AB Dynamics Shares Crash 30% on Guidance Cut, China Exit

AB Dynamics (LON: ABDP), the AIM-listed maker of vehicle testing and simulation equipment for carmakers, saw its shares fall by as much as 30% earlier today after warning that Middle East-linked customer delays would hit revenue and confirming it will exit its loss-making Chinese testing arm.

The stock fell continuously through the session from a previous close of 1066p to an intraday low of 751p, a drop of 29.55%. That low sits below the bottom of its 52-week range of 956p to 1488.24p.

In an update published earlier today, AB Dynamics cut its FY2026 revenue guidance from continuing operations to £90m-£95m for the year ending 31 August, citing Middle East-linked disruption to automotive development programmes and slower customer order conversion, turning inquiries into confirmed orders. The company also confirmed it will exit VadoTech, its Chinese on-road vehicle testing subsidiary, terminating the contract during the first half of FY2027. VadoTech will now be treated as a discontinued operation, cutting reported FY2026 revenue by about £4m.

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The scale of the retreat stands out against FY2025 group revenue of £114.7m, and follows a first-half net loss of £12.2m reported for the six months to February, a reversal from a year-earlier profit. VadoTech generated £10.5m of revenue in restated FY2025 figures while dragging adjusted operating profit down by around £1.0m, explaining why the group is walking away from it. AB Dynamics said customer confidence weakened in the second half, with logistics problems particularly affecting European carmakers amid potential restructuring. The company maintains net cash of £41.7m and is still targeting a 20% adjusted operating margin.

The reaction reflects how a guidance cut at a company with concentrated automotive-supplier revenue can turn into a violent one-day repricing on AIM, where trading liquidity is thinner than on the main market.

Shares had already been trading below both their 50-day and 200-day moving averages before today’s update, having spent months under pressure ahead of the guidance cut.