AB DYNAMICS PLC - Half year results for the period to 28 February 2026

AB Dynamics’ FY26 half-year investor update highlights resilient company performance amid short-term market disruption, with financial results reflecting a second-half weighted recovery. Revenue declined 16% due to delayed order intake and softer demand in China, while operating profit fell to £9.1m; however, margins remained robust at 18.6%, supported by operational efficiencies, cost control, and a favourable revenue mix. Encouragingly, order intake rebounded to £64m, driving a £47m order book and providing approximately 70% revenue visibility for the full year. Strong cash generation (102% cash conversion) and a net cash position of £39.3m underpin continued investment in innovation, R&D, and a disciplined M&A pipeline. The group’s growth strategy focuses on organic revenue expansion (~10% annually), margin improvement to >20%, and value-accretive acquisitions, targeting long-term EBITDA and revenue growth. Segment performance reflects robust demand in testing products and US-based services, offset by challenges in the lower-margin VardaTech business, which has been impaired following weaker Chinese market conditions. AB Dynamics maintains a strong competitive position, benefiting from structural growth drivers in automotive safety, ADAS, and simulation technologies. With a diversified customer base, strong pricing power, and a healthy order book, the company remains confident in delivering full-year expectations and progressing its medium-term strategy to double revenue and significantly enhance profitability.