22nd Apr 2020 11:06
(Alliance News) - Testing systems maker AB Dynamics PLC on Wednesday reported interim revenue growth but its profit nearly halved on soaring expenses.
In the six months to February 29, revenue was 34% higher year-on-year at GBP34.7 million from GBP25.8 million. Pretax profit was down 43% to GBP3.7 million from GBP6.3 million.
Administrative expenses more than doubled to GBP16.2 million from GBP6.5 million in the year prior.
On an adjusted basis, pretax profit was 36% higher at GBP8.7 million from GBP6.4 million. The adjusted measure does not include acquisition related charges, restructuring costs, inventory impairment and share based payment charges
AB decided against an interim dividend, after a 1.61 pence payout in the first half of last year.
"I am delighted that we have been able to deliver another strong set of results for the first half of the financial year alongside good progress against our strategic objectives. We are particularly pleased to see a material increase in the proportion of recurring revenue, a good performance from both acquired businesses and an increase in adjusted operating margin," Chief Executive Officer James Routh said.
Looking ahead, AB Dynamics said the picture for the second half of the year has been clouded by the Covid-19 pandemic.
"Although there has not been a material reduction in order intake in the year to date, there has been deferment of some larger orders," the company said.
It has withdrawn future guidance.
Routh added: "The group has taken steps to preserve cash and has a robust balance sheet with sufficient resources to address any likely Covid-19 related impacts whilst continuing to invest in key areas to ensure the group can capitalise on the long term structural and regulatory growth drivers in our markets."
Shares in the company were 0.5% lower at 1,505.00p each in London on Wednesday morning.
By Eric Cunha; [email protected]
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