Morgan Advanced Materials lays out growth plans
Morgan Advanced Materials
314.50p
16:45 03/05/24
Morgan Advanced Materials updated the market on its financial goals on Wednesday, as it aimed to surpass organic revenue growth rates through a combination of organic expansion, strategic mergers and acquisitions, and shareholder value creation.
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The FTSE 250 company, which was holding its capital markets day, said in terms of organic revenue growth, it was aiming towards the upper end of its 4% to 7% per annum guidance range over the next four years through strategic investments.
It added that it was looking to achieve an attractive adjusted operating profit margin ranging between 12.5% and 15%, with a clear path towards the higher end of that spectrum.
The company was also aiming to sustain a robust return on invested capital (ROIC) in the range of 17% to 20%.
Additionally, Morgan Advanced Materials said it intended to maintain a prudent leverage range between 1.0x and 1.5x, or up to 2.0x adjusted EBITDA post-acquisition.
That approach would leverage the company's solid balance sheet to fund organic growth initiatives and strategic acquisitions.
At 1137 BST, shares in Morgan Advanced Materials were up 1.51% at 303p.
Reporting by Josh White for Sharecast.com.