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

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RNS Number : 3020W  AB Dynamics PLC  12 March 2026

12 March 2026

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 and services to the global transport market issues the following
trading update ahead of the publication of its half year results for the
period to 28 February 2026.

 

Half year trading

 

Further to the update provided in January, the positive trading momentum in
the final quarter of FY25 has continued during the first half of FY26, with
Group order intake in the period of £64m (HY25: £66m, FY25: £110m).

 

Group revenue in the first half was approximately £49m, in line with
expectations, and consistent with the previously guided trading performance
weighting of 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.

 

In Testing Products, underlying demand drivers remain strong and customer
activity was encouraging during HY26, particularly in Asia Pacific and North
America. Demand for Suspension Parameter Measuring Machines continued to grow,
with additional orders received during the period for delivery in the second
half of the year and early FY27.

 

Trading momentum in Simulation was positive, bolstered by the previously
announced award of a €9.7m contract to supply simulation equipment to a
major European OEM, as well as a strong trading period for our simulation
software business.

 

In Testing Services, whilst performance has been in line with expectations at
our US businesses, our business in China has seen significantly weaker than
anticipated volumes under the new contract with a European OEM, awarded at the
end of last year. The customer has faced challenging local market conditions
and the lower consequent activity has resulted in revenue reducing by
approximately one half to less than £3m for the period. In light of this, the
Group will record an impairment of the Chinese testing services business and
will undertake a strategic review of that business during the second half of
the year. The impairment will be recorded as a non-underlying item in our HY26
results and is likely to amount to approximately £16m, the majority of which
is non-cash.

 

Financial position and cash flow

 

The Group's financial position remains robust with net cash at 28 February
2026 of £39.3m (28 February 2025: £27.2m, 31 August 2025: £41.4m), which
provides significant flexibility for the Group to take advantage of its
organic investment opportunities and 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 HY26. As a
result, the Group carries forward £47m (28 February 2025: £42m) of orders,
which together with revenue already delivered in the first half provides c70%
cover of FY26 expected revenue. The order book includes £18m expected to be
delivered in FY27, building visibility into the medium term.

 

Whilst mindful of any increased 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).

 

Notice of results

 

The Group will report its half year results for the period to 28 February 2026
on 14 April 2026. A pre-recorded results presentation will be available on the
Group's website, www.abdplc.com, at 7.00am on 14 April 2026. 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
15 April 2026 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) .

 

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

 

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

 

"We are mindful of the risk of increased short-term macroeconomic volatility
driven by geopolitical events and are maintaining an agile approach, to ensure
we minimise any potential disruption and continue to deliver unparalleled
service for our customers. 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 £24.4m.

 

 

Enquiries:

 AB Dynamics plc                                                                                                  01225 860 200
 Sarah Matthews-DeMers, Chief Executive Officer
 Andrew Lewis, Interim Chief Financial Officer

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

 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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