5th Nov 2021 08:35
(Alliance News) - Morgan Advanced Materials PLC on Friday said it expects annual growth at the top end of forecasts.
The Windsor, England-based industrial products manufacturer also noted margins are on the up, as its restructuring plan bears fruit.
Chief Executive Officer Pete Raby said: "The work we have done building our capabilities over the last four years has positioned us well, allowing us to deliver strong organic growth and expand our margins despite some of the supply chain challenges as the global economy recovers."
Morgan Advanced said sales in the first nine months of 2021 rose 8.9% annually on an organic, constant currency basis.
"Thermal Products division sales were 9.9% higher, with growth in Molten Metal Systems and Thermal Ceramics," Morgan Advanced explained.
"Carbon & Technical Ceramics division sales were 8.1% higher, with growth in Electrical Carbon and Technical Ceramics offsetting a decline in Seals & Bearings."
The FTSE 250 constituent expects organic constant currency growth for the full year at the top end of its 7% to 9% guidance range.
"Operating margins are expected to improve driven by volume leverage, the benefit of our restructuring programme announced last year, and our continuous improvement activities and pricing actions that continue to offset cost inflation," the company added.
Shares in the company were 5.6% higher at 356.19 pence each in London on Friday morning, the best mid-cap performer.
By Eric Cunha; [email protected]
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