Market leader in growing markets
AB Dynamics is a leading global provider of development, test and verification solutions to the global transport market, facilitating the development of vehicles that are safer, more efficient and more sustainable.
Our investment in our product range, capability, leadership and new product development, alongside our existing core strategy and technologies has built a solid platform from which to grow, supported by strong long-term structural and regulatory growth drivers.
Four reasons to invest
The market for vehicle development products and services is supported by:
- Road safety – the significant increase in regulation of active safety systems, in terms of complexity of requirements and across new geographies and vehicle categories, will drive growth in products and services and incremental use of simulation
- New powertrains – the emergence of electric vehicles (EVs) and hybrids and new original equipment manufacturers (OEMs) drives growth in the number of vehicle models, all of which need certification across each market in which they are sold. Speed to market and cost efficiencies offered by simulation also drive adoption of our simulation range. New powertrains (e.g. hydrogen/ reduced emission fuels) will result in further increases in new models
Our global, diversified customer base and high-quality, long-term customer relationships provide resilience. We support customers throughout the vehicle development cycle.
The wider focus on road safety and reduction in accidents as well as the focus on new powertrains such as EVs are important long-term trends that will support continued growth, as the emergence of new vehicle models and technologies requires additional development work, testing and validation.
Highly differentiated products with continued investment in innovation underpin strong gross margins.
Now that the Group has a solid and scalable operating platform, operating margin expansion will be delivered through operational gearing, improvements in the supply chain and operational efficiency.
Our strong cash generation enables us to fund ongoing investment in organic growth across all our markets and to fund acquisitions.
Our capital allocation priorities are: investment in innovation to grow the organic business; bolt-on acquisitions; and our progressive dividend policy.
Structural and regulatory growth drivers across all our markets
The market for vehicle development products and services is supported by:
- Road safety – the significant increase in regulation of active safety systems, in terms of complexity of requirements and across new geographies and vehicle categories, will drive growth in products and services and incremental use of simulation
- New powertrains – the emergence of electric vehicles (EVs) and hybrids and new original equipment manufacturers (OEMs) drives growth in the number of vehicle models, all of which need certification across each market in which they are sold. Speed to market and cost efficiencies offered by simulation also drive adoption of our simulation range. New powertrains (e.g. hydrogen/ reduced emission fuels) will result in further increases in new models
Highly resilient business solving customers’ sustainability challenges
Our global, diversified customer base and high-quality, long-term customer relationships provide resilience. We support customers throughout the vehicle development cycle.
The wider focus on road safety and reduction in accidents as well as the focus on new powertrains such as EVs are important long-term trends that will support continued growth, as the emergence of new vehicle models and technologies requires additional development work, testing and validation.
Strong margins with clear strategy for expansion
Highly differentiated products with continued investment in innovation underpin strong gross margins.
Now that the Group has a solid and scalable operating platform, operating margin expansion will be delivered through operational gearing, improvements in the supply chain and operational efficiency.
Highly cash generative with clear capital allocation framework
Our strong cash generation enables us to fund ongoing investment in organic growth across all our markets and to fund acquisitions.
Our capital allocation priorities are: investment in innovation to grow the organic business; bolt-on acquisitions; and our progressive dividend policy.
Financial highlights
Data from AB Dynamics Final Results announcement for the year ended 31 August 2025.
Revenue
£114.7m
+3%
(2024: £111.3m)
Adjusted* EBITDA
£27.8m
+15%
(2024: £24.2m)
Adjusted* operating profit
£23.3m
+15%
(2024: £20.3m)
Adjusted* operating margin
20.3%
+210 bps
(2024: 18.2%)
Cash conversion
106%
(2024: 115%)
Net cash
£41.4m
(2024: £28.6m)
Adjusted* diluted earnings per share (EPS)
80.3p
+15%
(2024: 70.0p)
Dividend per share
9.16p
+20%
(2024: 7.63p)
* Adjusted to exclude amortisation of acquired intangibles, acquisition related charges and exceptional items.