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1 Jul 2013 07:00
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1 July 2013
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AB Dynamics plc("ABD" or the "Group" )
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Business Update
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AB Dynamics plc (AIM: ABDP), the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry, is pleased to announce the signing of two significant contracts which provide the Company with strong forward visibility for the year ended 31 August 2014.
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The first contract is with the Motor Industry Research Association ("MIRA") which has confirmed an order for a new four wheel Suspension Parameter Measurement Machine ("SPMM"). Manufacture of the SPMM will commence immediately with delivery expected in summer 2014. An SPMM's contract value depends on the options purchased; it is typically more than Ā£1.5 million.
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The order is the third of three recent SPMM orders that will contribute to the Company's budgeted turnover for the next financial year commencing on 1 September 2013. This order is particularly pleasing and a further endorsement of the Company's capabilities, as MIRA is a long term repeat customer having purchased the Company's first SPMM in 1995. This latest platform will provide MIRA with significantly advanced capabilities enabling them to test larger vehicles than before, together with the ability to measure moments of inertia and centre of gravity. The new rig represents a significant upgrade in performance when compared to the 1995 model.
The Company is also pleased to announce its first order for its latest guided soft crash target vehicle ("GSTV"). The order has been placed by a German automotive safety group and design is in progress with delivery expected in H1 2014. The total order value (which includes a package of additional testing equipment) is approximately Ā£400,000 which is expected to be recognised in the next financial year ending 31 August 2014. The GSTV is an alternative version of ABD's existing soft crash target vehicle (SCTV), enabling higher speed collisions of up to 110km/h.
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Tim Rogers, Managing Director of AB Dynamics commented: "Current trading for 2013 continues to be in line with the company's expectations and these two contracts add excellent visibility to next year's revenues. We are delighted that MIRA has endorsed our expertise by selecting us to supply a further SPMM for its suspension testing, demonstrating a leading position we have in this vital part of the automotive R&D market. We are also very pleased to have secured the first order for a guided soft crash target vehicle. We continue to make good progress against the objectives we stated at the time of our IPO earlier this year and look to the future with confidence."
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For further information please contact:
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AB Dynamics plc Tim Rogers, Managing Director Tony Best, Chairman Ā | 01225 860 200 |
Cairn Financial Advisers LLP (Nomad) Tony Rawlinson Avi Robinson Ā | 0207 148 7900 |
Charles Stanley Securities Limited (Broker) Dugald J. Carlean Karri Vuori Ā | 0207 149 6000 |
Newgate Threadneedle (PR) Josh Royston Heather Armstrong Caroline Evans-Jones | 0207 653 9850 |
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Overview of AB Dynamics plc
ABD is a leading designer, manufacturer and provider of advanced testing and measurement products for vehicle suspension, brakes and steering to the global automotive research and development sector. The Group was founded in 1982 and listed on AIM in May 2013. The Group is headquartered in Bradford on Avon employing approximately 50 staff. ABD currently supplies seventeen of the top twenty automotive manufacturers, including Honda, Toyota, Ford and Volkswagen, who routinely use the Group's products to test vehicle safety.
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