Andrews Sykes Share Discussion Threads

[thorpematt] 28/7/2022 22:25

pireric
Good work, an interesting read.

[pireric] 28/7/2022 19:37

I think Andrews Sykes' management's internal budgets for 2022 are for at least ~7% revenue growth (as a lower bound), with those expectations potentially set back in March

It's quite rare to be able to glean some insight on internal budgeting in an annual report, but since the new CFO has been in place, that has been possible with ASY. Credit to anyone here who has spotted this, because it's quite obscure. But since ASY never give any guidance it could be more useful than normal.

2021 potential budget - If you look at the annual report for 2020 that was published in May 2021 they set out a reasonable worst case trading scenario for 2021 in the going concern section of the report. One of the conclusions from that was that such a reasonable worst case scenario for 2021 would involve revenue between March 2021 and May 2022 being reduced by over £15m when compared to their budget. One of the key conclusions of this stress test was that they still expected (back in March 2021 when the section was probably written) that "group turnover for the 12 months ending 31 December 2021 is forecast to be comparable but above the 31 December 2020 figures." That makes sense to me; 2020 was not a great year with covid, and even a reasonable worst case scenario would see 2021 revenues higher than 2020. Backsolving and making some assumptions, that internal budget from March 2021 makes broad sense.

2022 potential budget - What I find far more interesting is this year's reasonable worst case scenario stress testing. The stress test this time is that "hire turnover and product sales reduce by 12% versus budget" (I'm pretty sure for March 2022-May 2023). If that assumption is made, the conclusion is that "group turnover for the 12 months ending 31 December 2022 is forecast to be comparable to the 31 December 2021 figures." To me, that is very interesting; if I crack the maths on that, at the low end of the spectrum and saying -2% still equals 'comparable' I think it implies that the internal budget is for at minimum 7% odd growth for 2022 in the central non worst case scenario (2 months of performance wil have been banked at the time of writing). Where comparable means 0%, you get to central scenario growth being much closer to 10%.

If any of this proves right, it should mean ASY are on for a record year of revenues in 2022 and it should kick the perception of some investors that this is not a growing business. This seems a nice setup with the stock back at the low side of its multi year range. I would stress again that these implications seem to have been likely to have been made in March 2022, prior to the hot Summer we have had so far in Europe.

Eric

[solooiler] 26/7/2022 21:25

“We always go the extra mile for our clients” must be one of the most common claims made by businesses in the UK, but how many truly live up to that billing when their services are stretched due to circumstances beyond their control?

It’s fair to say that last week’s record-breaking temperatures put quite a strain on our resources. Staying on top of the online enquiries and inbound telephone calls was challenging enough, without the small matter of having to ensure each air conditioning hire was agreed, coordinated and delivered in as timely a fashion as possible.

While many companies would have faltered, our teams around the country adopted a siege mentality in a bid to combat the seemingly never-ending flow of requests.

hxxps://www.andrews-sykes.com/blog/unprecedented-heat-prompts-us-to-pull-out-all-the-stops/

Oil fuelled heaters are going to fly off shelves in the winter too

[solooiler] 23/7/2022 10:36

The winter was more milder but this is the perfect summer period for Sykes UK air conditioning, Ireland, Netherlands , Belgium, Luxembourg, France, Italy, Switzerland. I am roasting. Are there any more lively traded global warming / air conditioning stocks?

[cwa1] 18/7/2022 12:11

Wonder if air con/ventilation systems will be flowing out the doors quickly these days? Enough to give them a suitable boost, or just business as usual?

[km18] 05/5/2022 14:44

Andrew Sykes Group is focused on hiring, selling and installing a range of equipment, such as heating, air conditioning, drying and ventilation equipment. Given the wide range of products manufactured, the firm managed to boost profits to £19.5m from £15.5m last year. As a result, Andrew Sykes optimised EPS growth by 19.4%. Subsequently, the group generated robust cashflows, since net cash surged to £32.44m from £24m, resulting in a solid P/FCF of 14.2x, which was above peers. This plausible market news was effectively incorporated into the firm’s P/B of 3.78, hence the firm is likely to surge in value. Consequently, it implies that Andrew Sykes managed to capture intrinsic value. Furthermore, the group adopted a conservative dividend payout policy as more funds are allocated for further investment. This evidence is supported by the attractive dividend yield of 4.46%, thus investors are rewarded well for their initial investment.

[thorpematt] 04/5/2022 10:57

Very solid.

I don't quite understand the share price fall here really. But its illiquid so not really an efficient market. I did buy a few more of these earlier in the year. I have no intention of selling any into the marlet anytime soon.

[cwa1] 04/5/2022 07:47

"Overview and outlook

Andrews Sykes' trading has recovered strongly after the unprecedented challenge posed by the coronavirus pandemic.

We are thankful and proud of our team members who responded as essential service providers throughout the various stages of the pandemic. The wellbeing of our employees and business partners has always been of paramount importance as we adhered to the various local government guidelines which evolved throughout 2020 and 2021. Our priority of keeping our operations safe for customers, employees, and business partners has allowed Andrews Sykes to weather hopefully the worst of the pandemic and still produce strong financial results for shareholders.

Despite these unprecedented circumstances, we are encouraged how the business has constantly adapted to overcome operational issues and explore new revenue opportunities which have arisen through various avenues such as the supporting of COVID testing and vaccinations stations. The group has also achieved a rebound in revenues from our core traditional markets of "comfort" cooling and heating despite various lockdowns and 'stay at home' guidance being in effect at multiple different times throughout the year.

This year was once again supported by another strong year for our UK pump hire business, which finished the year 16% up on the previous year's revenue and continues the recent history of setting record levels of revenue yearly.

The group is confident in its core markets, its revenues and its profits."

[tmfmayn] 17/4/2022 17:13

ANDREWS SYKES: Better-Than-Expected H1 2021 Witnesses European Sales Rebound 29% As Net Cash Reaches £22m And Potential Dividend Yield Hits 5% #ASY

"a possible 13.5x multiple hardly seems expensive for a high-margin and cash-rich business that proved reasonably resilient during the pandemic and may have further expansion opportunities within Europe.".

[cwa1] 08/4/2022 16:18

Minuscule spring in to life today...

[0rb1t] 17/11/2021 13:11

Speedy Hire reports positive trading today

[mg1982] 09/11/2021 03:09

Since summer 2017 ASY has been in a consolidation phase. They need a catalyst to get a move higher. I can't see that, what do people think will be the inflection point now? thanks

[jeff h] 08/11/2021 18:31

Juicy contract received to go with the juicy div received:-

"...Our customer requested a significant number of pumps to help remove water from a section of a port inlet and allow excavation works to begin in order to reduce water levels.

The sheer volume of pumps needed to successfully carry out this critical assignment would have been too much for most companies – but not us!

Initially, 60 dewatering pumps were delivered and installed less than two weeks after we were first contacted. Various strands of our business worked tirelessly to coordinate the maintenance, transportation and installation of the kit, with logistical processes performed flawlessly.

After the original requirement was handled, a further 30 units were supplied to supplement the pumps already functioning on site...."

[cwa1] 05/11/2021 16:57

Dividend received today AND a very modest share price rise. Better than bad end to the week :-)

[arregius] 14/10/2021 14:15

Ok thanks!

[cockerhoop] 14/10/2021 08:05

It's not #ASY it's a division of London Security (the other JG Murray listed business)

[arregius] 13/10/2021 14:14

New Andrews sykes division #ASYhttps://www.ansulsmartsolutions.be/Ansul NV division

[cwa1] 07/10/2021 08:17

Ex dividend for all but 12p this morning, pay day is 5/11/21

[arregius] 05/10/2021 08:01

Seems value at this price. Growing and new positions available

[arregius] 28/9/2021 07:51

Slow recovery from covid. Hopefully keeps improving. I am good and thankful

[cwa1] 28/9/2021 07:29

Overview

Andrews Sykes' trading continues to be resilient as sectors in which we trade show ongoing demand, despite the unprecedented challenge in the form of the coronavirus pandemic. We continue to be thankful and proud of our team members as they respond as essential service providers.

The Group's revenue for the 6 months ended 30 June 2021 (the "period") was £35.7 million, an increase of £2.2 million compared with the same period in 2020. Operating profit for the period was £8.0 million compared with £7.0 million in 2020, an increase of £1.0 million, reflecting the increased revenue. Overall, net funds increased by £2.0 million from £7.7m million as at 31 December 2020 to £9.7 million as at 30 June 2021 .

and

Outlook

Whilst certain of the Group's business operations continue to be affected by the coronavirus pandemic, for example the performance of Khansaheb remains depressed compared to historical levels, demand in Europe has increased and the pumps business in the UK continues to perform in line with last year's levels and above pre pandemic levels. Management remains optimistic that the business will continue to improve as the economy recovers fully but are mindful that we live in uncertain times and circumstances can change very quickly .

[cwa1] 27/9/2021 12:51

Minuscule hint of interest today...

[arregius] 20/9/2021 07:59

They have new revenue stream from air quality control from schools and hospitals.They keep investing and growing depots. Thats a good sign...

[cwa1] 15/9/2021 08:33

Can't really help. The only thing I can think of is potential nervousness ahead of imminent Interims? There certainly haven't been many/any pointers since the prelims