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Highlights

  • Morgan Advanced Materials reported 3.4% YoY revenue growth in 1HFY24, driven by higher demand in the carbon segment.
  • Adjusted EPS in the first half increased 48.5% YoY, while the dividend per share rose by 1.9% YoY.
  • Company expects full-year revenue growth to hit 4-7% with margin stability around 12.5%.

Morgan Advanced Materials PLC (LSE:MGAM) is an FTSE 250-listed company specialising in advanced carbon and ceramic materials. Its Thermal Products segment focuses on thermal ceramics and molten metal systems, providing solutions for various industrial applications.

1HFY24 Financial Performance

The company’s revenue for the first half of the financial year 2024 (1HFY24) was GBP 572.60 million, up 3.4% from 1HFY23. The carbon segment contributed to revenue growth with a 13.7% increase, fueled by strong demand in semiconductors and core industrial markets.

However, the thermal products segment saw a 4.3% YoY decline, mainly due to foreign exchange impacts. Profitability improved due to effective strategic pricing and cost management. Adjusted EPS rose 48.5% to 14.70 pence in 1HFY24. The company also increased its dividend per share by 1.9% YoY, to 5.40 pence.

Recent Business Update

Morgan Advanced Materials has announced that its performance for the full year of 2024 met expectations, achieving a 3.6% organic revenue growth in constant currency. Both adjusted operating profit and the ratio of net debt to adjusted EBITDA were in line with projections. The company’s simplification initiative is progressing as planned, and by December, the share buy-back program had successfully repurchased GBP 4.7 million worth of shares.

Company Outlook

Morgan Advanced Materials remains confident despite cautious demand in some end-markets. It expects full-year constant-currency revenue growth to reach the top end of its 4-7% forecast. The simplification program has made great progress. The company anticipates its full-year margin to stay around 12.5%.

Top 10 Shareholders

The top 10 shareholders of Morgan together account for approximately 52.58% of the total shareholding. Leading the group is Columbia Threadneedle Investments (UK), with around 8.54% of the shares. BlackRock Investment Management (UK) Ltd. follows closely with a shareholding of about 5.67%, as shown in the chart below.

Stock Performance

The stock price of MGAM has increased by approximately 4.93% over the past three months but has fallen around 16.09% in the last six months. Its 52-week range is between GBX 231.81 and GBX 347.00, and it is currently trading below the average of this range. As of 23 January 2025, the stock closed at GBX 266.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 23 January 2025. The reference data in this report has been partly sourced from EODHD/Others.