Morgan Advanced Materials PLC Update on Trading and Cyber Security Incident (0905P)
07 Febbraio 2023 - 8:00AM
UK Regulatory
TIDMMGAM
RNS Number : 0905P
Morgan Advanced Materials PLC
07 February 2023
Press Release
Morgan Advanced Materials plc
7 February 2023
Update on Trading and Cyber Security Incident
Morgan Advanced Materials plc (the "Group") provides an update
on trading results for 2022 and on the cyber security incident
previously announced on 10 January 2023.
Key points
- FY2022 trading performance expected to be slightly ahead of market expectations
- In response to the cyber security incident:
o All manufacturing sites are operational
o Resolution of systems issues continues at pace
o H1 2023 demand remains strong, but production inefficiencies
expected to impact FY2023 adjusted operating profit by 10% to
15%
o FY2022 preliminary results now expected to be announced by end
of April 2023
Trading Update
Revenue growth remained robust in the final two months of the
year with revenue expected to be around GBP1.1bn, representing
growth of 16% or 11% at constant currency. FY2022 adjusted
operating profit is expected to be slightly above the top-end of
the range of analysts' forecasts (1) . Net debt at the year end was
GBP148.6m, in line with market expectations and 0.8x EBITDA.
Cyber Security Incident
As announced on 10 January 2023, the Company is managing the
consequences of a cyber security incident having detected
unauthorised activity on its network. Immediate steps were taken to
contain the incident, launch incident response plans, engage
specialist support services and embark on restoring systems.
All manufacturing sites are operational, although some continue
to use manual transaction processes as work continues to restore
their systems. A small number of systems have proven irrecoverable
and so we are accelerating the implementation of a new cloud-based
ERP solution at the affected sites.
All appropriate regulatory authorities have been informed of the
incident.
Exceptional costs associated with the incident could amount to
approximately GBP8m to GBP12m, comprising specialist professional
fees, as well as costs associated with recovering a number of
systems across the Morgan Group.
It remains challenging to estimate precisely the extent of any
impact on our H1 2023 trading. During January, a number of sites
experienced a delay in restarting production and shipping due to
the cyber security incident. Whilst demand has remained strong
during January, we are experiencing production inefficiency during
the recovery period which, based on current estimates, could lead
to adjusted operating profit for FY2023 being approximately 10% to
15% below our previous expectations.
The Group has a strong balance sheet and does not expect the
incident to have a material long term impact.
(1) Company compiled consensus for adjusted operating profit is
GBP139.2m, with a range of GBP133.5m to GBP145.0m.
2022 Preliminary results timing
As a result of the systems impact from the cyber security
incident, we are working with our auditors to reschedule the audit
of the 2022 preliminary results and currently expect to be able to
issue them by the end of April 2023.
Revised dates for our FY2022 preliminary results and our 2023
Annual General Meeting will be published in due course.
This announcement contains inside information. The person
responsible for arranging the release of this announcement is
Richard Armitage, CFO. The company's LEI is
I4K14LL95N2PHDL7EG85.
For further enquiries:
Pete Raby, CEO Morgan Advanced Materials plc 01753 837000
Richard Armitage, CFO
Nina Coad Brunswick 0207 404 5959
All financial information included in this announcement is
sourced from unaudited management accounts and excludes any
specific adjusting items. This announcement contains certain
forward-looking statements that are based on management's current
expectations or beliefs as well as assumptions about future events.
These are subject to risk factors associated with, amongst other
things, the economic and business circumstances occurring from time
to time in the countries and sectors in which the group operates.
It is believed that the expectations reflected in these statements
are reasonable, but they may be affected by a wide range of
variables which could cause actual results, and the group's plans
and objectives, to differ materially from those currently
anticipated or implied in the forward-looking statements. Investors
should not place undue reliance on any such statements.
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END
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