Formula 1 test firm AB Dynamics nets record £16m profit, with acquisitions at helm of strategy
AB Dynamics, the provider of robots and simulators for Alfa Romeo’s Formula 1 team, reported record profits and revenues in its full-year results.
Group adjusted operating profit reached £16.6m, a 21 per cent increase on 2022. Revenues also surged by 21 per cent, coming in at £100.8m.
The company is rewarding investors with a bumper yearly dividend totalling 6.36p per share, up 20 per cent. Shares rose 1.45 per cent on the news.
Dr James Routh, chief executive officer, said: “The group has delivered a strong performance in FY 2023, demonstrating the benefits of the investment made in recent years in the commercial and operating capability of the business.
“The financial results show further strong progress, with record levels of revenue and operating profit and an improvement in operating margin. In parallel, the group has further strengthened its platform for growth through both organic investments and acquisitions.
He added: “We see significant opportunity in our core markets in automotive, which are supported by long-term structural and regulatory growth drivers, and are continuing to invest in new product development and technology..”
In a statement, AB Dynamics said trading had been “encouraging” in the new year with a solid order book.
Acquisitions have also been a key pillar of the firm’s strategy and it said the “long-term pipeline” remained positive, with more to come.
In September 2022, the group acquired Ansible Motion Limited, a provider of driving simulators used by F1 teams, for £14.4m. The Norwich-based firm delivered £11.8m in revenues and £2.4m of adjusted operating profit last year.