Pre-close Trading Update

23 September 2025

AB Dynamics plc

Pre-close Trading Update

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 in advance of the publication of its results for the year ended 31 August 2025 ("FY 2025").

Full year profitability slightly ahead of expectations

The Board expects full year revenue to exceed £114m. Following strong trading in the first half of the year with double digit revenue growth, the second half was impacted by short-term uncertainty created by macroeconomic and geopolitical challenges, such as US-led trade tariffs, which resulted in some delays to customer order placement. Encouragingly, underlying demand drivers remain strong and customer activity increased towards the end of the year.

As a result, the Group carries forward £32m (2024: £31m) of orders into FY 2026 providing good trading momentum into the first half of the year. As a global market leading supplier of critical technology products and services, with a broad international footprint, the Group has an inherently resilient profile leaving it well placed to manage effectively through any short-term market headwinds.

A primary focus of the Group's medium-term growth plan is to enhance operating margins and the Board expects the operating margin for FY 2025 to exceed 20%, representing an increase of at least 180bps over the prior year. This has been achieved through operational improvements and a richer mix of revenue, largely resulting from the timing of order intake and delivery.

The operational improvements implemented in recent years have contributed to building a strong platform to support further growth, and although the benefit of the revenue mix is not expected to be repeated in FY 2026, the Board is confident of achieving its medium-term sustainable target margin of greater than 20%.

As a result of this robust margin performance, full year adjusted operating profit for FY2025 is anticipated to be slightly ahead of current market expectations1.

Strong growth in Testing Products and Testing Services

Testing Products has performed strongly, with growth driven by customer demand for driving robots in North America and Asia Pacific.

The Testing Services business also saw continued growth, largely driven by the Group's US based operations with positive developments in the mileage accumulation and track testing markets.

In Simulation, a material order for a driving simulator was received later in the second half of the year than anticipated. The timing of order placement has delayed delivery from FY 2025 into FY 2026, thus revenue for Simulation is now expected to be lower than in the prior year.

Financial position and cash flow

The Group maintained its track record of strong operating cash conversion, with net cash at 31 August 2025 of £41.4m (2024: £28.6m), driven by continued effective working capital discipline.

Chief Executive Officer update

On 8 July 2025 the Group announced that James Routh had informed the Board of his intention to take up the Chief Executive position at Victrex plc. The process of appointing James's replacement, which includes internal and external candidates, is progressing to plan and the Board expects to be able to provide a further update no later than by the date of presenting the Group's FY 2025 full year results announcement.

Notice of Full Year results announcement

The Group expects to announce full year results on 11 November 2025.

1 The Company compiled analyst expectations is for a mean adjusted operating profit for the year ended 31 August 2025 of £22.3m.

Enquiries:

The person responsible for arranging the release of this information is David Forbes, Company Secretary.