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RNS Number : 6754E AB Dynamics PLC 28 February 2024
28 February 2024
AB Dynamics plc
Half Year Pre-Close Trading Update
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 pre-close
trading update for the six-month period ending 29 February 2024, to coincide
with the Annual General Meeting being held today at 11.00am.
Current trading
Trading for the first six months of the year has been positive, with overall
performance consistent with the Board's expectation. As a result, the Group
expects to deliver first half revenue growth of c. 5% to c. £51m.
The Group continues to drive benefits from the investment made in its
commercial and operational infrastructure, which together with the revenue
growth, are expected to result in an improved adjusted operating margin over
the same period in FY 2023.
Testing Products has continued to experience good demand in the first half,
with particularly strong growth in ADAS platforms. As expected, the Testing
Services business has returned to growth in both the Group's US and China
based operations. Both sectors have good commercial momentum into the second
half of the financial year.
As expected, performance in the Simulation sector will be weighted towards the
second half of the financial year, as a series of simulator systems
manufactured during the first half are delivered to customers after the period
end.
ABD Solutions continues to make good progress, with several full-scale
commercial opportunities for the Indigo Drive retrofit automation system in
the near-term pipeline.
Financial position
The balance sheet remains robust with net cash at 29 February 2024 expected to
be c. £27m (28 February 2023: £21.3m, 31 August 2023: £32.0m), after the
final deferred consideration payment of £5.7m for the acquisition of Ansible
Motion.
The Group's strong cash position and ongoing cash generation leave it well
positioned to continue to prudently invest in organic growth and further value
enhancing acquisitions.
Outlook
The Group delivered strong order intake during the first half and has a solid
order book, providing good visibility into the second half of the year. The
Board remains confident that the Group will make further financial and
strategic progress this year, with its expectations for FY 2024 performance
unchanged at this stage. Future growth prospects remain supported by
long-term structural and regulatory growth drivers in active safety,
autonomous systems and the automation of vehicle applications.
Enquiries:
AB Dynamics plc 01225 860 200
Dr James Routh, Chief Executive Officer
Sarah Matthews-DeMers, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Joint Broker) 0207 418 8900
Mike Bell
Ed Allsopp
Stifel Nicolaus Europe Limited (Joint Broker) 0207 170 7600
Matthew Blawat
Harry Billen
Teneo 0207 353 4200
James Macey White
Matt Low
The person responsible for arranging the release of this information is
Felicity Jackson, Group Legal Counsel.
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