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Prices & Quotes - UK Markets - Morgan Advanced Materials (MGAM)

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Share Price:
Up 357.50p
Change Today:
3.00p
Market Cap:
1,020.20m
Sector:
Electronic & Electrical Equipment

Healthcare and defence sectors help bolster Morgan Advanced Materials

By Josh White

Date: Thursday 30 Jul 2020

LONDON (ShareCast) - (Sharecast News) - Morgan Advanced Materials reported an 8.8% fall in revenue on an organic, constant currency basis in its first half on Thursday, to 477.8m, as its financial guidance remained suspended.
The FTSE 250 company said group headline operating profit was 19.8% weaker on an organic constant currency basis at 52.9m, while its headline earnings per share were 16.7% lower year-on-year for the six months ended 30 June at 11.5p.

Cash generated from continuing operations totalled 59m for the period, falling from 61.1m year-on-year, while free cash flow before acquisitions, disposals and dividends was 26.4m, rising from 8.4m.

The board declared no interim dividend, having paid 4p per share for the first half of 2019.

On a statutory basis, Morgan swung to an operating loss of 19.7m, from a profit of 63.3m a year earlier, with its continuing losses per share coming in at 9.9p, compared to earnings of 12.4p per share a year ago.

It added that the maintenance of its group headline operating profit margin at 11.1% demonstrated the impact of its "rapid" cost management actions.

Morgan said the improvement in free cash flow gave a net debt-to-EBITDA position of 1.0x, excluding lease liabilities, which the board said reflected the action it had taken to maintain good liquidity.

As at 30 June, the group had cash and cash equivalents of 122.7m, and undrawn headroom on its revolving credit facility of 116.6m.

Restructuring actions were accelerated in the first half, in a bid to position the business for a period of lower demand, targeting annual cost savings of 20m by 2022, for a cash cost of 30m.

Looking ahead, the board said the market outlook for the rest of the year remained uncertain, given the ongoing impact of the Covid-19 pandemic, and its impact on economic demand.

Daily order intake in April and May was down around 30% compared to the prior year, but during June and July the company said that position had improved "slightly" to a 20% decline in order intake year-on-year.

Based on those trends, it said it was expecting a continued revenue decline in the third quarter of 2020 compared to the prior year.

It said it would continue to actively manage the cost base of the business, to mitigate the impact of the revenue decline on the group's profits.

Morgan said that, given the "considerable uncertainty" around the outlook for the Covid-19 coronavirus, combined with the relatively short-term visibility of its order book, it was not in a position to provide guidance for the full-year.

At 0826 BST, shares in Morgan Advanced Materials were up 1.17% at 219.54p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

MGAM Market Data

Currency UK Pounds
Price 357.50p
Change Today 3.00p
52 Week High 359.00p
52 Week Low 210.00p
Volume 983,349
Shares Issued 285.37m
Market Cap 1,020.20m

Performance Indicators

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What The Brokers Say

Strong Buy 4
Buy 0
Neutral 4
Sell 0
Strong Sell 0
Total 8
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

MGAM Dividends

  Latest Previous
  Final Interim
Ex-Div 29-Apr-21 19-Nov-20
Paid 21-May-21 11-Dec-20
Amount 3.50p 2.00p

Trades for 11-Jun-2021

Time Volume / Share Price
16:37 250,000 @ 355.04p
16:36 250,000 @ 355.04p
16:35 50,000 @ 357.37p
16:35 30,792 @ 357.50p
16:35 149,525 @ 357.50p

MGAM Key Personnel

CEO Pete Raby
CFO Peter Turner