Full Year Results

About this update from Morgan Advanced Materials Plc

[{"type":"text","content":"\n \n \n   \n \"Resilient performance in challenging markets; executing strategy at pace\" \n   \n Full Year Results for the year ended 31 December 2025 \n   \n Financial Highlights \n   \n \n \n \n \n \n \n \n Headline 1 Adjusted 2 \n \n \n Statutory (Continuing operations) \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n OCC 2 % \n \n \n 2025 \n \n \n 2024 4 \n \n \n % \n \n \n \n \n Revenue \n \n \n £1,030.3m \n \n \n £1,100.7m \n \n \n (3.3)% \n \n \n £996.6m \n \n \n £1,060.1m \n \n \n (6.0)% \n \n \n \n \n Operating profit \n \n \n £99.1m \n \n \n £128.4m \n \n \n (17.6)% \n \n \n £45.2m \n \n \n £99.2m \n \n \n (54.4)% \n \n \n \n \n Operating profit margin \n \n \n 9.6% \n \n \n 11.7% \n \n \n (17 0) bps \n \n \n 4.5% \n \n \n 9.4% \n \n \n (490) bps \n \n \n \n \n Basic EPS \n \n \n 15.9p \n \n \n 24.2p \n \n \n n/m 3 \n \n \n (1.0)p \n \n \n 16.5p \n \n \n n/m 3 \n \n \n \n \n Net debt to EBITDA ratio (ex. IFRS 16) \n \n \n 1.8x \n \n \n 1.4x \n \n \n n/m 3 \n \n \n 1.9x \n \n \n 1.5x \n \n \n n/m 3 \n \n \n \n \n Cash generated from operations \n \n \n £168.6m \n \n \n £163.0m \n \n \n n/m 3 \n \n \n £168.6m \n \n \n £163.0m \n \n \n 3.4% \n \n \n \n \n Free cash flow \n \n \n £45.4m \n \n \n £15.1m \n \n \n n/m 3 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Total dividend per share \n \n \n 12.2p \n \n \n 12.2p \n \n \n n/m 3 \n \n \n 12.2p \n \n \n 12.2p \n \n \n n/m 3 \n \n \n \n \n Return on invested capital \n \n \n 14.1% \n \n \n 17.7% \n \n \n n/m 3 \n \n \n 14.1% \n \n \n 17.7% \n \n \n n/m 3 \n \n \n \n \n   \n \n \n \n \n 1.      \n \n \n The disposal of the majority of the Molten Metal Systems ('MMS') business completed on 12 November 2025. In order to help users of these financial statements understand the performance of the Group during 2025, the Directors have presented 'Headline' metrics which include the results earned by MMS up to the date of the disposal.  These metrics are presented in addition to our usual non-GAAP adjusted performance metrics (see note 2 below). \n \n \n \n \n 2.      \n \n \n Definitions of these non-GAAP measures and reconciliations to the equivalent statutory measures can be found in the 'Glossary' and 'Alternative performance measures' section at the end of this announcement.  Throughout this report these non-GAAP measures are clearly identified by an asterisk (*) where they appear in text and by a footnote where they appear in tables. \n \n \n \n \n 3.      \n \n \n Movements where the % movement is not meaningful are represented by n/m. \n \n \n \n \n 4.      \n \n \n Statutory financial results have been restated for the year ended 31 December 2024 to present the results of MMS within discontinued operations. \n \n \n \n \n   \n Damien Caby, Chief Executive Officer, commented: \n \"The business has delivered a resilient performance against a backdrop of challenging markets .  Demand in our end-markets has now broadly stabilised and, on an organic constant-currency basis*, revenue has remained stable since the second half of 2024.  We have made good progress against our priorities.  Our business simplification programme is now materially complete and will deliver savings in-line with our published target of £27 million by 2026, continuing our established track-record of self-help.  The sale of our Molten Metal Systems business further simplifies the Group and demonstrates our commitment to take decisive action to manage our portfolio and create value for shareholders.  \n   \n \"The strategy update in December 2025 set out a clear path for action and we are now executing at pace.  We are transforming our operations to drive stronger more profitable growth in our chosen markets.  As part of our focus on maximising portfolio value, we are undertaking a strategic review of our Thermal Products division and further updates will be provided in due course.  We remain confident in delivering sustainable above market organic revenue growth and returning the Group to a 12% margin by 2028.\" \n   \n Highlights \n \n \n \n \n ·      \n \n \n Organic constant-currency* revenue decline of 3.3% reflects end-market weakness, notably in Semiconductor and European Industrial markets; stabilisation in these markets during H2 2025 \n \n \n \n \n ·      \n \n \n Business simplification programme progressing well; additional £16 million of savings during 2025, as expected, compared to our 2023 baseline \n \n \n \n \n ·      \n \n \n Group headline adjusted operating profit* margin of 9.6%; benefits from efficiency and business simplification partly offset the impact of weaker markets \n \n \n \n \n ·      \n \n \n Headline Net debt*/EBITDA* of 1.8 times reflects Semiconductor and simplification programme investments; leverage to return towards our framework targets during 2026 upon realisation of MMS disposal proceeds \n \n \n \n \n ·      \n \n \n Good progress against our strategy; first major site turnaround plan initiated, group led procurement set to deliver early wins in 2026, ERP roll-out to kick off in Q2, MMS disposal completed \n \n \n \n \n ·      \n \n \n Strategic review of Thermal Products division formally underway; updates to be provided in due course \n \n \n \n \n ·      \n \n \n Outlook for 2026 in-line with current market expectations \n \n \n \n \n   \n Outlook \n Demand in our end-markets has broadly stabilised and our outlook for 2026 is in-line with current market expectations.  We expect organic constant-currency* revenue growth of 1-2% and an adjusted operating profit* margin at or around 10%, reflecting our continued focus on efficiency and the first results of our Transform initiatives. \n   \n As previously reported, our medium-term guidance for overall capital expenditure is for around £50-£55 million per annum over the next three years. \n   \n We remain confident in achieving our medium-term financial framework. \n   \n Strategic Review of Thermal Products division \n Morgan Advanced Materials Plc is undertaking a strategic review of its Thermal Products division, as part of its ongoing programme to maximise the Group's margin and growth profile and ensure that resources are deployed where they can deliver the strongest long-term returns. The review will assess a full range of strategic options, including a potential disposal. No decisions have been made, and further updates will be provided in due course. \n   \n Results presentation today \n There will be an analyst and investor presentation at 10:00 (UK time) today via web-conference. A live webcast and slide presentation of this event will be available on www.morganadvancedmaterials.com . \n   \n We recommend that you register by 09:45 (UK time). \n   \n \n \n \n \n   Enquiries \n \n \n \n \n \n \n \n \n \n \n Richard Armitage, CFO \n \n \n Morgan Advanced Materials \n \n \n 01753 837 000 \n \n \n \n \n Nicholas Frost, Investor Relations \n \n \n Morgan Advanced Materials \n \n \n \n \n \n \n \n Nina Coad \n \n \n Brunswick \n \n \n 0207 404 5959 \n \n \n \n \n   \n Forward looking statements \n This announcement contains forward-looking statements. These statements have been made in good faith based on the information available up to the time of the approval of this announcement. No assurance can be given that these expectations will prove to have been correct. By their nature, forward-looking statements involve risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. As such, undue reliance should not be placed on forward-looking statements.  The Directors undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. \n   \n About Morgan Advanced Materials plc \n Morgan Advanced Materials is a global leader in advanced materials.  We combine material science, deep application expertise and process excellence to co-design and manufacture mission critical solutions. These solutions are at the heart of society's most essential systems today and they will enable the breakthroughs of tomorrow. Our products help people move, build and thrive. We help power human progress, where it matters most. \n   \n Established in 1856, we have a proven track record in delivering for our customers, underpinned by over a century of innovation. We employ approximately 8,100 people worldwide, across 57 operating sites serving a diverse range of customers across a range of end-markets. \n   \n Learn more at www.morganadvancedmaterials.com . \n   \n Notes to editors \n   \n Business simplification benefits \n   \n \n \n \n \n \n \n \n 2023 \n£m \n \n \n 2024 \n£m \n \n \n 2025 \n£m \n \n \n 2026 \n£m \n \n \n Total \n£m \n \n \n \n \n Adjusted operating profit* benefits \n \n \n 1 \n \n \n 8 \n \n \n 24 \n \n \n 27 \n \n \n - \n \n \n \n \n Costs charged to specific adjusting items \n \n \n (7) \n \n \n (13) \n \n \n (15) \n \n \n (5) \n \n \n (40) \n \n \n \n \n   \n Our Strategy to become the leading force in our chosen markets \n   \n 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. \n \n \n \n \n ·      \n \n \n 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. \n \n \n \n \n ·      \n \n \n 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. \n \n \n \n \n ·      \n \n \n 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. \n \n \n \n \n   \n 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. \n \n \n \n \n ·      \n \n \n 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. \n \n \n \n \n ·      \n \n \n Our Technical Ceramics division will increase its capacity to meet increasing aircraft deliveries and the ramp up of the new generation of engines. \n \n \n \n \n ·      \n \n \n Our Thermal Products division will reinforce its outreach in the process industries to enable the decarbonisation of steel and chemical processes. \n \n \n \n \n   \n 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. \n \n \n \n \n ·      \n \n \n 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. \n \n \n \n \n ·      \n \n \n Our Technical Ceramics division will leverage its expertise in high-value niches to expand into new adjacencies, with priorities in Industrials and Aerospace. \n \n \n \n \n ·      \n \n \n 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. \n \n \n \n \n ·      \n \n \n We are undertaking a strategic review of our Thermal Products division and further updates will be provided in due course \n \n \n \n \n   \n Who we are will help us succeed:  We are a purpose-driven organisation. We are resilient and we thrive when it comes to solving tough problems. We are curious and innovative and we are committed to continuous learning. We are collaborative and open minded and we foster a culture of transparency and humility. As a business, we are focused on recruiting, developing and retaining the high calibre of individuals we need to deliver on the next chapter for Morgan. \n   \n Chief Executive Officer's Review \n   \n Introduction \n I am honoured that the Board selected me to serve as CEO of Morgan Advanced Materials, following two and a half years as president of our Thermal Products division. Morgan is a recognised global leader in advanced materials; our material science, deep application expertise and manufacturing excellence power progress that truly matters. \n   \n Since becoming CEO in July 2025, I have spent time visiting our sites to assess our operations and I have met with our leaders, our employees and our customers. The passion of our employees throughout the organisation is evident. They are proud to be a part of Morgan and they truly believe in the positive impact our products and solutions can have on the world. Our customers value the quality and performance of our products and they trust us to co-design and manufacture mission critical solutions. \n   \n These are strong foundations upon which to build, but we have work to do to unlock our true potential. With our distinctive capabilities, Morgan can be the leading force in our chosen markets. As I set out at our Strategy Update event in December, we have a clear strategy that is focused on factors within our own control which will create an efficient and high performing group. Our strategy will return the Group to a 12% margin by 2028 and will establish a business that grows faster and delivers more robust margins. Together, we will transform our operational effectiveness, drive stronger growth in selected value chains with deeper collaborations and upgraded positions, and maximise the value of our portfolio. \n   \n I am excited about the next phase of our journey, and inspired to lead the Morgan team through this new chapter. \n   \n Group results \n Organic constant-currency* revenue declined by 3.3% compared to 2024, driven by the well-publicised challenging conditions in the Semiconductor market.  We saw resilience across our other markets; weakening market conditions in European Industrial and Global Automotive markets and lower revenue in Healthcare markets were largely offset by a strong performance in Aerospace and Defence markets. \n   \n Group headline* adjusted operating profit* margin was down 210 bps to 9.6% (2024: 11.7%). Volume decline and mix impacts accounted for a 440 bps decrease in margin, but our continued focus on actions within our control allowed us to offset a significant portion of this decline. Margin gains from above inflation pricing and efficiency offered a 170 bps improvement, further supported by our simplification initiatives which generated an additional 160 bps improvement.  The remaining movement in margin relates to foreign exchange and other non-trading items. \n   \n Operational progress \n We have now largely completed our business simplification programme which has streamlined our management structures, reduced the number of divisions we operate and consolidated manufacturing plants to provide better support to our customers and to deliver synergies from key operational activities. Since 2016, we have progressively consolidated our smaller sites, reducing the total number of sites from 85 to 60 before the disposal of MMS. \n   \n We have continued our strategic project to develop and deploy a Global Enterprise Resource Planning (ERP) system which is intended to replace numerous different legacy systems across the Morgan network. The programme, which is expected to complete over the next two years, will create further opportunities to align business processes, and to further strengthen information security and the control environment. \n   \n Headline * leverage at the balance sheet date of 1.8x (2024: 1.4x) reflects the reduction in Group profit, the completion of our Semiconductor capacity investment and our investment in business simplification. Our ongoing investment in digital transformation is a key strategic enabler to transform the Group's operational effectiveness and leverage its scale. This investment will continue into 2026 and 2027.  Leverage will reduce towards our target range during 2026 as our investment in Semiconductor capacity and the business simplification programme come to a close and upon realisation of the full proceeds from the disposal of our MMS business. \n   \n Sale of MMS \n In August 2025, we announced that we had reached an agreement to sell the majority of our Molten Metal Systems ('MMS') business and the transaction completed on 12 November 2025. The details of the transaction and consideration mechanisms are set out in the Financial Review. \n   \n The disposal of MMS is clearly aligned to our strategy, and it demonstrates our commitment to take decisive action to manage our portfolio. It simplifies the organisation, reducing the Group's operating footprint to 57 sites, and it ensures that our business is focused on the selected markets where we have a clear right to win to accelerate organic growth and generate higher returns. \n   \n Semiconductor impairment \n There is a large and growing market for Silicon Carbide, however, the supply chain is experiencing a shift towards China. We remain committed to supplying our customers in the US and Europe and expect to utilise our US based assets to address this demand. \n   \n We have assessed the carrying value of our assets in light of these market developments during 2025. As a result of this exercise, the Group has recognised an impairment charge of £15.6 million related to certain specialist assets dedicated to the Semiconductor material growth market held by Performance Carbon at a UK site. This impairment is consistent with the expectations for our Semiconductor business that we set out in December.  Refer to the Financial Review for further details. \n   \n Moving forwards, our strategy for the Semiconductor market is focused on the wafer fabrication part of the value chain. This market is dominated by American, European and Japanese Original Equipment Manufacturers ('OEMs') and we supply most of these businesses in various parts of the production process. The barriers to entry in this market are high and Morgan is well-positioned to win. Our goal is to deepen our collaboration, working as one enterprise to expand the scope of our supply. \n   \n Progress against our Strategy \n As outlined at our Strategy Update event in December 2025, the aim of our strategy is to unlock Morgan's potential and create a highly efficient, faster growing company. We will become the leading force in our chosen markets.  The presentation and a recording are available at www.morganadvancedmaterials.com \n   \n Our strategy is focused on three key levers: Transform operational effectiveness, Drive stronger growth, and Maximise our portfolio value. We are focused on executing at pace and we made good early progress in 2025. \n   \n Transform: We are addressing specific gaps in our supply chain effectiveness which have constrained our growth by holding back our service levels and we are focused on turning around a small number of large underperforming sites. We will make more of the Group's scale by deploying centrally led procurement. \n   \n \n \n \n \n ·      \n \n \n In respect of site turnaround, work has already commenced to cross-qualify manufacturing lines, to optimise production and inventory management. \n \n \n \n \n ·      \n \n \n In procurement, we have the assessed the Group's indirect spend and our new Group Procurement Lead joined the business in February 2026. \n \n \n \n \n ·      \n \n \n We deployed our new ERP platform at a pilot site during 2025 and are set to commence deployment across the business in 2026. \n \n \n \n \n   \n Drive: We are driving stronger growth by focusing on our right to win to enhance our value proposition and gain market share. We have initiated focused plans to upgrade our position in selected value chains to allow us to grow irrespective of market cycles. \n \n \n \n \n ·      \n \n \n Our Performance Carbon division is capitalising on its reputation and innovation in body armour and trade control capabilities by expanding into other defence systems. We are making a targeted investment in incremental capacity during 2026, backed by multi-year contracts. \n \n \n \n \n ·      \n \n \n Our Technical Ceramics division is building on its leading position in ceramic cores for engines blades by investing in capacity to meet the increase in aircraft deliveries and progressive ramp up of new generation engines with higher design complexity. \n \n \n \n \n   \n Maximise: We are continuing to maximise our portfolio value through partnerships, divestments and bolt-on M&A. \n \n \n \n \n ·      \n \n \n We have commenced a formal Strategic review of our Thermal Products division.  We will assess a full range of strategic options, including options for significant business performance improvement measures and a potential disposal.  We will undertake the necessary preparatory work to ensure that we can act at pace once the review reaches a conclusion.  No decisions have been made and we will provide further market updates in due course.  \n \n \n \n \n   \n Our strategy will deliver against a clear medium-term financial framework \n \n \n \n \n ·      \n \n \n Above market organic constant-currency* revenue growth: We expect to achieve growth in excess of GDP \n \n \n \n \n ·      \n \n \n 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 \n \n \n \n \n ·      \n \n \n 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 \n \n \n \n \n ·      \n \n \n Attractive ROIC: 17% - 20% ROIC \n \n \n \n \n ·      \n \n \n 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 \n \n \n \n \n ·      \n \n \n Appropriate dividend cover: Shareholder dividends maintained then growing with adjusted earnings at around 2.5x cover \n \n \n \n \n   \n Share buyback \n As announced in December 2025, we paused our buyback programme as part of our focus on balance sheet resilience. The second tranche of the buyback has now completed and the Group has purchased a total of £20 million of shares. \n   \n Safety, people, sustainability \n We have clear 2030 goals for our business, all of which are measured against a 2015 baseline: \n   \n 1. A 0.10 LTA rate: our LTA rate was 0.18 (2024: 0.13) which is an increase compared to the prior year. Safety of our employees is essential and addressing the root causes of lost time and recordable accidents is a critical focus for the Board and senior management team. We have undertaken a detailed root cause analysis of 2025 incidents, and as a result, we have developed a focused plan to reinforce the skills and engagement of our manufacturing leaders across the Group, and to implement more focused actions at selected sites during 2026. Alongside, we will maintain our focus on process safety. We have made significant progress in this area during 2025, with strong engagement and momentum in the implementation of the improvement plans in the first of three waves of deployment. \n   \n 2. 40% of female leadership: We continue to improve our gender diversity and 36% of our leadership population are female, a year on year improvement of 2%. We will continue our focus on ensuring that our policies, working conditions, development and support offering, and recruiting approaches deliver a more supportive environment for our female leaders. \n   \n 3. A top quartile engagement score: our engagement score was 75%, an improvement on the prior year. It is pleasing to see progress on this metric, particularly at the sites where engagement levels are below average. Our leaders remain focused with site specific actions. \n   \n 4. Reduce Scope 1 and 2 CO 2 emissions by 50%: We reduced by 5% in the year and we are now 58% below our baseline, significantly ahead of our glidepath. 80% of our power is from low carbon sources and going forward, as our business grows, we are focusing on process efficiency and new technologies in order to sustain this performance. \n   \n 5. Reduce water usage and water use in high-stress areas by 30%: Our overall water usage reduced by 11% and water use in high-stressed areas has decreased by 3%. We are 39% and 23% below our baseline, respectively. \n   \n Financial review \n   \n Discontinued operations and alternative performance metrics \n In August 2025, the Group announced that it had reached an agreement to sell the majority of its MMS business which was reported within the Thermal Products reporting segment. The transaction completed on 12 November 2025.  The disposal represented a major line of business for the Group and accordingly, it is classified as a discontinued operation under 'IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations.'  In accordance with IFRS 5, current year results for MMS are shown as one line 'profit from discontinued operations' on the face of the income statement and prior year results have been restated on the same basis. \n   \n In addition to statutory metrics, the Group monitors business performance through alternative performance measures (APMs) which are non-GAAP measures not defined under IFRS. The Directors consider that these APMs provide useful information to stakeholders, including additional insight into ongoing trading and year-on-year comparisons. These APMs are not intended as a substitute for IFRS measures and should be considered as providing complementary insight. The Group defines each APM and therefore they may not be directly comparable with similarly named metrics in other businesses. The purpose and definition of each APM, along with a reconciliation to the equivalent statutory metric, are included in the 'Glossary of Terms and Alternative Performance Metrics' sections included at the end of this announcement. \n   \n In order to help users of these financial statements understand the performance of the Group during 2025, where relevant, the Directors have presented 'Headline' metrics which include the results earned by MMS up to the date of the disposal.  These metrics are clearly denoted by the use of 'Headline' and they are presented alongside statutory results and in addition to the usual APMs presented by the business. \n   \n Throughout this Report, these non-GAAP measures are clearly identified by an asterisk (*) where they appear in text and by a footnote where they appear in tables and charts. \n   \n Unless otherwise stated, all financial information reported in the Financial review relates to continuing operations.  \n   \n Group financial performance \n Summary financial information for the year ended 31 December 2025 \n \n \n \n \n Summary income statement and key metrics \n \n \n 2025 \n£m \n \n \n 2024 2 \n£m \n \n \n Change \n% \n \n \n \n \n Headline 1 metrics \n \n \n \n \n \n \n \n \n \n \n \n \n \n Headline 1 Revenue \n \n \n 1,030.3 \n \n \n 1,100.7 \n \n \n (6.4)% \n \n \n \n \n Headline 1 Adjusted operating profit 1 \n \n \n 99.1 \n \n \n 128.4 \n \n \n (22.8)% \n \n \n \n \n Headline Adjusted operating profit 1 margin \n \n \n 9.6% \n \n \n 11.7% \n \n \n (210) bps \n \n \n \n \n Net debt 1 to Headline EBITDA 1 ratio \n \n \n 1.8x \n \n \n 1.4x \n \n \n n/m 3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Results from continuing operations \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue \n \n \n 996.6 \n \n \n 1,060.1 \n \n \n (6.0)% \n \n \n \n \n Adjusted operating profit 1 \n \n \n 93.8 \n \n \n 123.3 \n \n \n (23.9)% \n \n \n \n \n Adjusted operating profit margin \n \n \n 9.4% \n \n \n 11.6% \n \n \n (220) bps \n \n \n \n \n Amortisation of intangible assets \n \n \n (1.0) \n \n \n (1.7) \n \n \n (41.2)% \n \n \n \n \n Specific adjusting items 4 \n \n \n (47.6) \n \n \n (22.4) \n \n \n 112.5% \n \n \n \n \n Operating profit from continuing operations \n \n \n 45.2 \n \n \n 99.2 \n \n \n (54.4)% \n \n \n \n \n Net financing costs \n \n \n (22.2) \n \n \n (19.0) \n \n \n 16.8% \n \n \n \n \n Profit before taxation from continuing operations \n \n \n 23.0 \n \n \n 80.2 \n \n \n (71.3)% \n \n \n \n \n Income tax expense \n \n \n (17.9) \n \n \n (24.7) \n \n \n (27.5)% \n \n \n \n \n Profit after taxation from continuing operations \n \n \n 5.1 \n \n \n 55.5 \n \n \n (90.8)% \n \n \n \n \n Profit after taxation from discontinued operations \n \n \n 23.7 \n \n \n 3.3 \n \n \n 618.2% \n \n \n \n \n Profit for the year \n \n \n 28.8 \n \n \n 58.8 \n \n \n (51.0)% \n \n \n \n \n Basic EPS from continuing and discontinuing operations \n \n \n 7.5p \n \n \n 17.7p \n \n \n (57.6)% \n \n \n \n \n Adjusted EPS 1 \n \n \n 15.9p \n \n \n 24.2p \n \n \n (34.3)% \n \n \n \n \n Return on invested capital 1 \n \n \n 14.1% \n \n \n 17.7% \n \n \n (360)bps \n \n \n \n \n Summary cash flow and key metrics \n \n \n 2025 \n£m \n \n \n 2024 \n£m \n \n \n Change \n% \n \n \n \n \n Headline cash generated from operations \n \n \n 168.6 \n \n \n 163.0 \n \n \n 3.4% \n \n \n \n \n Headline free cash flow 1 \n \n \n 45.4 \n \n \n 15.1 \n \n \n 200.7% \n \n \n \n \n Cash and cash equivalents \n \n \n 79.3 \n \n \n 120.8 \n \n \n (34.4)% \n \n \n \n \n Net debt 1 \n \n \n 232.2 \n \n \n 226.2 \n \n \n 2.7% \n \n \n \n \n Headline net debt 1 to EBITDA 1 ratio \n \n \n 1.8x \n \n \n 1.4x \n \n \n n/m 3 \n \n \n \n \n Total dividend per share \n \n \n 12.2p \n \n \n 12.2p \n \n \n - \n \n \n \n \n 1 Definitions of these non-GAAP measures and reconciliations to the equivalent statutory measure can be found in the 'Glossary and Alternative Performance Metrics' section at the end of this announcement.  \n 2 Statutory financial results have been restated for the year ended 31 December 2024 to present the results of MMS within discontinued operations. \n 3 Movements where the percentage movement is not meaningful are represented by n/m. \n 4 Details of specific adjusting items arising during the year and the comparative period are given in note 4 to the condensed consolidated financial statements. \n   \n   \n Revenue \n \n \n \n \n Revenue \n \n \n 2025 \n£m \n \n \n 2024 1 \n£m \n \n \n Change \n% \n \n \n OCC 2 Change \n % \n \n \n \n \n Performance Carbon \n \n \n 306.8 \n \n \n 345.2 \n \n \n (11.1)% \n \n \n (8.9)% \n \n \n \n \n Technical Ceramics \n \n \n 341.6 \n \n \n 337.3 \n \n \n 1.3% \n \n \n 3.4% \n \n \n \n \n Thermal Products \n \n \n 348.2 \n \n \n 377.6 \n \n \n (7.8)% \n \n \n (4.2)% \n \n \n \n \n Revenue from continuing operations \n \n \n 996.6 \n \n \n 1,060.1 \n \n \n (6.0)% \n \n \n (3.3)% \n \n \n \n \n Discontinued operations - MMS \n \n \n 33.7 \n \n \n 40.6 \n \n \n n/m 3 \n \n \n n/m 3 \n \n \n \n \n Headline revenue \n \n \n 1,030.3 \n \n \n 1,100.7 \n \n \n (6.4)% \n \n \n (3.3)% \n \n \n \n \n 1 Statutory financial results have been restated for the year ended 31 December 2024 to present the results of MMS within discontinued operations. \n 2 Definitions of these non-GAAP measures and reconciliations to the equivalent statutory measure can be found in the 'Glossary and Alternative Performance Metrics' section at the end of this announcement. \n 3 Movements where the percentage movement is not meaningful are represented by n/m. \n   \n On a headline* basis, the Group recognised revenue of £1,030.3 million (2024: £1,100.7 million), a year on year decrease of 6.4% at reported currency rates.  Revenue was significantly impacted by foreign exchange headwinds, largely related to the US Dollar and sterling exchange rates.  On an organic constant currency basis*, Group revenue decreased by 3.3% year-on-year.    \n   \n Performance Carbon was heavily impacted by the well-publicised conditions within the Semiconductor market and in total the division delivered revenue of £306.8 million, an 8.9% decline versus the prior year on an organic constant-currency* '(OCC') basis.  Lower Semiconductor sales drove the year on year decline, although we note that revenue has stabilised in the second half of the year.  Across other markets, the business has demonstrated a resilient revenue performance. The business saw a smaller decline in Aerospace & Defence sales which reflects the timing of some large defence orders which are now expected in 2026.  This was largely offset by increased demand in rail and energy markets.  \n   \n Technical Ceramics has demonstrated good resilience over the year, delivering revenue of £341.6 million, a 3.4% increase on an OCC* basis.  The business saw strong demand in Aerospace & Defence markets, driven by demand for new aircraft along with robust maintenance revenue driven by increased fleet utilisation.  This growth was partially offset by the impact of Semiconductor market dynamics and notably lower sales into Healthcare markets driven by customer inventory adjustments. \n   \n Thermal Products delivered revenue of £348.2 million, a 4.2% decline on an OCC* basis. This performance was impacted by regional economic dynamics, primarily driven by continued challenging conditions in European industrial markets.  Overall, we note revenues have remained broadly stable since the second half of 2024.  \n   \n Adjusted operating profit \n \n \n \n \n   \n \n \n \n \n \n 2025 \n \n \n \n \n \n 2024 \n \n \n \n \n Adjusted operating profit 2 \n \n \n Profit \n£m \n \n \n Margin \n% \n \n \n 2024 1 \n£m \n \n \n Margin \n% \n \n \n \n \n Performance Carbon \n \n \n 41.2 \n \n \n 13.4% \n \n \n 55.1 \n \n \n 16.0% \n \n \n \n \n Technical Ceramics \n \n \n 39.4 \n \n \n 11.5% \n \n \n 39.2 \n \n \n 11.6% \n \n \n \n \n Thermal Products \n \n \n 23.5 \n \n \n 6.7% \n \n \n 37.5 \n \n \n 9.9% \n \n \n \n \n Central costs \n \n \n (10.3) \n \n \n n/m \n \n \n (8.5) \n \n \n n/m 3 \n \n \n \n \n Adjusted operating profit from continuing operations \n \n \n 93.8 \n \n \n 9.4% \n \n \n 123.3 \n \n \n 11.6% \n \n \n \n \n Discontinued operations - MMS \n \n \n 5.3 \n \n \n n/m 3 \n \n \n 5.1 \n \n \n n/m 3 \n \n \n \n \n Headline Adjusted operating profit \n \n \n 99.1 \n \n \n 9.6% \n \n \n 128.4 \n \n \n 11.7% \n \n \n \n \n 1 Statutory financial results have been restated for the year ended 31 December 2024 to present the results of MMS within discontinued operations. \n 2 Definitions of these non-GAAP measures and reconciliations to the equivalent statutory measure can be found in the 'Glossary and Alternative Performance Metrics' section at the end of this announcement.  \n 3 Movements where the percentage movement is not meaningful are represented by n/m. \n   \n The Group delivered headline adjusted operating profit* of £99.1 million (2024: £128.4 million) and a headline adjusted operating profit margin of 9.6% (2024: 11.7% reported; 11.3% on an OCC* basis).  Whilst volume and mix impacts drove a 440 bps decrease in margins, our overall margin delivery was positively impacted by our continued focus on simplification and efficiency.  On a combined basis, the net impact of pricing, inflation and efficiency initiatives contributed 170 bps improvement to margin with simplification initiatives providing a further 160 bps margin.  The remaining movement in margin relates to foreign exchange and other non-trading items. \n   \n Performance Carbon delivered an adjusted operating profit margin* of 13.4%, a 260 bps decrease compared to the prior year.  The impact of lower volume and an adverse sales mix was partially offset by substantial gains from efficiency and simplification initiatives.  Margin was further supported by £5.2 million of trading receipts that will not repeat in 2026. \n   \n Technical Ceramics delivered an adjusted operating profit margin* of 11.5% which was broadly in-line with the prior year.  \n   \n Thermal Products delivered an adjusted operating profit margin* of 6.7%, a 320 bps decrease compared to the prior year. Performance reflects challenging market conditions and foreign exchange headwinds and hyperinflation accounting.  \n   \n On a continuing operations basis, Central costs of £10.3 million have increased by £1.8 million compared to 2024.  This increase reflects the build-out of our central ERP team who will support the new system on an ongoing basis.  Central costs for the prior year have been restated to include central costs which were previously allocated to MMS that have remained with the Group post deal close. \n   \n Adjusted profit margins for the discontinued MMS business are not considered meaningful since they exclude central costs previously allocated to the division, thus artificially increasing the profit attributable to the operating unit. \n   \n Specific adjusting items \n Specific adjusting items from continuing operations were £47.6 million (2024: £22.4 million) and comprised the following: \n \n \n \n \n \n \n \n \n \n \n 2025 \n£m \n \n \n 2024 \n£m \n \n \n \n \n Specific adjusting items from continuing operations \n \n \n \n \n \n \n \n \n \n \n \n \n \n Impairment of non-financial assets \n \n \n \n \n \n (15.6) \n \n \n (4.2) \n \n \n \n \n Business simplification restructuring \n \n \n \n \n \n (13.4) \n \n \n (12.4) \n \n \n \n \n Design, configuration, customisation and implementation of a Global ERP system \n \n \n \n \n \n (13.3) \n \n \n (5.2) \n \n \n \n \n Reversal of prior year impairments following Argentina's currency devaluation \n \n \n \n \n \n 1.9 \n \n \n 0.5 \n \n \n \n \n Residual costs associated with the cyber security incident \n \n \n \n \n \n - \n \n \n (1.1) \n \n \n \n \n Movement in fair value of consideration shares held at FVTPL \n \n \n \n \n \n (7.2) \n \n \n - \n \n \n \n \n Total specific adjusting items from continuing operations before income tax \n \n \n \n \n \n (47.6) \n \n \n (22.4) \n \n \n \n \n Income tax credit from specific adjusting items \n \n \n \n \n \n 1.5 \n \n \n 2.3 \n \n \n \n \n Total specific adjusting items from continuing operations after income tax \n \n \n \n \n \n (46.1) \n \n \n (20.1) \n \n \n \n \n   \n During 2025, the Group has recognised an impairment charge of £15.6 million related to certain specialist assets at a UK site which are dedicated to the Semiconductor market.  Our current view of future demand for this market subsegment indicates that these assets will not be utilised.  Since this specialist machinery cannot be redeployed to fulfil other demand in the near term without further investment we have fully impaired the asset, in-line with the requirements of 'IAS 36 - Impairment of assets'.  There is no change to our previously communicated expectations for the Semiconductor market opportunity for Morgan. \n   \n The Group has recorded a cumulative total of £28.6 million impairment charges recognised in current and prior periods, for assets which it continues to use.  These impairments could be reversed if the businesses were to outperform significantly against their budgets and strategic plans, or if market conditions materially change.  A sensitivity analysis was carried out using reasonably possible changes to the key assumptions in assessing the value in use of these non-financial assets. This did not result in a material reversal of the remaining impaired amounts in 2025 (2024: £nil); the only impairment reversed during the year relates to trading assets in Argentina, as noted below. Refer to note 4 to the condensed consolidated financial statements for details of the impairment review and key assumptions made.  \n   \n The Group incurred total expenditure of £14.3 million in respect of our business simplification and restructuring programme during the year (2024: £13.1 million).  Of this total, £13.4 million relates to continuing operations (2024: 12.4 million) with the balance of £0.9 million incurred by MMS and included within discontinued operations (2024: £0.7 million).  \n   \n As at 31 December 2025, the Group's business simplification initiatives have delivered total cumulative adjusted operating profit* benefits of £24 million, compared to our 2023 baseline, for a total cost total of £35 million. During 2025, we have rephased certain planned activities to ensure clear prioritisation and execution throughout the business. We continue to expect to deliver total cumulative savings of £27 million by 2026, compared to the 2023 baseline, for a total cost of approximately £40 million. \n   \n The Group incurred £13.3 million of exceptional costs associated with the design, configuration, customisation and implementation of a Global ERP system (2024: £5.2 million).  We made good progress in 2025, completing a pilot system roll-out and finalising design and build ahead of a go-live of material sites across North America and Europe during 2026.  We anticipate that roll-out and implementation will be completed by the end of 2027.  Alongside our investment in implementation, we are building out a dedicated ERP and project team that will remain with the business post-implementation and these costs are recognised within underlying results.  We expect to incur ERP implementation costs of between £22-24 million in 2026 which will be recognised within specific adjusting items. \n   \n The Group recognised a credit of £1.9 million relating to the reversal of a fixed asset impairment associated with operations in Argentina.  The impairment was recognised in 2023, following a currency devaluation of more than 50%.  During 2025, we have successfully repatriated a cash dividend from Argentina to the UK via the Bopreal mechanism and the business has continued to operate profitably despite ongoing economic uncertainty.  Accordingly, the Group has recognised a full reversal of its previous fixed asset impairment. \n   \n Within 'specific adjusting items' from continuing operations, the Group recognised a fair value and foreign exchange loss on consideration shares received in a listed Indian business as part of the consideration received for the disposal of MMS.  Further details of the MMS transaction are set out below. \n \n \n \n \n \n \n \n \n \n \n 2025 \n£m \n \n \n 2024 \n£m \n \n \n \n \n Specific adjusting items from discontinuing operations 1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net restructuring charge \n \n \n \n \n \n (0.9) \n \n \n (0.7) \n \n \n \n \n Gain on disposal of MMS \n \n \n \n \n \n 28.5 \n \n \n - \n \n \n \n \n Other \n \n \n \n \n \n - \n \n \n 0.1 \n \n \n \n \n Total specific adjusting items from discontinuing operations before income tax \n \n \n \n \n \n 27.6 \n \n \n (0.6) \n \n \n \n \n Income tax credit from specific adjusting items \n \n \n \n \n \n (7.7) \n \n \n 0.2 \n \n \n \n \n Total specific adjusting items from discontinuing operations after income tax \n \n \n \n \n \n 19.9 \n \n \n (0.4) \n \n \n \n \n 1  Details of specific adjusting items arising during the year and the comparative period are given in note 4 to the condensed consolidated financial statements. \n   \n Gain on disposal of MMS \n During the year the Group announced the sale of its MMS business to Vesuvius plc.  MMS was previously reported within the Thermal Products reporting segment.  The business represents a major line of business and therefore meets the criteria of a disposal group under IFRS 5.  The results of MMS for the year ended 31 December 2024 and the period up to the completion of the transaction on 12 November 2025 are presented as discontinued operations in the Group's audited financial statements. \n   \n MMS was sold for total consideration of £76.2 million. The transaction was structured as an acquisition of Morgan's 75% shareholding in its Indian listed subsidiary, Morganite Crucible (India) Limited ('MCIL'), by Vesuvius' Indian listed subsidiary, Foseco India Ltd ('FIL'), with consideration for the acquisition being the issuance of new FIL shares to Morgan, plus a cash acquisition for the remainder of the MMS business ('Rest of World'). \n   \n At completion, Morgan received 1.2 million consideration shares in FIL, which represents a circa 15% shareholding in FIL valued at approximately £55.7 million. These shares are subject to a six-month lock-up period post-initial listing, in accordance with applicable Indian regulations. \n   \n In addition, Morgan received £20.5 million in cash as gross consideration for the Rest of World Transaction, which was subject to customary post-completion cash, debt and working capital adjustments and prior to any taxes, fees and other expenses related to the overall MMS transaction. \n   \n The calculation of the gain on disposal of MMS is presented in the table below. The gain on disposal has been included in 'specific adjusting items' within discontinued operations in the consolidated income statement.  \n   \n It is our intention to sell the consideration shares and therefore they have been designated as held for trading and are recognised at fair value through profit and loss and revalued at the balance sheet date by reference to the publicly listed share price. Movements in share price and associated foreign exchange movements are recognised in specific adjusting items due to their nature and size.  In accordance with applicable accounting standards, the fair value movement in the consideration shares held is recognised within continuing operations as it relates to an asset held by the continuing business. \n \n \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n Share consideration \n \n \n \n \n \n 55.7 \n \n \n \n \n Cash consideration \n \n \n \n \n \n 20.5 \n \n \n \n \n Total consideration \n \n \n \n \n \n 76.2 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Goodwill and other intangibles \n \n \n \n \n \n (8.8) \n \n \n \n \n Other non-current assets \n \n \n \n \n \n (21.6) \n \n \n \n \n Current assets \n \n \n \n \n \n (18.7) \n \n \n \n \n Liabilities \n \n \n \n \n \n 10.6 \n \n \n \n \n Net assets disposed \n \n \n \n \n \n (38.5) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Transaction costs \n \n \n \n \n \n (7.0) \n \n \n \n \n Cumulative foreign exchange \n \n \n \n \n \n (5.1) \n \n \n \n \n Non-controlling interest \n \n \n \n \n \n 2.9 \n \n \n \n \n Pre-tax gain on disposal \n \n \n \n \n \n 28.5 \n \n \n \n \n   \n Statutory operating profit \n Statutory operating profit from continuing operations was £45.2 million (2024 restated: £99.2 million), a significant reduction compared to the prior year driven by reduced revenues and increased charges from specific adjusting items as a result of our investment in the Global ERP programme, the fair value and foreign exchange loss on consideration shares held following the disposal of MMS, and the impairment of certain Semiconductor related assets. \n   \n Net financing costs \n Net financing costs of £22.2 million (2024: £19.0 million) comprise net bank interest and similar charges of £17.8 million (2024: £15.8 million), interest payable on supplier finance arrangements of £1.2 million (2024: £nil), net interest on IAS 19 pension obligations of £0.4 million (2024: £0.6 million), and interest expense on lease liabilities of £2.8 million (2024: £2.6 million) resulting from IFRS 16 Leases. \n   \n Net financing costs for 2026 are expected to be within the range of £22-26 million. \n   \n Taxation \n The Group tax charge from continuing operations, excluding specific adjusting items, was £19.4 million (2024: £27.0 million). The effective tax rate, excluding specific adjusting items, was 27.5% (2024: 26.3%). Note 6 to the condensed consolidated financial statements provides additional information on the Group's tax charge. \n   \n On a statutory basis, the Group tax charge was £17.9 million (2024: £24.7 million), lower than the previous year due to lower taxable profits. \n   \n We expect our effective tax rate, excluding specific adjusting items, to be within the 27-28% range in 2026. \n   \n Tax risks \n The Group follows a Tax Policy to fulfil local and international tax requirements, maintaining accurate and timely tax compliance whilst seeking to maximise long-term shareholder value. The Group adopts an open and transparent approach to relationships with tax authorities and continues to monitor and adopt new reporting requirements, for example those arising from the implementation of the OECD Base Erosion and Profit Shifting proposals within tax legislation across various jurisdictions. \n   \n The tax strategy is aligned to the Group's business strategy and ensures that tax affairs have strong commercial substance. Tax risks are set out in the 'Risk Management' section in the Annual Report and Accounts. \n   \n Earnings per share \n Basic earnings per share from continuing operations was a loss of 1.0 pence per share (2024: 16.5 pence) and adjusted earnings per share* was 15.9 pence (2024: 24.2 pence). \n   \n Basic earnings per share from continuing operations was impacted by overall trading performance and increased charges from specific adjusting items, as noted above.  \n   \n See note 8 to the condensed consolidated financial statements. \n   \n Foreign currency impact \n The Group receives revenue and incurs expenses in a number of foreign currencies and, as such, movements in foreign exchange rates can materially impact the Group's financial results.  \n   \n For illustrative purposes, the table below provides details of the impact on 2025 revenue and Group adjusted operating profit* if the actual reported results, calculated using 2025 average exchange rates were restated for GBP weakening by 10 cents against the US dollar in isolation and 10 cents against the Euro in isolation: \n \n \n \n \n Increase in 2025 revenue/adjusted operating profit 1 if: \n \n \n Revenue \n£m \n \n \n Adjusted operating profit 1 \n£m \n \n \n \n \n GBP weakens by 10c against the US Dollar in isolation \n \n \n 39.0 \n \n \n 3.8 \n \n \n \n \n GBP weakens by 10c against the Euro in isolation \n \n \n 17.8 \n \n \n 2.5 \n \n \n \n \n 1 Definitions of these non-GAAP measures and reconciliations to the equivalent statutory measure can be found in the 'Glossary and Alternative Performance Metrics' section at the end of this announcement.  \n   \n   \n The principal exchange rates used in the translation of the results of overseas subsidiaries were as follows: \n \n \n \n \n GBP to: \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n Closing rate \n \n \n Average rate \n \n \n Closing rate \n \n \n Average rate \n \n \n \n \n US Dollar \n \n \n 1.35 \n \n \n 1.32 \n \n \n 1.25 \n \n \n 1.28 \n \n \n \n \n Euro \n \n \n 1.15 \n \n \n 1.17 \n \n \n 1.21 \n \n \n 1.18 \n \n \n \n \n   \n   \n Cash flow \n \n \n \n \n \n \n \n 2025 \n£m \n \n \n Restated \n 2024 \n£m \n \n \n \n \n Adjusted operating profit from continuing operations \n \n \n 93.8 \n \n \n 123.3 \n \n \n \n \n Adjusted operating profit from discontinued operations \n \n \n 5.3 \n \n \n 5.1 \n \n \n \n \n Headline adjusted operating profit \n \n \n 99.1 \n \n \n 128.4 \n \n \n \n \n Adjusted for: \n \n \n \n \n \n \n \n \n \n \n Depreciation \n \n \n 42.0 \n \n \n 42.7 \n \n \n \n \n 'Specific adjusting items' cash outflows \n \n \n (22.8) \n \n \n (20.4) \n \n \n \n \n Loss/(Profit) on sale of PPE \n \n \n 0.5 \n \n \n (3.0) \n \n \n \n \n Equity-settled share-based payments \n \n \n 2.0 \n \n \n 2.8 \n \n \n \n \n Net working capital movements \n \n \n 50.4 \n \n \n 14.6 \n \n \n \n \n Other items \n \n \n (2.6) \n \n \n (2.1) \n \n \n \n \n Cash generated from operations \n \n \n 168.6 \n \n \n 163.0 \n \n \n \n \n Net capital expenditure \n \n \n (65.9) \n \n \n (90.2) \n \n \n \n \n Net interest on cash and borrowings \n \n \n (18.8) \n \n \n (15.3) \n \n \n \n \n Tax paid \n \n \n (26.4) \n \n \n (29.2) \n \n \n \n \n Lease payments and interest \n \n \n (12.1) \n \n \n (13.2) \n \n \n \n \n Free cash flow before acquisitions, disposals and dividends 1 \n \n \n 45.4 \n \n \n 15.1 \n \n \n \n \n Dividends paid to external shareholders \n \n \n (34.1) \n \n \n (34.5) \n \n \n \n \n Net cash flows from other investing and financing activities \n \n \n (23.9) \n \n \n (19.6) \n \n \n \n \n MMS cash proceeds, net of tax paid \n \n \n 10.0 \n \n \n - \n \n \n \n \n Exchange movement and other non-cash movements \n \n \n (3.4) \n \n \n             (2.0) \n \n \n \n \n Movement in net debt 1 \n \n \n (6.0) \n \n \n          (41.0) \n \n \n \n \n Opening net debt 1 \n \n \n (226.2) \n \n \n (185.2) \n \n \n \n \n Closing net debt 1 \n \n \n (232.2) \n \n \n (226.2) \n \n \n \n \n Lease liabilities \n \n \n (49.2) \n \n \n (47.1) \n \n \n \n \n Closing net debt 1 and lease liabilities \n \n \n (281.4) \n \n \n (273.3) \n \n \n \n \n 1 Definitions of these non-GAAP measures and reconciliations to the equivalent statutory measure can be found in the 'Glossary and Alternative Performance Metrics' section at the end of this announcement.  \n   \n The Group generated cash from operations of £168.6 million (2024: £163.0 million) which was £5.6 million higher than the previous year, with lower headline adjusted operating profit* materially offset by a continued focus on working capital management as a result of focused initiatives across the Group.  Working capital initiatives included the initiation of a focused Supplier Financing arrangement for those areas of the business where supplier terms are materially below standard industry levels and an extension of our non-recourse debt factoring programme.  These initiatives improve the Group's diversification and cost of liquidity, and the total benefit from these arrangements as at 31 December 2025 was £37.2 million. \n   \n Free cash flow before acquisitions, disposals and dividends* was £45.4 million (2024: £15.1 million).  The increase in free cashflow was driven by a significant reduction in capital expenditure compared to the prior year following the reduction of the scope of our investment in Semiconductor capacity.  \n   \n For the purposes of compliance with external debt covenants, net debt* is calculated excluding IFRS 16 lease liabilities.  On this basis, net debt* was £232.2 million (2024: £226.2million), representing a net debt* to continuing operations EBITDA* ratio of 1.9 times (2024: 1.5 times).  On a headline basis, which includes the profits earned from MMS up to the date of disposal, net debt* to headline EBITDA ratio was 1.8 times (2024: 1.4 times).  The Group has yet to receive the majority of the consideration associated with the sale of MMS and the value of these consideration shares was £47.2 million at the balance sheet date.  Leverage on a continuing basis will begin to return towards our target range during 2026 upon realisation of these proceeds.  We expect leverage to be at or around 1.7x by the end of 2026. \n   \n Commitments for property, plant and equipment and computer software for which no provision has been made amount to £1.8 million.  Treasury and risk management policies, which remain unchanged from the prior year, are set out in the Annual Report and Accounts. \n   \n Liquidity \n At the balance sheet date, the Group had net cash and cash equivalents* of £74.2 million (2024: £111.5 million) and undrawn headroom on its revolving credit facility of £295.3 million (2024: £279.3 million). \n   \n Capital structure \n At the year end total equity was £348.9 million (2024: £389.3 million) with closing net debt* of £232.2 million (2024: £226.2 million). Non-current assets were £568.5 million (2024: £579.3 million) and total assets were £984.8 million (2024: £1,077.1 million). \n   \n Final dividend \n The Board is recommending a final dividend, subject to shareholder approval, of 6.8 pence per share on the Ordinary share capital of the Group, payable on 12 May 2026 to Ordinary shareholders on the register at the close of business on 10 April 2026. The ex-dividend date is 9 April 2026. \n   \n Together with the interim dividend of 5.4 pence per share paid on 17 November 2025, this final dividend, if approved by shareholders, brings the total distribution for the year to 12.2 pence per share (2024: 12.2 pence). \n   \n A total dividend of 12.2 pence per share represents a dividend cover of adjusted EPS* of 1.3 times.  The Board has committed to maintaining then growing the Ordinary dividend with adjusted earnings cover of circa 2.5 times. \n   \n Note 14 to the Company financial statements included within the 2025 Annual Report and Accounts provides additional information on the Company's distributable reserves. \n   \n Share buyback \n On 5 November 2024, the Group announced its intention to undertake a buyback programme of up to a maximum £40 million, excluding expenses.  In December 2025, we announced our intention to pause the buyback programme after the second £10 million tranche had been completed in order to support our focus on balance sheet resilience. \n   \n As at 31 December 2025, the Group had purchased 8,576,587 shares, for total consideration of £19.9 million including fees and stamp duty.  The second tranche completed in January 2026.    \n   \n Post balance sheet events \n There were no reportable post balance sheet events following the balance sheet date. \n   \n We note the emerging situation in the Middle East.  Whilst the Group has a small footprint in the region, with a relatively low profit exposure we are mindful that the situation could have an impact on broader trade and cost inflation.  It is too early to assess the potential impact for 2026 and our primary focus is the safety of our employees. \n   \n Group principal risks and uncertainties \n The Board considers that risk management and internal control are fundamental to achieving the Group's strategic objectives. Principal and emerging risks are identified both 'top-down' by the Board and the Executive Committee and 'bottom-up' through the divisions and central functions. Senior executives are responsible for the strategic management of the Group's principal and emerging risks, including related policy, guidelines and processes, subject to Board oversight. \n   \n Not all the risks identified as part of our risk management processes are considered principal risks. Principal risks are individual risks, or a combination of risks, which could result in circumstances that might threaten the Group's reputation or business model, its future performance, solvency or liquidity. As with all businesses operating in a dynamic environment, some risks may not yet be known, whilst other low-level risks could become material in the future. \n   \n The Board has ultimate responsibility for the Group's systems of risk management and internal control and ensures the Group's risk processes and systems of internal control are robust, monitored and evolve to address changing business conditions and threats.  Principal and emerging risks are formally reviewed throughout the year by the Board and the Audit Committee.  Risk appetite is discussed and threshold for principal risks are agreed.  The overall system of risk management is reviewed by the Audit Committee on behalf of the Board. \n   \n Emerging risks \n Emerging risks are 'new' risks that have the potential to crystallise in the future, but are unlikely to impact the Group during the next year. The potential future impact of such risks is often uncertain. They may begin to evolve rapidly or simply not materialise. \n   \n Key emerging risk \n Generative artificial intelligence: The Group is monitoring developments in regulatory requirements of generative artificial intelligence, its potential wider impacts on our business model and strategy as well as evaluating appropriate mitigating measures. \n   \n 2025 risk and control assessments \n During 2025, the Board undertook a comprehensive review of the Group's overall risk profile, which involved detailed discussion of risk assessment outputs provided by the divisions and central functions. This included deep dives into principal risks and horizon scanning, identifying emerging risk themes. The Board actively engaged in discussions on risk trends and mitigation strategies, ensuring alignment with the Group's strategic objectives for 2025 and beyond. \n   \n Members of the Board, Audit and Executive Committee received regular updates on the Group's principal risks and the steps taken to mitigate any potential impacts throughout the year, supplemented by thematic reviews and assurance reports from internal and external sources. \n   \n Principal risks \n The principal risks and uncertainties outlined in the strategic report of the 2025 Annual report and Accounts set out a description of the Group's principal risks and related mitigation measures, as agreed by the Board, and describe how these principal risks may affect Morgan Advanced Material's ability to deliver its strategy. \n   \n The identified principal risks relate to: • External environment; • Business change and development; • Business continuity; • Environment, health & safety; • IT infrastructure and security; • Legal and regulatory; and • Key financial processes. \n   \n Going concern \n The Group meets its day-to-day working capital requirements through local banking arrangements underpinned by the Group's £230 million unsecured multi-currency revolving credit facility, which matures in November 2029. As at 31 December 2025, the Group had significant available liquidity and headroom on its covenants. Total committed borrowing facilities were £601.7 million. The amount drawn under these facilities was £306.4 million, which together with net cash and cash equivalents of £74.2 million, gave a total headroom of £369.5 million. The multi-currency revolving credit facility was undrawn. The €150 million delayed draw Term Loan was €75 million drawn. The Group has scheduled debt maturities of $97 million and €25 million due in October 2026 and it expects to repay these facilities using existing facilities. \n   \n The principal borrowing facilities are subject to covenants that are measured bi-annually in June and December, being net debt* to EBITDA* of a maximum of 3 times and interest cover of a minimum of 4 times, based on measures defined in the facilities agreements which are adjusted from the equivalent IFRS amounts. \n   \n The Group has carefully modelled its cash flow outlook, taking account of reasonably possible changes in trading performance, exchange rates and plausible downside scenarios. This review indicated that there was sufficient headroom and liquidity for the business to continue for the 18-month period based on the facilities available as discussed in note 1 to the condensed consolidated financial statements. The Group was also expected to be in compliance with the required covenants discussed above. \n   \n After making enquiries, and in the absence of any material uncertainties, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for a period of 18 months from the date of signing this Annual Report and Accounts. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Accounts. \n   \n Further information is provided in note 1 to the Condensed consolidated Financial Statements under the heading 'Going concern'. \n   \n Directors' responsibilities statement \n The responsibility statement below has been prepared in connection with the Group's full Annual Report and Accounts for the year to 31 December 2025. Certain parts thereof are not included within these Results. \n   \n Each of the Directors, whose names and functions are included in the Annual Report and Accounts 2025 confirm that, to the best of their knowledge: \n   \n \n \n \n \n ·      \n \n \n the financial statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole; \n \n \n \n \n ·      \n \n \n the strategic report includes a fair review of the development and performance of the business and the position of the company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and \n \n \n \n \n ·      \n \n \n the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the company's position and performance, business model and strategy. \n \n \n \n \n   \n This responsibility statement was approved by the Board of Directors on 2 March 2026. \n   \n By order of the Board, \n   \n \n \n \n \n Director \n \n \n Director \n \n \n \n \n D. Caby \n \n \n R. Armitage \n \n \n \n \n   \n Audited financial information \n The condensed consolidated financial statements and notes 1 to 17 for the year ended 31 December 2025 included below are derived from the Group's consolidated financial statements which have been audited by Deloitte LLP. The unmodified audit report is available for inspection at the Group's registered office. \n   \n   \n   \n   \n Consolidated income statement \n \n \n \n \n \n \n \n   \n \n \n Year ended 31 December 2025 \n \n \n Year ended 31 December 2024 \n \n \n \n \n \n \n \n   \n \n \n Results before specific adjusting items \n \n \n Specific adjusting items 2 \n \n \n Total \n \n \n Restated results before specific adjusting items 1 \n \n \n Restated specific adjusting items 2 \n \n \n Total 1 \n \n \n \n \n \n \n \n Note \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue \n \n \n 3 \n \n \n 996.6 \n \n \n - \n \n \n 996.6 \n \n \n 1,060.1 \n \n \n - \n \n \n 1,060.1 \n \n \n \n \n Operating costs before amortisation of intangible assets, impairments and reversal of impairments of non-financial assets \n \n \n \n \n \n (902.8) \n \n \n (32.0) \n \n \n (934.8) \n \n \n (936.8) \n \n \n (18.2) \n \n \n (955.0) \n \n \n \n \n Profit from operations before amortisation of intangible assets, impairments and reversal of impairments of non-financial assets \n \n \n 3 \n \n \n 93.8 \n \n \n (32.0) \n \n \n 61.8 \n \n \n 123.3 \n \n \n (18.2) \n \n \n 105.1 \n \n \n \n \n Amortisation of intangible assets \n \n \n \n \n \n (1.0) \n \n \n - \n \n \n (1.0) \n \n \n (1.7) \n \n \n - \n \n \n (1.7) \n \n \n \n \n Impairment of non-financial assets \n \n \n 4 \n \n \n - \n \n \n (15.6) \n \n \n (15.6) \n \n \n - \n \n \n (4.2) \n \n \n (4.2) \n \n \n \n \n Reversal of impairments of non-financial assets \n \n \n 4 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Operating profit \n \n \n 3 \n \n \n 92.8 \n \n \n (47.6) \n \n \n 45.2 \n \n \n 121.6 \n \n \n (22.4) \n \n \n 99.2 \n \n \n \n \n Finance income \n \n \n \n \n \n 2.9 \n \n \n - \n \n \n 2.9 \n \n \n 2.6 \n \n \n - \n \n \n 2.6 \n \n \n \n \n Finance expense \n \n \n \n \n \n (25.1) \n \n \n - \n \n \n (25.1) \n \n \n (21.6) \n \n \n - \n \n \n (21.6) \n \n \n \n \n Net financing costs \n \n \n 5 \n \n \n (22.2) \n \n \n - \n \n \n (22.2) \n \n \n (19.0) \n \n \n - \n \n \n (19.0) \n \n \n \n \n Profit before taxation \n \n \n \n \n \n 70.6 \n \n \n (47.6) \n \n \n 23.0 \n \n \n 102.6 \n \n \n (22.4) \n \n \n 80.2 \n \n \n \n \n Income tax expense \n \n \n 6 \n \n \n (19.4) \n \n \n 1.5 \n \n \n (17.9) \n \n \n (27.0) \n \n \n 2.3 \n \n \n (24.7) \n \n \n \n \n Profit from continuing operations \n \n \n \n \n \n 51.2 \n \n \n (46.1) \n \n \n 5.1 \n \n \n 75.6 \n \n \n (20.1) \n \n \n 55.5 \n \n \n \n \n Profit from discontinued operations \n \n \n 7 \n \n \n 3.8 \n \n \n 19.9 \n \n \n 23.7 \n \n \n 3.7 \n \n \n (0.4) \n \n \n 3.3 \n \n \n \n \n Profit for the year \n \n \n \n \n \n 55.0 \n \n \n (26.2) \n \n \n 28.8 \n \n \n 79.3 \n \n \n (20.5) \n \n \n 58.8 \n \n \n \n \n Profit for the year attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n        Shareholders of the Company \n \n \n \n \n \n 47.3 \n \n \n (26.2) \n \n \n 21.1 \n \n \n 70.8 \n \n \n (20.5) \n \n \n 50.3 \n \n \n \n \n        Non-controlling interests \n \n \n \n \n \n 7.7 \n \n \n - \n \n \n 7.7 \n \n \n 8.5 \n \n \n - \n \n \n 8.5 \n \n \n \n \n Profit for the year \n \n \n \n \n \n 55.0 \n \n \n (26.2) \n \n \n 28.8 \n \n \n 79.3 \n \n \n (20.5) \n \n \n 58.8 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings per share \n \n \n 8 \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Continuing and discontinued operations \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share \n \n \n \n \n \n   \n \n \n   \n \n \n 7.5p \n \n \n \n \n \n \n \n \n 17.7p \n \n \n \n \n Diluted earnings per share \n \n \n \n \n \n   \n \n \n   \n \n \n 7.5p \n \n \n \n \n \n \n \n \n 17.5p \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Continuing operations \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share \n \n \n \n \n \n   \n \n \n   \n \n \n (1.0)p \n \n \n \n \n \n \n \n \n 16.5p \n \n \n \n \n Diluted earnings per share \n \n \n \n \n \n   \n \n \n   \n \n \n (0.9)p \n \n \n \n \n \n \n \n \n 16.4p \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Dividends 3 \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interim dividend                 - pence \n \n \n \n \n \n   \n \n \n   \n \n \n 5.4p \n \n \n \n \n \n \n \n \n 5.4p \n \n \n \n \n                                            - £m \n \n \n \n \n \n   \n \n \n   \n \n \n 15.0 \n \n \n \n \n \n \n \n \n 15.4 \n \n \n \n \n Proposed final dividend     - pence \n \n \n \n \n \n   \n \n \n   \n \n \n 6.8p \n \n \n \n \n \n \n \n \n 6.8p \n \n \n \n \n                                            - £m \n \n \n \n \n \n \n \n \n \n \n \n 18.8 \n \n \n \n \n \n \n \n \n 19.3 \n \n \n \n \n 1. The Group disposed of the majority of its MMS business in 2025. The disposal group formed  part of the Thermal Products segment and has been classified as a discontinued operation under IFRS 5. Financial results for the year ended 31 December 2024 have been restated to present the results of the disposal group as discontinued operations. \n 2. Details of specific adjusting items are given in Note 4 to the condensed consolidated financial statements. \n 3. The proposed final dividend is based upon the number of Ordinary shares outstanding at the balance sheet date. \n   \n   \n   \n Consolidated statement of comprehensive income \n \n \n \n \n \n \n \n   \n \n \n Year ended 31 December 2025 \n \n \n Restated        Year ended 31 December 2024 1 \n \n \n \n \n \n \n \n Note \n \n \n £m \n \n \n £m \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Profit for the year \n \n \n \n \n \n 28.8 \n \n \n 58.8 \n \n \n \n \n Other comprehensive expense: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Items that will not be reclassified subsequently to income statement: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Remeasurement (loss)/gain on defined benefit plans \n \n \n 15 \n \n \n (0.1) \n \n \n 1.3 \n \n \n \n \n Tax effect of components of other comprehensive income not reclassified \n \n \n 6 \n \n \n (0.1) \n \n \n (0.6) \n \n \n \n \n \n \n \n \n \n \n (0.2)  \n \n \n 0.7 \n \n \n \n \n Items that may be reclassified subsequently to income statement: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Foreign exchange translation differences \n \n \n \n \n \n (23.2) \n \n \n (11.0) \n \n \n \n \n Cash flow hedges: \n \n \n \n \n \n \n \n \n \n \n \n \n \n      Change in fair value \n \n \n \n \n \n 0.4 \n \n \n (0.3) \n \n \n \n \n      Transferred to income statement \n \n \n \n \n \n 0.4 \n \n \n (1.0) \n \n \n \n \n Net investment hedges: \n \n \n \n \n \n \n \n \n \n \n \n \n \n      Change in fair value \n \n \n \n \n \n 2.9 \n \n \n 1.7 \n \n \n \n \n \n \n \n \n \n \n (19.5) \n \n \n (10.6) \n \n \n \n \n Total other comprehensive expense \n \n \n \n \n \n (19.7) \n \n \n (9.9) \n \n \n \n \n Total comprehensive income \n \n \n \n \n \n 9.1 \n \n \n 48.9 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Attributable to: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Shareholders of the Company \n \n \n \n \n \n 3.5 \n \n \n 41.4 \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n 5.6 \n \n \n 7.5 \n \n \n \n \n   \n \n \n \n \n \n 9.1 \n \n \n 48.9 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income attributable to shareholders of the Company arising from: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Continuing operations \n \n \n \n \n \n (19.7) \n \n \n 38.5 \n \n \n \n \n Discontinued operations \n \n \n \n \n \n 23.2 \n \n \n 2.9 \n \n \n \n \n \n \n \n \n \n \n 3.5 \n \n \n 41.4 \n \n \n \n \n 1. The Group disposed of the majority of its MMS business in 2025. The disposal group formed  part of the Thermal Products segment and has been classified as a discontinued operation under IFRS 5. Financial results for the year ended 31 December 2024 have been restated to present the results of the disposal group as discontinued operations. \n   \n   \n   \n Consolidated balance sheet \n \n \n \n \n \n \n \n Note \n \n \n As at \n 31 December 2025 \n£m \n \n \n As at  \n 31 December \n 2024 \n£m \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Property, plant and equipment \n \n \n 9 \n \n \n 326.0 \n \n \n 344.9 \n \n \n \n \n Right-of-use assets \n \n \n 10 \n \n \n 36.4 \n \n \n 32.5 \n \n \n \n \n Intangible assets: goodwill \n \n \n 11 \n \n \n 163.7 \n \n \n 176.9 \n \n \n \n \n Intangible assets: other \n \n \n 11 \n \n \n 3.2 \n \n \n 3.0 \n \n \n \n \n Investments \n \n \n 12 \n \n \n 0.5 \n \n \n 2.0 \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n 3.1 \n \n \n 3.6 \n \n \n \n \n Employee benefits: pensions \n \n \n 15 \n \n \n 12.4 \n \n \n 13.0 \n \n \n \n \n Deferred tax assets \n \n \n \n \n \n 23.2 \n \n \n 21.4 \n \n \n \n \n Total non-current assets \n \n \n \n \n \n 568.5 \n \n \n 597.3 \n \n \n \n \n Inventories \n \n \n \n \n \n 146.5 \n \n \n 165.9 \n \n \n \n \n Derivative financial assets \n \n \n 14 \n \n \n 2.0 \n \n \n 1.2 \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n 139.1 \n \n \n 189.6 \n \n \n \n \n Investments \n \n \n 12 \n \n \n 47.2 \n \n \n - \n \n \n \n \n Current tax receivable \n \n \n \n \n \n 2.2 \n \n \n 2.3 \n \n \n \n \n Cash and cash equivalents \n \n \n 13 \n \n \n 79.3 \n \n \n 120.8 \n \n \n \n \n Total current assets \n \n \n \n \n \n 416.3 \n \n \n 479.8 \n \n \n \n \n Total assets \n \n \n \n \n \n 984.8 \n \n \n 1,077.1 \n \n \n \n \n Liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Borrowings \n \n \n \n \n \n 212.1 \n \n \n 337.7 \n \n \n \n \n Lease liabilities \n \n \n \n \n \n 38.1 \n \n \n 36.1 \n \n \n \n \n Employee benefits: pensions \n \n \n 15 \n \n \n 34.4 \n \n \n 34.5 \n \n \n \n \n Provisions \n \n \n 16 \n \n \n 9.9 \n \n \n 10.9 \n \n \n \n \n Non-trade payables \n \n \n \n \n \n 2.7 \n \n \n 2.8 \n \n \n \n \n Deferred tax liabilities \n \n \n \n \n \n 1.0 \n \n \n 2.7 \n \n \n \n \n Total non-current liabilities \n \n \n \n \n \n 298.2 \n \n \n 424.7 \n \n \n \n \n Borrowings and bank overdrafts \n \n \n \n \n \n 99.4 \n \n \n 9.3 \n \n \n \n \n Lease liabilities \n \n \n \n \n \n 11.1 \n \n \n 11.0 \n \n \n \n \n Trade and other payables \n \n \n \n \n \n 194.6 \n \n \n 204.1 \n \n \n \n \n Current tax payable \n \n \n \n \n \n 24.0 \n \n \n 26.6 \n \n \n \n \n Provisions \n \n \n 16 \n \n \n 8.1 \n \n \n 9.5 \n \n \n \n \n Derivative financial liabilities \n \n \n 14 \n \n \n 0.5 \n \n \n 2.6 \n \n \n \n \n Total current liabilities \n \n \n \n \n \n 337.7 \n \n \n 263.1 \n \n \n \n \n Total liabilities \n \n \n \n \n \n 635.9 \n \n \n 687.8 \n \n \n \n \n Total net assets \n \n \n \n \n \n 348.9 \n \n \n 389.3 \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n \n \n \n 69.2 \n \n \n 70.9 \n \n \n \n \n Share premium \n \n \n \n \n \n 111.7 \n \n \n 111.7 \n \n \n \n \n Reserves \n \n \n \n \n \n (13.7) \n \n \n (8.2) \n \n \n \n \n Retained earnings \n \n \n \n \n \n 149.4 \n \n \n 179.3 \n \n \n \n \n Total equity attributable to shareholders of the Company \n \n \n \n \n \n 316.6 \n \n \n 353.7 \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n 32.3 \n \n \n 35.6 \n \n \n \n \n Total equity \n \n \n \n \n \n 348.9 \n \n \n 389.3 \n \n \n \n \n   \n   \n   \n Consolidated statement of changes in equity \n \n \n \n \n \n \n \n Share capital \n£m \n \n \n Share premium \n£m \n \n \n Translation \n Reserve \n£m \n \n \n Hedging \n Reserve \n£m \n \n \n Fair value reserve \n£m \n \n \n Capital redemption reserve \n£m \n \n \n Other reserves \n£m \n \n \n Retained earnings \n£m \n \n \n Total parent equity \n£m \n \n \n Non-controlling interests \n£m \n \n \n Total \n Equity \n£m \n \n \n \n \n At 1 January 2024 \n \n \n 71.3 \n \n \n 111.7 \n \n \n (29.9) \n \n \n 1.1 \n \n \n (1.0) \n \n \n 35.7 \n \n \n 0.6 \n \n \n 170.8 \n \n \n 360.3 \n \n \n 38.3 \n \n \n 398.6 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 50.3 \n \n \n 50.3 \n \n \n 8.5 \n \n \n 58.8 \n \n \n \n \n Other comprehensive income/(expense): \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Remeasurement gain on defined benefit plans and related taxes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.7 \n \n \n 0.7 \n \n \n - \n \n \n 0.7 \n \n \n \n \n Foreign exchange differences and related taxes \n \n \n - \n \n \n - \n \n \n (10.0) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (10.0) \n \n \n (1.0) \n \n \n (11.0) \n \n \n \n \n Cash flow hedging fair value changes and transfers \n \n \n - \n \n \n - \n \n \n - \n \n \n (1.3) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1.3) \n \n \n - \n \n \n (1.3) \n \n \n \n \n Net investment hedging fair \n value changes and transfers \n \n \n - \n \n \n - \n \n \n 1.7 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1.7 \n \n \n - \n \n \n 1.7 \n \n \n \n \n Total other comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n (8.3) \n \n \n (1.3) \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.7 \n \n \n (8.9) \n \n \n (1.0) \n \n \n (9.9) \n \n \n \n \n Total comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n (8.3) \n \n \n (1.3) \n \n \n - \n \n \n - \n \n \n - \n \n \n 51.0 \n \n \n 41.4 \n \n \n 7.5 \n \n \n 48.9 \n \n \n \n \n Transactions with owners: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Dividends \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (34.5) \n \n \n (34.5) \n \n \n (8.1) \n \n \n (42.6) \n \n \n \n \n Equity-settled share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 2.8 \n \n \n 2.8 \n \n \n - \n \n \n 2.8 \n \n \n \n \n Own shares acquired for share incentive schemes (net) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (3.3) \n \n \n (3.3) \n \n \n - \n \n \n (3.3) \n \n \n \n \n Purchase of own shares for share buyback programme \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (10.0) \n \n \n - \n \n \n (10.0) \n \n \n - \n \n \n (10.0) \n \n \n \n \n Cancellation of own shares under share buyback programme \n \n \n (0.4) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.4 \n \n \n 4.5 \n \n \n (4.5) \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Purchase of non-controlling interest \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (3.0) \n \n \n (3.0) \n \n \n (2.1) \n \n \n (5.1) \n \n \n \n \n At 31 December 2024 \n \n \n 70.9 \n \n \n 111.7 \n \n \n (38.2) \n \n \n (0.2) \n \n \n (1.0) \n \n \n 36.1 \n \n \n (4.9) \n \n \n 179.3 \n \n \n 353.7 \n \n \n 35.6 \n \n \n 389.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 21.1 \n \n \n 21.1 \n \n \n 7.7 \n \n \n 28.8 \n \n \n \n \n Other comprehensive income/(expense): \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Remeasurement loss on defined benefit plans and related taxes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (0.2) \n \n \n (0.2) \n \n \n - \n \n \n (0.2) \n \n \n \n \n Foreign exchange differences and related taxes \n \n \n - \n \n \n - \n \n \n (21.1) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (21.1) \n \n \n (2.1) \n \n \n (23.2) \n \n \n \n \n Cash flow hedging fair value changes and transfers \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.8 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.8 \n \n \n - \n \n \n 0.8 \n \n \n \n \n Net investment hedging fair \n value changes and transfers \n \n \n - \n \n \n - \n \n \n 2.9 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 2.9 \n \n \n - \n \n \n 2.9 \n \n \n \n \n Total other comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n (18.2) \n \n \n 0.8 \n \n \n - \n \n \n - \n \n \n - \n \n \n (0.2) \n \n \n (17.6) \n \n \n (2.1) \n \n \n (19.7) \n \n \n \n \n Total comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n (18.2) \n \n \n 0.8 \n \n \n - \n \n \n - \n \n \n - \n \n \n 20.9 \n \n \n 3.5 \n \n \n 5.6 \n \n \n 9.1 \n \n \n \n \n Transactions with owners: \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Dividends \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (34.1) \n \n \n (34.1) \n \n \n (6.0) \n \n \n (40.1) \n \n \n \n \n Equity-settled share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1.9 \n \n \n 1.9 \n \n \n - \n \n \n 1.9 \n \n \n \n \n Own shares acquired for share incentive schemes (net) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (3.5) \n \n \n (3.5) \n \n \n - \n \n \n (3.5) \n \n \n \n \n Purchase of own shares for share buyback programme \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (10.0) \n \n \n - \n \n \n (10.0) \n \n \n - \n \n \n (10.0) \n \n \n \n \n Cancellation of own shares under share buyback programme \n \n \n (1.7) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1.7 \n \n \n 15.1 \n \n \n (15.1) \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Reclassification to income statement on disposal of business \n \n \n - \n \n \n - \n \n \n 5.1 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 5.1 \n \n \n (2.9) \n \n \n 2.2 \n \n \n \n \n At 31 December 2025 \n \n \n 69.2 \n \n \n 111.7 \n \n \n (51.3) \n \n \n 0.6 \n \n \n (1.0) \n \n \n 37.8 \n \n \n 0.2 \n \n \n 149.4 \n \n \n 316.6 \n \n \n 32.3 \n \n \n 348.9 \n \n \n \n \n   \n   \n Consolidated statement of cash flows \n \n \n \n \n \n \n \n Note \n \n \n Year ended 31 December 2025 \n£m \n \n \n Restated 1 \nYear ended 31 December 2024 \n£m \n \n \n \n \n Operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the year from continuing operations \n \n \n \n \n \n 5.1 \n \n \n 55.5 \n \n \n \n \n Profit for the year from discontinued operations \n \n \n 7 \n \n \n 23.7 \n \n \n 3.3 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Adjustments for: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n      Depreciation - property, plant and equipment \n \n \n \n \n \n 33.6 \n \n \n 34.1 \n \n \n \n \n      Depreciation - right-of-use assets \n \n \n \n \n \n 8.4 \n \n \n 8.6 \n \n \n \n \n      Amortisation \n \n \n \n \n \n 1.0 \n \n \n 1.7 \n \n \n \n \n      Net financing costs \n \n \n 5 \n \n \n 22.2 \n \n \n 19.0 \n \n \n \n \n      Profit on disposal of business \n \n \n \n \n \n (28.5) \n \n \n - \n \n \n \n \n      Non-cash specific adjusting items included in operating profit \n \n \n \n \n \n 18.4 \n \n \n 4.5 \n \n \n \n \n      Fair value loss/(gain) on equity instruments held at FVTPL \n \n \n \n \n \n 7.3 \n \n \n (1.9) \n \n \n \n \n      Loss/(profit) on sale of property, plant and equipment \n \n \n \n \n \n 0.5 \n \n \n (3.0) \n \n \n \n \n      Income tax expense \n \n \n 6,7 \n \n \n 27.1 \n \n \n 25.9 \n \n \n \n \n      Equity-settled share-based payment expense \n \n \n \n \n \n 2.0 \n \n \n 2.8 \n \n \n \n \n Cash generated from operations before changes in working capital and provisions \n \n \n \n \n \n 120.8 \n \n \n 150.5 \n \n \n \n \n Decrease/(increase) in trade and other receivables \n \n \n \n \n \n 34.2 \n \n \n (0.5) \n \n \n \n \n Decrease in inventories \n \n \n \n \n \n 6.0 \n \n \n 6.7 \n \n \n \n \n Increase in trade and other payables \n \n \n \n \n \n 10.2 \n \n \n 8.4 \n \n \n \n \n Decrease in provisions \n \n \n \n \n \n (2.0) \n \n \n (1.0) \n \n \n \n \n Payments to defined benefit pension plans (net of IAS 19 pension charges) \n \n \n 15 \n \n \n (0.6) \n \n \n (1.1) \n \n \n \n \n Cash generated from operations \n \n \n \n \n \n 168.6 \n \n \n 163.0 \n \n \n \n \n Interest paid - borrowings and overdrafts \n \n \n   \n \n \n (21.6) \n \n \n (17.9) \n \n \n \n \n Interest paid - lease liabilities \n \n \n   \n \n \n (2.8) \n \n \n (2.6) \n \n \n \n \n Income tax paid \n \n \n   \n \n \n (26.4) \n \n \n (29.2) \n \n \n \n \n Net cash from operating activities \n \n \n   \n \n \n 117.8 \n \n \n 113.3 \n \n \n \n \n Investing activities \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Purchase of property, plant and equipment and software \n \n \n \n \n \n (67.1) \n \n \n (96.1) \n \n \n \n \n Purchase of investments \n \n \n   \n \n \n (0.4) \n \n \n (0.1) \n \n \n \n \n Proceeds from sale of property, plant and equipment \n \n \n   \n \n \n 1.0 \n \n \n 5.4 \n \n \n \n \n Grants received for purchase of equipment \n \n \n   \n \n \n 0.2 \n \n \n 0.5 \n \n \n \n \n Interest received \n \n \n   \n \n \n 2.8 \n \n \n 2.6 \n \n \n \n \n Disposal of investments \n \n \n \n \n \n 1.3 \n \n \n 1.7 \n \n \n \n \n Disposal of business \n \n \n \n \n \n 17.4 \n \n \n - \n \n \n \n \n Tax paid on disposal of business \n \n \n \n \n \n (7.4) \n \n \n - \n \n \n \n \n Net cash from investing activities \n \n \n   \n \n \n (52.2) \n \n \n (86.0) \n \n \n \n \n Financing activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Purchase of own shares for share incentive schemes \n \n \n \n \n \n (3.6) \n \n \n (3.5) \n \n \n \n \n Proceeds from exercise of share options \n \n \n \n \n \n - \n \n \n 0.2 \n \n \n \n \n Purchase of own shares for share buyback programme \n \n \n \n \n \n (15.2) \n \n \n (4.7) \n \n \n \n \n Purchase of non-controlling interest \n \n \n \n \n \n - \n \n \n (5.1) \n \n \n \n \n Increase in borrowings \n \n \n \n \n \n 38.8 \n \n \n 121.3 \n \n \n \n \n Repayment of borrowings \n \n \n \n \n \n (70.1) \n \n \n (88.0) \n \n \n \n \n Payment of lease liabilities \n \n \n \n \n \n (9.3) \n \n \n (10.6) \n \n \n \n \n Dividends paid to shareholders of the Company \n \n \n \n \n \n (34.1) \n \n \n (34.5) \n \n \n \n \n Dividends paid to non-controlling interests \n \n \n \n \n \n (6.0) \n \n \n (8.1) \n \n \n \n \n Net cash from financing activities \n \n \n \n \n \n (99.5) \n \n \n (33.0) \n \n \n \n \n Net decrease in cash and cash equivalents and overdrafts \n \n \n \n \n \n (33.9) \n \n \n (5.7) \n \n \n \n \n Cash and cash equivalents at start of the year \n \n \n \n \n \n 111.5 \n \n \n 124.5 \n \n \n \n \n Effect of exchange rate fluctuations on cash held \n \n \n \n \n \n (3.4) \n \n \n (7.3) \n \n \n \n \n Net cash and cash equivalents at year end \n \n \n \n \n \n 74.2 \n \n \n 111.5 \n \n \n \n \n 1. The Group disposed of the majority of its MMS business in 2025. The disposal group formed  part of the Thermal Products segment and has been classified as a discontinued operation under IFRS 5. Financial results for the year ended 31 December 2024 have been restated to present the results of the disposal group as discontinued operations. \n   \n   \n   \n Notes to the condensed consolidated financial statements \n   \n Note 1. Basis of preparation, changes in accounting policies and areas of significant judgement and estimate       \n These condensed consolidated financial statements do not constitute statutory accounts as defined by Section 434 of the Companies Act 2006 but have been extracted from the audited Group financial statements for the year ended 31 December 2025. The Group financial results for the year ended 31 December 2025 have been audited and will be delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act. \n   \n The Group financial statements are prepared in accordance with the Companies Act 2006 and International Financial Reporting Standards ('IFRS') as adopted by the UK. The financial statements are prepared on a going concern basis using the historical cost, modified for the revaluation of certain financial assets and financial liabilities (including derivatives). The accounting policies in the Group financial statements have been applied consistently to these condensed consolidated financial statements. \n   \n Critical accounting judgements and key sources of estimation uncertainty \n In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Final outcomes may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. \n   \n Critical accounting judgements \n Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the consolidated financial statements is included in the following Notes:  \n   \n Note 4: Specific adjusting items \n The Group separately presents specific adjusting items in the consolidated income statement which, in the Directors' judgement, need to be disclosed separately by virtue of their size and incidence in order for users of the consolidated financial statements to obtain an alternative understanding of the financial information and the underlying performance of the business. These are items which occur infrequently and include (but are not limited to): \n   \n \n \n \n \n ·      \n \n \n Individual restructuring projects which are material or relate to the closure of a part of the business and are not expected to recur; \n \n \n \n \n ·      \n \n \n Impairment of non-financial assets which are material; \n \n \n \n \n ·      \n \n \n Gains or losses on disposal or exit of businesses; \n \n \n \n \n ·      \n \n \n Significant costs incurred as part of the integration of an acquired business; \n \n \n \n \n ·      \n \n \n Gains or losses arising on significant changes to or closures of defined benefit pension plans; \n \n \n \n \n ·      \n \n \n Expenses related to the design, configuration, customisation and implementation of a Global ERP system; and \n \n \n \n \n ·      \n \n \n Changes in the fair value and associated foreign exchange on shares in Foseco India Ltd ('FIL'). \n \n \n \n \n   \n Determining whether an item is part of specific adjusting items requires judgement to determine the nature and the intention of the transaction. \n             \n Note 16: Provisions and contingent liabilities                                                                                            \n Due to the nature of its operations, the Group holds provisions for its environmental obligations. Judgement is needed in determining whether a contingent liability has crystallised into a provision. Management assesses whether there is sufficient information to determine that an environmental liability exists and whether it is possible to estimate with sufficient reliability what the cost of remediation is likely to be. For environmental remediation matters, this tends to be at the point in time when a remediation feasibility study has been completed, or sufficient information becomes available through the study to estimate the costs of remediation. \n   \n The Group will recognise a legal provision at the point when the outcome of a legal matter can be reliably estimated. Estimates are based on past experience of similar issues, professional advice received and the Group's assessment of the most likely outcome. The timing of the utilisation of these provisions is frequently uncertain, reflecting the complexity of issues and the outcome of various court proceedings and associated negotiations.                                  \n   \n Key sources of estimation uncertainty \n The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are included in the Notes below. \n   \n Note 15: Pensions and other post-retirement employee benefits: key actuarial assumptions \n The principal actuarial assumptions applied to pensions are shown in Note 15. The actuarial evaluation of pension assets and liabilities is based on assumptions in respect of inflation, future salary increases, discount rates, returns on investments and mortality rates. Relatively small changes in the assumptions underlying the actuarial valuations of pension schemes can have a significant impact on the net pension liability included in the balance sheet. \n   \n Climate change-related risks and opportunities \n Management has assessed the potential finan...

View stock analysis, news, and events for Morgan Advanced Materials Plc