AB Dynamics Notes Customer Difficulties Despite Strong Annual Outturn

Wed, 27th Nov 2019 11:24

(Alliance News) - AB Dynamics PLC on Wednesday reported a "very strong" annual performance, with profit growth nearly 40%, though it has noted some difficulties for customers going ahead.

Shares were 8.1% lower on Wednesday morning in London at 2,618.00 pence each.

The testing systems and measurement products maker reported a pretax profit of GBP11.0 million for the 12 months to August 31, 38% higher than the year before. The adjusted figure was up 59% to GBP13.7 million.

AB Dynamics's revenue rose 56% to GBP58.0 million, which the company attributed to increased demand from customers.

It is paying a 2.79p per share final dividend, taking the full-year total to 4.40p, up 20% from the year before.

"The group's performance in 2019 was very strong, delivered through continued development of new products and services to a buoyant market for advanced driver assistance systems and autonomous vehicle development," said Chief Executive James Routh.

It was a tenth successive year of record revenue and adjusted profit, AB Dynamics noted, with the market background "very favourable".

"The outturn also benefited from our success in reducing our lead times, which had lengthened with strong levels of demand, to more appropriate levels," it added.

AB Dynamics reported a 50% rise in track testing revenue to GBP49.8 million, while laboratory testing & simulation revenue more than doubled to GBP8.2 million.

Looking ahead, the company is investing "heavily" into new product development. The order book is "healthy", it continued, and the outlook is healthy despite the difficulties some customers are facing selling into a weak global automotive market.

By George Collard; georgecollard@alliancenews.com

AB Dynamics