AB Dynamics performs 'well' in H2 despite supply chain disruptions, FX headwinds
Testing and simulation systems provider AB Dynamics said on Tuesday that it had performed "well" during the second half of the year, managing supply chain disruption and currency headwinds effectively in order to meet a strengthening in demand during the period.
AB Dynamics stated second-half revenue was approximately 20% higher on an organic basis than the Covid-impacted second half of 2020 and approximately 40% higher on a reported basis, including contributions from March's acquisition of Vadotech Group.
As a result, AB now expects to post full-year revenues of roughly £65.0m and an annual adjusted operating profit in line with current consensus expectations.
"Notwithstanding a challenging backdrop generally, the group has seen a continued recovery in demand through the second half across all key product and service lines, which demonstrates the resilience of ABD's markets. Despite the significant uplift in sales during the second half, orders exceeded revenues in the period and the business enters FY22 with good momentum," said AB.
Elsewhere, the AIM-listed group announced the launch of ABD Solutions, a new business unit focused on providing retrofit solutions that enable the automation of conventional off-road vehicle fleets.
The formation of ABD Solutions was based on "extensive market analysis and research" which showed a total potential market of approximately £4.8bn, with an estimated compound annual growth rate of approximately 25%.
As of 0900 BST, AB Dynamics shares were up 3.10% at 2,000.10p.
Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.