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Morgan Advanced Materials will reinstate its interim dividend for 2020 of 2p per share following improved order trajectory since the half year, according to its third quarter trading update.
With the sequential improvement in demand together with actions taken across the business, the group said it is in a 'strong financial position'. The dividend will be payable on 11 December 2020 to shareholders on the register at the close of trading on 20 November 2020.
However, sales for the nine months to 30 September 2020 were 9.8% lower for the Group, on an organic constant currency basis, compared to the same period last year. This reflects a 11.5% organic constant currency decline in the third quarter, an improvement from the 15.4% decline seen in the second quarter.
As at 30 September 2020 the company net debt (excluding lease liabilities) of £129 million - a £19 million improvement during the third quarter. It has cash and cash equivalents of £136 million and undrawn headroom of £119 million under its revolving credit facility, and no debt maturities until 2023.
The restructuring programme announced in July is on track, with all of the major plant closures now announced, and key activities underway to structurally improve the efficiency of our businesses. This will reduce costs by £20 million per annum by 2022, with an anticipated cash cost of £30 million to deliver these savings.