29 April 2025
By Maynard Paton
H1 2024 results summary for Andrews Sykes (ASY):
- A standstill performance, as “milder winter temperatures and a slow start to the summer cooling season” trimmed revenue by 1%, left profit unchanged and kept the dividend at 11.9p per share for the eleventh consecutive H1.
- Both the UK (revenue down 2%) and Europe (revenue down 4%) succumbed to the moderate weather, while fresh management continued the Middle East’s welcome turnaround (revenue up 38%).
- Controlled cost of sales, lower depreciation plus disposal gains led to a healthy 25% operating margin — the highest for an H1 since 2008 — to underline the group’s premium 24/7/365 “emergency” service.
- The very respectable accounts now showcase net cash at £21m, but the figure may have to reach £30m before the 91% Murray family shareholders declare another special dividend.
- A possible 12x P/E and 5.3% yield do not appear expensive as beneficial/extreme weather conditions are awaited, although the limited free float and distinctive corporate governance have rarely led to a premium rating. I continue to hold.