REG - AB Dynamics PLC - Half Year Pre-Close Trading Update

Ab DynamicsAnnouncement

28/02/2024 07:00

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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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