5th Nov 2026 13:33
(Alliance News) - Morgan Advanced Materials PLC on Thursday said it expects operating profit to be towards the high end of guidance after strong trading, and it said formal talks regarding the possible sale of its Thermal Products division have begun.
In response, shares in the Windsor, England-based manufacturer of specialist thermal, ceramic and carbon products were up 6.0% to 274.50 pence each in London on Thursday afternoon. The stock's intraday high of 281.40p was near its 52-week high of 294.50p.
Morgan Advanced said sales for the first nine months of 2026 were 4.9% higher than the same period last year, on an organic constant currency basis, and excluding the GBP8.9 million phasing benefit from a semiconductor take-or-pay contract.
Strong growth has continued in strategic areas including Aerospace and Energy whilst industrial end-markets have proved resilient, it said.
As a consequence of "strategic progress, operational improvements and continued momentum", Morgan Advanced Materials said it now expects adjusted operating profit for 2026 to be around the upper end of the range of analysts' expectations.
Company compiled analyst expectations for the full-year are for adjusted operating profit in the range GBP100.0 million to GBP105.0 million.
The company said interest in its Thermal Products division has been shown by a "number of potential buyers".
This follows the decision to undertake a strategic review of the business, announced back in March.
"Whilst no decision has been made regarding a disposal, following a period of preparation, the group is now starting to engage formally with potential buyers. Further updates will be provided in due course, as appropriate," it said.
In addition, Morgan Advanced Materials announced the promotion of Elizabeth Knowles, currently Morgan's director of finance, as chief financial officer with effect from January 1.
Richard Armitage will retire as CFO and step down from the board at the end of the year. He will continue to drive the strategic review of Thermal Products and support the CFO transition until the end of March next year, however, the company said.
By Jeremy Cutler, Alliance News reporter
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