Johnson Matthey bottom line lifted by benign UK tax regime
Sustainable tech firm Johnson Matthey said its annual results were in line with expectations yesterday as falling revenues failed to stop growth at the bottom line.
The UK-based company, which is the world’s largest of autocatalysts, reported strong growth in sales of its emission control technologies and processing technologies. However, these gains were offset by weak growth in its precious metals division and increased losses in new businesses. Johnson Matthey said it expected performance in precious metals to continue to suffer in the new financial year as a result of the sale of its gold and silver refining business and due to difficult trading conditions.
The company also reported ballooning debt, which climbed from £792m to £994m. The firm attributed this to an increase in working capital brought about by business growth and higher precious metal inventories.
Overall revenues for the company declined 10 per cent to £10bn. However positive changes in underlying taxation, specifically corporation tax, sent pre-tax profits up three per cent to £440m.
Chief executive Robert MacLeod said the firm will continue to invest in research and is well positioned to deliver growth for shareholders.