LONDON (ShareCast) - (ShareCast News) - Morgan Advanced Materials' revenue for 2016 rose despite "challenging" trading conditions in the second half of the year as it remains on track with its operational strategy.
The FTSE 250 manufacturer of carbon and ceramics products said that the implementation of its strategy is on track as it recently announced two sales which will simplify its electrical carbon and technical ceramics business units, for about £80m.

It said that its financial performance is in line with expectations, despite trading conditions remaining challenging in the second half of the year, with a full-year book-to-bill ratio unchanged from last year at 0.99 times.

Revenue for 2016 rose 8.5% to £989.2m, compared to last year, but fell 1.5% on a constant currency basis.

This resulted in a 10.3% rise in operating profit to £116.9m, but was down 2.5% at constant currency.

The operating profit margin improved to 11.8% from 11.6% and pre-tax profit rose to £87.9m from £59m.

Cash flow from operations fell to £128.3m from £139.4m.

Earnings per share increased to 22.7p from 20.8p and the company proposed a final dividend of 7p, which would result in a full-year dividend of 11p, unchanged from last year.

Chief executive Pete Raby said: "We are making good progress with the implementation of our strategy and have delivered a solid set of results in a difficult market.

"Looking forward to 2017, we are expecting the challenging market conditions to continue and we have planned prudently as a result. However, we are making operational improvements across our business as part of our strategy execution and this is creating the funds to increase research and development, strengthen our selling capability and add business development resources, all aimed at supporting future growth in key business areas."

Shares in Morgan Advanced Materials were up 5.48% to 315p at 0900 GMT.

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