Interim Management Statement

RNS Number : 6462G

Morgan Advanced Materials PLC

09 May 2014

 



Press Release

Interim Management Statement 

Morgan Advanced Materials plc

9^th May 2014

Morgan Advanced Materials plc, the advanced materials company, is holding its Annual General Meeting (AGM) today at The Lincoln Centre, 18 Lincoln's Inn Fields, London, WC2A 3ED at 12 noon. In conjunction with the AGM it is today issuing the following "Interim Management Statement" regarding trading from 1^st January 2014 to 8^th May 2014.

Trading conditions in the first four months of the year are in line with management expectations and unchanged from our outlook in the February announcement. As a result our trading expectations for the full year remain unchanged other than the translation impact of exchange rates.

Year-to-date revenue on a constant currency basis and adjusting for business lines that have been sold or exited is broadly flat compared to the first four months of last year. End market conditions still remain mixed but the Group at the end of April had a positive book to bill ratio of 1.08 and an outstanding order book of c.5% above the same time last year at constant currency, with Asia showing the most improved order position.

Across all our geographical regions, North America, Europe and Asia/Rest of World, trading has continued to be mixed. Asia has shown the most improvement in the first four months of this year across most of the countries in the region. In North America, the Thermal, Electrical and Seals and Bearings businesses have all shown improving revenue compared to the comparative four month period last year, offset by softer end markets in the Technical Ceramics businesses. Europe continued to have a stable order book through the first four months of the year but with little sign as yet of general market improvement and the Composites and Defence Systems business having a weak period of trading as major contracts both in the UK and for export are going through bid evaluation and approval processes.

The Group is making good progress on its strategy of investing in differentiation and profitable growth. Since the year end results our investment plans have been continuing at pace, including our new greenfield high temperature insulating fibre plant in the Middle East with a targeted commissioning date in the second half of next year. The new 'Centre of Excellence' for our structural ceramics technology in Stourport, UK will be fully operational by the fourth quarter of this year. In parallel the portfolio reshaping activities on the sale or exit of low margin businesses are progressing well. The Group announced in April the joint venture of our UK Fired Shapes business (c.£3 million of revenue) with Magma Ceramics (c.£7 million of revenue) that creates a larger and more effective combined business in which Morgan has a 35% minority shareholding.

The strength of the balance sheet and financial position also leaves the Group well placed to invest in growth and pursue attractive bolt-on acquisitions in complementary technologies and applications.

Financial position

There were no significant events or transactions during the period which resulted in a material impact on the financial position of the Group.

Since the 2013 year end £sterling has continued to strengthen against the majority of currencies in which the Group trades. If these exchange rates persist through the year the translational effect would reduce our reported revenue by c.5-6% when compared to the previous year's reported results

For further enquiries:

Mark Robertshaw	Morgan Advanced Materials plc	01753 837000
Kevin Dangerfield	Morgan Advanced Materials plc	01753 837000
Mike Smith/Nina Coad	Brunswick	0207 404 5959

This statement constitutes Morgan Advanced Materials plc's Interim Management Statement for the period from 1^st January 2014 to 8^th May 2014 as required by the UK Listing Authority's Disclosure and Transparency Rules.

The Group's next communication will be at our Half Year results presentation on 23^rd July 2014.

 

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