11th Nov 2014 08:11
LONDON (Alliance News) - Morgan Advanced Materials PLC on Tuesday said it is trading in line with expectations and said it expects its revenue growth in the second half to be higher year-on-year.
The FTSE 250-listed company said trading in the four months to the end of October was "encouraging" and said it was performing in line with its expectations.
Its book-to-bill ratio is at 1.04 for the year to date and its outstanding order book is currently around 6% higher than at the same time last year on a constant currency basis.
Morgan said it expects revenue growth of 3% in the second half, based on the order profile in its book, on both a continuing and constant currency basis against a year earlier.
The group said its Asia/Rest of World business was its strongest trading division in the period year-on-year. Its North American arm saw trading conditions mixed, with growth in Thermal, Electrical and Seals & Bearings businesses, but weaker end-markets in its Technical Ceramics unit.
Its European business has a stable order book overall, but Morgan said there remains little sign of any market improvement there.
Morgan said it is making progress on its restructuring programme, adding it is running the rule over potential bolt-on acquisitions to boost its business. As part of its strategy shift, it will undertake a rationalisation of its carbon materials footprint, taking a charge of GBP16 million. In addition to the other restructuring programmes undertaken by the company, it now expects total charges from the programme to be around GBP22 million for the full year.
The group said construction is underway on its greenfield fibre plant in Abu Dhabi, which will be its lowest-cost fibre plant globally. It is also progressing with the construction of a new greenfield site in South Korea and said its expects its Global Materials Centre of Excellence in the UK to be operational in early 2015.
"Overall, the group is delivering attractive margins and cash flow in challenging market conditions whilst continuing to invest strategically in technology and profitable growth to reinforce Morgan's differentiation and sustainable competitive advantage," said Morgan Chief Executive Officer Mark Robertshaw.
Morgan Advanced shares were higher at the open, up 3.6% to 303.00 pence to be the second best performer in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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