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(Alliance News) - AB Dynamics PLC on Thursday warned Covid-19 could have an impact on performance in the second half of its financial year.
In the first half ended February 29, the company said good progress was made, with performance ahead year-on-year and in line with expectations.
Bradford-on-Avon, Wiltshire-based AB Dynamics makes testing systems and measurement products for the automotive and mobility sectors.
The Track Testing unit delivered growth year-on-year due to in part to an acquisition, though robot sales did slow as anticipated. Sales to Asia Pacific and Europe rose, but sales in China and Germany were held back buy macroeconomic factors, the firm said.
AB Dynamics achieved revenue growth in Laboratory Testing & Simulation, again due to an acquisition. It is "encouraged" by the pipeline in the unit.
Looking at Covid-19, the firm said: "Although it is difficult to predict its impact at this stage, the board anticipates any potential deferred customer order intake and/or supply constraints will likely have an impact on the financial performance in the second half of the year.
"We have sufficient inventory levels to support ongoing production and alternative sources of supply for the majority of items that might be affected if the current situation continues into the longer term, absent any additional trade or travel restrictions. Clearly the global impact of Covid-19 is evolving however, we will keep the situation under close review and update investors on any material changes."
The balance sheet is "strong", AB Dynamics said, with cash at February 29 of GBP35.2 million.
Shares were 32% higher on Thursday morning in London at 1,160.00 pence each.
By George Collard; georgecollard@alliancenews.com
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