29th Jul 2021 10:51
(Alliance News) - Morgan Advanced Materials PLC on Thursday said it has reinstated its dividend as it swings to an interim profit, despite a fall in revenue.
Shares in Morgan Advanced were up 3.0% to 386.39 pence each in London on Thursday morning.
Pretax profit for the six months ended June 30 was GBP56.2 million, swinging from a loss of GBP25.5 million a year prior.
The Windsor, England-based industrial products manufacturer posted revenue of GBP461.2 million, a fall of 3.5% year-on-year from GBP477.8 million.
Revenue for the Carbon and Technical Ceramics division was GBP263.7 million, representing a decrease of 6.5% from GBP282.1 million. Revenue for the Seals and Bearings global business unit was GBP64.3 million, representing a decrease of 17% compared with GBP77.6 million in the same period in the prior year.
Morgan Advanced Materials declared an interim dividend of 3.2 pence compared to a year before when the firm decided against a dividend in the first half.
The company's restructuring and efficiency programme to simplify Morgan's structure and drive efficiency in operations is ahead of plan, with only one remaining site closure to be completed in the second half of the year. With this acceleration of activity, current year savings are now expected to be GBP20 million, higher than the GBP17 million previously reported.
"With the good performance seen so far this year and good order momentum, we anticipate organic constant-currency revenue growth to be in the range of 7 to 9% for the full year, assuming no significant Covid-19 related operating restrictions. Operating margins are expected to improve, driven by volume leverage and the benefits from our restructuring programme," Morgan Advanced said.
By Amrit Sahota; [email protected]
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