UK's AB Dynamics H1 revenue falls 16% on China weakness

Ab Dynamics

14/04/2026 07:11

Overview

UK testing equipment maker's H1 revenue fell 16% due to order delays and weak China volumes

Adjusted diluted EPS for H1 dropped 15% on lower operating profit

Company launched strategic review of China VadoTech unit, recorded £16.8 mln exceptional items

Outlook

Company expects FY 2026 mean adjusted operating profit in line with market expectations of £24.4m

Company sees 55-60% of FY 2026 revenue weighted to the second half

AB Dynamics maintains medium-term ambition of 10% average organic growth per year

Result Drivers

ORDER TIMING AND CHINA WEAKNESS - Revenue declined due to delays in order intake and lower volumes at VadoTech Testing Services in China, as customer ramp-up did not occur as expected

COST ACTIONS AND OPERATIONAL IMPROVEMENTS - Operating margin was maintained as cost mitigation actions, operational improvements, and a positive revenue mix offset the negative impact of lower revenue

SEGMENT VARIATION - Testing Services revenue fell sharply due to VadoTech underperformance, while Simulation revenue was stable with higher software sales offsetting lower motion platform sales

Company press release: ID:nRSN2754Aa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 48.80 mln
H1 Gross Margin
63.70%
H1 Adjusted Operating Margin
18.60%
H1 Adjusted Operating Profit
GBP 9.10 mln
H1 Operating Profit
-GBP 12.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Ab Dynamics PLC is GBp2,250.00, about 97.4% above its April 13 closing price of GBp1,140.00

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)