Andrews Sykes continuing operations solid as it continues to invest

Andrews Sykes Group reported a decent improvement in revenue from continuing operations in its preliminary results on Friday, with the figure rising to £71.3m from £65.39m year-on-year.

The AIM-traded firm said EBITDA from continuing operations was ahead at £22.85m in the 2017 calendar year, compared to £20.66m a year earlier, while operating profit rose to £17.59m from £15.82m.

Profit after tax was down slightly at £14.10m from £14.47m.

The company said basic earnings per share from total operations were also down at 33.37p, compared to 34.25p, while its interim and final dividend total was stable at 23.8p, after the board matched last year’s final dividend at 11.9p.

Net cash inflow from operating activities was £17.86m, up from £15.13m, with Andrews Sykes having net funds of £20.29m at year-end, rising from £17.67m 12 months earlier.

“Cost control, cash and working capital management continue to be priorities for the group,” said chairman JG Murray.

“Capital expenditure is concentrated on assets that give a good return and in total £6.9m was invested in the hire fleet this year, £0.7m more than last year and significantly more than the wasting depreciation charge of £5.1m.”

In addition, Murray said the group invested a further £1.0m in property, plant and equipment.

“These actions will ensure that the group's infrastructure and revenue generating assets are sufficient to support future growth and profitability.

“Hire fleet utilisation, condition and availability continue to be the subjects of management focus.”