AB Dynamics (ABDP) H2 2024 Pre Recorded earnings summary

Executive summary

• Achieved 10% revenue growth and 22% operating profit growth for FY 2024, with strong performance across all sectors and margin expansion to 18.2%.

• Launched new products and secured a GBP 2 million contract for automated mileage accumulation, with further order potential.

• Completed the acquisition of VTS in the U.S. and BOLAB Systems in Germany, supporting portfolio expansion and inorganic growth.

• Earned an MSCI AAA rating, reflecting progress in sustainability and governance.

• Diluted EPS rose 15% to GBP 0.70; dividend increased 20% to 7.63p.

Financial highlights

• Revenue reached GBP 111.3 million, up 10% year-over-year; operating profit rose to GBP 20.3 million.

• Operating margin expanded by 170 basis points to 18.2%; gross margin stable at 59.6%.

• EPS increased 15% to GBP 0.70; dividend per share up 20% to 7.63p.

• Cash conversion at 115% for FY 2024, with a three-year average of 116%.

• Order book of GBP 30.3 million provides visibility into FY 2025.

Outlook and guidance

• Positive outlook for FY 2025, with expectations slightly ahead of current forecasts.

• Long-term structural and regulatory drivers support continued double-digit growth.

• Medium-term plan targets 10% organic revenue CAGR, margin expansion to 20%+, and 100% cash conversion.

• Acquisition pipeline remains strong, supporting further inorganic growth.