TIDMABDP
RNS Number : 6910G
AB Dynamics PLC
19 March 2020
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF
THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
19 March 2020
AB Dynamics plc
("AB Dynamics" or "ABD" or the "Group")
Trading Update & Notice of Results
AB Dynamics plc (AIM: ABDP), the designer, manufacturer and
supplier of advanced testing systems and measurement products to
the global automotive and mobility sectors, provides a trading
update in advance of the publication of its interim results for the
period ended 29 February 2020.
Business performance
Performance for the six months ended 29 February 2020 was ahead
of the comparative period and in line with expectations.
Good progress has been made against the Group's strategic
priorities, which are focused on broadening and strengthening ABD
to ensure it continues to capitalise on the substantial growth
opportunities across its end markets. We are pleased with the
impact of our investments made across our product capability,
infrastructure and routes to market. We are also pleased with the
progress of the businesses acquired in 2019 and this, together with
the opening of our international sales offices, has resulted in a
material increase in the proportion of recurring revenue. We
continue to invest in new products and new business systems.
Track Testing performance was ahead of the prior period
resulting from growth in Advanced Driver Assistance Systems (ADAS)
targets and the acquisition of Dynamic Research, Inc., whilst
growth in robot sales slowed, as anticipated. Sales to Asia Pacific
and parts of Europe increased, however market conditions in China
and Germany continue to be challenging due to macroeconomic
factors.
Laboratory Testing and Simulation revenue grew, particularly
following the acquisition of rFpro. We are also encouraged by both
the short term and longer-term pipeline in this sector,
particularly in the field of advanced driving simulators.
COVID-19
The Board is continually monitoring the rapidly changing global
situation regarding the COVID-19 pandemic. Although it is difficult
to predict its impact at this stage, the Board anticipates that any
potential deferred customer order intake and / or supply
constraints will likely have an impact on the financial performance
in the second half of the year.
We have sufficient inventory levels to support ongoing
production and alternative sources of supply for the majority of
items that might be affected if the current situation continues
into the longer term, absent any additional trade or travel
restrictions. Clearly the global impact of COVID-19 is evolving
however, we will keep the situation under close review and update
investors on any material changes.
Financial position
Our balance sheet remains strong with cash at 29 February 2020
of GBP35.2 million, underpinning our investment plans. Following a
detailed review of inventory, a number of items previously included
in the carrying value have been written off. This one-off charge
will be excluded from adjusted operating profit.
Outlook
The Board remains alert to the difficulties created by the
current global macroeconomic environment and the structural changes
in the automotive market. We continue to monitor the rapidly
changing global situation regarding the COVID-19 pandemic, which we
anticipate will present challenges in the second half of the year
due to deferred order intake and the potential for supply
constraints.
However, the combination of the Group's strategy, its
market-leading position across a number of geographies and
regulatory and structural growth drivers means the Board remains
confident in ABD's long-term prospects.
Notice of results
AB Dynamics will announce its interim results for the six months
ended 29 February 2020 on Wednesday 22 April 2020. The management
team will be hosting a presentation for analysts on the day of the
results. Analysts who wish to attend the presentation should
register their interest with Tulchan Communications at
abdynamics@tulchangroup.com or 0207 353 4200.
Enquiries:
AB Dynamics plc 01225 860 200
Tony Best, Chairman
Dr James Routh, Chief Executive Officer
Sarah Matthews-DeMers, Chief Financial Officer
Cairn Financial Advisers (Nomad) 0207 213 0880
Liam Murray
Tony Rawlinson
Ludovico Lazzaretti
Cantor Fitzgerald Europe (Broker) 0207 894 7000
Phil Davies, David Foreman (Corporate Finance)
Caspar Shand Kydd, Keith Dowsing, Arthur Gordon
(Equity Sales)
Tulchan Communications 0207 353 4200
James Macey White
Matt Low
Deborah Roney
The person responsible for arranging the release of this
information is Felicity Jackson, Company Secretary.
About AB Dynamics plc
AB Dynamics is a leading designer, manufacturer and provider of
advanced products for testing and verification of Advanced Driver
Assistance Systems ("ADAS") technology, autonomous vehicle
development and vehicle dynamics to the global automotive research
and development sector.
AB Dynamics is an international group of companies headquartered
in Bradford-on-Avon, UK. AB Dynamics currently supplies all the top
automotive manufacturers, Tier 1 suppliers and service providers,
who routinely use the Group's products to test and verify vehicle
safety systems and dynamics.
Caution regarding forward looking statements
Certain statements in this announcement are forward-looking
statements which are based on the Group's expectations, intentions
and projections regarding its future performance, anticipated
events or trends and other matters that are not historical facts.
These forward-looking statements, which may use words such as
"aim", "anticipate", "believe", "could", "intend", "estimate",
"expect" and words of similar meaning, include all matters that are
not historical facts. These forward-looking statements involve
risks, assumptions and uncertainties that could cause the actual
results of operations, financial condition, liquidity and dividend
policy and the development of the industries in which the Group's
businesses operate to differ materially from the impression created
by the forward-looking statements. These statements are not
guarantees of future performance and are subject to known and
unknown risks, uncertainties and other factors that could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements. Given those risks and
uncertainties, prospective investors are cautioned not to place
undue reliance on forward-looking statements. Forward-looking
statements speak only as of the date of such statements and, except
as required by the UK Financial Conduct Authority, the London Stock
Exchange or applicable law, the Company undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
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END
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