18 August 2022
By Maynard Paton
Results summary for Andrews Sykes (ASY):
- An encouraging performance, with profit recovering 35% following the pandemic to almost match the record set during FY 2018.
- Additional reporting disclosures revealed ASY’s main UK Hire division enjoyed sales rebounding 17% and a wonderful 34% margin.
- European operations expanded to 27% of group revenue following very strong progress, although Middle Eastern woes included an extra £1m provision.
- The books remain in good shape, with useful cash generation lifting net funds to £29m and perhaps increasing the possibility of another special dividend.
- An estimated 13-14x P/E and near-5% yield hardly seem expensive given the appealing financials, potential for an FY 2022 heatwave bonanza and scope for further European expansion. I continue to hold.