Morgan Advanced Materials (MGAM) Trading Update summary

Trading performance and outlook

• Organic constant currency sales rose 3.8% in the first nine months of 2024, with segment growth led by Performance Carbon (+12.6%) and Technical Ceramics (+3.4%), while Thermal Products declined (-2.3%).

• Full-year constant currency revenue growth is now expected to be around 3%, with adjusted operating profit margin forecast at approximately 11.4% due to weaker market conditions and FX headwinds.

Simplification programme expansion

• The simplification programme has been expanded to target an additional £12m in annualised savings, bringing total expected savings to £22m, with a total exceptional charge of £45m through mid-2026.

• The programme focuses on further cost reductions in supply chain and back office to help restore profit margins to target range in 2025.

• Capital allocation prioritizes near-term cost opportunities over capacity investment in core industrial markets.

Share buy-back and capital allocation

• A share buy-back programme of up to £40m has commenced, reflecting strong balance sheet and prospects, and supplementing regular dividends.

• Acquisition targets remain under consideration, but share buy-back is prioritized in the near term.

• Leverage is expected to remain within the 1.0x to 1.5x net debt to adjusted EBITDA range during 2025.