AB Dynamics set to beat full-year market expectations

28th Sep 2023 11:51

(Sharecast News) - Testing, simulation and measurement products specialist AB Dynamics reported consistently strong trading momentum throughout the year in a trading update on Thursday, following an impressive first-half performance.

The AIM-traded company specifically noted its performance in the track testing sector and significant growth in the laboratory testing and simulation sectors.

That boost was partly attributed to the early delivery of a high-margin contract.

Further, throughout 2023, AB Dynamics saw advancements in its ABD Solutions offering.

Alongside that organic growth, Ansible Motion - a simulator business procured during the year - also showed a robust performance, adding to the group's overall growth metrics.

Reflecting the stellar trading in the latter half of the year, the AB Dynamics board projected that 2023 revenue would cross the £100m mark - a first for the company.

The projected growth was bolstered by significant investments made in productivity and capability in recent times.

Such strong revenue growth was set to culminate in a full-year adjusted operating profit surpassing current market expectations.

From a financial standpoint, AB Dynamics continued its tradition of robust operating cash conversion.

As of 31 August, net cash stood at £32.0m, up from the prior year's £29.2m, even after considering the funding allocated for acquiring Ansible Motion.

"Alongside sales, order intake continued to be strong through the second half of 2023, providing good momentum as the business enters 2024," AB Dynamics said in its statement.

At 1115 BST, shares in AB Dynamics were up 3.54% at 1,698p.

Reporting by Josh White for Sharecast.com.