AB Dynamics PLC on Wednesday said its profit and revenue had grown despite a challenging market backdrop.

AB Dynamics is a Bradford On Avon, Wiltshire-based testing systems and measurement products for the automotive market.

In the year ending August 31, AB Dynamics’s pretax profit increased 29% to £4.9 million from £3.8 million last year.

Its revenue grew 23% to £80.3 million from £65.4 million last year, although the company noted that the first half last year was affected by Covid-19.

The increase in revenue was driven by a recovery of sales to China and a full year’s contribution from the acquisition of ValdoTech.

AB Dynamics said it would pay a final dividend of 3.54 pence per share, giving a total dividend of 5.30p per share, an increase of 10% over last year, for which it paid a 4.8p per share dividend.

Chief Executive Officer James Routh said: ‘The group has delivered an outstanding performance against a challenging market backdrop which includes the ongoing impacts of inflation and supply chain constraints.’

The company said momentum into the early part of the new financial year has been ‘encouraging’. It has been supported by a ‘solid order book’ which the company says provides ‘good visibility’ through the first half.

Although it was mindful of supply chain disruption and ‘wider economic uncertainty’, AB Dynamics said that it remains confident that the group will make further financial and strategic progress this year and its expectations remain unchanged.

Routh said: ‘Our market drivers both in our core business and in ABD Solutions remain strong. Despite some potential short-term headwinds relating to global macroeconomic conditions, this backdrop, along with the Group’s recent investments in capability and new products provides confidence of delivering continued progress in 2023 and beyond.’

Shares in AB Dynamics were trading 0.4% lower at 1,591.00 pence each in London on Wednesday morning.

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