Driving delivery
Preliminary results presentation - 26 November 2024 Year ended 31 August 2024
Agenda
Highlights Financial results ABD's transformation
Growth strategy and value creation
- Organic growth drivers
- Margin expansion
- M&A
- ABD Solutions
Wrap up
Dr James Routh, Chief Executive Officer | Sarah Matthews-DeMers, Chief Financial Officer |
1 AB Dynamics plc Preliminary results presentation - 26 November 2024
Highlights
Dr James Routh, Chief Executive Officer
2 | AB Dynamics plc Preliminary results presentation - 26 November 2024 |
2024 operational and strategic highlights
Strong financial results:
- 10% growth in revenue
- 22% growth in operating profit
Market and customer activity levels positive
Product development and new product launches
Contract win for ABD Solutions for delivery in FY 2025
VTS acquisition completed, Bolab acquired post year end
MSCI AAA rating achieved
3 AB Dynamics plc Preliminary results presentation - 26 November 2024
Financial results
Sarah Matthews-DeMers, Chief Financial Officer
4 | AB Dynamics plc Preliminary results presentation - 26 November 2024 |
Continued strong financial performance
Revenue and operating margin
120 | 20% | ||||||
100 | 19% | ||||||
80 | 18% | ||||||
60 | 17% | ||||||
40 | 16% | ||||||
20 | 15% | ||||||
0 | 14% | ||||||
2021 | 2022 | 2023 | 2024 | ||||
Revenue (£m) | Operating margin (%) | ||||||
Cash conversion (%)
120%
100%
80%
60%
40%
20%
0%
2021 | 2022 | 2023 | 2024 |
2024 | 2023 | Change | |
Revenue | £111.3m | £100.8m | ↑ 10% |
Adjusted* operating profit | £20.3m | £16.6m | ↑ 22% |
Adjusted* operating margin | 18.2% | 16.5% | ↑ 170 bps |
Adjusted* diluted EPS | 70.0p | 60.8p | ↑ 15% |
Cash conversion | 115% | 114% | |
Order book | £30.3m | £42.9m | ↓ 29% |
- Revenue up 10% with strong growth across testing products and services
- Operating profit up 22% to £20.3m
- Operating margin expansion, up 170 bps to 18.2%, as a result of operating leverage and operational improvements
- Effective tax rate up to 18.7% due to increase in UK rate
- Diluted EPS up 15% to 70.0p
- Dividend up 20% to 7.63p
- Cash conversion of 115% with rolling three-year average of 116%
- Closing order book of £30.3m provides good visibility into FY 2025
5 | AB Dynamics plc Preliminary results presentation - 26 November 2024 * Before amortisation of acquired intangibles, acquisition related charges and exceptional items |
Revenue
£m
120
115 | 4.2 | 0.4 | +10% | |
110 | 8.4 | (2.5) | 111.3 |
105
100100.8
95 | |||||
90 | |||||
85 | |||||
80 | Testing products | Testing services | Simulation | FX | 2024 |
2023 |
VTS (acquired H2) contributed £1m and is included in Testing services
6 AB Dynamics plc Preliminary results presentation - 26 November 2024
Adjusted operating profit
£m
25
6.20.1
+22%
20 | (2.4) | (0.2) | 20.3 |
15
10
5
16.6
0 | Sales volume | Sales mix | Overheads | FX | 2024 |
2023 |
7 AB Dynamics plc Preliminary results presentation - 26 November 2024
Net cash
£m
70
60 | 27.9 | |||||
50 | (3.1) | (2.1) | ||||
(4.8) | ||||||
40 | ||||||
30 | 32.0 | (17.0) | (2.8) | (1.5) | 28.6 | |
20 |
10
0
2023 | Adjusted operating | Tax paid | Other | Capex | Acquisitions | Leases | Dividend paid | 2024 |
cash flow | ||||||||
Returns to | ||||||||
Operating cash generation | Investing | shareholders |
8 AB Dynamics plc Preliminary results presentation - 26 November 2024
Testing products
2024 | 2023 | Change | |
Revenue | £69.4m | £63.0m | ↑ 10% |
EBITDA | £15.4m | £11.8m | ↑ 31% |
EBITDA margin | 22.2% | 18.7% | ↑ 350 bps |
Adjusted operating profit | £13.2m | £9.1m | ↑ 45% |
Adjusted operating margin | 19.0% | 14.4% | ↑ 460 bps |
Highlights
- Market drivers continue to support track testing activity levels
- Strong growth in driving robots and ADAS testing products
- Regulatory accreditation of LaunchPad Spin, Soft Motorcycle 360 and Soft Pedestrian 360 products
- Increase in margin demonstrates benefit of investment in business infrastructure and capability made in previous years
9 AB Dynamics plc Preliminary results presentation - 26 November 2024