- AB Dynamics
- 03 May 2024 17:22:12
Source: Sharecast
The AIM-traded company anticipated achieving first-half revenue growth of 5%, reaching around £51m.
It attributed the growth to its strategic investments in its commercial and operational infrastructure, which were expected to yield an improved adjusted operating margin compared to the same period in the prior year.
Notably, the testing products segment had seen strong demand, particularly in the advanced driver assistance systems (ADAS) platforms, contributing to the overall positive performance.
Additionally, the testing services business had returned to growth in both the US and China-based operations, with promising commercial momentum expected to carry forward into the second half of the financial year.
While performance in the simulation sector was anticipated to be weighted towards the latter half of the year due to the delivery schedule of simulator systems manufactured in the first six months, AB Dynamics remained optimistic about its outlook.
ABD Solutions, the company's subsidiary focusing on innovation, continued to progress positively, with several significant commercial opportunities for its ‘Indigo Drive’ retrofit automation system in the near-term pipeline.
Financially, AB Dynamics maintained a robust balance sheet, with net cash expected to be around £27m as of 29 February, compared to £21.3m on 28 February 2023.
That position reflected prudent management, including the final deferred consideration payment of £5.7m for the acquisition of Ansible Motion.
“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 said in its statement.
“The board remains confident that the Group will make further financial and strategic progress this year, with its expectations for 2024 financial year 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.”
At 1218 GMT, shares in AB Dynamics were down 2.8% at 1,846.8p.
Reporting by Josh White for Sharecast.com.