AB Dynamics says manufacturing facilities still running but some larger orders deferred

AB Dynamics PLC (LON:ABDP) has nixed its interim dividend as it said there has been “no material reduction” in order intake because of coronavirus but that some high-value orders have been deferred.

The testing and measurement equipment maker reported underlying profit before tax of £8.7mln for the six-month period to 29 February, up 36% on the same period a year ago.

Manufacturing facilities continued to operate to enable it to deliver existing and new orders, the group said, with inventory “sufficient” to address the short to medium term requirements.

As well as withholding the interim dividend payment, management has put in place mitigating actions to protect against the effects of the Covid-19 pandemic, controlling discretionary spending and conserving cash but still continuing to invest in new product development and business infrastructure.

Cash at the end of the period was £35.1mln.

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