Andrews Sykes Group, a UK-based rental company specialising in pumping, heating and cooling solutions, has reported 10.2% growth in revenues in 2018 to £78.6 million.
This had a more than proportionate effect on operating profit, which rose 17.6% to £20.7 million in 2018, from £17.6 million in 2017. The growth, which follows an 11.2% increase last year, was said by the company’s Chairman, Jacques-Gaston Murray, to reflect “strong and improved performances from both our hire and sales businesses in the UK and Europe, and a strong and stable performance from our business in the Middle East.”
Andrews Sykes’ EBITDA (earnings before interest, taxes, depreciation and amortization) came to £26.7 million for the period, up from £22.9 million in the previous year, and profit after tax rose from £14.1 million in 2017 to £17 million in 2018.
Murray said the group was continuing to prioritise cost control, cash and working capital management; “Capital expenditure is concentrated on assets that give a good return and in total £7.5 million was invested in the hire fleet this year, £0.6 million more than last year and significantly more than the wasting depreciation charge of £5.9 million.”
In addition, a further £1.1 million was invested 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,” said Murray.
Looking ahead, Andrews Sykes intends to further increase investment in new technologically advanced and environmentally friendly non-seasonal products over the coming year, while also continuing to invest in its traditional business.
Murray said, “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 remains mindful of the favourable or adverse impact that the weather can have on our business.”