Contract Win

RNS Number : 4164L

AB Dynamics PLC

12 August 2013

 



12 August 2013

AB Dynamics plc
("ABD" or the "Group" )

Contract win and increased manufacturing capacity

AB Dynamics plc (AIM: ABDP), the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry, is pleased to announce that it has received an order from an existing overseas customer for a high specification Suspension Parameter Measurement Machine ("SPMM").  The Board is also pleased to announce the completion of an annex to its factory in Bradford on Avon, providing the Group with a 20% increase in manufacturing capacity.

The SPMM order, placed by a prominent Japanese car manufacturer is valued at £1.7 million, with delivery expected in March 2015. Most of the value of the contract is expected to be recognised in the Company's financial year commencing 1 September 2014. The contract provides ABD with further future revenue visibility and highlights the motor industry's continued demand for its SPMMs.

The new annex significantly extends capacity and improves the utilisation of space in the existing factory.  The annex also provides ABD with an up-to-date facility for the Company's electrical builds and a dedicated assembly area for its latest Guided Soft Crash Test Vehicles. ABD is continuing to progress its development plans for a factory nearby in Bradford on Avon. 

Tim Rogers, Managing Director of AB Dynamics commented:

"The new SPMM provides excellent extended visibility to the Group's future revenues. We are very pleased to have maintained the relationship with this manufacturer, underlying the strength of our position in the global automotive industry.

"In line with our stated growth strategy, and as outlined in our Admission Document, the annex will enable us to extend our manufacturing capacity as well as providing us with improved facilities in which to develop our market-leading products, until we move into our new facility which is expected to be in H2 2015."

For further information please contact:

AB Dynamics plc Tim Rogers, Managing Director Tony Best, Chairman	01225 860 200
Cairn Financial Advisers LLP (Nomad) Tony Rawlinson Avi Robinson	0207 148 7900
Charles Stanley Securities Limited (Broker) Dugald J. Carlean Karri Vuori	0207 149 6000
Newgate Threadneedle (PR) Josh Royston Heather Armstrong Caroline Evans-Jones	0207 653 9850

Overview of AB Dynamics plc

ABD is a leading designer, manufacturer and provider of advanced testing and measurement products for vehicle suspension, brakes and steering to the global automotive research and development sector. The Group was founded in 1982 and listed on AIM in May 2013. The Group is headquartered in Bradford on Avon employing approximately 50 staff. ABD currently supplies seventeen of the top twenty automotive manufacturers, including Honda, Toyota, Ford and Volkswagen, who routinely use the Group's products to test vehicle safety and dynamics.

 

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