AB Dynamics, which produces robots and simulators used by Alfa Romeo’s Formula 1 team, saw revenues close to £50m in the six-month period to 28 February 2023.
The results, which mean AB has increased revenue by £10m on the previous year, came despite the continuing supply chain disruption and economic uncertainty at the time.
The group has proposed an interim dividend of 1.94p per share, a growth of 10 per cent, following cash generation of £9m.
Its operating margin improved by 80 bps to 15.9 per cent, which it said was a result of “increased levels of activity and the benefits of enhanced performance initiatives.”
Dr James Routh, chief executive officer said: “The Group has delivered a strong financial and operational performance in the first half of the year, with growth in the core business as well as progress in the development of ABD Solutions and in our simulation business with the acquisition of Ansible Motion.
“Against the backdrop of ongoing external challenges in relation to supply chain disruption and wider economic uncertainty, the Group has delivered growth in revenue, operating profit and operating margins. We have also continued to invest in all areas of the business, supporting improved capability as well as our ambitious growth plans.”
Formula 1 and vehicle automation
The group reported a strong performance over the first half of the year was strong, with good conversion of orders to revenue together with improved operational efficiency and effective cost management.
The F1 testing firm also said that long-term structural and regulatory developments in autonomous systems and vehicle automation also contributed to the group’s strong financial performance.
AB has continued its extensive growth over the last decade, it was first listed in 2013 with a £14m market cap, now reaching £395 million total.
Routh added: “Despite the risk of short-term volatility relating to global macroeconomic conditions and timing of order intake, our market drivers both in our core business and in ABD Solutions remain strong.”
Last month it was revealed Formula 1 would not be looking to host a London Grand Prix in the immediate future despite reports of an east London developer including the event in their future plans.
LDN Collective and consultancy firm DAR are said to have included plans for a London Grand Prix as part of their design of a “globally recognised waterfront destination for sports, leisure and entertainment”.