Morgan Crucible gives punchy growth guidance

The strong first-half performance by materials manufacturer Morgan Crucible continued in the third quarter, with the group enjoying strong cash generation.

The group said that the ratio of net debt to earnings before interest, tax, debt and amortisation (EBITDA) is now set to fall below 1.3:1 by the end of the year from 1.7:1 at the end of 2010.

The Ceramics division is still seeing good orders and momentum, while the Engineering Materials division's overall performance has continued in line with expectations despite some challenges from the macroeconomic environment, particularly in Europe. Growth initiatives combined with efficiency drives and migration to low cost manufacturing are continuing to deliver positive results, the group said.

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Windsor based Morgan Crucible has a history going back 155 years and makes a huge variety of high-tech materials including ballistic armour for the defence sector and the central cores of wind turbines.

It has had an impressive year on the markets, with its value growing by 27% in the last 12 months.

In the outlook statement Morgan Crucible acknowledges the difficult macro situation but says its work in emerging markets and in developing new products means it should be able to make further progress.

The group said it is on track to make substantial progress in 2011 towards all three of its stated 2013 financial targets with significant improvements in profit before tax, underlying operating profit margin and Operating Return on Capital Employed

At 8.17am Morgan Crucibles's shares were up 2.42%.

BS