Half Year Trading Update and Notice of Results

12 March 2026

AB Dynamics plc

Half year trading update and notice of results

AB Dynamics plc ("AB Dynamics", the "Company" or the "Group"), the designer, manufacturer and supplier of advanced testing, simulation and measurement products and services to the global transport market issues the following trading update ahead of the publication of its half year results for the period to 28 February 2026.

Half year trading

Further to the update provided in January, the positive trading momentum in the final quarter of FY25 has continued during the first half of FY26, with Group order intake in the period of £64m (HY25: £66m, FY25: £110m).

Group revenue in the first half was approximately £49m, in line with expectations, and consistent with the previously guided trading performance weighting of approximately 40% / 60% towards the second half of the current year, set against the context of a greater first half bias in FY25 than typically expected.

In Testing Products, underlying demand drivers remain strong and customer activity was encouraging during HY26, particularly in Asia Pacific and North America. Demand for Suspension Parameter Measuring Machines continued to grow, with additional orders received during the period for delivery in the second half of the year and early FY27.

Trading momentum in Simulation was positive, bolstered by the previously announced award of a €9.7m contract to supply simulation equipment to a major European OEM, as well as a strong trading period for our simulation software business.

In Testing Services, whilst performance has been in line with expectations at our US businesses, our business in China has seen significantly weaker than anticipated volumes under the new contract with a European OEM, awarded at the end of last year. The customer has faced challenging local market conditions and the lower consequent activity has resulted in revenue reducing by approximately one half to less than £3m for the period. In light of this, the Group will record an impairment of the Chinese testing services business and will undertake a strategic review of that business during the second half of the year. The impairment will be recorded as a non-underlying item in our HY26 results and is likely to amount to approximately £16m, the majority of which is non-cash.

Financial position and cash flow

The Group's financial position remains robust with net cash at 28 February 2026 of £39.3m (28 February 2025: £27.2m, 31 August 2025: £41.4m), which provides significant flexibility for the Group to take advantage of its organic investment opportunities and active pipeline of potential acquisition targets. Operating cash generation in FY26 is expected to have a similar second half bias to revenue, reflecting the investment in working capital on orders received through the turn of the year.

Outlook

The Group is geographically diversified, OEM and powertrain agnostic, selling into R&D and testing functions, providing resilience against short-term automotive industry production headwinds. Future growth prospects remain supported by strengthening long-term structural and regulatory growth drivers in active safety, autonomous systems and the automation of vehicle applications, underpinning our medium-term financial objectives. We are continuing to invest in new product development and have the capacity to accelerate progress with further value creating acquisitions.

Underlying demand drivers remain strong, and the increased customer activity seen towards the end of the last financial year has continued into HY26. As a result, the Group carries forward £47m (28 February 2025: £42m) of orders, which together with revenue already delivered in the first half provides c70% cover of FY26 expected revenue. The order book includes £18m expected to be delivered in FY27, building visibility into the medium term.

Whilst mindful of any increased short-term macroeconomic disruption driven by geopolitical events, the Board remains confident that the Group will make further financial and strategic progress this year and expects to deliver FY26 adjusted operating profit in line with current expectations1.

Notice of results

The Group will report its half year results for the period to 28 February 2026 on 14 April 2026. A pre-recorded results presentation will be available on the Group's website, www.abdplc.com, at 7.00am on 14 April 2026. This will be followed by a live presentation for analysts at 9.00am at Stifel offices, 150 Cheapside, London EC2V 6ET. Please contact [email protected] if you would like to attend.

A presentation will also be provided on the Investor Meet Company platform on 15 April 2026 at 9.00am. Anyone wishing to attend should register their interest via https://www.investormeetcompany.com/ab-dynamics-plc/register-investor.

Commenting, Sarah Matthews-DeMers, Chief Executive Officer said:

"Encouragingly, with underlying demand drivers remaining strong, the increased customer activity seen towards the end of the last financial year has continued into FY26.

"We are mindful of the risk of increased short-term macroeconomic volatility driven by geopolitical events and are maintaining an agile approach, to ensure we minimise any potential disruption and continue to deliver unparalleled service for our customers. The Board remains confident that the Group will make further financial and strategic progress this year and expects to deliver FY26 adjusted operating profit in line with current expectations1."

1 Company compiled analyst expectations is for a mean adjusted operating profit for the year ended 31 August 2026 of £24.4m.

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About AB Dynamics plc

AB Dynamics is a leading designer, manufacturer and supplier of advanced testing, simulation and measurement products and services to the global transport market.

AB Dynamics is an international group of companies headquartered in Bradford on Avon. AB Dynamics currently supplies all the major automotive manufacturers, Tier 1 suppliers and service providers, who routinely use the Group's products to test and verify vehicle safety systems and dynamics.