Trading momentum continues into first half for AB Dynamics

12th Mar 2026 13:24

(Sharecast News) -

The AIM-traded designer and supplier of testing, simulation and measurement products to the global transport sector reported order intake of £64m for the six months ended 28 February, compared with £66m a year earlier.

Group revenue for the period was about £49m, in line with expectations and reflecting the company's typical second-half weighting, with roughly 40% of annual revenue generated in the first half.

Underlying demand in the testing products division remained robust, supported by encouraging customer activity particularly in Asia-Pacific and North America.

The company said demand for its suspension parameter measuring machines continued to grow, with additional orders received for delivery in the second half of the current financial year and early 2027.

It said the simulation division also delivered positive momentum, supported by a previously announced €9.7m contract to supply simulation equipment to a major European original equipment manufacturer and strong trading in the group's simulation software business.

In testing services, performance at the group's US operations met expectations, but activity in China was significantly weaker than anticipated under a contract signed with a European OEM late last year.

The customer faced challenging local market conditions, reducing volumes and cutting revenue from the Chinese testing services business by around half to less than £3m for the period.

As a result, AB Dynamics said it expected to record an impairment of around £16m related to the Chinese operation, most of which would be non-cash, and would undertake a strategic review of the business during the second half.

The company said its financial position remained strong, with net cash of £39.3m as at 28 February, compared with £27.2m a year earlier and £41.4m at the end of August.

It said the balance sheet provided flexibility to pursue organic investment and potential acquisitions.

AB Dynamics reported an order book of £47m at the end of February, up from £42m a year earlier.

Together with revenue already recognised in the first half, this provided around 70% cover of expected 2026 revenue.

The order book included £18m scheduled for delivery in the 2027 financial year, improving medium-term visibility.

"Encouragingly, with underlying demand drivers remaining strong, the increased customer activity seen towards the end of the last financial year has continued into FY26," said chief executive Sarah Matthews-DeMers.

She added that the group remained cautious about potential short-term macroeconomic disruption.

"We are mindful of the risk of increased short-term macroeconomic volatility driven by geopolitical events and are maintaining an agile approach, to ensure we minimise any potential disruption and continue to deliver unparalleled service for our customers."

The board said it remained confident the group will deliver further financial and strategic progress during the year and expected adjusted operating profit for the year ending 31 August to be in line with current market expectations, which point to a consensus of about £24.4m.

At 1329 GMT, shares in AB Dynamics were down 3.63% at 1,195p.

Reporting by Josh White for Sharecast.com.