REG - Johnson Matthey PLC - Johnson Matthey full year results
25/05/2023 07:00
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RNS Number : 5766A Johnson Matthey PLC 25 May 2023
Preliminary results for the
year ended 31(st) March 2023
25(th) May 2023
Catalysing the net zero transition to drive value creation
Continued progress on strategic execution
· Results in line with expectations albeit below the prior year, against a
challenging macroeconomic backdrop
· Delivering on strategic milestones
· Executing on transformation: delivered c.£45 million cost savings in the year
and on track for at least £150 million annualised cost savings by 2024/25
· Business wins in Catalyst Technologies and Hydrogen Technologies underpin
confidence in strong growth prospects
· Strong cash generation and platform wins in Clean Air support long-term £4
billion+ cash generation target
· Accelerating demand for our energy transition solutions supported by
government-led investment programmes
Reported results Underlying results (continuing)¹
Year ended % Year ended % % change, constant FX rates
31(st) March
change
31(st) March
change
2023 2022 2023 2022
Revenue £m 14,933 16,025 -7
Sales excluding £m 4,201 3,778 +11 +6
precious metals³
Operating profit £m 406 255 +59 465 553 -16 -21
Profit before tax (continuing) £m 344 195 +76 404 493 -18
Profit after tax (continuing) £m 264 116 n/a 326 407 -20
Basic earnings per share (continuing) pence 144.2 60.9 n/a 178.6 213.2 -16
Ordinary dividend pence 77.0 77.0 -
per share
Underlying performance - continuing operations¹(,)²
· Sales of £4.2 billion, up 6%, with higher prices to partially recover cost
inflation, partly offset by lower average PGM prices
· Underlying operating profit of £465 million, down 21%. Almost half was due to
lower average PGM prices with the remainder largely due to cost inflation and
lower volumes in PGM Services and Clean Air. This was partly offset by
transformation benefits
· Underlying earnings per share of 178.6p, down 16% due to lower underlying
operating profit
· Free cash flow of £74 million, compared to £221 million in the prior year
largely reflecting lower underlying operating profit and working capital
movements
· Strong balance sheet with net debt of £1.0 billion; net debt to EBITDA of 1.6
times
Reported results
· Revenue down 7%, driven by lower average PGM prices
· Operating profit of £406 million, up materially, largely due to the absence
of a one-off impairment in the prior period relating to Battery Materials
· Profit before tax (continuing) of £344 million, compared to £195 million in
the prior period, reflecting higher operating profit due to the absence of the
Battery Materials impairment
· Reported earnings per share (continuing) of 144.2 pence
· Cash inflow from operating activities of £291 million (2021/22: £605
million)
· Ordinary dividend of 77.0 pence per share stable year-on-year
Strategic highlights
· Agreed two strategic partnerships in Hydrogen Technologies (Plug Power and
Hystar), won five additional large scale projects in Catalyst Technologies,
and won Euro 7 business in Clean Air
· Hydrogen Technologies partnerships underpin targeted sales of more than £200
million by the end of 2024/25, with significant growth in sales and
profitability thereafter. This business is anticipated to be breakeven in
2025/26
· Catalyst Technologies expected to deliver high single digit growth over the
medium term, with margins returning to mid-teens within the next two years (by
end of 2024/25)
· Clean Air - delivered £1.4 billion⁴ cash over two years, and outperforming
the rate of business wins required to achieve our cash generation target of at
least £4 billion by 2030/31
· Delivered c.£45 million cost savings in 2022/23 and on track to deliver at
least
£150 million annualised savings by 2024/25
· Committed to achieving net zero by 2040 and now targeting 42% reduction in
Scope 1 and Scope 2, and 42% reduction in Scope 3 greenhouse gas emissions by
2030
Liam Condon, Chief Executive Officer, commented:
I have now been with Johnson Matthey just over a year and it is exciting to
see the progress we are making. We have navigated global macroeconomic
challenges to report full year results in line with market expectations, with
a stronger second half as we indicated back in November. We have also been
delivering against our strategic milestones with important customer wins,
which will drive growth. These include the strategic partnerships with Plug
Power and Hystar in Hydrogen Technologies and the five large project wins in
Catalyst Technologies, which already demonstrate our ability to win in a net
zero world. It has been a good start and a year of progress, but there is much
more to do.
The opportunity for Johnson Matthey is even greater than I had expected with
government-led investment programmes developing at pace. The Inflation
Reduction Act in the US, the EU's Green Deal Industrial Plan and continued
commitments in the UK - all within the past year - are driving the net zero
transition with greater urgency.
We have made progress in many areas and remain focused on accelerating our
plans to simplify the organisation and speed up our decision making, as we
build a stronger and more flexible platform for growth. Despite continued
market volatility we are on track to deliver on our commitments and, with the
opportunities ahead of us, I see a very bright future for Johnson Matthey.
Outlook for the year ending 31(st) March 2024
For 2023/24, we expect at least mid-single digit growth in operating
performance at constant precious metal prices and constant currency. This is
underpinned by efficiency benefits of
c.£55 million in the year.
In Clean Air, we expect strong growth in operating performance. Whilst
external data suggest limited growth in vehicle production for 2023/24, margin
expansion should mainly be driven by efficiency benefits. PGM Services'
performance will be largely driven by precious metal prices, with recycling
volumes expected to be subdued. We expect strong growth in operating
performance for Catalyst Technologies. This reflects an improvement in
licensing income and a significant uplift in margins, benefiting from pricing
and efficiencies. We expect sales to grow strongly in Hydrogen Technologies
and we will continue to invest for growth resulting in an operating loss at a
similar level to 2022/23.⁵
Precious metal prices have been volatile and consequently it is difficult to
predict how they may develop. To illustrate the impact they may have on our
results, assuming prices remain at their current level⁶ for the remainder of
2023/24 there would be an adverse impact of c.£50 million⁷ on full year
operating performance compared with the prior year. We are focused on
mitigating the potential impact on our performance.
At current foreign exchange rates⁸, translational foreign exchange movements
for the year ending 31(st) March 2024 are expected to adversely impact
underlying operating profit by
c.£10 million.
Dividend
The board will propose a final ordinary dividend for the year of 55.0 pence
per share at the Annual General Meeting (AGM) on 20(th) July 2023. Together
with the interim dividend of
22.0 pence per share, this gives a total ordinary dividend of 77.0 pence per
share, maintained at the same level as the prior year. Subject to approval by
shareholders, the final dividend will be paid on 1(st) August 2023, with an
ex-dividend date of 8(th) June 2023.
Board changes
We are pleased to announce the appointment of Barbara Jeremiah as an
independent
Non-Executive Director. This appointment is with effect from 1(st) July 2023
and Barbara will also become a member of all four board committees. Barbara
brings strong leadership, deep understanding of metals and extensive
experience in North American markets.
Chris Mottershead will step down as Chair of the Remuneration Committee
following the Company's AGM in July 2023 and from the board on 26(th) January
2024, following a nine-year tenure.
Barbara will become the Senior Independent Director, succeeding John O'Higgins
who will become Chair of the Remuneration Committee. These changes will take
effect from the end of our AGM.
Catalyst Technologies seminar
We will host a Catalyst Technologies seminar on 27(th) June to provide a
deep-dive into the strong growth prospects of this business.
Enquiries:
Investor Relations
Martin Dunwoodie Director of Investor Relations +44 20 7269 8241
Louise Curran Senior Investor Relations Manager +44 20 7269 8235
Carla Fabiano Senior Investor Relations Manager +44 20 7269 8004
Media
Barney Wyld Group Corporate Affairs Director +44 20 7269 8001
Harry Cameron Teneo +44 7799 152148
Notes:
1. 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, share of profits or losses from
non-strategic equity investments, major impairment and restructuring charges
and, where relevant, related tax effects. For definitions and reconciliations
of other non-GAAP measures, see pages 47 to 50.
2. Unless otherwise stated, sales and operating profit commentary refers to
performance at constant exchange rates. Growth at constant rates excludes the
translation impact of foreign exchange movements, with 2021/22 results
converted at 2022/23 average rates. In 2022/23, the translational impact of
exchange rates on group sales and underlying operating profit was a benefit of
£193 million and £38 million respectively.
3. Revenue excluding sales of precious metals to customers and the precious metal
content of products sold to customers.
4. Delivered around £600 million of cash in 2022/23 at actual precious metal
prices, which equates to just over £400 million at constant prices (March
2022). Delivered around £1.4 billion cumulatively since 2021/22 at actual
metal prices. At least £4 billion of cash under our range of scenarios from
1(st) April 2021 to 31(st) March 2031. Cash target pre-tax and post
restructuring costs.
5. Outlook commentary for Clean Air, PGM Services, Catalyst Technologies and
Hydrogen Technologies assumes constant precious metal prices and constant
currency.
6. Based on average precious metal prices in May 2023 (month to date).
7. c.£50 million adverse impact represents a gross PGM price impact before any
foreign exchange movement.
A US$100 per troy ounce change in the average annual platinum, palladium and
rhodium metal prices each have an impact of approximately £1 million, £1.5
million and £0.75 million respectively on full year underlying operating
profit. This assumes no foreign exchange movement.
8. At average foreign exchange rates for May 2023 month to date (£:US$ 1.25,
£:€ 1.14, £:RMB 8.70) translational foreign exchange movements for the
year ending 31(st) March 2024 are expected to adversely impact underlying
operating profit by c.£10 million.
Chief Executive Officer update
In May 2022 we published our strategy to reinvigorate Johnson Matthey and
drive value creation. This is centered around a more focused portfolio based
on our core competencies - our expertise in platinum group metal (PGM)
chemistry and refining, catalysis and process technology. We also set out the
changes we need to transform our culture and enable the success of our
strategy.
We are now a year in and have made a good start. I am encouraged, but there is
much more to do. Transformation and cultural change take time, but we are
starting to see the benefits as we focus, simplify and execute. We are already
focusing our portfolio with the divestment of some non-core activities.
Simplification is underway, for example with our efficiency programme, new
finance shared service centre and digital HR platform. We are also executing
on our commitments, evidenced by the strategic partnerships with Plug Power
and Hystar, contract wins in Catalyst Technologies and business wins in Clean
Air. To drive further discipline around execution we are embedding "Play to
Win" behaviours across the organisation, changing remuneration to link much
more directly to delivery of the strategy, and implementing sharper
performance management with more robust and frequent feedback.
Our financial performance for the year was in line with market expectations,
albeit below the prior year. The main factors driving performance were lower
precious metal prices
(c.£55 million impact¹) and lower auto related volumes in Clean Air and PGM
Services. The cost inflation of c.£150 million suffered in the year,
particularly energy, raw materials and labour was almost completely recovered
through pricing of c.£95 million and transformation savings of c.£45
million. As we sharpened our commercial focus and took action to increase
efficiency, the recovery rate improved through the year as expected.
Growth markets accelerating
The past year has seen an acceleration and expansion of our growth markets,
creating significant opportunities for our decarbonisation solutions. In the
US, the Inflation Reduction Act enacted in August is the largest climate
incentive programme in history changing the landscape for clean energy. The
Act includes c.US$370 billion of incentives that will reduce the cost of clean
energy projects, increasing investment and demand. Europe has introduced the
Green Industrial Deal, a key pillar of which is the Net-Zero Industry Act
which aims to scale up the manufacturing of clean technologies in the EU and
support the fast transition to net zero. In the UK, the government has
recently published its Hydrogen Champion Report with recommendations to
accelerate the growth of the hydrogen sector. We expect these programmes will
drive market growth and accelerate demand for our leading solutions.
Strategic milestones overview
In May 2022, we outlined 10 strategic milestones and have made good progress
to date:
Customers:
· 2 strategic partnerships in Hydrogen Technologies - Plug Power and Hystar
· Won targeted Euro 7 business, on track to deliver £4 billion+ cash² for
Clean Air
· Won 5 additional large scale projects in Catalyst Technologies (targeting
>10 across Catalyst Technologies and Hydrogen Technologies by end of
2023/24)
Notes:
1. Gross PGM price impact was c.£55 million, which was partly offset by foreign
exchange benefits. Foreign exchange benefit reflects the pricing of PGMs in US
dollars.
2. At least £4 billion of cash under our range of scenarios from 1(st) April
2021 to 31(st) March 2031. Cash target
pre-tax and post restructuring costs.
Investments:
· PGM Services refining capability expansion in China complete and ramping up
· Construction of Hydrogen Technologies CCM plant in the UK to expand total
capacity from 2GW to 5GW is on track
· Targeted capacity expansion (fuel cells catalyst, formaldehyde catalyst) on
track
· Continuing to divest non-core assets - Piezo Products within Medical Device
Components and Diagnostic Services (Value Businesses)
People: Employee engagement did not improve as the degree and pace of
transformation has impacted workload - this is the only target not on track
Sustainability:
· Reduced Scope 1+2 CO(2)e (carbon dioxide equivalent) emissions by 13% in
2022/23, ahead of targeted c.10% reduction by 2023/24 (from a 2019/20
baseline)
· Helped customers reduce CO(2)e emissions by 850,000 tonnes p.a. through use of
our products (target >1mt p.a. by 2023/24)
1. Customers: winning new business to drive growth
Catalyst Technologies - Our Catalyst Technologies business is further
strengthening its focus on the syngas value chain, growing the existing
business alongside new opportunities in low carbon hydrogen (or carbon capture
and storage - CCS-enabled hydrogen), sustainable fuels and low carbon
solutions (retrofitting existing chemicals plants to decarbonise them). These
growth opportunities will transform the scale and profitability of our
business.
In the period to May 2023, we secured five low carbon hydrogen and sustainable
fuels licences. The total sales value of these licences is c.£120 million
over five years, subject to project completion. These projects include three
sustainable fuels projects (including Strategic Biofuels' renewable diesel
plant), and two low carbon hydrogen projects (H2H Saltend in the UK and a
large scale low carbon hydrogen project in North America). These project wins
are an important validation of our technologies in these new growth markets.
We also gained a licence in low carbon solutions enabling the decarbonisation
of existing assets. Across these areas, we now have a pipeline of more than
100 projects compared to over 70 projects a year ago.
In the near-term, we are committed to improving performance in Catalyst
Technologies and strengthening our platform for growth. We have recently
initiated a value creation programme with three main components: pricing,
manufacturing efficiency and procurement.
With the combination of growth and efficiency programmes, we are confident
Catalyst Technologies will deliver high single digit growth over the medium
term, with margins returning to mid-teens within the next two years (by end of
2024/25).
Hydrogen Technologies - In Hydrogen Technologies, our ambition is to be the
market leader in CCMs (catalyst coated membranes). We are scaling the business
in pursuit of our ambition and set a milestone to have signed at least two
large scale strategic partnerships by the end of 2022/23. This is only the
beginning and we expect further strategic partnerships in future.
In January, we agreed a long-term strategic partnership with Plug Power in the
US, one of the leading players in the hydrogen economy. This includes a supply
and joint development agreement to at least 2030 as well as co-investment in
new manufacturing capacity in the US. We have secured a second strategic
partnership, this time in Europe, with Hystar a high-tech spin-out from SINTEF
which is one of Europe's largest independent research institutions.
We will be supplying MEA (membrane electrode assembly) components for
electrolysers to Hystar for the next three years. We will collaborate to
enable further scale up and automation for Hystar's planned multi-GW
production line, expected to be operational by 2025. Hystar is currently
undertaking its HyPilot project with partners including Yara and Equinor, with
end market demand driven by the trends in food production and energy security.
We also entered a strategic partnership with Enapter (a leader in anion
exchange membrane electrolysis), and extended our partnership with SFC Energy.
These partnerships underpin our targeted sales of more than £200 million from
Hydrogen Technologies by the end of 2024/25, with significant growth in sales
and profitability thereafter. We anticipate this business to be breakeven in
2025/26.
PGM Services - In our refining business we won new contracts with a large
miner and increased our market share with some key recyclers. We also won new
contracts across our products business, most notably with our pharmaceutical
and agrochemical customers.
Clean Air - In Clean Air we are focused on our target of generating at least
£4 billion of cash to 2030/31 which is underpinned by tightening emission
control legislation, business wins, manufacturing footprint consolidation and
other fixed cost reductions. In 2022/23 we generated £600 million of cash,
taking our cumulative cash generation over two years to £1.4 billion at
actual precious metal prices.
Clean Air continues to benefit from tightening emissions control legislation
globally, including the Euro 7 proposal submitted to the European Parliament
in November 2022. This tightening will result in more complex emission control
systems and increase our value per vehicle.
We have continued to build our commercial muscle, improving our inflation
recovery rate with the majority of the recovery in the second half of the
year, whilst also winning our targeted business linked to Euro 7 and
equivalent legislation globally. During the year we won all of Mercedes Benz's
light duty diesel business in Europe, a large truck OEM's Euro 7 business in
heavy duty diesel as well as the global contracts covering light duty gasoline
and diesel with a leading automotive OEM. As further evidence of our stronger
commercial muscle, these wins were achieved whilst negotiating inflationary
cost increases and improving our customer satisfaction score. Consequently, we
are outperforming the rate of business wins required to achieve our cash
generation target of at least £4 billion by 2030/31.
As we continue to drive efficiency in Clean Air, we are reducing fixed costs
and streamlining SG&A expenses and production overheads. We have also
announced our intention to close or exit 4 of our 16 sites including
completion of the closure of our UK manufacturing facility. We will be
repurposing this building for our new Hydrogen Technologies gigafactory.
2. Investments: scaling to capture future growth
We are making disciplined investments to drive growth and deliver attractive
returns. Over the three year period to 2024/25 we now expect cumulative
capital expenditure of c.£1.1 billion (previously c.£1 billion) mainly
reflecting an acceleration in Hydrogen Technologies to capture our US
opportunity with Plug and modest inflation effects.
PGM Services is our foundational business and a key enabler of growth for the
group. It is therefore critical that we invest to retain our position as the
world's leading recycler of PGMs. We are investing in the capacity,
resilience, efficiency and long-term sustainability of our refinery assets. In
China, the expansion of our refining facility was completed. With this
capability, we can now offer full refining services in China. Alongside these
investments, we are expanding our fuel cells catalyst capacity within PGM
Services to support our Hydrogen Technologies business as it scales up.
In Hydrogen Technologies, we are scaling our business and manufacturing
capacity to meet growing customer demand. In the UK, construction of our
planned 3GW capacity expansion is on track to be completed by the end of
2023/24. Following the announcement of the strategic partnership with Plug
Power, we are co-investing into a new manufacturing plant in the US. This
plant - expected to start production in 2025 - will initially have 5GW
capacity scaling to 10GW over time. Overall, these expansion plans will take
our capacity from 2GW today, scaling up to 15GW over time.
To further simplify our portfolio, we are continuing to divest non-core assets
and we are on track to complete the divestiture of Value Businesses by the end
of 2023/24. We sold Piezo Products (part of Medical Device Components) and
recently announced the sale of Diagnostic Services, both within Value
Businesses. In addition, we exited battery materials recycling.
3. People
Our people and culture change will be key to the success of our strategy. In
the past year, we have been driving change to create a stronger performance
culture:
1. People growth - sharper and simpler performance management, an increased focus
on people development, and greater recognition of performance and success
2. Customer focus - building our commercial muscle, increasing our execution
capability in capital projects and improving our manufacturing efficiency
3. Simplification - enhanced cost discipline, streamlining processes to improve
speed and user experience, assigning clear accountabilities
Change takes time and is challenging for any organisation but I am pleased
with the positive attitude of our employees and their commitment to making JM
a success. We remain focused on significantly improving engagement over time.
From a 2022/23 baseline of 6.9, we are now targeting a 3 decimal point
increase in employee engagement to 7.2 by 2024/25, with a target of 8.0 and
above in the longer term.
We have made progress with our transformation programme, delivering c.£45
million of cost savings in 2022/23, ahead of our target of c.£35 million, and
are on track to deliver at least £150 million savings by the end of 2024/25.
Examples of the actions taken to deliver these benefits include delayering the
organisation with 170 management roles removed; procurement, IT and HR
savings; and creating a finance shared service centre in Malaysia. Going
forward our focus will be on further consolidating our Clean Air manufacturing
footprint, additional procurement savings, enhanced capability in capital
project delivery, and further rationalising real estate. Associated costs to
deliver the programme are around £100 million, all of which are cash.
4. Sustainability
Sustainability is at the heart of everything we do at Johnson Matthey. We are
committed to achieving net zero by 2040 and this year we have decided to
increase our ambition with new GHG (greenhouse gas) reduction targets to 2030.
We are now targeting a 42% reduction in both Scope 1 and Scope 2, and Scope 3
GHG emissions (purchased goods and services category)¹ which is fully aligned
with a 1.5 degree scenario pathway to net zero. We have submitted these
targets to SBTi (Science Based Targets initiative) for validation according to
their Net Zero Standard.
To support our new strategy and provide focus and simplification, we have also
reduced the number of sustainability targets for 2030 and organised them under
two new themes - Planet and People. These changes will better articulate the
most material benefits that we can bring to society.
We are on track to deliver the sustainability milestones we committed to
during our strategy update in May 2022. We have already achieved our targeted
c.10% reduction in our Scope 1 and 2 CO(2)e emissions. In addition, we are
also helping customers reduce their own GHG emissions by more than 1 million
tonnes per annum through the use of our products by the end of 2023/24. As at
31(st) March 2023, our customers have avoided 850,000 tonnes p.a. of GHG
emissions using our products and solutions.
1. Previous target was a reduction in Scope 1 and Scope 2 GHG emissions of at
least 33% by 2030, and reduction of Scope 3 GHG emissions (purchased goods and
services category) of at least 20% by 2030. Baseline measure is 2019/20.
Summary of underlying operating results from continuing operations
Unless otherwise stated, commentary refers to performance at constant rates¹.
Percentage changes in the tables are calculated on rounded numbers.
Sales Year ended % change % change,
31(st) March
constant FX rates
(£ million)
2023 2022²
Clean Air 2,644 2,457 +8 +2
PGM Services 570 587 -3 -8
Catalyst Technologies 560 454 +23 +17
Hydrogen Technologies 55 25 +120 +112
Value Businesses³(,)⁴ 470 354 +33 +28
Eliminations (98) (99)
Sales (continuing) 4,201 3,778 +11 +6
Underlying operating profit Year ended % change % change,
(£ million)
31(st) March
constant FX rates
2023 2022²
Clean Air 230 302 -24 -28
PGM Services 257 308 -17 -21
Catalyst Technologies 51 50 +2 -2
Hydrogen Technologies (45) (33) n/a n/a
Value Businesses³(,)⁵ 40 12 n/a n/a
Corporate (68) (86)
Underlying operating profit (continuing) 465 553 -16 -21
Reconciliation of underlying operating profit Year ended
to operating profit
31(st) March
(£ million)
2023 2022²
Underlying operating profit (continuing) 465 553
Profit on disposal of businesses⁶ 12 106
Major impairment and restructuring charges⁶ (41) (440)
Amortisation of acquired intangibles (5) (6)
Gains and losses on significant legal proceedings⁶ (25) 42
Operating profit (continuing) 406 255
Notes:
1. Growth at constant rates excludes the translation impact of foreign exchange
movements, with 2021/22 results converted at 2022/23 average rates. In
2022/23, the translational impact of exchange rates on group sales and
underlying operating profit was a benefit of £193 million and £38 million
respectively.
2. 2021/22 is restated to reflect the group's new reporting structure.
3. Includes Battery Systems, Medical Device Components, Diagnostic Services,
Battery Materials and Advanced Glass Technologies.
4. Sales relating to divestments: Advanced Glass Technologies (2021/22: £62
million, 2022/23: nil) and Battery Materials (2021/22: £12 million, 2022/23:
£21 million).
5. Operating profit or loss related to divestments: Advanced Glass Technologies
(2021/22: £16 million,
2022/23: -£1 million) and Battery Materials (2021/22: -£22 million, 2022/23:
£3 million).
6. For further detail on these items please see page 20.
Second half performance - continuing operations
Sales H2 H2 % change % change,
constant FX rates
(£ million)
2022/23 2021/22¹
Clean Air 1,366 1,261 +8 +3
PGM Services 288 287 - -5
Catalyst Technologies 285 231 +23 +17
Hydrogen Technologies 32 15 +113 +100
Value Businesses 235 173 +36 +29
Eliminations (50) (45)
Sales (continuing) 2,156 1,922 +12 +7
Continuing sales were up 7% in the second half, with good growth across most
of our businesses. Clean Air grew supported by higher pricing as we benefited
from increased inflation recovery. In Catalyst Technologies, performance was
strong driven by growth in licensing following recent project wins and also
first fills as new plants came online. Performance was also supported by
better pricing. Sales in Hydrogen Technologies more than doubled, with
higher commercial volumes enabled by improved operational performance. Within
Value Businesses, Battery Systems saw strong performance. Sales were partly
offset by PGM Services which was impacted by lower average PGM prices and
reduced refinery volumes.
Underlying operating profit H2 H2 % change % change,
(£ million)
constant FX rates
2022/23 2021/22¹
Clean Air 122 152 -20 -24
PGM Services 132 141 -6 -12
Catalyst Technologies 30 20 +50 +43
Hydrogen Technologies (21) (21) n/a n/a
Value Businesses 19 11 +73 +46%
Corporate (39) (47)
Underlying operating profit (continuing) 243 256 -5 -12
Continuing underlying operating profit declined 12% in the second half, with
the largest decline in Clean Air. Clean Air was impacted by lower volumes and
mix, although we did experience benefits from our transformation programme.
PGM Services saw weaker performance largely reflecting lower average PGM
prices and reduced refinery volumes. Across our other businesses, Catalyst
Technologies and Value Businesses grew year-on-year whilst Corporate costs
were lower.
Notes:
1. 2021/22 is restated to reflect the group's new reporting structure.
Full year operating results by sector
Clean Air
Improved sequential performance supported by increased inflation recovery
· Sales up 2% supported by pricing as we partially recovered higher input costs
· Underlying operating profit decreased 28% impacted by cost inflation, product
mix and lower volumes
· Margins saw an improvement during the second half resulting from increased
inflation recovery and benefits from our transformation programme
· On track to deliver at least £4 billion of cash in the decade to 2030/31,
having delivered £1.4 billion since 2020/21 at actual precious metal prices
Year ended % change % change, constant FX rates
31(st) March
2023 2022
£ million £ million
Sales
Light duty diesel 1,075 1,005 +7 +4
Light duty gasoline 599 574 +4 -1
Heavy duty diesel 970 878 +10 +3
Total sales 2,644 2,457 +8 +2
Underlying operating profit 230 302 -24 -28
Underlying margin 8.7% 12.3%
Reported operating profit 191 273
Clean Air provides catalysts for emission control after-treatment systems used
in light and heavy duty vehicles powered by internal combustion engines.
Sales during the period were up 2%. Vehicle production was impacted by a
challenging supply chain environment as well as COVID-related lockdowns in
China. Although semiconductor shortages have gradually eased, other supply
chain disruptions such as labour availability and logistic bottlenecks have
continued to affect vehicle production. As the year progressed, pent-up demand
and the easing of supply chain issues led to an improvement in production
activity.
Light duty catalysts - diesel and gasoline
Light duty diesel
Light duty diesel sales were up 4%, outperforming a declining market. We saw
strong performance in the Americas and good performance in Europe, partly
offset by a decline in Asia. In Europe, which represents around 60% of our
total light duty diesel sales, our growth was driven by strong platform
performance despite some automotive OEMs continuing to prioritise commercial
vehicles over the passenger car platforms that we serve. In the Americas we
significantly outperformed a growing market, driven by the ramp up of a new
platform and strong platform performance.
In Asia, our performance was in line with a declining market, which was
impacted by a weak commercial vehicle market in China and an increase in
electric vehicle penetration. Our sales decline in the region was also the
result of lower revenue per unit as a result of product mix.
Light duty gasoline
Light duty gasoline sales were down 1%, underperforming the overall global
market. In Europe and Asia, previous platform losses led to a decline in sales
in both regions. In the Americas, sales grew slightly ahead of a strong
underlying market as we benefited from the ramp up of new platforms. We
continue to invest in light duty gasoline to support our future growth with
early signs of success. For example, two OEMs in the high performance sports
car segment have chosen JM to be sole supplier which validates the strength of
our technology and gives confidence in winning future light duty gasoline
platforms.
Heavy duty diesel catalysts
In heavy duty diesel sales were up 3%, significantly outperforming a declining
market. We saw strong performance in Europe and the Americas, partly offset by
a decline in Asia. In Europe our sales significantly outperformed a growing
market due to higher revenue per vehicle and we also benefited from good
performance in our off road platforms. In the Americas, the high value Class 8
truck cycle peaked during the last quarter of our fiscal year. As expected,
our heavy duty sales benefited from this cycle and were also supported by
improved product mix. Sales in Asia declined as COVID lockdowns in China
significantly impacted vehicle production and led to customers building stock
in the prior year in anticipation of these lockdowns. Looking ahead, our
leading position in heavy duty means we are well placed to benefit from future
developments including hydrogen powered internal combustion engines.
Underlying operating profit
Underlying operating profit declined 28% to £230 million and margins
decreased to 8.7%. This largely reflected cost inflation, product mix, lower
volumes, and the transactional impact of exchange rates. We saw a sequential
improvement in margins during the year, benefiting from an acceleration in the
recovery of cost inflation and benefits from our transformation programme.
On track to deliver at least £4 billion of cash in the decade to 2030/31(1)
We delivered another year of strong cash flow as we continue to focus on
driving efficiencies, optimising capital expenditure and working capital. We
generated around £600 million² of cash and a cumulative £1.4 billion²
since 2021/22, the first year of this guidance.
Notes:
1. At least £4 billion of cash under our range of scenarios from 1(st) April
2021 to 31(st) March 2031. Cash target
pre-tax and post restructuring costs.
2. Delivered around £600 million of cash in 2022/23 at actual precious metal
prices, which equates to just over £400 million at constant prices (March
2022). Delivered around £1.4 billion cumulatively since 2021/22 at actual
metal prices.
PGM Services
Performance reflects lower average PGM prices and reduced refinery volumes
· Sales performance primarily reflects lower average PGM prices and reduced
refinery volumes due to lower auto scrap levels as a result of the continued
buoyant used car market
· Underlying operating profit was down mainly due to lower average PGM prices
and reduced refinery volumes
· Cost inflation was more than offset by efficiencies as well as higher pricing
across both our refining and products businesses
Year ended % change % change, constant FX rates
31(st) March
2023 2022
£ million £ million
Sales
PGM Services 570 587 -3 -8
Underlying operating profit 257 308 -17 -21
Underlying margin 45.1% 52.5%
Reported operating profit 257 307
PGM Services is the world's largest recycler of platinum group metals (PGMs).
This business has an important role in enabling the energy transition through
providing circular solutions as demand for scarce critical materials
increases. PGM Services provides a strategic service to the group, supporting
Clean Air, Catalyst Technologies and Hydrogen Technologies with security of
metal supply in a volatile market, recycling capabilities and manufactures
value added PGM products for both internal and external customers.
In PGM Services, sales declined 8% against a strong prior year. This was
primarily driven by lower average PGM prices, where average prices for
platinum, palladium and rhodium declined around 10%, 20% and 30% compared to
the prior year. Recent PGM price weakness has been driven by lower auto demand
and also liquidation of some excess rhodium positions in an illiquid market.
In our refineries, intake volumes were down as expected due to lower auto
scrap resulting from a buoyant used car market. Sales were partly offset by
benefits from operational efficiency and higher pricing. In a volatile market,
our metal trading business had another good year, with sales only moderately
down against a strong prior period.
Across our PGM products businesses, sales were moderately down. This was
primarily driven by lower sales of catalysts for the pharmaceutical and
agricultural chemicals markets due to the phasing of customers' orders.
Underlying operating profit
Underlying operating profit declined 21% mainly impacted by lower average PGM
prices
(c.£55 million impact¹) and reduced refinery volumes. Cost inflation was
more than offset by efficiency benefits, as well as higher pricing across both
our refining and products businesses.
Notes:
1. Gross PGM price impact was c.£55 million, which was partly offset by foreign
exchange benefits. Foreign exchange benefit reflects the pricing of PGMs in US
dollars.
Catalyst Technologies
Strong sales growth and improved performance in the second half
· Sales up 17% largely reflecting growth in licensing and catalyst refills, as
well as improved pricing
· Strong performance in licensing with five licence wins within low carbon
hydrogen and sustainable fuels (includes one win in May 2023)
· Underlying operating profit was in line with the prior year. Improved pricing,
licensing and transformation benefits offset significant cost inflation and
the loss of Russian business
Year ended % change % change, constant FX rates
31(st) March
2023 2022
£ million £ million
Sales
Catalyst Technologies 560 454 +23 +17
Underlying operating profit 51 50 +2 -2
Underlying margin 9.1% 11.0%
Reported operating profit 43 78
Catalyst Technologies is focused on enabling the decarbonisation of chemical
and fuels value chains and we have leading positions in syngas: methanol,
ammonia, hydrogen and formaldehyde. Catalyst Technologies has three key
segments: industrial and consumer, traditional fuels and sustainable solutions
that help catalyse the transition to net zero. Our revenue streams include
licensing and engineering income, first fill and refill catalysts.
Sales during the period were up 17%, with strong growth in licensing and
growth in first fills and refills reflecting higher pricing and positive mix.
Industrial and consumer
Industrial and consumer includes our traditional syngas (methanol, ammonia and
formaldehyde) catalyst offerings as well as the majority of our current
licensing business. We saw double digit sales growth reflecting strong growth
in licensing and first fills as new plants came on stream following licence
wins in recent years. In the year, we signed six new licences (2021/22: three
licences). Refills also grew well supported by growth in ammonia and
formaldehyde.
Traditional fuels
Traditional fuels includes our refining additives, hydrogen and natural gas
purification offerings. Growth in the segment was mainly driven by refills.
High global demand for liquified natural gas has led to strong sales of our
natural gas purification catalysts.
Sustainable solutions
Sustainable solutions includes our new growth markets with our technology in
low carbon hydrogen, sustainable fuels and low carbon solutions. In the period
to May 2023, we won five large scale projects across low carbon hydrogen and
sustainable fuels:
· H2H Saltend, expected to be one of the UK's largest low carbon hydrogen
projects
· A large scale low carbon hydrogen licence in North America
· A sustainable fuels project with Strategic Biofuels, also in North America
· A commercial scale sustainable fuels project in North America
· A commercial scale sustainable fuels project in Europe
In addition, we won a low carbon solutions licence in the year which will
enable the decarbonisation of one of our customer's existing assets.
Underlying operating profit
Underlying operating profit of £51 million was in line with the prior year
and margins declined to 9.1%. However, we saw good improvement in operating
margin from the first to the second half of the year (1H: 7.6% and 2H: 10.5%).
Higher pricing, licensing and the benefits of our transformation programme
offset significant cost inflation and the loss of catalyst sales and higher
margin licensing income in Russia (c.£10 million loss of profit).
Hydrogen Technologies
Sales more than doubled and continued investment to scale the business
· Agreed strategic partnerships with Plug Power and Hystar
· Sales more than doubled driven by higher volumes for new and existing
customers in fuel cells, growth in electrolysers and increased manufacturing
output as we focused on improving operational performance
· Underlying operating loss reflects continued investment to scale the business
to meet demand partly offset by higher volumes
Year ended % change % change, constant FX rates
31(st) March
2023 2022
£ million £ million
Sales
Hydrogen Technologies 55 25 +120 +112
Underlying operating loss (45) (33) n/a n/a
Underlying margin n/a n/a
Reported operating loss (46) (33)
In Hydrogen Technologies, we provide catalyst coated membranes that are
critical performance defining components of fuel cells and electrolysers.
In Hydrogen Technologies, sales in the year more than doubled to £55 million.
This was primarily driven by growth in fuel cells where we delivered higher
commercial volumes for new and existing customers, enabled by improved
operational performance. We continue to focus our fuel cells business towards
strategic customers to develop deeper and longer relationships. This trend
will continue given the recent strategic partnership announcements, for
example with Plug Power which entails a long-term supply agreement, joint
development agreement and co-investment into new manufacturing capacity. In
electrolysers, we saw higher sales from the supply of samples, prototypes and
components as we develop strategic partners.
In the year, we saw higher manufacturing output as we focused on operational
performance to improve our processes and drive efficiency. Sales also
benefited as constraints eased following the greater use of capacity in the
prior period to qualify new customer products.
Underlying operating loss
Underlying operating loss of £45 million primarily reflects increased
investment into product development and building capability as we scale the
business to meet customer demand, partly offset by higher volumes.
Value Businesses
Comparable performance materially improved
· Market recovery and structural improvements driving improved performance
· Completed the sale of Piezo Products, part of Medical Device Components, and
agreed the sale of Diagnostic Services with completion expected in the third
quarter of calendar 2023
Year ended % change % change, constant FX rates
31(st) March
2023 2022
£ million £ million
Sales
Value Businesses¹ 470 354 +33 +28
Underlying operating profit² 40 12 n/a n/a
Underlying margin 8.5% 3.4%
Reported operating profit / (loss) 38 (276)
Value Businesses is managed to drive shareholder value from activities
considered to be
non-core to JM, and now principally comprises Battery Systems, Medical Device
Components and Diagnostic Services. In the year, we completed the sale of
Piezo Products, part of Medical Device Components, and we have also agreed the
sale of Diagnostic Services and Battery Materials. In 2021/22, we completed
the sale of Advanced Glass Technologies.
Overall, sales in Value Businesses were up 28% in the year. On a like for like
basis (i.e. excluding Advanced Glass Technologies and Battery Materials),
sales were up 55%.
In Battery Systems, sales almost doubled. We ramped up production of higher
value next generation e-bike products and satisfied a backlog of orders as
supply chain constraints eased. Medical Device Components also saw strong
sales growth as we gained market share following recent project wins, and
benefited from higher effective production capacity following investments to
upgrade assets and drive efficiency. Diagnostic Services also grew strongly
reflecting a continued recovery in demand as COVID-related travel disruption
eased and a stronger commercial focus, supported by a higher oil price which
drove increased customer activity.
Underlying operating profit
Underlying operating profit of £40 million, an improvement of £28 million on
the prior year, reflecting both a supportive market environment and the
execution of comprehensive value creation plans that each business is driving
forward.
Excluding the results of Advanced Glass Technologies and Battery Materials,
underlying operating profit was £38 million², an improvement of £20
million.
Corporate
Corporate costs were £68 million, a decrease of £18 million from the prior
period, largely reflecting transformation benefits as well as a one-off
benefit from lower pension charges.
Notes:
1. Sales relating to divestments: Advanced Glass Technologies (2021/22: £62
million, 2022/23: £nil) and Battery Materials (2021/22: £12 million,
2022/23: £21 million).
2. Operating profit or loss related to divestments: Advanced Glass Technologies
(2021/22: £16 million,
2022/23: -£1 million) and Battery Materials (2021/22: -£22 million, 2022/23:
£3 million).
Financial review - continuing operations
Research and development (R&D)
R&D spend was £213 million in the year. This was up from £201 million in
the prior year and represents c.5% of sales excluding precious metals. We are
investing in our growth areas, including Catalyst Technologies and also
Hydrogen Technologies as we continue to commercialise our fuel cell and
electrolyser offerings. In addition, we are also investing in our Clean Air
business to support future platform wins ahead of new emission regulations.
Foreign exchange
The calculation of growth at constant rates excludes the impact of foreign
exchange movements arising from the translation of overseas subsidiaries'
profit into sterling. The group does not hedge the impact of translation
effects on the income statement. The principal overseas currencies, which
represented 79% of the non-sterling denominated underlying operating profit in
the year ended 31(st) March 2023, were:
Share of 2022/23 Average exchange rate % change
non-sterling denominated
underlying operating profit Year ended
31(st) March
2023 2022
US dollar 34% 1.20 1.36 -12%
Euro 37% 1.16 1.18 -2%
Chinese renminbi 8% 8.26 8.75 -6%
For the year, the impact of exchange rates increased sales by £193 million
and underlying operating profit by £38 million.
If current exchange rates (£:US$ 1.25, £:€ 1.14, £:RMB 8.70) are
maintained throughout the year ending 31(st) March 2024, foreign currency
translation will have an adverse impact of
c.£10 million on underlying operating profit. A one cent change in the
average US dollar and euro exchange rates have an impact of approximately £2
million on operating profit whilst a ten fen change in the average rate of the
Chinese renminbi approximately has a £1 million impact on full year
underlying operating profit.
Efficiency savings
We have commenced our new group transformation programme as part of which we
expect to deliver efficiencies of at least £150 million by 2024/25.
Associated costs to deliver the programme are around £100 million, all of
which are cash. In 2022/23, we delivered c.£45 million of savings, ahead of
our target of c.£35 million.
£ million Efficiency savings delivered in Associated costs incurred in
2022/23
2022/23
Transformation programme 45 20
Items outside underlying operating profit
Non-underlying (charge) / income As at As at
31(st) March 2023
31(st) March 2022
(£ million)
Profit on disposal of businesses 12 106
Major impairment and restructuring charges (41) (440)
Amortisation of acquired intangibles (5) (6)
Gains and losses on significant legal proceedings (25) 42
Total (59) (298)
Items outside underlying operating profit
Non-underlying (charge) / income
(£ million)
As at
31(st) March 2023
As at
31(st) March 2022
Profit on disposal of businesses
12
106
Major impairment and restructuring charges
(41)
(440)
Amortisation of acquired intangibles
(5)
(6)
Gains and losses on significant legal proceedings
(25)
42
Total
(59)
(298)
A gain of £12 million was recognised relating to the sale of our Battery
Materials Canada and Piezo Products businesses.
There was a £41 million charge relating to major impairment and restructuring
charges comprised of a net impairment charge of £10 million and restructuring
charges of £31 million. The impairment charge includes impact from further
consolidation of our Clean Air manufacturing footprint to create a simplified
and agile structure, as well as an impairment of goodwill in Diagnostic
Services and further impairment charges in relation to parts of the Battery
Materials business. Restructuring charges were also recognised in relation to
our Clean Air manufacturing footprint as well as the transformation
initiatives announced in May 2022 which largely comprise redundancy and
implementation costs.
The group paid £25 million in respect of a settlement with a customer on
mutually acceptable terms with no admission of fault relating to failures in
certain engine systems for which the group supplied a particular coated
substrate as a component for that customer's emissions after-treatment
systems.
Finance charges
Net finance charges in the period amounted to £61 million, broadly in line
with the prior year charge of £60 million.
Taxation
The tax charge on underlying profit before tax for the year ended 31(st) March
2023 was £78 million, an effective underlying tax rate of 19.3%, up from
17.4% in 2021/22. This largely reflects the settlement of provisions for
uncertain tax positions in the prior year.
The effective tax rate on reported profit for the year ended 31(st) March 2023
was 23.2%. This represents a tax charge of £73 million, compared with £57
million in the prior period.
We currently expect the effective tax rate on underlying profit for the year
ending 31(st) March 2024 to be around 20% reflecting the increase to the UK
corporate tax rate.
Post-employment benefits
IFRS - accounting basis
At 31(st) March 2023, the group's net post-employment benefit position, was a
surplus of
£165 million.
The cost of providing post-employment benefits in the year was £40 million,
down from
£62 million last year.
Capital expenditure
Capital expenditure was £303 million in the year, 1.6 times depreciation and
amortisation (excluding amortisation of acquired intangibles). In the period,
key projects included:
· Hydrogen Technologies - investing to increase manufacturing capacity in the UK
· PGM Services - investing in the resilience, efficiency and long-term
sustainability of our refinery assets, and also our fuel cells capacity
expansion
Strong balance sheet
Net debt as at 31(st) March 2023 was £1,023 million, an increase from £856
million at
31(st) March 2022 and £963 million at 30(th) September 2022. Net debt is £19
million higher at
£1,042 million when post tax pension deficits are included. The group's net
debt (including post tax pension deficits) to EBITDA was 1.6 times (31(st)
March 2022: 1.2 times,
30(th) September 2022: 1.5 times), which was at the lower end of our target
range of 1.5 to 2.0 times.
We use short-term metal leases as part of our mix of funding for working
capital, which are outside the scope of IFRS 16 as they qualify as short-term
leases. Precious metal leases amounted to £138 million as at 31(st) March
2023 (31(st) March 2022: £140 million,
30(th) September 2022: £129 million).
Free cash flow and working capital
Free cash flow was £74 million in the year, compared to £221 million in the
prior period, largely reflecting lower underlying operating profit and working
capital movements.
Excluding precious metal, average working capital days to 31(st) March 2023
increased to 42 days compared to 36 days to 31(st) March 2022.
Going concern
The directors have reviewed a range of scenario forecasts for the group and
have reasonable expectation that there are no material uncertainties that cast
doubt about the group's ability to continue operating for at least twelve
months from the date of approving these annual accounts.
As at 31(st) March 2023, the group maintains a strong balance sheet with
around £1.6 billion of available cash and undrawn committed facilities. Free
cash flow was positive in the year at £74 million. Net debt at 31(st) March
2023 was £1,023 million at 1.6 times net debt (including post tax pension
deficits) to EBITDA which was at the lower end of our target range.
Although impacted by the significant headwinds faced in the current
macroeconomic environment such as high inflation, the impacts of Russia's war
with Ukraine and uncertainty in outlook for major economies, the group's
performance during the period was resilient, both in terms of underlying
operating profit and cash flow. For the purposes of assessing going concern,
we have revisited our financial projections using the latest forecasts for our
base case scenario. The base case scenario was stress tested to a
severe-but-plausible downside case which reflects severe recession scenarios.
The severe-but-plausible case for Clean Air modelled scenarios assuming a
smaller LD vehicle market from reduced vehicle production and/or market
consumer demand disruption or greater share of zero emission vehicles in
market, assumed to result in a 10% drop in sales.
For PGM Services and Catalyst Technologies, it also assumed a reduction in
sales and associated operating profit based on adverse scenarios using
external and internal market insights.
Additionally, as part of viability testing, the group considered scenarios
including the impact from metal price volatility, higher inflation, delays in
capital projects and delivery of cost transformation savings, and slow down of
operations in China. Whilst the combined impact would reduce profitability and
EBITDA against our latest forecast, our balance sheet remains strong with
ample working capital and net debt/EBITDA ratios.
The group has a robust funding position comprising a range of long-term debt
and a
£1 billion five year committed revolving credit facility maturing in March
2027 which was entirely undrawn at 31(st) March 2023. There was £521 million
of cash held in money market funds and £129 million of other cash and bank
deposits. Of the existing loans, £151 million of term debt and £4 million of
other bank loans mature in the period to June 2024. We assume no refinancing
of this debt in our going concern modelling. As a long time, highly rated
issuer in the US private placement market and having recently extended its UK
Export Financing facility, the group expects to be able to access additional
funding in its existing markets if required but the going concern conclusion
is not dependant on such access as the company has sufficient financing and
liquidity to fund its obligations in the base and severe-but-plausible
scenarios. The group also has a number of additional sources of funding
available including uncommitted metal lease facilities that support precious
metal funding. Whilst we would fully expect to be able to utilise the metal
lease facilities, they are excluded from our going concern modelling.
Under all scenarios above, the group has sufficient headroom against committed
facilities and key financial covenants are not in breach during the going
concern period. To give further assurance on liquidity, we have also
undertaken a reverse stress test to identify what additional or alternative
scenarios and circumstances would threaten our current financing arrangements.
This shows that we have headroom against a further decline in profitability
beyond the severe-but-plausible scenario or a significant increase in
borrowings. Furthermore, the group has a range of levers which it could
utilise to protect headroom including reducing capital expenditure,
renegotiating payment terms and reducing future dividend distributions.
The directors are therefore of the opinion that the group has adequate
resources to fund its operations for the period of at least twelve months
following the date of these financial statements and there are no material
uncertainties relating to going concern so determine that it is appropriate to
prepare the accounts on a going concern basis.
Consolidated Income Statement
for the year ended 31(st) March 2023
2023 2022
Notes £m £m
Revenue 2,3 14,933 16,025
Cost of sales (13,939) (14,971)
Gross profit 994 1,054
Distribution costs (117) (101)
Administrative expenses (412) (400)
Profit on disposal of businesses 13 12 106
Amortisation of acquired intangibles 4 (5) (6)
Gains and losses on significant legal proceedings 4 (25) 42
Major impairment and restructuring charges 5 (41) (440)
Operating profit 406 255
Finance costs (110) (101)
Investment income 49 41
Share of losses of associates (1) -
Profit before tax from continuing operations 344 195
Tax expense (80) (79)
Profit for the year from continuing operations 264 116
Profit / (loss) after tax from discontinued operations 12 (217)
Profit / (loss) for the year 276 (101)
pence pence
Earnings / (loss) per ordinary share
Basic 6 150.9 (52.6)
Diluted 6 150.2 (52.6)
Earnings per ordinary share from continuing operations
Basic 6 144.2 60.9
Diluted 6 143.6 60.8
Consolidated Statement of Total Comprehensive Income
for the year ended 31(st) March 2023
2023 2022
Notes £m £m
Profit / (loss) for the year 276 (101)
Other comprehensive (expense) / income
Items that will not be reclassified to the income statement in subsequent
years
Remeasurements of post-employment benefit assets and liabilities 14 (149) 177
Fair value losses on equity investments at fair value through other
comprehensive income (12) (5)
Tax on items that will not be reclassified to the income statement 37 (35)
Total items that will not be reclassified to the income statement (124) 137
Items that may be reclassified to the income statement
Exchange differences on translation of foreign operations 33 75
Exchange differences on translation of discontinued foreign operations 12 (32) 5
Amounts credited / (charged) to hedging reserve 114 (36)
Fair value losses on net investment hedges (10) (2)
Tax on above items taken directly to or transferred from equity (28) 10
Total items that may be reclassified to the income statement (in subsequent 77 52
years)
Other comprehensive (expense) / income for the year (47) 189
Total comprehensive income for the year 229 88
Total comprehensive income for the year arises from:
Continuing operations 249 300
Discontinued operations 12 (20) (212)
229 88
Consolidated Statement of Financial Position
as at 31(st) March 2023
2023 2022
Notes £m £m
Assets
Non-current assets
Property, plant and equipment 8 1,332 1,238
Right-of-use assets 49 61
Goodwill 364 366
Other intangible assets 9 287 267
Investments in joint ventures and associates 75 2
Investments at fair value through other comprehensive income 49 45
Other receivables 10 113 42
Interest rate swaps 20 12
Other financial assets 48 -
Deferred tax assets 121 98
Post-employment benefit net assets 14 203 352
Total non-current assets 2,661 2,483
Current assets
Inventories 1,702 1,549
Taxation recoverable 12 18
Trade and other receivables 10 1,882 1,796
Cash and cash equivalents 650 391
Other financial assets 47 27
Assets classified as held for sale 12 75 402
Total current assets 4,368 4,183
Total assets 7,029 6,666
Liabilities
Current liabilities
Trade and other payables 11 (2,497) (2,563)
Lease liabilities (9) (10)
Taxation liabilities (105) (97)
Cash and cash equivalents ─ bank overdrafts (13) (37)
Borrowings and related swaps (155) (265)
Other financial liabilities (27) (44)
Provisions (63) (56)
Liabilities classified as held for sale 12 (25) (80)
Total current liabilities (2,894) (3,152)
Non-current liabilities
Borrowings and related swaps (1,460) (899)
Lease liabilities (31) (40)
Deferred tax liabilities (19) (18)
Interest rate swaps (15) (2)
Employee benefit obligations 14 (41) (72)
Other financial liabilities - (12)
Provisions (28) (28)
Trade and other payables 11 (2) (2)
Total non-current liabilities (1,596) (1,073)
Total liabilities (4,490) (4,225)
Net assets 2,539 2,441
Equity
Share capital 215 218
Share premium 148 148
Treasury shares (19) (24)
Other reserves 118 50
Retained earnings 2,077 2,049
Total equity 2,539 2,441
The accounts were approved by the Board of Directors on 25(th) May 2023 and
signed on its behalf by:
Directors
L Condon
S Oxley
Consolidated Statement of Cash Flows
for the year ended 31(st) March 2023
2023 2022
Notes £m* £m*
Cash flows from operating activities
Profit before tax from continuing operations 344 195
Profit / (loss) before tax from discontinued operations 5 (239)
Adjustments for:
Share of losses of associates 1 -
Profit on disposal of businesses (23) (106)
Depreciation 151 151
Amortisation 36 39
Impairment losses 27 632
(Profit) / loss on sale of non-current assets (6) 2
Share-based payments 7 8
(Increase) / decrease in inventories (139) 123
(Increase) / decrease in receivables (102) 588
Decrease in payables (4) (783)
Increase in provisions 7 25
Contributions in excess of employee benefit obligations charge (21) (2)
Changes in fair value of financial instruments 22 19
Net finance costs 61 60
Income tax paid (75) (107)
Net cash inflow from operating activities 291 605
Cash flows from investing activities
Interest received 28 32
Purchases of property, plant and equipment (253) (358)
Purchases of intangible assets (63) (95)
Purchases of investments held at fair value through other comprehensive income (17) -
Government grant income received 7 -
Proceeds from sale of non-current assets 8 1
Proceeds from sale of investments in joint ventures 2 -
Net proceeds from sale of businesses 187 160
Net cash outflow from investing activities (101) (260)
Cash flows from financing activities
Purchase of treasury shares (45) (155)
Proceeds from borrowings 672 9
Repayment of borrowings (281) (140)
Dividends paid to equity shareholders 7 (141) (139)
Interest paid (94) (111)
Principal element of lease payments (14) (14)
Net cash inflow / (outflow) from financing activities 97 (550)
Change in cash and cash equivalents 287 (205)
Exchange differences on cash and cash equivalents 4 6
Cash and cash equivalents at beginning of year 346 545
Cash and cash equivalents at end of year 637 346
Cash and deposits 129 254
Money market funds 521 137
Bank overdrafts (13) (37)
Bank overdrafts transferred to liabilities classified as held for sale - (8)
Cash and cash equivalents 637 346
* For cash flows of discontinued operations see note 12.
Consolidated Statement of Changes in Equity
for the year ended 31(st) March 2023
Share
Share premium Treasury Other Retained Total
capital account shares reserves earnings equity
£m £m £m £m £m £m
At 1(st) April 2021 221 148 (29) - 2,345 2,685
Total comprehensive income - - - 47 41 88
Dividends paid (note 7) - - - - (139) (139)
Purchase of treasury shares (3) - - 3 (200) (200)
Share-based payments - - - - 15 15
Cost of shares transferred to employees - - 5 - (13) (8)
At 31(st) March 2022 218 148 (24) 50 2,049 2,441
Total comprehensive income - - - 65 164 229
Dividends paid (note 7) - - - - (141) (141)
Purchase of treasury shares (3) - - 3 (1) (1)
Share-based payments - - - - 18 18
Cost of shares transferred to employees - - 5 - (14) (9)
Tax on share-based payments - - - - 2 2
At 31(st) March 2023 215 148 (19) 118 2,077 2,539
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
1 Preparation
Basis of preparation and statement of compliance
The financial statements of the group have been prepared on a going concern
basis in accordance with International Accounting Standards (IAS) in
conformity with the requirements of the Companies Act 2006. The financial
statements are also prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards
Board (IASB), adopted pursuant to Regulation (EC) No 1606/2002 as it applies
to the European Union, including the interpretations issued by the IFRS
Interpretations Committee. Except for the changes noted below, the accounting
policies applied are set out in the Annual Report and Accounts for the year
ended 31(st) March 2022.
As at 31(st) March 2023, the group maintains a strong balance sheet with
around £1.6 billion of available cash and undrawn committed facilities. Free
cash flow was positive in the year at £74 million. However, net debt
increased since 31(st) March 2022 to £1,023 million with the payment of
dividends and the share buyback. Net debt (including post tax pension
deficits) to underlying EBITDA at 1.6 times was at the lower end of our target
range.
The directors have reviewed the base case scenario forecasts for the group and
are of the opinion that the group has adequate resources to fund its
operations for the period of at least twelve months from the date of signing
these financial statements. In forming this view, the base case scenario was
stress tested to represent a severe-but-plausible downside case scenario which
modelled a material reduction in trading.
In both scenarios outlined above, we have sufficient headroom against
committed facilities and key financial covenants are not in breach during the
going concern period. Accordingly, the directors continue to adopt the going
concern basis in preparing the financial statements.
Statutory accounts for 2022 have been delivered to the Registrar of Companies
and those for 2023 will be delivered following the company's Annual General
Meeting. The auditor, PwC, has reported on both sets of accounts. Their
reports were unqualified, did not include a reference to any matters to which
the auditors drew attention by way of emphasis without qualifying their report
and did not contain any statement under sections 498(2) or 498(3) of the
Companies Act 2006. The accounts for the year ended 31(st) March 2023 were
approved by the Board of Directors on 25(th) May 2023.
These accounts do not include all the information required for full annual
statements and should be read in conjunction with the 2023 Annual Report. They
are not statutory accounts per section 435 of the Companies Act 2006.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
1 Preparation (continued)
Changes in accounting policies
Amendments to accounting standards
The IASB has issued the following amendments, which have been endorsed by the
UK Endorsement Board, for annual periods beginning on or after 1(st) January
2022:
- Annual improvements to IFRS Standards 2018-2020;
- Amendments to IAS 16, Property, Plant and Equipment: Proceeds before
intended use;
- Amendments to IAS 37, Onerous Contracts = Cost of Fulfilling a
Contract; and
- Amendments to IFRS 3, Reference to the Conceptual Framework
These changes have not had a material impact on the group. The group has not
early adopted any standard, interpretation or amendment that was issued but is
not yet effective.
New significant accounting policies adopted by the group
Investments in joint ventures and associates
A joint venture is a joint arrangement whereby investees are able to exercise
joint control of the arrangement.
Associates are entities over which the group exercises significant influence
when it has the power to participate in the financial and operating policy
decisions of the entity but it does not have the power to control or jointly
control the entity.
Investments in joint ventures and associates are accounted for using the
equity method of accounting and are initially recognised at cost. Thereafter
the investments are adjusted to recognise the group's share of the
post-acquisition profits or losses after tax of the investee in the income
statement, and the group's share of movements in other comprehensive income of
the investee in other comprehensive income. Dividends received or receivable
from associates are recognised as a reduction in the carrying amount of the
investment. The carrying value of the investments are reviewed for impairment
triggers on a regular basis.
Where the group's share of losses in an equity-accounted investment equals or
exceeds its interest in the entity, the group does not recognise further
losses unless it has incurred obligations to do so.
Unrealised gains and losses on transactions between the group and its
associates are eliminated to the extent of the group's interest in these joint
ventures and associates.
Non-GAAP measures
The group uses various measures to manage its business which are not defined
by generally accepted accounting principles (GAAP). The group's management
believes these measures provide valuable additional information to users of
the accounts in understanding the group's performance. The group's non-GAAP
measures are defined and reconciled to GAAP measures in note 19.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
2 Segmental information
Revenue, sales, underlying operating profit and net assets by sector
Year ended 31(st) March 2023
Clean PGM Catalyst Hydrogen Value
Air Services Technologies Technologies Businesses Corporate Eliminations Total
£m £m £m £m £m £m £m £m
Revenue from external customers 6,273 7,360 673 62 565 - - 14,933
Inter-segment revenue - 3,227 14 - - - (3,241) -
Revenue 6,273 10,587 687 62 565 - (3,241) 14,933
External sales 2,644 485 547 55 470 - - 4,201
Inter-segment sales - 85 13 - - - (98) -
Sales(1) 2,644 570 560 55 470 - (98) 4,201
Underlying operating profit / (loss)(1) 230 257 51 (45) 40 (68) - 465
Segmental net assets 1,784 (2) 680 114 175 515 - 3,266
Net debt (note 19) (1,023)
Post-employment benefits net assets and liabilities (note 14) 162
Deferred tax net asset 102
Provisions and non-current other payables (93)
Investments in joint ventures and associates 75
Net assets held for sale (note 12) 50
Net assets 2,539
Year ended 31(st) March 2022*
PGM Catalyst Hydrogen Value
Clean Services Technologies Technologies Businesses Eliminations
Air (restated) (restated) (restated) (restated) Corporate (restated) Total
£m £m £m £m £m £m £m £m
Revenue from external customers 7,085 7,880 581 30 449 - - 16,025
Inter-segment revenue 4 4,549 6 - 1 - (4,560) -
Revenue 7,089 12,429 587 30 450 - (4,560) 16,025
External sales 2,455 497 448 25 353 - - 3,778
Inter-segment sales 2 90 6 - 1 - (99) -
Sales(1) 2,457 587 454 25 354 - (99) 3,778
Underlying operating profit / (loss)(1) 302 308 50 (33) 12 (86) - 553
Segmental net assets 2,108 (702) 743 51 169 330 - 2,699
Net debt (856)
Post-employment benefit net assets and liabilities (note 14) 280
Deferred tax net asset 80
Provisions and non-current other payables (86)
Investments in joint ventures and associates 2
Net assets held for sale 322
Net assets 2,441
(1) Sales and underlying operating profit are non-GAAP measures (see note 19).
Sales excludes the sale of precious metals. Underlying operating profit
excludes profit or loss on disposal of businesses, gain or loss on significant
legal proceedings, together with associated legal costs, amortisation of
acquired intangibles and major impairment and restructuring charges.
* The comparative period is restated to reflect the group's updated reporting
segments. The overall group total is as previously reported.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
3 Revenue
Products and services
The group's principal products and services by operating sector and sub-sector
are disclosed in the table below, together with information regarding
performance obligations and revenue recognition. Revenue is recognised by the
group as contractual performance obligations to customers are completed.
Sub-sector Primary industry Principal products and services Performance obligations Revenue recognition
Clean Air
Light Duty Catalysts Automotive Catalysts for cars and other light duty vehicles Point in time On despatch or delivery
Heavy Duty Catalysts Automotive Catalysts for trucks, buses and non-road equipment Point in time On despatch or delivery
PGM Services
Platinum Group Metal Services Various Platinum Group Metal refining and recycling services Over time Based on output
Platinum Group Metal trading Point in time On receipt of payment
Other precious metal products Point in time On despatch or delivery
Platinum Group Metal chemical, industrial products and catalysts Point in time On despatch or delivery
Catalyst Technologies
Catalyst Technologies Chemicals / oil and gas Speciality catalysts and additives Point in time On despatch or delivery
Process technology licences Over time Based on costs incurred or straight-line over the licence term(1)
Engineering design services Over time Based on costs incurred
Hydrogen Technologies
Fuel Cells technologies Various Fuel cell catalyst coated membrane Point in time On despatch or delivery
Electrolysis technology Various Electrolyser catalyst coated membrane Point in time On despatch or delivery
Value Businesses
Other Markets (excluding Diagnostic Services) Various Precious metal pastes and enamels, battery systems and products found in Point in time On despatch or delivery
devices used in medical procedures
Diagnostic Services Oil and gas Detection, diagnostic and measurement solutions Over time Based on costs incurred
(1) Revenue recognition depends on whether the licence is distinct in the
context of the contract.
( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )
Metal revenue: Metal revenue relates to the sales of precious metals to
customers, either in pure form or contained within a product. Metal revenue
arises in each of the reportable segments in the Group. Metal revenue is
affected by fluctuations in the market prices of precious metals and, in many
cases, the value of precious metals is passed directly on to customers. Given
the high value of these metals this makes up a significant proportion of
revenue.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
3 Revenue (continued)
Revenue from external customers by principal products and services
Year ended 31(st) March 2023
Continuing operations
Clean Air PGM Catalyst Hydrogen Value Businesses Total
Services Technologies Technologies
£m £m £m £m £m £m
Metal 3,629 6,875 126 7 95 10,732
Heavy Duty Catalysts 970 - - - - 970
Light Duty Catalysts 1,674 - - - - 1,674
Catalyst Technologies - - 547 - - 547
Platinum Group Metal Services - 485 - - - 485
Fuel Cells - - - 55 - 55
Battery Systems - - - - 284 284
Diagnostic Services - - - - 71 71
Medical Device Components - - - - 93 93
Other - - - - 22 22
Revenue 6,273 7,360 673 62 565 14,933
Year ended 31(st) March 2022*
Continuing operations
PGM Catalyst Hydrogen Value Businesses
Services Technologies Technologies
Clean Air (restated) (restated) (restated) (restated) Total
£m £m £m £m £m £m
Metal 4,630 7,383 133 5 96 12,247
Heavy Duty Catalysts 849 - - - - 849
Light Duty Catalysts 1,578 - - - - 1,578
Catalyst Technologies - - 448 - - 448
Platinum Group Metal Services - 497 - - - 497
Fuel Cells - - - 25 - 25
Battery Materials - - - - 12 12
Battery Systems - - - - 151 151
Advanced Glass Technologies - - - - 62 62
Diagnostic Services - - - - 54 54
Medical Device Components - - - - 74 74
Other 28 - - - - 28
Revenue 7,085 7,880 581 30 449 16,025
* The comparative period is restated to reflect the group's updated reporting
segments. The overall group total is as previously reported.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
4 Operating profit
Operating profit is arrived at after charging / (crediting):
2023 2022
£m £m
Total research and development expenditure 213 201
Less: Development expenditure capitalised - (22)
Research and development expenditure charged to the income statement 213 179
Less: External funding received from governments (19) (18)
Net research and development expenditure charged to the income statement 194 161
Inventories recognised as an expense 12,962 14,121
Write-down of inventories recognised as an expense 39 26
Reversal of write-down of inventories from increases in net realisable value (19) (16)
Net gains on foreign exchange (11) (2)
Net losses on foreign currency forwards at fair value through profit or loss 19 6
Past service credit (20) (11)
Depreciation of:
Property, plant and equipment 137 125
Right-of-use assets 14 13
Depreciation 151 138
Amortisation of:
Internally generated intangible assets 1 1
Acquired intangibles 5 6
Other intangible assets 30 32
Amortisation 36 39
Gains and losses on significant legal proceedings 25 (42)
Profit on disposal of businesses (note 13) (12) (106)
Impairment losses included in administrative expenses 3 3
Impairment losses 3 3
Impairment losses and reversals included in major impairment and restructuring 10 401
charges
Restructuring charges included in major impairment and restructuring charges 31 39
Major impairment and restructuring charges (note 5) 41 440
Fees payable to the company's auditor and its associates for:
The audit of these accounts 2.2 2.1
The audit of the accounts of the company's subsidiaries 2.4 2.4
The audit of prior period accounts 0.2 0.2
Total audit fees 4.8 4.7
Audit-related assurance services 0.4 0.4
Total non audit fees 0.4 0.4
Total fees payable to the company's auditor and its associates 5.2 5.1
Gains and losses on significant legal proceedings
During the year, the group paid £25 million in respect of a settlement with a
customer on mutually acceptable terms with no admission of fault relating to
failures in certain engine systems for which the group supplied a particular
coated substrate as a component for that customer's emissions after-treatment
systems.
During the prior year, the group recognised a gain of £44 million in relation
to damages and interest from a company found to have unlawfully copied one of
our technology designs. An additional gain of £6 million was recognised
following conclusion of legal proceedings associated to investments in Battery
Materials, this was partially offset by a £8 million charge for environmental
and other costs. Gains and losses on significant legal proceedings are
reported as non-underlying.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
5 Major impairment and restructuring charges
2023 2022
£m £m
Property, plant and equipment 17 238
Right-of-use assets - 4
Goodwill 4 45
Other intangible assets 3 78
Inventories (8) 17
Trade and other receivables (6) 19
Impairment losses and reversals 10 401
Restructuring charges 31 39
Total major impairment and restructuring charges 41 440
Major impairment and restructuring charges are shown separately on the face of
the income statement and excluded from underlying operating profit (see note
19).
Major impairments - The group's net impairment charge of £10 million includes
further impairment charges to plants and related production assets in Clean
Air as the sector continues to consolidate its existing capacity into new,
more efficient plants in order to create a simplified and agile structure.
Further impairment charges were also recognised in relation to parts of the
Battery Materials business reflecting elements of the contract to sell the
business to EV Metals Group.
On 3(rd) May 2023 the group announced the sale of its Diagnostic Services
business to Sullivan Street Partners. The business is presented as held for
sale (refer to note 12) at fair value less estimated costs to sell. This has
resulted in an impairment to goodwill of £4 million.
The major impairments charge also includes impairment reversals for previously
impaired Clean Air equipment that has been re-purposed, and Russia related
inventories and receivables that have subsequently been recovered in cash.
Although this cash is reported as restricted (see note 19), there are no
impairment indicators.
Major restructuring - The group's transformation programme was launched in May
2022 and was designed to drive increased competitiveness, improved execution
capability and create financial headroom to facilitate further investment in
high growth areas. Restructuring charges of £17 million have been recognised
of which the majority is redundancy and implementation costs. The remaining
charge is related to Clean Air's ongoing plant consolidation initiatives.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
6 Earnings / (loss) per share
2023 2022
pence pence
Basic 150.9 (52.6)
Diluted 150.2 (52.6)
Basic from continuing operations 144.2 60.9
Diluted from continuing operations 143.6 60.8
Earnings per ordinary share have been calculated by dividing profit for the
period by the weighted average number of shares in issue during the period.
Weighted average number of shares in issue 2023 2022
Basic 183,012,301 191,568,756
Dilution for long term incentive plans 851,432 585,024
Diluted 183,863,733 192,153,780
7 Dividends
A final dividend of 55.00 pence per ordinary share has been proposed by the
board which will be paid on 1(st) August 2023 to shareholders on the register
at the close of business on 10(th) June 2023, subject to shareholders'
approval. The estimated amount to be paid is £101 million and has not been
recognised in these accounts.
2023 2022
£m £m
2020/21 final ordinary dividend paid ─ 50.00 pence per share - 96
2021/22 interim ordinary dividend paid ─ 22.00 pence per share - 43
2021/22 final ordinary dividend paid ─ 55.00 pence per share 100 -
2022/23 interim ordinary dividend paid ─ 22.00 pence per share 41 -
Total dividends 141 139
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
8 Property, plant and equipment
Freehold Assets in
land and Leasehold Plant and the course of
buildings improvements machinery construction Total
£m £m £m £m £m
Cost
At 1(st) April 2022 570 27 2,055 304 2,956
Additions 1 - 24 217 242
Transferred to assets classified as held for sale (note 12) - (1) (41) - (42)
Transfers from assets in the course of construction 22 2 128 (152) -
Disposals (1) (1) (33) (13) (48)
Disposal of businesses (note 13) - - (10) - (10)
Exchange adjustments 7 1 28 4 40
At 31(st) March 2023 599 28 2,151 360 3,138
Accumulated depreciation and impairment
At 1(st) April 2022 265 14 1,424 15 1,718
Charge for the year 17 1 119 - 137
Impairment losses - - 8 4 12
Transferred to assets classified as held for sale (note 12) - (1) (31) - (32)
Disposals (1) - (33) (11) (45)
Disposal of businesses (note 13) - - (8) - (8)
Exchange adjustments 3 1 20 - 24
At 31(st) March 2023 284 15 1,499 8 1,806
Carrying amount at 31(st) March 2023 315 13 652 352 1,332
Carrying amount at 1(st) April 2022 305 13 631 289 1,238
During the year, the group recognised impairments of £12 million. The
impairment charge is comprised of £3 million included in administrative
expenses, see note 4, and a net £9 million charge included in non-underlying
expenses.
During the prior year, the group recognised impairments of £295 million. The
impairment charge is comprised of £2 million included in administrative
expenses, and £238 million included in non-underlying expenses. A further
£55 million of impairment charges were incurred in relation to the Health
segment.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
9 Other intangible assets
Customer
contracts Patents, Acquired
and Computer trademarks research and Development
relationships software and licences technology expenditure Total
£m £m £m £m £m £m
Cost
At 1(st) April 2022 132 419 47 37 135 770
Additions - 59 2 - - 61
Transferred to assets classified as held for sale (note 12) (1) (1) - (1) - (3)
Disposals (2) (2) (7) - - (11)
Disposal of businesses (note 13) (13) - - - - (13)
Exchange adjustments - - 1 1 - 2
At 31(st) March 2023 116 475 43 37 135 806
Accumulated amortisation and impairment
At 1(st) April 2022 112 178 44 36 133 503
Charge for the year 4 31 - 1 - 36
Impairment losses - 3 - - - 3
Transferred to assets classified as held for sale (note 12) (1) (1) - (1) - (3)
Disposals (2) (2) (6) - - (10)
Disposal of businesses (note 13) (13) - - - - (13)
Exchange adjustments 1 - 1 1 - 3
At 31(st) March 2023 101 209 39 37 133 519
Carrying amount at 31(st) March 2023 15 266 4 - 2 287
Carrying amount at 1(st) April 2022 20 241 3 1 2 267
During the year, the group recognised impairments of £3 million, see note 5.
During the prior year, the group recognised impairments of £102 million. The
impairment charge is comprised of £1 million included in administrative
expenses and £78 million included in non-underlying expenses. A further £23
million of impairment charges were incurred in relation to the Health segment.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
10 Trade and other receivables
2023 2022
£m £m
Current
Trade receivables 1,304 1,393
Contract receivables 70 88
Prepayments 83 75
Value added tax and other sales tax receivable 142 89
Advance payments to customers 10 10
Amounts receivable under precious metal sale and repurchase agreements(1) 222 114
Other receivables 51 27
Trade and other receivables 1,882 1,796
Non-current
Value added tax and other sales tax receivable 3 3
Advance payments to customers 53 39
Other receivables 57 -
Other receivables 113 42
(1) The fair value of the precious metal contracted to be sold by the group
under sale and repurchase agreements is £215 million (31(st) March 2022:
£108 million).
11 Trade and other payables
2023 2022
£m £m
Current
Trade payables 831 753
Contract liabilities 181 273
Accruals 338 439
Amounts payable under precious metal sale and repurchase agreements(1) 838 793
Other payables 309 305
Trade and other payables 2,497 2,563
Non-current
Other payables 2 2
Trade and other payables 2 2
(1) The fair value of the precious metal contracted to be repurchased by the
group under sale and repurchase agreements is £802 million (31(st) March
2022: £782 million).
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
12 Discontinued operations and assets and liabilities classified as held for sale
The group strategically drives for efficiency and disciplined capital
allocation to enhance returns, as such we continue to actively manage our
portfolio. In line with this strategy and to focus on our core businesses,
during the period we completed the sale of our Health, Battery Materials UK,
Battery Materials Canada and Piezo Products businesses.
The Health segment is classified as a discontinued operation and presented
separately in the consolidated income statement. The Health segment was
classified as held for sale and a discontinued operation for the year to
31(st) March 2022.
Financial information relating to the Health discontinued operations for the
period to disposal date (1(st) June 2022) is set out below. The 30% equity
interest in the business is equity accounted as an investment in associate.
2023 2022
£m £m
Revenue 35 164
Expenses (41) (161)
Underlying operating (loss) / profit from discontinued operations (6) 3
Major impairment and restructuring costs from discontinued operations - (242)
Loss before tax from discontinued operations (6) (239)
Tax credit 2 22
Profit on disposal of discontinued operations after tax (see note 13)* 16 -
16
Profit / (loss) from discontinued operations 12 (217)
Exchange differences on translation of discontinued operations (32) 5
Other comprehensive (expense) / income from discontinued operations (32) 5
Total comprehensive expense from discontinued operations (20) (212)
Net cash inflow from operating activities 13 33
Net cash outflow from investing activities (5) (30)
Net cash outflow from financing activities - (6)
Net increase / (decrease) in cash generated by the discontinued operations 8 (3)
pence pence
Earnings / (loss) per ordinary share from discontinued operations
Basic earnings / (loss) per ordinary share from discontinued operations 6.7 (113.5)
Diluted earnings / (loss) per ordinary share from discontinued operations 6.6 (113.5)
* The profit on disposal of discontinued operations after tax includes a tax
credit of £5 million.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
12 Discontinued operations and assets and liabilities classified as held for sale
(continued)
The group decided to sell its Battery Materials Germany and Poland business.
As at 31(st) March 2023, the fair value of the proceeds less costs to sell for
the Battery Materials business was estimated to be £15 million. The business
is classified as a disposal group held for sale.
Additionally, in May 2023 the group agreed to sell its Diagnostic Services
business. As at 31(st) March 2023, the proceeds less costs to sell for the
Diagnostic Services business was estimated to be £37 million and so an
impairment of £4 million against goodwill has been recognised, see note 5.
The business is classified as a disposal group held for sale.
The major classes of assets and liabilities comprising the businesses
classified as held for sale as at 31(st) March are:
2023
Diagnostic Battery
Services Materials Total 2022
£ million £m £m £m
Non-current assets
Property, plant and equipment 10 17 27 146
Right-of-use-assets 9 - 9 2
Other intangible assets - 1 1 52
Deferred tax assets 3 - 3 -
Current assets
Inventories 5 - 5 138
Taxation recoverable - - - 1
Trade and other receivables 30 - 30 63
Assets classified as held for sale 57 18 75 402
Current liabilities
Trade and other payables (11) (3) (14) (60)
Lease liabilities (1) - (1) (2)
Taxation liabilities (1) - (1) -
Cash and cash equivalents - bank overdrafts - - - (8)
Provisions - - - (2)
Non-current liabilities
Lease liabilities (9) - (9) (7)
Provisions - - - (1)
Liabilities classified as held for sale (22) (3) (25) (80)
Net assets of disposal group 35 15 50 322
The prior year held for sale balances relate to Health and Battery Materials.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
13 Disposals
Health (discontinued operation)
On 1(st) June 2022, the group completed the sale of its Health business for a
gross consideration of £325 million. This gross consideration is comprised of
£150 million cash, a £50 million vendor loan note (which we have recorded as
an other receivable), £75 million in the form of shares which constitutes a
30% equity interest in the business (which we have equity accounted for as an
investment in associate) and £50 million in contingent consideration (which
we have recognised at a fair value of £nil). After adjusting for working
capital and an additional £3 million cash receipt due to cash in business
upon disposal, the net consideration was £272 million. The business was
disclosed as a disposal group held for sale as at 31(st) March 2022.
Battery Materials
On 26(th) May 2022, the group completed the sale of part of its Battery
Materials UK business for a cash consideration of £20 million. The business
was disclosed as a disposal group held for sale as at 31(st) March 2022.
On 1(st) November 2022, the group completed the sale of its Battery Materials
Canada business for a cash consideration of £12 million. The business was
disclosed as a disposal group held for sale as at 30(th) September 2022.
Piezo Products
On 31(st) January 2023, the group completed the sale of its Piezo Products
business for a cash consideration of £18 million. The business was disclosed
as a disposal group held for sale as at 30(th) September 2022.
Continuing operations
Battery Battery
Health Materials Materials Piezo
(discontinued) UK Canada Products Total
£m £m £m £m £m
Proceeds
Cash consideration 153 20 12 18 50
Cash and cash equivalents disposed (5) - - (2) (2)
Net cash consideration 148 20 12 16 48
Disposal costs paid (1) (1) (1) (1) (3)
Net cash inflow 147 19 11 15 45
Assets and liabilities disposed
Non-current assets
Property, plant and equipment 105 14 1 2 17
Right-of-use-assets 1 - - - -
Goodwill - - - 4 4
Other intangible assets 42 10 - - 10
Deferred tax assets 13 - - - -
Current assets
Inventories 142 - 1 5 6
Trade and other receivables 60 - 7 1 8
Cash and cash equivalents 5 - - 2 2
Current liabilities
Trade and other payables (71) - (1) (1) (2)
Lease liabilities (1) (5) - - (5)
Provisions (1) - - - -
Non-current liabilities
Lease liabilities (2) - - - -
Pension liabilities - - - (4) (4)
Provisions (1) - - - -
Net assets disposed 292 19 8 9 36
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
13 Disposals (continued)
Continuing operations
Battery Battery
Health Materials Materials Piezo
(discontinued) UK Canada Products Total
£m £m £m £m £m
Cash consideration 153 20 12 18 50
Non-cash consideration 119 - - - -
Less: carrying amount of net assets sold (292) (19) (8) (9) (36)
Less: disposal costs (1) (1) (1) (1) (3)
Cumulative currency translation gain / (loss) recycled from other 32 - (2) 3 1
comprehensive income
Profit recognised in the income statement 11 - 1 11 12
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
14 Post-employment benefits
Background
The group operates a number of post-employment benefit plans around the world,
the forms and benefits of which vary with conditions and practices in the
countries concerned. The major defined benefit plans are pension plans and
post-retirement medical plans in the UK and the US.
Financial assumptions
2023 2023 2023 2022 2022 2022
UK plan US plans Other plans UK plan US plans Other plans
% % % % % %
First year's rate of increase in salaries 4.40 4.50 3.97 3.85 3.00 2.20
Ultimate rate of increase in salaries 3.40 4.50 2.20 3.85 3.00 2.20
Rate of increase in pensions in payment 2.90 - 2.80 3.20 - 2.11
Discount rate 4.80 4.90 4.40 2.80 3.70 2.13
Inflation - 2.50 3.90 - 2.20 2.15
- UK Retail Prices Index (RPI) 3.10 - - 3.60 - -
- UK Consumer Prices Index (CPI) 2.65 - - 3.10 - -
Financial information
Movements in the net post-employment benefit assets and liabilities, including
reimbursement rights, were:
UK post- US post-
UK pension - UK pension - retirement retirement
legacy cash balance medical US medical
section section benefits pensions benefits Other Total
£m £m £m £m £m £m £m
At 1(st) April 2022 351 (18) (9) (2) (13) (26) 283
Current service cost - in operating profit (4) (21) - (5) - (1) (31)
Past service credit - in operating profit (2) - - 22 - - 20
Administrative expenses - in operating profit (4) - - (1) - - (5)
Interest 9 1 - - (1) (1) 8
Remeasurements (189) 44 1 (14) 3 6 (149)
Company contributions 8 21 1 7 1 2 40
Disposal of business - - - - - 3 3
Exchange - - - (1) - (3) (4)
At 31(st) March 2023 169 27 (7) 6 (10) (20) 165
The post-employment benefit assets and liabilities are included in the balance
sheet as follows:
2023 2023 2023 2022 2022 2022
Post- Post-
employment Employee employment Employee
benefit benefit net benefit benefit net
net assets obligations Total net assets obligations Total
£m £m £m £m £m £m
UK pension - legacy section 169 - 169 351 - 351
UK pension - cash balance section 27 - 27 - (18) (18)
UK post-retirement medical benefits - (7) (7) - (9) (9)
US pensions 6 - 6 - (2) (2)
US post-retirement medical benefits - (10) (10) - (13) (13)
Other 1 (21) (20) 1 (27) (26)
Total post-employment plans 203 (38) 165 352 (69) 283
Other long-term employee benefits (3) (3)
Total long-term employee benefit obligations (41) (72)
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
15 Fair values
Fair value hierarchy
Fair values are measured using a hierarchy where the inputs are:
· Level 1 ─ quoted prices in active markets for identical assets or
liabilities.
· Level 2 ─ not level 1 but are observable for that asset or
liability either directly or indirectly.
· Level 3 ─ not based on observable market data (unobservable).
Fair value of financial instruments
Certain of the group's financial instruments are held at fair value. The fair
value of a financial instrument is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market
participants at the balance sheet date.
The fair value of forward foreign exchange contracts, interest rate swaps,
forward precious metal price contracts and currency swaps is estimated by
discounting the future contractual cash flows using forward exchange rates,
interest rates and prices at the balance sheet date.
The fair value of trade and other receivables measured at fair value is the
face value of the receivable less the estimated costs of converting the
receivable into cash.
The fair value of money market funds is calculated by multiplying the net
asset value per share by the investment held at the balance sheet date.
There were no transfers of any financial instrument between the levels of the
fair value hierarchy during the current or prior years.
Notes on the Preliminary Accounts
for the year ended 31st March 2023
15 Fair values (continued)
2023 2022 Fair value
hierarchy
£m £m Level
Financial instruments measured at fair value
Non-current
Investments at fair value through other comprehensive income(1) 49 45 1
Interest rate swaps - assets 20 12 2
Other financial assets(2) 48 - 2
Interest rate swaps - liabilities (15) (2) 2
Borrowings and related swaps (5) (2) 2
Other financial liabilities(2) - (12) 2
Current
Trade receivables(3) 329 492 2
Other receivables(4) 21 44 2
Cash and cash equivalents - money market funds 521 137 2
Other financial assets(2) 47 27 2
Other financial liabilities(2) (27) (44) 2
Financial instruments not measured at fair value
Non-current
Borrowings and related swaps (1,455) (897) -
Lease liabilities (31) (40) -
Trade and other receivables 57 - -
Other payables (2) (2) -
Current
Amounts receivable under precious metal sale and repurchase agreements 222 114 -
Amounts payable under precious metal sale and repurchase agreements (838) (793) -
Cash and cash equivalents - cash and deposits 129 254 -
Cash and cash equivalents - bank overdrafts (13) (37) -
Borrowings and related swaps (155) (265) -
Lease liabilities (9) (10) -
Trade and other receivables 1,075 972 -
Trade and other payables (1,478) (1,497) -
(1) Investments at fair value through other comprehensive income are quoted
bonds purchased to fund pension deficits (£36 million) and an investment held
at fair value through other comprehensive income (£13 million).
(2) Includes forward foreign exchange contracts, forward precious metal price
contracts and currency swaps.
(3) Trade receivables held in a part of the group with a business model to
hold trade receivables for collection or sale. The remainder of the group
operates a hold to collect business model and receives the face value, plus
relevant interest, of its trade receivables from the counterparty without
otherwise exchanging or disposing of such instruments.
(4) Other receivables with cash flows that do not represent solely the payment
of principal and interest.
The fair values are calculated using level 2 inputs by discounting future cash
flows to net present values using appropriate market interest rates prevailing
at the year end.
The fair value of financial instruments, excluding accrued interest, is
approximately equal to book value except for:
2023 2022
Carrying Fair Carrying Fair
amount value amount value
£m £m £m £m
US Dollar Bonds 2023, 2025, 2027, 2028, 2029 and 2030 (648) (618) (688) (662)
Euro Bonds 2023, 2025, 2028, 2030 and 2032 (368) (340) (176) (179)
Sterling Bonds 2024, 2025 and 2029 (145) (137) (110) (107)
KfW US Dollar Loan 2024 (40) (39) (38) (36)
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
16 Precious metal leases
The group leases precious metals to fund temporary peaks in metal requirements
provided market conditions allow. These leases are from banks for specified
periods (less than 12 months) and the group pays a fee which is expensed on a
straight-line basis over the lease term in finance costs. The group holds
sufficient precious metal inventories to meet all the obligations under these
lease arrangements as they fall due. At 31(st) March 2023, precious metal
leases were £138 million at closing prices (31(st) March 2022: £140
million).
17 Contingent liabilities
The group is involved in various disputes and claims which arise from time to
time in the course of its business including, for example, in relation to
commercial matters, product quality or liability, employee matters and tax
audits(1). The group is also involved from time to time in the course of its
business in legal proceedings and actions, engagement with regulatory
authorities and in dispute resolution processes. These are reviewed on a
regular basis and, where possible, an estimate is made of the potential
financial impact on the group. In appropriate cases a provision is recognised
based on advice, best estimates and management judgement. Where it is too
early to determine the likely outcome of these matters, no provision is made.
Whilst the group cannot predict the outcome of any current or future such
matters with any certainty, it currently believes the likelihood of any
material liabilities to be low, and that such liabilities, if any, will not
have a material adverse effect on its consolidated income, financial position
or cash flows.
Following the sale of its Health business in May 2022, the group has been
engaged in correspondence with the purchaser of the Health business, Veranova
Bidco LP regarding certain warranties in the sale and purchase agreement (the
"SPA") dated 16(th) December 2021. The purchaser has issued a claim against
the group entities in connection with: i) certain alleged representations said
to have been made during the course of the negotiation of the SPA; and, ii)
certain warranties given in the SPA at the time of signing. Having reviewed
the claim with its advisers, the group is of the opinion that it has a
defensible position in respect of these allegations and if required, it will
vigorously defend its position. The outcome of any legal proceedings relating
to this matter is not certain, nor is the group able to make a reliable
estimate of the possible financial impact at this stage, if any.
(1) A previously disclosed contingent liability relating to failures in
certain engine systems for which the group supplied a particular coated
substrate as a component for that customer's emissions after-treatment systems
was settled on mutually acceptable terms with no admission of fault, see note
4.
18 Transactions with related parties
There have been no material changes in total compensation for key management
personnel during the year.
During the year the group recharged transition related costs of £8 million
(2022: £nil) to related parties. The amounts owed by related parties were £3
million at 31(st) March 2023 (31(st) March 2022: £nil).
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
19 Non-GAAP measures
The group uses various measures to manage its business which are not defined
by generally accepted accounting principles (GAAP). The group's management
believes these measures provide valuable additional information to users of
the accounts in understanding the group's performance. Certain of these
measures are financial Key Performance Indicators which measure progress
against our strategy.
All non-GAAP measures are on a continuing operations basis.
Definitions
-Measure Definition Purpose
Sales(1) Revenue excluding sales of precious metals to customers and the precious metal Provides a better measure of the growth of the group as revenue can be heavily
content of products sold to customers. distorted by year on year fluctuations in the market prices of precious metals
and, in many cases, the value of precious metals is passed directly on to
customers.
Underlying operating profit(2) Operating profit excluding non-underlying items. Provides a measure of operating profitability that is comparable over time.
Underlying operating profit margin(1, 2) Underlying operating profit divided by sales. Provides a measure of how we convert our sales into underlying operating
profit and the efficiency of our business.
Underlying profit before tax(2) Profit before tax excluding non-underlying items. Provides a measure of profitability that is comparable over time.
Underlying profit for the year(2) Profit for the year excluding non-underlying items and related tax effects. Provides a measure of profitability that is comparable over time.
Underlying earnings per share(1, 2) Underlying profit for the year divided by the weighted average number of Our principal measure used to assess the overall profitability of the group.
shares in issue.
Return on invested capital (ROIC)(1) Annualised underlying operating profit divided by the 12 month average capital Provides a measure of the group's efficiency in allocating the capital under
employed (net debt plus equity), excluding average post tax pension net its control to profitable investments. The group has a long-term target of a
assets. return on invested capital of 20% to ensure focus on efficient use of the
group's capital.
Average working capital days (excluding precious metals)(1) Monthly average of non-precious metal related inventories, trade and other Provides a measure of efficiency in the business with lower days driving
receivables and trade and other payables (including any classified as held for higher returns and a healthier liquidity position for the group.
sale) divided by sales for the last three months multiplied by 90 days.
Free cash flow Net cash flow from operating activities after net interest paid, net purchases Provides a measure of the cash the group generates through its operations,
of non-current assets and investments, proceeds from disposal of businesses, less capital expenditure.
dividends received from joint ventures and associates and the principal
element of lease payments.
Net debt (including post tax pension deficits) to underlying EBITDA Net debt, including post tax pension deficits and quoted bonds purchased to Provides a measure of the group's ability to repay its debt. The group has a
fund the UK pension (excluded when the UK pension plan is in surplus) divided long-term target of net debt (including post tax pension deficits) to
by underlying EBITDA for the same period. underlying EBITDA of between 1.5 and 2.0 times, although in any given year it
may fall outside this range depending on future plans.
(1) Key Performance Indicator
(2) Underlying profit measures are before profit or loss on disposal of
businesses, gains or loss on significant legal proceedings, together with
associated legal costs, amortisation of acquired intangibles, major impairment
and restructuring charges, share of profits or losses from non-strategic
equity investments and, where relevant, related tax effects. These items have
been excluded by management as they are not deemed to be relevant to an
understanding of the underlying performance of the business.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
19 Non-GAAP measures (continued)
Reconciliations to GAAP measures
Sales
2023 2022
£m £m
Revenue (note 3) 14,933 16,025
Less: sales of precious metals to customers (note 3) (10,732) (12,247)
Sales 4,201 3,778
Underlying profit measures
Year ended 31(st) March 2023
Operating profit Profit before tax Tax expense Profit for the year
£m £m £m £m
Underlying 465 404 (78) 326
Profit on disposal of businesses 12 12 (1) 11
Amortisation of acquired intangibles (5) (5) 1 (4)
Gains and losses on significant legal proceedings (25) (25) 5 (20)
Major impairment and restructuring charges (41) (41) (7) (48)
Share of losses of associates - (1) - (1)
Reported 406 344 (80) 264
Year ended 31(st) March 2022
Operating profit Profit before tax Tax expense Profit for the year
£m £m £m £m
Underlying 553 493 (86) 407
Profit on disposal of businesses 106 106 (4) 102
Amortisation of acquired intangibles (6) (6) 1 (5)
Gains and losses on significant legal proceedings 42 42 (6) 36
Major impairment and restructuring charges (440) (440) 16 (424)
Reported 255 195 (79) 116
Underlying earnings per share
2023 2022
Underlying profit for the year (£ million) 326 407
Weighted average number of shares in issue (millions) 183.0 191.6
Underlying earnings per share (pence) 178.6 213.2
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
19 Non-GAAP measures (continued)
Return on invested capital (ROIC)
2023 2022
£m £m
Underlying operating profit 465 553
Average net debt 1,267 877
Average equity 2,524 2,467
Average capital employed 3,791 3,344
Less: Average pension net assets (312) (221)
Less: Average related deferred taxation 84 48
Average capital employed (excluding post tax pension net assets) 3,563 3,171
ROIC (excluding post tax pension net assets) 13.1% 17.4%
ROIC 12.3% 16.5%
Average working capital days (excluding precious metals)
2023 2022
£m £m
Inventories 1,702 1,549
Trade and other receivables 1,882 1,796
Trade and other payables (2,497) (2,563)
1,087 782
Working capital balances classified as held for sale 22 -
Total working capital 1,109 782
Less: Precious metal working capital (622) (562)
Working capital (excluding precious metals) 487 220
Average working capital days (excluding precious metals) 42 36
Free cash flow from continuing operations
2023 2022
£m £m
Net cash inflow from operating activities 291 605
Interest received 28 32
Interest paid (94) (111)
Purchases of property, plant and equipment (253) (358)
Purchases of intangible assets (63) (95)
Purchases of investments held at fair value through other comprehensive income (17) -
Government grant income 7 -
Net proceeds from sale of businesses 187 160
Proceeds from sale of non-current assets 8 1
Proceeds from sale of investment in joint ventures 2 -
Principal element of lease payments (14) (14)
Less: Free cash (inflow) / outflow from discontinued operations (8) 1
Free cash flow 74 221
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
19 Non-GAAP measures (continued)
Net debt (including post tax pension deficits) to underlying EBITDA
2023 2022
£m £m
Cash and deposits 129 254
Money market funds 521 137
Bank overdrafts (13) (37)
Bank overdrafts transferred to liabilities classified as held for sale - (8)
Cash and cash equivalents 637 346
Less: Cash and cash equivalents - bank overdrafts from discontinued operations - 8
Cash and cash equivalents from continuing operations 637 354
Interest rate swaps - non-current assets 20 12
Interest rate swaps - non-current liabilities (15) (2)
Borrowings and related swaps - current (155) (265)
Borrowings and related swaps - non-current (1,460) (899)
Lease liabilities - current (9) (10)
Lease liabilities - non-current (31) (40)
Lease liabilities - current - transferred to liabilities classified as held (1) (2)
for sale
Lease liabilities - non-current - transferred to liabilities classified as (9) (7)
held for sale
Less: Lease liabilities relating to discontinued operations - 3
Net debt (1,023) (856)
Increase / (decrease) in cash and cash equivalents 287 (205)
Less: (Increase) / decrease in cash and cash equivalents from discontinued (8) 3
operations
Less: (Increase) / decrease in borrowings (391) 131
Less: Principal element of lease payments 14 14
Less: Principal element of lease payments from discontinued operations - (1)
Increase in net debt resulting from cash flows (98) (58)
New leases, remeasurements and modifications (13) (9)
Less: New leases, remeasurements and modifications from discontinued - 3
operations
Exchange differences on net debt (53) (24)
Other non-cash movements (3) 2
Movement in net debt (167) (86)
Net debt at beginning of year (856) (770)
Net debt at end of year (1,023) (856)
Net debt (1,023) (856)
Add: Pension deficits (21) (29)
Add: Related deferred tax 2 4
Net debt (including post tax pension deficits) (1,042) (881)
Underlying operating profit 465 553
Add back: Depreciation and amortisation excluding amortisation of acquired 182 171
intangibles
Underlying EBITDA 647 724
Net debt (including post tax pension deficits) to underlying EBITDA 1.6 1.2
At 31(st) March 2023 cash and cash equivalents includes £15 million (31(st)
March 2022: £111 million) of restricted amounts relating to cash held in
Russia. The prior year balance relates to restricted amounts in South Africa.
2023 2022
£m £m
Underlying EBITDA 647 724
Depreciation and amortisation (187) (177)
Gains and losses on significant legal proceedings (25) 42
Major impairment and restructuring charges (41) (440)
Profit on disposal of businesses 12 106
Finance costs (110) (101)
Investment income 49 41
Share of losses of associates (1) -
Income tax expense (80) (79)
Profit for the year from continuing operations 264 116
Notes on the Preliminary Accounts
for the year ended 31(st) March 2023
20 Events after the balance sheet date
On 3(rd) May 2023, the group agreed to sell its Diagnostic Services business
to Sullivan Street Partners and Souter Investments.
Financial Calendar
2023
8(th) June
Ex dividend date
9(th) June
Final dividend record date
20(th) July
Annual General Meeting (AGM)
1(st) August
Payment of final dividend subject to the approval of shareholders at the AGM
22(nd) November
Announcement of the results for the six months ending 30(th) September 2023
Cautionary Statement
This announcement contains forward-looking statements that are subject to risk
factors associated with, amongst other things, the economic and business
circumstances occurring from time to time in the countries and sectors in
which Johnson Matthey operates. It is believed that the expectations
reflected in this announcement are reasonable but they may be affected by a
wide range of variables which could cause actual results to differ materially
from those currently anticipated.
Johnson Matthey Plc
Registered Office: 5(th) Floor, 25 Farringdon Street, London EC4A 4AB
Telephone: +44 (0) 20 7269 8000
Fax: +44 (0) 20 7269 8433
Internet address: www.matthey.com
E-mail: jmpr@matthey.com
Registered in England - Number 00033774
LEI code: 2138001AVBSD1HSC6Z10
Registrars
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA
Telephone: +44(0)371 384 2344*
Internet address: www.shareview.co.uk
* Lines are open 8.30am to 5.30pm Monday to Friday excluding public holidays
in England and Wales
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