Morgan Advanced Materials
Unlocking Morgan's potential
As we look to the future, our vision is clear: to become the leading force in our chosen markets.
With strong foundations built over the last century, we’re setting out a multi-year strategy focused on operational excellence, asset utilisation, and maximising portfolio value. The journey ahead is ambitious, but with the right team and a clear roadmap, we’re confident in our ability to unlock our full potential.
Our strategy will deliver against a clear medium-term financial framework:
- Above market organic constant-currency* revenue growth: We expect to achieve growth in excess of GDP
- Reliable and competitive margins: We expect to achieve an adjusted operating profit* margin of 12% by 2028 with sustainable margins of between 12% and 14% beyond 2028
- Sustainable EPS Growth: Achieving sustained growth in adjusted Earnings per Share*, ahead of organic revenue growth, driven by a combination of organic growth, margin accretion, shareholder returns and M&A
- Attractive ROIC: 17% - 20% ROIC
- Resilient balance sheet: Leverage range of 1.0x to 1.5x, or up to 2.0x adjusted EBITDA* post-acquisition, utilising our strong balance sheet to fund our organic growth, and then over time deploying excess capital to fund incremental M&A or additional shareholder returns as appropriate
- Appropriate dividend cover: Shareholder dividends maintained then growing with adjusted earnings at around 2.5x cover
Our strategy utilises three strategic levers.
1. Transform operational effectiveness
We will build a scalable, more efficient and more agile business. We are going beyond site consolidation, we are leveraging the Group’s scale, stepping up supply chain effectiveness, and turning around our largest underperforming sites.
• We will deploy Group led category management across an indirect spend cost base of £170m. We will deliver significant savings and reinforce the efficiency and reliability of our supply chain.
• We will implement structured and comprehensive multi-year programmes to turn around large underperforming sites that represent more than 20% of Group revenue. We will optimise production cycles and supply chains and simplify the asset base and product portfolio.
• We are investing in digital transformation to enhance business analytics, make better informed decisions and act with agility and confidence. We will streamline and standardise our back office processes to focus business teams on delivery and growth.
2. Drive stronger growth
We will systematically upgrade our position in the value chain so that we can grow profitability irrespective of market cycles and increase our market share and addressable market.
• Our Performance Carbon division will innovate to increase performance and longevity in rail and wind. It will capitalise on its reputation, technology and trade control capabilities to expand in defence systems.
• Our Technical Ceramics division will increase its capacity to meet increasing aircraft deliveries and the ramp up of the new generation of engines.
• Our Thermal Products division will reinforce its outreach in the process industries to enable the decarbonisation of steel and chemical processes.
3. Maximise portfolio value
We will make bold choices. We will invest selectively to expand our leading positions, partner where we know we cannot win alone and exit markets where we cannot improve our market position or right to win.
• Our Performance Carbon division will pursue opportunities to supply subsystems in Energy and Industrials where the supply chains are fragmented and the decarbonisation and digitalisation trends call for innovation. It will assess partnerships in China for Semiconductor SiC material growth.
• Our Technical Ceramics division will leverage its expertise in high-value niches to expand into new adjacencies, with priorities in Industrials and Aerospace.
• Our Thermal Products division will expand its structural partnerships in fire protection. It is a very large market and we are targeting the geographies and applications where the value proposition is compelling.
• We are undertaking a strategic review of our Thermal Products division and further updates will be provided in due course
"A successful growth agenda starts with how we can unlock our customers’ ambitions and serve their needs." Damien Caby, CEO