AB Dynamics performs 'strongly' during H2, completes Bolab acquisition

AB Dynamics

Advance testing and simulation products manufacturer AB Dynamics said on Thursday that it has "performed strongly" during the second half of the year, delivering "significant" organic growth.

26 September 2024 11:00:58

Source: Sharecast

AB Dynamics expects full-year revenue to exceed £110.0m and with robust margin performance through the second half, full-year adjusted operating profits were projected to come in ahead of current market expectations of £17.3m to £18.8m.

The AIM-listed group stated its testing products unit has continued to experience "strong demand", with good growth in driving robots and ADAS platforms, while revenue in its simulation business also showed a modest increase, with a number of simulator system deliveries in the second half of the year.

AB Dynamics also announced it has completed its acquisition of Stuttgart-based automotive power electronics testing products business Bolab for an initial cash consideration of €5.0m, supporting the expansion of its capabilities in its testing segment and further aligning it with growth drivers in the sector. The maximum consideration payable for Bolab was €11.0m.

AB expects the acquisition to be earnings enhancing in FY25, with annualised revenue forecast to be approximately €4.0m and adjusted operating profit forecast to be approximately €800,000.

As of 1100 BST, AB Dynamics shares were up 3.25% at 1,987.50p.

Reporting by Iain Gilbert at Sharecast.com

Isin: GB00B9GQVG73
Exchange: London Stock Exchange
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