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Johnson Matthey PLC on Thursday said it expects a ‘material’ step-up in annual cash flow as it reported underlying profit growth at the half-year stage. The London-based speciality chemicals and sustainable technologies company said pretax profit slumped to £86 million in the six months to September from £506 million the year prior. The prior year period included a £484 million profit booked on the sales of its Battery Systems and Medical Device Components businesses, plus the disposal of associated land and buildings. On an underlying basis, pretax profit rose 33% to £110 million from £83 million with underlying basic earnings per share up 40% to 51.2 pence from 36.6p. Underlying operating profit rose 34% to £142 million in the half-year from £106 million the year prior. Revenue edged up 0.8% to £5.35 billion from £5.31 billion. Good progress has been made in implementing a cash-focused business model, Johnson Matthey said, with a significant improvement in first half free cash flow and an expected ‘material step’ up for the full year. The company reported free cash flow of £4 million in the half-year compared to a £165 million outflow in the prior year. Clean Air delivered a 12.4% margin, up 200 basis points year-on-year, and is on track to achieve margin guidance of 14 to 15% in 2025 to 2026, the firm added. Looking ahead, the company continues to expect to deliver growth in full year underlying operating profit at the higher end of a mid single digit percentage range, at constant platinum group metals and and currency. In the financial year to March 2025, Johnson Matthey reported underlying operating profit of £389 million. Over the medium-term to 2027 to 2028, the firm continues to expect at least mid single digit compound annual growth in pro forma operating profit. Johnson Matthey said the £1.8 billion Catalyst Technologies sale is on track to complete by first half of calendar year 2026. The dividend was maintained at 22.0p per share. In addition, Johnson Matthey announced the appointment of Alastair Judge as chief financial officer and executive director, effective from January 1, 2026. On the same date, Richard Pike, the current CFO, will assume the role of chief operating officer. Judge joined Johnson Matthey in July 2018 and has held several leadership positions, including Finance Director and Interim Chief Executive Officer of Clean Air, Chief Executive Officer of PGM Services and more recently, Head of Strategy and Operations. Shares in Johnson Matthey fell 4.0% to 2,004.00 pence each in London on Thursday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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