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ABDP

Ab Dynamics PLC

Automobiles and Parts First-pass screen £223m
540/1000 Overall fit
AI beneficiary 35% 60
Operating leverage 25% 65
Valuation 25% 30
Downside protection 15% 60

First-pass take

AB Dynamics supplies essential testing and simulation infrastructure for ADAS/autonomous vehicle development. Modest revenue growth (3%) but strong 15% profit growth with improving margins (20.3%), underpinned by operational improvements and 45% recurring revenue base. Strong balance sheet with £41.4m net cash. However, exposure to automotive capex cycles, near-term macro disruption, and lack of valuation data limit attractiveness.

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