Morgan Advanced Materials plc (LON:MGAM) is predicting that its faster-growing market segments will manage to offset predicted “weak” growth from its industrial and automotive markets in 2020.
In an outlook statement accompanying its full-year results, the FTSE 250-listed engineering firm said it expected the weak markets and “geo-political uncertainties” to carry over from 2019 to 2020, while the company is also facing headwinds from foreign exchange.
READ: Morgan Advanced Materials keeps full-year outlook unchanged
As a result, Morgan expects revenue growth for its current year to be “in the range of flat to modest growth”, with the first half slightly below trend due to the impact of the coronavirus outbreak.
For the year ended 31 December, the company reported a pre-tax profit of £109.7mln, up from £94.9mln in the prior year, while revenues rose 0.8% organically to £1.05bn. The total dividend for the year was maintained at 11p per share.
Chief executive Pete Raby hailed the firm’s “third successive year of organic growth”, adding that the company’s strategy was “continuing to deliver, enhancing our growth and profitability”.
Morgan Advanced shares were down 1.3% at 285.3p in early trading on Monday.