Morgan Advanced Materials PLC has released its full-year results for the period ending 31 December 2023. The company reported revenue of £1,114.7 million, with organic constant-currency revenue growth of 2.5%. The adjusted operating profit was £120.3 million, with a margin of 10.8% and a return on invested capital of 17.6%. The company also saw a recovery from a cyber security incident and generated £126.3 million in cash from continued operations.
Morgan Advanced Materials PLC announced a simplification of its group structure alongside an additional cost reduction program. The company plans to manage its operations through three distinct segments: Thermal Products, Performance Carbon, and Technical Ceramics. This restructuring plan is expected to deliver £10 million of annualized savings by 2025, with an expected implementation cost of around £20 million.
The company also announced an acceleration of its semiconductor capacity investment, increasing its investment to £100 million by 2026. This investment is expected to drive long-term growth and strong returns, transitioning the group further towards faster-growing markets.
Pete Raby, the Chief Executive Officer, commented on the results, stating, "Our product differentiation and successful business model have enabled us to deliver solid revenue growth in both our Core and Faster Growing markets, despite the impact of the cyber security incident in the first half and weaker market conditions in the second."
The company's growth targets are underpinned by the development of leading differentiated positions in attractive growth markets delivered through deep process and material know-how in its manufacturing sites. In addition to the savings from the simplification of its structure, the company is progressing with the next phase of its site rationalization program, with four factories identified for closure.