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(Alliance News) -Â Specialty chemicals firm Johnson Matthey PLC on Thursday recorded annual revenue growth but a dip in profit, though said its new financial year has started well.
Revenue for the financial year ended March 31 grew 7.5% to GBP15.67 billion from GBP14.58 billion the year before, but pretax profit fell 22% to GBP238 million from GBP305 million.
The company recorded impairment and restructuring charges of GBP171 million, up from GBP140 million the prior year. These were "associated with efficiency initiatives to transform our organisation into a more simple and efficient group."
Johnson Matthey said that after a "challenging" first half, it rebounded in the latter six months. This was aided by a recovery in its end markets and higher precious metal prices.
This second half improvement has continued into the new financial year, with the company saying the year ending 2022 has "started well". However, it did note that end market demand remains uncertain and there is the potential for supply chain disruption for some of its automotive customers.
Looking ahead, Johnson Matthey said that should precious metals remain at their "current high level", the company will see a net benefit of GBP120 million for the current financial year. It also said capital expenditure will amount to up to GBP600 million, and it expects a GBP25 million profit hit due to foreign exchange movements.
It expects low to mid-teens growth in underlying operating performance at constant precious metal prices and constant currency for the year ahead. Underlying operating profit for the recently-ended year fell 5% at constant exchange rates to GBP504 million.
"As the world aims to build back greener as we come out of the pandemic, our technologies have never been more relevant. We are already seeing this in the continued recovery of our key end markets and our strong start to the current year," said Chief Executive Robert MacLeod.
"Whilst our markets may remain uncertain as the pandemic continues to affect parts of the world differently we nonetheless expect low to mid-teens growth in underlying operating performance in the coming year, before the anticipated benefit of currently strong precious metal prices."
It will pay a total dividend of 70.0 pence for the recently-ended year, up 26% on the 55.625p paid out for the year before. Johnson Matthey added that it anticipates restoring future dividend payments to pre-pandemic levels "when circumstances permit". For the 2019 financial year, it paid out 85.5p.
Shares were down 2.3% at 3,079.00p in London on Thursday.
By Lucy Heming;Â lucyheming@alliancenews.com
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