet accruals.

Central overheads remain under control and were flat at £1.5 million in the year under review.

Profit for the financial year

Profit before tax was £23.4 million this year compared with £23.2 million last year; an increase of £0.2 million. This is largely attributable to the £0.2 million increase in operating profit, partially reduced by lower levels of interest receivable.

Tax charges for the year decreased to £5.3 million from £6.4 million in 2024. The overall effective tax rate decreased from 27.6% in 2024 to 22.8% this year, primarily driven by reduced UK tax as a result of changes to the UK owned property portfolio and an increased amount of operating profit being generated in lower tax jurisdictions. Profit for the financial year was £18.1 million compared with £16.8 million last year.

Defined benefit pension scheme

As reported in previous years, the Company has successfully de-risked its defined benefit scheme by completing a buy-in deal. This transaction means that future liabilities are fully de-risked and the Company will not be required to contribute significant cash payments into the pension scheme to fund adverse liability movements. As such no cash contributions into the scheme were made during 2025. The defined benefit pension scheme surplus after the application of an asset restriction has decreased from £1.8 million as at 31 December 2024 to £1.5 million at 31 December 2025, primarily as a result of experience adjustments associated with work undertaken in relation to the buy-in deal during the year under review.

Equity dividends

The Company paid two dividends during the year. On 20 June 2025, a final dividend for the year ended 31 December 2024 of 14.0 pence per ordinary share was paid. This was followed on 31 October 2025 by an interim dividend for 2025 of 11.9 pence per ordinary share. Therefore, during 2025, a total of £10.8 million in cash dividends was returned to our ordinary shareholders.

The Board has decided to propose a final dividend for the year ended 31 December 2025 of 14.0 pence per ordinary share. If approved at the forthcoming Annual General Meeting, this dividend, which in total amounts to £5.9 million, will be paid on 19 June 2026 to shareholders on the register as at 22 May 2026.

Share buybacks

As at 11 May 2026, there remained an outstanding general authority for the directors to purchase up to 5,232,343 ordinary shares, which was granted at last year's Annual General Meeting.

The Board believes that it is in the best interests of shareholders to retain this authority in order that market purchases may be made in the right circumstances and if the necessary funds are available. Accordingly, at the next Annual General Meeting, shareholders will be asked to vote in favour of a resolution to renew the general authority to make market purchases of up to 12.5% of the ordinary share capital in issue.

Net funds

Net funds increased by £6.0 million from £7.2 million at 31 December 2024 to £13.2 million at 31 December 2025. Net funds include cash and cash equivalents of £28.4 million (2024: £23.2 million) less right-of-use lease obligations of £15.2 million (2024: £16.0 million).

JJ Murray

Executive Chairman

11 May 2026

Consolidated Income Statement

for the year ended 31 December 2025

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

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2025

Consolidated Balance Sheet

At 31 December 2025

Consolidated Cash Flow Statement

for the year ended 31 December 2025

Consolidated Statement of Changes in Equity

for the year ended 31 December 2025

Notes to the Interim Financial statements

1              Basis of preparation

Whilst the information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. Therefore, the financial information set out above does not constitute the company's financial statements for the 12 months ended 31 December 2025 or 31 December 2024 but it is derived from those financial statements.  

2              Going concern

The directors are required to consider the application of the going concern concept when approving financial statements. The principal element required to meet the test is sufficient liquidity for a period from the end of the year until at least 12 months subsequent to the date of approving the accounts. Management has prepared a detailed "bottom-up" budget including profit and loss and cash flow for the financial year ending 31 December 2026 and has extrapolated this forward until the end of May 2027 in order to form a view of an expected trading and cash position for the required period. This base level forecast fully incorporates management's expectations around the performance of the group and was prepared on a cautiously realistic basis. This forecast takes into account specific factors relevant in each of our businesses. These 2026 forecasts have been reviewed and approved by the Board.

Whilst profitability and cash flow performance to the end of March 2026 has been close to expectation, in order to further assess the company's ability to continue to trade as a going concern, management have performed an exercise to assess a reasonable but plausible downside scenario and the impact of this on profit and cash. For the purposes of the cash forecast,  the below assumptions have been incorporated into this forecast:

•    Normal level of dividends will be maintained during the 12 months subsequent to the date of approving the accounts;

•    No new external funding sought;

•    Hire turnover and product sales reduced by 23% versus budget- a variance level seen across any individual product class for 2025 and 2026 actual results versus budgets;

•    All overheads continue at the base forecast level apart from overtime and commission and repairs and marketing, which are reduced by 25% and travel costs reduced by 12.5%;

•    All current vacancies are filled immediately; and

•    Capital expenditure is reduced by 25%.

The above factors have all been reflected in the forecast for the period ending 12 months subsequent to the date of approving the accounts. The board consider this scenario to be extremely unlikely. The headline numbers at a group level would be:

•    Group turnover for the 12 months ending 31 December 2026 is forecast to be adverse to the 31 December 2025 figures. Operating profit is below the profit for 2025.

•    Closing net funds as at the end of May 2027 are forecast to be comparable to the level reported at 31 December 2025.

Under this reasonable but plausible downside scenario, the group has sufficient net funds throughout 2026 and up to the end of May 2027, to continue to operate as a going concern.

A final sensitivity analysis was performed in order to assess by how much group turnover could fall before further external financing would need to be sought. Under this scenario it was assumed that:

•    Capital expenditure falls proportionately to turnover;

•    Temporary staff are removed from the group; and

•    Various overheads decrease proportionately with turnover.

Given these assumptions, and for modelling purposes only, assuming dividends are maintained at normal levels, group turnover could fall to below £40 million on an annualised basis without any liquidity concerns. Due to the level of confidence the Board has in the future trading performance of the group, this scenario is considered highly unlikely to occur.

The group has considerable financial resources and a wide operational base. Based on the detailed forecast prepared by management, the Board has a reasonable expectation that the group has adequate resources and management experience to continue to trade for the foreseeable future, at least 12 months from the date of approving these financial statements, even in the reasonable but plausible downside scenario identified by the group. Management have also considered the risks previously identified around climate change and their potential impact on the forecasts produced and have not identified any significant risks that impact the going concern assumption. Accordingly, the Board continues to adopt the going concern basis when preparing this Annual Report and Financial Statements.

3              International Financial Reporting Standards (IFRS) adopted for the first time in 2025

There were no new standards or amendments to standards adopted for the first time this year that had a material impact on the results of the group. The prior year comparatives have not been restated for any changes in accounting policies that were required due to the adoption of new standards this year.

4              Distribution of Annual Report and Financial Statements

The group expects to distribute copies of the full Annual Report and Financial Statements that comply with IFRSs by 18 May 2026 following which copies will be available either from the registered office of the company; Unit 601 Axcess 10 Business Park, Bentley Road South, Wednesbury, WS10 8LQ; or from the company's website; www.andrews-sykes.com. The Annual Report and Financial Statements for the 12 months ended 31 December 2024 have been delivered to the Registrar of Companies and those for the 12 months ended 31 December 2025 will be filed at Companies House following the company's Annual General Meeting. The auditor has reported on those financial statements; the report was unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain details of any matters on which they are required to report by exception.

5              Date of Annual General Meeting

The group's Annual General Meeting will be held at 3.00 p.m. on Tuesday, 16 June 2026 at Unit 5, Peninsular Park Road, London, SE7 7TZ.