AB Dynamics (ABDP) investor relations material

Strategic vision and market positioning

• Aims to double revenue and triple operating profit over the medium term, targeting 10% organic revenue growth and margin expansion to over 20%.

• Growth strategy leverages regulatory and structural drivers, including safety regulations, new powertrains, and increased complexity in ADAS and vehicle testing.

• Maintains a diversified, OEM-agnostic, and powertrain-agnostic business model, built through strategic acquisitions and global expansion.

• Six value-enhancing acquisitions in six years have transformed the group into a multinational with 12 facilities across Europe, North America, and Asia Pacific.

• Global customer base with strong relationships among OEMs, Tier 1 suppliers, and regulatory agencies.

Business segments and growth drivers

• Testing products account for 62% of FY24 revenue, with strong organic growth and a 19% operating margin.

• Simulation division, contributing 23% of revenue, is experiencing mass adoption, especially in road car and ADAS markets, with a 28% margin.

• Testing services, at 15% of revenue, benefit from regulatory changes and new model launches, delivering a 25.1% margin.

• Growth in all segments is driven by increasing regulatory complexity, new vehicle categories, and the need for efficiency and speed in development.

• Expansion into adjacent markets like mining and defense is planned via ABD Solutions.

Financial performance and guidance

• Revenue grew from £62m in 2020 to £111m in 2024, with operating profit rising from £11m to £20m; FY25 adjusted operating profit expected at £22.3m.

• Maintains net cash of £31.2m as of May 2025, supporting ongoing investment and acquisitions.

• Capital allocation prioritizes organic R&D, capex, and disciplined M&A, with a self-funded acquisition budget of £30–50m per year.

• Margin expansion targeted through operational gearing, ERP implementation, supply chain improvements, and process standardization.

• Board expects FY25 performance in line with expectations, supported by a strong order book and robust cash generation.