Morgan Advanced Materials

History

2023: Loss of $14.51 million due to elimination of the consequences of a powerful cyber attack

In early February 2023, the industrial British manufacturer of materials for chips Morgan Advanced Materials admitted that $14.51 million due to the elimination of the consequences of a powerful cyber attack. Shares fell 7.5% after the company's announcement.

Morgan Advanced Materials reported that as a result of the attack, some of its IT systems turned out to be unrecoverable, and the company was forced to return to manual process control at a number of enterprises. The total cost of eliminating the consequences of the incident could be up to $14.51 million, Morgan Advanced Materials said, cutting its operating profit forecast for the entire year by 10-15%.

British manufacturer of materials for chips lost $14.51 million due to the elimination of the consequences of a powerful cyber attack

We are seeing more and more companies reporting cyber threats. We learn that recovering from attacks can be challenging. Modern production methods can require a huge number of coordinated operations to be effective. Restarting these businesses isn't just a switch click, and the cost of restoring optimal production schemes can be significant, commented HL Select fund manager Steve Clayton.

In January 2023, a number of Morgan Advanced Materials businesses experienced a delay in resuming production and shipping due to a cybersecurity incident. The incident also forced the company to delay its performance report amid disruptions to auditors. All relevant UK regulatory authorities were informed of the incident as early as January 2023.

According to Fyodor Chunizhekov, an analyst at the Positive Technologies research group, the growth of cyber attacks on industrial enterprises is due to the activity of ransomware viruses. So, according to him, 76% of attacks on the industry were carried out using malware, among which the ransomware 61% turned out to be the leader^[1]

Notes