Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Morgan Advanced Materials Plc LSE:MGAM London Ordinary Share GB0006027295 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  11.50 5.46% 222.00 219.00 221.50 221.50 209.00 212.00 165,245 16:35:01
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Electronic & Electrical Equipment 1,049.5 109.7 25.7 8.6 634

Morgan Advanced Materials PLC COVID-19 Update

31/03/2020 7:00am

UK Regulatory (RNS & others)


Morgan Advanced Materials (LSE:MGAM)
Historical Stock Chart


From Mar 2020 to May 2020

Click Here for more Morgan Advanced Materials Charts.

TIDMMGAM

RNS Number : 1265I

Morgan Advanced Materials PLC

31 March 2020

Press Release

Morgan Advanced Materials plc

31 March 2020

COVID-19 update

Our employees and customers

The health, safety and wellbeing of our employees is our absolute priority. We are following the varying advice of local governments around the world as the situation develops, and have wound down some operations and closed sites in geographies where that is required. We also continue operations with heightened safety measures where appropriate, and we continue to service customers in key industries such as healthcare, food production, energy and critical infrastructure.

Financial and operational performance

Sales for the 12 weeks to 21 March 2020 were 3.2% lower for the Group, on an organic constant-currency basis, compared to the same period of last year. Excluding China, the group was 0.2% lower than the prior year.

By business, the organic-constant currency trends for the same period compared to prior year are as follows. Within the Carbon & Technical Ceramics division, sales were 0.6% lower than the prior year, with growth in Seals & Bearings partially offsetting a decline in Electrical Carbon, and with Technical Ceramics broadly flat. Sales for the Thermal Products division were 6.7% lower than the prior year.

While we are currently seeing the position improve in China, with all of our factories there reopened, the COVID-19 outbreak has escalated globally. At this point we have six businesses closed across Italy, India and South Africa. The situation remains highly uncertain and it is therefore impossible to predict with any degree of certainty the impact this will have. We are consequently withdrawing our previous guidance for 2020.

Mitigating actions and financial position

While significant uncertainty exists around the impact of COVID-19, we have taken immediate action to reduce costs and improve cash flow and liquidity. These include reductions to capital expenditure other than for vital health, safety and environmental matters, a temporary hiring freeze for all but the most critical roles, and a curtailment of discretionary expenditure. The Board members have agreed to a 30% salary reduction, effective 1 April, for the rest of the financial year.

With respect to our financial position, we have no debt maturities until 2023, and as at 31 December 2019 we had:

   --    net debt excluding lease liabilities of GBP157 million 
   --    a net debt / EBITDA ratio (pre-IFRS16) of 1.0 compared to a covenant not to exceed 3.0 
   --    interest cover (pre-IFRS16) of 17.6 compared to a covenant to be greater than 4.0 

-- cash of GBP68 million and GBP150 million of headroom under our committed GBP200 million revolving credit facility.

Despite the strength of the Group's balance sheet, given the rising level of uncertainty as to how the situation will develop, we are taking all appropriate measures to preserve the Group's cash and liquidity position. Accordingly, the Board has decided to withdraw the proposed 2019 final dividend which was due to be approved at our forthcoming Annual General Meeting. The Board has also decided to suspend the dividend payable on the preference shares. We will review these dividend decisions later in the year once the outlook is clearer.

We have a global diversified business, a clear strategy and a strong balance sheet. We remain focussed on protecting our colleagues, containing our costs and preserving our financial position.

This announcement contains inside information. The person responsible for the release of this announcement on behalf of Morgan Advanced Materials plc is Peter Turner, Chief Financial Officer.

For further enquiries:

 
                 Morgan Advanced Materials 
 Pete Raby        plc                         01753 837 000 
 Peter Turner 
 
 
   Nina Coad       Brunswick                    0207 404 5959 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

UPDFLFSDVDIIVII

(END) Dow Jones Newswires

March 31, 2020 02:00 ET (06:00 GMT)

1 Year Morgan Advanced Materials Chart

1 Year Morgan Advanced Materials Chart

1 Month Morgan Advanced Materials Chart

1 Month Morgan Advanced Materials Chart
ADVFN Advertorial
Your Recent History
LSE
MGAM
Morgan Adv..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20200529 01:42:49