Andrews Sykes sees profits heating up
Andrews Sykes, the Wolverhampton-based air conditioning equipment firm, has seen profits and revenue rising over the last year.
A strong performance from its hire and sales businesses in the UK, Europe and the Middle Wast boosted revenue by 8.9% to £5.3 million.
That resulted in a 19.7% hike in operating profits to £15.8m. Alongside an increase in finance income, it resulted in pre-tax profts jumping more than 30% to £17.5m.
Based at St David’s Court in Union Street, the company is still headed by 97-year-old chairman Jacques Gaston Murray. In the company's full-year report today he wrote: "Whilst demand for our pumping and dehumidification products was stimulated by the floods in the North of England at the beginning of 2016, the absence of a hot summer did not help our air conditioning business.
"Generally the underlying performance was better than last year across the business sector due to robust operational management."
The company said there had also been a 'significant improvement' in the underlying trading performance of its overseas subsidiaries.
Mr Murray said: "Our hire and sales business in the Middle East had another excellent trading year. The operating profit for this business segment increased from £2.3m last year to £2.9m in 2016. Trading was strong throughout the region and our climate rental division returned a positive contribution to the business results."
The robust health of the business will see it pay out £5 million to shareholders in June. It has already paid out £37.7m to its investors over the last four years at the same time as cutting the amount it is borrowing from banks.
Looking ahead, Mr Murray said: "The group's policy to increase investments in new technologically advanced and environmentally friendly non-seasonal products will be continued into 2017. Investments will also continue in our traditional businesses to ensure we are ready to support our customers in times of extreme weather conditions.
"The group continues to face both challenges and opportunities in all of its geographical markets but our business remains strong, cash generative and well developed, with positive net funds. The board is therefore cautiously optimistic for further success in 2017, always being mindful of the favourable or adverse impact that the weather can have on our business."
