Morgan Advanced Materials reports fall in first half profits

Morgan Advanced Materials posted on Wednesday a 6.1% decline in first half pre-tax profit to £46.2m as the manufacturer of specialist products underwent a restructuring.

Underlying earnings dropped 16.7% to 10.5p in the six months ended 30 June. Underlying operating profit fell 9.8% to £55.1m while the operating profit margin edged down to 11.6% from 13.0% the same period a year ago.

During the period the company incurred restructuring costs of £1.5m due to a “significant rationalisation of the carbon material footprint”.

The costs offset a 1.3% increase in revenue to £475.4, supported by growth in the Thermal Products division. At constant currency, however, revenue dropped 2.4% due to a weaker pound.

“Looking to the balance of the year, we continue to remain cautious in terms of market outlook and are expecting underlying trading levels to be similar to that achieved in the first half and our guidance for underlying trading for the full year remains unchanged,” said chief executive Pete Raby.

“We have planned prudently for this year and will be focused on the execution of our strategy, improving our efficiency and investing in the business to drive future growth."