CORRECT: AB Dynamics in swing to half-year loss amid tariff disruption
(Corrects to clarify that the VadoTech business is not linked to the subsequently mentioned contract with a European OEM.)
AB Dynamics PLC on Tuesday reported a ‘slightly softer’ first half of the financial year, swinging to a loss and posting a revenue decrease.
The supplier of advanced testing, simulation and measurement products reported a pretax loss for the six months up to February 28 of £12.4 million, swinging from a £6.3 million profit a year prior.
Revenue declined 16% on-year to £48.8 million from £58.0 million, with decreases coming across all three of the company’s sectors.
The Wiltshire-based firm said that this reflects ‘previously communicated delays in the timing of order intake and customer delivery requirements’.
It also pointed to its VadoTech business in China, which the group said ‘has seen significantly weaker than anticipated volumes’.
However, the group raised its interim dividend to 3.08 pence per share, up 10% from 2.80 pence the previous year, ‘reflecting the board’s confidence in the group’s financial positions and prospects’.
AB Dynamics also noted its simulation business unit’s €9.7 million contract with a ‘major European’ original equipment manufacturer, announced in December last year.
Looking ahead, the company noted its period-end order book stands at £47 million, up from £42 million 12 months earlier. It said this provides ‘good visibility’ for the second half of the financial year.
Shares in AB Dynamics fell 2.6% to 1,110.00 pence in London on Tuesday.
The company expects to deliver adjusted operating profit for financial 2026 to be in line with company-complied analyst expectations of £24.4 million, up from £23.3 million achieved in the prior financial year.
Adjusted operating profit in the first half of the financial year declined 16% to £9.1 million from £10.8 million.
Chief Executive Officer Sarah Matthews-DeMers said: ‘As expected, revenue in H1 reflected the dip in order intake in Q3 of last year following disruption from tariffs, and it is pleasing to see order intake recovering to more normal levels. Order coverage and our confidence in operational execution leaves us well positioned to deliver in the second half of the year.’
‘We note the emerging situation in the Middle East and whilst the group has no operating footprint in the region, we continue to monitor any potential impacts from broader risks to trade, cost inflation and supply chain disruption. The group has strong pricing power and a proven, agile approach to managing the business through changing conditions and so we remain confident in delivering on our key strategic and operational priorities.’
‘Whilst we are mindful of the current geopolitical uncertainty, absent an extended disruption, the board expects to deliver adjusted operating profit for FY 2026 in line with current expectations.’
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