Andrew Sykes makes move into Germany

Photo: Andrew Sykes

Andrew Sykes has created a subsidiary in Germany, marking the first time the UK-based rental company has entered the German market.

Based in the Rhein-Erft district of Frechen, Klimamieten AS Gmbh specialises in pumping, heating and cooling solutions.

Its fleet includes air conditioning units, fuel tanks, ventilation systems and dehumidification units.

Andre Sykes first announced its intentions to enter the market last year with the appointment of Michael Piette as the business development manager, who was tasked with launching and growing the business in Germany.

The company said it has embedded itself in Germany since launching with a number of projects, and is looking forward to further development in the future; “We are encouraged by how the business has consistently adapted to overcome market and operational issues and take advantage of new revenue opportunities.”

The opening of the new German operations comes as the company announces a 5% decline in revenue for the 2023 financial year, with revenues reaching £78 million (€88 million). 

The company said inflationary pressures and tight labour markets that have impacted both the UK and European economies played a part in the decrease.

Andrew Sykes said it had offset the lower revenues through “careful cost management”, which has seen it report a 5% increase in operating profit at £22.7 million (25 million).

The UK saw revenues of £47.2 million (a decrease of 5%) while its European business recorded a 10% increase to £26.7 million. 

In the Middle East it reported a 35% decline in revenues, down from £8.8 million last year to £5.7 million. The company said the lack of significant infrastructure projects in the Middle East is “still depressing turnover in the pumps division to below what was being generated a few years previous.”

Meanwhile, the company announced that it exited France in late 2023 due to the performance of its “continuously loss making subsidiary”, with future investment to be placed elsewhere.

JJ Murray, executive chairman, said, “The current year has not been without its challenges with the well publicised inflationary pressures and tight labour markets that have been impacting the UK and European economies also impacting Andrews Sykes.

“However, our strong relationships with customers and long standing relationships with key suppliers, coupled with our highly experienced management team have allowed us to once again not only navigate our way through these circumstances, but thrive.”

He added that “trading momentum has continued into the current year, with overall performance in the year to date in line with the Board’s expectations.”