Morgan Advanced Materials FY lower after LatAm, China closures

Full year pre-tax profits at Morgan Advanced Materials fell as the company reported exceptional charges after closing businesses in Brazil, Venezuela and China.

The company warned of slower growth in the economies of its key industrial markets with “several macro-economic and geopolitical uncertainties which could have a significant impact”.

“However, based on our current assessment of business trends and orders, we expect to deliver modest revenue growth in 2019, with efficiency savings delivering benefits to group headline operating profit.”

Pre-tax profit fell to £94.9m, down from £136.8m on-year. Revenue rose 3.2% to £1.03bn, and adjusted operating profit rose 3.4% to £124.8m.

Group revenue was driven by improvements in the firm's underlying business, more than offsetting the impacts of prior year disposals and foreign exchange headwinds. On an organic constant-currency basis revenue increased by 7.4%, Morgan said.

The dividend remained unchanged at 11p per share.