6th May 2015 08:47
LONDON (Alliance News) - Andrews Sykes Group PLC Wednesday reported lower profit and revenue for 2014 as its Benelux and UK heating hire businesses were hit by the warm weather early in the year and in the autumn.
The company, which hires air conditioning units, pumps, chillers, heating, ventilation and dehumidification units, reported a pretax profit of GBP11.8 million for 2014, down from GBP15.0 million in 2013, as revenue declined to GBP56.4 million from GBP61.1 million.
It said its UK pump business performed well, whilst its specialist chiller and boiler hire and air conditioning and ventilation businesses all traded ahead of 2013. However, this wasn't enough to offset a drop in demand for heating products in the UK and Benelux region and a decline in the construction sector in the Netherlands.
"Nevertheless, by the end of 2014, economic trading conditions throughout Europe had improved significantly and weather conditions had returned to seasonal normality. Consequently, we are now able to look forward to 2015 with a more optimistic outlook," it said.
"The group continues to face challenges in all of its geographical markets but our business remains strong, cash generative and well developed, with positive net funds. Improvements have already been seen in the Benelux region and we anticipate improved performances from our newly established, but currently small, businesses in France, Switzerland and Luxembourg. The board is therefore cautiously optimistic for further success in 2015 always being mindful of the favourable or adverse impact that the weather can have on our business," it added.
Andrews Sykes proposed a final dividend of 11.9 pence for 2014, flat on the final dividend for 2013.
Its shares were flat at 320.00 pence Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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