REG - Johnson Matthey PLC - Johnson Matthey Half Year Results
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RNS Number : 2621I Johnson Matthey PLC 20 November 2025
Half year results for the
six months ended 30(th) September 2025
20(th) November 2025
Strong 1H performance whilst delivering a leaner, more focused and cash
generative JM
· Strong performance with pro forma underlying operating profit¹ up 38% at
constant currency. Reported operating profit down 78% due to profit on
disposals in prior period
· Delivered 12.4% margin in Clean Air, up 200 basis points year-on-year, and on
track to achieve margin guidance of 14 to 15% in 2025/26
· Expect to start commissioning new PGM refinery in second half of 2025/26, and
be operational in calendar year 2027
· Good progress in implementing a cash-focused business model: significant
improvement in first half free cash flow and expect a material step up for the
full year²
· £1.8 billion Catalyst Technologies sale on track to complete by first half of
calendar year 2026³
· £1.4 billion of net sale proceeds to be returned to shareholders: £1.15
billion via special dividend and £250 million via share buyback programme
· Outlook unchanged⁴(,)⁵: expect to deliver growth in full year underlying
operating profit at the higher end of a mid single digit percentage range, at
constant PGM prices and currency
Underlying results Reported results (continuing)
(continuing)⁶(,)⁷
Half year ended % % change, Half year ended %
30(th) September
change
pro forma¹, constant FX rates
30(th) September
change
2025 2024⁸ 2025 2024⁸
Revenue £m 5,353 5,309 +1
Sales excl. precious metals⁹ £m 1,279 1,402 -9 -4
Operating profit £m 142 106 +34 +38 117 527 -78
Profit before tax £m 110 83 +33 86 506 -83
Profit after tax £m 86 66 +30 (16) 448 -104
Basic earnings per share¹⁰ pence 51.2 36.6 +40 (9.5) 247 -104
Interim dividend per share pence 22.0 22.0 -
Free cash flow £m 4 (165)
Cash from operating activities £m 188 (44)
Net debt £m 971 799
Liam Condon, Chief Executive Officer, commented:
Following the agreement to sell Catalyst Technologies, we are transforming
Johnson Matthey into a more highly focused, lean and cash generative business.
Our focus on increased efficiency has driven a strong first half performance
with significant growth in pro forma underlying operating profit¹. We are
also making good progress in implementing our cash-focused business model,
with the benefits starting to come through and a material step up in free cash
flow expected for the full year². The carve out of Catalyst Technologies is
progressing well and we remain on track to complete the transaction by the
first half of calendar year 2026.
For the full year, we expect to deliver growth in underlying operating profit
at the higher end of a mid single digit percentage range⁵(,)¹¹. Looking
ahead, with momentum building in efficiency and cash generation, we are on
track to achieve our medium-term targets and deliver materially enhanced
shareholder returns.
Unchanged group outlook for the year ending 31(st) March 2026⁴
For 2025/26, we expect to deliver underlying operating profit growth at the
higher end of a mid single digit percentage range, despite the challenging
macroeconomic environment. This is on a
pro forma basis, excluding Catalyst Technologies and Value Businesses, and at
constant precious metal prices and constant currency.⁵ Overall performance
will continue to be weighted towards the second half. However, second half
performance will be lower year-on-year driven by PGM Services, reflecting
lower metal recoveries and refining volumes, as expected.
In Clean Air we expect modest growth in operating profit, with a margin of 14
to 15%. This is based on external data which suggest a 5% decline in global
light duty vehicle production for 2025/26. Operating profit growth and margin
expansion will be driven by our ongoing operational excellence and
transformation benefits. In PGM Services, we expect lower operating profit
largely reflecting reduced metal recoveries. In Hydrogen Technologies, we
continue to expect to achieve operating profit breakeven by the end of
2025/26.¹¹
If PGM (platinum group metal) prices remain at their current level¹² for the
remainder of 2025/26, we expect a c.£20 million benefit to full year
operating profit compared with the prior year.¹³
At current foreign exchange rates¹⁴, translational foreign exchange
movements for the year ending 31(st) March 2026 are expected to have a limited
effect on underlying operating profit.
Over the medium-term to 2027/28, we continue to expect at least mid single
digit CAGR in
pro forma operating profit.⁵
Dividend
The board has approved an interim dividend of 22.0 pence per share, maintained
at the same level as the prior year (1H 2024/25: 22.0 pence per share). The
interim dividend will be paid on
3(rd) February 2026, with an ex-dividend date of 27(th) November 2025, to
shareholders on the register at the close of business on 28(th) November 2025.
Board and Group Leadership Team changes
On 17(th) July 2025, we announced the appointment of Andrew Cosslett as
Non-Executive Chair of the Board. He is also a member and Chair of the
Nomination Committee and member of the Societal Value Committee. Andrew is an
experienced Chair with a strong track record in leading significant
transformational and cultural change, to help deliver long-term shareholder
value. He is currently Chair of ITV plc and has held a number of senior
executive and non-executive roles across a range of sectors. Andrew succeeds
Patrick Thomas who stepped down from the Board at the end of the 2025 Annual
General Meeting in July.
As JM transitions into a more highly focused and lean business, we have
further streamlined our Group Leadership Team from nine to six people. These
changes, which will support the focused implementation of JM's strategy, are
effective from 1(st) January 2026.
Alastair Judge, currently Head of Strategy and Operations, has been appointed
Chief Financial Officer and member of the Board. Richard Pike, JM's current
Chief Financial Officer and Chief Executive of PGM Services - having assumed
responsibility of PGM Services in August 2025 - will assume the role of Chief
Operating Officer and will remain on the Board. These organisational changes
will further strengthen our ability to deliver on our strategy, drive cash
generation and increase shareholder returns.
Anish Taneja, Chief Executive of Clean Air and Hydrogen Technologies, has
decided to leave Johnson Matthey to take up an external position, based in
Germany. Anish joined JM in 2022 and has successfully strengthened Clean Air,
leaving the business well positioned to deliver on its strategy.
Enquiries:
Investor Relations
Louise Curran Head of Investor Relations +44 20 7269 8235
Media
Sinead Keller Group External Relations Director +44 20 7269 8218
Harry Cameron Teneo +44 7799 152 148
Notes:
1. Pro forma financials exclude Catalyst Technologies (discontinued) and Value
Businesses (divested) as shown on
page 8.
2. Free cash flow defined as net cash flow from operating activities (excluding
disposal related costs) after net interest paid, net purchases of non-current
assets and investments and the principal elements of lease payments, adjusted
to reflect the classification of Catalyst Technologies as a discontinued
operation. 2024/25: £64 million inflow.
3. Enterprise value of £1.8 billion on a cash and debt-free basis.
4. Outlook unchanged from pre-close trading update published on 9(th) October
2025.
5. Baseline is pro forma underlying operating profit which excludes Catalyst
Technologies and Value Businesses -
£298 million in 2024/25 as shown on page 9.
6. 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 1H 2025/26 results
converted at 1H 2024/25 average rates. In 1H 2025/26, the translational impact
of exchange rates on group sales and underlying operating profit (continuing)
was an adverse impact of £26 million and £2 million respectively.
7. Underlying is before gain on significant legal proceedings, profit on disposal
of businesses, share of profits or losses from non-strategic equity
investments, major impairment and restructuring charges, one-off tax
transactions and, where relevant, related tax effects. For definitions and
reconciliations of other non-GAAP measures, see pages 48 to 53.
8. 1H 2024/25 is restated to reflect the classification of Catalyst Technologies
as a discontinued operation following the agreed sale, and the group's updated
reporting segments where a small business outside of the sale perimeter has
moved from Catalyst Technologies to PGM Services.
9. Revenue excluding cost of precious metals to customers and the precious metal
content of products sold to customers.
10. Based on weighted average number of shares in issue of 168.0 million in 1H
2025/26 (1H 2024/25: 181.7 million). Reduction due to share buyback programme
from 3(rd) July 2024 to 12(th) December 2024.
11. Outlook commentary for Clean Air, PGM Services and Hydrogen Technologies
refers to underlying operating performance and assumes constant precious metal
prices and constant currency.
12. Based on average precious metal prices in November 2025 (month to date).
13. A US$100 per troy ounce change in the average annual platinum, palladium and
rhodium metal prices each have an impact of approximately £1 million, £1
million and £0.5 million respectively on full year 2025/26 underlying
operating profit in PGM Services. This assumes no foreign exchange movement.
14. Based on foreign exchange rates as at 11(th) November 2025 (£:US$ 1.32,
£:€ 1.14, £:INR 116.55, £:RMB 9.38).
Strategic update
Following the agreed sale of Catalyst Technologies to Honeywell International
Inc. (Honeywell), we are re-shaping JM into a more highly focused, lean and
cash generative business. Through leveraging our leading market positions in
Clean Air and PGM Services, and driving efficiencies across the group, we
expect to deliver a step change in cash generation and materially enhanced
shareholder returns.
Driving a step change in cash generation
We are implementing a cash-focused business model, incorporating ongoing
actions across three key areas: overhead reduction, materially lower capex and
improved working capital management. These priorities are reflected in our
executive remuneration schemes, with 37.5% of the annual bonus now linked to
free cash flow, 37.5% based on underlying profit before tax and the remaining
25% based on strategic targets.
As we drive efficiencies, in the first half we streamlined our support
functions including Finance, IT, HR and Procurement, and reduced our corporate
headcount by around 10%. Construction of our new PGM refinery is progressing
and, when this is complete, we expect group capex to reduce materially to
c.£120 million per annum by 2027/28, below depreciation and amortisation. We
have identified opportunities to reduce total working capital by c.£250
million by 2027/28, with progress in the period including improving supplier
payment terms and optimising the frequency of payment runs. Our focus on
reducing overheads and capex, and improved working capital management will
enable us to generate annualised sustainable free cash flow of at least £250
million by 2027/28.
Committed to materially enhanced shareholder returns
We have a disciplined capital allocation policy which will deliver materially
enhanced shareholder returns, whilst maintaining a strong balance sheet
following completion of the Catalyst Technologies disposal. We are targeting
net debt to EBITDA of 1.0 to 1.5 times. Our priorities for use of capital are:
1. Organic investment - focused on maintenance and operational improvement after
the completion of our new PGM refinery
2. Shareholder returns - growing annual cash returns to shareholders from at
least £130 million for 2025/26 (ordinary dividend) to at least £200 million
for 2026/27 and beyond (split between ordinary dividends and share buybacks)
3. Bolt-on acquisitions only considered for highly compelling opportunities in
core areas
Clean Air - a leading global player driving material margin improvement
In Clean Air, we aim to be a lasting partner providing world-leading
technology to support our customers and reduce harmful emissions.
We are focused on maintaining our leading position in diesel, securing a
profitable share in gasoline including hybrids, and driving continued margin
improvement. In the half, we won new gasoline hybrid business with leading
Chinese OEMs. We will also benefit from longer-term growth in our Clean Air
Solutions business by applying our leading technology to emerging emissions
control applications such as hydrogen internal combustion engines, backup
generators for data centres and CO(2) capture. For example, we recently signed
multi-year contracts for emissions control technology for data centre
applications.
In the first half, we delivered an operating margin improvement of 200 basis
points, to 12.4%. We reduced headcount by c.10%, primarily across R&D and
manufacturing. R&D and SG&A spend is on track to reduce by c.20% by
the end of 2025/26. We also made further progress consolidating our
manufacturing footprint, closing an additional production line in India.
Overall, we now have 11 plants and 21 lines (2021/22: 16 plants, 50 lines).
Underpinned by benefits from these initiatives, as well as ongoing operational
and commercial excellence, we are targeting operating margin improvement to 14
to 15% for full year 2025/26. Alongside driving efficiency, we have been
focused on employee engagement, which has continued to increase despite the
extensive transformation that is ongoing across our Clean Air business.
Longer-term, we remain on track to deliver Clean Air sales of more than £2
billion (of which c.90% of the business is already won) and an operating
margin of 16 to 18% in 2027/28. Additionally, we expect Clean Air to generate
at least £2.1 billion of further cash by 2030/31¹, with significant cash
flow beyond.
PGM Services - a world leader in PGMs
PGM Services is the world's largest secondary refiner of PGMs (by volume), the
global liquidity hub for PGMs² and expert in converting PGMs into high value
products for a wide range of industries.
We are investing in a new world-class PGM refinery to replace our aged UK
asset. This investment will support increasing demand for secondary (recycled)
metal, as well as deliver significant efficiency, resilience, safety and
sustainability benefits. We expect to start commissioning the facility in the
second half of fiscal year 2025/26, and be operational in calendar year 2027.
In PGM Products, we continue to expect growth in new, high value PGM
applications for a wide range of industries such as agrochemicals,
pharmaceuticals and defence.
Over the next couple of years, until our new PGM refinery is fully
operational, we expect increased maintenance costs relating to our current
aged refinery, as well as lower metal recoveries. In addition, we will incur
dual-running costs and higher depreciation costs from 2027 onwards as the new
refinery comes online, before returning to growth in 2027/28. In 2027/28, we
expect PGM Services to generate sales of around £450 million, with an
operating margin of around 30%³. Beyond this, underpinned by our new refinery
and growth in PGM Products, we expect PGM Services to deliver at least low
single digit CAGR in underlying operating profit over the medium to long-term.
Hydrogen Technologies - a leader in fuel cell and electrolyser components
Hydrogen Technologies is well-positioned in the green hydrogen market.
Reflecting the market slowdown we have restructured the business to reduce
costs, whilst maintaining long-term growth optionality. We continue to expect
Hydrogen Technologies to reach operating profit breakeven by the end of
2025/26 and be cash flow positive in 2026/27⁴.
Notes:
1. Delivered £2.4 billion of cash cumulatively from 1(st) April 2021 to 31(st)
March 2025. Cash target of at least £4.5 billion from 1(st) April 2021 to
31(st) March 2031, pre-tax and post restructuring costs.
2. Global liquidity hub for PGM sponge (powder).
3. Assumes broadly constant PGM prices.
4. Cash flow defined as underlying operating profit plus depreciation and
amortisation (EBITDA), less capital expenditure and net working capital
movements.
Sale of Catalyst Technologies
As announced on 22(nd) May 2025, we have agreed the sale of Catalyst
Technologies to Honeywell for an enterprise value of £1.8 billion on a cash
and debt-free basis. The carve out of Catalyst Technologies is progressing
well and we have received the vast majority of competition authority
approvals. We continue to expect completion by the first half of calendar year
2026.
Following completion, we intend to return £1.4 billion of net proceeds to
shareholders -
£1.15 billion via a special dividend with a share consolidation, and the
remaining £250 million via an on-market share buyback programme.
What JM will deliver by 2027/28
JM will become a highly streamlined group, delivering a step change in cash
generation and materially enhanced shareholder returns. By 2027/28 we expect:
· At least mid single digit CAGR in pro forma underlying operating profit
(2024/25 baseline¹)
· Annualised sustainable free cash flow of at least £250 million driven by cost
savings, lower capex and improved working capital management
· Cash returns of at least £200 million per annum to shareholders
Milestones overview
As we transition the group to a more highly focused and lean business with
higher cash generation, we are making good progress against our strategic
milestones set out in May 2025. Where appropriate, the milestones have been
updated to exclude Catalyst Technologies.
Financial
· Increase Clean Air underlying operating margin to 16 to 18% by end of 2027/28
· Achieve operating profit breakeven and positive cash flow in Hydrogen
Technologies²
Operational
· Carve out Catalyst Technologies following agreed sale³
· Operate new world-class PGM refinery in calendar year 2027 (previously by end
of 2026/27)
· Improve customer net promoter score to >41 by end of 2025/26⁴
Sustainability
· Improve ICCA process safety event severity rate to 0.60 by end of 2026/27⁵
· Increase employee engagement score to at least 7.2 by end of 2025/26⁶
· Reduce scope 1 and 2 CO₂e emissions by 57% by end of 2026/27⁷
Notes:
1. Baseline is pro forma underlying operating profit which excludes Catalyst
Technologies and Value Businesses - £298 million in 2024/25 as shown on page
9.
2. Operating profit breakeven by the end of 2025/26 and cash flow positive in
2026/27. Cash flow defined as underlying operating profit plus depreciation
and amortisation (EBITDA), less capital expenditure and net working capital
movements.
3. Completion expected by the first half of calendar year 2026.
4. Net promoter score is a market research survey metric to measure customer
satisfaction and loyalty, calculated from our annual customer survey data.
2024/25 baseline: 41.
5. ICCA - International Council of Chemical Associations. 2024/25 baseline: 0.78.
6. March 2025 baseline: 7.1.
7. Metric tonnes of greenhouse gases. 2019/20 baseline: 249,465 tonnes CO(2)
equivalents.
Performance summary for the six months ended 30(th) September 2025¹
Pro forma underlying operating profit² - excluding the impact of PGM prices -
grew 29% in the period. Our performance was supported by self-help actions
including cost efficiencies across the group. Average PGM prices increased in
the half, with a benefit to underlying operating profit of £10 million.
Including the impact of PGM prices, pro forma underlying operating profit²
grew 38%.
Clean Air underlying operating profit grew 11% and margin expanded 200 basis
points to 12.4%, driven by efficiency benefits. These included reduced R&D
and SG&A overheads in the business, as well as benefits from operational
excellence and footprint consolidation. PGM Services delivered a strong first
half with underlying operating profit up 33%, driven by higher average PGM
prices, strong performance in our PGM trading business and efficiencies.
Hydrogen Technologies delivered a smaller operating loss of £18 million
reflecting benefits from cost control actions taken in 2024/25 as we
restructured the business and reduced headcount.
On a reported basis, operating profit decreased to £117 million (1H 2024/25:
£527 million³). The decline largely reflected a £484 million profit on
disposal recognised in the prior year, principally related to Medical Device
Components. We incurred £33 million of major impairment and restructuring
charges, comprising restructuring charges of £26 million and an impairment
charge of £7 million.
Net debt (continuing) increased to £971 million as at 30(th) September 2025
compared to
£810 million as at 31(st) March 2025. Net debt to EBITDA was 2.0 times
(31(st) March 2025:
1.8 times). Free cash flow⁴ was a £4 million inflow, a significant
improvement from a £165 million outflow in the first of half of 2024/25. This
was driven by higher profit and improved working capital management in Clean
Air and PGM Services.
Notes:
1. 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 1H 2025/26 results
converted at 1H 2024/25 average rates. In 1H 2025/26, the translational impact
of exchange rates on group sales and underlying operating profit (continuing)
was an adverse impact of £26 million and £2 million respectively.
2. Pro forma underlying operating profit excludes Catalyst Technologies
(discontinued) and Value Businesses (divested) as shown on page 8.
3. 1H 2024/25 is restated to reflect the classification of Catalyst Technologies
as a discontinued operation following the agreed sale, and the group's updated
reporting segments where a small business outside of the sale perimeter has
moved from Catalyst Technologies to PGM Services.
4. Free cash flow defined as net cash flow from operating activities (excluding
disposal related costs) after net interest paid, net purchases of non-current
assets and investments and the principal elements of lease payments, adjusted
to reflect the classification of Catalyst Technologies as a discontinued
operation.
Summary of underlying operating results from continuing operations
Unless otherwise stated, commentary refers to performance at constant FX
rates¹. Percentage changes in the tables are calculated on rounded numbers.
Sales Half year ended % change % change,
30(th) September
constant FX rates
(£ million)
2025 2024²
Clean Air 1,061 1,165 -9 -7
PGM Services 226 215 +5 +7
Hydrogen Technologies 23 20 +15 +15
Eliminations² (31) (34) n/a n/a
Sales (pro forma) 1,279 1,366 -6 -4
Value Businesses (divested)³ - 36 n/a n/a
Sales (continuing) 1,279 1,402 -9 -7
Catalyst Technologies (discontinued) 272 328 -17 -16
Eliminations (discontinued) (6) (8) n/a n/a
Total sales 1,545 1,722 -10 -9
Underlying operating profit Half year ended % change % change,
(£ million)
30(th) September
constant FX rates
2025 2024²
Clean Air 132 121 +9 +11
PGM Services 66 51 +29 +33
Hydrogen Technologies (18) (26) n/a n/a
Corporate (38) (42) n/a n/a
Underlying operating profit (pro forma) 142 104 +37 +38
Value Businesses (divested)³ - 2 n/a n/a
Underlying operating profit (continuing) 142 106 +34 +36
Catalyst Technologies (discontinued) 20 50 -60 -60
Total underlying operating profit 162 156 +4 +5
Reconciliation of underlying operating profit Half year ended
to operating profit
30(th) September
(£ million)
2025 2024²
Underlying operating profit (continuing) 142 106
Gain on significant legal proceedings⁴ 8 -
Major impairment and restructuring charges⁴ (33) (63)
Profit on disposal of businesses⁴ - 484
Operating profit 117 527
Notes:
1. Growth at constant rates excludes the translation impact of foreign exchange
movements, with 1H 2025/26 results converted at 1H 2024/25 average rates. In
1H 2025/26, the translational impact of exchange rates on group sales and
underlying operating profit (continuing) was an adverse impact of £26 million
and £2 million respectively.
2. 1H 2024/25 is restated to reflect the classification of Catalyst Technologies
as a discontinued operation following the agreed sale, and the group's updated
reporting segments where a small business outside of the sale perimeter has
moved from Catalyst Technologies to PGM Services.
3. Includes Battery Materials, Battery Systems and Medical Device Components
which are all now divested.
4. For further detail on these items please see page 16.
2024/25 underlying operating results on a pro forma basis
Subject to completion of the Catalyst Technologies sale, below we have
provided 2024/25 sales and underlying operating profit excluding Catalyst
Technologies (discontinued) and Value Businesses (divested).
Sales Year ended 31(st) March 2025
(£ million)
1H 2H FY
Clean Air 1,165 1,154 2,319
PGM Services¹ 215 266 481
Hydrogen Technologies 20 40 60
Eliminations¹ (34) (32) (66)
Sales (pro forma) 1,366 1,428 2,794
Catalyst Technologies (discontinued)¹(,)² 328 324 652
Eliminations (discontinued)³ (8) (5) (13)
Value Businesses (divested)⁴ 36 1 37
Total sales 1,722 1,748 3,470
Underlying operating profit Year ended 31(st) March 2025
(£ million)
1H 2H FY
Clean Air 121 152 273
PGM Services¹ 51 100 151
Hydrogen Technologies (26) (13) (39)
Corporate (42) (45) (87)
Underlying operating profit (pro forma) 104 194 298
Catalyst Technologies (discontinued)¹(,)² 50 40 90
Value Businesses (divested)⁴ 2 (1) 1
Total underlying operating profit 156 233 389
Notes:
1. Restated to reflect the group's updated reporting segments following the
agreed sale of Catalyst Technologies, where a small business outside of the
sale perimeter has moved from Catalyst Technologies to PGM Services.
2. Catalyst Technologies is classified as a discontinued operation for the
financial year 2025/26.
3. Relates to Catalyst Technologies.
4. Value Businesses includes Battery Materials, Battery Systems and Medical
Device Components which are all now divested.
Business reviews
Clean Air
Good profit and margin growth despite a challenging market
· Sales were down 7%. This mainly reflected a decline in global vehicle
production driven by European light duty diesel and North American heavy duty
diesel. We also experienced market share losses in light duty gasoline,
largely due to historic platform losses
· Underlying operating profit grew 11% and margin expanded 200 basis points to
12.4%, driven by efficiency benefits
Half year ended % change % change,
30(th) September
constant FX rates
2025 2024
£ million £ million
Sales
Light duty diesel 486 530 -8 -7
Light duty gasoline 202 244 -17 -15
Heavy duty diesel 373 391 -5 -2
Total sales 1,061 1,165 -9 -7
Underlying operating profit 132 121 +9 +11
Underlying operating profit margin 12.4% 10.4%
EBITDA margin 15.6% 13.6%
Reported operating profit 119 101
Clean Air provides catalysts for emission control after-treatment systems used
in light and heavy duty vehicles powered by internal combustion engines.
Market commentary
In the half, global vehicle production (ICE) declined in both light duty and
heavy duty. In light duty, there were modest declines across all key regions.
European and North American production was impacted by tariff uncertainty, and
there was further battery electric vehicle penetration in Europe and China.
In heavy duty, ICE vehicle production grew well in Europe, whilst Asia was
flat and North America saw a material decline. In Europe growth reflected
cyclical recovery, whilst in Asia, growth in India was offset by a decline in
China. In North America, both Class 8 and
Class 4 to 7 truck production declined driven by the effect of tariffs and
uncertainty around the timing and final requirements of EPA27 (Environmental
Protection Agency) emissions legislation. Recovery of the Class 8 cycle is
expected to drive higher production in 2026.
Performance commentary
Sales declined 7%. This mainly reflected a decline in global vehicle
production driven by European light duty diesel and North American heavy duty
diesel.
Sales
Light duty diesel
In light duty diesel, sales declined 7%, underperforming a global market which
saw a modest decline. In Europe, whilst sales decreased, we outperformed the
market, reflecting strong performance from our largest customer. North
American sales were down materially, underperforming a slightly declining
market mainly due to a weaker mix. However, we saw good sales growth in Asia,
due to benefits from commercial excellence as well as strong customer
performance in China.
Light duty gasoline
Light duty gasoline sales were down 15%, underperforming a global market which
declined slightly. By region, we saw declines in Europe and Asia, whilst sales
in the Americas were broadly flat.
In Europe, we were mainly impacted by market share losses due to platform
losses several years ago. In Asia, our sales decline reflected weaker platform
mix in China, alongside the underperformance and phase out of some customer
platforms across the rest of Asia. In the Americas, sales were broadly flat
and in line with the market.
Heavy duty diesel
In heavy duty diesel, sales declined 2%, broadly in line with the global
market. We experienced a decline in sales in North America, which was partly
offset by good growth in Europe and Asia.
In North America, sales performance mainly reflected the decline in market
production. We also experienced some customer underperformance and a weaker
mix. In Europe, we outperformed a growing market mainly due to market share
gains. Growth in Asia was largely driven by India, due to improved mix and the
ramp up of an off-road platform.
Underlying operating profit
Underlying operating profit grew 11% and operating margin expanded 200 basis
points to 12.4%, driven by efficiency benefits. These included reduced R&D
and SG&A overheads in the business, as well as benefits from operational
excellence and footprint consolidation.
PGM Services
Good sales and profit growth supported by higher PGM prices
· Sales were up 7% reflecting good growth in our refining and trading businesses
as we benefitted from higher PGM prices and increased trading activity
· Underlying operating profit grew 33%, reflecting a £10 million benefit from
higher average PGM prices, strong performance in our PGM trading business and
efficiency benefits
Half year ended % change % change,
30(th) September
constant FX rates
2025 2024¹
£ million £ million
Sales
PGM Services 226 215 +5 +7
Underlying operating profit 66 51 +29 +33
Underlying operating profit margin 29.2% 23.7%
EBITDA margin 35.4% 29.8%
Reported operating profit 63 26
PGM Services is the world's largest recycler of platinum group metals (PGMs).
This business is enabling the energy transition through developing new PGM
applications and providing circular solutions. PGM Services provides a
strategic service to the group, supporting our other businesses with security
of metal supply and the manufacture of value-add PGM products.
Performance commentary
Sales
In the half, sales were up 7% reflecting good growth in our refining and
trading businesses as we benefitted from higher PGM prices and increased
trading activity. Average platinum, palladium and rhodium prices increased
27%, 11% and 30% respectively compared to the first half of 2024/25.
In our refining business sales grew well driven by higher PGM prices, although
volumes were slightly down year-on-year. We saw a decline in primary volumes,
which was partly offset by increased secondary (recycled) volumes due to
higher industrial feeds. As we continued our asset renewal programme, we saw a
small benefit from higher metal recoveries in the first half, although we
continue to expect lower metal recoveries for the full year.
In our products business, sales slightly declined year-on-year, mainly driven
by lower demand from pharmaceutical customers.
Underlying operating profit
Underlying operating profit grew 33% reflecting a £10 million benefit from
higher average PGM prices in our refining business, strong performance in our
trading business, and continued efficiency benefits including operational
enhancements and streamlining processes.
Notes:
1. 1H 2024/25 is restated to reflect the group's updated reporting segments
following the agreed sale of Catalyst Technologies, where a small business
outside of the sale perimeter has moved from Catalyst Technologies to PGM
Services.
Hydrogen Technologies
Smaller operating loss benefitting from cost savings
· Sales grew 15% driven by revenue recognised due to changes to volume
commitments from customers in fuel cells, and higher electrolyser volumes
· Smaller operating loss of £18 million, largely reflecting benefits from cost
control actions taken in 2024/25. On track to achieve breakeven by the end of
2025/26
Half year ended % change % change,
30(th) September
constant FX rates
2025 2024
£ million £ million
Sales
Hydrogen Technologies 23 20 +15 +15
Underlying operating loss (18) (26) n/a n/a
Underlying operating loss margin n/a n/a
Reported operating loss (18) (26)
In Hydrogen Technologies, we provide performance-defining components across
the value chain for fuel cells and electrolysers, including catalyst coated
membranes (CCMs).
Performance commentary
Sales
Sales were up 15%, driven by both fuel cells and electrolysers. In fuel cells,
sales benefitted from revenue recognised due to changes to volume commitments
from customers. Electrolysers sales grew strongly, albeit from a small base,
driven by increased demand from our strategic partners.
In the second half we expect to recognise further revenue due to changes to
volume commitments from customers, in comparison with the first half.
Underlying operating loss
Underlying operating loss was £18 million, a material improvement compared to
a
£26 million loss in the prior period. This largely reflected benefits from
cost control actions taken in 2024/25 as we restructured the business and
reduced headcount.
We continue to expect Hydrogen Technologies to reach operating profit
breakeven by the end of 2025/26 and be cash flow positive in 2026/27¹.
Corporate
Corporate costs were £38 million, a decrease of £4 million from the prior
period, largely reflecting lower IT and R&D costs.
Notes:
1. Cash flow defined as underlying operating profit plus depreciation and
amortisation (EBITDA), less capital expenditure and net working capital
movements.
Discontinued operations: Catalyst Technologies
Performance impacted by weaker demand in key end markets
· Sales declined 16%, largely reflecting a weak market with reduced demand for
first fill catalysts, and the timing of licence income against a strong prior
period
· Underlying operating profit down 60% as a result of lower sales and weaker mix
· Sale to Honeywell expected to complete by the first half of calendar year 2026
Half year ended % change % change,
30(th) September
constant FX rates
2025 2024¹
£ million £ million
Sales
Catalysts 233 268 -13 -12
Licensing 39 60 -35 -35
Total sales 272 328 -17 -16
Underlying operating profit 20 50 -60 -60
Underlying operating profit margin 7.4% 15.2%
EBITDA margin 9.2% 19.5%
Reported operating profit 2 48
Catalyst Technologies targets high growth, high return opportunities in fuels
and chemical value chains. We have leading positions in syngas - methanol,
ammonia, hydrogen and formaldehyde - and a strong sustainable technologies
portfolio. Our revenue streams are licensing process technology and supplying
catalysts.
Performance commentary
Sales
Sales declined 16% reflecting lower sales in both Catalysts - which represents
the majority of sales - and Licensing.
Catalysts: sales driven by lower first fills
Catalysts sales were down 12%, largely driven by first fills. First fill
volumes declined materially against a strong prior period in which several new
plants came onstream in China, including one of the world's largest methanol
plants.
In refills, sales were down slightly. We saw lower formaldehyde sales due to
weak end markets, particularly in China, alongside lower methanol sales and a
weaker performance in additives. This was partly offset by higher sales
relating to synthetic natural gas.
Licensing: performance reflects timing of licence wins in core technologies
Licensing sales - which are lumpy in nature - declined 35% year-on-year,
largely reflecting lower sales from our existing core technology portfolio in
China, against a strong prior period. In sustainable technologies, whilst we
saw lower sales from low carbon hydrogen projects, this was partly offset by
increased engineering income from sustainable methanol projects where we have
a good pipeline.
Notes:
1. 1H 2024/25 is restated to reflect the group's updated reporting segments
following the agreed sale of Catalyst Technologies, where a small business
outside of the sale perimeter has moved from Catalyst Technologies to PGM
Services.
Demand for sustainable technologies remains strong, and we continue to invest
in R&D to support the development of the business. We won an additional
two large scale projects in our sustainable technologies portfolio in the
half, highlighting the good medium-term growth opportunity in Catalyst
Technologies.
· DG Fuels' third sustainable aviation fuel facility - located in Minnesota, US
· USA BioEnergy's Bon Weir sustainable aviation fuel plant in Texas, US
Underlying operating profit
Underlying operating profit was down 60% as a result of lower sales and weaker
mix reflecting the decline in Licensing sales which are higher margin.
Financial review - continuing operations
Research and development (R&D)
R&D spend (excluding Catalyst Technologies) was £69 million in the half,
representing c.5% of sales excluding precious metals. This was down from £82
million in the prior period, largely driven by reduced R&D spend in Clean
Air and Hydrogen Technologies.
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 85% of the non-sterling denominated underlying operating profit in
the half year ended 30(th) September 2025, were:
Share of 1H 2025/26 Average exchange rate % change
non-sterling denominated
underlying operating profit Half year ended
30(th) September
2025 2024
US dollar 13% 1.34 1.28 +5
Euro 54% 1.17 1.18 -1
Indian rupee 8% 116.11 107.20 +8
Chinese renminbi 10% 9.66 9.23 +5
For the half, the impact of exchange rates decreased sales by £26 million and
underlying operating profit by £2 million.
If exchange rates as at 11(th) November 2025 (£:US$ 1.32, £:€ 1.14, £:INR
116.55,
£:RMB 9.38) are maintained throughout the remainder of the year ending 31(st)
March 2026, foreign currency translation will have a limited effect on
underlying operating profit. A one cent change in the average US dollar rate,
a one cent change in the average Euro rate, a one rupee change in the average
Indian rupee rate, and a ten fen change in the average Chinese renminbi rate
would each impact operating profit by approximately £0.5 million, £1.1
million, £0.2 million and £0.1 million, respectively.
Items outside underlying operating profit
Non-underlying income / (charge) Half year ended
30(th) September
2025 2024
£ million £ million
Gain on significant legal proceedings 8 -
Major impairment and restructuring charges (33) (63)
Profit on disposal of businesses - 484
Total (25) 421
During the period, the group settled an insurance litigation and received
proceeds of
£8 million.
There was a charge of £33 million relating to major impairment and
restructuring costs, comprising £26 million of restructuring costs and an
impairment charge of £7 million. The impairment charge relates to the
consolidation of our manufacturing footprint in Clean Air. The restructuring
costs related to rightsizing the group and Clean Air's ongoing footprint
consolidation, as well as a one-off termination cost for a US pension scheme.
Finance charges
Net finance charges in the period amounted to £32 million, up from £23
million in the prior period. The increase of £9 million largely reflects the
absence of non-recurring benefits recognised in the prior period.
Taxation
The tax charge on underlying profit before tax for the half year ended 30(th)
September 2025 was £24 million, an effective underlying tax rate of 21.8%,
compared with 20.5% in the first half of 2024/25.
The effective tax rate on reported profit for the half year ended 30(th)
September 2025 was 119%. This represents a tax charge of £102 million,
compared with £58 million in the first half of 2024/25. The increase largely
reflects the impact of an £84 million deferred tax asset de-recognition as a
result of the agreed divestment of Catalyst Technologies.
We expect the effective tax rate on underlying profit for the year ending
31(st) March 2026 to be around 22%.
Post-employment benefits
IFRS - accounting basis
At 30(th) September 2025, the group's net post-employment defined benefit
position, was a surplus of £201 million. The cost of providing
post-employment defined benefits in the period was £15 million, up from £12
million in the prior period, driven by a one-off termination cost in the US.
Capital expenditure
Capital expenditure (excluding Catalyst Technologies) was £94 million¹ in
the half, 1.3 times depreciation and amortisation (1H 2024/25: £134 million,
1.7 times depreciation and amortisation). A key project in the period was
investment in our new world-class PGM refinery.
Balance sheet
Net debt as at 30(th) September 2025 was £971 million, an increase from £810
million at 31(st) March 2025 and £799 million at 30(th) September 2024. The
group's net debt to EBITDA was 2.0 times (31(st) March 2025: 1.8 times, 30(th)
September 2024: 1.7 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. Precious metal leases
amounted to £279 million as at
30(th) September 2025 (31(st) March 2025: £202 million, 30(th) September
2024: £197 million).
Notes:
1. Cash outflow of £129 million in the period relating to capital expenditure
(continuing basis). Difference reflects movements in capital accruals.
Free cash flow and working capital
Free cash flow¹ was a £4 million inflow compared to a £165 million outflow
in the first half of 2024/25. This significant improvement year-on-year was
driven by higher operating profit and improved working capital management in
Clean Air and PGM Services.
Excluding precious metal, average working capital days (excluding Catalyst
Technologies) to 30(th) September 2025 increased to 59 days compared to 51
days to 30(th) September 2024.
Going concern
The group maintains a healthy balance sheet with around £1.5 billion of
available cash and undrawn committed facilities. Cash generation was positive
during the period with a free cash inflow¹ of £4 million. Net debt at 30(th)
September 2025 was £971 million. Net debt to underlying EBITDA was 2.0 times.
For assessing going concern, the base case scenarios were stress tested to a
severe but plausible downside case which assumes lower demand across our
markets to account for further disruptions and recession.
Additionally, the group considered scenarios including the impact from metal
price volatility, delays in capital projects and delivery of cost savings,
slow down of operations in China and an additional impact of US tariffs. We
have also considered the impact of a refinery shutdown and other manufacturing
plant shutdowns for a prolonged period. In all scenarios, the group has
sufficient headroom against committed facilities and key financial covenants
are not in breach during the going concern period.
Having assessed various scenario forecasts, the directors therefore reasonably
expect no significant uncertainties about the group's ability to operate for
at least fifteen months from the approval date of these half year accounts,
supporting a going concern basis.
Notes:
1. Free cash flow defined as net cash flow from operating activities (excluding
disposal related costs) after net interest paid, net purchases of non-current
assets and investments and the principal elements of lease payments, adjusted
to reflect the classification of Catalyst Technologies as a discontinued
operation.
Risks and uncertainties
JM's principal risk landscape continues to be reviewed and updated to reflect
our evolving strategy and the challenges that come from operating within the
current global environment and economic climate. JM is committed to improving
its risk management approach and insights used to support various business
decisions. The group's principal risks are listed below and remain largely as
disclosed in our 2025 Annual Report.
1. Cyber-attack/IT failure - Risks to our information technology and
operational technology, including failure to adapt to evolving business needs,
system disruptions or major cyber security incidents. These issues could
impact business continuity, data integrity and compliance.
2. Capital expenditure - JM's growth depends on the effective allocation and
execution of capital expenditure. Delays, cost overruns, poor investment
decisions or ineffective management could undermine expected value, leading to
inefficient resource use, reduced competitiveness and failure to meet market
and customer needs.
3. Operational assets - Failure of one or more critical operational assets
could disrupt JM's supply chains, performance and reputation. This risk
includes ageing infrastructure as well as the growing impact of climate
change, such as extreme weather events and natural disasters.
4. Security of metal - JM faces security risks due to the high value of its
products, site locations and supply chain dependencies. These risks include
internal theft, organised crime and challenges in metal reconciliation, which
vary across different parts of the business.
5. Supply chain resilience - JM relies on a global network of suppliers for
key materials and services, some of which are highly specialised with limited
alternative sources. Emerging industries like hydrogen and sustainable
aviation fuel have immature supply chains for raw materials, making them
particularly vulnerable to disruptions.
6. Geopolitical/Economic - JM's global footprint exposes the business to
potential disruptions from geopolitical and macroeconomic events, including
conflicts, trade disputes, sanctions, pandemics, financial crises and economic
instability in key markets.
7. Innovation - A failure to develop competitive solutions, such as products,
licensing and technical services, that align with evolving customer needs and
market trends. This includes challenges in identifying customer expectations,
translating them into effective R&D and scaling new technologies for
industrial use.
8. Talent, culture and engagement - A low-performing organisation
characterised by an insufficiently engaged and inclusive workforce, or a
misalignment of skills and talent, would impact our ability to execute our
strategy successfully.
9. Market factors - JM may not accurately predict changes in customer demand,
regulation, or market trends, particularly as industries move away from fossil
fuels. There is also a risk of missing new opportunities or responding to
change too slowly or quickly.
10. EHS - A major work-related EHS (Environmental, Health and Safety)
incident, such as a fire, explosion or toxic gas release, could result from
process safety failures or regulatory non-compliance, threatening JM's
operations, product portfolios and reputation.
11. Implementation of cash-focused business model - JM is pivoting towards a
cash-focused business model, underpinned by rigorous cost control, improved
working capital management, and disciplined capital allocation. Failure to
successfully execute these programmes could impact the delivery of higher cash
generation and enhanced shareholder returns.
Responsibility statement of the Directors in respect of the half yearly report
The half yearly report is the responsibility of the directors. Each of the
directors as at the date of this responsibility statement, whose names and
functions are set out below, confirms that to the best of their knowledge:
· the condensed consolidated accounts have been prepared in accordance with UK
adopted International Accounting Standard (IAS) 34 - 'Interim Financial
Reporting'; and
· the interim management report included in the Half-Yearly Report includes a
fair review of the information required by:
a) DTR 4.2.7R of the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact on the
condensed consolidated accounts; and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
b) DTR 4.2.8R of the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have materially
affected the financial position or performance of the company during that
period; and any changes in the related party transactions described in the
last annual report that could do so.
The names and functions of the directors of Johnson Matthey Plc are as
follows:
Andrew Cosslett Chair of the Board and of the Nomination Committee
Liam Condon Chief Executive Officer
Richard Pike Chief Financial Officer and Chief Executive of PGM Services
Barbara Jeremiah Senior Independent Non-Executive Director and Chair of the Investment
Committee
Rita Forst Non-Executive Director and Chair of the Societal Value Committee
Xiaozhi Liu Non-Executive Director
Sinead Lynch Non-Executive Director
John O'Higgins Non-Executive Director and Chair of the Remuneration Committee
Doug Webb Non-Executive Director and Chair of the Audit Committee
The responsibility statement was approved by the Board of Directors on 19(th)
November 2025 and is signed on its behalf by:
Andrew Cosslett
Chair
Independent review report to Johnson Matthey Plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Johnson Matthey Plc's condensed consolidated interim
financial statements (the "interim financial statements") in the half year
results of Johnson Matthey Plc for the 6 month period ended 30(th) September
2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed Consolidated Statement of Financial Position as at
30(th) September 2025;
· the Condensed Consolidated Income Statement and Condensed
Consolidated Statement of Total Comprehensive Income for the period then
ended;
· the Condensed Consolidated Statement of Cash Flows for the period
then ended;
· the Condensed Consolidated Statement of Changes in Equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the half year results of Johnson
Matthey Plc have been prepared in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the half year results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The half year results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the half year results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the half year results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the half year results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
20(th) November 2025
Condensed Consolidated Income Statement
for the six months ended 30(th) September 2025
Six months ended
30.9.25 30.9.24
Notes £ million £ million*
Revenue 2, 3 5,353 5,309
Cost of sales (5,041) (5,010)
Gross profit 312 299
Distribution costs (24) (28)
Administrative expenses (146) (165)
Profit on disposal of businesses 4 - 484
Gain on significant legal proceedings 4 8 -
Major impairment and restructuring charges 4 (33) (63)
Operating profit 4 117 527
Finance costs (82) (73)
Investment income 50 50
Share of profits of associates 1 2
Profit before tax from continuing operations 86 506
Tax expense 5 (102) (58)
(Loss) / profit for the period from continuing operations (16) 448
(Loss) / profit after tax from discontinued operations 11 (2) 36
(Loss) / profit for the period (18) 484
pence pence
(Loss) / earnings per ordinary share
Basic 6 (10.7) 266.8
Diluted 6 (10.7) 266.4
pence pence
(Loss) / earnings per ordinary share from continuing operations
Basic 6 (9.5) 247.0
Diluted 6 (9.5) 246.6
* Restated to reflect classification of the Catalyst Technologies segment as
discontinued operations (see note 11).
Condensed Consolidated Statement of Total Comprehensive Income
for the six months ended 30(th) September 2025
Six months ended
30.9.25 30.9.24
Notes £ million £ million*
(Loss) / profit for the period (18) 484
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 12 (11) 21
Fair value losses on equity investments (2) (1)
Tax on items that will not be reclassified to the income statement - (4)
Total items that will not be reclassified to the income statement (13) 16
Items that may be reclassified to the income statement:
Exchange differences on translation of foreign operations (23) (108)
Exchange differences on translation of discontinued operations 11 (8) (16)
Amounts charged to hedging reserve (33) (16)
Fair value (losses) / gains on net investment hedges (10) 22
Tax on items that may be reclassified to the income statement (1) 4
Total items that may be reclassified to the income statement (in subsequent (75) (114)
years)
Other comprehensive expense for the period (88) (98)
Total comprehensive (expense) / income for the period (106) 386
Total comprehensive (expense) / income for the period arises from:
Continuing operations (95) 363
Discontinued operations 11 (11) 23
(106) 386
* Restated to reflect classification of the Catalyst Technologies segment as
discontinued operations (see note 11).
Condensed Consolidated Statement of Financial Position
as at 30(th) September 2025
30.9.25 31.3.25
Notes £ million £ million
Assets
Non-current assets
Property, plant and equipment 8 1,162 1,411
Right-of-use assets 34 53
Goodwill 87 347
Other intangible assets 9 228 288
Investments in associates 10 70 71
Investments at fair value through other comprehensive income 35 38
Other receivables 101 98
Derivative financial instruments - 4
Deferred tax assets 56 135
Post-employment benefit net assets 12 228 238
Total non-current assets 2,001 2,683
Current assets
Inventories 857 1,011
Taxation recoverable 42 15
Trade and other receivables 1,353 1,532
Financial assets held at amortised cost 11 -
Cash and cash equivalents 17 536 898
Derivative financial instruments 28 55
Assets classified as held for sale 11 1,004 -
Total current assets 3,831 3,511
Total assets 5,832 6,194
Liabilities
Current liabilities
Trade and other payables (1,824) (1,984)
Lease liabilities 17 (3) (6)
Taxation liabilities (60) (45)
Cash and cash equivalents ─ bank overdrafts 17 (11) (24)
Borrowings 17 (134) (333)
Derivative financial instruments (19) (14)
Provisions (60) (69)
Liabilities classified as held for sale 11 (209) -
Total current liabilities (2,320) (2,475)
Non-current liabilities
Borrowings 17 (1,318) (1,301)
Lease liabilities 17 (26) (40)
Deferred tax liabilities (3) (4)
Employee benefit obligations 12 (29) (38)
Derivative financial instruments 17 (15) (9)
Provisions (12) (26)
Trade and other payables (8) (6)
Total non-current liabilities (1,411) (1,424)
Total liabilities (3,731) (3,899)
Net assets 2,101 2,295
Equity
Share capital 197 197
Share premium 148 148
Treasury shares (6) (10)
Other reserves (128) (51)
Retained earnings 1,890 2,011
Total equity 2,101 2,295
Condensed Consolidated Statement of Cash Flows
for the six months ended 30(th) September 2025
Six months ended
30.9.25 30.9.24
Notes £ million £ million*
Cash flows from operating activities
Profit before tax from continuing operations 86 506
Adjustments for:
Share of profits of associates (1) (2)
Profit on disposal of businesses - (484)
Depreciation 52 56
Amortisation 24 24
Impairment losses 7 23
Loss / (profit) on sale of non-current assets 2 (1)
Share-based payments 3 4
(Increase) / decrease in inventories (55) 40
Decrease in receivables 27 131
Increase / (decrease) in payables 49 (284)
(Decrease) / increase in provisions (14) 3
Contributions below / (in excess of) employee benefit obligations charge 3 (2)
Changes in fair value of financial instruments (11) 9
Net finance costs 32 23
Disposal costs (1) (16)
Income tax paid (15) (74)
Net cash (outflow) / inflow from operating activities - discontinued 11 (27) 22
operations
Net cash inflow / (outflow) from operating activities 161 (22)
Cash flows from investing activities
Interest received 44 44
Purchases of property, plant and equipment (111) (115)
Purchases of intangible assets (18) (20)
Purchases of financial assets held at amortised cost (11) -
Proceeds from sale of businesses 5 578
Net cash outflow from investing activities - discontinued operations 11 (17) (36)
Net cash (outflow) / inflow from investing activities (108) 451
Cash flows from financing activities
Purchase of treasury shares - (123)
Proceeds from borrowings 4 19
Repayment of borrowings (202) (66)
Net cash movements from hedging activities 9 -
Dividends paid to equity shareholders 7 (92) (101)
Interest paid (87) (77)
Principal element of lease payments (2) (3)
Net cash outflow from financing activities - discontinued operations 11 (2) (2)
Net cash outflow from financing activities (372) (353)
Change in cash and cash equivalents (319) 76
Exchange differences on cash and cash equivalents (1) -
Cash and cash equivalents at beginning of year 874 530
Cash and deposits transferred to assets classified as held for sale 11 (29) -
Cash and cash equivalents at end of period 17 525 606
Cash and deposits 194 165
Money market funds 371 456
Bank overdrafts (11) (15)
Cash and deposits transferred to assets classified as held for sale 11 (29) -
Cash and cash equivalents 17 525 606
* Restated to reflect classification of the Catalyst Technologies segment as
discontinued operations (see note 11).
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30(th) September 2025
Share Share Treasury Other Retained Total
capital premium shares reserves earnings equity
£ million £ million £ million £ million £ million £ million
At 1(st) April 2024 215 148 (17) 36 1,998 2,380
Total comprehensive (expense) / income for the period - - - (115) 501 386
Dividends paid (note 7) - - - - (101) (101)
Purchase of treasury shares (8) - - 8 (251) (251)
Share-based payments - - - - 9 9
Cost of shares transferred to employees - - 5 - (8) (3)
At 30(th) September 2024 207 148 (12) (71) 2,148 2,420
Total comprehensive income / (expense) for the period - - - 10 (99) (89)
Dividends paid (note 7) - - - - (37) (37)
Purchase of treasury shares (10) - - 10 - -
Share-based payments - - - - 9 9
Cost of shares transferred to employees - - 2 - (10) (8)
At 31(st) March 2025 197 148 (10) (51) 2,011 2,295
Total comprehensive expense for the period - - - (77) (29) (106)
Dividends paid (note 7) - - - - (92) (92)
Share-based payments - - - - 8 8
Cost of shares transferred to employees - - 4 - (8) (4)
At 30(th) September 2025 197 148 (6) (128) 1,890 2,101
1 Basis of preparation and statement of compliance
These condensed consolidated interim financial statements for the half-year
reporting period ended 30(th) September 2025 (the 'condensed consolidated
accounts') have been prepared in accordance with UK-adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the UK's Financial Conduct
Authority. The accounting policies, estimates and judgements applied in the
condensed consolidated accounts are consistent with the accounting policies,
estimates and judgements applied by the group in its consolidated accounts as
at, and for the year ended, 31(st) March 2025, with the exception of the
adoption of additional material accounting policies and amended standards as
explained below.
These condensed consolidated accounts do not constitute statutory accounts
within the meaning of Section 435 of the Companies Act 2006. They do not
include all of the notes of the type normally included in an annual financial
report. Accordingly, the condensed consolidated accounts should be read in
conjunction with the annual report for the year ended 31(st) March 2025, which
has been prepared in accordance with UK-adopted International Accounting
Standards (IAS) and with the requirements of the Companies Act 2006.
Information in respect of the year ended 31(st) March 2025 is derived from the
company's statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditor's report on those statutory accounts was
unqualified, did not include a reference to any matters to which the auditor
drew attention by way of emphasis without qualifying its report and did not
contain any statement under Section 498 (2) or Section 498 (3) of the
Companies Act 2006.
The condensed consolidated accounts are unaudited but have been reviewed by
the auditors. They were approved by the board of directors on 20(th) November
2025.
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 fifteen
months from the date of approving these condensed consolidated accounts.
As at 30(th) September 2025, the group maintains a healthy balance sheet with
around £1.5 billion of available cash and undrawn committed facilities. Free
cash flow from continuing operations during the period was a £4 million
inflow with net debt increasing by £161 million. Net debt from continuing
operations at 30(th) September 2025 was £971 million at 2.0 times net debt to
underlying EBITDA which was at the top end of our current target range of
1.5-2.0x. Refer to note 17 for further information on these non-GAAP measures.
Despite stronger metal prices, steady inflation and interest rates starting to
fall, significant headwinds remain due to ongoing global auto sector weakness,
persistent geopolitical tensions, and political uncertainty particularly about
tariffs. Despite these challenges, the group demonstrated resilience during
the period, delivering strong underlying operating profit. For the purposes of
assessing going concern, we have updated our financial projections using the
latest forecast for our base case scenarios from a group perspective exclusive
of Catalyst Technologies, in light of its ongoing divestment. This scenario
assumes the receipt of net proceeds of £1.6 billion from the divestment of
Catalyst Technologies, of which £1.4 billion is returned to shareholders and
£200 million is retained. The base case scenario was stress tested to a
'severe but plausible' downside case which reflects lower demand across our
markets to account for significant disruption from external factors and a deep
recession.
The severe-but-plausible case for Clean Air modelled scenarios assuming a
smaller light and heavy-duty vehicle market from reduced vehicle production
and/or market consumer demand disruption, which could be caused by tariffs or
other general changes to the market environment, or greater share of zero
emission vehicles in market. This was assumed to result in a further 10% drop
in sales from the base case. For PGM Services (PGMS), it also assumed a
reduction in sales and associated operating profit based on adverse scenarios
using external and internal market insights.
1 Basis of preparation and statement of compliance (continued)
Going concern (continued)
Additionally, the group considered scenarios including the impact from metal
price volatility, delays in capital projects and delivery of cost
transformation savings, slow down of operations in China and an additional
impact of US tariffs. We have also considered the impact of a refinery
shutdown and other manufacturing plant shutdowns for a prolonged period.
Whilst the combined impact would reduce profitability and EBITDA against our
latest forecast, we maintain strong liquidity and sufficient
facilities/covenants headroom to retain access to financing arrangements.
The group has a robust funding position comprising a range of long-term debt
and a £1 billion five year committed revolving credit facility (RCF) which
was undrawn. There was £536 million of cash held in money market funds or
placed on deposit with highly rated banks. Of the existing loans, £112
million of USPP debt will mature in the next 15 months. We assume no
refinancing of this debt in the going concern modelling. As a long time,
highly rated issuer in the US private placement market, the group expects to
be able to access additional funding in its existing markets if required but
the going concern conclusion is not dependent on such access as the company
has sufficient financing and liquidity to fund its obligations in all
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 also excluded from our going concern modelling.
Conclusion
In all scenarios, the group has sufficient headroom against committed
facilities and key financial covenants are not in breach during the going
concern period. There remain risks to the group including more extreme
economic outcomes. Against these, the group has a range of levers which it
could utilise to protect headroom including reducing capital expenditure,
renegotiating payment terms or 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 fifteen months
following the date of approving these condensed consolidated accounts.
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 17.
Amended standards adopted by the group
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
2025:
- Amendments to IAS 21, The Effects of Changes in Foreign Exchange
Rates relating to exchangeability of a currency;
- Amendments to IFRS 9, Financial Instruments and IFRS 7,
Financial Instruments: Disclosures
The new or amended standards and interpretations above that are effective for
the year ended 31(st) March 2026 have not had a material impact on the group.
The group has not early adopted any standard, amendment or interpretation that
was issued but is not yet effective.
1 Basis of preparation and statement of compliance (continued)
Additional material accounting policies adopted by the group
Assets held for sale and discontinued operations
Non-current assets and disposal groups are classified as held for sale, if
available for sale in its present condition and a sale is considered highly
probable within 12 months. They are measured at the lower of their carrying
amount and fair value less costs to sell. Assets and liabilities classified as
held for sale are presented separately on the Balance Sheet. The assets are
not depreciated or amortised while they are classified as held for sale.
An impairment loss is recognised in the Income Statement for any initial or
subsequent write-down of the asset or disposal group to fair value less costs
to sell. A gain is recognised for any subsequent increases in fair value less
costs to sell of an asset or disposal group, but not in excess of any
cumulative impairment loss previously recognised. A gain or loss not
previously recognised by the date of the sale of the non-current asset (or
disposal group) is recognised at the date of de-recognition.
A discontinued operation is a component of the group's business that either
has been disposed of, or that is classified as held for sale and represents a
separate major line of business or geographical area of operations, is part of
a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations or is a subsidiary acquired exclusively with a
view to resale.
Classification as a discontinued operation occurs at the earlier of disposal
or when the operation meets the criteria to be classified as held for sale.
The results of discontinued operations are presented separately in the Income
Statement. When an operation is classified as a discontinued operation, the
comparative Income Statement and Statement of Total Comprehensive Income is
restated as if the operation had been discontinued from the start of the
comparative year.
The group has elected to present assets and liabilities held for sale and
transactions relating to discontinued operations on a net basis i.e. after
adjusting for intercompany eliminations as part of consolidation. The policy
has been applied consistently to all periods presented in which discontinued
operations are reported.
Judgements made in applying accounting policies
Assets held for sale and discontinued operations
On 22(nd) May 2025, the group announced the agreement of the sale of its
Catalyst Technologies business to Honeywell International Inc., refer to note
11 for further information. At the balance sheet date, the sale was considered
highly probable and therefore management concluded that the criteria of IFRS 5
for classification as held for sale at 30(th) September 2025 has been met.
Additionally, as a separately reported operating segment the disposal group is
deemed a major line of business which therefore meets the criteria for
classification as a discontinued operation. Consequently, the Catalyst
Technologies business has been classified as held for sale and a discontinued
operation within these condensed consolidated accounts.
2 Segmental information
Revenue, sales and underlying operating profit by business
Clean Air - provides catalysts for emission control after-treatment systems
used in light and heavy duty vehicles powered by internal combustion engines.
PGM Services - enables the energy transition through developing new PGM
applications and providing circular solutions. Provides a strategic service to
the group, supporting the other segments with security of metal supply and the
manufacture of value-add PGM products.
Hydrogen Technologies - provides components across the value chain for fuel
cells and electrolysers including catalyst coated membranes.
Value Businesses - a portfolio of businesses that were managed to drive
shareholder value from activities considered to be non-core to the group. The
disposal of the Value Businesses portfolio concluded during the prior period.
The Group Leadership Team (the chief operating decision maker as defined by
IFRS 8, Operating Segments) monitors the results of these operating businesses
to assess performance and make decisions about the allocation of resources.
Each operating business is represented by a member of the Group Leadership
Team. These operating businesses represent the group's reportable segments and
their principal activities are described on pages 13 to 18 of the 2025 Annual
Report. The performance of the group's operating businesses is assessed on
sales and underlying operating profit (see note 17). Sales between segments
are made at market prices, taking into account the volumes involved.
An agreement for the sale of Catalyst Technologies was announced on 22(nd) May
2025. Its results are therefore presented within discontinued operations (see
note 11).
2 Segmental information (continued)
Six months ended 30(th) September 2025
Total from
Clean PGM Hydrogen continuing
Air Services Technologies Corporate Eliminations operations
£ million £ million £ million £ million £ million £ million
Revenue from external customers 1,795 3,533 25 - - 5,353
Inter-segment revenue - 707 - - (707) -
Revenue 1,795 4,240 25 - (707) 5,353
Cost of sales - precious metals to customers (734) (4,014) (2) - 676 (4,074)
Cost of sales - non-precious metals (849) (113) (29) (7) 31 (967)
Cost of sales (1,583) (4,127) (31) (7) 707 (5,041)
External sales(1) 1,061 195 23 - - 1,279
Inter-segment sales - 31 - - (31) -
Sales(1) 1,061 226 23 - (31) 1,279
Underlying operating profit / (loss)(1) 132 66 (18) (38) - 142
Six months ended 30(th) September 2024*
PGM Total from
Clean Services Hydrogen Value continuing
Air (restated) Technologies Businesses Corporate Eliminations operations
£ million £ million £ million £ million £ million £ million £ million
Revenue from external customers 2,013 3,222 24 50 - - 5,309
Inter-segment revenue - 776 - - - (776) -
Revenue 2,013 3,998 24 50 - (776) 5,309
Cost of sales - precious metals to customers (848) (3,783) (4) (14) - 742 (3,907)
Cost of sales - non-precious metals (948) (118) (32) (33) (6) 34 (1,103)
Cost of sales (1,796) (3,901) (36) (47) (6) 776 (5,010)
External sales(1) 1,165 181 20 36 - - 1,402
Inter-segment sales - 34 - - - (34) -
Sales(1) 1,165 215 20 36 - (34) 1,402
Underlying operating profit / (loss)(1) 121 51 (26) 2 (42) - 106
(1) Sales and underlying operating profit are non-GAAP measures (see note 17
for reconciliation to GAAP measures). Sales excludes the cost of precious
metals to customers. Underlying operating profit excludes profit or loss on
disposal of businesses, gain on significant legal proceedings and major
impairment and restructuring charges.
* The comparative period is restated to reflect the group's updated reporting
segments, where a business was moved from Catalyst Technologies to PGM
Services. This resulted in an increase of £23 million revenue and £8 million
sales in PGM Services, with a corresponding decrease in Catalyst Technologies.
Also restated to reflect classification of the Catalyst Technologies segment
as discontinued operations (see note 11).
2 Segmental information (continued)
Net assets by business
At 30(th) September 2025
Clean PGM Hydrogen
Air Services Technologies Corporate Total
£ million £ million £ million £ million £ million
Segmental net assets 1,508 87 156 284 2,035
Net debt (see note 17) (971)
Post-employment benefit net assets and liabilities 199
Deferred tax net assets 53
Provisions and non-current other payables (80)
Investments in associates 70
Net assets held for sale (see note 11) 795
Net assets 2,101
At 31(st) March 2025*
PGM Catalyst
Clean Services Technologies Hydrogen
Air (restated) (restated) Technologies Corporate Total
£ million £ million £ million £ million £ million £ million
Segmental net assets 1,345 144 778 153 373 2,793
Net debt (see note 17) (799)
Post-employment benefit net assets and liabilities 200
Deferred tax net assets 131
Provisions and non-current other payables (101)
Investments in associates 71
Net assets 2,295
* The comparative period is restated to reflect the group's updated reporting
segments, where a business was moved from Catalyst Technologies to PGM
Services. This resulted in an increase of £23 million segmental net assets in
PGM Services, with a corresponding decrease in Catalyst Technologies. The
overall group total is as previously reported.
3 Revenue
Products and services
The group's principal products and services by operating business and
sub-business 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-business 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
or
metal
being
availab
le to
custome
r
Other precious metal products Point in time On
despatc
h or
deliver
y
Platinum Group Metal chemical, industrial products and catalyst Point in time On
despatc
h or
deliver
y
Hydrogen Technologies
Fuel Cells Technology Various Fuel cell catalyst coated membranes Point in time On despatch or delivery
Electrolysis Technology Various Electrolyser catalyst coated membrane Point in time On despatch or delivery
Value Businesses (Battery Systems and Medical Device Components) was disposed
in the prior year. Refer to note 4 for further information.
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
3 Revenue (continued)
Revenue from external customers by principal products and services
Six months ended 30(th) September 2025
Continuing operations
Clean PGM Hydrogen
Air Services Technologies Total
£ million £ million £ million £ million
Metal 734 3,338 2 4,074
Heavy Duty Catalysts 348 - - 348
Light Duty Catalysts 688 - - 688
Platinum Group Metal Services - 195 - 195
Fuel Cells Technology - - 23 23
Other 25 - - 25
Revenue 1,795 3,533 25 5,353
Six months ended 30(th) September 2024*
Continuing operations
PGM
Clean Services Hydrogen Value
Air (restated) Technologies Businesses Total
£ million £ million £ million £ million £ million
Metal 848 3,041 4 14 3,907
Heavy Duty Catalysts 364 - - - 364
Light Duty Catalysts 774 - - - 774
Platinum Group Metal Services - 181 - - 181
Fuel Cells Technology - - 20 - 20
Battery Systems - - - 15 15
Medical Device Components - - - 21 21
Other 27 - - - 27
Revenue
Revenue 2,013 3,222 24 50 5,309
* The comparative period is restated to reflect the group's updated reporting
segments, where a business was moved from Catalyst Technologies to PGM
Services. This resulted in an increase of £23 million revenue in PGM
Services, with a corresponding decrease in Catalyst Technologies. Also
restated to reflect classification of the Catalyst Technologies segment as
discontinued operations (see note 11).
The contract receivables balance at 30(th) September 2025 is £47 million
(31(st) March 2025: £53 million).
3 Revenue (continued)
Revenue from external customers by point in time and over time performance
obligations
Six months ended 30(th) September 2025
Continuing operations
Clean PGM Hydrogen
Air Services Technologies Total
£ million £ million £ million £ million
Revenue recognised at a point in time 1,795 3,412 25 5,232
Revenue recognised over time - 121 - 121
Revenue 1,795 3,533 25 5,353
Six months ended 30(th) September 2024*
Continuing operations
PGM
Clean Services Hydrogen Value
Air (restated) Technologies Businesses Total
£ million £ million £ million £ million £ million
Revenue recognised at a point in time 2,013 3,117 24 47 5,201
Revenue recognised over time - 105 - 3 108
Revenue 2,013 3,222 24 50 5,309
* The comparative period is restated to reflect the group's updated reporting
segments, where a business was moved from Catalyst Technologies to PGM
Services. This resulted in an increase of £23 million revenue in PGM
Services, with a corresponding decrease in Catalyst Technologies. This was
split £11 million revenue recognised at a point in time and £12 million
revenue recognised over time. Also restated to reflect classification of the
Catalyst Technologies segment as discontinued operations (see note 11).
4 Operating profit
Six months ended
30.9.25 30.9.24
£ million £ million*
Operating profit is arrived at after charging / (crediting):
Research and development expenditure charged to the income statement 69 82
Less: External funding received - from governments (11) (8)
Net research and development expenditure charged to the income statement 58 74
Depreciation of:
Property, plant and equipment 49 54
Right-of-use assets 3 2
Depreciation 52 56
Amortisation of:
Other intangible assets 24 24
Amortisation 24 24
Profit on disposal of businesses - (484)
Gain on significant legal proceedings (8) -
Property, plant and equipment 7 5
Other intangible assets - 17
Inventories - 1
Impairment losses 7 23
Restructuring charges 26 40
Major impairment and restructuring charges 33 63
* Restated to reflect classification of the Catalyst Technologies segment as
discontinued operations (see note 11).
Non underlying items are shown separately on the face of the income statement
and excluded from underlying operating profit, see note 17.
Profit on disposal of businesses
On 30(th) April 2024, the group completed the sale of Battery Systems, on
1(st) July 2024, the group completed the sale of its Medical Device Components
business. On 24(th) July 2024, the group completed the sale of the land and
buildings from our legacy Battery Materials business in Poland.
Gain on significant legal proceedings
During the period the group settled an insurance litigation and received
proceeds of £8 million.
Major impairment and restructuring charges
Major impairments - the group's impairment charge of £7 million relates to
production related assets in Clean Air as the business continues to
consolidate its existing capacity into more efficient plants.
Major restructuring - restructuring charges of £26 million have been
recognised of which £13 million is as a result of us rightsizing the group to
ensure it is leaner and more efficient in the future. During the period there
was also a one-off termination cost of £7 million for a US pension scheme
which was closed to accrual in June 2023. The remaining £6 million charge is
related to Clean Air's ongoing plant consolidation initiatives, of which the
majority is redundancy and exit costs.
5 Tax expense
The charge for taxation for continuing operations at the half year ended
30(th) September 2025 is £102 million (1H 2024/25: £58 million), an
effective tax rate of 119%. This tax charge includes £78 million equating to
an effective tax rate of 98% (for deferred tax assets not being recognised in
the current period of £84 million offset by the UK IFRIC23 reversal of £6
million), due to the impact of the proposed Catalyst Technologies business
disposal.
The tax charge on underlying profit before tax on continuing operations was
£24 million, an effective tax rate of 21.8%, compared to the 20.5% in the
half year ended 30(th) September 2024. Excluding discrete items, the tax
charge on underlying profit before tax on continuing operations was £23
million, an effective tax rate of 20.9% compared to 18.3% in the half year
ended 30(th) September 2024.
Deferred tax assets are recognised only to the extent that it is probable that
future taxable profits will be available against which the assets can be
utilised. The recoverability of deferred tax assets is supported by future
taxable profits where available. Where there are insufficient future taxable
profits, deferred tax assets are recognised against future taxable income
arising from the reversal of deferred tax liabilities. As above, a £84
million deferred tax asset relating to the UK profitability has not been
recognised in the current period.
The group is within the scope of the OECD Pillar Two model rules. The group is
in scope by virtue of the parent company being tax resident in the UK. Pillar
Two legislation has been enacted in the UK, as well as several other
territories where the group operates. The group applies the exception to
recognising and disclosing information about deferred tax assets and
liabilities related to Pillar Two model rules, as provided in the amendments
to IAS 12 issued in May 2023.
Under the UK legislation, the group is liable to pay a top-up tax for the
difference between its Global Anti-Base Erosion ('GloBE') effective tax rate
per jurisdiction and the 15% minimum rate. Based on an initial analysis of the
current year financial data, most jurisdictions in which the group operates
are expected to qualify for one of the safe harbour exemptions such that
top-up taxes should not apply or where the safe harbour exemptions do not
apply, no top-up taxes are expected to arise under the full GloBE calculation.
In jurisdictions where neither of this is the case, the reported tax charge
includes income tax of £1.6 million related to Pillar Two income tax. We
continue to monitor potential impacts to the level of necessary provision as
further OECD guidance is published, including, as territories implement
legislation to enact the rules, and as territories increase their domestic
Corporate Tax rate in response to the OECD Pillar Two rules.
6 (Loss) / earnings per ordinary share
Six months ended
30.9.25 30.9.24
pence pence
Basic (10.7) 266.8
Diluted (10.7) 266.4
Basic from continuing operations (9.5) 247.0
Diluted from continuing operations (9.5) 246.6
(Loss) / earnings per ordinary share have been calculated by dividing (loss) /
profit for the period by the weighted average number of shares in issue during
the period.
See note 11 for the earnings per ordinary share from discontinued operations.
See note 17 for the underlying earnings per ordinary share.
Six months ended
Weighted average number of shares in issue 30.9.25 30.9.24
Basic 168,044,322 181,728,079
Dilution for long term incentive plans 412,715 273,281
Diluted 168,457,037 182,001,360
7 Dividends
An interim dividend of 22.00 pence per ordinary share has been proposed by the
board which will be paid on 3(rd) February 2026 to shareholders on the
register at the close of business on 28(th) November 2025. The estimated
amount to be paid is £37 million (1H 2024/25: £37 million) and has not been
recognised in these accounts.
Six months ended
30.9.25 30.9.24
£ million £ million
2023/24 final ordinary dividend paid ─ 55.00 pence per share - 101
2024/25 final ordinary dividend paid ─ 55.00 pence per share 92 -
Total dividends 92 101
8 Property, plant and equipment
Assets in
Freehold land Leasehold Plant and the course of
and buildings improvements machinery construction Total
£ million £ million £ million £ million £ million
Cost
At 1(st) April 2025 605 22 2,232 643 3,502
Additions - - 2 82 84
Transfers from assets in the course of construction 5 - 58 (63) -
Transferred to assets classified as held for sale (note 11) (58) (13) (468) (78) (617)
Disposals (4) - (39) (8) (51)
Exchange adjustments (2) (1) (12) (1) (16)
At 30(th) September 2025 546 8 1,773 575 2,902
Accumulated depreciation and impairment
At 1(st) April 2025 325 11 1,643 112 2,091
Charge for the period 7 1 45 - 53
Impairment losses(1) - - 9 - 9
Transfers from assets in the course of construction - - 1 (1) -
Transferred to assets classified as held for sale (note 11) (30) (4) (313) (1) (348)
Disposals (4) - (39) (8) (51)
Exchange adjustments (2) - (12) - (14)
At 30(th) September 2025 296 8 1,334 102 1,740
Carrying amount at 30(th) September 2025 250 - 439 473 1,162
Carrying amount at 1(st) April 2025 280 11 589 531 1,411
(1) Includes £2 million impairment losses relating to discontinued
operations, see note 11.
Assets classified as held for sale relate to Catalyst Technologies, see note
11. Difference to note 11 of £13 million is due to capital expenditure
between the held for sale classification date and balance sheet date.
9 Other intangible assets
Customer contracts and relationships Computer software Patents trademarks and licences Acquired research and technology Development expenditure Assets Under Construction Total
£ million £ million £ million £ million £ million £ million* £ million
Cost
At 1(st) April 2025 103 607 31 30 139 - 910
Additions - - - - - 15 15
Reclassifications to/from assets in the course of construction - (76) - - 1 75 -
Transferred to assets classified as held for sale (note 11) (78) (45) (24) (12) (6) - (165)
Disposals - (3) - - - - (3)
Exchange adjustments - (1) (1) 1 1 - -
At 30(th) September 2025 25 482 6 19 135 90 757
Accumulated amortisation and impairment
At 1(st) April 2025 94 337 28 30 133 - 622
Charge for the period - 25 - - - - 25
Impairment losses(1) - 1 - - - 3 4
Reclassifications to assets in the course of construction - (18) - - - 18 -
Transferred to assets classified as held for sale (note 11) (70) (17) (23) (11) - - (121)
Disposals - (1) - - - - (1)
Exchange adjustments - - (1) - 1 - -
At 30(th) September 2025 24 327 4 19 134 21 529
Carrying amount at 30(th) September 2025 1 155 2 - 1 69 228
Carrying amount at 1(st) April 2025 9 270 3 - 6 - 288
(1) Included within discontinued operations, see note 11.
* During the period the group expanded the other intangible assets note to
include assets under construction. This resulted in a reclassification of £76
million cost of assets and associated impairments previously recorded under
computer software to assets under construction.
Assets classified as held for sale relate to Catalyst Technologies, see note
11. Difference to note 11 of £1 million is due to capital expenditure between
the held for sale classification date and balance sheet date.
10 Investments in associates
As part of the disposal of our Health business, we received £75 million in
the form of shares which constitutes approximately 30% equity interest in the
re-branded business (Veranova). The group determined that it has significant
influence and therefore has equity accounted this stake as an investment in
associate.
Associates
£ million
At 1(st) April 2025 71
Group's share of profits for the period 1
Exchange adjustments (2)
At 30(th) September 2025 70
11 Discontinued operations and assets and liabilities classified as held for sale
On 22(nd) May 2025, the group announced the sale of its Catalyst Technologies
business to Honeywell International Inc. at an enterprise value of £1.8
billion on a cash and debt-free basis.
The Catalyst Technologies segment is classified as a discontinued operation
and presented separately in the consolidated income statement. The Catalyst
Technologies segment was not previously classified as held-for-sale or as a
discontinued operation for the year ended 31(st) March 2025 as the criteria of
IFRS 5 for classification had not been met. The comparative income statement
and statement of total comprehensive income has been restated to show the
discontinued operations separately from continuing operations.
Financial information relating to the Catalyst Technologies discontinued
operations is set out below.
Six months ended
30.9.25 30.9.24
£ million £ million
Revenue 269 323
Expenses(1) (267) (275)
Profit before tax from discontinued operations 2 48
Tax expense (4) (12)
(Loss) / profit after tax from discontinued operations (2) 36
Amounts (charged) / credited to hedging reserve (1) 4
Exchange differences on translation of discontinued operations (8) (16)
Tax on above items - (1)
Other comprehensive expense from discontinued operations (9) (13)
Total comprehensive (expense) / income from discontinued operations (11) 23
Net cash (outflow) / inflow from operating activities (27) 22
Net cash outflow from investing activities (17) (36)
Net cash outflow from financing activities (2) (2)
Net decrease in cash used by the discontinued operations (46) (16)
pence pence
(Loss) / earnings per ordinary share from discontinued operations
Basic (loss) / earnings per ordinary share from discontinued operations (1.2) 19.8
Diluted (loss) / earnings per ordinary share from discontinued operations (1.2) 19.8
(1) Included within expenses is £10 million of non-underlying disposal
related costs and £6 million of non-underlying impairment charges. This
impairment charge is to some of the group's assets which will have no economic
value following the agreed sale of the Catalyst Technologies business.
11 Discontinued operations and assets and liabilities classified as held for sale
(continued)
The major classes of assets and liabilities comprising the businesses
classified as held for sale as at 30(th) September 2025 are:
Catalyst
Technologies
£ million
Non-current assets
Property, plant and equipment 282
Right-of-use-assets 21
Goodwill 263
Other intangible assets 45
Other receivables 1
Current assets
Inventories 219
Taxation recoverable 4
Trade and other receivables 140
Cash and cash equivalents 29
Assets classified as held for sale 1,004
Current liabilities
Trade and other payables (150)
Lease liabilities (2)
Taxation liabilities (16)
Provisions (3)
Non-current liabilities
Lease liabilities (18)
Deferred tax liabilities (6)
Employee benefit obligations (7)
Provisions (6)
Trade and other payables (1)
Liabilities classified as held for sale (209)
Net assets of disposal group 795
12 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
The financial assumptions for the major plans are as follows:
30.9.25 31.3.25
UK plan US plans UK plan US plans
% % % %
Rate of increase in pensions in payment 2.75 - 2.90 -
Discount rate 6.00 5.20 5.90 5.40
Inflation - 2.20 - 2.20
- UK Retail Prices Index (RPI) 2.90 - 3.00 -
- UK Consumer Prices Index (CPI) 2.70 - 2.75 -
The financial assumptions for the other plans are reviewed and updated
annually.
Financial information
Movements in the net post-employment benefit assets and liabilities, including
reimbursement rights, were:
UK UK UK post- US post-
pension - pension - retirement retirement
legacy cash balance medical US medical
section section benefits pensions benefits Other Total
£ million £ million £ million £ million £ million £ million £ million
At 1(st) April 2025 175 58 (6) 1 (9) (16) 203
Current service cost - in
operating profit - (6) - - - - (6)
Loss on settlement - in
operating profit(1) - - - (7) - - (7)
Administrative expenses - in
operating profit (1) - - (1) - - (2)
Interest 5 2 - - - - 7
Remeasurements (15) 1 - 2 - 1 (11)
Company contributions - 7 - 5 - - 12
Reclassified to liabilities
classified as held for sale - - - - - 5 5
Exchange - - - 1 - (1) -
At 30(th) September 2025 164 62 (6) 1 (9) (11) 201
(1) During the period the group completed the buy-out of its US defined
benefit salaried scheme following its closure to accrual on 30(th) June 2023.
This resulted in a one-off termination cost of £7 million (see note 4) and a
reduction in the pension assets and pension liabilities of £157 million.
12 Post-employment benefits (continued)
Financial information (continued)
The post-employment benefit assets and liabilities are included in the balance
sheet as follows:
30.9.25 30.9.25 31.3.25 31.3.25
Post- Post-
employment Employee employment Employee
benefit benefit net benefit benefit net
net assets obligations net assets obligations
£ million £ million £ million £ million
UK pension - legacy section 164 - 175 -
UK pension - cash balance section 62 - 58 -
UK post-retirement medical benefits - (6) - (6)
US pensions 1 - 4 (3)
US post-retirement medical benefits - (9) - (9)
Other 1 (12) 1 (17)
Total post-employment plans 228 (27) 238 (35)
Other long-term employee benefits (2) (3)
Total long-term employee benefit obligations (29) (38)
13 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 periods.
13 Fair values (continued)
Fair value
30.9.25 31.3.25 hierarchy
£ million £ million level
Financial instruments measured at fair value
Non-current
Investments at fair value through other comprehensive income(1) 35 38 1
Derivative financial instruments - assets(2) - 4 2
Derivative financial instruments - liabilities(2) (15) (9) 2
Current
Trade receivables(3) 172 158 2
Other receivables(4) 3 1 2
Cash and cash equivalents - money market funds 371 435 2
Cash and cash equivalents - cash and deposits 55 23 2
Derivative financial instruments - assets(2) 28 55 2
Derivative financial instruments - liabilities(2) (19) (14) 2
Fair value
30.9.25 31.3.25 hierarchy
£ million £ million level
Financial instruments not measured at fair value
Non-current
Borrowings (1,318) (1,301) -
Lease liabilities (26) (40) -
Trade and other receivables 57 58 -
Other payables (1) (6) -
Current
Amounts receivable under precious metal sale and repurchase agreements(5) 248 282 -
Amounts payable under precious metal sale and repurchase agreements(5) (776) (669) -
Cash and cash equivalents - cash and deposits 110 440 -
Cash and cash equivalents - bank overdrafts (11) (24) -
Financial assets held at amortised cost 11 - -
Borrowings (134) (333) -
Lease liabilities (3) (6) -
Trade and other receivables 700 862 -
Trade and other payables (1,003) (1,210) -
(1) Investments at fair value through other comprehensive income are quoted
bonds purchased to fund pension deficit (£33 million) and investments held at
fair value through other comprehensive income (£2 million).
(2) Derivative financial instruments - current assets includes forward foreign
exchange contracts (£16 million) and forward precious metal price contracts
(£12 million). Derivative financial instruments - current liabilities
includes forward foreign exchange contracts (£6 million) and forward precious
metal price contracts (£13 million). Derivative financial instruments -
non-current liabilities is cross currency and interest rate swaps (£15
million).
(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.
(5) Comparatives restated in this table to reflect the carrying amount. The
fair values are disclosed on the next page.
13 Fair values (continued)
The fair value of financial instruments, excluding accrued interest, is
approximately equal to book value except for:
30.9.25 31.3.25
Carrying Fair Carrying Fair
amount value amount value
£ million £ million £ million £ million
US Dollar Bonds 2025, 2027, 2028, 2029, 2030, 2031 and 2034 (376) (331) (592) (571)
Euro Bonds 2025, 2028, 2030, 2031, 2032, 2034 and 2036 (566) (543) (539) (520)
Sterling Bonds 2025 and 2029 (80) (48) (80) (74)
Amounts receivable under precious metal sale and repurchase agreements 248 281 282 300
Amounts payable under precious metal sale and repurchase agreements (776) (814) (669) (687)
The fair values of the bonds are calculated using Level 2 inputs by
discounting future cash flows to net present values using appropriate market
interest rates prevailing at the period end.
14 Precious metal leases
At 30(th) September 2025, precious metal leases were £279 million at
closing prices (31(st) March 2025: £202 million). Precious metal leases do
not fall under the scope of IFRS 16.
15 Transactions with related parties
There have been no material changes in related party relationships in the six
months ended 30(th) September 2025. During the half year ended 30(th)
September 2025, the group had sales with associates totalling £2 million (1H
2024/25: £2 million). The amounts owed by Veranova were £1 million at 30(th)
September 2025 (1H 2024/25: £1 million). No other related party transactions
have occurred which have materially affected the financial position or
performance of the group during the period.
16 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. 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 purchaser of the
Health business, Veranova Bidco LP, has issued a claim against the group in
connection with certain warranties given in the sale and purchase agreement
dated 16(th) December 2021 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 is vigorously defending its
position. The outcome of the legal proceedings relating to this matter is not
certain, since the issues of liability and quantum will be for determination
by the court at trial. Accordingly, the group is unable to make a reliable
estimate of the possible financial impact at this stage, if any.
17 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.
17 Non-GAAP measures (continued)
Definitions
Measure Definition Purpose
Sales(1) Revenue excluding cost 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 capital employed (ROCE)(1) Annualised underlying operating profit divided by the average equity plus Provides a measure of the group's efficiency in allocating the capital under
average net debt. The average is calculated using the opening balance for the its control to profitable investments.
financial year and the closing balance.
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(3) Net cash flow from operating activities (excluding disposal related costs) Provides a measure of the cash the group generates through its operations,
after net interest paid, net purchases of non-current assets and investments, less capital expenditure.
and the principal element of lease payments.
Net debt to underlying EBITDA(3) Net debt, including quoted bonds purchased to fund the UK pension (excluded Provides a measure of the group's ability to repay its debt. The group has a
when the UK pension plan is in surplus) divided by underlying EBITDA for the long-term target of net debt to underlying EBITDA of between 1.5 and 2.0
same period. 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, gain on significant legal proceedings, major impairment and
restructuring charges, share of profits or losses from non-strategic equity
investments, one-off tax transactions 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.
(3) The definition of these non-GAAP measures have been redefined in the
current period to give better clarity and transparency and more closely align
with the purpose of the non-GAAP measure.
17 Non-GAAP measures (continued)
Reconciliations to GAAP measures
Sales
See note 2.
Underlying profit measures
Operating Profit Tax Profit / (loss)
profit before tax expense for the period
Six months ended 30(th) September 2025 £ million £ million £ million £ million
Underlying 142 110 (24) 86
Gain on significant legal proceedings(1) 8 8 (2) 6
Major impairment and restructuring charges(1) (33) (33) 2 (31)
Share of profits of associates - 1 - 1
Reversal of IFRIC23 UK adjustments to current tax - - 6 6
Deferred tax asset not recognised - - (84) (84)
Reported 117 86 (102) (16)
(1) For further detail please see note 4.
Operating Profit Tax Profit for
profit before tax expense the period
Six months ended 30(th) September 2024* £ million £ million £ million £ million
Underlying 106 83 (17) 66
Profit on disposal of businesses 484 484 (70) 414
Major impairment and restructuring charges (63) (63) 15 (48)
Share of profits of associates - 2 - 2
Change in non-underlying tax provisions - - 14 14
Reported 527 506 (58) 448
Underlying earnings per share Six months ended
30.9.25 30.9.24*
Underlying profit for the period (£ million) 86 66
Weighted average number of shares in issue (million) 168.0 181.7
Underlying earnings per share (pence) 51.2 36.6
* The comparative period is restated to reflect the group's updated reporting
segments. Also restated to reflect classification of the Catalyst Technologies
segment as discontinued operations (see note 11).
17 Non-GAAP measures (continued)
Return on Capital Employed (ROCE)
Six months Year Six months
ended ended ended
30.9.25 31.3.25 30.9.24
£ million £ million* £ million*
Underlying operating profit for this period 142 299 106
Underlying operating profit for prior year 299 - 336
Less: Underlying operating profit for prior first half (106) - (146)
Annualised underlying operating profit 335 299 296
Average net debt 891 888 882
Average equity 1,419 1,609 1,688
Average capital employed 2,310 2,497 2,570
ROCE 14.5% 12.0% 11.5%
Average working capital days (excluding precious metals) Six months Year Six months
ended ended ended
30.9.25 31.3.25 30.9.24
£ million £ million* £ million*
Inventories 857 1,011 1,153
Trade and other receivables 1,353 1,532 1,588
Trade and other payables (1,824) (1,984) (2,070)
386 559 671
Less: Working capital balances relating to discontinued operations - (192) (177)
Total working capital 386 367 494
Less: Precious metal working capital 29 (111) (163)
Add: Precious metal working capital relating to discontinued operations - 8 9
Working capital (excluding precious metals) 415 264 340
Average working capital days (excluding precious metals) 59 52 51
Free cash flow from continuing operations
Six months ended
30.9.25 30.9.24
£ million £ million*
Net cash inflow / (outflow) from operating activities 161 (22)
Less: Net cash outflow / (inflow) from operating activities - discontinued 27 (22)
operations
Add: Disposal costs 1 16
Add: Income tax paid relating to divestments - 34
Interest received 44 44
Interest paid (87) (77)
Purchases of property, plant and equipment (111) (115)
Purchases of intangible assets (18) (20)
Purchases of financial assets held at amortised cost (11) -
Principal element of lease payments (2) (3)
Free cash flow 4 (165)
* Restated to reflect classification of the Catalyst Technologies segment as
discontinued operations (see note 11).
17 Non-GAAP measures (continued)
Net debt to underlying EBITDA
30.9.25 31.3.25 30.9.24
£ million £ million* £ million*
Cash and deposits 194 463 165
Money market funds 371 435 456
Bank overdrafts (11) (24) (15)
Cash and deposits transferred to assets classified as held for sale (29) - -
Cash and cash equivalents 525 874 606
Less: Cash and cash equivalents from discontinued operations - (32) (34)
Cash and cash equivalents from continuing operations 525 842 572
Derivative financial instruments - Cross currency and interest rate swaps - - 4 -
non-current
assets
Derivative financial instruments - Cross currency and interest rate swaps - - 13 10
current
assets
Derivative financial instruments - Cross currency and interest rate swaps - - (1) -
current liabilities
Derivative financial instruments - Cross currency and interest rate swaps - (15) (9) (10)
non-current liabilities
Borrowings - current (134) (333) (254)
Borrowings - non-current (1,318) (1,301) (1,100)
Lease liabilities - current (5) (6) (8)
Lease liabilities - non-current (44) (40) (27)
Lease liabilities - current - transferred to liabilities classified as held 2 - -
for sale
Lease liabilities - non-current - transferred to liabilities classified as 18 - -
held for sale
Less: Lease liabilities relating to discontinued operations - 21 18
Net debt (971) (810) (799)
(Decrease) / increase in cash and cash equivalents (319) 345 76
Less: Increase in cash and cash equivalents from discontinued operations 46 25 16
Less: Decrease / (increase) in borrowings 198 (213) 47
Less: Net cash movements from hedging activities (9) - -
Less: Principal element of lease payments 4 9 5
Less: Principal element of lease payments from discontinued operations (2) (4) (2)
Decrease in net debt resulting from cash flows (82) 162 142
New leases, remeasurements and modifications (5) (22) (9)
Less: New leases, remeasurements and modifications from discontinued - 11 7
operations
Other lease movements (1) 1 (3)
Disposal of businesses - 5 5
Exchange differences on net debt (17) 11 43
Less: Exchange differences on net debt in discontinued operations 1 - 1
Other non-cash movements (14) 16 4
Less: Other movements in discontinued operations (43) (29) (24)
Movement in net debt (161) 155 166
Net debt at beginning of period / year (810) (965) (965)
Net debt at end of period / year (971) (810) (799)
* Restated to reflect classification of the Catalyst Technologies segment as
discontinued operations (see note 11).
17 Non-GAAP measures (continued)
30.9.25 31.3.25 30.9.24
£ million £ million* £ million*
Underlying EBITDA for this period 218 186
Underlying EBITDA for prior year 455 499
Less: Underlying EBITDA for prior half year (186) (225)
Annualised underlying EBITDA 487 455 460
Net debt to underlying EBITDA 2.0 1.8 1.7
30.9.25 31.3.25 30.9.24
£ million £ million* £ million*
Underlying EBITDA 218 455 186
Depreciation and amortisation (76) (156) (80)
Profit on disposal of businesses - 482 484
Gain on significant legal proceedings 8 - -
Major impairment and restructuring charges (33) (327) (63)
Finance costs (82) (141) (73)
Finance income 50 87 50
Share of profits of associates 1 3 2
Income tax expense (102) (83) (58)
(Loss) / profit for the period from continuing operations (16) 320 448
* Restated to reflect classification of the Catalyst Technologies segment as
discontinued operations (see note 11).
2025
20(th) November
Announcement of results for the half year ending 30(th) September 2025
27(th) November
Ex dividend date
28(th) November
Interim dividend record date
2026
3(rd) February
Payment of interim dividend
28(th) May
Announcement of results for the year ending 31(st) March 2026
16(th) July
135(th) Annual General Meeting (AGM)
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 businesses in
which the group 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, 2 Gresham Street, London EC2V 7AD
Telephone: +44 (0) 20 7269 8400
Fax: +44 (0) 20 7269 8433
Internet address: www.matthey.com
E-mail: jmpr@matthey.com
Registered in England ─ Number 33774
LEI code: 2138001AVBSD1HSC6Z10
Registrars
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA
Telephone: 0371 384 2344 (in the UK) *
+44 (0) 121 415 7047 (outside the UK)
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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