viewAB Dynamics PLC

AB Dynamics says manufacturing facilities still running but some larger orders deferred

The testing and measurement equipment maker cancelled payment of its interim dividend

AB Dynamics PLC -
AB's automotive track testing

AB Dynamics PLC (LON:ABDP) has nixed its interim dividend as it said there has been “no material reduction” in order intake because of coronavirus but that some high-value orders have been deferred.

The testing and measurement equipment maker reported underlying profit before tax of £8.7mln for the six-month period to 29 February, up 36% on the same period a year ago. 

Manufacturing facilities continued to operate to enable it to deliver existing and new orders, the group said, with inventory “sufficient” to address the short to medium term requirements.

As well as withholding the interim dividend payment, management has put in place mitigating actions to protect against the effects of the Covid-19 pandemic, controlling discretionary spending and conserving cash but still continuing to invest in new product development and business infrastructure.

Cash at the end of the period was £35.1mln.

Broker Liberum cut its full year PBT forecast 20%, predicting the capex reductions will lead to net cash rising to £37.9mln, “leaving the business well positioned to weather the storm and to continue to invest in product development”.

Analysts cut their target price to 2,100p from 2,700p, maintaining a ‘buy’ rating.

Quick facts: AB Dynamics PLC

Price: 2230 GBX

Market: AIM
Market Cap: £503.63 m

Add related topics to MyProactive

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


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...


American Rare Earths says new technical report confirms potential of La Paz...

American Rare Earths Ltd’s (ASX:ARR) managing director Keith Middleton caught up with Proactive's Andrew Scott after its wholly-owned subsidiary Western Rare Earths (WRE) released a new technical report on the La Paz rare earths and scandium project in Arizona. He says it confirms a number of...

1 hour, 8 minutes ago

2 min read