In an age of emissions reduction and self-driving cars, never has the global automotive industry been faced with a greater imperative to innovate. Little wonder then that AB Dynamics (ABDP) goes from strength to strength. The services of the Wiltshire-based automotive testing systems designer remain much in demand, delivering a 22.7 per cent rise in adjusted profits to £4.7m and continued strong cash flows for the reported period. And there's good top line visibility with an order backlog stretching into the third quarter of the 2017 financial year.
Standing still isn't an option, so a decision was taken to bump up the research and development spend in order to further entrench the quality and reputation of its specialist automotive offering. Construction work has started on a new 3,070 sq m facility, with completion targeted for the third quarter 2017, and management has leased two additional properties, one of which will house the company's vehicle dynamic simulator demonstration unit.
Analysts at Cantor Fitzgerald see adjusted pre-tax profits of £5.1m for the year ending August 2017, leading to EPS of 22.9p, rising to £6.8m and 30p in FY2018 (from £4.7m and 23.8p in FY2016).
| AB DYNAMICS (ABDP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 473p | MARKET VALUE: | £84m | |
| TOUCH: | 465p-480p | 12-MONTH HIGH: | 513p | LOW: 271p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 98p | NET CASH: | £10.4m | |
| Year to 31 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 8.9 | 1.9 | na | nil |
| 2013 † | 12.2 | 1.9 | 9.5 | nil |
| 2014 | 13.8 | 2.7 | 13.1 | 2.50 |
| 2015 | 16.5 | 3.8 | 19.2 | 2.75 |
| 2016 | 20.5 | 4.5 | 22.3 | 3.025 |
| % change | +24 | +17 | +16 | +10 |
Ex-div: 24 Nov Payment: 16 Dec †AB Dynamics commenced trading on Aim in May 2013 | ||||
