- Automotive testing system manufacturer AB Dynamics said it planned to reinstate its dividend this year as revenue recovers following an easing of lockdowns.

The company said it expected to post revenue for the year through August of £60m-to-£62m, up from the previous year's £58.0m.

The revenue forecast included the effect of pandemic-led disruptions to international customers, which resulted in second-half revenue falling around 20% against a strong comparator period.

Gross margins were anticipated to be ahead of the prior year, benefitting from the transition to a direct sales model in key territories, as well as the positive mix contribution from service contract revenues.

AB Dynamics said customer activity for track testing had restarted, with order intake recovering during the final quarter.

Laboratory testing and simulation, meanwhile, had been impacted by deferment of anticipated orders, as customers delayed capital procurement decisions and motorsport series were suspended.

The company said it remained confident of winning those deferred orders, albeit timing was likely to be dependent on further stabilisation of customer visibility.

'Given the greatly elevated uncertainty at the time of the interim results, the board took the prudent decision to suspend the interim dividend,' AB Dynamics said.

'In line with the group's broader capital allocation policy and reflecting its confidence in the outlook for the business, it is the board's intention to reinstate payment of a dividend at the year end.'

At 2:47pm: [LON:ABDP] AB Dynamics PLC share price was -85p at 1835p

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