Morgan Advanced Materials raises FY sales guidance

Manufacturing firm Morgan Advanced Materials said on Thursday that sales in the four months ended 31 March were up 2.5%, on an organic constant currency basis.

Morgan Advanced stated sales in its thermal products division were 3.7% higher year-on-year, with growth in molten metal systems and thermal ceramics, while carbon and technical ceramics division sales were 1.7% higher, with growth in electrical carbon and technical ceramics offsetting a decline in seals and bearings.

In terms of recent orders, Morgan Advanced added that it had seen "an improving performance" since the year-end, with an average daily order intake ahead of the same period in 2020.

As a result of the "good performance" seen so far this year and positive order trends, the FTSE 250-listed firm raised its guidance for organic constant currency sales growth to be in the range of 5-8% for the full year, assuming no significant Covid related operating restrictions.

Operating margins were also expected to improve, driven by volume leverage and benefits stemming from its restructuring programme.

Chief executive Pete Raby said: "We are pleased with the momentum and return to organic sales growth, driving an upgrade in our guidance for the full year. This, together with the benefits from our restructuring actions, is expected to deliver improved profitability for the year."

As of 0900 BST, Morgan Advanced shares were up 7.92% at 327.01p.