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Manufacturing & engineering

Morgan Advanced Materials maintains FY forecasts after cyber incident dents H1 performance

Morgan Advanced Materials plc (LSE:MGAM) has maintained its outlook for full-year revenue growth of 2-4%, with adjusted operating profit expected to recover in the second half of the year.

The company's CEO, Pete Raby, stated that customer demand remains robust, and the company, which makes carbon and ceramic products, is on track to deliver in line with City predictions.

The current analysts' forecasts for adjusted operating profit at half-year 2023 range from £120.5 million to £131.0 million.

The report showed revenue of £553.9 million for the six months ended 30 June 2023, up 4.5% from the same period in the previous year, but a 31% drop in adjusted operating profit to £50 million.

Raby acknowledged a short-term impact from a cyber incident earlier in the year but emphasised that recovery is progressing well.

The interim dividend was maintained at 5.3p, and the company continues to focus on its faster-growing markets, with a strong balance sheet and net debt to EBITDA ratio of 1.3 times.

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