Auto test equipment firm AB Dynamics steers towards further growth

February 19, 2014

Shares in AB Dynamics, the Bradford on Avon-based automotive equipment manufacturer, rose by nearly 8% today after it released an upbeat trading update.

The firm, which employs 50 people designing and making advanced testing systems and measurement products for the global automotive industry, said trading had been in line with market expectations while a new track testing systems had enjoyed an “excellent performance”.

It had also achieved significant revenue growth from existing clients as well as a number of new client wins. Overseas growth had continued and it now had a strong order book.

ABD’s products are used to test vehicle suspension, brakes and steering by 17 of the world’s top 20 automotive manufacturers, including Honda, Toyota, Ford and Volkswagen.

Today’s trading update comes in advance of its interim results for the six months to February 28, which are due to be released on April 28. It also follows last week’s announcement that its plans for a new, larger factory on the outskirts of Bradford had been approved by Wiltshire Council.

The firm said the new plant, pictured in an artist's visualisation, scheduled to open in early 2016, would enable it to satisfy its growing order book.

Managing director Tim Rogers said ABD had maintained a strong balance sheet with no net debt and good cash generation which positioned it well to develop the new facility as well as take advantage of other corporate opportunities that may present themselves.

“The group has performed well in the first half of the year with growth in product offering, customers and revenues. A strong order book gives the board confidence in a successful outcome for the year as a whole,” he said.

The firm was founded in 1982 and listed on the London Stock Exchange’s AIM last May.

By the market close ABD's shares were trading at 169p, up 12.5p or 7.99% on the day.


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