UK rental company Andrew Sykes Group has reported a drop in revenue and profit for the first half of the year, after facing what it has called "challenges which had a detrimental impact on trading performance".
The heating, ventilation, air conditioning and pump hire specialist posted revenue for the first six months of 2014 of £26.8 million (€33 million), down £3 million (€3.8 million) on 2013’s figure of £29.7 million (€38 million).
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) was also down, at £6.5 million (€8.3 million), compared to £8.3 million (€10.6 million) on 30 June, 2013.
Operating profit dropped £2.1 million (€2.7 million) from £6.4 million (€8.2 million) in the first half of 2013 to £4.3 million (€5.5 million) for the six months ended 30 June, 2014.
Despite its declines in revenue and profit, Andrew Sykes Group said it continued to invest in its fleet and assets. Cash spent on new plant and equipment, primarily hire fleet assets, amounted to £1.3 million (€1.6 million) and a further £400,000 (€512,000) from stock was also added to the hire fleet.
JG Murray, chairman of Andrew Sykes Group, said, “We have continued our policy of pursuing organic growth within our market sectors and start up costs of the new businesses discussed in the 2013 Strategic Report continue to be expensed as incurred.
"A new depot in Paris, France, has been opened in the second half of 2014 and continuing investment in both our existing core businesses and the ongoing development of new operations and income streams will ensure that we remain in a strong position and will safeguard profitability into the future."