6th Nov 2020 13:45
Morgan Advanced Materials PLC - Windsor, England-based industrial products manufacturer - All plants currently operating with heightened safety measures. Sales for nine months ended September 30 down 9.8% from the year before on an organic constant currency basis, reflecting a 12% organic constant currency decline in the third quarter after a 15% decline in the second. Carbon & Technical Ceramics division sales down 6.3% for the nine months while Thermal Products division sales fall 14%. Average daily order intake improves to year-on-year decline of around 15% in August to October.
Restructuring programme on track, all major plant closures now announced with cost savings set to reduce by GBP20 million per annum by 2022 and an expected cash cost of GBP30 million to deliver savings. September 30 net debt GBP129 million excluding lease liabilities, a GBP19 million improvement in the quarter. Cash and cash equivalents total GBP136 million, with undrawn headroom of GBP119 million and no debt maturities until 2023.
Declares interim dividend of 2.0 pence per share. In terms of outlook, says: "Subject to no significant change in Covid related operating restrictions, for the full year we anticipate the group's organic constant currency sales decline to be in the range of 10%-14%, with a return to organic constant currency sales growth anticipated from the second quarter of 2021."
Current stock price: 252.50 pence
Year-to-date change: down 20%
By Anna Farley; [email protected]
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