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Morgan Advanced Materials 21-week Sales Down 8.8% On Organic CC Basis

Morgan Advanced Materials plc (MGAM.L) reported that its Group sales for the 21 weeks from 1 January to 24 May 2020 declined 8.8% from last year, on an organic constant-currency basis.

It reflected a 3.2% decline in the first quarter, largely driven by shut-downs in China, followed by a decline of 19.5% in April and May, as the impact of the COVID-19 pandemic was felt more widely across the rest of the Group.

On an organic constant-currency basis, Carbon & Technical Ceramics division sales for the period were 4.3% lower, with growth in Seals & Bearings partially offsetting declines in Electrical Carbon and Technical Ceramics.

Thermal Products division sales for the period decreased 14.6% at organic constant-currency basis.

The company said it is taking steps to improve the structural cost position of the Group for the longer term. The action will further reduce costs by 20 million pounds per annum by 2022, with an anticipated cash cost of 30 million pounds to deliver these savings.

The company noted that it has no debt maturities until 2023, and as at 24 May 2020 it had net debt (excluding lease liabilities) of 177 million pounds, with cash of 95 million pounds and undrawn headroom of 115 million pounds under revolving credit facility.

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