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:
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AB
Dynamics plc
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01225 860 200
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Dr James Routh, Chief Executive
Officer
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Sarah Matthews-DeMers, Chief
Financial Officer
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Peel Hunt LLP (Nominated Adviser and Joint
Broker)
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0207 418 8900
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Mike Bell
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Ed Allsopp
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Stifel Nicolaus Europe Limited (Joint
Broker)
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0207 170 7600
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Matthew Blawat
Harry Billen
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Teneo
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0207 353 4200
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James Macey White
Matt Low
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The person responsible for arranging
the release of this information is Felicity Jackson, Group Legal
Counsel.
