Earnings release
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RNS Number : 0503OAB Dynamics PLC28 July 2026 28 July 2026 AB Dynamics plc Trading update AB Dynamics plc ("AB Dynamics", the "Company" or the "Group"), the designer, manufacturer and supplierof advanced testing, simulation and measurement products to the global transport market, provides thefollowing trading update for the year ending 31 August 2026 ("FY26"). Conclusion of strategic review of VadoTech As part of our half year review, we announced that customer volumes at our Chinese Testing Servicesbusiness, VadoTech (on-road testing in China on behalf of a European OEM), had not developed under thenew contract as the customer had indicated and therefore the business unit was placed under strategicreview. Since the half year, customer volumes have remained weak and as a result we have reached an agreementwith the customer to terminate the current contract and exit the business. We expect this to concludeduring the first half of FY27. As a result, the VadoTech business will be accounted for as a discontinued operation in FY26, with FY25comparatives restated in accordance with accounting standards. An assessment of the likely impact on FY26and FY25 Group reported numbers is provided below. We expect FY26 reported Group revenue to beapproximately £4m lower due to the classification of VadoTech as discontinued. FY26 Trading update As set out in the interim results, published on 14 April 2026, the Group delivered a resilient performance inthe first half, against the backdrop of increasing geopolitical uncertainty. However, the overall tradingbackdrop has become increasingly more challenging during the second half, as a result of reducedcustomer confidence and logistics headwinds arising from the Middle East conflict, as well as increaseddisruption to development programmes within the automotive market, particularly for European OEMcustomers, as evidenced by several recent potential restructuring announcements. As a result, while the Group's sales pipeline remains healthy, with robust levels of customer enquiries, weare seeing customers lengthen their procurement decision timelines which is adversely impacting shortterm order conversion and revenue generation within Testing Products and Simulation. Reflecting this lower level of order intake in the last quarter, the Board now expects Group revenue for continuing operations1 forFY26 to be in the range of £90-95m. In light of the volatile market backdrop, the Group has been actively managing operating costs anddiscretionary expenditure closely through the year. Consequently, the Board believes it will be able tomitigate a significant degree of the adverse operational gearing impact of the lower than expected revenue,with the Group's adjusted operating margin for FY26 expected to be at 20%, consistent with the Group'smedium term plan. The deferral in order intake timing is also likely to result in customer deliveries in FY26 being heavilyweighted towards the end of the financial year. This will result in year end working capital being higher thanexpected, however the Group's balance sheet remains robust with net cash at 30 June 2026 of £41.7m. Whilst increasing geopolitical disruption is impacting near term performance, the long term structuraldrivers of growth in the Group's key markets remain compelling, underpinned by significant regulatory andtechnological developments. The strength of the Group's balance sheet provides the Board with confidenceto continue to invest in innovation and sales and marketing resource, to ensure the Group remains in thebest possible position to deliver on this long term organic growth opportunity, as well as optionality toenhance returns through proactive capital allocation. 1Continuing operations exclude the results of the VadoTech business which will be accounted for as a discontinuedoperation in FY26. Enquiries: AB Dynamics plc 01225 860 200 Sarah Matthews-DeMers, Chief Executive Officer Andrew Lewis, Interim Chief Financial Officer Peel Hunt LLP (Nominated Adviser and Joint Broker) 0207 418 8900 Mike Bell Ed Allsopp 0207 710 7600
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Stifel Nicolaus Europe Limited (Joint Broker) Matthew Blawat Orme Clarke Certain information contained in this announcement would have constituted inside information (as defined byArticle 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosedin accordance with the Company's obligations under Article 17 of those Regulations. The person responsible for arranging the release of this information is Miles Ingrey-Counter, CompanySecretary. Appendix 1 - Discontinued operations in FY26 - re-presentation of FY25 comparatives As reported £m Discontinued operations £m As re-presented £m Revenue 114.7 (10.5) 104.2 Adjusted operating profit 23.3 (1.0) 22.3 Adjusted operating cash 29.4 (1.6) 27.8 About AB Dynamics plc AB Dynamics is a leading designer, manufacturer and supplier of advanced testing, simulation andmeasurement products and services to the global transport market. AB Dynamics is an international groupof companies headquartered in Bradford on Avon. AB Dynamics currently supplies all the major automotivemanufacturers, Tier 1 suppliers and service providers, who routinely use the Group's products to test andverify vehicle safety systems and dynamics. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END