AB Dynamics has reported a 12% drop in revenue from continuing operations to £91.6m for the year ended 31 August, against £104.2m a year earlier, as tariff disruption and geopolitical headwinds hit the global testing and simulation specialist's order flow.
The results confirm guidance the company issued in July, when it cut its full-year revenue outlook and flagged a tougher second-half trading backdrop, particularly across its European automotive customer base.
Adjusted operating profit fell 18% to £18.3m from £22.3m, though the London-listed group held its adjusted operating margin at its medium-term target of 20%, down 140 basis points from 21.4% a year earlier.
Statutory operating profit dropped 38% to £10.3m from £16.6m, reflecting £8m of adjustments including acquisition costs, a non-cash impairment and CEO and CFO transition costs.
Adjusted diluted earnings per share fell 21% to 60.3p from 76.0p, while statutory diluted earnings per share nearly halved to 30.2p from 54.5p.
By segment, Testing Products revenue fell 21% to £58.4m, partly reflecting a large robot delivery to a North American OEM in the prior year that did not recur; Simulation revenue grew 10% to £24.7m and Testing Services rose 13% to £8.5m.
The group booked £19.2m of exceptional items, mostly a non-cash impairment, tied to the closure of its VadoTech on-road testing business in China, which has been reclassified as a discontinued operation after a strategic review found the market for European luxury brands there under pressure; the closure began before year end and is expected to complete in the first half of FY2027.
Net cash fell to £24.5m at year end from £41.4m, after the group spent £15.5m on the acquisition of eMpulse Test Systems and deferred consideration for Venshure Test Services, plus £7.1m on capital expenditure and product development.
AB Dynamics completed the acquisition of eMpulse, a Michigan-based maker of servoelectric test systems, on 19 August for initial consideration of $13.5m including working capital adjustments, with contingent consideration of up to $15m payable over a three-year earn-out tied to performance targets.
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The order book stood at £31m at year end, against £32m a year earlier, providing visibility into the first half of FY2027.
The board proposed a final dividend of 7.00p per share, taking the total payout for the year to 10.08p, up 10% from 9.16p.
"Trading in FY 2026 was impacted by disruption from tariffs and geopolitical events together with challenging automotive market conditions, particularly in Europe," said chief executive Sarah Matthews-DeMers, adding that the group "maintained margins at our medium term 20% target through the full year effect of operational improvements and early cost mitigation actions."
For FY2027, the board expects adjusted operating profit to be in line with current expectations, which the company said reflect a mean estimate of £19.7m from eight analysts publishing independent research.