Global producer of specialist carbon-based products, Morgan Advanced Materials PLC (LON: MGAM) posted modest revenue growth and an impressive operating profit margin during the first half of 2019.
The Group’s revenues were up 1.0% and headline operating profit margin stood at 12.8%; also an improvement of 70bps organic revenue growth and benefit of efficiency actions.
Morgan Advanced Materials noted that corresponding with the improvement in operating profit, headline earnings per share grew 3.0%.
The Company said that its strategy implementation and expectations of profitability remained on track for the full year.
Morgan Advanced Materials comments
Company Chief Executive Officer, Pete Raby, said,
‘The Group has made good progress during the first half of the year. We are on track with the implementation of our strategy, improving our sales capability, driving new product development and improving operational performance. We have delivered organic constant-currency* revenue growth of 1.0% under more challenging end market conditions and we have expanded our headline operating margin* to 12.8%.
Looking forward into the second half of 2019 there are a number of global headwinds and uncertainties leading to a slowing of industrial markets. Based on our current assessment of business trends and orders, we expect Group revenues to be broadly flat in the second half compared to the prior year. Our expectations of profitability for the full year remain unchanged.’
The Company’s shares have rallied 1.55% or 4.00p to 261.80p a share 25/07/19 16:35 BST. Peel Hunt analysts reiterated their ‘Buy’ stance on Morgan Advanced Materials stock. The Company’s p/e ratio stands at 9.66 and their dividend yield is 4.20%.
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