Andrews Sykes Share Discussion Threads

[ignoble] 27/7/2018 07:41

Thank you for the update , Keith
Always appreciated

[keithfox] 27/7/2018 07:33

It now seems that the Polar Breeze plus (priced at £649 as opposed is £449 last week) is the only unit available to buy; the Polar Wind, ET22, Polar Wind plus and the Polar Breeze are now no longer on the website to buy. I presume they are switching them all to hire, which sounds good.

A bit cool for all over the weekend and into next week but temperatures starting building again from mid-week with a fairly prolonged hot spell developing thereafter.

[keithfox] 26/7/2018 13:35

Nice update on the blog.

[keithfox] 26/7/2018 10:55

Actually, the polar breeze is till there but the price is now £649, which was £449 last week! The polar wind has disappeared which was £649. I presume it's either a mistake or they are cashing in.

[keithfox] 25/7/2018 16:24

Out of interest I have just noticed that there are no Polar Breezes for sale anymore, the Polar Wind is the cheapest I can see now. That would be a good sign I think

[cockerhoop] 25/7/2018 10:08

Cheers for clarifying Keith.

[keithfox] 25/7/2018 10:03

Current hire period is 2 weeks min. A polar wind plus would be £298 for 2 weeks including VAT/delivery/collection.

[keithfox] 25/7/2018 08:55

Actually, the orange statement on their website now no longer contains the 1 week hire period bit. Maybe they have changed that, will phone and see what it is.

[keithfox] 25/7/2018 08:53

Yes, can't work out the reduction in hire period. I do remember a trading statement from the dim and distant past, saying that they were doing very well, so it has happened.

[cockerhoop] 25/7/2018 08:09

Also regards the reduction in the minimum hire period - it's seems logical that in a very busy period you'd extend rather than reduce. ie less equipment to be delivered/set up etc. Any thoughts?

[ignoble] 25/7/2018 08:05

Not that I am aware

[cockerhoop] 25/7/2018 08:03

Keith,

As far as I'm aware they haven't issued a trading statement this millennium and as there aren't any market expectations (as no broker notes) I'd be somewhat surprised by a trading statement being issued.

One thing that is a little frustrating is it's hard to get a feel of the size each respective component (ie Cooling, Heating, Pumps) in each market. Any info out there?

[keithfox] 25/7/2018 07:11

Just giving an opinion and suggesting that this year may not be as good as it gets for them. I may be wrong but thought I might be allowed to express an opinion. Anyone selling shares now knowing that the interims are very likely to contain a very encouraging update may well be missing out (and missing another good divi). In fact, if they do start doing really well in the next month or two they are very likely to issue an update suggesting results will be ahead of expectations (whatever they are).

[quepassa] 24/7/2018 21:23

stand corrected.
withdrawn my last post. probably then a very bad year for sykes judging by what you say with unfavourable weather conditions for them. thanks for the heads-up.
will sell my shares tomorrow and stop posting here

[pireric] 24/7/2018 20:56

Very helpful, thanks Keith :0)

[keithfox] 24/7/2018 20:53

Being a weather forecaster and someone who has watched ASY for 20yrs and seen how the weather affects the various divisions can I say that you have to be careful making some of these assumptions? Apart from the 2 beasts from the east (the second a short affair mostly over a weekend), the winter was not particularly cold. Pretty wet granted, but nowhere near as wet as some recent ones. Also, this summer got off to a slow start and although there were a couple of warm spells in April and May, the awareness of a hot summer has only been fairly recent and short warm spells do not help ASY overmuch. Also, the long dry spell is not good for the pumping side. It'll be a good summer for them, no doubt about it, but certainly not the best they could possibly hope for. Similarly for the first half. Another month of hot weather and I
will be getting excited though!
Interestingly, I see they have reduced their min hire period from 4 weeks to 1 week.

[pireric] 24/7/2018 19:50

All this aside, and the seemingly blind nature of the market to the obvious... this will clearly create very tough comps for next year if it pans out. Short term traders will struggle with that, but pushing back against that...:

1) should have fab cash generation this year
2) ASY is essentially getting a phenomenal amount of free marketing, and that will persist in terms of existing/new client awareness. Deliver when businesses most need ASY and they're firmly on the map for the foreseeable.

So not quite a black and white strong year/tough comp issue IMO. Positives far outweigh into the mid term

[keithfox] 24/7/2018 19:28

Oh they will....they will.

[ignoble] 24/7/2018 19:16

As is Europe ...Sykes also have depots overseas that will hopefully benefit from the current spell

[pireric] 24/7/2018 19:05

Thanks guys, glad to own what is a very high quality stock. This year must be absolutely brilliant for them so far...

"The Met Office warned the remarkable temperatures across the UK are on course to last until at least late August with 'very warm, hot or very hot' conditions likely to last for at least another five weeks. It means Britain is officially on course for its hottest summer ever"

[keithfox] 24/7/2018 07:40

Greetings.

[ignoble] 23/7/2018 19:51

Ditto , welcome aboard

[valuehustle] 23/7/2018 19:15

Welcome Eric!

[pireric] 23/7/2018 19:14

Evening all

Bought my first ever pinch of ASY today. Almost apt to be posting this on such a scorching day. Rationale really not difficult. Sure the spread is pretty annoying, and this isn't the most exciting business, but it's a quality, family-owned, compounder.

It's compounded over the last decade, and I'm sure it will continue to do so. Moreover, this year I can only imagine will be exceptional for the business. This summer alone could be the hottest for more than a decade, and it's been prolonged, which create perfect conditions for ASY.

Combined, highly likely this is effectively trading on low teens forward PE, for a stock with consistently reliable cash generation and with a c. 4.5% dividend yield to boot. Sneaky feeling the time of sideways price movement will end soon!

P