Morgan Advanced Materials PLC
LSE:MGAM
Morgan Advanced Materials PLC
Morgan Advanced Materials Plc is a materials technology company, which engages in engineering of ceramics, carbon, and composites. The company is headquartered in Windsor, Berkshire and currently employs 7,800 full-time employees. The firm's products are produced within two divisions: Thermal Products division and Carbon and Technical Ceramics division. The Thermal Products division's business units include Thermal Ceramics and Molten Metal Systems. The Carbon and Technical Ceramics division's business units include Electrical Carbon and Technical Ceramics. The Thermal Ceramics business makes advanced ceramic products and systems for thermal insulation. The Molten Metal Systems manufactures crucibles and foundry consumables for non-ferrous metal melting applications. The Electrical Carbon business manufactures a range of electrical carbon brushes and collectors. The Technical Ceramics business engineers’ functional ceramic materials, components and sub-assemblies.
Morgan Advanced Materials Plc is a materials technology company, which engages in engineering of ceramics, carbon, and composites. The company is headquartered in Windsor, Berkshire and currently employs 7,800 full-time employees. The firm's products are produced within two divisions: Thermal Products division and Carbon and Technical Ceramics division. The Thermal Products division's business units include Thermal Ceramics and Molten Metal Systems. The Carbon and Technical Ceramics division's business units include Electrical Carbon and Technical Ceramics. The Thermal Ceramics business makes advanced ceramic products and systems for thermal insulation. The Molten Metal Systems manufactures crucibles and foundry consumables for non-ferrous metal melting applications. The Electrical Carbon business manufactures a range of electrical carbon brushes and collectors. The Technical Ceramics business engineers’ functional ceramic materials, components and sub-assemblies.
Revenue Growth: Organic revenue grew by 10.3% in 2021, with faster-growing markets up 22% and core markets up 7%.
Margins: Operating margins expanded by 300 basis points to 13.1%, the highest in over 20 years, driven by higher pricing and efficiency gains.
Earnings: Earnings per share rose 43% to £0.272.
Cash Generation: Free cash flow was £66 million, reducing net debt to EBITDA to 0.3 times.
ESG Progress: Scope 1 and 2 CO2 emissions were reduced by 17% year-on-year; the group remains committed to a 50% reduction by 2030.
2022 Guidance: Management expects 4% to 7% organic revenue growth and further margin expansion in 2022.
Cost Inflation: Higher input cost inflation is expected in 2022 but management plans to offset it with higher pricing and ongoing improvements.
Portfolio & Strategy: Continued focus on faster-growing market segments and building an M&A pipeline.
