Andrew Sykes unveils new depot plans for the Middle East

Photo: Andrew Sykes

UK-based rental company Andrew Sykes has said that it will lease a new depot in the UAE, adding to existing sites in the Middle East in Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and Yemen.

Its division in the region, known as Khansaheb Sykes the UAE, specialises in pump hire and dewatering services and has been in operation for more than 40 years.

The move comes after the business reported a 31.7% increase in revenues in its half year results for 2024, reaching revenues of £3.5 million (€4.2 million). The region (which includes Africa) now accounts for 9% of the total revenues of the Group.

The company said that the increase comes after the introduction of new senior management in the previous year, and expects the new depot to “increase revenue opportunities.”

At the same time, total revenues for the Group decreased by 1%, which it said was due to the loss of approximately £1.0 million of turnover from the closure of its loss making French operation in November 2023.

Revenue at Andrews Sykes Hire in the UK declined by 1.6% compared with the same period in 2023 with a combination of milder winter temperatures and a slow start to the summer cooling season limiting revenue opportunities.

Revenues in Europe also faced a similar impact, and desreased by 12.2% compared to the same period in 2023 (4.5% decrease excluding the impact of its French subsidiary). It said that the loss was driven by “disappointing performances” from its Luxembourg and Belgian subsidiaries, with revenues down 37.6% and 24.8% respectively on the same period in 2023.

EBITDA also decreased by 5% to 13.1 million, while operating profit for the period remained stable at £9.7 million. 

JJ Murray, executive chairman, Andre Sykes, said that despite the results, management remains confident of delivering results in line with previous expectations.

He said, “In the longer term, Management remains optimistic that the business will continue to improve but are mindful of the impact that adverse economic issues can pose to the business and customer demand.”