REG - AB Dynamics PLC - Half Year Trading Update and Notice of Results

Ab DynamicsAnnouncement

25/03/2025 07:00

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RNS Number : 9316B  AB Dynamics PLC  25 March 2025

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
(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:

 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 710 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 David
Forbes, Company Secretary.

 

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