AB Dynamics (ABDP) Trading Update summary

Trading performance

• Achieved significant organic growth in the second half, with full-year revenue expected to exceed £110m and adjusted operating profit anticipated to surpass market expectations of £17.3m–£18.8m.

• Testing Products saw strong demand, especially in driving robots and ADAS platforms.

• Testing Services returned to growth as external impediments were removed, with improved US vehicle access and relaxed Chinese pandemic restrictions.

• Simulation business revenue increased modestly, with several simulator system deliveries in H2.

• Order intake remains strong, providing momentum and visibility for FY 2025.

Financial position

• Maintained strong operating cash conversion, ending FY 2024 with net cash of £28.6m (2023: £32.0m).

Acquisition of Bolab Systems GmbH

• Completed acquisition of Bolab Systems GmbH for an initial €5.0m (£4.2m), with a maximum consideration of €11.0m (£9.3m) including contingent payments.

• Bolab specializes in automotive power electronics testing products for conventional, hybrid, and electric vehicles.

• Acquisition expands Testing Products capabilities and aligns with sector growth drivers.

• Bolab reported 2023 revenue of €3.4m and operating profit of €0.6m, with annualized revenue forecast at €4.0m and adjusted operating profit at €0.8m for FY 2025.

• Acquisition expected to be earnings enhancing in FY 2025; founder will remain with the business.