Strategic portfolio simplification and ERP transformation drive operational excellence at Morgan Advanced Materials

Morgan Advanced Materials is executing one of the most comprehensive operational transformation programmes in our recent history. This initiative is materially strengthening margins, accelerating decision making and increasing scalability for long‑term growth. Investors watching for operational discipline and streamlined execution will find compelling evidence of progress in the 2025 results.

A central element of the transformation is the business simplification programme, which has so far delivered £24 million in cumulative margin benefits at a cost of £35 million, targeting £27 million in savings by 2026. These actions include consolidating smaller sites, from 85 in 2016, reducing divisional structures and streamlining operational processes across the organisation.

The disposal of the non‑core Molten Metal Systems (MMS) business in 2025 was a major milestone. The £76.2 million transaction sharpened portfolio focus on higher‑growth, higher‑margin segments, reduced organisational complexity and strengthened the balance sheet. The MMS sale reduces our site footprint to 57 and reflects the company’s disciplined approach to capital allocation.

Operational excellence is also being driven through major technology and systems upgrades. We are rolling out a Global ERP system to replace a multitude of legacy platforms. The multi‑year programme saw the first pilot completed successfully in 2025. The ERP investment, supported by £13.3 million of programme spend in 2025 and £22–24 million projected for 2026, is designed to standardise processes, enhance the control environment, improve supply chain visibility and leverage Group‑wide procurement.

We are also addressing specific operational bottlenecks. Turnaround programmes are underway at several large underperforming sites, which together represent more than 20% of Group revenue. These initiatives include optimising production flows, reducing inventory, cross‑qualifying manufacturing lines and simplifying product portfolios.

Digital transformation is another strategic pillar. With strengthened data analytics, improved governance and enhanced supply chain visibility, we are equipping teams to make faster, more informed decisions. This translates to tighter production planning, stronger customer service levels and more agile responses.

Taken together, our operational transformation provides a strong foundation for achieving medium term financial targets, including a return to a 12% operating margin by 2028, above GDP organic growth and attractive long‑term returns on invested capital (17–20% ROIC). For investors seeking operational discipline, strategic clarity and long‑term value creation, Morgan Advanced Materials is a business to watch.