Final Results
Summary by AI BETAClose X
10 November 2026
AB Dynamics plc
Final results for the year ended 31 August 2026
“Repositioning with purpose”
AB Dynamics plc (‘AB Dynamics’, the ‘Company’ or the ‘Group’), the designer, manufacturer and supplier of advanced testing, simulation and measurement products and services to the global transport market, announces its final results for the year ended 31 August 2026.
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Audited 20263 £m |
Audited Re-presented2 20253 £m
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Revenue |
91.6 |
104.2 |
-12% |
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Gross margin |
64.5% |
63.7% |
+80bps |
|
Adjusted EBITDA1 |
22.4 |
26.2 |
-15% |
|
Adjusted operating profit1 |
18.3 |
22.3 |
-18% |
|
Adjusted operating margin1 |
20.0% |
21.4% |
-140bps |
|
Statutory operating profit |
10.3 |
16.6 |
-38% |
|
Adjusted operating cash flow1 |
13.6 |
27.8 |
-51% |
|
Net cash |
24.5 |
41.4 |
|
|
|
Pence |
Pence |
|
|
Adjusted diluted earnings per share1 |
60.3 |
76.0 |
-21% |
|
Statutory diluted earnings per share |
30.2 |
54.5 |
-45% |
|
Total dividend per share |
10.08 |
9.16 |
+10% |
1Before amortisation of acquired intangibles, acquisition related charges and exceptional items. A reconciliation to statutory measures is given in note 3.
2Re-presented to reflect the VadoTech business as a discontinued operation.
3 All measures relate only to continuing operations.
Financial highlights
- Results in line with guidance communicated in July 2026, as the Group delivered a resilient performance against a very challenging market backdrop. Revenue decreased by 12% with the beginning of the year affected by disruption from tariffs and the second half impacted by geopolitical events together with challenging automotive market conditions, particularly in Europe
- Adjusted operating margin maintained at the Group’s medium term target of 20%, as the negative impact of operational gearing was offset by a combination of the full year effect of operational improvements and early cost mitigation actions implemented by management
- Investment in capex and product development of £7.1m and acquisitions of £15.5m, to support growth in the medium term
- The Group’s balance sheet remains robust with net cash at the end of the year of £24.5m, providing scope for further value enhancing investment in FY 2027 and beyond
- Proposed final dividend of 7.00p per share, bringing the total dividend for the year to 10.08p per share (2025: 9.16p per share), an increase of 10%, reflecting the Board’s confidence in the Group’s financial position and prospects
Operational and strategic highlights
- The new executive team has reviewed the capabilities of the Group and concluded that to capitalise on market opportunities, increased investment is needed in innovation and product development, together with sales, marketing and routes to market. In order to support these sustainable growth initiatives, we will seek to maintain margins at 20% and reinvest surplus margin into these areas to drive medium-term revenue growth
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New product development continues at pace and in line with the technology roadmap for Testing Products and Simulation markets
- The Simulation segment launched the T1 Sport to address the growing low cost motorsport market
- The Testing Products segment launched the GST 120 Plus, to achieve higher speeds in line with 2026 Euro NCAP requirements
- Software enhancements launched, including new Euro NCAP software functionality, and rFpro’s library of digital models expanded
- Acquisition of eMpulse completed on 19 August 2026 for an initial consideration of $13.5m including adjustments for working capital, with a three-year earn-out period driving potential contingent consideration of up to $15m subject to the achievement of certain performance criteria
- The Group has continued to build its acquisition pipeline, targeting high growth technology-enabled businesses, to accelerate strategic progress
- While product sales to domestic Chinese customers remain strong, the market for European luxury brands in China faces significant challenges, which is negatively impacting the VadoTech Testing Services business (on-road testing in China on behalf of a single European OEM). In response, the Group completed a strategic review of this business during the second half of the year and has taken action to close it. The closure process commenced before year end and is expected to complete in the first half of FY 2027. As a result, the business has been treated as a discontinued operation. The Group has recorded exceptional items totalling £19.2m in relation to VadoTech, the majority of which is a non-cash impairment charge
- As part of the Group’s post-acquisition professionalisation plan for Ansible Motion and underpinned by its good order intake in FY 2026, Ansible will consolidate its operational and administrative footprint into a single purpose-built leasehold facility during the first half of FY 2027
Current trading and outlook
- We have entered FY 2027 with no sign of the geopolitical and macroeconomic disruption abating and automotive industry headwinds, particularly in Europe, remain
- In this challenging environment, the Board remains focused on ensuring the Group is well placed to benefit from the long-term structural and regulatory growth opportunities in active safety, autonomous systems and the automation of vehicle applications at the time when market conditions normalise, the timing of which is inherently uncertain
- Year end order book of £31m (FY 2025: £32m) provides visibility into FY 2027
- Whilst mindful that short-term macroeconomic disruption and challenging automotive market conditions have continued into FY 2027, the Board expects adjusted operating profit for FY 2027 to be in line with current expectations4
- The Group is geographically diversified, OEM and powertrain agnostic and sells predominantly into research, development and testing functions rather than vehicle production programmes. In the long term, these factors, underpinned by structural and regulatory drivers, support the Group’s future growth prospects.
There will be a presentation for analysts this morning at 9.00am at Stifel, 150 Cheapside, London, EC2V 6ET. Please contact investors@abdplc.com if you would like to attend.
Commenting on the results, Sarah Matthews-DeMers, Chief Executive Officer, said:
“Trading in FY 2026 was impacted by disruption from tariffs and geopolitical events together with challenging automotive market conditions, particularly in Europe. Whilst this resulted in a revenue decrease of 12%, we maintained margins at our medium term 20% target through the full year effect of operational improvements and early cost mitigation actions implemented by management.
“In this challenging environment, the Board remains focused on repositioning the Group with purpose to ensure it is well placed to benefit from the long-term structural and regulatory growth opportunities in active safety, autonomous systems and the automation of vehicle applications when market conditions normalise, the timing of which is inherently uncertain.
“The Group is geographically diversified, OEM and powertrain agnostic and sells predominantly into research, development and testing functions rather than vehicle production programmes. In the long term, these factors, underpinned by structural and regulatory drivers, support the Group’s future growth prospects.
“The year end order book of £31m (FY 2025: £32m) provides visibility into FY 2027. Whilst mindful that short-term macroeconomic disruption and challenging automotive market conditions have continued into FY 2027, the Board expects adjusted operating profit for FY 2027 to be in line with current expectations4”.
4 The Company is aware of eight analysts publishing independent research. The Company compiled analyst expectations for the year ended 31 August 2027 is for a mean adjusted operating profit of £19.7m.
Enquiries:
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AB Dynamics plc |
01225 860 200 |
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Sarah Matthews-DeMers, Chief Executive Officer | |
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Andrew Lewis, Interim Chief Financial Officer Ed Haycock, Group Finance Director
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Peel Hunt LLP (Nominated Adviser and Joint Broker) |
0207 418 8900 |
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Mike Bell Ed Allsopp
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Stifel Nicolaus Europe Limited (Joint Broker) |
0207 710 7600 |
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Matthew Blawat Orme Clarke
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The person responsible for arranging the release of this information is Miles Ingrey-Counter, Company Secretary.
About AB Dynamics plc
AB Dynamics is a leading designer, manufacturer and supplier of advanced testing, simulation and measurement products and services to the global transport market.
AB Dynamics is an international group of companies headquartered in Bradford on Avon. AB Dynamics currently supplies all the major automotive manufacturers, Tier 1 suppliers and service providers, who routinely use the Group’s products to test and verify vehicle safety systems and dynamics.
Summary of FY 2026 performance
FY 2026 was a disappointing year for the Group in terms of financial performance, with adverse market conditions impacting demand levels. The Group’s revenue and profit decreased as a result of macroeconomic and geopolitical disruption as well as a challenging automotive market, particularly in Europe. Positively, operating margin was maintained at 20.0%, as the negative impact of operational gearing was offset by a combination of the full year effect of operational improvements and early cost mitigation actions implemented by management.
The strong margin performance in what was a difficult trading environment, combined with the strength of the Group’s balance sheet, gives management the confidence to allocate increased resources in FY 2027 to innovation, sales, marketing and routes to market to ensure the Group is able to capitalise on the compelling growth opportunities across its key markets, which are underpinned by significant regulatory and technological developments.
During FY 2026, the Group continued to deliver against its strategic priorities by launching new products and services aligned with the long-term technology roadmap. The acquisition of eMpulse Test Systems (eMpulse) also expanded its portfolio of testing products, complementing the Group’s existing offering in the laboratory testing area.
Group overview
The Group has 12 facilities in four countries across Europe, North America and Asia. Building on the strength of the core business, coupled with value enhancing acquisitions, the Group has a solid and scalable platform from which to capitalise on a multi-year growth opportunity, supported by strong long-term structural and regulatory tailwinds.
The Group’s mission is to improve road safety and enable customers to bring safer vehicles to market faster and more cost effectively. Its market-leading position is driven by its technical capabilities and reputation. The Group’s products must satisfy challenging and complex requirements meaning barriers to entry are high.
FY 2026 market update
There has been significant market dislocation in the automotive industry over the last 18 months.
The US-led introduction of international trade tariffs created uncertainty and operational complexity which delayed customer investment decisions, impacting order intake in the second half of FY 2025 and this impact continued into the first half of our financial year as customers adapted to the new international trade conditions.
The subsequent, significant geopolitical disruption caused by the conflict in the Middle East has negatively impacted overall customer confidence and created logistics headwinds which have caused customers to lengthen their procurement decision timelines.
Alongside the wider, macroeconomic disruption, European automotive OEMs have come under increasing competitive pressures, which is expected to result in significant strategic and footprint restructuring in the short to medium term. This has increased disruption to development programmes and procurement activity. While the Group is geographically diversified and well positioned with Chinese new entrants for the long term, Europe currently represents c30% of our revenue, and therefore the disruption in FY 2026 has adversely impacted the Group this year.
Medium to long term market overview
The automotive sector continues to experience structural and regulatory changes driving rapid unprecedented evolution, creating the following positive market drivers for the Group:
- Safety technology and the associated regulatory and certification requirements are developing rapidly, both in terms of complexity and the rate of adoption
- Powertrain developments have led to a proliferation of different models, with electric vehicles (EVs) and internal combustion engine vehicles expected to coexist for a longer period
- New entrants into the automotive market are driving competition for market share, meaning new model development is a key focus for OEMs
- While full scale adoption of autonomous vehicles is not expected until well into the future, the Group is well placed to benefit as regulation matures
All of the above trends are long-term tailwinds that support the growth of the Group’s end markets across each of its three sectors, but have also contributed to volatility in the wider automotive market that can impact the timing of specific customer procurement activity over a short-term period.
While any short-term market headwinds can create adverse timing differences, the Group is a global market leading supplier of critical technology products and services and has an inherently resilient profile, leaving it well placed to manage effectively in the medium to long term:
- OEMs need to remain fully committed to investing in R&D, arguably more now than ever given the heightened levels of competition as each OEM needs to respond to the evolving industry dynamics and their own specific footprint challenges
- OEMs need AB Dynamics’ testing products and services for development of vehicles and certification of active safety systems across all types of powertrains
- The Group is a leader in all key global markets and, with over 150 customers, its broad customer base and geographic mix of revenue means it is largely agnostic to the success or failure of individual OEMs
- The Group’s simulation capabilities enable OEMs to accelerate the efficiency and speed of development by allowing customers to test in a virtual environment. As leaders in both physical and virtual testing environments, we are uniquely positioned to capture value in supporting customers in both ends of the development cycle
- In the medium term the Group’s international manufacturing and assembly footprint gives it operational flexibility to react to changes in automotive market and international trade dynamics
Financial performance
Results were in line with guidance communicated in July 2026. Revenue declined by 12%, with the beginning of the year affected by disruption from tariffs and the second half impacted by geopolitical events together with challenging automotive market conditions, particularly in Europe.
Gross margin was 64.5%, up 80 bps on 2025 (63.7%) driven by the full year effect of operational improvements and a small tailwind from revenue mix.
Operating margin was maintained at the Group’s medium-term target of 20.0%, as the negative impact of operational gearing was offset by the improvement in gross margin and early cost mitigation actions implemented by management.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 15% to £22.4m (2025: £26.2m). Adjusted EBITDA margin was 24.5% (2025: 25.1%), a decrease of 60 bps.
Adjusted net finance costs were £nil (2025: £0.4m).
Adjusted profit before tax was £18.3m (2025: £21.9m). The Group adjusted tax charge totalled £4.3m (2025: £4.2m), an adjusted effective tax rate of 23.5% (2025: 19.2%), driven by the geographical mix of profits.
Adjusted diluted earnings per share was 60.3p (2025: 76.0p), a decrease of 21%, reflecting the decrease in operating profit and higher effective tax rate.
Statutory operating profit decreased 38% to £10.3m (2025: £16.6m) and after net finance costs of £0.5m (2025: £0.9m), statutory profit before tax decreased by 38% from £15.7m to £9.8m. The statutory tax charge decreased to £2.8m (2025: £3.0m). Statutory basic earnings per share from continuing operations was 30.4p (2025: 55.2p). A reconciliation of statutory to underlying non-GAAP financial measures is provided in note 3.
Adjusted operating cash of £13.6m (2025: £27.8m) reflected an investment in working capital as customer deliveries occurred later in the period than usual.
The net cash position at the year end was £24.5m (2025: £41.4m), after investing £15.5m in the acquisition of eMpulse and deferred consideration for VTS, as well as £7.1m of investment in product development and property, plant and equipment and dividends of £2.1m.
The Group has a robust balance sheet, which along with its £17.5m revolving credit facility that extends to February 2029, provides significant resources to continue the Group’s investment programme.
The order book at the year end was £31m (2025: £32m), providing visibility into FY 2027.
Segment review
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FY 2026
£m |
FY 2025 Re-presented £m |
Change |
|
Testing Products |
|
|
|
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Revenue |
58.4 |
74.3 |
-21% |
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Adjusted EBITDA |
15.8 |
19.4 |
-19% |
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Adjusted operating profit |
13.2 |
16.9 |
-22% |
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Testing Services |
|
|
|
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Revenue |
8.5 |
7.5 |
+13% |
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Adjusted EBITDA |
3.0 |
4.2 |
-29% |
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Adjusted operating profit |
2.1 |
3.4 |
-38% |
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Simulation |
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Revenue |
24.7 |
22.4 |
+10% |
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Adjusted EBITDA |
6.1 |
5.5 |
+11% |
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Adjusted operating profit |
5.6 |
5.0 |
+12% |
Testing Products
The Group’s testing products are used on proving grounds, test tracks and in the laboratory to evaluate the performance of vehicle active safety systems, autonomous technologies, EVs, vehicle durability, vehicle dynamics and electronic sub-systems.
The beginning of the year was affected by disruption from tariffs and the second half was impacted by geopolitical events together with challenging automotive market conditions, particularly in Europe. As a result, revenue of £58.4m was down 21% against an FY 2025 comparative of £74.3m that included a material delivery of robots to a North American OEM which did not recur in the year.
Adjusted operating profit decreased 22% to £13.2m while the operating margin was maintained at 22.6% as the negative impact of operational gearing was offset by a combination of the full year effect of operational improvements and early cost mitigation actions implemented by management.
Whilst the timing of OEM procurement has been disrupted in FY 2026, Global New Car Assessment Program (NCAP) testing requirements for ADAS have been increasing rapidly with further growth expected. Across the globe, there is an increased focus on safety standards, with Euro NCAP, NHTSA and China NCAP leading the way, with standards also now improving in Japan and adoption commencing in India and Africa. New tests for commercial vehicles offer further opportunities for market expansion.
Working with the regulatory bodies and proving grounds around the world, the Group is uniquely positioned as a trusted partner, supporting the regulatory bodies and helping our customers to meet testing requirements. The Group continues to invest in new product development in the Testing Products segment in order to meet forthcoming regulatory requirements and to ensure we retain our market leadership in testing technology.
Testing Services
Testing Services includes revenue from the Group’s test facility in California, USA, where testing of ADAS systems and vehicle dynamics is performed on behalf of OEMs, technology developers and government agencies.
In addition, the Group operates a laboratory testing facility, based in Michigan, USA, performing mileage accumulation testing, climatic and thermal testing, and assessment of EV powertrain and battery performance.
The segment saw revenue growth of 13% to £8.5m (2025: £7.5m) driven by strong growth in the Group’s mileage accumulation testing business.
Adjusted operating profit decreased 38% to £2.1m and the operating profit margin was 24.7%, with the prior year reflecting a larger proportion of higher margin OEM track testing and a lower proportion of projects for the US regulator.
Simulation
The Group provides both physical simulators and advanced, physics based simulation software. Simulators are used by both automotive manufacturers and motorsport teams to accurately represent the real world using the rFpro software, coupled with state-of-the-art dynamic and static driving simulators to assist in development of new vehicles and improve performance.
Simulation revenue increased by 10% to £24.7m (2025: £22.4m). The increase in revenue was driven by both hardware and software demand. Simulator sales are individually material, and the timing of individual order placement has been impacted by adverse market conditions, in particular for European OEMs.
Adjusted operating profit increased 12% to £5.6m and the operating margin increased 40 bps to 22.7% due to the operating leverage impact of the increase in volume and a higher mix of software revenue.
Automotive OEMs and motorsport teams are increasingly investing in simulation capability to shorten their model development cycle and respond to limited track testing time and budgets. Over time, we expect this to drive increased demand for both physical simulators and simulation software and our market leading offering positions us well to serve our customers’ needs in a growing market.
Discontinued operations
The VadoTech Testing Services business has been treated as a discontinued operation. The Group has recorded exceptional items totalling £19.2m in relation to VadoTech, the majority of which is a non-cash impairment charge. The comparative figures have been re-presented accordingly. For more detail see note 4.
Our strategy
The Group’s strategy is one of organic led growth, supplemented with value enhancing acquisitions.
Over recent years the Group has invested heavily in operational capability, systems, infrastructure and leadership. Having achieved our medium-term operating margin aspirations, we now have the opportunity to redirect a portion of future efficiency gains towards areas that will support sustainable revenue growth:
Products and innovation
The Group has expanded its product offering with new products such as the GST 120 Plus and the T1 Sport simulator that were launched during the year. Market led new product development continues to be a core focus of the Group’s capital allocation policy to ensure that our customers’ current and future needs are met, as regulatory requirements and the number and complexity of test scenarios increase.
The Group has expanded its software suite during the year with the release of a new module designed specifically for the demands of the latest Euro NCAP 2026 protocols, with over 1,000 new pre-defined test scenarios, enabling customers to significantly increase the efficiency of testing. In addition, market interest is continuing to build for the Group’s simulation software solution for ADAS and AV development, AV Elevate.
Sales and marketing
In order to capitalise on the compelling growth opportunity in our key markets underpinned by significant regulatory and technological developments, management is conducting a route to market effectiveness review and plan to allocate increased resources to this area in FY 2027.
Our broad customer and geographic base and leadership positions in key regional markets and product areas provide a strong foundation. With investment, we can enhance this position further by developing existing customer relationships and exploring opportunities in markets where safety regulation is evolving rapidly.
The Group continues to focus on maximising its service and support revenue streams via targeted upselling of value add services, such as calibration, and specific software upgrades to its installed customer base.
Operational excellence
The investment in the Group’s infrastructure, people and processes over the last five years built the foundations that have created resilience, and the ability to deliver profitable growth. Operational improvements, facilitated by our new ERP system, have reduced customer lead times, helping to expand and protect market share. Product quality has also been improved by rationalising the number of product configuration options, implementing a new supplier quality management system and introducing more stringent subassembly testing procedures. Further opportunities for standardisation of products and simplification of supply chain are being pursued to improve capability and capacity further, in addition to other commercial initiatives.
Acquisitive growth
Acquisitions have been, and will continue to be, a significant part of the overall strategy. On 19 August 2026, the Group acquired eMpulse, a supplier of advanced servoelectric test systems to the global automotive industry for applications in noise, vibration and harshness (NVH), structural and durability testing. eMpulse’s product portfolio is highly complementary to the Group’s existing servoelectric testing system, the Suspension Parameter Measurement Machine (SPMM), broadening the range of laboratory testing solutions available to customers and creating additional opportunities for cross-selling and customer penetration across our global installed base.
The acquisition is consistent with our disciplined approach to capital allocation and our established acquisition criteria, targeting profitable, technology-enabled businesses operating in attractive markets with strong growth characteristics. We believe eMpulse enhances the breadth of our offering, deepens our technical capability and further aligns the Group with the long-term structural drivers underpinning vehicle development, testing and validation.
Whilst the integration process is at an early stage, we have been encouraged by the quality of the business, its technology and its customer relationships. Looking ahead, we continue to see a healthy pipeline of potential acquisition opportunities and, supported by our strong balance sheet, remain well positioned to pursue further value enhancing transactions where they meet our strategic and financial criteria.
Culture
Our culture supports the execution of our growth strategy and helps differentiate AB Dynamics in highly specialised markets. We seek to create an environment in which innovation can thrive, where talented people are empowered to solve complex challenges and where collaboration across the Group drives superior outcomes for customers.
Our values guide behaviours and decision-making throughout the organisation, helping to maintain a common identity as the Group expands internationally and integrates acquired businesses. By nurturing employee engagement, supporting professional development and championing an inclusive culture, we strengthen our ability to attract, retain and develop the talented individuals who are essential to delivering sustainable growth and maintaining our market leading position.
Board changes
On 8 July 2025 the Board announced that Dr James Routh, Chief Executive Officer (CEO), had informed the Board of his decision to stand down to take up the CEO position at the FTSE 250 group Victrex plc. James stood down from the Board on 30 November 2025 and left the Group on 31 December 2025.
On 21 October 2025 the Board announced the appointment of Sarah Matthews-DeMers as CEO. Sarah was previously Chief Financial Officer (CFO) and took up her new role from 1 December 2025.
On 1 July 2026 the Board announced the appointment of Ed Haycock as CFO. Ed joined the Board on 1 September 2026 and following a handover period with the Interim CFO, Andrew Lewis, will take up his new role on 1 December 2026 following the publication of the Group’s financial results for the year ended 31 August 2026.
On 14 May 2025 the Board announced the appointment of Julie Armstrong as a Non-Executive Director to the Board and Remuneration Committee Chair elect. Having served for nine years, Richard Hickinbotham stood down as a Director on 31 August 2026, and Julie Armstrong assumed the position of Remuneration Committee Chair on 2 June 2026.
Sustainability
The Group is committed to ensuring the health, safety and wellbeing of all employees across the Group, as well as environmental sustainability, both globally and in its local communities, and reducing its environmental impact. It is the Group’s mission to empower its customers to accelerate the development of vehicles that are not only safer, but also more efficient with less of an impact on the environment. The Group is continually looking for opportunities to improve; environmental sustainability is essential.
The Group is committed to the goal of becoming net zero for market based Scope 1 and 2 emissions by 2040 and working to be a net zero organisation by 2050. This will include the further development of initiatives to reduce its carbon emissions, waste and water usage, using improved methods of data collection so that more achievable targets can be set in the future.
Alternative performance measures
In the analysis of the Group’s financial performance and position, operating results and cash flows, alternative performance measures are presented to provide readers with additional information. The principal measures presented are adjusted measures of earnings including adjusted operating profit, adjusted EBITDA, adjusted operating margin, adjusted profit before tax, adjusted earnings per share and adjusted cash flow from operations. A reconciliation of adjusted measures to statutory measures is provided in note 3.
Return on capital employed (ROCE)
Our capital-efficient business and high margins enable generation of strong ROCE (defined as adjusted operating profit as a percentage of capital employed, being shareholders’ equity less net cash plus deferred tax liabilities and contingent consideration). During the year, ROCE has decreased from 19.3% to 16.5%, reflecting the reduction in adjusted operating profit.
Capital allocation
Our capital allocation framework aims to deliver sustainable compounding growth as well as growing returns to shareholders, whilst maintaining a robust balance sheet. Our priorities are:
- Continuous organic investment and innovation to protect and grow the core business
- Complementary acquisitions contributing to one or more of the Group’s strategic priorities
- Progressive dividend policy
- Share buybacks
Continuous organic investment and innovation
The Group expects to invest 6-8% of revenue into organic capital investment programmes and a further 5% of revenue into innovation, part of which is expected to be customer funded.
Acquisitions
The Group has a strong track record of delivering and integrating value enhancing acquisitions. We target profitable cash generative businesses which offer new product or service capabilities that can be cross sold through our existing sales channels and relationships.
Progressive dividend policy
The Board recognises that dividends continue to be an important component of total shareholder returns, balanced against maintaining a strong financial position, and intends to pursue a sustainable and growing dividend policy in the future having regard to the development of the Group.
Share buybacks
Subject to the necessary resolutions being approved by shareholders at the Annual General Meeting in January 2027, the Group will then have the necessary shareholder permissions in place to allow it to consider share buybacks as part of its ongoing capital allocation framework.
Foreign currency exposure
The Group faces currency exposure on its foreign currency transactions and maintains a natural hedge whenever possible to transactional exposure by matching the cash inflows and outflows in the respective currencies. Forward exchange contracts are used to manage transactional exposure where appropriate.
With significant overseas operations, the Group also has exposure to foreign currency translation risk. On a constant currency basis, revenue would have been £1.7m higher than reported and both adjusted and statutory operating profit would have been £0.4m higher than reported, as Sterling strengthened against the US dollar and Yen. Constant currency revenue decreased by 10% and the reduction in operating profit was 16%.
Dividends
On 15 May 2026, an interim dividend was paid of 3.08p per ordinary share (2025: 2.80p).
The Board is recommending a final dividend of 7.00p per share, giving a total dividend for the year of 10.08p (2025: 9.16p) per share, which is an increase of 10% over the prior year.
Outlook
We have entered FY 2027 with no sign of the geopolitical and macroeconomic disruption abating and automotive industry headwinds, particularly in Europe, remain.
In this challenging environment, the Board remains focused on ensuring the Group is well placed to benefit from the long-term structural and regulatory growth opportunities in active safety, autonomous systems and the automation of vehicle applications at the time when market conditions normalise, the timing of which is inherently uncertain.
The Group is geographically diversified, OEM and powertrain agnostic and sells predominantly into research, development and testing functions rather than vehicle production programmes. In the long term, these factors, underpinned by structural and regulatory drivers, support the Group’s future growth prospects.
The Group carries forward £31m (2025: £32m) of orders, providing visibility into FY 2027.
Whilst mindful of short-term macroeconomic disruption and automotive industry headwinds, which have continued into FY 2027, the Board remains confident that the Group will make financial and strategic progress this year and expects to deliver FY 2027 adjusted operating profit in line with current expectations1.
1 The Company is aware of eight analysts publishing independent research. The Company compiled analyst expectations for the year ended 31 August 2027 is for a mean adjusted operating profit of £19.7m.
Directors’ Responsibility Statement on the Annual Report and Accounts
The responsibility statement below has been prepared in connection with the Company’s full annual report and accounts for the year ended 31 August 2026. Certain parts thereof are not included within this announcement.
We confirm to the best of our knowledge:
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1. |
the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and |
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2. |
the strategic report and directors’ report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. |
We consider the annual report and accounts, taken as a whole, are fair, balanced and understandable, and provide the information necessary for shareholders to assess the Group’s position and performance, business model and strategy.
This responsibility statement was approved by the Board of Directors on 9 November 2026 and has been signed on its behalf by Sarah Matthews-DeMers and Richard Elsy CBE.
AB Dynamics plc
Consolidated statement of comprehensive income
For the year ended 31 August 2026
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2026 |
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2025 Re-presented |
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Note |
Adjusted £m |
*Adjustments £m |
Statutory £m |
|
Adjusted £m |
*Adjustments £m |
Statutory £m |
||
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Continuing operations: |
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|
|
|
|
|
|
|
||
|
Revenue |
2 |
91.6 |
- |
91.6 |
|
104.2 |
- |
104.2 |
||
|
Cost of sales |
|
(32.5) |
- |
(32.5) |
|
(37.8) |
- |
(37.8) |
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|
Gross profit |
|
59.1 |
- |
59.1 |
|
66.4 |
- |
66.4 |
||
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General and administrative expenses |
|
(40.8) |
(8.0) |
(48.8) |
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(44.1) |
(5.7) |
(49.8) |
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Operating profit |
|
18.3 |
(8.0) |
10.3 |
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22.3 |
(5.7) |
16.6 |
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Operating profit is analysed as: |
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Before depreciation and amortisation |
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22.4 |
(3.8) |
18.6 |
|
26.2 |
(1.6) |
24.6 |
||
|
Depreciation and amortisation |
|
(4.1) |
(4.2) |
(8.3) |
|
(3.9) |
(4.1) |
(8.0) |
||
|
Operating profit |
|
18.3 |
(8.0) |
10.3 |
|
22.3 |
(5.7) |
16.6 |
||
|
Net finance expense |
|
- |
(0.5) |
(0.5) |
|
(0.4) |
(0.5) |
(0.9) |
||
|
Profit before tax |
|
18.3 |
(8.5) |
9.8 |
|
21.9 |
(6.2) |
15.7 |
||
|
Tax expense |
5 |
(4.3) |
1.5 |
(2.8) |
|
(4.2) |
1.2 |
(3.0) |
||
|
Profit for the year from continuing operations |
|
14.0 |
(7.0) |
7.0 |
|
17.7 |
(5.0) |
12.7 |
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
Discontinued operations: |
|
|
|
|
|
|
|
|
||
|
(Loss) / profit after tax from discontinued operations |
4 |
(0.7) |
(18.3) |
(19.0) |
|
1.0 |
(1.7) |
(0.7) |
||
|
Total profit / (loss) for the year from continuing and discontinued operations |
|
13.3 |
(25.3) |
(12.0) |
|
18.7 |
(6.7) |
12.0 |
||
|
|
|
|
|
|
|
|
|
|
||
|
Other comprehensive income / (expense) |
|
|
|
|
|
|
|
|
||
|
Items that may be reclassified to consolidated income statement: |
|
|
|
|
|
|
|
|
||
|
Exchange difference reclassified to income statement on disposal of foreign operations |
|
- |
1.3 |
1.3 |
|
- |
- |
- |
||
|
Exchange (loss) / gain on foreign currency net investments |
|
(0.2) |
- |
(0.2) |
|
0.1 |
- |
0.1 |
||
|
Total comprehensive income / (expense) for the year |
|
13.1 |
(24.0) |
(10.9) |
|
18.8 |
(6.7) |
12.1 |
||
|
|
|
|
|
|
|
|
|
|
||
|
* See note 3 and note 4 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
2026 |
|
2025 Re-presented |
|
| ||||
|
Earnings per share |
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
| ||||
|
Continuing operations: |
|
Adjusted |
|
Statutory |
|
Adjusted |
|
Statutory |
||
|
Earnings per share – basic (pence) |
6 |
60.9p |
|
30.4p |
|
77.0p |
|
55.2p |
||
|
Earnings per share – diluted (pence) |
6 |
60.3p |
|
30.2p |
|
76.0p |
|
54.5p |
||
|
|
|
|
|
|
|
|
|
|
||
|
Continuing and discontinued operations: |
|
Adjusted |
|
Statutory |
|
Adjusted |
|
Statutory |
||
|
Earnings / (loss) per share – basic (pence) |
6 |
57.8p |
|
(52.2)p |
|
81.3p |
|
52.2p |
||
|
Earnings / (loss) per share – diluted (pence) |
6 |
57.3p |
|
(52.2)p |
|
80.3p |
|
51.5p |
||
|
|
||||||||||
AB Dynamics plc
Consolidated statement of financial position
As at 31 August 2026
|
|
Note |
£m |
|
2025 £m |
|
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Goodwill |
|
39.4 |
|
45.3 |
|
|
Acquired intangible assets |
|
29.9 |
|
29.3 |
|
|
Other intangible assets |
|
2.5 |
|
2.9 |
|
|
Property, plant and equipment |
|
29.3 |
|
29.0 |
|
|
Right-of-use assets |
|
2.3 |
|
3.0 |
|
|
|
|
103.4 |
|
109.5 |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Inventories |
|
11.8 |
|
13.9 |
|
|
Trade and other receivables |
|
15.9 |
|
14.3 |
|
|
Contract assets |
|
4.6 |
|
4.6 |
|
|
Cash and cash equivalents |
8 |
27.1 |
|
44.7 |
|
|
|
|
59.4 |
|
77.5 |
|
|
|
|
|
|
|
|
|
Assets held for sale |
|
1.9 |
|
1.9 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
|
15.4 |
|
19.7 |
|
|
Contract liabilities |
|
7.9 |
|
9.1 |
|
|
Provisions |
11 |
3.5 |
|
- |
|
|
Short-term lease liabilities |
8 |
1.0 |
|
1.1 |
|
|
Deferred and contingent consideration |
12 |
0.2 |
|
6.1 |
|
|
|
|
28.0 |
|
36.0 |
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Deferred tax liabilities |
|
8.7 |
|
9.7 |
|
|
Long-term lease liabilities |
8 |
1.6 |
|
2.2 |
|
|
Deferred and contingent consideration |
12 |
0.4 |
|
1.1 |
|
|
|
|
10.7 |
|
13.0 |
|
|
Net assets |
|
126.0 |
|
139.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Share capital |
|
0.2 |
|
0.2 |
|
|
Share premium |
|
62.9 |
|
62.9 |
|
|
Other reserves |
9 |
1.9 |
|
0.8 |
|
|
Retained earnings |
|
61.0 |
|
76.0 |
|
|
Total equity |
|
126.0 |
|
139.9 |
|
|
|
|
|
|
|
|
AB Dynamics plc
Consolidated statement of changes in equity
For the year ended 31 August 2026
|
|
|
|
|
|
|
|
|
Share capital |
Share premium |
Other reserves |
Retained earnings |
Total equity |
|
|
£m |
£m |
£m |
£m |
£m |
|
At 31 August 2024 |
0.2 |
62.9 |
0.7 |
67.5 |
131.3 |
|
|
|
|
|
|
|
|
Total comprehensive income |
- |
- |
0.1 |
12.0 |
12.1 |
|
Share based payments |
- |
- |
- |
0.7 |
0.7 |
|
Deferred tax on share based payments |
- |
- |
- |
(0.2) |
(0.2) |
|
Dividend paid |
- |
- |
- |
(1.9) |
(1.9) |
|
Purchase of own shares |
- |
- |
- |
(2.1) |
(2.1) |
|
At 31 August 2025 |
0.2 |
62.9 |
0.8 |
76.0 |
139.9 |
|
|
|
|
|
|
|
|
Total comprehensive expense |
- |
- |
1.1 |
(12.0) |
(10.9) |
|
Share based payments |
- |
- |
- |
0.1 |
0.1 |
|
Dividend paid |
- |
- |
- |
(2.1) |
(2.1) |
|
Purchase of own shares |
- |
- |
- |
(1.0) |
(1.0) |
|
At 31 August 2026 |
0.2 |
62.9 |
1.9 |
61.0 |
126.0 |
AB Dynamics plc
Consolidated cash flow statement
For the year ended 31 August 2026
|
|
|
|
|
| |
|
|
|
2026 |
|
2025 Re-presented £m | |
|
|
|
|
|
| |
|
Profit before tax |
|
9.8 |
|
15.7 | |
|
Depreciation and amortisation |
|
8.3 |
|
8.0 | |
|
Finance expense |
|
0.5 |
|
0.9 | |
|
Share based payment |
|
0.1 |
|
0.7 | |
|
Contingent consideration credit |
|
(1.0) |
|
- | |
|
Impairment of fixed assets |
|
2.1 |
|
- | |
|
Operating cash flows before changes in working capital |
|
19.8 |
|
25.3 | |
|
Decrease in inventories |
|
3.0 |
|
1.0 | |
|
Increase in trade and other receivables |
|
(2.3) |
|
(1.7) | |
|
(Decrease) / increase in trade and other payables |
|
(9.3) |
|
1.6 | |
|
Cash flows from continuing operations |
|
11.2 |
|
26.2 | |
|
Discontinued operations: |
|
|
|
| |
|
Operating cash flow from discontinued operations |
|
(0.2) |
|
1.6 | |
|
Cash flows from operations |
|
11.0 |
|
27.8 | |
|
Cash flows from operations are analysed as: |
|
|
|
| |
|
Adjusted cash flows from continuing operations |
|
13.6 |
|
27.8 | |
|
Adjusted cash flows from discontinued operations |
4 |
0.6 |
|
1.6 | |
|
Cash impact of continuing adjusting items |
3 |
(2.4) |
|
(1.6) | |
|
Cash impact of discontinued adjusting items |
4 |
(0.8) |
|
- | |
|
Cash flows from operations |
|
11.0 |
|
27.8 | |
|
Interest received |
|
0.3 |
|
- | |
|
Finance costs paid |
|
(0.2) |
|
(0.2) | |
|
Income tax paid |
|
(1.6) |
|
(2.9) | |
|
Net cash flows from operating activities |
|
9.5 |
|
24.7 | |
|
|
|
|
|
| |
|
Cash flows used in investing activities |
|
|
|
| |
|
Acquisition of businesses net of cash acquired |
|
(15.5) |
|
(3.4) | |
|
Purchase of property, plant and equipment |
|
(6.0) |
|
(2.2) | |
|
Capitalised development costs and purchased software |
|
(1.1) |
|
(0.8) | |
|
Proceeds from sale of property, plant and equipment |
|
0.1 |
|
- | |
|
Investing cash flows used in discontinued operations |
4 |
- |
|
(0.1) | |
|
Net cash used in investing activities |
|
(22.5) |
|
(6.5) | |
|
|
|
|
|
| |
|
Cash flows used in financing activities |
|
|
|
| |
|
Dividends paid |
7 |
(2.1) |
|
(1.9) | |
|
Purchase of own shares |
|
(1.0) |
|
(2.1) | |
|
Repayment of lease liabilities |
|
(1.1) |
|
(0.8) | |
|
Financing cash flows used in discontinued operations |
4 |
(0.2) |
|
(0.5) | |
|
Net cash used in financing activities |
|
(4.4) |
|
(5.3) | |
|
|
|
|
|
| |
|
Net (decrease) / increase in cash and cash equivalents |
|
(17.4) |
|
12.9 | |
|
Cash and cash equivalents at beginning of the year |
|
44.7 |
|
31.8 | |
|
Effects of exchange rate changes |
|
(0.2) |
|
- | |
|
Cash and cash equivalents at end of the year |
|
27.1 |
|
44.7 | |
|
|
|
|
|
| |
|
|
| ||||
AB Dynamics plc
Notes to the consolidated financial statements
For the year ended 31 August 2026
- Basis of preparation
The Company is a public limited company limited by shares and registered in England and Wales with company number 08393914. The Company is domiciled in the United Kingdom and the registered office and principal place of business is Middleton Drive, Bradford on Avon, Wiltshire, BA15 1GB.
The principal activity of the Group is the design, manufacture and supply of advanced testing, simulation and measurement products to the global transport market. The Group’s products and services are used primarily for the development of road vehicles, particularly in the areas of active safety and autonomous systems.
The annual financial statements of the Group are prepared in accordance with UK-adopted International Accounting Standards and applicable law.
The financial information set out above does not constitute the Company’s statutory accounts for the year ended 31 August 2026 or 31 August 2025 but is derived from those accounts. A copy of the statutory accounts for the year ended 31 August 2025 has been delivered to the Registrar of Companies. The auditor’s report on those accounts was unqualified and did not contain any statements under section 498(2) or (3) of the Companies Act 2006.
A number of new standards became applicable for the current reporting period. The application of these amendments has not had any material impact on the disclosures, net assets or results of the Group.
Going concern basis of accounting
The financial information has been prepared under the going concern basis, which assumes that the Group will continue to be able to meet its liabilities as they fall due for the foreseeable future.
The Directors have assessed the principal risks to the going concern assumption, including by modelling a severe but plausible downside scenario, whereby the Group experiences:
- A reduction in demand of 25% over the next two financial years
- A 10% increase in operating costs
- An increase in the cash collection cycle
- An increase in input costs resulting in reduction in gross margins by 12%.
With £24.5m of net cash at 31 August 2026 and a £17.5m undrawn revolving credit facility, in this severe downside scenario, the Group has sufficient headroom to be able to continue to operate for the foreseeable future. The Directors believe that the Group is well placed to manage its financing and other business risks satisfactorily, and have a reasonable expectation that the Group will have adequate resources to continue in operation for at least 12 months from the signing date of the financial statements. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
AB Dynamics plc
Consolidated statement of comprehensive income
For the year ended 31 August 2026
- Segment information
The Group derives revenue from the sale of its advanced measurement, simulation and testing products and services used in assisting the global transport market in the laboratory, on the test track and on-road. The Group has three segments.
The operating segments are based on internal reports about components of the Group, which are regularly reviewed and used by the Board of Directors being the Chief Operating Decision Maker.
|
|
2026 |
|
2025 Re-presented | ||||||||
|
|
Testing Products £m |
Testing Services £m |
Simulation £m |
Unallocated* £m |
Total £m |
|
Testing Products £m |
Testing Services £m |
Simulation £m |
Unallocated* £m |
Total £m |
|
Continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
58.4 |
8.5 |
24.7 |
- |
91.6 |
|
74.3 |
7.5 |
22.4 |
- |
104.2 |
|
Adjusted operating profit |
13.2 |
2.1 |
5.6 |
(2.6) |
18.3 |
|
16.9 |
3.4 |
5.0 |
(3.0) |
22.3 |
|
Operating profit is analysed as: |
|
|
|
|
|
|
|
|
|
|
|
|
Before depreciation and amortisation |
15.8 |
3.0 |
6.1 |
(2.5) |
22.4 |
|
19.4 |
4.2 |
5.5 |
(2.9) |
26.2 |
|
Depreciation and amortisation |
(2.6) |
(0.9) |
(0.5) |
(0.1) |
(4.1) |
|
(2.5) |
(0.8) |
(0.5) |
(0.1) |
(3.9) |
|
Adjusted operating profit |
13.2 |
2.1 |
5.6 |
(2.6) |
18.3 |
|
16.9 |
3.4 |
5.0 |
(3.0) |
22.3 |
|
Amortisation of acquired intangibles |
(0.6) |
(1.3) |
(2.3) |
- |
(4.2) |
|
(0.5) |
(1.3) |
(2.3) |
- |
(4.1) |
|
Adjusting items |
(1.0) |
(0.2) |
- |
(2.6) |
(3.8) |
|
- |
- |
- |
(1.6) |
(1.6) |
|
Operating profit |
11.6 |
0.6 |
3.3 |
(5.2) |
10.3 |
|
16.4 |
2.1 |
2.7 |
(4.6) |
16.6 |
|
Net finance expense |
|
|
|
|
(0.5) |
|
|
|
|
|
(0.9) |
|
Profit before tax |
|
|
|
|
9.8 |
|
|
|
|
|
15.7 |
|
Tax expense |
|
|
|
|
(2.8) |
|
|
|
|
|
(3.0) |
|
Profit for the year from continuing operations |
|
|
|
|
7.0 |
|
|
|
|
|
12.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Loss after tax from discontinued operations |
|
|
|
|
(19.0) |
|
|
|
|
|
(0.7) |
|
Total (loss) / profit for the year from continuing and discontinued operations |
|
|
|
|
(12.0) |
|
|
|
|
|
12.0 |
*Unallocated items are head office costs that cannot be allocated to a business segment.
Analysis of revenue by destination:
|
|
|
|
£m |
|
2025 Re-presented £m |
|
|
|
|
|
|
|
|
Europe (including United Kingdom) |
|
|
26.2 |
|
31.8 |
|
North America |
|
|
28.3 |
|
29.4 |
|
Asia Pacific |
|
|
36.4 |
|
42.8 |
|
Rest of World |
|
|
0.7 |
|
0.2 |
|
|
|
|
91.6 |
|
104.2 |
No customer individually represents more than 10% of total revenue for the year ended 31 August 2026 (2025: One customer individually represented more than 10% of total revenue).
Assets and liabilities by segment are not reported to the Board of Directors, therefore are not used as a key decision-making tool and are not disclosed here.
A disclosure of non-current assets by location is shown below:
|
|
|
|
2026 £m |
|
2025 £m |
|
|
|
|
|
|
|
|
Europe (including United Kingdom) |
|
|
65.5 |
|
68.4 |
|
North America |
|
|
37.2 |
|
27.6 |
|
Asia Pacific |
|
|
0.7 |
|
13.5 |
|
|
|
|
103.4 |
|
109.5 |
|
|
|
|
|
|
|
- Alternative performance measures
In the analysis of the Group’s financial performance and position, operating results and cash flows, alternative performance measures are presented to provide readers with additional information. The principal measures presented are adjusted measures of earnings including adjusted EBITDA, adjusted operating profit, adjusted operating margin, adjusted profit before tax, adjusted earnings per share and adjusted cash flow from operations.
The financial information includes both statutory and adjusted non-GAAP financial measures, the latter of which the Directors believe better reflect the underlying performance of the business and provide a more meaningful comparison of how the business is managed and measured on a day-to-day basis. The Group’s alternative performance measures and KPIs are aligned to the Group’s strategy and together are used to measure the performance of the business and form the basis of the performance measures for remuneration. Adjusted results exclude certain items because if included, these items could distort the understanding of the performance for the year and the comparability between the periods.
Comparatives are provided alongside all current year figures. The term ‘adjusted’ is not defined under IFRS and may not be comparable with similarly titled measures used by other companies. All profit and earnings per share figures in this report relate to underlying business performance (as defined above) unless otherwise stated.
A reconciliation of statutory measures to adjusted measures is provided below:
|
|
|
2026 |
2025 Re-presented |
|||||
|
|
Adjusted |
Adjustments |
Statutory |
Adjusted |
Adjustments |
Statutory | ||
|
|
|
|
|
|
|
| ||
|
EBITDA (£m) |
22.4 |
(3.8) |
18.6 |
26.2 |
(1.6) |
24.6 | ||
|
Operating profit (£m) |
18.3 |
(8.0) |
10.3 |
22.3 |
(5.7) |
16.6 | ||
|
Operating margin |
20.0% |
|
11.2% |
21.4% |
|
15.9% | ||
|
Finance expense (£m) |
- |
(0.5) |
(0.5) |
(0.4) |
(0.5) |
(0.9) | ||
|
Profit before tax (£m) |
18.3 |
(8.5) |
9.8 |
21.9 |
(6.2) |
15.7 | ||
|
Taxation (£m) |
(4.3) |
1.5 |
(2.8) |
(4.2) |
1.2 |
(3.0) | ||
|
Profit after tax (£m) |
14.0 |
(7.0) |
7.0 |
17.7 |
(5.0) |
12.7 | ||
|
Continuing diluted earnings per share (pence) |
60.3 |
|
30.2 |
76.0 |
|
54.5 | ||
|
Cash flows from continuing operations (£m) |
13.6 |
(2.4) |
11.2 |
27.8 |
(1.6) |
26.2 | ||
The adjustments comprise:
|
|
2026 |
2025 Re-presented | ||
|
|
Profit impact £m |
Cash flow impact £m |
Profit impact £m |
Cash flow impact £m |
|
Amortisation of acquired intangibles |
4.2 |
- |
4.1 |
- |
|
Acquisition related costs |
0.9 |
0.6 |
0.5 |
0.5 |
|
Contingent consideration credit |
(1.0) |
- |
- |
- |
|
ERP development costs |
1.0 |
1.0 |
1.1 |
1.1 |
|
Non-cash impairment of fixed assets |
2.1 |
- |
- |
- |
|
CEO and CFO transition costs |
0.8 |
0.8 |
- |
- |
|
Adjustments to operating profit |
8.0 |
2.4 |
5.7 |
1.6 |
|
Acquisition related finance costs |
0.5 |
- |
0.5 |
- |
|
Adjustments to profit before tax |
8.5 |
2.4 |
6.2 |
1.6 |
Amortisation of acquired intangibles
The amortisation relates to the acquisition of eMpulse on 19 August 2026 and the businesses acquired
in previous years; Bolab, VTS, Ansible Motion, DRI and rFpro.
Acquisition related costs
The costs in the current year relate to the acquisition of eMpulse plus the costs of an aborted transaction, and the costs in the prior year relate to the acquisition of Bolab.
Contingent consideration credit
The credit relates to the release of contingent consideration relating to the acquisition of Bolab, net of an adjustment to contingent consideration for VTS.
ERP development costs
These costs relate to the development, configuration and customisation of the Group's new ERP system which is hosted on the cloud.
Non-cash impairment of fixed assets
The cost relates to the non-cash impairment of ABD Solutions’ fixed assets.
CEO and CFO transition costs
The amount includes the external recruitment costs of both the CEO and CFO roles, together with the
one-off costs of restructuring the corporate office team following the change in leadership.
Acquisition related finance costs
Finance costs relate to the unwind of the discount on contingent consideration payable on the
acquisition of Bolab and VTS (2025: Bolab and VTS).
Tax
The tax impact of these adjustments was a credit of £1.5m (2025: £1.2m) relating to amortisation £1.1m (2025: £0.9m), acquisition related costs £nil (2025: £0.1m), ERP development costs £0.2m (2025: £0.2m) and CEO and CFO transition costs £0.2m (2025: £nil).
Discontinued operations
Further details on results of discontinued operations are presented in note 4.
- Results from discontinued operations
In response to the lower than anticipated customer activity in the VadoTech Testing Services business, the Group completed a strategic review of this business during the second half of FY 2026. Following
the conclusion of the review, the Group reached an agreement with the customer to terminate the contract and exit the business. The Group expects this to conclude during the first half of FY 2027. As a result,
the business has been treated as a discontinued operation in FY 2026. Prior to the decision to discontinue the VadoTech Testing Services business, it was presented as part of the Testing Services segment.
|
|
2026 |
|
2025 Re-presented |
|||||||
|
|
Adjusted |
Adjustments |
Statutory |
|
Adjusted |
Adjustments |
Statutory | |||
|
|
£m |
£m |
£m |
|
£m |
£m |
£m | |||
|
Discontinued operations: |
|
|
|
|
|
|
| |||
|
Revenue |
3.4 |
- |
3.4 |
|
10.5 |
- |
10.5 | |||
|
Operating (loss) / profit |
(0.4) |
(19.2) |
(19.6) |
|
1.0 |
(2.1) |
(1.1) | |||
|
Net finance expense |
- |
- |
- |
|
- |
- |
- | |||
|
(Loss) / profit before tax |
(0.4) |
(19.2) |
(19.6) |
|
1.0 |
(2.1) |
(1.1) | |||
|
Tax (expense) / credit |
(0.3) |
0.9 |
0.6 |
|
- |
0.4 |
0.4 | |||
|
(Loss) / profit for the year from discontinued operations |
(0.7) |
(18.3) |
(19.0) |
|
1.0 |
(1.7) |
(0.7) | |||
Cash flows relating to discontinued operations:
|
|
|
2026 |
2025 | ||
|
|
|
£m |
£m | ||
|
Net cash (outflow) / inflow from operating activities |
|
(0.2) |
1.6 | ||
|
Net cash outflow from investing activities |
|
- |
(0.1) | ||
|
Net cash outflow from financing activities |
|
(0.2) |
(0.5) | ||
|
Net cash (outflow) / inflow from discontinued operations |
|
(0.4) |
1.0 | ||
Adjustments to discontinued operations comprise:
|
|
2026 |
2025 Re-presented | ||
|
|
Profit impact £m |
Cash flow impact £m |
Profit impact £m |
Cash flow impact £m |
|
Amortisation of acquired intangibles |
1.1 |
- |
2.1 |
- |
|
Restructuring cost - VadoTech Group |
0.4 |
0.4 |
- |
- |
|
Impairment of VadoTech Group assets |
12.3 |
- |
- |
- |
|
Onerous contract and restructuring provision – VadoTech Group |
4.1 |
0.4 |
- |
- |
|
Exchange differences reclassified to income statement on disposal of foreign operation |
1.3 |
- |
- |
- |
|
Adjustments to profit before tax from discontinued operations |
19.2 |
0.8 |
2.1 |
- |
Amortisation of acquired intangibles
The amortisation relates to the acquisition of VadoTech.
Restructuring cost - VadoTech Group
The amount includes one-off costs of redundancy payments incurred at VadoTech Group, as the Group took mitigating action to reduce its cost base in response to the lower than anticipated volumes under its new contract.
Impairment of VadoTech Group assets
Following the decision to exit VadoTech, a non-cash impairment expense of £12.3m has been recorded, of which £6.3m relates to goodwill, £4.5m to acquired intangible assets and £1.5m to other assets.
Onerous contract and restructuring provision – VadoTech Group
The contract with a European OEM with lower than anticipated volumes is in a loss-making position as a result of the unavoidable costs to meet the obligations under the contract, therefore an onerous contract provision has been recorded, in addition to a restructuring provision in relation to the closure of the business.
Exchange differences reclassified to income statement on disposal of foreign operation
The exchange difference is a reclassification of the exchange difference previously reported in equity which has now been recycled through the consolidated income statement in accordance with accounting standards due to the abandonment of operations.
Tax
The tax impact of these adjustments was as a credit of £0.9m (2025: £0.4m), which primarily relates to the impairment of the acquired intangible assets.
The comparative income statement and cash flow information has been re-presented on the basis of the classification of operations as discontinued:
Consolidated income statement
For the year ended 31 August 2025
|
|
2025 Reported
|
2025 VadoTech discontinued operations
|
2025 Re-presented
| ||||||||
|
|
Adjusted |
Adjustments |
Statutory |
Adjusted |
Adjustments |
Statutory |
Adjusted |
Adjustments |
Statutory | ||
|
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Revenue |
114.7 |
- |
114.7 |
10.5 |
- |
10.5 |
104.2 |
- |
104.2 | ||
|
Cost of sales |
(43.6) |
- |
(43.6) |
(5.8) |
- |
(5.8) |
(37.8) |
- |
(37.8) | ||
|
Gross profit |
71.1 |
- |
71.1 |
4.7 |
- |
4.7 |
66.4 |
- |
66.4 | ||
|
General and administrative expenses |
(47.8) |
(7.8) |
(55.6) |
(3.7) |
(2.1) |
(5.8) |
(44.1) |
(5.7) |
(49.8) | ||
|
Operating profit |
23.3 |
(7.8) |
15.5 |
1.0 |
(2.1) |
(1.1) |
22.3 |
(5.7) |
16.6 | ||
|
Operating profit is analysed as: |
|
|
|
|
|
|
|
|
| ||
|
Before depreciation and amortisation |
27.8 |
(1.6) |
26.2 |
1.6 |
- |
1.6 |
26.2 |
(1.6) |
24.6 | ||
|
Depreciation and amortisation |
(4.5) |
(6.2) |
(10.7) |
(0.6) |
(2.1) |
(2.7) |
(3.9) |
(4.1) |
(8.0) | ||
|
Operating profit |
23.3 |
(7.8) |
15.5 |
1.0 |
(2.1) |
(1.1) |
22.3 |
(5.7) |
16.6 | ||
|
Net finance expense |
(0.4) |
(0.5) |
(0.9) |
- |
- |
- |
(0.4) |
(0.5) |
(0.9) | ||
|
Profit before tax |
22.9 |
(8.3) |
14.6 |
1.0 |
(2.1) |
(1.1) |
21.9 |
(6.2) |
15.7 | ||
|
Tax expense |
(4.2) |
1.6 |
(2.6) |
- |
0.4 |
0.4 |
(4.2) |
1.2 |
(3.0) | ||
|
Profit for the year from continuing operations |
18.7 |
(6.7) |
12.0 |
1.0 |
(1.7) |
(0.7) |
17.7 |
(5.0) |
12.7 | ||
Consolidated cash flow statement
For the year ended 31 August 2025
|
|
|
2025 Reported |
2025 VadoTech Discontinued Operations |
2025 |
|
|
|
£m |
£m |
£m |
|
|
Cash flows from operations are analysed as: |
|
|
|
|
|
Adjusted cash flows from continuing operations |
29.4 |
(1.6) |
27.8 |
|
|
Adjusted cash flows from discontinued operations |
- |
1.6 |
1.6 |
|
|
Cash impact of continuing adjusting items |
(1.6) |
- |
(1.6) |
|
|
Cash impact of discontinued adjusting items |
- |
- |
- |
|
|
Cash flows from operations |
27.8 |
- |
27.8 |
|
|
Finance costs paid |
(0.2) |
- |
(0.2) |
|
|
Income tax paid |
(2.9) |
- |
(2.9) |
|
|
Net cash flows from operating activities |
24.7 |
- |
24.7 |
|
|
Cash flows used in investing activities |
|
|
|
|
|
Acquisition of businesses net of cash acquired |
(3.4) |
- |
(3.4) |
|
|
Purchase of property, plant and equipment |
(2.3) |
0.1 |
(2.2) |
|
|
Capitalised development costs and purchased software |
(0.8) |
- |
(0.8) |
|
|
Investing cash flows used in discontinued operations |
- |
(0.1) |
(0.1) |
|
|
Net cash used in investing activities |
(6.5) |
- |
(6.5) |
|
|
Cash flows used in financing activities |
|
|
|
|
|
Dividends paid |
(1.9) |
- |
(1.9) |
|
|
Purchase of own shares |
(2.1) |
- |
(2.1) |
|
|
Repayment of lease liabilities |
(1.3) |
0.5 |
(0.8) |
|
|
Financing cash flows used in discontinued operations |
- |
(0.5) |
(0.5) |
|
|
Net cash used in financing activities |
(5.3) |
- |
(5.3) |
- Tax
The statutory effective rate of tax for the year of 28.6% (2025: 19.1%) is higher than (2025: lower than) the standard rate of corporation tax in the UK of 25.0% (2025: 25.0%) due to the geographic mix of profits together with expenses not allowable for tax purposes.
The effective rate of tax on the adjusted profit before tax is 23.5% (2025: 19.2%). The increase in the year was due to a change in the geographic mix of profits.
- Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders by the weighted average number of ordinary shares in issue during the year.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all potentially dilutive shares. The Company has one category of potentially dilutive shares, namely share options.
The calculation of earnings per share is based on the following earnings and number of shares:
|
|
|
|
|
2026 |
|
|
|
2025 | |||||||
|
Weighted average number of shares ('m) |
|
|
|
|
|
|
|
| |||||||
|
Basic |
|
|
|
23.0 |
|
|
|
23.0 | |||||||
|
Diluted |
|
|
|
23.2 |
|
|
|
23.3 | |||||||
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
2026 |
|
2025 Re-presented | |||||||||||
|
|
|
£m |
Basic EPS (pence) |
Diluted EPS (pence) |
|
£m |
Basic EPS (pence) |
Diluted EPS (pence) | |||||||
|
|
|
|
|
|
|
|
|
| |||||||
|
Adjusted profit for the year from continuing operations |
|
14.0 |
60.9p |
60.3p |
|
17.7 |
77.0p |
76.0p | |||||||
|
Adjustments |
|
(7.0) |
|
|
|
(5.0) |
|
| |||||||
|
Profit from continuing operations |
|
7.0 |
30.4p |
30.2p |
|
12.7 |
55.2p |
54.5p | |||||||
|
Loss from discontinued operations |
|
(19.0) |
|
|
|
(0.7) |
|
| |||||||
|
Total (loss) / profit after tax from continuing and discontinued operations attributable to owners of the Group |
|
(12.0) |
(52.2p) |
(52.2p) |
|
12.0 |
52.2p |
51.5p | |||||||
- Dividends
|
|
|
|
2026 £m |
|
2025 £m |
|
|
|
|
|
|
|
|
Final 2024 dividend paid of 5.30p per share |
|
|
- |
|
1.2 |
|
Interim 2025 dividend paid of 2.80p per share |
|
|
- |
|
0.7 |
|
Final 2025 dividend paid of 6.36p per share |
|
|
1.5 |
|
- |
|
Interim 2026 dividend paid of 3.08p per share |
|
|
0.6 |
|
- |
|
|
|
|
2.1 |
|
1.9 |
An interim dividend was paid of 3.08p per share totalling £0.6m. The Board has proposed a final dividend in respect of the year ended 31 August 2026 of 7.00p per share totalling £1.6m. If approved, the final dividend will be paid on 29 January 2027 to shareholders on the register on 15 January 2027. The ex-dividend date will be 14 January 2027.
- Net cash
Net cash comprises cash and cash equivalents and lease liabilities.
The reconciliation of cash and cash equivalents to net cash is as follows:
|
|
|
|
2026 £m |
|
2025 £m |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
27.1 |
|
44.7 |
|
Lease liabilities |
|
|
(2.6) |
|
(3.3) |
|
|
|
|
24.5 |
|
41.4 |
The Group has a £17.5m revolving credit facility with National Westminster Bank plc. The facility was renewed on 28 February 2025 and runs until 28 February 2029 with one “one-year” option to extend at the lenders’ discretion.
Since the year end the Group has entered into property leases in respect of the eMpulse facility in Michigan and the new facility for Ansible Motion which will result in an additional lease liability of £4.5m being recognised in the first half of FY 2027.
- Other reserves
|
|
Merger relief reserve £m |
Reconstruction reserve £m |
Translation reserve £m |
Total other reserves £m |
|
At 1 September 2024 |
14.6 |
(11.3) |
(2.6) |
0.7 |
|
Other comprehensive income |
- |
- |
0.1 |
0.1 |
|
At 31 August 2025 |
14.6 |
(11.3) |
(2.5) |
0.8 |
|
Other comprehensive income |
- |
- |
1.1 |
1.1 |
|
At 31 August 2026 |
14.6 |
(11.3) |
(1.4) |
1.9 |
- Foreign exchange
The foreign exchange rates applied during the year were:
|
|
|
2026 |
2025 |
|
Year-end rate |
|
|
|
|
US dollar |
|
1.35 |
1.35 |
|
Euro |
|
1.17 |
1.16 |
|
Yen |
|
217 |
199 |
|
|
|
|
|
|
Average rate |
|
|
|
|
US dollar |
|
1.34 |
1.30 |
|
Euro |
|
1.15 |
1.19 |
|
Yen |
|
210 |
193 |
- Provisions
|
|
Onerous contract
provision |
Restructuring
provision |
Other
provisions |
Total |
|
Charged during the year |
0.7 |
3.2 |
0.2 |
4.1 |
|
Utilised during the year |
(0.1) |
(0.3) |
- |
(0.4) |
|
Foreign exchange movements |
(0.1) |
(0.1) |
- |
(0.2) |
|
At 31 August 2026 |
0.5 |
2.8 |
0.2 |
3.5 |
During the year, the Group recognised an onerous contract provision of £0.7m in relation to VadoTech, where forecast fulfilment costs of its remaining customer contract are expected to exceed the remaining contractual revenues and associated economic benefits. The provision has been measured based on management’s estimate of the unavoidable costs of meeting the contractual obligations, including direct labour, third-party costs and other contract-specific expenditure. The provision is expected to be utilised in the year ending 31 August 2027.
During the year, the Group made the strategic decision to close VadoTech. As a result, a restructuring provision of £3.2m was recognised. The restructuring programme was formally approved and communicated to affected parties during the year, creating a constructive obligation as at the reporting date. The associated cash outflows are expected to occur within the next twelve months. Management has exercised judgement in determining the scope of qualifying costs and estimating the amount required to settle the obligation. The range of possible outcomes is between £nil and £2.8m. There are uncertainties regarding the timing of cash outflows, dependent on the outcome of restructuring activities.
- Acquisitions
eMpulse
On 19 August 2026, the Group acquired 100% of eMpulse Test Systems LLC (eMpulse) for a total consideration of up to $28.5m, including adjustments for working capital. eMpulse designs and supplies advanced servoelectric test systems to the global automotive industry for applications in noise, vibration and harshness (NVH), structural and durability testing, developing a rich suite of technology and IP during the course of its long history in the testing market. The acquisition supports the expansion of the Group’s capabilities in the Testing Products segment and provides further alignment with the structural growth drivers in the sector.
The total purchase consideration including adjustments for working capital was $13.5m (£10.0m), of which $12.7m (£9.4m) was paid on completion and $0.8m (£0.6m) was retained against potential warranties.
Contingent consideration of up to $15.0m (£11.0m) will become payable in cash across three tranches for the three years following completion, subject to meeting certain performance criteria for each year. Contingent consideration has been accounted for as an employee benefit under IAS 19, resulting in a charge of £0.1m in the income statement. This has been classified within acquisition related costs; see note 3 for more details.
The carrying amount of each class of eMpulse’s assets before combination is set out below:
|
|
Fair value
|
Intangible asset adjustments £m |
Provisional fair value |
||
|
Intangible assets |
- |
9.2 |
9.2 |
||
|
Trade and other receivables |
0.8 |
- |
0.8 |
||
|
Inventory |
0.9 |
- |
0.9 |
||
|
Cash |
0.6 |
- |
0.6 |
||
|
Trade and other payables |
(1.9) |
- |
(1.9) |
||
|
Net assets acquired |
0.4 |
9.2 |
9.6 |
||
|
Goodwill arising on acquisition |
|
|
0.4 |
||
|
|
|
|
10.0 |
||
|
|
|
|
|
||
|
Total consideration |
|
|
|
||
|
Cash consideration paid on completion |
|
|
9.4 |
||
|
Retention against warranties |
|
|
0.6 |
||
|
Total consideration |
|
|
10.0 |
||
|
|
|
|
|
||
|
Cash consideration |
| ||||
|
Cash consideration paid on completion |
9.4 | ||||
|
Cash acquired |
(0.6) | ||||
|
Cash flows used in acquisition of businesses |
8.8 | ||||
|
|
| ||||
|
Deferred consideration |
| ||||
|
Retention against warranties |
0.6 | ||||
|
At 31 August 2026 |
0.6 | ||||
|
Current |
0.2 | ||||
|
Non-current |
0.4 | ||||
Goodwill of £0.4m represents the amount paid for future sales growth from both new customers and new products and employee know-how.
No deferred tax has been recognised in relation to the intangible assets as the related amortisation is tax deductible in the US and therefore the tax base of the assets is equal to their fair value at the date of acquisition.
From the date of acquisition to 31 August 2026, the newly acquired business contributed £nil to revenue and £nil to adjusted operating profit. Had the acquisition been completed at the beginning of the period, Group revenue would have been £97.7m and adjusted operating profit would have been £18.9m.
Bolab
On 25 September 2024, the Group acquired 100% of Bolab Systems GmbH. The initial consideration was €3.9m (£3.3m), which comprised €4.5m (£3.8m) of cash consideration paid on completion plus €0.5m (£0.4m) retained against potential warranties, less the working capital adjustment of €1.1m (£0.9m) following completion in line with the closing mechanism agreed in the sale and purchase agreement.
Contingent consideration of up to €6.0m (£5.0m) was potentially payable in cash across two tranches for the two years following completion, subject to meeting certain performance criteria for each year. No consideration was paid at the end of the first performance period and no consideration is expected to be paid in relation to the second performance period. Therefore the liability balance has been adjusted to £nil, with a £1.2m credit to the income statement classified as an exceptional item; see note 3 for more details.
|
Contingent consideration |
£m |
|
At 31 August 2025 |
1.1 |
|
Unwind of discount |
0.1 |
|
Adjustment to contingent consideration |
(1.2) |
|
At 31 August 2026 |
- |
Venshure Test Services
On 2 April 2024, the Group acquired 100% of Venshure Test Services LLC. The acquisition was completed for an initial cash consideration of $13.5m (£10.7m), being $15.0m (£11.9m) initial consideration less $1.5m (£1.1m discounted to present value) retained against potential warranties.
Contingent consideration of up to $15.0m (£11.9m) was potentially payable in cash across two tranches for the two years following completion, subject to meeting certain performance criteria for both years. No consideration was paid at the end of the first performance period. The remaining contingent consideration payable at the end of the second performance period was paid during the year, as presented below. A £0.2m charge to the income statement was recorded on settlement of the contingent consideration liability. This has been classified as an exceptional item; see note 3 for more details.
|
Contingent consideration |
£m |
|
At 31 August 2025 |
6.1 |
|
Unwind of discount |
0.4 |
|
Adjustment to contingent consideration |
0.2 |
|
Cash paid |
(6.7) |
|
At 31 August 2026 |
- |
- Principal risks
The principal risks and uncertainties impacting the Group are described on pages 56 to 58 of our Annual Report 2026. They include: political and economic uncertainty, supply chain, automotive customers, new product innovation, acquisitions, cyber security, sales performance and competitive threat, recruitment and retention of people, manufacturing quality, strategy execution, currency, counterparty and financial controls, sustainability, compliance and internal controls.
- 2026 Annual Report
The Annual Report for the year ended 31 August 2026 will be posted on the Company’s website, www.abdplc.com, on 10 November 2026 and a copy will be posted to shareholders, as required, in advance of the Company’s Annual General Meeting on 14 January 2027.
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