Good morning, I'm back, it's Paul here with the SCVR for Weds.

It's quiet for news today - please see the header for the running order today.

Estimated timings - I'm running a bit late today, and have also just managed to hit the wrong key and delete everything written so far, so am having to re-do it. I should be finished c. 5pm. (extended, because it's going to take me a while to read through the BOO results & broker note)

Edit at 23:41 - OK that didn't work out as planned, but today's report is now finished.

Ab Dynamics (LON:ABDP)

Share price: 1487p (down 2% today)
No. shares: 22.5m
Market cap: £334.6m

Half year report

AB Dynamics plc (AIM: ABDP, "ABD", "the Group"), the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive market, is pleased to announce its Interim Results for the six-month period to 29 February 2020.

The announcement has been given one of those little titles that PR companies seem to like to insert, to steer us towards the conclusion they want, namely;

"Strong first half financial and operational performance across the Group"

Given that the half year end was 29 Feb 2020, then Covid-19 would not have had much, if any impact on these numbers. Hence they're not terribly significant. Outlook comments matter more at the moment.

Here are my notes on the H1 results-

  • Revenue up 34% to £34.7m
  • Underlying revenue growth is lower, at +11% (still good though). The difference is due to 2 acquisitions, rFpro, and DRI which added more revenues into these figures
  • Adjusted operating profit of £8.6m, up 34% (same % increase as revenues). This is a strikingly high op profit margin of nearly 25% - which means this business has considerable pricing power - it must have good products, with little direct competition, to be able to generate a 25% profit margin
  • Statutory op profit is much lower, at £3.6m. Adjustments look OK, apart from £1.86m inventory impairment, and £0.54m share based payment, both of which strike me as normal costs of doing business
  • Net cash very high, at £35.1m - hence this business looks financially secure, even if Covid-19 hurts its performance in H2 and beyond. No need for a fundraising from shareholders, in my view
  • Adj diluted EPS up 10% to 31.2p - this reflects the increased share…

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