AB Dynamics PLC results highlight resilient performance
“After a very strong first half of the financial year, the group took rapid and effective actions to mitigate the risks of the pandemic,” said Dr James Routh.
(), in its full year results, described a year with a strong first half that was hit by the COVID-19 impacts in the second.
“The group has delivered a robust and resilient performance in 2020 against a backdrop of challenging market conditions due to COVID-19,” said Dr James Routh, chief executive.
“After a very strong first half of the financial year, the group took rapid and effective actions to mitigate the risks of the pandemic. Whilst the backdrop has been uncertain, the group’s strong financial position has enabled us to remain focussed on maintaining our strategic momentum.”
The automotive testing system maker reported that revenue increased by 6% to £61.5mln for the twelve months ended August 31, from £58mln, meanwhile, profit fell with adjusted pre-tax profit down 16% to £10.9mln and statutory net profit down 46% to £4.6mln.
Cashflow from operations reduced by 31% to £6.9mln.
It confirmed a cash balance of £31.2mln and noted the reinstatement of dividends, with a 4.4p per share payment proposed.
The company added that its subsequent first quarter performance is in line with the exit rate seen at the end of August.
“Demand in the first quarter of the current year has been consistent with the Q4 FY20 exit rate,” Routh added.
“The disruption associated with further waves of infection means that visibility is limited and there remains short-term uncertainty as to the shape and rate of this recovery. Looking further ahead, we remain confident that demand will recover to pre-crisis growth patterns over the medium term.”
Routh also highlighted that the company continues to look at strategic priorities, including product development and acquisition opportunities.
“We are very encouraged by the initial progress already evident from our key strategic investment initiatives,” he added. “The market drivers are compelling, the medium-term outlook for AB Dynamics remains positive and the Board is confident the Group can continue to deliver on its strategic priorities”
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