Andrews Sykes (ASY:AIM), the UK specialist in pumping, heating and cooling hire, has revealed a double-digit rise in revenues in 2018 and a 21% rise in earnings to 40.4p, which has pushed the shares up 9% today to 630p.

READ MORE ABOUT ANDREWS SYKES HERE

REDUCING THE SEASONALITY

The business typically sees a big seasonal benefit in the second half of the year due to better margins on its air conditioning products which are hired in the summer. The effect in 2018 was even more pronounced due to the extended period of hot weather in northern Europe as the table below shows.

2018 was a near-perfect storm for the company due to very cold weather in the first quarter of the year providing good opportunities for the heating and boiler hire activities.

The group is mindful of the outsized impact that adverse weather can have on its business and is focusing its capital spending on non-seasonal, environmentally-friendly products to smooth its business going forward.

Meanwhile it will continue to invest in its core business to take advantage of extreme weather events as and when they occur.

The group is well financed with net £23.4 million of net funds and remains cash-generative, allowing it to 'face the challenges and opportunities that lie ahead'.

The shares are trading on 15.5 times full year 2019 earnings which is in the middle of their historical range.

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Issue Date: 10 May 2019