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(Sharecast News) - AB Dynamics said on Thursday that positive trading momentum had continued into the new financial year, with order intake remaining strong and the group reiterating confidence in delivering full-year results in line with market expectations.
In a trading update ahead of its annual general meeting, the AIM-traded company said orders totalled 46m in the four months ended 31 December, broadly in line with the 48m recorded in the same period a year earlier.
Delivery phasing from orders secured in the final quarter of the 2025 financial year and early in 2026 was expected to result in trading weighted around 40% to the first half and 60% to the second half of the year, following an unusually strong first-half bias in 2025.
AB Dynamics said its balance sheet remained robust, with net cash of 35.5m as at 31 December, up from 23.2m a year earlier, although down from 41.4m at the end of August.
The company said that provided significant flexibility to pursue acquisitions from its active pipeline.
Operating cash generation in 2026 was expected to show a similar second-half weighting to revenue, reflecting working capital investment linked to orders received around the turn of the year.
The group said it remained resilient to near-term automotive production headwinds due to its geographic diversification and its exposure to research and development and testing functions rather than vehicle volumes.
Longer-term growth was expected to be supported by structural and regulatory drivers in active safety, autonomous systems and vehicle automation, alongside continued investment in new product development.
Order visibility also improved, with the group carrying forward 50m of orders at the end of December, compared with 42m a year earlier.
AB Dynamics said that, together with revenue already delivered, provided around 50% cover of expected 2026 revenue, with 14m of the order book expected to be delivered in 2027.
"Encouragingly, underlying demand drivers remain strong, and the increased customer activity seen towards the end of the last financial year continued into the 2026 financial year," said chief executive Sarah Matthews-DeMers.
She added that while the board remained mindful of potential short-term macroeconomic disruption from geopolitical events, it expected to deliver 2026 adjusted operating profit in line with current expectations, with company-compiled analyst forecasts pointing to a mean of 24.5m for the year.
At 1249 GMT, shares in AB Dynamics were down 1.49% at 1,320p.
Reporting by Josh White for Sharecast.com.