Ab Dynamics Plc · LSE:ABDP

Ab Dynamics — FY2025 Earnings Presentation

37 slides from Ab Dynamics's earnings presentation, Nov 12, 2025

  1. Slide 1: Delivering our growth plan

    DELIVERING OUR GROWTH PLAN AB Dynamics plc Results presentation Year ended 31 August 2025

  2. Slide 2: Agenda

    Agenda Highlights Financial results Update on our growth strategy • Organic growth drivers • Margin expansion • M&A Wrap up Sarah Matthews-DeMers, Ed Haycock, Chief Financial Officer Director of Financial Reporting Chief Executive Officer designate 1 AB Dynamics plc Results presentation – 11 Novembe

  3. Slide 3: Highlights

    Highlights Sarah Matthews-DeMers, Chief Financial Officer Chief Executive Officer designate 2 AB Dynamics plc Results presentation – 11 November 2025

  4. Slide 4: A strong start to delivering our growth plan

    A strong start to delivering our growth plan with 15% increase in operating profit • Double-digit revenue growth in H1 followed by a more challenging H2 driven by macroeconomic disruption Revenue growth • Customer activity improved towards the end of the year, closing order book £32m • Product devel

  5. Slide 5: Financial results

    Financial results Ed Haycock, Director of Financial Reporting 4 AB Dynamics plc Results presentation – 11 November 2025

  6. Slide 6: Strong financial performance

    Strong financial performance Revenue 2025 2024 Change 120 Revenue £114.7m £111.3m ↑ 3% 100 Adjusted* operating profit £23.3m £20.3m ↑15% 80 Adjusted* operating margin 20.3% 18.2% ↑ 210 bps Adjusted* diluted EPS 80.3p 70.0p ↑ 15% £m 60 40 Cash conversion 106% 115% 20 Order book £32.0m £30.3m ↑ 6% 0 2

  7. Slide 7: Adjusted operating profit

    Adjusted operating profit 1.1 1.2 +15% (1.3) 23.3 2.0 £m 20.3 2024 Sales volume Sales mix Operational improvements Overheads 2025 6 AB Dynamics plc Results presentation – 11 November 2025

  8. Slide 8: Net cash

    Net cash 29.4 (2.9) (2.4) (4.2) (3.9) (1.3) (1.9) 41.4 £m 28.6 2024 Adjusted operating Tax paid Other Capex Acquisitions Leases Dividend paid 2025 cash flow Operating cash generation Investing Returns to shareholders * Adjusting items have been reclassified into the appropriate cash flow categories.

  9. Slide 9: Testing Products

    Testing Products 2025 2024 Change Highlights Revenue £74.3m £69.4m ↑ 7% • Strong growth in driving robots offset by lower SPMM revenue EBITDA £19.4m £15.5m ↑ 25% • Market drivers continue to support track testing activity levels EBITDA margin 26.1% 22.3% ↑ 380 bps • Margin improvement driven by oper

  10. Slide 10: Testing Services

    Testing Services 2025 2024 Change Highlights Revenue £18.0m £16.7m ↑ 8% • US testing services growth in both mileage accumulation and EBITDA £5.8m £5.3m ↑ 9% track testing EBITDA margin 32.2% 31.7% ↑ 50 bps • New customer wins including established US OEMs and new entrants Adjusted operating profit

  11. Slide 11: Simulation

    Simulation 2025 2024 Change Highlights Revenue £22.4m £25.2m ↓ 11% • Revenue decrease driven by timing of simulator order intake in the EBITDA £5.5m £7.5m ↓ 27% final quarter of the year EBITDA margin 24.6% 29.8% ↓ 520 bps • Market launch of Delta S3 Spin simulator product, with first order received

  12. Slide 12: Key financial enablers

    Key financial enablers Great people Cash conversion Strong balance sheet Capital allocation 553 112% c£40m Organic R&D and capex M&A Global employees Last three-year average Cash positive Dividends 200+ 100% £20m Qualified engineers Aim to continue at this level RCF extended to February 2028 and tec

  13. Slide 13: Capital allocation

    Capital allocation 1. Organic R&D and capex Capital deployed • New product development Capex M&A Dividends ROCE • Capacity and production growth 120% 24% • ERP system investment driving margin improvement 22% 100% 2. M&A Capital deployed (% of EBITDA) 20% • Targeted acquisitions 80% • EPS accretive

  14. Slide 14: Update on our growth strategy

    Update on our growth strategy Sarah Matthews-DeMers, Chief Financial Officer Chief Executive Officer designate 13 AB Dynamics plc Results presentation – 11 November 2025

  15. Slide 15: Medium-term growth ambition

    Medium-term growth ambition Our ambition is to double revenue and triple operating profit over the medium term Medium-term ambition 10% revenue growth Targeting >20% operating margin Investment in acquisitions H1 2025 +11% Up 160 bps to 18.6% Bolab acquired FY 2025 +3% Up 210 bps to 20.3% Pipeline c

  16. Slide 16: Organic growth drivers

    Organic growth drivers 15 AB Dynamics plc Results presentation – 11 November 2025

  17. Slide 17: Organic growth drivers

    Organic growth drivers New vehicle models New powertrains Consumer ratings Regulation • Increasing number of models • Increasing number of powertrains • Growing complexity and number of • Improving safety technology requiring development and tests • New EV model launches expected to • Increasing reg

  18. Slide 18: Margin expansion

    Margin expansion 17 AB Dynamics plc Results presentation – 11 November 2025

  19. Slide 19: Margin expansion

    Margin expansion A programme of incremental improvements underpinned by our new ERP Three opportunities . . . Across three core focus areas Operational improvements of £1.1m delivered Scale Operational gearing How was this achieved? • Supplier Quality Management System implemented • Reduction in dir

  20. Slide 20: M&A

    M&A 19 AB Dynamics plc Results presentation – 11 November 2025

  21. Slide 21: Inorganic growth driver – M&A

    Inorganic growth driver – M&A A strong financial framework delivering value enhancing M&A 2025 update • Strong track record of delivering and integrating value-enhancing acquisitions • Our M&A pipeline is healthy and based on 50 opportunities Acquisition of Bolab completed  clear criteria • We have

  22. Slide 22: Wrap up

    Wrap up Sarah Matthews-DeMers, Chief Financial Officer Chief Executive Officer designate 21 AB Dynamics plc Results presentation – 11 November 2025

  23. Slide 23: Summary and outlook

    Summary and outlook 2025 summary Operating profit growth • Double-digit revenue growth in H1 • H2 growth impacted by tariffs, FX and macroeconomic market challenges • Strong profit growth driven by margin expansion from a combination of operational improvements and revenue mix 15% • Diluted EPS grow

  24. Slide 24: Summary of growth strategy and value creation plan

    Summary of growth strategy and value creation plan Our ambition is to double revenue and triple operating profit against FY 2024 baseline Good pipeline of acquisition Long-term structural and opportunities which could be regulatory market drivers funded from c£40m year remain supportive of end cash

  25. Slide 25: Appendices

    Appendices 24 AB Dynamics plc Results presentation – 11 November 2025

  26. Slide 26: Appendix 1: Medium-term financial assumptions and objectives

    Appendix 1: Medium-term financial assumptions and objectives Medium-term targets: Other financial guidance: Revenue (CAGR) Adjusted operating Capex % of revenue R&D % of revenue margin Circa 5% (partly 10% organic >20% 5% – 6% customer funded) Operating cash Net debt to EBITDA FX Group underlying co

  27. Slide 27: Appendix 2: Income statement

    Appendix 2: Income statement 2025 2024 Change Revenue £114.7m £111.3m ↑ 3% Gross margin 62.0% 59.6% ↑ 240 bps Adjusted* EBITDA £27.8m £24.2m ↑ 15% Adjusted* operating profit £23.3m £20.3m ↑ 15% Adjusted* operating margin 20.3% 18.2% ↑ 210 bps Adjusted* tax rate 18.3% 18.5% ↓ 20 bps Adjusted* diluted

  28. Slide 28: Appendix 3: Revenue detail

    Appendix 3: Revenue detail Revenue by segment Revenue by geography Revenue by customer category Testing Products Europe North America Automotive OEMs Testing Services Asia Pacific Rest of World Service providers Simulation Tier 1 suppliers and technology Revenue (£m) % of revenue Revenue (£m) % of r

  29. Slide 29: Appendix 4: Constant currency

    Appendix 4: Constant currency 2025 restated 2025 at as 2024 Average exchange rate 2025 2024 Constant currency reported rates 2024 Change analysis £m £m £m % US dollar 1.30 1.26 Revenue 114.7 116.1 111.3 +4% Euro 1.19 1.17 Adjusted operating profit 23.3 23.5 20.3 +16% Japanese yen 193 191 Impact of G

  30. Slide 30: Appendix 5: Alternative performance measures

    Appendix 5: Alternative performance measures Profit impact Cash flow impact 2025 2024 2025 2024 £m £m £m £m Amortisation of acquired intangibles 6.2 6.4 — — Acquisition related costs 0.5 0.2 0.5 0.2 ERP development costs 1.1 1.0 1.1 1.0 Acquisition related finance costs 0.5 0.4 — — Total adjustments

  31. Slide 31: Appendix 6: Balance sheet

    Appendix 6: Balance sheet 2025 2024 • Balance sheet remains robust demonstrating the Group’s resilience £m £m to macroeconomic pressures Goodwill and intangibles 77.5 78.4 • Net cash position allows the Group to focus on its strategy for long-term sustainable growth Property, plant and equipment 32.

  32. Slide 32: Appendix 7: Market consensus

    Appendix 7: Market consensus • The Group is aware of eight analysts publishing independent research on the Group • The Group has compiled consensus data* from the research it has been made aware of. The mean is set out below: FY 2026 FY 2027 Adjusted operating profit (£m) 24.5 26.9 Adjusted earnings

  33. Slide 33: Appendix 8: Organic growth drivers – long-term customer relationships

    Appendix 8: Organic growth drivers – high quality long-term customer relationships Customer experience with ABD throughout the development cycle from concept design to launch 1 2 3 4 5 6 7 8 Concept Sub-system Sub-system Prototype Durability Type approval On-road NCAP testing design design testing A

  34. Slide 34: Appendix 9: Acquisition timeline

    Appendix 9: Acquisition timeline The team is experienced in successfully executing and integrating transactions 2019 2020 2021 2022 2023 2024 2025 A B C D E F A B C E F D Simulation software Full-scale track testing Pre-production and Driver-in-loop motion Provider of vehicle Supplier of and digital

  35. Slide 35: Appendix 10: Summary of growth strategy and value creation

    Appendix 10: Summary of growth strategy and value creation Our ambition is to double revenue and triple operating profit against FY 2024 baseline ~£30-50m 10% Acquisition spend per year Organic growth self-funded ~100% >20% Cash conversion Adjusted operating margin This information was first publish

  36. Slide 36: Disclaimer

    Disclaimer No representation or warranty, express or implied, is made or given by or on behalf of AB Dynamics plc (the “Company” and, together with its subsidiaries and subsidiary undertakings, the “Group”) or any of its directors or any other person as to the accuracy, completeness or fairness of t

  37. Slide 37: Thank you

    Thank you AB Dynamics plc Middleton Drive Bradford on Avon Wiltshire BA15 1GB Email: investors@abdplc.com Tel: +44 (0)1225 860 200 www.abdplc.com

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