30 April 2023
By Maynard Paton
Results summary for Andrews Sykes (ASY):
- A satisfactory performance, with H1 revenue reaching a new £38m high, H1 profit gaining 8% and the welcome declaration of a £7m special dividend.
- Assisted by strong Italian progress, European revenue climbed 17% to represent 27% — a record proportion — of the total top line.
- A healthy 22% margin and favourable cash conversion lifting net cash to £34m left the accounts in good shape.
- A bombshell delisting on AIM brings greater attention to ASY’s 90% family ownership and the associated ‘relationship agreement’ small-print.
- The 10% free float may explain why the shares yield a useful 4.7% despite the robust financials, upbeat company-blog commentary and potential further European expansion. I continue to hold.