7th Aug 2025 09:54
(Alliance News) - Morgan Advanced Materials PLC on Thursday warned full year profit would be at the bottom end of market expectations reflecting weak and challenging markets.
In response, shares in the Windsor England-based manufacturer of carbon and ceramic materials plunged 13% to 195.20 pence on Thursday in London.
The company reported pretax profit of GBP30.4 million in the six months to June 30, slipping 47% from GBP57.5 million the year before, as revenue declined 8.7% to GBP522.6 million from GBP572.6 million.
"During the first half of this year, the business has delivered a resilient performance against a backdrop of challenging markets," commented Chief Executive Officer Damien Caby.
On an organic basis revenue fell 5.8%, in line with expectations and reflecting ongoing end-market weakness.
In addition, adjusted operating profit declined 19% to GBP58.0 million from GBP71.3 million with
adjusted operating profit margin down 11.1% from 12.5% a year ago, due to the impact of weaker markets, particularly in Semiconductor.
As a result, while the company left full year revenue guidance unchanged, it now expects adjusted operating profit to be around the bottom of the GBP115.6 million to GBP126.3 million consensus range.
This is a result of "weak" market conditions, mix effects and foreign exchange headwinds, and would be down 10% at worst from GBP128.4 million in 2024.
Organic constant currency revenue is expected to decline by a mid single-digit percentage level from 2024's GBP4.55 billion.
Nonetheless, CEO Caby continues to believe the business is "well placed to navigate through this period of global uncertainty."
Morgan Advanced Materials added that it saw early signs of market stabilisation in the first half, but does not expect any market recovery during the second half.
The firm said it remains on track to deliver GBP24 million of annualised savings during 2025 and GBP27 million during 2026.
It expects to commission the new semiconductor capacity during 2026 and will incur one-off startup costs of around GBP7 million as a result.
The dividend was unchanged at 5.4 pence per share.
By Jeremy Cutler, Alliance News reporter
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