07 March 2022
By Maynard Paton
Results summary for Andrews Sykes (ASY):
- Following the disappointing finish to FY 2020, a better-than-expected H1 performance with revenue and profit up 7% and 14% respectively.
- Progress was buoyed by ASY’s European operations, which witnessed sales rebound 29% to set a new divisional H1 record.
- A restatement revealed previously undisclosed furlough income had represented 12% of H1 2020 profit.
- The books remain in good shape, with a robust 22% margin and net funds at a sizeable £22m, although extra pension contributions are still required.
- A possible P/E of 13.5 and yield of 5% hardly seem expensive for the appealing financials and potential of further European expansion. I continue to hold.