Strong performance in track testing
AB Dynamics (ABD) has announced that it will significantly exceed market expectations for both revenue and profit for the year to the end of August – full results are due on 14 November. The update says that the Group has performed well through the year, with the significant growth in turnover mainly from increased sales of its track testing products. We think that the Group is likely to have seen strength across a number of global geographies with commensurate levels of sales and deliveries in the ADAS targets and steering robot businesses. We have increased our estimates for FY 2018E to reflect the announcement, with our revenue and Adjusted PBT numbers increasing by 16% and 14% respectively, reflecting our position at the lower end of the range of market forecasts. A strong and positive update, boding well for ongoing growth and market development.