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RNS Number : 9512O  AB Dynamics PLC  15 January 2026

15 January 2026

AB Dynamics plc

AGM 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 trading update,
to coincide with the Company's Annual General Meeting taking place later
today.

 

Current trading

 

The positive trading momentum in the final quarter of FY25 has continued
during the four months to 31 December 2025, with order intake in the period of
£46m (four months to 31 December 2024: £48m).

 

The delivery phasing from order intake in the final quarter of FY25 and in
early FY26 is expected to result in a trading performance weighted
approximately 40% / 60% towards the second half of the current year, set
against the context of a greater first half bias in FY25 than typically
expected.

 

Financial position and cash flow

 

The Group's financial position remains robust with net cash at 31 December
2025 of £35.5m (31 December 2024: £23.2m / 31 August 2025: £41.4m), which
provides significant flexibility for the Group to take advantage of its active
pipeline of potential acquisition targets. Operating cash generation in FY26
is expected to have a similar second half bias to revenue, reflecting the
investment in working capital on orders received through the turn of the year.

 

Outlook

 

The Group is geographically diversified, OEM and powertrain agnostic, selling
into R&D and testing functions, providing resilience against short-term
automotive industry production headwinds. Future growth prospects remain
supported by strengthening long-term structural and regulatory growth drivers
in active safety, autonomous systems and the automation of vehicle
applications, underpinning our medium-term financial objectives. We are
continuing to invest in new product development and have the capacity to
accelerate progress with further value creating acquisitions.

 

Underlying demand drivers remain strong, and the increased customer activity
seen towards the end of the last financial year has continued into FY26. As a
result, the Group carries forward £50m (31 December 2024: £42m) of orders,
which together with revenue already delivered provides c50% cover of FY26
expected revenue. The order book includes £14m expected to be delivered in
FY27, building visibility into the medium term.

 

Whilst mindful of any short-term macroeconomic disruption driven by
geopolitical events, the Board remains confident that the Group will make
further financial and strategic progress this year and expects to deliver FY26
adjusted operating profit in line with current expectations(1).

 

Commenting, Sarah Matthews-DeMers, Chief Executive Officer said:

 

"Encouragingly, underlying demand drivers remain strong, and the increased
customer activity seen towards the end of the last financial year continued
into FY26.

 

"Whilst mindful of any short-term macroeconomic disruption driven by
geopolitical events, the Board remains confident that the Group will make
further financial and strategic progress this year and expects to deliver FY26
adjusted operating profit in line with current expectations(1)."

 

(1) Company compiled analyst expectations is for a mean adjusted operating
profit for the year ended 31 August 2026 of £24.5m.

 

 

Enquiries:

 AB Dynamics plc                                                                                                  01225 860 200
 Sarah Matthews-DeMers, Chief Executive Officer

 Peel Hunt LLP (Nominated Adviser and Joint Broker)                                                               0207 418 8900
 Mike Bell
 Ed Allsopp

 Stifel Nicolaus Europe Limited (Joint Broker)                                                                    0207 418 8900
 Matthew Blawat
 Orme Clarke

 Teneo                                                                                                            0207 353 4200
 James Macey White

 Matt Low

 

 

About AB Dynamics plc

AB Dynamics is a leading designer, manufacturer and supplier of advanced
testing, simulation and measurement products and services to the global
transport market.

 

AB Dynamics is an international group of companies headquartered in Bradford
on Avon. AB Dynamics currently supplies all the major automotive
manufacturers, Tier 1 suppliers and service providers, who routinely use the
Group's products to test and verify vehicle safety systems and dynamics.

 

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