Morgan Advanced Materials
2024 at Morgan
Measuring our progress
We measure our success by tracking a number of key performance indicators (KPIs) that reflect our strategic execution priorities and growth drivers.
Financial KPIs
(statutory and adjusted performance KPIs)
Organic constant-currency revenue growth* (%)
Purpose
Organic constant-currency growth is a non-statutory measure used by the Board and Management to monitor the Group’s performance. It provides an important indicator of organic like-for-like growth of the Group reporting businesses over time. Organic constant-currency growth eliminates the impact of acquisitions, divestments and foreign currency variances.
Performance
Revenue grew by 3.7% on an organic constant currency basis. Growth rates in 2024 were higher than in 2023.
Adjusted operating profit margin* (%)
Purpose
Adjusted operating profit margin is a non-statutory measure that the Board and Management monitor to assess the underlying trading profitability of the Group, excluding the impact of specific adjusting items and the amortisation of intangible assets.
Performance
Adjusted operating profit margin for 2024 has increased by 90 bps to 11.7%, reflecting a full recovery from the cyber incident and a continued focus on cost management and operational simplification throughout the Group. Margins for the year were lower than our financial framework guidance, reflecting challenging market conditions in the second half of the year.
Adjusted EPS* (p)
Purpose
Adjusted EPS is a non-statutory measure used to assess the Group’s underlying financial performance.
Performance
Adjusted EPS has increased to 25.5 pence during 2024, reflecting the increase in adjusted operating profit.
Throughout the Annual Report, including the Strategic Report, adjusted measures are used to describe the Group’s financial performance. These adjusted measures are not recognised under International Financial Reporting Standards (IFRS) as adopted by the UK, or other generally accepted accounting principles (GAAP). These measures are shown because the Directors consider they provide useful information to shareholders, including additional insight into ongoing trading and year-on-year comparisons. These non-GAAP measures should be viewed as complementary to, not replacements for, the comparable GAAP measures. Throughout this Report these non-GAAP measures are clearly identified by an asterisk (*) where they appear in text, and by a footnote where they appear in tables and charts. Definitions of these non-GAAP measures and reconciliations to the equivalent statutory measure can be found in the ‘Glossary’ and ‘Alternative performance measures’ section on pages 201 to 205.
Non-financial KPIs
CO2e scope 1 and 2 emissions (metric tonnes)
Purpose
Our sustainability agenda includes actions to reduce greenhouse gas (GHG) emissions and combat climate change. In March 2021, we announced a commitment to reduce absolute GHG emissions (scope 1 and 2) by 50% (against 2015 levels) by 2030.
Total water withdrawal (million m3)
Purpose
By 2030, we will reduce our total withdrawal of water by 30% (against our 2015 baseline), and we are implementing water sustainability projects globally to achieve this goal.
Lost-time accident
(LTA) rate1
Purpose
We are working towards our aspiration of ‘zero harm’ to all our employees. We are committed to conducting all our activities
in a manner that builds a caring safety culture and develops a world-class safety system that supports this effort.
1. A lost-time accident (LTA) is defined as an accident or work-related illness which results in one or more days of lost-time. Calculated as total number of lost-time accidents in the year, multiplied by 100,000 hours worked, divided by total number of hours worked.
At Morgan Advanced Materials we are committed to a sustainable future. In March 2021, we set stretching goals across a number of environmental, social and governance areas. Learn more about our ESG KPIs in our full report.
