Andrew Sykes, the Wolverhampton-based heating and air conditioning equipment group, posted record profit in 2023 despite inflation and a “tight labour market.”
Operating profit increased by 5.6 per cent to £22.7m even as revenue declined 5.1 per cent year-on-year.
Turnover was also down 11.5 per cent which the firm said reflected “exceptional weather” experienced across the UK and Europe over the summer months in 2022.
The company said increasing interest rates in the UK and Europe had enabled it to generate increased returns on its cash reserves, contributing to a small increase in net finance income to £0.9m.
Pre-tax profit came in at £23.6m, up from £21.6m and boosting shareholder returns from 40.36p per share to 42.24p.
The rise in profit was driven by the firm’s European business, which rose from £6.9m to £8.7m. Southern Europe in particular was aided by record temperatures over the summer, propping up chiller and air conditioning hire revenues.
The Dutch, Belgian and Italian subsidiares each reported record levels of turnover.
Shares were largely level in early trading, down 0.7 per cent.
It comes after a strong year for Andrew Sykes, which has managed to resist headwinds driven by difficult macroeconomic conditions throughout Europe.
Shares are up over 13 per cent in the last 12 months, following record sales and profits in its half year results in September.