TIDMABDP
RNS Number : 1829D
AB Dynamics PLC
25 April 2017
25 April 2017
AB Dynamics plc
("ABD" or the "Company" or the "Group")
Interim Results for the 6 months ended 28 February 2017
AB Dynamics plc (AIM:ABDP), a designer, manufacturer and
supplier of advanced testing systems and measurement products to
the global automotive industry, is pleased to announce its Interim
Results for the six month period to 28 February 2017.
Financial Highlights
-- Revenues increased 9% to GBP11.0m (H1 2016: GBP10.1m)
-- Profit before tax, excluding share option costs, increased 9% to GBP2.5m (H1 2016: GBP2.3m)
-- Increased capital expenditure of GBP2.6m (H1 2016: GBP0.3m)
in line with management expectations
-- Net cash at 28 February 2017 of GBP14.8m (H1 2016: GBP10.2m)
-- Basic EPS adjusted for share option costs of GBP0.8m increased to 11.04p (H1 2016: 10.53p)
-- Interim dividend increased 10% to 1.331p per ordinary share (H1 2016: 1.21p)
Operational Highlights
-- Successful equity fundraising of GBP6 million to fund new
product development and investment in supporting activities to
drive growth
-- Very strong demand for Guided Soft Targets following
regulatory approval for their use in global Advanced Driver
Assistance Systems ('ADAS') testing
-- Demand for Driving Robots at an all time high
-- Advanced Vehicle Dynamic Simulator project nearing commercialisation phase
-- New factory build on target for late summer hand over
-- Tim Rogers appointed as Chief Executive Officer
Tim Rogers, CEO of AB Dynamics, commented:
"We are very pleased to report on a solid first half of the
financial year. We have a good forward order book for the remainder
of 2017 and well in to next year which gives us confidence in
meeting market expectations.
"The Group continues to invest in people, products and
facilities, reaching a landmark of 100 employees. Separate
commercial and business development teams have been established to
create a group structure capable of supporting our large and
growing customer base, whilst delivering new products and services
to our customers.
"The Board is pleased to announce the increased dividend to
shareholders of 1.331p per ordinary share which underlines the
strength of the business and future prospects."
For further information please contact:
AB Dynamics plc
Tim Rogers, Chief Executive
Officer
Tony Best, Non-executive 01225 860
Chairman 200
Cairn Financial Advisers
LLP (Nomad)
Tony Rawlinson 0207 213
Liam Murray 0880
Cantor Fitzgerald Europe
(Broker)
David Foreman 0207 894
Phil Davies 7000
IFC Advisory (PR)
Tim Metcalfe
Graham Herring 0203 053
Heather Armstrong 8671
Chief Executive's and Chairman's Statement
We are pleased to report on a successful first half of the
financial year for AB Dynamics. A strong commercial performance
across our business platforms have resulted in profit before tax
(excluding share option costs of GBP0.8m) for the half year to 28
February 2017, of GBP2.5 million (H1 2016: GBP2.3 million) an
increase of 9% and revenues of GBP11.0 million (H1 2016: GBP10.1
million) an increase of 9% over the prior year's first half. Cash
at the period end was GBP14.8 million (H1 2016: GBP10.2
million).
The Group sees strong demand for its products and services,
notably from sales of its Guided Soft Targets (GST), which have
uniquely benefited from obtaining approvals from both of the key
vehicle safety organisations in Europe (EuroNCap) and the US
(NHTSA) for vehicle ADAS testing. This gives our customers access
to a genuinely global testing platform which seamlessly integrates
with the Company's other Track Testing products for development of
ADAS and next generation autonomous vehicles.
Favourable currency conditions and further improvements to our
manufacturing infrastructure and supply side have also helped
maintain our operating margin, adjusted for share option charges,
at 22%.
The Company continues to invest and expand its design,
manufacturing and customer support capacity. Separate commercial
and business development teams have been established to create a
group structure capable of supporting our large and growing
customer base, whilst delivering new products and services to our
customers.
The new facility is targeted to come on line in late summer
freeing up valuable manufacturing space and creating necessary
product development areas required to create the new laboratory
test equipment that will drive the Company's growth.
As mentioned previously the building will improve significantly
the working environment and bring our UK operations together again
under one roof, creating the necessary headroom for future growth.
The investment in the new factory will be funded entirely from the
Group's cash resources over the next six months as the build
programme gathers momentum.
Towards the end of 2016 we successfully completed an equity
fundraising of GBP6 million enabling us to embark upon a number of
new product development programmes including the Advanced Vehicle
Dynamic Simulator, a Driver in Loop Simulator developed in
collaboration with Williams WAE which is nearing the
commercialisation phase. Other laboratory test machinery is in
development, together with a raft of new Track Testing Robot
upgrades and enhancements already introduced this year to provide
support to the businesses in which we are the largest supplier.
The Company has seen an increase in demand for its track testing
products and together with its forward order book has secured a
sales pipeline for the remainder of this financial year and well
into the next. Looking ahead, the Company continues to invest and
develop new products and technologies which will secure the
Company's future.
We are pleased to announce that the Directors are declaring an
interim dividend of 1.331p per ordinary share. The ex-dividend date
will be 4 May with a record date of 5 May and payment date 19 May
2017.
Anthony Best Tim Rogers
Non-executive Chairman Chief Executive Officer
24 April 2017 24 April 2017
AB Dynamics plc
Unaudited consolidated statement of comprehensive income
for the six months ended 28 February 2017
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
28 February 29 February 31 August
2017 2016 2016
GBP GBP GBP
Notes
Revenue 11,001,085 10,108,702 20,472,244
Cost of sales (8,302,273) (7,070,977) (14,296,445)
Gross profit 2,698,812 3,037,725 6,175,799
Administrative expenses (1,030,824) (786,865) (1,635,977)
Fair value (losses)
/ gains in respect
of foreign currency
forward contracts (59,241) (33,428) (161,145)
Operating profit 1,608,747 2,217,432 4,378,677
Net finance income
and (costs) 43,010 45,084 72,643
Profit before taxation 1,651,757 2,262,516 4,451,320
Income tax expense (430,923) (437,837) (576,935)
Profit after taxation
and total comprehensive
income for the period 1,220,834 1,824,679 3,874,385
Earnings per share-Basic 2 6.65p 10.53p 22.25p
Earnings per share-Diluted 2 6.61p 10.27p 22.25p
AB Dynamics plc
Unaudited consolidated statement of financial position
for the six months ended 28 February 2017
Unaudited Unaudited Audited
28 February 29 February 31 August
2017 2016 2016
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 5,181,045 1,959,887 2,695,097
Deferred tax assets - 138,235 -
5,181,045 2,098,122 2,695,097
CURRENT ASSETS
Inventories 3,780,447 2,949,435 3,191,642
Trade receivables 3,121,141 2,836,729 2,601,857
Other receivables, deposits
and prepayments 1,285,884 638,905 1,006,657
Amount owing by contract
customers 1,205,473 550,805 1,285,922
Derivative financial instruments - 315 -
Taxation - - 148,992
Cash and cash equivalents 14,776,087 10,145,882 10,404,523
24,169,032 17,122,071 18,639,593
TOTAL ASSETS 29,350,077 19,220,193 21,334,690
EQUITY AND LIABILITIES
Called up share capital 191,119 173,344 177,646
Share premium account 8,579,264 2,540,711 2,590,267
Reconstruction reserve (11,284,500) (11,284,500) (11,284,500)
Merger relief reserve 11,390,000 11,390,000 11,390,000
Retained earnings 16,347,092 12,483,120 14,643,035
TOTAL EQUITY ATTRIBUTABLE
TO OWNERS OF
THE COMPANY AND TOTAL EQUITY 25,222,975 15,302,675 17,516,448
NON-CURRENT LIABILITIES
Deferred tax liabilities 53,648 - 118,946
CURRENT LIABILITIES
Trade and other payables 3,856,571 3,571,362 3,608,862
Derivative financial instrument 58,165 - 90,434
Provision for taxation 158,718 346,156 -
4,073,454 3,917,518 3,699,296
TOTAL LIABILITIES 4,127,102 3,917,518 3,818,242
TOTAL EQUITY AND LIABILITIES 29,350,077 19,220,193 21,334,690
AB Dynamics plc
Unaudited statement of changes in equity
for the six months ended 28 February 2017
Share Share Merger Reconstruction Retained Total
capital premium relief reserve profits equity
reserve
GBP GBP GBP GBP GBP GBP
At 31 August
2016 177,646 2,590,267 11,390,000 (11,284,500) 14,643,035 17,516,448
Share based
payment expense - - - - 805,649 805,649
Profit after
taxation and
Total comprehensive
Income for
the financial
year - - - - 1,220,834 1,220,834
Dividend paid - - - - (322,426) (322,426)
Issue of shares,
net of share
issue costs 13,473 5,988,997 - - - 6,002,470
At 28 February
2017 191,119 8,579,264 11,390,000 (11,284,500) 16,347,092 25,222,975
At 31 August
2015 173,344 2,540,711 11,390,000 (11,284,500) 10,830,329 13,649,884
Share based
payment Expense - - - - 3,237 3,237
Deferred Tax
on Share Options - - - - 110,892 110,892
Profit after
taxation and
Total comprehensive
Income for
the financial
year - - - - 1,824,679 1,824,679
Dividend paid (286,017) (286,017)
At 29 February
2016 173,344 2,540,711 11,390,000 (11,284,500) 12,483,120 15,302,675
At 31 August
2015 173,344 2,540,711 11,390,000 (11,284,500) 10,830,329 13,649,884
Share based
payment expense - - - - 273,405 273,405
Deferred Tax
on Share Options - - - - (168,387) (168,387)
Profit after
taxation and
Total comprehensive
Income for
the financial
year - - - - 3,874,385 3,874,385
Tax impact
of exercised
Share Options - - - - 329,066 329,066
Dividend paid (495,763) (495,763)
Issue of shares,
net of share
issue costs 4,302 49,556 - - - 53,858
At 31 August
2016 177,646 2,590,267 11,390,000 (11,284,500) 14,643,035 17,516,448
AB Dynamics plc
Unaudited cash flow statement
for the six months ended 28 February 2017
Unaudited Unaudited Audited
6 months 6 months Year
Ended Ended Ended
28 February 29 February 31 August
2017 2016 2016
GBP GBP GBP
Cash flow from operating
activities
Profit before taxation 1,651,757 2,262,516 4,451,320
Adjustments for:-
Depreciation of property,
plant and equipment 125,533 105,342 277,695
Loss on sale of property,
plant and equipment 4,242 391 2,336
Finance income and costs (32,270) 33,428 -
Interest income (43,010) (45,084) (72,643)
Share based payment 805,649 3,237 273,405
Operating cash flows, before
working capital changes 2,511,901 2,359,830 4,932,113
Decrease/(increase) in inventories (588,804) (407,731) (649,939)
Decrease/(increase) in trade
and other receivables (718,061) 564,338 (303,657)
(Decrease)/increase in other
payables 247,710 481,875 519,375
Fair value loss/(gain) on
derivative instruments - - 124,178
Cash flow (used in) / from
operations 1,452,746 2,998,312 4,622,070
Interest received 43,010 45,084 72,643
Income tax paid (188,513) (241,034) (568,314)
Net cash flow (used in)
/ from operating activities 1,307,243 2,802,362 4,126,399
Cash flow used in investing
activities
Purchase of property, plant
and equipment (2,615,723) (338,271) (1,608,527)
Sale of property, plant
and equipment - - 360,748
Net cash flow used in investing
activities (2,615,723) (338,271) (1,247,779)
Cash flow used in financing
activities
Dividends paid (322,426) (286,017) (495,763)
Proceeds from issue of share
capital, net of share issue
costs 6,002,470 - 53,858
Net cash flow from/(used
in) financing activities 5,680,044 (286,017) (441,905)
Net (decrease) / increase
in cash and cash equivalents 4,371,564 2,178,074 2,436,715
Cash and cash equivalents
at beginning of period 10,404,523 7,967,808 7,967,808
Cash and cash equivalents
at end of period 14,776,087 10,145,882 10,404,523
AB Dynamics plc
Notes to the unaudited interim report
for the six months ended 28 February 2017
1. Basis of preparation
The Company is a public limited company limited by shares and
incorporated under the UK Companies Act. The Company is domiciled
in the United Kingdom and the registered office and principal place
of business is Holt Road, Bradford upon Avon, Wiltshire, BA15
1AJ.
The principal activity is the specialised area of design and
manufacture of test equipment for vehicle suspension, steering,
noise and vibration. The company also offers a range of services
which include analysis, design, prototype manufacture, testing and
development.
The interim financial information has been prepared in
accordance with the basis of the accounting policies set out in the
annual report and accounts for the year ended 31 August 2016, which
have been prepared in accordance with International Financial
Reporting Standards as adopted for use by the European Union. The
interim accounts are unaudited and do not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006.
The same accounting policies, presentation and methods of
computation have been followed in this unaudited interim financial
information as those which were applied in the preparation of the
Group's annual statements for the year ended 31 August 2016, upon
which the auditors issued an unqualified opinion, and which have
been delivered to the registrar of companies.
The interim financial information has been drawn up using
accounting policies and presentation expected to be adopted in the
Group's full financial statements for the year ended 31 August
2017. Any new standards that will be adopted in full for the first
time in the year-end financial statements did not have a material
impact on this interim financial information.
The interim financial information for the six months ended 28
February 2017 was approved by the Board on 24 April 2017.
The Directors are declaring an interim dividend of 1.331p per
ordinary share. The ex-dividend date will be 4 May, the record date
5 May and the payment date 19 May 2017.
2. Earnings per share
The calculation of earnings per share is based on the following
earnings and number of shares:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended Ended
28 February 29 February 31 August
2017 2016 2016
GBP GBP GBP
Profit after tax attributable
to owners of the Company 1,220,834 1,824,679 3,874,385
Weighted average number
of shares
Basic 18,351,725 17,334,406 17,414,329
Diluted 18,472,797 17,772,645 17,414,329
Earnings per share
Basic 6.65 pence 10.53 22.25
pence pence
Diluted 6.61 pence 10.27 22.25
pence pence
3. Analysis of revenue by geographical area and major customers
Revenues attributable to individual foreign countries are as
follows:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
February February August
2017 2016 2016
GBP GBP GBP
United Kingdom 405,771 86,993 379,418
Rest of the European Union 2,908,371 3,209,516 6,241,564
North America 2,449,020 1,145,398 3,099,983
Rest of the World 5,237,923 5,666,795 10,751,279
------------ ------------ ------------
11,001,085 10,108,702 20,472,244
------------ ------------ ------------
There were no material non-current assets located outside the
United Kingdom.
Revenues are derived from the following:
Revenue from sale
of goods 8,844,552 7,837,098 15,612,065
Revenue from construction
contracts 2,156,533 2,271,604 4,860,179
----------- ----------- -----------
11,001,085 10,108,702 20,472,244
----------- ----------- -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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