REG - AB Dynamics PLC - Pre-close Trading Update

Ab DynamicsAnnouncement

28/09/2023 07:00

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RNS Number : 8887N  AB Dynamics PLC  28 September 2023

28 September 2023

AB Dynamics plc

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 trading update
for the year ended 31 August 2023 ("FY23"), in advance of the publication of
its annual results.

 

Trading update

 

Following a strong performance in H1, the Group is pleased to report that
trading momentum was sustained during the second half of the year. The Group
saw continued good performance in the track testing sector and particularly
strong growth in the laboratory testing and simulation sector, which
benefitted from an earlier than expected delivery of a large, high margin
contract. Further progress has also been made through FY23 in developing the
ABD Solutions offering. In addition to the significant organic growth
achieved, a strong performance was delivered by Ansible Motion, the simulator
business acquired during the year.

 

In light of the better than anticipated trading in the latter part of the
year, the Board expects revenue for FY23 to exceed £100m for the first time.
Enhanced by the significant productivity and capability investment made over
recent years, the strong revenue growth is anticipated to translate into a
full year adjusted operating profit result that is above the top end of the
range of current market expectations(1).

 

Financial position

 

The Group maintained its track record of strong operating cash conversion,
with net cash at 31 August 2023 of £32.0m (2022: £29.2m) after funding the
initial consideration for the acquisition of Ansible Motion.

 

Outlook

 

Alongside sales, order intake continued to be strong through the second half
of FY23, providing good momentum as the business enters FY24.

 

 

(1) Company compiled analyst expectations for the year ended 31 August 2023 is
for adjusted operating profit in the range of £14.7m to £15.9m.

 

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014),
as it forms part of domestic law by virtue of the European Union (Withdrawal)
Act 2018) ("MAR") prior to its release as part of this announcement and is
disclosed in accordance with the Company's obligations under Article 17 of
those Regulations.

 

 

Enquiries:

 AB Dynamics plc                                                                                                  01225 860 200
 Dr James Routh, Chief Executive Officer
 Sarah Matthews-DeMers, Chief Financial Officer

 Peel Hunt LLP                                                                                                    0207 418 8900
 Mike Bell

 Ed Allsopp

 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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