Andrews Sykes down 12.9% in 2020

Andrews Sykes Group, the UK-based pump and temperature control rental business, reported a 12.9% decrease in revenues to £67.3 million in 2020, with the second half of the year seeing a 20% fall. Operating profit fell 15.1% to £16.4 million.

The company, which operates in the UK, northern Europe and the Middle East, said there was a much lower level of trading across all its businesses mainly because of the pandemic, with the fourth quarter impacted by lockdowns in the UK and Europe and a mild UK winter.

Andrews Sykes said there had been a decrease in both air conditioning and heater rental revenues due to a combination of the pandemic and a relatively mild summer and winter in the UK and most of Europe.

Lockdowns affected its normal facilities management and events business, but it reported “extensive involvement” with Covid-related projects, which generated boiler and chiller revenue throughout the year.

It also reported an “exceptional year” for its UK pump rental business, which finished 3% up on the previous year.

Revenues in the Middle East were down 22% to £10.3 million, with operating profits 37% lower at £2.0 million. The company said business was badly affected by the pandemic, the postponement of Expo 2020 and a slump in the oil price. It said there were early signs of an improvement in pump rentals at the end of the year.

Andrews Sykes rented chillers such as these 500 kW units for Covid-related projects in the UK.

The company said; “In the UK, Europe, and Middle East, we have introduced social distancing measures, furloughed employees where appropriate and embraced home working for as many employees as possible. Our priority is to keep our operations safe for customers, employees, and business partners.

“Despite unprecedented circumstances, we are encouraged how the business has constantly adapted to overcome operational issues. We modified various aspects of our service to suit both clients and staff.

“These measures include cleaning and sanitising all equipment prior to despatch, non-contact deliveries wherever possible, and the mandatory use of PPE when on customer sites.”

The year also saw the passing of long-time managing director Paul Wood and the appointment of Carl Webb as the new Managing Director.