Andrews Sykes Group

Website: Andrews Sykes Group
Index: AIM
EPIC: ASY
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Business Support Services
Market Cap: £216.62M
Payout Frequency: Semi-Annual

Andrews Sykes Group Dividend Analysis and Summary

Dividend Details

Proposed final dividend: 14.0p per share (FY2025)
Ex-dividend date: 21/05/2026
Record date: 22/05/2026
Payment date: 19/06/2026
Total FY2025 dividends (interim + final): 25.9p per share (unchanged vs FY2024)
Cash cost: ~£5.9m for the final dividend; total cash dividends paid in 2025: £10.8m

Coverage and Financial Support

Earnings: Basic EPS 43.20p; FY2025 dividend of 25.9p implies earnings cover of ~1.67x (payout ~60%).
Cash flow: Operating cash flow £22.8m vs dividends paid £10.8m ? cash cover ~2.1x. Post-tax/interest operating cash flow minus capex (£7.3m) still covers dividends by ~1.4x.
Balance sheet: Net funds £13.2m, cash £28.4m at year-end support ongoing distributions.

Analysis: Sustainability and Growth Trajectory

Sustainability: The dividend appears well-supported by profits and cash generation. Even excluding one-offs (property disposal gain of ~£1.1m and provision movements), underlying operating profit rose, and cash conversion remains strong.
Growth: The proposed final dividend of 14.0p is flat year-on-year; total FY payout 25.9p remains unchanged. Management commentary points to maintained “normal” dividends in going-concern scenarios, suggesting a policy of stability over growth in the near term.
Capital allocation: Ongoing reinvestment (hire fleet £5.5m, other PPE £2.7m) is balanced with distributions. Pension buy-in continues to de-risk future cash calls, which is supportive for dividend stability.

Structural Changes and Policy Factors

Business changes: UK fixed air conditioning installation business ceased trading (small, low-profit; tidy exit). New subsidiary launched in Saudi Arabia (early-stage; small 2025 loss of ~£0.2m) positions the Group for Middle East growth.
Property actions: UK property disposal with reinvestment into a new depot underscores long-term UK commitment; one-off gain boosted 2025 operating profit.
Buybacks: Existing authority to repurchase up to ~12.5% of share capital to be renewed; no purchases disclosed. If used, buybacks could complement dividends and enhance per-share metrics.
Dividend policy: Final dividend is subject to AGM approval; Board’s going-concern analysis explicitly assumes maintaining “normal” dividends, indicating policy consistency.

Risks and Flags for Dividend Stability

Weather and cyclical exposure: UK revenue fell on drought conditions and weaker macro demand (notably pumps and heating). Weather variability remains a key operational risk.
Geopolitical/regional: Middle East operations are growing but carry geopolitical risk; management currently reports no significant impact and active monitoring.
One-offs: 2025 operating profit included a ~£1.1m property gain; underlying performance remains solid but future profits should be viewed ex one-offs.
Interest income: Lower rates reduced finance income; not material but a headwind to ancillary cash generation.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
22/05/2025	20/06/2025	Final	14.00p	GBX
02/10/2025	31/10/2025	Interim	11.90p	GBX

Total (Annual Dividends Per Share): 25.90p

Dividend Yield = Annual Dividends Per Share (25.90p) ÷ Share Price (524.4p) = 4.94%

Ex Dividend Date	Payment Date	Type	Amount	Currency
21/05/2026	19/06/2026	Final	14.0000p	GBX
02/10/2025	31/10/2025	Interim	11.90p	GBX
22/05/2025	20/06/2025	Final	14.00p	GBX
03/10/2024	01/11/2024	Interim	11.90p	GBX
23/05/2024	21/06/2024	Final	14.00p	GBX
05/10/2023	03/11/2023	Interim	11.90p	GBX
05/10/2023	03/11/2023	Special	59.40p	GBX
25/05/2023	16/06/2023	Final	14.00p	GBX
06/10/2022	04/11/2022	Interim	11.90p	GBX
06/10/2022	04/11/2022	Special	16.60p	GBX
26/05/2022	17/06/2022	Final	12.50p	GBX
07/10/2021	05/11/2021	Interim	11.90p	GBX
27/05/2021	18/06/2021	Final	11.50p	GBX
08/10/2020	06/11/2020	2nd Interim	11.90p	GBX
06/08/2020	28/08/2020	Special	23.70p	GBX
28/05/2020	19/06/2020	Final	10.50p	GBX
10/10/2019	08/11/2019	Interim	11.90p	GBX
30/05/2019	21/06/2019	Final	11.90p	GBX
11/10/2018	09/11/2018	Interim	11.90p	GBX
31/05/2018	25/06/2018	Final	11.90p	GBX
05/10/2017	03/11/2017	Interim	11.90p	GBX
25/05/2017	26/06/2017	Final	11.90p	GBX
06/10/2016	02/11/2016	Interim	11.90p	GBX
26/05/2016	24/06/2016	Final	11.90p	GBX
08/10/2015	04/11/2015	Interim	11.90p	GBX
28/05/2015	19/06/2015	Final	11.90p	GBX
06/11/2014	02/12/2014	Interim	11.90p	GBX
28/05/2014	19/06/2014	Final	11.90p	GBX
06/11/2013	03/12/2013	2nd Interim	8.90p	GBX
26/06/2013	24/07/2013	Interim	8.90p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	11.900	14.000		GBX	25.900	-69.630
2023	11.900	14.000	59.400	GBX	85.300	108.040
2022	11.900	12.500	16.600	GBX	41.000	75.210
2021	11.900	11.500		GBX	23.400	-49.240
2020		10.500	23.700	GBX	46.100	93.690
2019	11.900	11.900		GBX	23.800	0.000
2018	11.900	11.900		GBX	23.800	0.000
2017	11.900	11.900		GBX	23.800	0.000
2016	11.900	11.900		GBX	23.800	0.000
2015	11.900	11.900		GBX	23.800	0.000
2014	11.900	11.900		GBX	23.800	33.700
2013	8.900			GBX	17.800

Number of Shares:

Payment	Paid	Amount
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