AB Dynamics (ABDP) H2 2024 earnings summary

Executive summary

• Achieved 10% revenue growth and 22% operating profit growth for FY 2024, with strong performance across all business sectors and product lines.

• Launched multiple new products and secured a £2 million contract for ABD Solutions, with further follow-on order potential.

• Completed the acquisition of VTS in the U.S. and BOLAB Systems in Germany, expanding product and service capabilities and continuing a successful inorganic growth strategy.

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

Financial highlights

• Revenue rose to £111.3m (up 10%), adjusted operating profit reached £20.3m (up 22%), and adjusted diluted EPS increased 15% to 70.0p year-over-year.

• Adjusted operating margin expanded by 170 bps to 18.2%; gross margin stable at 59.6%.

• Dividend per share increased 20% to 7.63p, supported by robust cash generation and a net cash balance of £28.6 million at year-end.

• Cash conversion at 115% for the year and 116% on a rolling three-year average.

• Closing order book at £30.3m.

Outlook and guidance

• Positive start to FY 2025 with strong Q1 order intake and a positive book-to-bill ratio.

• FY 2025 expected to be slightly ahead of current expectations, with visibility extending into H2 and underpinned by a strong acquisition pipeline.

• Medium-term ambition to double revenue and triple operating profit through 10% organic growth, margin expansion, and acquisitions; targets include 10% organic revenue CAGR and >20% adjusted operating margin.