25 March 2025
AB
Dynamics plc
Half year
trading update and notice of results
AB Dynamics plc ("AB Dynamics", the
"Company" or the "Group"), the designer, manufacturer and supplier
of advanced testing, simulation and measurement products to the
global transport market, issues the following trading update for
the six-month period ended 28 February 2025.
Current trading
Trading for the first six months of
the year continues to show positive momentum, with overall
performance in line with the Board's expectation. The Group expects
to deliver revenue for the period of c.£58m, representing growth of
11% over the prior year, with strong contributions across all three
sectors.
The overall trends noted in the
January AGM Trading Update continued through the remainder of the
first half, with encouraging order growth, particularly in Asia
Pacific and North America. The Group's order book continues to
build and provides good visibility into the second half of the
year.
Financial position
Cash generation in the first six
months was in line with expectations and the Group expects to
report net cash at 28 February 2025 of £27.2m (29 February 2024: £29.1m, 31 August 2024: £28.6m)
after the initial cash payment
of £4.2m for the acquisition of Bolab Systems.
The Group is well positioned to
continue investing selectively in organic growth opportunities and
further value enhancing acquisitions.
Outlook
Whilst mindful of the dynamic
economic and geopolitical backdrop, timing of pipeline conversion
and customer delivery schedules, the Board remains confident that
the Group will make further financial and strategic progress this
year.
Future growth prospects for the
Group remain compelling and supported by long-term structural and
regulatory growth drivers in active safety, autonomous systems and
the automation of vehicle applications. As a market and technology
leader in its core sectors AB Dynamics remains extremely well
positioned to capitalise on these opportunities.
In November 2024 the Board set out
its ambitions for the medium term, in particular delivering 10%
annual organic revenue growth and expanding adjusted operating
profit margin towards 20%. The Board also increased its
expectations for adjusted operating profit for FY 2025. With a
solid first half performance, coupled with the visibility afforded
by the current order book and pipeline, the Board remains confident
in achieving its expectations for the full year.
Notice of results
The Group will report its interim
results for the six months ended 28 February 2025 on 23 April 2025.
A pre-recorded results presentation will be available on the
Group's website, www.abdplc.com, at 7.00am on 23 April 2025. This
will be followed by a live presentation for analysts at 9.00am at
Stifel offices, 150 Cheapside, London EC2V 6ET. Please contact
abdynamics@teneo.com if you would like to attend.
A presentation will also be provided
on the Investor Meet Company platform on 24 April 2025 at 9.00am.
Anyone wishing to attend should register their interest via
https://www.investormeetcompany.com/ab-dynamics-plc/register-investor.
Note: Company compiled analyst expectations for the year
ending 31 August 2025 is for adjusted operating profit of
£22.2m.
Enquiries:
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AB
Dynamics plc
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01225 860 200
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Dr James Routh, Chief Executive
Officer
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Sarah Matthews-DeMers, Chief
Financial Officer
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Peel Hunt LLP (Nominated Adviser and Joint
Broker)
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0207 418 8900
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Mike Bell
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Ed Allsopp
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Stifel Nicolaus Europe Limited (Joint
Broker)
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0207 710 7600
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Matthew Blawat
Harry Billen
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Teneo
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0207 353 4200
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James Macey White
Matt Low
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The person responsible for arranging
the release of this information is David Forbes, Company
Secretary.
