Andrews Sykes shares surge on first half growth

Andrews Sykes Group posted its interim financial statement for the six months to 30 June on Thursday, with revenue from continuing operations rising to £30.29m, from £28.24m in the first half of 2015.

The AIM-traded firm reported EBITDA from continuing operations of £8.8m, up from £7.3m, and operating profit of £6.4m, increasing from £4.97m.

Basic earnings per share were up to 14.66p, from 8.83p, and the board declared an interim dividend equal to the prior comparative period, at 11.9p.

Net funds at period end stood at £15.39m, compared to £13.51m.

“Our main hire and sales business segment in the UK and Europe continued to expand during the first half of 2016,” said chairman Jacques Gaston Murray.

“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,” he added.

Murray said trading in the third quarter to date had continued to be positive.

“After a slow start to the summer Europe has experienced above average temperatures during September which continue to stimulate high demand for air conditioning products.

“Once again activity in the Middle East has remained consistent through the summer period, with trading levels ahead of last year in both Sharjah and Abu Dhabi.”

Murray said the board remained cautiously optimistic that the group will return an improved performance for the full year.

At 1600 BST, shares in Andrews Sykes were up 8.27% at 360p.