(Corrects first bullet point to ... To consider spending ...
not ... To spend ...)
* To consider spending up to 50 mln stg on acquisitions in
next 12 months - CFO
* Sees 5-6 pct drop in full-year revenue at current exchange
* Shares flat in early trading
By Noor Zainab Hussain
May 9 Morgan Advanced Materials Plc, a
maker of carbon and ceramic-based insulation products, is
seeking acquisitions in the next 12 months, the company's chief
financial officer told Reuters.
The company, which expects the strong pound to hit revenue
this year, will consider spending between 10 million and 50
million pounds ($17 million-$85 million) to buy complementary
technology and applications, said CFO Kevin Dangerfield.
"We do have an active pipeline of potential targets and we
have a good balance sheet to help us in terms of debt
financing," Dangerfield said in an interview.
Morgan Advanced Materials had cash and cash equivalents of
76 million pounds at the end of 2013.
The British company, which makes carbon brushes,
fire-resistant blankets and heat shields, also said on Friday
that it expects a 5-6 percent drop in full-year revenue if
current exchange rates persist throughout the year.
Morgan Advanced Materials generates most of its revenue
outside the UK and has been negatively affected by a strong
pound. Sterling rose almost 10 percent against the U.S. dollar
in the year to March 31, 2014.
North America accounts for about 37 percent of the company's
total revenue. Europe contributes 36 percent and Asia 27
The FTSE-250 company said year-to-date revenue was broadly
flat on a constant currency basis. Orders at the end of April
were 5 percent higher than a year earlier.
Products made by Morgan Advanced Materials are used in
medical instruments, aerospace, power generation and fire
Shares in the Windsor-based company were flat in early
trading on the London Stock Exchange on Friday. The stock closed
at 337.5 pence on Thursday.
($1 = 0.5899 British Pounds)
(Additional reporting by Roshni Menon and Aashika Jain in
Bangalore; Editing by Robin Paxton)