LONDON (Alliance News) - AB Dynamics PLC Tuesday said profits in its recently-ended financial year are likely to exceed market forecasts, after the profitability and costs of completing some contracts came in lower than it had previously expected.
The maker of testing and measurement products for the auto industry has said on September 10 that its results for the year to August 31 were likely to be in line with market forecasts.
"The board confirms that sales remain broadly in line with forecast but the profitability on a number of large contracts shipped in August exceeded the estimates we made at that time. Following the normal month end accounting process, it has been shown that the subsequent costs of completion are lower than previously estimated," it said in its statement Tuesday.
"Accordingly, the board is now pleased to report that profits for the year as a whole are likely to exceed market forecast," it added.
Charles Stanley Securities is forecasting that AB Dynamics will report a pretax profit of GBP2.3 million for the last financial year, according to data from Morningstar.
AB Dynamics shares were up 6.7% at 175.00 pence Tuesday afternoon.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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AB Dynamics (ABDP)