Morgan Advanced Materials PLC on Tuesday reported a strong first-half performance leaving the company on track to achieve its full-year revenue growth target.
The Windsor, England-based carbon and ceramic metals manufacturer said in the first half that ended June 30, pretax profit doubled to £57.5 million from £28.4 million the previous year.
Revenue rose 3.4% to £572.6 million from £553.9 million.
Morgan AM raised its interim dividend by 1.9% to 5.4 pence per share from 5.3p.
Operating costs before amortisation and impairments reduced 2.4% to £504.7 million from £517.3 million, and net debt increased 5.0% to £270.5 million from £257.7 million.
Chief Executive Officer Pete Raby said: ‘We are continuing to implement our strategy successfully. Whilst our constant currency revenue growth benefitted from the weaker, cyber impacted, prior year comparator, we have seen underlying revenue growth in both our Core and Faster Growing markets. Our investment in Semiconductor capacity, where we continue to see strong demand and have attractive growth opportunities, along with our simplification programme, are both on-track.’
After initiating a simplification programme at the start of the year, the company is now streamlined into three segments, these being Thermal Products, Performance Carbon, and Technical Ceramics.
It is intended that this change, which forms part of a broader restructuring plan, will deliver annualised cost savings of £10 million by 2025, with an expected implementation cost of approximately £20 million.
Looking ahead, due to possible weaker demand in end-markets, Morgan AM expects revenue in the second half to be in line with the first six months of the year.
Full-year revenue growth at constant-currency is anticipated to be at the top end of the company’s financial framework at 4% to 7%, picking up from 2.5% reported in 2023.
Margins are forecast to remain at around 13%.
Morgan AM shares were down 1.6% to 310.62 pence each in London on Tuesday morning.
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