Morgan Advanced Materials revenue up by 4.4% in 2021

2022-03-04

Mar. 4, 2022 - Morgan Advanced Materials today annuances the financial result in 2021. Group revenue was £950.5 million (2020: £910.7 million), an increase of 4.4% on a reported basis compared with 2020. On an organic constant-currency basis revenue increased by 10.3%. Group highlights as below:

- Organic constant-currency revenue growth of 10.3% (report change 4.4%) with 22% from our faster growing markets (excluding one-off solar projects) and 7% from our core markets. 
- Adjusted operating profit margin was 13.1%, up by 300 bps, the highest in more than 20 years. 
- Pricing and continuous improvement efficiency actions continue to more than offset cost inflation. 
- Return on invested capital of 20.5%, up 750 bps on the previous year. 
- Adjusted earnings per share of 27.2p, up 43% on the previous year. 
- Strong cash flow, with cash generated from continuing operations of £135.9 million and free cash flow of £66.2m driving a further reduction in leverage, with net debt / EBITDA (excluding leasing) of 0.3 times. 
- Absolute CO₂e emissions (from scope 1 and 2) reduced by 17% compared with the previous year.

Commenting on the results for Morgan Advanced Materials, Chief Executive Officer, Pete Raby said: 

"I am extremely proud of how our people have worked together this year, looking out for each other and delivering for our customers. We made further progress with the execution of our strategy, strengthening our capabilities and improving the sustainability of our business.

2021 was the second challenging year with the COVID-19 pandemic driving various restrictions on mobility and activity around the world. Demand recovered strongly across the global economy following the sharp slowdown in 2020, and the combination of high demand and the pandemic led to supply chain disruptions and inflation in materials and labour in various parts of our business. Nevertheless, in spite of these challenges, we have made good progress as a business, with further implementation of our strategy and progress against our long-term goals. This resulted in strong growth and saw margins at their highest point in more than 20 years.

I would like to thank our employees for their outstanding commitment and support during the year as they have cared for each other while working diligently to meet the increased demand from our customers."

Russia
We fully support the sanctions that have been put in place against Russia and we have ceased all trading with Russia. In 2021, we had £4.0 million of revenues from Russia, representing less than 0.5% of Group revenues. We have no significant dependency on material supply from Russia or Ukraine.