AB Dynamics revenues and profits grow as ADAS demand increases
Automotive industry supplier AB Dynamics saw both revenues and profits increase in its last trading year as demand for its more complex Advanced Driver Assistance System equipment rose.
AB Dynamics' revenues increased 51% to £37.05m for the year ended 31 August, helping push pre-tax profits ahead 45% to £8.61m.
Earnings per share soared 74% to 36.29p and AB Dynamics proposed a final dividend of 2.20p per share, a 10% year-on-year increase, giving the group a total annual dividend of 3.665p per share.
Chairman Tony Best of AB Dynamics, said: "I am pleased to be able to report that the group has delivered another record year of revenue and adjusted profit. Our customers remain very active in introducing ever more complex ADAS equipment into their vehicles and in the development of semi- and fully-autonomous vehicles."
Looking forward, AB Dynamics said that with demand for its track testing products "at an all-time high" leading to a strong forward order book into the new year, the group would also require "ever greater investment" in its systems and our operational capability to ensure it would be fully capable of supporting current and future growth.
AB Dynamics expects to make further investment in new product development, marketing, service and support, growing its overseas footprint and its staffing.
"Inevitably this investment will provide some constraint to our operating margin, but the board remains confident that, under the leadership of our new CEO, we are well positioned to deliver a year of solid progress," said Best.
As of 1300 GMT, AB Dynamics shares had picked up 2.88% to 1,427.50p.