Full year 2024 financial results

We issued our 2024 full year financial results to the market today.

Our results reflect both the financial and environmental progress at Morgan Advanced Materials during 2024, and highlight our plans and outlook for 2025.

"We have delivered robust organic constant currency revenue growth against a backdrop of increasingly challenging end-markets, with good progress made in our business simplification and efficiency initiatives, continuing our track record of self-help. We remain focused on delivering against our strategic initiatives and expect a return to a 12.5% adjusted operating profit* margin during 2025".

Pete Raby
CEO

We continue to execute on our growth strategy; increasing our exposure to faster growing market segments and targeting investment in our core markets to opportunities that display higher growth potential.

We're focused on our ESG goals.  Our goal is to reduce our scope 1 and 2 CO₂e emissions by 50% (from a 2015 baseline). During 2024 we reduced our emissions by 3% compared to the prior year.

Our gender diversity position was improved over the year with women now making up 34% of our leadership population, against our 2030 target of 40%.

Outlook

Demand in a number of our end-markets is uncertain. Our current outlook for revenue in 2025 is for a mid single-digit organic decline and assumes no recovery in H2.  Our simplification programme has been accelerated given the weaker demand which will underpin a return to a 12.5% margin during 2025, with a broadly similar H1/H2 adjusted operating profit* split.

Demand for semiconductor capacity has been impacted by the slower growth in BEVs, leading to high customer inventory levels in the short term. We have scaled back investment accordingly and now expect to invest c.£60 million in semiconductor capacity (prior estimate £100 million) to deliver incremental revenues of £40 million and adjusted operating profit* of £12 million in 2027 (prior estimate £80 million revenue, £25 million adjusted operating profit*). We remain confident in the longer-term potential in semiconductors and we expect to resume our investment as the market recovers.

Our medium term guidance for overall capital expenditure is now around £90 million in 2025, £65 million in 2026 and £60 million in 2027.

We expect our effective tax rate, excluding specific adjusting items, to be within the 26-28% range.

We remain confident in achieving our medium-term financial framework.

1. Definitions of these non-GAAP measures and reconciliations of the statutory results to the adjusted measures can be found in the ‘Glossary and alternative performance measures’ section, which is included as an appendix to the condensed consolidated financial statements within this announcement. 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.