AB Dynamics (ABDP) H2 2026 TU earnings summary

Executive summary

• Strategic review led to the decision to exit the VadoTech Chinese Testing Services business due to persistently weak customer volumes, with contract termination expected in H1 FY27.

• VadoTech will be treated as a discontinued operation in FY26, with FY25 comparatives restated accordingly.

• Trading conditions became more challenging in H2 FY26 due to reduced customer confidence, logistics headwinds from Middle East conflict, and disruptions in automotive development, especially among European OEMs.

Financial highlights

• FY26 reported Group revenue expected to be approximately £4m lower due to VadoTech's reclassification.

• Group revenue for continuing operations in FY26 projected to be in the range of £90-95m.

• FY25 revenue restated to £104.2m from £114.7m after excluding discontinued operations.

• Adjusted operating profit for FY25 restated to £22.3m from £23.3m.

• Adjusted operating cash for FY25 restated to £27.8m from £29.4m.

Outlook and guidance

• Sales pipeline remains healthy, but order conversion is delayed as customers lengthen procurement timelines.

• Customer deliveries in FY26 expected to be heavily weighted toward year-end, increasing working capital.

• Long-term growth drivers remain strong, supported by regulatory and technological trends.