Morgan Advanced Materials Regulatory News (MGAM)

Press Release

Trading update

Morgan Advanced Materials plc

7 November 2016

Morgan Advanced Materials plc, the advanced materials company, is today issuing the following trading update.

Trading conditions in the period since the half year are in line with management expectations and unchanged overall from the outlook in our July trading statement.

Year-to-date sales, on a constant currency basis, were 1.9% lower for the Group than when compared to the first nine months of last year. Sales for the Thermal Products division were 0.3% lower than the prior year, with growth in Asia and Europe offset by a decline in the Americas. For the Carbon and Technical Ceramics division, sales were 3.6% lower than last year, with declines across all of the business units. Sales in Composites & Defence Systems were at a similar level to the prior year. For the group as a whole, the book to bill ratio for the first nine months was 1.00.

Looking forward, our expectations for the full year remain unchanged.

Financial position

As announced on 28 October, the Group has raised new debt of $112m and €60m with the completion of a US private placement. The new debt extends the group's debt maturity profile and will be used for repayment of existing indebtedness and other general corporate purposes. There have been no other significant events or transactions during the period from 30 June 2016 to 6 November 2016 which have resulted in a material impact on the financial position of the Group.

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The next scheduled update is the Group's Full Year results presentation on 23 February 2017.