Investors' Chronicle AB Dynamics, ‘survivor shares’ & Prefs: The Companies and Markets Show
Apr 25, 2025
In this engaging conversation, James Norrington, a writer for Investors' Chronicle known for his insights on agile companies, joins Christopher Akers to analyze AB Dynamics' impressive half-year results amidst automotive industry challenges. They discuss strategies for identifying 'survivor shares'—companies that thrive in uncertainty. The duo also explores the future of preference shares, particularly in light of Aviva’s recent cancellation decision, revealing whether investors are making the right call amid changing market dynamics.
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AB Dynamics' Strong Diversification
- AB Dynamics showed robust half-year growth with revenue up 11% and pre-tax profit rising over 20%.
- It benefits from diversified revenue streams across Asia, North America, and the UK, mitigating tariff risks.
AB Dynamics' Growth Ambitions
- AB Dynamics aims to double revenue and triple operating profit midterm with 10% organic growth yearly.
- Its operating margin target is 20%, supported by margin improvements already seen.
Automaker Pressures on AB Dynamics
- AB Dynamics faces mixed headwinds as automakers' R&D spending pressures rise during market uncertainty.
- So far, the company is resilient with strong trading, despite automotive sector competitiveness.