AB Dynamics (ABDP) H1 2025 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%, supported by strong performance across all sectors and positive customer activity.

• Successfully delivered on medium-term growth strategy, including the acquisition and integration of Bolab, which expanded capabilities in automotive power electronics testing.

• Maintained a net cash balance of £27.2m, supporting further investment and a 20% increase in interim dividend to 2.80p per share.

• Strategic progress in organic growth, margin expansion, and M&A, with ambition to double revenue and triple operating profit medium-term.

• ABD Solutions expanded into adjacent markets, delivering enabling technology and recognizing first revenues from niche mining applications.

Financial highlights

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

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

• Cash conversion at 98% for the period, with a three-year rolling average of 109%.

• Order book at period end was £42.1m, providing strong revenue visibility for H2.

• Interim dividend increased 20% to 2.80p per share.

Outlook and guidance

• Board expects FY 2025 adjusted operating profit in line with current expectations (£22.4m mean analyst consensus), supported by long-term structural and regulatory growth drivers.

• Order book of £42.1m, with £31.4m for H2 2025 delivery, provides strong revenue visibility.

• Positive outlook for FY 2025, with resilience against near-term industry headwinds and macroeconomic risks.

• Monitoring tariff impacts; direct exposure limited, but indirect effects like inflation to be mitigated via price increases.

• Geographic diversification and critical product offerings provide resilience against market volatility.