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Advanced materials manufacturer Morgan Advanced Materials has reported a fall in revenue in the first half as growth in healthcare and defence segments was offset by declines in other end-market segments, and said it has accelerated its restructuring programme.
In its half-year results for the six months to 30 June 2020, the company said revenue fell 8.8% to £477.8m on an organic constant currency basis.
It announced group headline operating profit was down 19.8% on an organic constant currency basis to sit at £52.9m.
Morgan Advanced Materials said it had accelerated its restructuring actions to position the business for a period of lower demand, targeting annual cost savings of £20m by 2022 for a cash cost of £30m.
Overall, the restructuring and efficiency programme is expected to result in the closure of eight of its manufacturing sites and the loss of around 550 jobs.
Free cash flow improved to £26.4m to give a net debt to EBITDA position of 1.0 times.
As at 30 June 2020, the group had cash and cash equivalents of £122.7m and undrawn headroom on its revolving credit facility of £116.6m.
Chief executive Pete Raby said: 'Our first-half results demonstrate the improvements we have made to the business in the last four years, the rapid action we have taken to manage our costs and the benefits of our diverse end-market segments.
'While the current market environment is difficult, we are maintaining our long-term investments in research and development, sales and other infrastructure to support the future growth of the business.'
At 10:01am: (LON:MGAM) Morgan Advanced Materials PLC share price was +0.5p at 217.5p