AB Dynamics (ABDP) H1 2025 Pre Recorded earnings summary

Executive summary

• Revenue grew 11% year-over-year to £58.0m, with operating profit up 21% to £10.8m and margin expansion to 18.6%.

• Strong performance across all business segments, with positive market and customer activity.

• Bolab acquisition completed and integrated, supporting expansion in automotive power electronics testing.

• Net cash of £27.2m at period end supports further investment and a 20% increase in interim dividend to 2.80p per share.

• Strategic focus on organic growth, margin expansion, and disciplined M&A to double revenue and triple operating profit medium-term.

Financial highlights

• Revenue up 11% to £58.0m; adjusted operating profit up 21% to £10.8m; adjusted diluted EPS up 20% to 37.0p.

• Gross margin increased by 190 bps to 60.2%; operating margin up 160 bps to 18.6%.

• Cash conversion at 98% for H1 2025; three-year rolling average at 109%.

• Net cash at period end was £27.2m after £3.5m investment in Bolab acquisition.

• Order book at £42.1m, with £31.4m for H2 delivery, providing strong revenue visibility.

Outlook and guidance

• FY 2025 adjusted operating profit expected in line with current analyst expectations (£22.4m).

• Strong order book and trading momentum provide good visibility into H2.

• Long-term growth supported by regulatory drivers in safety, autonomy, and vehicle automation.

• Ambition to double revenue and triple operating profit over the medium term, targeting 10% organic revenue growth and 20%+ margins.

• Geographic diversification and resilient platform position the Group well for market volatility.