UK's Morgan Advanced Materials posts higher H1 revenue, profit
UK's Morgan Advanced Materials posts higher H1 revenue, profit
Overview
UK advanced materials maker's H1 revenue rose 3.1% yr/yr to £518.1 mln
Adjusted EPS for H1 increased 8.1% to 10.7p
Results benefited from £8.9 mln one-off income from semiconductor contract, not repeating in H2
Outlook
Company expects FY organic constant-currency revenue growth of around 2%
Company sees H2 adjusted operating profit margin broadly in line with H1, excluding phasing benefit
Result Drivers
SEMICONDUCTOR CONTRACT PHASING - Results benefited from £8.9 mln one-off income from a semiconductor customer, which will not repeat in H2
TECHNICAL CERAMICS GROWTH - Strong demand in Aerospace, Defence, and Energy markets drove Technical Ceramics revenue and margin gains
BUSINESS SIMPLIFICATION - Margin improvement attributed to ongoing business simplification programme, with expected annualised savings of £27 mln by end-2026
Company press release: ID:nRSF4821Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 518.10 mln |
|
H1 Adjusted EPS |
| GBP 0.107 |
|
H1 Adjusted EBIT Margin |
| 11.20% |
|
H1 Adjusted Operating Profit |
| GBP 57.80 mln |
|
H1 Operating Profit |
| GBP 39.10 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Morgan Advanced Materials PLC is GBp247.50, about 3.1% above its August 5 closing price of GBp240.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Aug 5 - UK's Bodycote gets $2 billion rival approaches from CVC, Veritas Capital
Aug 4 - UK's Synthomer H1 revenue rises, upgrades 2026 outlook
Aug 5 - UK's Zotefoams H1 revenue rises on OKC acquisition; plans restructuring affecting over 100 employees
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)