**Summary of Andrews Sykes Group PLC Half-Year Report (H1 2025)**
**Financial Highlights**
**Revenue** £37.9 million (H1 2025), a slight decrease of £0.4 million from H1 2024 (£38.4 million), primarily due to unfavourable exchange rates and reduced pump revenue in the UK.
**Operating Profit** £10.0 million, up from £9.7 million in H1 2024, marking a record level for the first half of the year.
**Profit After Tax:** £7.4 millioncompared to £7.1 million in H1 2024.
**Basic Earnings per Share** 17.77 pence, up from 16.90 pence in H1 2024.
**Net Funds** £6.9 million, down from £7.2 million at the end of 2024, largely due to a £2.0 million investment in a new UK depot.
**Interim Dividend** 11.90 pence per share, unchanged from H1 2024.
**Operational Performance**
**UK** Revenue declined by 10.9% due to reduced pump revenue, impacted by one of the driest springs on record.
**Europe** Revenue increased by 8.1%, driven by strong performance in the Netherlands (+18.9%) and Italy (+1.8%). Belgium and Luxembourg saw declines due to a slow summer cooling season and construction crisis, respectively.
**Middle East (UAE)** Revenue surged by 38.0%, aided by a £1.0 million pump sale contract. Core hire revenues grew by 15.0%.
**Air Conditioning & Refrigeration (UK)** Revenue fell by 24.5% due to reduced service and maintenance revenue, but overheads were cut, resulting in a small operating profit.
**Strategic Developments**
Acquired a new depot in the North West UK for £2.0 million, expanding the UK depot network.
Established a new subsidiary in Saudi Arabia, with the first pump sale order expected to contribute revenue in H2 2025.
**Outlook**
**UK** Soft market conditions persist, but cost control and operational efficiency are mitigating impacts.
**Europe** Strong summer season performance, with several businesses setting record revenue run rates in July.
**Middle East** Continued positive trading, with management confident in future growth prospects.
**Overall** The Board remains confident in delivering full-year results in line with expectations, supported by geographical diversification.
**Key Metrics**
**EBITDA:** £13.6 million (H1 2025)up from £13.1 million in H1 2024.
**Cash and Cash Equivalents** £23.4 million, up from £21.1 million in H1 2024.
**Total Equity:** £47.9 millionup from £41.6 million in H1 2024.
**Conclusion**
Andrews Sykes Group PLC demonstrated resilience in H1 2025, achieving record operating profit despite challenges in the UK market. Strong performances in Europe and the Middle East, coupled with strategic investments and cost management, position the Group well for continued growth. The Board remains optimistic about the long-term outlook, despite macroeconomic uncertainties.
| Metric | Six months ended 30 June 2025 (£000) | Six months ended 30 June 2024 (£000) | Change (£000) | Change (%) |
|---|---|---|---|---|
| Revenue from continuing operations | 37,944 | 38,387 | (443) | -1.15% |
| EBITDA from continuing operations | 13,564 | 13,139 | 425 | 3.23% |
| Operating profit | 10,003 | 9,726 | 277 | 2.85% |
| Profit for the financial period | 7,439 | 7,075 | 364 | 5.15% |
| Cash and cash equivalents | 23,412 | 21,108 | 2,304 | 10.92% |
| Net funds | 6,931 | 6,645 | 286 | 4.30% |
| Right-of-use lease obligations | (16,481) | (14,463) | (2,018) | 13.95% |
Key Observations:
- Revenue decreased slightly by 1.15% year-on-year, primarily due to unfavourable exchange rate movements and reduced pump revenue in the UK.
- Operating profit increased by 2.85%, reaching a record level above £10.0 million for the first time in the first half of the year.
- Net funds increased by 4.30%, despite a £2.0 million acquisition of a new depot in the North West.
- Right-of-use lease obligations increased by 13.95%, mainly due to new leases entered into during the period.