TIDMABDP
RNS Number : 8422L
AB Dynamics PLC
24 April 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
24 April 2018
AB Dynamics plc
("ABD" or the "Group")
Interim Results for the 6 months ended 28 February 2018
AB Dynamics plc (AIM:ABDP), a designer, manufacturer and
supplier of advanced testing systems and measurement products to
the global automotive industry, is pleased to announce its Interim
Results for the six month period to 28 February 2018.
Financial Highlights
-- Revenues increased 39% to GBP15.3m (H1 2017: GBP11.0m)
-- Profit before tax, excluding share option costs, increased
34% to GBP3.30m (H1 2017: GBP2.46m)
-- Cash flow from operating activities increased by GBP4m to GBP5.3m (H1 2017: GBP1.3m)
-- Basic EPS increased 86% to 12.35p (H1 2017: 6.65p), Diluted
EPS increased 82% to 12.03p (H1 2017: 6.61p)
-- Interim dividend increased 10% to 1.465p per ordinary share (H1 2017: 1.331p)
Operational Highlights
-- Very strong demand for Guided Soft Targets
-- Demand for Driving Robots also at an all-time high
-- Good forward order book, providing visibility into FY2019
-- Occupied new state of the art factory and offices at the beginning of the financial year
-- Hopeful of receiving the first order for an Advanced Vehicle Dynamic Simulator
-- Established AB Dynamics (Europe) GmbH, a new operating entity in Germany
Tony Best, Chairman of AB Dynamics, commented:
"We are pleased to report on an excellent start to the current
financial year based on a strong commercial performance. We have
built a good forward order book, both for the remainder of 2018 and
into next year which gives us confidence in meeting market
expectations.
The Group continues to invest in its people, products and
facilities, and we now have 130 employees, an increase of 41% over
the last year. We continue to evolve our structure to support a
large and growing installed base of equipment and systems across
the world, whilst also ensuring we carry on delivering the
innovative new products and services that our customers expect.
During the period, we established a new operating entity in Germany
which will provide improved customer support and a local
engineering resource.
The Board is pleased to announce the increased dividend to
shareholders of 1.465p per ordinary share that is supported by the
strength of our business and future prospects."
For further information please contact:
AB Dynamics plc
Tony Best, Chairman
Rob Hart, Chief Financial Officer
Mat Hubbard, Chief Operating
Officer 01225 860 200
Cairn Financial Advisers LLP
(Nomad)
Tony Rawlinson
Liam Murray 0207 213 0880
Cantor Fitzgerald Europe (Broker)
David Foreman, Phil Davies
(Corporate Finance)
Caspar Shand Kydd, Alex Pollen
(Sales) 0207 894 7000
IFC Advisory (PR)
Tim Metcalfe
Graham Herring
Heather Armstrong 0203 934 6630
Overview of AB Dynamics plc
AB Dynamics is a leading designer, manufacturer and provider of
advanced testing and measurement products for vehicle suspension,
brakes and steering to the global automotive research and
development sector.
The Group is headquartered in Bradford on Avon employing
approximately 130 staff. AB Dynamics currently supplies all of the
top twenty automotive manufacturers, including Honda, Toyota, Ford
and Volkswagen, who routinely use the Group's products to test
vehicle safety and dynamics.
Chairman's Statement
We are pleased to report on an excellent result for the first
six months of our financial year ended 28 February 2018. A strong
commercial performance has resulted in reported revenue growing by
39% to GBP15.3million (H1 FY2017: GBP11.0m) and adjusted profit
before tax (excluding non-cash share option charges) increasing by
34% to GBP3.3m (H1 FY2017: GBP2.46m). Despite a significant
increase in administrative expenses GBP1.98million (H1 2017:
GBP0.9m) largely due to the reversal of FX gains and
reclassification of some engineers to administration, the operating
margin at 21.5% is comparable to previous years (H1 2017 21.9%).
Net cash at the period end was GBP12.9 million (H1 FY2017: GBP14.8
million) with the reduction in net cash being predominately due to
planned expenditure on our new factory and offices.
The occupation of our new headquarters occurred at the beginning
of the current financial year and this allowed more of our
employees to be housed in a single location. Following careful
planning, this relocation was completed with the minimum of
disruption to the business and we had the pleasure of hosting our
Annual General Meeting on the 7(th) December 2017 in our new
conference facility.
The Group has established a strong forward order book and there
remain good opportunities for future growth. We have therefore
retained the use of our factory in Holt Road, which is now
predominately an assembly area and machine shop, and we will
continue to lease and to occupy the majority of our existing
smaller sites nearby in order to meet our expected capacity needs.
We have purchased land adjacent to our new facility and outline
planning permission has been received for an additional unit of
approximately 3,000m(2) , similar in size to the new
headquarters.
The Group is seeing widespread demand for its products and
services, most notably for Guided Soft Targets (GST), which are
used by the automotive industry to evaluate and test the many
developments in Advanced Driver Assistance Systems (ADAS) that are
now being considered. The extensive use of the GST has benefited
from the approvals obtained from key vehicle safety organisations
both in Europe (EuroNCap) and the US (NHTSA) for ADAS testing.
Demand for ABD's driving robots has also reached an all-time
high.
The Group's future growth continues to be dependent upon the
design and development of innovative and sophisticated products
that can assist automotive OEMs and test houses in measuring and
evaluating new vehicles. The Group continues to invest in and to
expand its design and development capabilities to address these
needs and a number of exciting new product development programmes
are underway. Whilst a number of these developments remain
commercially sensitive, we can report that we have made good
progress with our Advanced Vehicle Dynamic Simulator, a Driver in
Loop Simulator developed in collaboration with Williams Advanced
Engineering, where we are now increasingly hopeful of receiving the
first order.
The Group continues to evolve its structure and business
processes to support a large and growing installed base of
equipment and systems, whilst also ensuring that we do not
compromise on our ability to deliver new products and services to
customers. During the period the Group established a new operating
entity in Germany, AB Dynamics (Europe) GmbH, which will provide
enhanced levels of customer support and a local engineering
capability.
We are pleased to report that the forward order book provides a
sales pipeline for the remainder of this financial year and into
the next and we look forward to the full year with confidence.
As previously announced, Tim Rogers stepped down as Chief
Executive Officer at the end of February 2018. The recruitment
process for his successor is well underway and it is hoped to be
able to announce his successor in the summer. On behalf of the
Board I would like to thank all our employees, now numbering 130,
for their hard work during a very busy first half. The contribution
of each and every employee is valued and appreciated and our
success is due to their continued commitment and enthusiasm.
We are pleased to announce that the Directors are declaring an
interim dividend of 1.465p per ordinary share. The ex-dividend date
will be 3 May with a record date of 4 May and payment date 18 May
2018.
Anthony Best
Chairman
23 April 2018
AB Dynamics plc
Unaudited consolidated statement of comprehensive income
for the six months ended 28 February 2018
Unaudited Unaudited Audited
6 months 6 months Year
ended 28 ended 28 ended
February February 31 August
2018 2017 2017
GBP GBP
Notes
Revenue 15,286,844 11,001,085 24,570,050
Cost of sales (10,021,727) (7,629,162) (16,654,153)
Gross profit 5,265,117 3,371,923 7,915,897
Administrative expenses (1,981,218) (898,286) (1,985,069)
Fair value (losses) / gains
in respect of foreign currency
forward contracts - (59,241) (59,241)
Adjusted Operating profit
before Share based payment
costs 3,283,899 2,414,396 5,871,587
Share based payment costs (366,204) (805,649) (1,464,817)
Operating Profit 2,917,695 1,608,747 4,406,770
Net finance income and (costs) 18,977 43,010 65,257
Profit before taxation 2,936,672 1,651,757 4,472,027
Income tax expense (548,767) (430,923) (569,286)
Profit after taxation and
total comprehensive income
for the period 2,387,905 1,220,834 3,902,741
Earnings per share-Basic 2 12.35p 6.65p 20.83p
Earnings per share-Diluted 2 12.03p 6.61p 20.56p
AB Dynamics plc
Unaudited consolidated statement of financial position
for the six months ended 28 February 2018
Unaudited Unaudited Audited
28 February 28 February 31 August
2018 2017 2017
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 12,943,824 5,181,045 10,464,904
Deferred tax assets 208,646 - 148,140
13,152,470 5,181,045 10,613,044
CURRENT ASSETS
Inventories 6,878,530 3,780,447 4,959,435
Trade receivables 6,251,428 3,121,141 7,115,351
Other receivables, deposits and
prepayments 1,614,098 1,285,884 1,536,134
Amount owing by contract customers 1,012,889 1,205,473 1,675,508
Derivative financial instruments - - -
Taxation - - -
Cash and cash equivalents 12,895,939 14,776,087 9,619,345
28,652,884 24,169,032 24,905,773
TOTAL ASSETS 41,805,354 29,350,077 35,518,817
EQUITY AND LIABILITIES
Called up share capital 193,875 191,119 191,119
Share premium account 9,668,311 8,579,264 8,579,265
Reconstruction reserve (11,284,500) (11,284,500) (11,284,500)
Merger relief reserve 11,390,000 11,390,000 11,390,000
Retained earnings 21,741,167 16,347,092 19,370,938
TOTAL EQUITY ATTRIBUTABLE TO OWNERS
OF
THE COMPANY AND TOTAL EQUITY 31,708,853 25,222,975 28,246,822
NON-CURRENT LIABILITIES
Deferred tax liabilities - 53,648 -
CURRENT LIABILITIES
Trade and other payables 9,461,622 3,856,571 6,951,803
Derivative financial instrument - 58,165 -
Provision for taxation 634,879 158,718 320,192
10,096,501 4,073,454 7,271,995
TOTAL LIABILITIES 10,096,501 4,127,102 7,271,995
TOTAL EQUITY AND LIABILITIES 41,805,354 29,350,077 35,518,817
AB Dynamics plc
Unaudited statement of changes in equity
for the six months ended 28 February 2018
Share Share Merger Reconstruction Retained Total
capital premium relief reserve profits equity
reserve
GBP GBP GBP GBP GBP GBP
At 31 August 2017 191,119 8,579,265 11,390,000 (11,284,500) 19,370,938 28,246,822
Share based payment
expense - - - - 366,204 366,204
Profit after taxation
and Total comprehensive
Income for the
financial year - - - - 2,387,905 2,387,905
Dividend paid - - - - (383,880) (383,880)
Issue of shares,
net of share
issue costs 2,756 1,089,046 - - - 1,091,802
At 28 February
2018 193,875 9,668,311 11,390,000 (11,284,500) 21,741,167 31,708,853
At 31 August 2016 177,646 2,590,267 11,390,000 (11,284,500) 14,643,035 17,516,448
Share based payment
Expense - - - - 805,649 805,649
Profit after taxation
and
Total comprehensive
Income for the
financial year - - - - 1,220,834 1,220,834
Dividend paid (322,426) (322,426)
Issue of shares,
net of share issue
costs 13,473 5,988,997 - - - 6,002,470
At 28 February
2017 191,119 8,579,264 11,390,000 (11,284,500) 16,347,092 25,222,975
At 31 August 2016 177,646 2,590,267 11,390,000 (11,284,500) 14,643,035 17,516,448
Change in accounting
policy - - - - (62,850) (62,850)
At 31 August 2016
as restated 177,646 2,590,267 11,390,000 (11,284,500) 14,580,185 17,453,598
Share based payment
expense - - - - 1,464,817 1,464,817
Profit after taxation
and
Total comprehensive
Income for the
financial year - - - - 3,902,741 3,902,741
Tax impact of exercised
Share Options - - - - - -
Dividend paid (576,805) (576,805)
Issue of shares,
net of share issue
costs 13,473 5,988,998 - - - 6,002,471
At 31 August 2017 191,119 8,579,265 11,390,000 (11,284,500) 19,370,938 28,246,822
AB Dynamics plc
Unaudited cash flow statement
for the six months ended 28 February 2018
Unaudited Unaudited Audited
6 months 6 months Year
Ended Ended Ended
28 February 28 February 31 August
2018 2017 2017
GBP GBP GBP
Cash flow from operating activities
Profit before taxation 2,936,672 1,651,757 4,472,027
Adjustments for: -
Change in accounting policy - - (78,562)
Depreciation of property, plant
and equipment 214,245 125,533 266,856
Loss on sale of property, plant
and equipment 6,750 4,242 4,243
Finance income and costs - (32,270) -
Interest income (18,977) (43,010) (65,257)
Share based payment 366,204 805,649 1,464,817
Operating cash flows, before working
capital changes 3,504,894 2,511,901 6,064,124
Decrease/(increase) in inventories (1,919,095) (588,804) (1,767,793)
Decrease/(increase) in trade and
other receivables 1,448,578 (718,061) (5,432,557)
(Decrease)/increase in other payables 2,509,819 247,710 3,342,941
Fair value loss/(gain) on derivative
instruments - - (90,434)
Cash flow (used in) / from operations 5,544,196 1,452,746 2,116,281
Interest received 18,977 43,010 65,257
Income tax paid (294,586) (188,513) (351,476)
Net cash flow (used in) / from operating
activities 5,268,587 1,307,243 1,830,062
Cash flow used in investing activities
Purchase of property, plant and
equipment (2,699,915) (2,615,723) (8,040,906)
Sale of property, plant and equipment - - -
Net cash flow used in investing
activities (2,699,915) (2,615,723) (8,040,906)
Cash flow used in financing activities
Dividends paid (383,880) (322,426) (576,805)
Proceeds from issue of share capital,
net of share issue costs 1,091,802 6,002,470 6,002,471
Net cash flow from/(used in) financing
activities 707,922 5,680,044 5,425,666
Net (decrease) / increase in cash
and cash equivalents 3,276,594 4,371,564 (785,178)
Cash and cash equivalents at beginning
of period 9,619,345 10,404,523 10,404,523
Cash and cash equivalents at end
of period 12,895,939 14,776,087 9,619,345
AB Dynamics plc
Notes to the unaudited interim report
for the six months ended 28 February 2018
1. Basis of preparation
The Company is a public limited company limited by shares and
incorporated under the UK Companies Act. The Company is domiciled
in the United Kingdom and the registered office and principal place
of business is Middleton Drive, Bradford on Avon, Wiltshire, BA15
1GB.
The principal activity is the specialised area of design and
manufacture of test equipment for vehicle suspension, steering,
noise and vibration. The company also offers a range of services
which include analysis, design, prototype manufacture, testing and
development.
The interim financial information has been prepared in
accordance with the basis of the accounting policies set out in the
annual report and accounts for the year ended 31 August 2017, which
have been prepared in accordance with International Financial
Reporting Standards as adopted for use by the European Union. The
interim accounts are unaudited and do not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006.
The same accounting policies, presentation and methods of
computation have been followed in this unaudited interim financial
information as those which were applied in the preparation of the
Group's annual statements for the year ended 31 August 2017, upon
which the auditors issued an unqualified opinion, and which have
been delivered to the registrar of companies.
The interim financial information has been drawn up using
accounting policies and presentation expected to be adopted in the
Group's full financial statements for the year ended 31 August
2018. Any new standards that will be adopted in full for the first
time in the year-end financial statements did not have a material
impact on this interim financial information.
The interim financial information for the six months ended 28
February 2018 was approved by the Board on 23 April 2018.
The Directors are declaring an interim dividend of 1.465p per
ordinary share. The ex-dividend date will be 3 May, the record date
4 May and the payment date 18 May 2018.
2. Earnings per share
The calculation of earnings per share is based on the following
earnings and number of shares:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended Ended
28 February 28 February 31 August
2018 2017 2017
GBP GBP GBP
Profit after tax attributable
to owners of the Company 2,387,905 1,220,834 3,902,741
Weighted average number of shares
Basic 19,338,217 18,351,725 18,734,960
Diluted 19,853,038 18,472,797 18,982,585
Earnings per share
Basic 12.35 pence 6.65 pence 20.83 pence
Diluted 12.03 pence 6.61 pence 20.56 pence
3. Analysis of revenue by geographical area and major customers
Revenues attributable to individual foreign countries are as
follows:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
February February August
2018 2017 2017
GBP GBP GBP
United Kingdom 478,935 405,771 1,174,643
Rest of the European Union 3,864,540 2,908,371 8,965,899
North America 2,022,911 2,449,020 3,299,671
Rest of the World 8,920,458 5,237,923 11,129,837
------------ ------------ ------------
15,286,844 11,001,085 24,570,050
------------ ------------ ------------
There were no material non-current assets located outside the
United Kingdom.
Revenues are derived from the following:
Revenue from sale of goods 14,152,302 8,844,552 20,766,061
Revenue from construction contracts 1,134,542 2,156,533 3,803,989
-------------- ----------- -----------
15,286,844 11,001,085 24,570,050
-------------- ----------- -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UOUNRWBASUAR
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April 24, 2018 02:00 ET (06:00 GMT)
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