JOHNSON MATTHEY PLC The COVID-19 pandemic has created great uncertainty for businesses and society globally.
Our priority has been the safety of our people, customers, suppliers and the communities in which we operate. It has been a challenging period but the steps we have taken in recent years to create a more simple, agile and efficient business, coupled with the dedication of all my colleagues across the whole of
In
Across the group we have made structural improvements to our operating model to drive efficiency and increase capability, and are already starting to see the benefits. Our actions include executing on our targeted annualised cost savings of c.
Activity in autos and other key markets has improved since the beginning of the COVID-19 pandemic and we expect a materially stronger second half in comparison to the first half of this year. However, the path of recovery remains uncertain and we are not providing quantitative guidance for the group overall for the year ending
I am excited by our medium term growth prospects driven by accelerating global trends and we are purpose led to reduce the impact of climate change. We are investing for our future and remain focused on executing our growth opportunities including battery materials, fuel cells and our hydrogen production technologies.
Reported results
Reported revenue increased 2% driven by higher average precious metal prices
Reported operating profit declined 74% driven by lower demand in
Reported EPS declined 87%, reflecting lower reported operating profit and higher net finance charges
Cash inflow from operating activities was
Underlying performance-1
Sales declined 20%, primarily driven by weaker demand in
Underlying operating profit declined 42% primarily driven by
Underlying EPS declined 50% reflecting lower operating profit and higher net finance charges
Capital expenditure of
Free cash flow improved to
Strong balance sheet maintained with net debt of
Return on invested capital (ROIC) decreased to 10.4% primarily due to lower operating profit
Dividend
The group maintains a strong balance sheet, good access to liquidity and is cash generative. In a challenging period, operating performance improved progressively through the first half, although remains below the prior year with heightened levels of uncertainty persisting. In considering all these factors and recognising the importance of dividends to shareholders, the board has approved an interim dividend of
The board remains committed to a progressive dividend and anticipates restoring future dividend payments to levels seen prior to the COVID-19 pandemic when circumstances permit. The interim dividend will be paid to shareholders on
Outlook for the year ending
Activity in autos and other key markets has improved since the COVID-19 pandemic began earlier this year and we expect a materially stronger second half in comparison to the first half of this year. However, the path of recovery remains uncertain and we are not providing quantitative guidance for the group overall for the year ending
Efficient Natural Resources full year operating performance is expected to be below the prior year, although we currently expect our usual seasonality and a stronger second half. Catalyst Technologies is likely to be below the prior year due to weaker demand whilst PGM Services is expected to be above the prior year, benefiting from higher average precious metal prices
In Health we continue to make progress with our new customer contracts for active pharmaceutical ingredients used in generic opioid addiction therapies and our work with innovator customers which will drive future growth. Consequently, we expect full year operating performance to be above the level of the prior year
In New Markets we expect operating performance to be above the level of the prior year
We continue to drive efficiency and are making good progress against our targeted annualised cost savings of c.
Appointment of interim Chief Financial Officer
As previously announced,
Contact:
Tel: 020 7269 8241
Vara consensus for underlying operating profit in the first half 2020/21 was
Underlying is before profit or loss on disposal of businesses, gain or loss on significant legal proceedings together with associated legal costs, amortisation of acquired intangibles, major impairment and restructuring charges and, where relevant, related tax effects.
Unless otherwise stated, sales and operating profit commentary refers to performance at constant rates. Growth at constant rates excludes the translation impact of foreign exchange movements, with 2019/20 results converted at 2020/21 average exchange rates.
Revenue excluding sales of precious metals to customers and the precious metal content of products sold to customers.
eLNO is a trademark of
Contact:
Tel: +32 2 709 2098
Fax: +32 2 709 2301
(C) 2020 Electronic News Publishing, source
