StockMarketWire.com - Automotive testing system supplier AB Dynamics booked a 78% rise in annual profit as it benefited from increased development of semi and fully autonomous vehicles.

The company, however, said increased investment in products, people and marketing would weigh on its operating margin in the current year.

Pre-tax profit for the year through August jumped to £7.9m, as revenue rose 51% to £37.1m.

The company declared a final dividend of 2.2p per share, up 10% on-year.

'Our customers remain very active in introducing ever more complex advanced driver assistant system equipment into their vehicles and in the development of semi- and fully-autonomous vehicles,' chairman Tony Best said.

'Despite our very strong growth, order intake has continued to run ahead of sales and this has provided the group with a healthy order book into our new financial year and, as usual, visibility into our third quarter,' Best said.

'Against this pleasing backdrop, our progress continues to require ever greater investment in systems and our operational capability to ensure that we are fully capable of supporting current and future growth.'

'In the coming year, we expect to make further investment in new product development, marketing, service and support, our growing overseas footprint and, of course, our people, whose skills and energy remain so important to our future success.'

'Inevitably this investment will provide some constraint to our operating margin, but the board remains confident that, under the leadership of our new CEO, we are well positioned to deliver a year of solid progress.'

At 2:29pm: [LON:ABDP] AB Dynamics Plc share price was +60p at 1447.5p



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