Morgan Advanced Materials FY operating profits fall

Morgan Advanced Materials said on Tuesday that adjusted operating profits had fallen in 2023 despite seeing a modest uptick in annual revenues.

Group adjusted operating profits fell 16.6% to £120.3m, as adjusted operating profit margins contracted from 13.6% to 10.8%, offsetting a 2.5% increase in revenue to £1.11bn, with 10.4% from its faster-growing markets. Adjusted earnings per share slipped 26% to 25.0p.

On a statutory level, operating profits crashed 34.7% to £91.9m, while pre-tax profits crashed 40.9% to £77.8m.

Morgan Advanced Materials added that its recovery from a recent cyber security incident was now "substantially complete".

Chief executive Pete Raby said: "Our product differentiation and successful business model have enabled us to deliver solid revenue growth in both our Core and Faster Growing markets, despite the impact of the cyber security incident in the first half and weaker market conditions in the second. We have substantially completed our recovery from the cyber security incident, with our profitability and cash performance in line with our financial framework in the second half."

As of 0945 GMT, Morgan Advanced Materials shares were down 1.12% at 266.0p.

Reporting by Iain Gilbert at Sharecast.com