Morgan Advanced Materials Regulatory News (MGAM)

Press Release

Morgan Advanced Materials plc

06 May 2021

Trading update

Current trading

Sales for the first four months of the year to April 2021 were 2.5% higher for the Group, on an organic constant currency basis, compared to the same period last year.

By business, the organic constant currency trends for the four months to April 2021 compared to the same period last year were as follows:

- Thermal Products division sales were 3.7% higher, with growth in Molten Metal Systems and Thermal Ceramics.

- Carbon & Technical Ceramics division sales were 1.7% higher, with growth in Electrical Carbon and Technical Ceramics offsetting a decline in Seals & Bearings.

With respect to orders, we have seen an improving performance since the position reported at the year end, with average daily order intake ahead of the same period in 2020.

Outlook

With the good performance seen so far this year and positive order trends, we are raising our guidance for the Group's organic constant currency sales growth to be in the range of 5 to 8% for the full year, assuming no significant Covid related operating restrictions. Operating margins are expected to improve driven by volume leverage and the benefit of our restructuring programme announced last year.

Pete Raby, Chief Executive Officer, said:

"We are pleased with the momentum and return to organic sales growth, driving an upgrade in our guidance for the full year. This, together with the benefits from our restructuring actions, is expected to deliver improved profitability for the year."

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This announcement contains inside information. The person responsible for the release of this announcement on behalf of Morgan Advanced Materials plc is Peter Turner, Chief Financial Officer

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