The Wiltshire-based concern posts a 37% increase in revenues to £12.2 million and although pre-tax profits are fractionally down year-on-year at £1.9 million, this largely reflects the £315,000 costs associated with joining AIM back in May. Operating profit is ahead 22% at £2.8 million and net cash is north of house broker Charles Stanley's previous estimate of £4.4 million at £6 million.
Since joining the junior market the stock has managed an impressive 83.3% advance. We discussed the AB story in some depth only last month. It sells machines used to measure a vehicle's inertial properties and centre of gravity as well as driving robots and other equipment for risky and arduous track testing of cars.
According to managing director Tim Rogers, AB is in the process of developing a number of new products to follow on from the successful launch of the Guided Soft Crash Test Vehicle and soft Pedestrian Target. Rogers also says the group hopes to make progress towards a planned move to a new factory in 2015 as it seeks to ramp up capacity.
Its laboratory test equipment includes the Suspension Parameter Measurement Machine (SPMM) and Steering System Test Machine (SSTM) and it is currently running a full order book for SPMMs with three machines due to be delivered in the current financial year.
House broker Charles Stanley heralds a 'strong maiden result' but moves from add to hold with a price target of 175p. It comments: 'The shares have performed strongly and it would seem sensible to anticipate a period of consolidation.'