5th Jun 2020 09:21
(Alliance News) - Morgan Advanced Materials PLC on Friday said trading across its divisions has declined further as it announced measures to cut GBP20 million in annual costs.
The FTSE 250-listed industrial products manufacturer said sales for the 21 weeks to May 24 were 8.8% lower year-on-year on an organic, constant-currency basis. While sales for the 12 weeks to March 21 were 3.2% lower year-on-year, largely driven by shut-downs in China, in April and May, they declined by 20%.
By business, for the 21 weeks to May 24, sales for the Thermal Products division were 15% lower year-on-year and Carbon & Technical Ceramics division sales were down 4.3%.
Morgan Advanced said it has implemented measures to slash costs and preserve liquidity, such as reducing capital expenditure, freezing hiring and temporarily reducing salaries for the executive team and board.
It also is taking steps to improve its structural cost position for the longer-term. The steps are expected to further reduce costs by GBP20 million per annum by 2022, with anticipated one-time cash costs of GBP30 million to achieve this.
Morgan Advanced said it will provide further details in its half-year results, scheduled for July 30.
As at May 24, Morgan Advanced had net debt of GBP177 million with no maturities until 2023. It had cash of GBP95 million and GBP115 million undrawn under its revolving credit facility.
The stock was trading 6.4% higher at 250.00 pence each on Friday morning in London, though still down 21% since the year began.
By Ife Taiwo; [email protected]
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