leadf
logo-loader
viewAB Dynamics PLC

AB Dynamics raising cash to speed up growth

It’s looking to raise £6.4mln through a placing and subscription

Mercedes car on a test track
AB Dynamics even has its own test track

Vehicle testing specialist AB Dynamics plc (LON:ABDP) is raising £6.4mln as it looks to speed ahead with its expansion plans.

It expects to drum up £5.4mln from a placing of shares at 475p, a slight discount to yesterday’s close, with the other £1mln coming from a subscription amongst existing shareholders.

ABD, which designs and builds advanced testing systems for the likes of Toyota to test their new cars on,  has only just built a new 33,000 square feet manufacturing plant that will formally open in the New Year.

It wants to accelerate this growth, and will use the money to build another facility just across the road from the new one which, with this cash injection, it hopes to have up-and-running by mid-2018 – 18 months earlier than originally planned.

The rest of the funds will be used to expand its presence outside of the UK – notably in the US, Germany, Japan and Korea – and fast-track existing development programmes and projects.

“The fundraising will enable us to accelerate our already identified new product and development programmes to capture [the] potential [of the industry],” said chief executive Tim Rogers.

“The additional investment in new premises for our simulator business reflects our growing confidence in the potential for AB Dynamics in this rapidly growing market.”

Shares were down 4%, or 20.5p, to 492p.

Quick facts: AB Dynamics PLC

Price: 2172.55 GBX

AIM:ABDP
Market: AIM
Market Cap: £490.49 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Emperor Energy welcomes strong support for SPP as it progresses with Judith...

Emperor Energy Ltd's (ASX:EMP) Carl Dumbrell joins Proactive's Andrew Scott soon after receiving firm commitments to raise $656,000 through its share purchase plan (SPP) – attracting more than double the minimum $300,000 target. Net proceeds will go towards strengthening the company’s balance...

5 hours, 53 minutes ago

2 min read