Specialist automotive group on road to ‘compelling’ growth after strong half year

New orders from motor manufacturers in North America and the Asia-Pacific region have helped accelerate growth at specialist automotive testing firm AB Dynamics.

In a half-year trading update, the Bradford on Avon-headquartered group said it expects to deliver revenue for the period of around £58m, representing growth of 11% over the prior year.

The firm designs, manufactures and supplies advanced testing, simulation and measurement products to the global transport market.

It said trading for the first six months of its financial year continued to show positive momentum, with overall performance in line with its board’s expectation.

Looking ahead, it added that while it was mindful of the “dynamic economic and geopolitical backdrop”, timing of pipeline conversion and customer delivery schedules, directors remained confident that it would make further financial and strategic progress this year.

“Future growth prospects for the group remain compelling and supported by long-term structural and regulatory growth drivers in active safety, autonomous systems and the automation of vehicle applications,” the statement added.

“As a market and technology leader in its core sectors, AB Dynamics remains extremely well positioned to capitalise on these opportunities.”

Last November its board set out its ambitions for the medium term, in particular delivering 10% annual organic revenue growth and expanding adjusted operating profit margin towards 20%.

The board also increased its expectations for adjusted operating profit for the current full year. It said with a solid first-half performance, coupled with the visibility afforded by its current order book and pipeline, it remained confident in achieving its expectations for the full year.