ASY Andrews Sykes Group Plc

RNS Number:4789L
Andrews Sykes Group PLC
31 May 2000


AGM STATEMENT


Encouraging start to year for core hire business


At the annual general meeting of Andrews Sykes Group in London today (May 31)
chief executive Robert Stevens said:


Andrews Sykes Hire

Andrews Sykes Hire, the core hire business of pumps, air treatment and
conditioning, and heating and ventilating, which represents the main part of
group turnover, has made an encouraging start to the year.  Turnover and
operating profit in the first three months of the year were at a higher level
than in the same period last year

Early signs are that this encouraging start is continuing.  This, together
with the full impact of the 1999 cost re-organisation and revenue initiatives,
indicates an optimistic outlook for the year ahead.

We will continue to focus on new business areas, in particular our growing
investment in specialist/hire added value services.


Cox Plant

Trading conditions for Cox Plant in the general plant hire market continue to
be difficult with excess capacity in all sectors.

The price competitive situation is expected to continue throughout the year.
This will adversely impact our ability to grow plant hire turnover as we
direct capital expenditure towards other more profitable areas of the
business.

In these difficult trading conditions management emphasis continues to be
directed towards margin improvements and cost control across the network of
hire centres.

A more focused approach towards accommodation hire and sales, particularly in
markets that are less price sensitive is being developed.  Expectations are
that this strategy will begin to impact trading during the second half of
2000.

Overseas and subsidiaries

Trading overseas and in the subsidiaries in the first quarter was varied with
some overseas markets showing a slow start.

These businesses are now an integral part of the Andrews Sykes depot
management
network with expectations that the remaining part of 2000 will be in line with
budget particularly as tighter management controls take full effect.


For further information      
                             
Robert Stevens               Tel  07714 064025 (on 1.6.00)
Chief Executive              or 01902 328 700
                             
Issued by                    
John Goold                   
Shandwick                    Tel  020 7329 0096

END
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