AB Dynamics plc (“AB Dynamics”, the “Company” or the “Group”), the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive market, is pleased to announce its final results for the year ended 31 August 2019.
Audited 2019 £m | Audited 2018 £m | ||
Revenue | 58.0 | 37.1 | +56% |
Adjusted operating profit1 | 13.5 | 8.5 | +58% |
Adjusted operating margin | 23.3% | 23.1% | +20 bps |
Adjusted profit before tax1 | 13.7 | 8.6 | +59% |
Statutory operating profit | 10.8 | 7.9 | +37% |
Statutory profit before tax | 11.0 | 7.9 | +38% |
Statutory profit after tax | 9.6 | 7.0 | +38% |
Adjusted cash flow from operations1 | 10.5 | 9.9 | +6% |
Net cash | 36.2 | 15.9 | +127% |
Pence | Pence | ||
Adjusted diluted earnings per share1 | 55.4 | 36.9 | +50% |
Basic earnings per share | 42.9 | 36.3 | +18% |
Fully diluted earnings per share | 42.1 | 35.0 | +20% |
Total dividend per share | 4.40 | 3.67 | +20% |
(1) Before acquisition related charges, agent termination fees and share based payment charges. A reconciliation to statutory measures is given in the Financial Review.
Financial Highlights
· Revenue and adjusted operating profit increased 56% and 58%, respectively through increased demand for the Group’s products and services, supported by new product development and establishment of international routes to market.
· Underlying revenues increased by 55% with a small 1% benefit from the acquisition of rFpro at the end of June 2019.
· Adjusted operating margins increased by 20 bps to 23.3% as a result of operating leverage across the business.
· Adjusted profit before tax increased by 59% to £13.7m and the corresponding adjusted diluted EPS increased by 50% as the adjusted effective corporation tax rate increased to 16.8% (2018: 14.1%).
· Adjusted cash flow from operations increased by 6% to £10.5m with cash conversion of 78% after investment in working capital.
· Total dividend increased by 20% to 4.40p per share as a result of a strong performance and confidence in the Group’s outlook.
Operational Highlights
· Introduction of updated strategic priorities setting out the Group’s plans for long term, sustainable growth
· Establishment of new international routes to market in the USA and Japan.
· In Track Testing, the launch of additional new products including Ground Traffic Control software for proving ground automation, TrackFi Powermesh advanced radio system and heavy-duty versions of both the Guided Soft Target and Launchpad ADAS targets.
· In Laboratory Testing and Simulation, the Group has further developed the aVDS simulation market with key strategic sales and development of increased product functionality whilst launching the new ANVH 250 product line.
· Construction commenced on a new 2,850m2 facility for new product development and simulation.
· Following a successful share placing in May 2019, raising net proceeds of £48.2m, acquisition expenditure totalled £35.4m with £18.1m on rFpro and £17.3m on Dynamic Research Inc.
Commenting on the full year results, Dr James Routh, Chief Executive Officer said:
“The Group’s performance in 2019 was very strong, delivered through continued development of new products and services to a buoyant market for Advanced Driver Assistance Systems and autonomous vehicle development. AB Dynamics delivered another year of strong growth in adjusted earnings per share whilst simultaneously initiating the delivery of the Group’s updated strategic priorities, including the acquisitions delivered during the second half. Despite global macro-economic uncertainty and challenges facing the automotive sector, the Board remains confident that the Group will continue to deliver further growth in the coming year.”
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