UPDATE 1-Morgan Advanced seeks acquisitions, strong pound hits revenue

(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 rates

* Shares flat in early trading

By Noor Zainab Hussain

May 9 (Reuters) - Morgan Advanced Materials Plc (Other OTC: MCRUF - news) , 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 percent.

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 protection systems.

Shares in the Windsor-based company were flat in early trading on the London Stock Exchange (Other OTC: LDNXF - news) 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)