(Alliance News) - Specialty chemicals firm Johnson Matthey PLC on Thursday reaffirmed annual guidance, though said in the longer term it wants to keep bolstering shareholder returns.
Johnson Matthey is holding a capital markets day on Thursday, where it outlined three medium-term targets: mid-to-high single digit compound annual growth rate in earnings per share, a return on invested capital of 20%, and a continued "progressive" dividend.
For its year ended March 31, FTSE 100 Johnson Matthey registered 10% earnings per share growth, a ROIC of 16.4%, and a 7% dividend increase to 85.5 pence.
Guidance for its year ending March 2020 is unchanged, as it is for the half year.
"We expect growth in operating performance at constant rates to be within our medium-term guidance of mid-to-high single-digit growth," said Johnson Matthey.
"In terms of phasing, we expect performance to be more heavily weighted to the second half. By sector, Clean Air performance is expected to be slightly below the prior year. This is expected to be compensated by better performance in Efficient Natural Resources driven by actions taken to improve efficiency, and other ongoing efficiencies across the group."
The chemical and platinum firm sees capital expenditure at GBP500 million for the year, having spent GBP323 million in the year to this past March.
Looking segmentally, Johnson Matthey said expects mid-single-digit growth in Clean Air a year to 2025, and "sustained" growth over the next decade, boosted by new legislation in China and India.
Johnson Matthey has upgraded guidance for Efficient Natural Resources following a period of restructuring and reorganisation. It now sees mid-to-high single-digit growth in operating performance to 2025.
The Health unit is to deliver "breakout" growth up to 2025, while in the New Markets segment, Johnson Matthey is making particularly strong growth in battery materials.
Chief Executive Robert MacLeod said: "We are delivering on our strategy and will continue to execute with determination. As the world changes ever faster, we are increasingly excited by the significant opportunities we see for sustained growth and value creation."
Shares were 2.2% higher in early trade in London on Thursday at a price of 3,193.00 pence each.
Johnson Matthey (JMAT)