If further proof were needed of the rapacious demand for AB Dynamics’ (ABDP) safety and performance technology, it is this nugget from management: already, three-quarters of forecast sales for the current financial year are accounted for in a record order book.
The testing systems supplier’s trading in the 12 months to August 2017 was equally prolific. AB secured its “largest ever order” for driving robots – and a pointer to future growth channels – with the China Automotive Technology and Research Center. The Wiltshire-based firm's ability to tap into the £100bn automotive R&D market has been further enhanced by the move to a state-of-the-art facility in Bradford on Avon.
Full-year figures detailed a 26.2 per cent rise in adjusted operating profit (excluding share option costs) to £5.9m. Track testing revenues are up by a third, while management tells us demand for driving robots and guided soft targets are at an all-time high. Despite a capital expenditure outlay of £8.0m, up from £1.6m a year ago, AB ended the period with no debt.
Cantor Fitzgerald expects adjusted pre-tax profits of £6.9m and EPS of 29.3p for the August 2018 year-end, up from £5.7m and 25.4p in 2017.
| AB DYNAMICS (ABDP) | ||||
| ORD PRICE: | 789p | MARKET VALUE: | £151m | |
| TOUCH: | 788-790p | 12-MONTH HIGH: | 789p | LOW: 463p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 38 | |
| NET ASSET VALUE: | 147p | NET CASH: | £9.6m | |
| Year to | Turnover | Pre-tax | Earnings | Dividend |
| 31 Aug | (£m | profit (£m) | per share (p) | per share (p) |
| 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 | 3.03 |
| 2017 | 24.6 | 4.5 | 20.8 | 3.33 |
| % change | +20 | +0.5 | -6 | +10 |
| Ex-div: | 23 Nov | |||
| Payment: | TBC | |||
| †AB Dynamics commenced trading on Aim in May 2013 | ||||
