AB Dynamics Provides Trading Update Ahead of Capital Markets Day
Why we think this is good
The trading update from AB Dynamics indicates the company is performing in line with expectations, with a solid order book and robust financial position. While the company notes potential macroeconomic and foreign exchange headwinds, the overall tone is positive, with the Board remaining confident in the Group's ability to deliver adjusted operating profit in line with market expectations for the full year. The company's strong cash generation and balance sheet provide a solid foundation for future growth.
Key Points
- Trading in line with expectations for first 9 months of FY 2025
- Solid order book providing visibility into final quarter
- Robust balance sheet with net cash of £31.2m at 31 May 2025
- Potential slowdown in pipeline conversion due to macroeconomic and FX headwinds
- Board confident of delivering FY 2025 adjusted operating profit in line with market expectations
Summary
AB Dynamics plc has provided a trading update ahead of its Capital Markets Day, reporting that performance over the first nine months of FY 2025 has remained in line with expectations. The Group has a solid order book, providing visibility into the final quarter of the year. The balance sheet remains robust with net cash of £31.2m at 31 May 2025, up from £28.6m at 31 August 2024. While the company notes potential slowdown in pipeline conversion due to wider macroeconomic disruption and foreign exchange headwinds, the Board remains confident the Group will deliver adjusted operating profit for FY 2025 in line with market expectations.