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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Andrews Sykes Group Plc | LSE:ASY | London | Ordinary Share | GB0002684552 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 597.50 | 585.00 | 610.00 | 610.00 | 597.50 | 597.50 | 3,204 | 08:00:08 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Air Heat & Condition Eq-whsl | 83.01M | 17.02M | 0.4066 | 14.70 | 250.11M |
TIDMASY
RNS Number : 2699M
Andrews Sykes Group PLC
06 May 2015
Andrews Sykes Group plc
Summary of results
For the 12 months ended 31 December 2014
12 months 12 months ended ended 31 December 31 December 2014 2013 GBP'000 GBP'000 Revenue from continuing operations 56,400 61,072 EBITDA* from continuing operations 15,569 18,592 Operating profit 11,311 14,683 Profit after tax for the financial period 9,311 11,518 Basic earnings per share from total operations (pence) 22.03p 27.25p Interim and final dividends paid per equity share (pence) 23.80p 17.80p Proposed final dividend per equity share (pence) 11.90p 11.90p Net cash inflow from operating activities 10,621 14,216 Total interim and final dividends paid 10,058 7,523 Net funds 16,846 19,113
* Earnings Before Interest, Taxation, Depreciation, profit on sale of property, plant and equipment, Amortisation and non-
recurring items as reconciled on the consolidated income statement.
For further information please contact:
Andrews Sykes Group plc Paul Wood, Group Managing Director Andrew Phillips, Chief Financial Officer 01902 328700 ------------------------------------------- -------------- Altium Capital Limited (NOMAD) Paul Lines Adam Sivner 0845 505 4300 ------------------------------------------- -------------- Arden Partners plc (broker) Steve Douglas 020 7614 5900 ------------------------------------------- --------------
Chairman's Statement
Overview and financial highlights
Summary
The group's revenue for the year ended 31 December 2014 was GBP56.4 million, a decrease of GBP4.7 million, or 7.6%, compared with the same period last year. This decrease had an adverse impact on operating profit which fell by GBP3.4 million from GBP14.7 million last year to GBP11.3 million in the year under review. This decrease is primarily due to two factors: the under-performance of our operations in the Benelux region and our heating business in the UK: both of which mainly impacted the group's performance in the first half of the year and had been largely addressed by the end of the fourth quarter.
As a consequence of the above, our basic earnings per share decreased from 27.25p last year to 22.03p in the current period. Although lower than in the previous year, the basic earnings per share is still considered to be a positive factor reflecting once again the strong trading performance of the majority of the group's businesses.
The group continues to generate strong cash flows. Net cash inflow from operating activities was GBP10.6 million compared with GBP14.2 million last year. Net funds only decreased by GBP2.3 million from GBP19.1 million last year to GBP16.8 million at 31 December 2014 despite shareholder related cash outflows of GBP10.1 million (2013: GBP7.5 million) on equity dividends. Therefore, over the last two financial years, the group has returned GBP17.6 million in cash to shareholders. At the same time the level of external bank borrowings reduced from GBP8 million as at the end of last year to GBP7 million as at 31 December 2014. The Board is now proposing a further final dividend totalling GBP5.0 million payable in June 2015.
Cost control, cash and working capital management continue to be priorities for the group. Capital expenditure is concentrated on assets that give a good return and in total GBP4.4 million was invested in the hire fleet this year, a level very similar to last year's expenditure of GBP4.6 million. In addition, the group invested a further GBP0.5 million on property, plant and equipment. These actions will ensure that the group's infrastructure and revenue generating assets are sufficient to support future growth and profitability. Hire fleet utilisation, condition and availability continue to be the subjects of management focus.
Operating performance
The following table splits the results between the first and second half years:
Turnover Operating profit --------------- --------- ------------------ GBP'000 GBP'000 --------------- --------- ------------------ 1st half 2014 26,759 4,349 --------------- --------- ------------------ 1st half 2013 29,774 6,427 --------------- --------- ------------------ 2nd half 2014 29,641 6,962 --------------- --------- ------------------ 2nd half 2013 31,298 8,256 --------------- --------- ------------------ Total 2014 56,400 11,311 --------------- --------- ------------------ Total 2013 61,072 14,683 --------------- --------- ------------------
The above table demonstrates that the majority of the trading shortfall compared with last year occurred in the first half of the year. Turnover in that period was 10.1% lower than in the same period in 2013 resulting in a reduction in operating profit of 32.3%. However, the group's trading results improved in the second half of the year. Whilst still behind last year's levels, the percentage shortfall in turnover and operating profit compared to 2013 both significantly reduced, to 5.3% and 15.6% respectively, compared with the first half year. The majority of the shortfall in the second half occurred in the third quarter; by the end of the fourth quarter trading had nearly recovered to the previous year's levels.
Once again our main hire and sales business sector in the UK and Europe faced challenging trading conditions throughout the year. Our UK pump business performed well and made a significant contribution to the group's operating profit. Similarly our specialist chiller and boiler hire divisions both traded ahead of last year as did our air conditioning and ventilation business. However, overall, the operating profit of this business segment fell from GBP13.5 million last year to GBP10.5 million in 2014 which is the main reason for the decline in the group's overall performance this year.
The fall in profitability of this business sector was mainly due to two factors: a sharp decline in trading in the Benelux region and a disappointing performance from our UK heating business. The poor trading performance in the Benelux region was due to a combination of two factors: a decline in the construction sector in the Netherlands and a mild winter throughout the region which failed to stimulate demand for our heating products. This also had an adverse impact on our heating business in the UK which was responsible for the majority of the shortfall in turnover of our main UK trading subsidiary, Andrews Sykes Hire Limited. 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.
Despite the above adverse trading conditions, the group's diverse product range is able to return a robust performance during any weather conditions. This is supported by the continuing development of non-weather dependent niche markets which continue to benefit the performance of our specialist hire divisions. We will continue to invest in and develop these businesses as well as our traditional core products and services.
Our hire and sales business in the Middle East had a successful year. Nevertheless the operating profit for this business segment fell from GBP1.8 million in 2013 when trading was particularly good to GBP1.5 million in 2014. Our climate rental division which was formed in 2012 continues to expand and returned a positive contribution to the business results.
Turnover of our fixed installation business sector in the UK was GBP0.1 million ahead of 2013 at GBP4.0 million but due to price competition and a change in mix in this fragmented market, operating margins were reduced. Consequently operating profit for this business sector fell from GBP0.4 million in 2013 to just over GBP0.2 million in the current year.
Careful cost control resulted in a GBP0.1 million reduction in central overheads from GBP1.0 million in 2013 to GBP0.9 million in the current year.
Profit for the financial year
Profit before tax was GBP11.8 million this year compared with GBP15.0 million last year. This is mainly attributable to the above GBP3.4 million reduction in operating profit which has been slightly offset by an increase in dividends received from Oasis Sykes, our trade investment in Saudi Arabia. Net finance costs increased by GBP0.1 million compared with 2013.
Tax charges reduced from GBP3.5 million to GBP2.5 million in 2014 due to a combination of the decrease in profits before tax and a fall in the overall effective tax rate from 23.0% in 2013 to 20.8% in 2014. Profit for the financial year was GBP9.3 million compared with GBP11.5 million last year.
Equity dividends
The company paid two dividends during the year. On 19 June 2014 a final dividend for the year ended 31 December 2013 of 11.9 pence per ordinary share was paid and this was followed on 2 December 2014 by the payment of an interim dividend for 2014 also of 11.9 pence per share. Therefore, during 2014, a total of GBP10.1 million in cash dividends has been returned to our ordinary shareholders.
I am pleased to announce that, in view of the group's ongoing profitability and its significant cash resources, the board has proposed a final dividend for 2014 of 11.9 pence per ordinary share. If approved at the forthcoming Annual General Meeting this dividend, which in total amounts to GBP5.0 million, will be paid on 19 June 2015 to shareholders on the register on 29 May 2015.
Net funds
At 31 December 2014 the group had net funds of GBP16.8 million compared with GBP19.1 million last year, a decrease of only GBP2.3 million despite the payment of the above equity dividends totalling GBP10.1 million during the year.
Share buybacks
During the current year the company did not purchase any ordinary shares for cancellation. However, in prior periods such purchases were made and these enhanced earnings per share and were for the benefit of all shareholders.
The board believes that it is in the best interest of shareholders if it has this authority in order that market purchases may be made in the right circumstances if the necessary funds are available. Accordingly, at the next Annual General Meeting, shareholders will be asked to vote in favour of a resolution to renew the general authority to make market purchases of up to 12.5% of the ordinary share capital in issue.
Outlook
The group's policy to increase investments in new technologically advanced and environmentally friendly non-seasonal products will be continued into 2015. Investments will also continue in our traditional businesses to ensure we are ready to support our customers in times of extreme weather conditions.
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.
JG Murray
Chairman
5 May 2015
Andrews Sykes Group plc
Consolidated Income Statement
For the 12 months ended 31 December 2014
12 months 12 months ended ended 31 December 31 December 2014 2013 GBP'000 GBP'000 Continuing operations Revenue 56,400 61,072 Cost of Sales (24,101) (25,318) Gross profit 32,299 35,754 Distribution costs (10,410) (10,994) Administrative expenses (10,578) (10,077) Operating profit 11,311 14,683 EBITDA* 15,569 18,592 Depreciation and impairment losses (4,563) (4,459) Profit on the sale of plant and equipment 305 550 ------------------------- --------------------------- Operating profit 11,311 14,683 ------------------------- --------------------------- Income from trade investments 517 194 Finance income(+) 342 1,730 Finance costs(+) (414) (1,643) ------------------------- --------------------------- Profit before taxation 11,756 14,964 Taxation (2,445) (3,446) Profit for the financial period 9,311 11,518 ========================= =========================== There were no discontinued operations in either of the above periods Earnings per share Basic (pence) 22.03p 27.25p Diluted (pence) 22.03p 27.25p Interim and final dividends paid per equity share (pence) 23.80p 17.80p Proposed final dividend per equity share (pence) 11.90p 11.90p
* Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-
recurring items.
(+) Restated in accordance with IAS19 (2011).
Andrews Sykes Group plc
Consolidated Statement of Comprehensive Total Income
For the 12 months ended 31 December 2014
12 months 12 months ended ended 31 December 31 December 2014 2013 GBP'000 GBP'000 Profit for the financial period 9,311 11,518 ------------------------ ----------------------- Other comprehensive charges Items that may be reclassified to profit and loss: Currency translation differences on foreign currency net Investments (312) 137 Items that will never be reclassified to profit and loss: Remeasurement of defined benefit assets and liabilities (802) (1,524) Related deferred tax 160 388 ------------------------ ----------------------- Other comprehensive charges for the period net of tax (954) (999) ------------------------ ----------------------- Total comprehensive income for the period 8,357 10,519 ======================== =======================
Andrews Sykes Group plc
Consolidated Balance Sheet
As at 31 December 2014
31 December 2014 31 December 2013 --------------------------------- --------------------------------- GBP'000 GBP'000 GBP'000 GBP'000 Non-current assets Property, plant and equipment 16,388 16,432 Lease prepayments 51 53 Trade investments 164 164 Deferred tax asset 626 618 Retirement benefit pension surplus 1,253 1,204 ---------------- ---------------- 18,482 18,471 Current assets Stocks 4,618 3,231 Trade and other receivables 14,348 14,631 Overseas tax (denominated in Euros) 133 280 Cash and cash equivalents 24,077 27,417 --------------- --------------- 43,176 45,559 --------------- --------------- Current liabilities Trade and other payables (10,963) (10,271) Current tax liabilities (1,321) (1,599) Bank loans (980) (980) Obligations under finance leases (114) (114) Provisions (9) (13) --------------- --------------- (13,387) (12,977) --------------- --------------- Net current assets 29,789 32,582 Total assets less current liabilities 48,271 51,053 Non-current liabilities Bank loans (5,975) (6,955) Obligations under finance leases (162) (255) Provisions - (8) (6,137) (7,218) Net assets 42,134 43,835 ================ ================ Equity Called-up share capital 423 423 Share premium 13 13 Retained earnings 39,295 40,684 Translation reserve 2,148 2,460 Other reserves 245 245 Surplus attributable to equity holders of the parent 42,124 43,825 Minority interest 10 10 Total equity 42,134 43,835 ================ ================
Andrews Sykes Group plc
Consolidated Cash Flow Statement
For the 12 months ended 31 December 2014
12 months 12 months ended ended 31 December 31 December 2014 2013 GBP'000 GBP'000 Cash flows from operating activities Cash generated from operations 13,222 17,689 Interest paid (166) (243) Net UK corporation tax paid (2,268) (2,340) Withholding tax paid (47) (39) Overseas tax paid (120) (851) Net cash flow from operating activities 10,621 14,216 ----------------------------- ----------------------------- Investing activities Dividends received from trade investments 517 194 Sale of property, plant and equipment 511 706 Purchase of property, plant and equipment (3,727) (4,392) Interest received 270 281 ----------------------------- Net cash flow from investing activities (2,429) (3,211) ----------------------------- ----------------------------- Financing activities Loan repayments (1,000) (8,000) New loans raised - 8,000 Finance lease capital repayments (93) (97) Equity dividends paid (10,058) (7,523) Net cash flow from financing activities (11,151) (7,620) ----------------------------- ----------------------------- Net (decrease) / increase in cash and cash equivalents (2,959) 3,385 Cash and cash equivalents at the beginning of the period 27,417 24,108 Effect of foreign exchange rate changes (381) (76) Cash and cash equivalents at end of the period 24,077 27,417 ============================= ============================= Reconciliation of net cash flow to movement in net funds in the period Net (decrease) / increase in cash and cash equivalents (2,959) 3,385 Cash outflow from the decrease in debt 1,093 8,097 Cash inflow from the increase in loans - (8,000) Non-cash movement in respect of raising loan finance (20) 65 ----------------------------- Movement in net funds during the period (1,886) 3,547 Opening net funds at the beginning of the period 19,113 15,642 Effect of foreign exchange rate changes (381) (76) ----------------------------- ----------------------------- Closing net funds at the end of the period 16,846 19,113 ============================= =============================
Andrews Sykes Group plc
Consolidated Statement of Changes in Equity
For the 12 months ended 31 December 2014
Attributable to equity holders of Minority Total the parent company interest equity -------------------------------------------------------------------------------------- Share Share Retained Translation Other capital Premium earnings reserve reserves Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 31 December 2012 423 13 37,825 2,323 245 40,829 10 40,839 Profit for the financial period - - 11,518 - - 11,518 - 11,518 Other comprehensive charges: Items that may be reclassified to profit and loss: Currency translation differences on foreign currency net investments - - - 137 - 137 - 137 Items that will never be reclassified to profit and loss: Remeasurement of defined benefit assets and liabilities - - (1,524) - - (1,524) - (1,524) Related deferred tax - - 388 - - 388 - 388 Total other comprehensive charges - - (1,136) 137 - (999) - (999) --------- ------------- ------------- ---------------- --------------- ---------- --------- ----------- Transactions with owners recorded directly in equity Dividends paid - - (7,523) - - (7,523) - (7,523) Total transactions with owners - - (7,523) - - (7,523) - (7,523) --------- ------------- ------------- ---------------- --------------- ---------- --------- ----------- At 31 December 2013 423 13 40,684 2,460 245 43,825 10 43,835 Profit for the financial period - - 9,311 - - 9,311 - 9,311 Other comprehensive charges: Items that may be reclassified to profit and loss: Currency translation differences on foreign currency net investments - - - (312) - (312) - (312) Items that will never be reclassified to profit and loss: Remeasurement of defined benefit assets and liabilities - - (802) - - (802) - (802) Related deferred tax - - 160 - - 160 - 160 Total other comprehensive charges - - (642) (312) - (954) - (954) --------- ------------- ------------- ---------------- --------------- ---------- --------- ----------- Transactions with owners recorded directly in equity: Dividends paid - - (10,058) - - (10,058) - (10,058) Total transactions with owners - - (10,058) - - (10,058) - (10,058) --------- ------------- ------------- ---------------- --------------- ---------- --------- ----------- At 31 December 2014 423 13 39,295 2,148 245 42,124 10 42,134 --------- ------------- ------------- ---------------- --------------- ---------- --------- -----------
Notes
1. Basis of preparation
Whilst the information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. Therefore the financial information set out above does not constitute the company's financial statements for the 12 months ended 31 December 2014 or 31 December 2013 but it is derived from those financial statements.
2. Going Concern
The board remains satisfied with the group's funding and liquidity position. The group has operated throughout the 2014 financial year and until the date of signing these accounts within its financial covenants as contained in the bank agreement. Consequently the loans have been analysed between current and non-current liabilities in accordance with the agreed repayment profile.
Both loan capital and interest payments have been made in accordance with the bank agreement. On 30 April 2014 the first capital repayment of GBP1 million was made and this was followed by a further capital payment, also of GBP1 million on 30 April 2015. Interest is paid bi-annually at the end of October and April. The group's profit and cash flow projections indicate that the financial covenants included within the new bank loan agreement will be met for the foreseeable future.
The group continues to have substantial cash resources which at 31 December 2014 amounted to GBP24.1 million compared with GBP27.4 million as at 31 December 2013. Profit and cash flow projections for 2015 and 2016, which have been prepared on a conservative basis taking into account reasonably possible changes in trading performance, indicate that the group will be profitable and generate positive cash flows after loan repayments. These forecasts and projections indicate that the group should be able to operate within the current bank facility agreement entered and all associated covenants will be met.
The board considers that the group has considerable financial resources and a wide operational base. As a consequence, the board believes that the group is well placed to manage its business risks successfully, as demonstrated by the current year's result, despite uncertain external influences and the current uncertain economic outlook for certain of our trading territories in Europe.
After making enquiries, the board has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the board continues to adopt the going concern basis when preparing this Annual Report and Financial Statements.
3. Distribution of Annual Report and Financial Statements
The group expects to distribute copies of the full Annual Report and Financial Statements that comply with IFRSs by 15 May 2015 following which copies will be available either from the registered office of the company; Premier House, Darlington Street, Wolverhampton, WV1 4JJ; or from the company's website; www.andrews-sykes.com. The Annual Report and Financial Statements for the 12 months ended 31 December 2013 have been delivered to the Registrar of Companies and those for the 12 months ended 31 December 2014 will be filed at Companies House following the company's Annual General Meeting. The auditors have reported on those financial statements; their report was unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain details of any matters on which they are required to report by exception.
4. Date of Annual General Meeting
The group's Annual General Meeting will be held at 10.30 a.m. on Tuesday 16 June 2015 at Floor 5, 10 Bruton Street, London, W1J 6PX.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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