26th Apr 2016 07:47
LONDON (Alliance News) - AB Dynamics PLC on Monday said its pretax profit and revenue both jumped in the first half of its financial year, prompting a hike to its interim dividend.
AB Dynamics, which makes testing and measurement systems for automotive customers, said pretax profit for the six months to the end of February grew 50% year-on-year to GBP2.3 million from GBP1.5 million a year prior.
Revenue grew 34% in the half to GBP10.1 million from GBP7.6 million, amid robust demand for the company's products and services. Favourable currency movements and further improvements to manufacturing infrastructure also helped boost margins in the half, AB said.
AB said its key markets in China, Europe, Korea and Japan remain strong, and there has been a continued increase in research and development spending by the automotive industry, particularly on active safety systems and improved vehicle dynamics, benefiting the company.
AB said it will pay a 1.21 pence interim dividend, 10% up on the 1.1p payout a year earlier.
"We have a good forward order book for the remainder of the year, and we remain confident in the group's ability to manage future growth," said Managing Director Tim Rogers.
AB shares were up 5.1% to 460.00p on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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