REG - Morgan Adv.Materials - Q3 Trading Update

Morgan Advanced MaterialsAnnouncement

09/11/2023 07:00

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RNS Number : 8547S  Morgan Advanced Materials PLC  09 November 2023

 

 

Press Release

Morgan Advanced Materials plc

9 November 2023

 

Trading Update

Strong financial position, growth outlook unchanged

Morgan Advanced Materials plc, the global manufacturer of advanced carbon and
ceramic materials for technically demanding applications, announces today its
scheduled trading update for the first nine months to 30 September 2023.

Current Trading

Sales for the nine months to September 2023 were 2.4% higher for the Group, on
an organic constant-currency basis, compared with the same period last year.
Our recovery from the cyber incident we experienced at the start of the year
has progressed as planned.  By business unit, organic constant-currency sales
performance for the nine months to September 2023, compared with the same
period last year, were as follows:

 

 Thermal Ceramics      +0.9%
 Molten Metal Systems  -7.2%
 Electrical Carbon     +6.5%
 Seals and Bearings    -5.4%
 Technical Ceramics    +7.7%

 

Outlook

Our outlook for full year organic revenue growth is unchanged at 2-4%. The
group has continued to benefit from strong growth in its Semiconductor,
Healthcare and Aerospace end-markets, offsetting weakness in European and
China industrial markets.  Seals & Bearings performance was influenced in
part by phasing of armour orders.

Margins have continued to improve sequentially, despite an adverse movement in
FX impacting the second half by circa £3m.

We continue to pursue opportunities to remove cost to ensure we enter 2024
with the right cost structure. Although uncertainty remains around some of our
end markets, looking forward we expect continued margin improvement and good
growth in H1 2024, especially given the cyber incident in the comparative
period. In particular, we expect sustained growth in Semiconductor driven by
demand for Silicon Carbide applications in power electronics.

 

Pete Raby, Chief Executive Officer, said:

"Our business is growing as anticipated, benefitting from our leading,
differentiated positions in selected markets and despite the challenging
environment, with inflation continuing to be more than offset by pricing.

Our Board remains committed to our financial framework. Investment in capacity
for our faster growing segments is accelerating, and we continue to
investigate inorganic investments as well as consider opportunities for
enhanced returns to shareholders."

The full year results are expected to be released on 14 March 2024.  A
Capital Markets Event will be held during Q2 2024, with updates on progress in
our faster growing markets, opportunities for efficiency improvement and
investment plans.

 

For further enquiries:

 Pete Raby         Morgan Advanced Materials plc  01753 837000
 Richard Armitage
 Nina Coad         Brunswick                      0207 404 5959

 

1.        Company-compiled summary of current analysts' forecasts for
adjusted operating profit for 2023 is a range of £120.5 million to £125.0
million.

 

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