21st Apr 2006 11:02
Morgan Crucible Co PLC21 April 2006 21st April 2006 CHAIRMAN'S AGM STATEMENT 2005 was a transformational year for Morgan Crucible with the Group beingapproximately one year ahead of our stated target to achieve double-digitmargins by the end of 2006. We have improved the earnings quality of the Groupby positioning ourselves in less commoditised markets with a greater focus ondifferentiated, value-added products. This shift in our portfolio mix, combinedwith a continuing focus on rigorous cost management, supports our new goal oftargeting mid-teen operating profit margins for the Group over the medium term. The disposal of the Magnetics division, completed towards the end of 2005, hascontributed to the transformation of the balance sheet. The proceeds from thissale have enabled us to eliminate bank debt and substantially reduce the Group'spension deficit. This balance sheet strength leaves us well placed to targetbolt-on acquisitions to support our core businesses in their pursuit ofprofitable growth. I am pleased to report that earlier this month wesuccessfully completed the first bolt-on acquisition with the acquisition of theceramic fibres business of Cookson Group plc. Trading and market conditions in 2006 year to date remain generally consistentwith those experienced in the second half of 2005. North America and Asia remainstrong and Europe, although weaker, is certainly strengthening. Despite inputcost increases for energy and raw materials the Board expects all businesses toshow continuing improvement in operating margins. The strategy and itsimplementation has worked well to date and there is still more upside to pursue.As a result, the Board is confident about Morgan's prospects for the full year. Morgan Crucible delivered an excellent set of results in 2005. Our focus onshareholder value has resulted in top line growth, improving margins andpositive cash flow thereby enabling us to recommend payment of a dividend. Wehave seen another year of strong financial momentum and we are now well placedwithin our chosen markets, supported by a strong financial base, to achieve ouraim of superior shareholder return. I would like to thank all our employees fortheir hard work and achievements in 2005, and our investors for their continuedsupport. I would particularly like to thank Warren Knowlton for the leadershiphe has shown in transforming Morgan Crucible since assuming the Chief Executiverole in December 2002; we wish him well when he retires in the third quarter andwe are confident that Mark Robertshaw, who will succeed Warren, will carry onthe good progress. Enquiries: The Morgan Crucible Company plc 01753 837000Victoria Gould Finsbury 020 7251 3801Robin Walker This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Morgan Advanced Materials