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The Markets
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Manufacturing & engineering

Morgan Advanced Materials now operating all its plants following closures

Sales for the 21 weeks to May 24 slipped 9% due to shutdowns across its geographies

Morgan Advanced Materials plc (LON:MGAM) said all its plants have reopened following temporary closures after the coronavirus outbreak.

Sales for the 21 weeks to May 24 slipped 9%, with a 3% decline in the first quarter, driven by shutdowns in China, followed by a 19% drop in April and May as lockdowns were implemented in Italy, India, South Africa and Mexico.

READ: Morgan Advanced Materials re-opens in China but shuts elsewhere

The manufacturer has planned unspecified cost-cutting measures to save an extra £20mln per annum over the next two years, with an initial one-off charge of £30mln.

As of May 24, net debt was £177mln, with cash of £95mln and £115mln available under a revolving credit facility.

“Morgan has the benefit of a diverse end market profile, which is enabling it to outperform its more focused peers,” analysts at Peel Hunt commented.

Shares rose 5% to 247.12p on Friday at the opening bell.

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