AB DYNAMICS PLC Delivering strategic growth
AB Dynamics plc Annual Report 2022
Strategic report | Governance | Financial statements | |
Leadership and innovation in engineering and technology
Building a platform for growth
Having invested in our Group product range, capability, leadership and new product development and leveraging our existing core strategy and technologies, the Group has delivered a strong set of results, and continues to build solid foundations as a platform for growth and long-term sustainability.
- Read more about our investment case page 5
- Read more about our markets page 8
- Read more about our strategy page 8
Strategic report | Governance | Financial statements | |||
1 | Highlights of 2022 | 60 | Chairman's introduction to corporate governance | 94 | Independent auditor's report |
2 | At a glance | 61 | Statement of corporate governance | 98 | Consolidated statement of comprehensive income |
4 | How we are evolving | 62 | Board of Directors | 99 | Consolidated statement of financial position |
5 | Investment case | 64 | Executive Committee | 100 | Consolidated statement of changes in equity |
6 | Chairman's statement | 66 | Statement of corporate compliance | 101 | Consolidated cash flow statement |
8 | Our markets and strategy | 77 | Nomination Committee report | 102 | Notes to the consolidated financial statements |
12 | AB Simulation | 79 | Audit and Risk Committee report | 123 | Company statement of financial position |
14 | Business model | 81 | ESG Committee report | 123 | Company statement of changes in equity |
16 | Chief Executive Officer's review | 82 | Remuneration Committee report | 124 | Notes to the Company financial statements |
19 | Q&A with Dr James Routh | 90 | Directors' report | 129 | Notice of Annual General Meeting |
20 | Operational review - Track testing | 93 | Statement of Directors' responsibilities |
- Operational review - Laboratory testing and simulation
- Chief Financial Officer's review
- Key performance indicators
- ABD Solutions
- ABD Solutions architecture
- Environmental, social and governance (ESG) strategy
- S172(1) statement and stakeholder engagement
54 | Risk management | Discover more at |
56 | Principal risks and uncertainties | |
abdynamics.com | ||
Strategic report | Governance | Financial statements |
Highlights of 2022
Strong strategic progress and financial performance
Financial highlights
Revenue
£80.3m +23%
(2021: £65.4m)
EBITDA
£16.4m +21%
(2021: £13.5m)
Adjusted* operating profit
£12.7m +18%
(2021: £10.8m)
Operational highlights
- Whilst the current macroeconomic operating environment still presents challenges in relation to supply chain disruption, the Group has been successful in delivering output and mitigating inflationary cost pressures through price increases for new orders
- Revenue increased by 23% with the recovery of sales to China and the full year's contribution of VadoTech. Organic revenue increased by 18%
- Further progress made on the implementation of strategic initiatives targeting diversification alongside the established pillars and opening up new markets beyond automotive through the launch of ABD Solutions
- ABD Solutions was awarded its first development contract by an industrial equipment supplier in Japan for a driverless retrofit solution for mining vehicles
- New product development continued in line with our technology roadmap for existing track testing and simulation markets and development of the core technology for ABD Solutions. Along with the successful launch of our new range of ADAS dummies, the full AB Dynamics LaunchPad product range and GST 120 have now been certified for use in Euro NCAP testing
- VadoTech Group has been successfully integrated into the Group and delivered a solid performance since it was acquired in March 2021
- Growth in percentage of Group's recurring revenue to 41%, up from 35%, enhanced by the strengthening of the APAC regional footprint
- Post-year-endacquisition of Ansible Motion and the creation of a new market-facing business unit, AB Simulation, enhances the Group's simulation capabilities, expands its simulator product range and achieves critical mass in this attractive sector
Adjusted* operating margin 15.8% -80 bps (2021: 16.6%)
Net cash
£29.2m
(2021: £22.3m)
Adjusted* diluted earnings per share (EPS)
44.5p +19%
(2021: 37.4p)
Dividend per share
5.3p +10%
(2021: 4.8p)
- Adjusted to exclude amortisation of acquired intangibles, acquisition related charges and exceptional items. All profit and earnings per share figures going forward refer to adjusted business performance as defined on page 28 with a reconciliation to statutory measures.
AB Dynamics plcAnnual Report and Accounts 2022 | 01 |
Strategic report Governance | Financial statements | ||
At a glance |
Developing | Global locations | |
our business | ChinaJapan | |
UK | ||
USA | Germany | |
Singapore |
Global sales revenue by region | Revenue by sector | Revenue by customer category | Proportion of recurring revenue | ||||
£m | |||||||
0 | |||||||
1% | 4% | 70 | |||||
24% | .6m | 60 | |||||
24% | |||||||
23% | 0 | ||||||
40 | |||||||
30 | 41% | ||||||
£64.7m | 20 | 3 % | |||||
73% | 10 | ||||||
51% | 0 | ||||||
2021 | 2 | 22 | |||||
2424£+U201551+U70805+U2 |
UK/Europe | Laboratory testing and simulation | Automotive OEMs | Recurring |
Asia Pacific | Track testing | Service providers | Original equipment |
North America | Tier 1 suppliers and technology | ||
Rest of World |
02 AB Dynamics plcAnnual Report and Accounts 2022
Strategic report | Governance | Financial statements | |
At a glance continued
Track testing
Track testing products and services represent 81% of total Group revenue. The products are used for the test and verification of Advanced Driver Assistance Systems (ADAS), autonomous systems and vehicle dynamics. Test vehicles and ADAS platforms, such as the Guided Soft Target (GST) and LaunchPad, are controlled using complex control software for accurate control and synchronisation of multiple test objects.
This enables our customers to conduct complex, multi-object test scenarios with a simple-to-use software interface to satisfy internal or external regulatory test requirements.
The Group also provides testing services including the provision of ADAS and vehicle dynamics tests through a comprehensive test facility based in California, USA. Following the acquisition of VadoTech, the Group also offers on-road testing services, with operations in China and Japan.
Revenue
£64.7m
- Read more about our track testing page 20
Laboratory testing and simulation
Laboratory testing and simulation represents 19% of total Group revenue and includes products relating to simulation, noise and vibration and the assessment of kinematics and compliance in vehicles; and simulation software. These products are used to evaluate vehicle dynamics, noise, vibration and harshness and ADAS across a wide range of applications including conventional vehicles, motorsport and automated vehicles.
Our simulator products along with our market-leading physics based simulation software reduce new vehicle development timescales by allowing meaningful testing earlier in the development process which form the core of our new market-facing business unit, AB Simulation. The use of simulation reduces new vehicle development timescales by allowing meaningful evaluation earlier in the development process.
Revenue
£15.6m
- Read more about our laboratory testing and simulation page 23
Delivering a stronger business
As we expand our portfolio of products and services,
we are reducing our reliance on specific market sectors and geographic territories. Continued progress in developing our service and support offering through both organic and acquisitive growth has increased the proportion of recurring and service-based revenue.
The launch of ABD Solutions in the prior year and the formation of AB Simulation enables us to drive growth in core and adjacent markets, and our investment in skills, capacity and leadership ensures we have a platform for sustainable long-term growth. ABD Solutions leverages the core technologies of AB Dynamics into new adjacent markets where the customer is the end
user of the equipment, developing solutions to automate vehicle applications specifically in the mining, defence and agriculture sectors.
In the current year AB Simulation has been formed as a market-facing business unit focusing on the supply of advanced simulation products and services to the automotive and motorsport industries. This brings together the Group's existing simulators and simulation business as well as the recently acquired Ansible Motion as a coherent unit with critical mass in this attractive market.
AB Dynamics plcAnnual Report and Accounts 2022 | 03 |
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AB Dynamics plc published this content on 23 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 November 2022 11:14:04 UTC.
