Andrews Sykes final results 2025: record earnings, but the mix matters
Andrews Sykes has put out a steady set of final results for 2025, and the headline is decent: revenue edged higher, operating profit improved, profit after tax rose nicely, and basic earnings per share hit a record 43.20p.
That said, this was not a clean straight-line year. The UK had a tougher time, especially in pumps and heating, while Europe and the Middle East did the heavy lifting. So my read is positive overall, but with a clear message – this was a year where geographic diversification really earned its keep.
Key Andrews Sykes 2025 results investors should know
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | £76.5 million | £75.942 million | +0.7% |
| Adjusted EBITDA | £30.156 million | £30.933 million | -2.5% |
| Operating profit | £23.457 million | £23.187 million | +1.2% |
| Profit after tax | £18.085 million | £16.798 million | +7.7% |
| Basic EPS | 43.20p | 40.13p | +7.7% |
| Net cash inflow from operating activities | £22.843 million | £20.323 million | +12.4% |
| Net funds | £13.173 million | £7.152 million | +84.2% |
| Total dividends paid | 25.90p per share | 25.90p per share | Flat |
| Proposed final dividend | 14.00p per share | 14.00p per share | Flat |
Why Andrews Sykes profits rose even though trading was mixed
The first thing to say is that this was not a blockbuster growth year on revenue. Sales rose by just £0.6 million. But Andrews Sykes still squeezed out a higher operating profit and a much better profit after tax, which tells you management kept a tight grip on costs and cash.
There is one wrinkle, though. Operating profit got a £1.073 million boost from the sale of a UK property. That is a one-off gain, not something you can bank on every year. The company also says that if you strip out both property disposal gains and provision movements, operating profit rose from £22.4 million to £23.0 million. That underlying improvement is more modest, but still solid.
Another slight negative is adjusted EBITDA, which fell from £30.933 million to £30.156 million. Adjusted EBITDA is a profit measure before interest, tax, depreciation and certain disposal gains, so it can give a cleaner view of trading. In plain English, it suggests the year was good, but not quite as strong as the headline earnings number might first imply.
UK weakness was real, but Europe and the Middle East stepped up
UK hire business had a difficult year
The UK was the obvious soft spot. Revenue at the main UK business dropped to £39.4 million from £43.1 million, while operating profit fell sharply to £11.6 million from £15.4 million.
The company points to the macro-economic backdrop and unusually dry weather. That matters because Andrews Sykes rents out specialist equipment including pumps, and drought conditions hurt demand. Pump hire fell 10.7%, ending seven straight years of growth, while heating hire was down 10.2%.
That is the main concern in this update. The UK still matters a lot to group earnings, and when it slows, you feel it.
Europe delivered a standout performance
Europe was the star. Revenue climbed to £26.8 million from £23.6 million, and operating profit jumped to £11.7 million from £8.2 million.
Hot summer weather helped air conditioning demand, with air conditioning revenues up 52.3% in Italy and 33.1% in the Netherlands. The Netherlands added £2.0 million of revenue growth and Italy added £0.7 million. That is a very strong contribution and shows how weather can cut both ways for this business.
Middle East momentum looks encouraging
The Middle East also kept moving in the right direction. Revenue rose to £9.4 million from £7.7 million, and operating profit increased to £1.5 million from £1.1 million, even after absorbing a £0.2 million first-year loss in Saudi Arabia.
That Saudi business only generated £0.1 million of revenue in 2025, so it is tiny for now. But management clearly sees it as a long-term growth option tied to Saudi Arabia’s construction boom. For investors, that makes it more of a watchlist item than a current profit driver.
Cash generation, balance sheet strength and dividends remain a big plus
This is where Andrews Sykes looks particularly sturdy. Net cash inflow from operating activities rose to £22.843 million, and cash and cash equivalents finished the year at £28.386 million.
Net funds nearly doubled to £13.173 million from £7.152 million. That is a strong position and gives the group flexibility, especially when markets are uneven.
Receivables quality also improved. Debt not past due accounted for 79% of total receivables versus 49% a year earlier. That may sound technical, but it basically means customers are paying more promptly, which supports cash flow and lowers risk.
The dividend story is steady rather than exciting. Shareholders received 25.90p per share during 2025, unchanged from 2024, and the proposed final dividend is again 14.00p per share. In other words, no dividend growth, but the payout looks well supported by earnings and cash.
Andrews Sykes strategy update: shutting one UK unit and reinvesting elsewhere
The group shut Andrews Air Conditioning & Refrigeration Ltd., its UK fixed air conditioning installation business, in the second half. Revenue there fell to £0.9 million from £1.6 million. Management says the business had suffered declining revenues and low profitability for several years.
I think that is sensible. It is rarely fun to see a business closed, but exiting weaker operations can improve focus and returns elsewhere. The group also sold a UK property and reinvested in a new £2.1 million depot in the North West, which suggests it is still backing the core hire business for the long term.
What Andrews Sykes says about 2026 trading and what investors should watch
The outlook statement is reassuring. Management says positive trading momentum seen at the end of 2025 has continued into the current year, and performance so far is in line with the Board’s expectations.
That is encouraging, especially after a patchy UK year. The company also says the Middle East situation has not had a significant impact on trading so far, though it is still being monitored.
One extra comfort point is the going concern statement. The Board stress-tested the business with a downside scenario and still concluded the group had sufficient liquidity through to the end of May 2027. It even says turnover could fall below £40 million on an annualised basis without liquidity concerns, based on its modelling assumptions. That does not mean such a collapse is expected – quite the opposite – but it underlines balance sheet resilience.
My verdict on Andrews Sykes shares after these 2025 final results
This is a good report, not a flawless one. The positives are strong cash generation, record EPS, a robust balance sheet, stable dividends, and clear evidence that Europe and the Middle East can offset UK softness.
The negatives are also clear enough: UK trading weakened materially, adjusted EBITDA slipped, and part of the operating profit improvement came from a one-off property gain. So I would not call this explosive growth.
Still, for retail investors, the bigger picture looks constructive. Andrews Sykes remains profitable, cash generative and conservatively run, with room to invest and weather tougher periods. If the UK steadies and overseas momentum continues, 2026 could have more upside than this year’s modest top-line growth suggests.
