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AB Dynamics shifts into higher gear as profits climb by a third

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Car part testing company AB Dynamics (LON:ABDP) posted a 30% increase in profit before tax, helped by operational efficiencies and the successful set-up of its Japan business.

Pre-tax profits climbed to £1.5mln in six months to 28 February, while half-year revenue increased to £7.5mln, up 13% from a year ago.

The Bradford-on-Avon-based company designs and manufactures testing and measurement products for vehicle suspension, brakes and steering.

It said the results were partially due to "manufacturing efficiencies derived from our new robot assembly facility".

During the period, the company also established of AB Dynamics MF Japan Ltd to supply customers including Honda and Toyota in the region.

Tim Rogers, managing director, commented: "For the past six months the company has delivered significant revenue and profit growth, combined with operational efficiencies leading to improved gross margins and cash generation. 

“The group continues to go from strength to strength: the progress of the new factory remains on track with completion expected in the latter part of 2016; and the Company continues to successfully attract key personnel having passed the 60 employees landmark. 

“With a strong order book in place and continuing product development, the board is pleased to announce an increased interim dividend of 1.1p per share."

Shares hit an all-time high in early deals, up 4.35% to trade at 202p. 


Quick facts: AB Dynamics PLC

Price: 2172.55 GBX

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