LONDON (ShareCast) - (Sharecast News) - AB Dynamics reported a 15% rise in adjusted operating profit for the year ended 31 August, slightly ahead of expectations, as operational improvements and disciplined execution offset a softer second half.
The AIM-traded automotive testing and simulation specialist said adjusted operating profit rose to £23.3m on revenue of £114.7m, up 3% year-on-year.

Adjusted EBITDA increased 15% to £27.8m, while statutory operating profit climbed 22% to £15.5m.

Gross margin improved by 240 basis points to 62%, lifting operating margin to 20.3%.

Adjusted diluted earnings per share rose 15% to 80.3p, and the total dividend for the year was increased 20% to 9.16p per share.

The company said double-digit growth in the first half was tempered by slower simulator orders in the second, reflecting macroeconomic disruption, though recurring revenue was maintained at 45% of the total.

Return on capital employed improved to 20.2%, supported by stronger profitability and capital discipline, while net cash rose to £41.4m from £28.6m.

"The group has made a strong start to delivering the medium-term growth plan which was set out in November 2024," said chief executive officer designate Sarah Matthews-DeMers.

"Trading in the first half of 2025 was strong, with double-digit revenue and profit growth.

"Despite a more challenging backdrop during the second half caused by macroeconomic and geopolitical disruption, the Group delivered underlying earnings slightly ahead of expectations, with full year profit growth of 15% and improved operating margin to 20.3%."

New product development continued at pace, with the launch of the Delta S3 Spin Simulator for the road car market and the LiDAR-based ClearTrack object detection system, developed using ABD Solutions technology.

The integration of Bolab Systems, acquired earlier in the year, was said to be progressing as planned.

Matthews-DeMers said AB Dynamics remained "geographically diversified, OEM agnostic and powertrain agnostic," with long-term demand supported by "structural and regulatory growth drivers in active safety, autonomous systems and the automation of vehicle applications".

The company ended the year with an order book of £32m, up from £30m, providing strong visibility into 2026.

The board said it expected adjusted operating profit in the new financial year to be in line with current expectations, with performance weighted towards the second half.

At 1523 GMT, shares in AB Dynamics were down 0.38% at 1,295p.

Reporting by Josh White for Sharecast.com.

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