7th Oct 2015 14:45
LONDON (Alliance News) - AB Dynamics PLC on Wednesday said it expects to report revenue and profit materially ahead of market forecasts for the year ended August 31, as the automotive industry testing systems company revealed that it has declined a grant from the UK government's regional growth fund.
"The group has performed well in 2015 and the board expects to report revenues and profits materially ahead of market forecasts," AB Dynamics said. Managing Director Tim Rogers said the group has had continued growth in revenues and profits, while boasting a "strong" order book.
Rogers said construction of its new facility should begin in the first quarter of 2016, with completion expected by the second quarter of 2017, which should bring about the "increase in capacity necessary to meet the growing demand for our products".
The company, which designs, manufactures and supplies testing systems and measurement products to the automotive industry also said it has declined a grant of up to GBP2.3 million from the UK government's regional growth fund. It was conditionally awarded the grant on February 12.
"Having now received the Final Grant Offer Letter, which contains revised requirements from the earlier draft conditional offer letter, the board has determined that these additional requirements are over burdensome and it would not be in the best interests of the group and its shareholders to proceed with the grant and accordingly the offer has been declined," the company said in a statement.
"As a result of the robust financial position and sound operational performance of the business, the board is confident that, notwithstanding declining the grant, the group has sufficient funds to facilitate its expansion plans for meeting increasing global demand which include building the new facility," the company added.
AB Dynamics is set to report final results for the 12 months to August 31 on November 12.
Shares in AB Dynamics were up 19% at 246.00 pence on Wednesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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