Taking a look at what the Johnson Matthey results mean for investors
Johnson Matthey profit slides but dividend raised by 7%
- The FTSE 100-listed chemicals company enjoyed a rise in its full year sales on a constant exchange rate basis
- While profits slightly dipped, the group has hiked its dividend, reflecting confidence in the outlook
- The Share Centre recommends Johnson Matthey as a ‘hold’ for investors seeking a balanced portfolio with a medium level of risk
Chemicals and precious metals group Johnson Matthey this morning reported a 7% rise in underlying full year sales at constant exchange rates to £3.8bn, which was slightly ahead of expectations. Pre-tax profit dropped 1% to £486m but the dividend was raised 7% and the company said it expects mid to high single digit growth in operating performance in the new financial year.
The Clean Air business saw the best growth within the group with sales up 9% and the company revealed that it has made significant progress with the development of its new lithium nickel oxide battery technology. The latter is aimed at the electric vehicle market and could increase performance levels by 30%.
The results were well received and the shares rose 2% in early trading. They have already outperformed the market this year and are trading near to their all-time high. While the results show a solid performance and prospects appear good the shares do not appear especially good value so we continue with our hold recommendation.
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