Morgan Advanced Materials

Morgan Advanced Materials saw revenue rise 9.2% to £518.9m in its first half, it reported on Friday, although the improvement was only 0.2% on an organic constant currency basis.

The FTSE 250 firm’s group headline operating profit for the six months to 30 June was 11.8% higher year-on-year, or 1.5% on an organic constant currency basis.

Group headline operating profit margin was 11.9%, compared to 11.6% in the first half of 2016, with headline earnings per share up 10.5% at 11.6p.

The company’s interim dividend per share was precisely in line with last year at 4p.

Cash flow from operations rose 8.6% to £51.6m, with free cash flow before acquisitions, disposals and dividends rising to £16.8m from £11.1m.

Morgan’s statutory results saw revenue rise to £58m from £55.6m, with profit before tax practically doubling to £92.3m from £46.2m, and basic earnings per share sitting at 27p from 10.2p.

“We have delivered in line with our expectations in the first half of the year with improved momentum driving organic growth in the second quarter,” said chief executive Pete Raby.

Operationally, the company’s board said it saw “improving momentum” in the business, and was on track to make the planned £6m incremental increase in research and development, and sales capacity.

During the period, the company increased technology investment to 3.2% of sales, and reiterated its goal to increase it in the full-year against its three-to-four year goal of reaching R&D investment of 4% of sales.

Morgan said its operational improvement activity was ahead of plan at the half-year, delivering £3.5m of its £6m target for the full-year.

Having completed the global mapping of its sales resources in 2016, the company said it was now realigning the sales teams to ensure it had the “right people” in the “right roles”.

It said it was using pilot projects to establish the optimal organisational structures, sales processes and incentives for the business.

“We are making good progress with the implementation of our strategy. Operational improvements are ahead of plan and providing the funds for reinvestment in research and development, sales and infrastructure,” Pete Raby added.