13 October 2020
By Maynard Paton
Results summary for Andrews Sykes (ASY):
- “Resilient” half-year figures that showed revenue down 4% and profit up 2%.
- No light was shed on how ASY could sustain its performance when 50% of UK employees were furloughed.
- The statement confirmed bumper cash flow of £14m that prompted a special £10m dividend during the summer.
- The books remain healthy with high margins and net cash, although the pension scheme might require extra funds.
- A possible P/E of 17 does not appear completely outrageous for a seemingly pandemic-resistant business. I continue to hold.