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RNS Number : 6881J Johnson Matthey PLC 22 May 2025
Preliminary results for the
year ended 31(st) March 2025
22(nd) May 2025
Results in line with expectations, more focused JM accelerating value creation
· Agreed sale of Catalyst Technologies to Honeywell International Inc.
(Honeywell) at an attractive valuation - enterprise value of £1.8 billion on
a cash and debt-free basis,
13.3x 2024/25 EBITDA¹
· £1.4 billion of net sale proceeds to be returned to shareholders following
completion²
· Creating a highly focused, lean and agile group
· Driving a step change in sustainable cash generation through rigorous cost
control, materially lower capex and significant working capital benefits
· Committed to growing annual cash returns to shareholders from at least £130
million for 2025/26, equivalent to the total dividend for 2024/25³, to at
least £200 million for 2026/27 and beyond⁴
· 2024/25 results in line with guidance against a challenging market backdrop -
underlying operating profit ex-divestments of £388 million, up 6%, at
constant PGM prices and currency
· Reported operating profit of £538 million benefiting from a £482 million
profit on disposal of businesses. This was partly offset by £329 million
impairment and restructuring charges primarily across Clean Air, PGM Services
and Hydrogen Technologies
Reported results Underlying results⁵(,)⁶
Year ended % Year ended % % change,
31(st) March
change
31(st) March
change
ex-divestments⁷, constant FX rates
2025 2024 2025 2024
Revenue £m 11,674 12,843 -9
Sales excl. precious metals⁸ £m 3,470 3,904 -11 -2
Operating profit £m 538 249 116 389 410 -5 +5
Profit before tax £m 486 164 196 334 328 +2
Profit after tax £m 373 108 245 263 260 +1
Basic earnings per share pence 211.8 58.6 261 149.2 141.3 +6
Ordinary dividend per share pence 77.0 77.0 -
Free cash flow £m 521 189
Cash from operating activities £m 381 592
Net debt £m 799 951
Liam Condon, Chief Executive Officer, commented:
Today's announcement represents a significant milestone in the over 200 year
history of Johnson Matthey. Following on from the divestment of our Medical
Devices business at a highly attractive valuation, we have now agreed to the
sale of our Catalyst Technologies business for £1.8 billion. This allows JM
to realise a very attractive valuation for this business that fully reflects
its strong long-term growth prospects. We will now fundamentally re-shape
Johnson Matthey into a more highly focused and leaner business. This will
better position us to leverage our strong capabilities and leading market
positions in Clean Air and PGM Services as we drive a step change in
sustainable cash generation with higher returns to shareholders. Our full year
results were underpinned by a strong second half and were in line with
guidance and market expectations, against challenging market headwinds. This
resilient performance reflects the strength of our businesses and the
strategic progress delivered, including cumulative benefits of £200 million
from our 2021/22 to 2024/25 group transformation programme.
Group outlook for the year ending 31(st) March 2026
For 2025/26 we expect mid single digit percentage growth in group underlying
operating profit at constant precious metal prices and constant currency,
supported by self-help measures.⁹ This assumes a full year of contribution
from Catalyst Technologies. Whilst we expect good growth in the first half,
overall performance will continue to be weighted towards the second half.
In Clean Air we expect modest growth in operating profit, with a margin of
14-15%. This is based on external data which suggest a 4% decline in global
light duty vehicle production for 2025/26, before any potential impact on
customer demand due to tariffs. Despite a challenging market, 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. Assuming a full year of contribution from Catalyst
Technologies, we expect this business to deliver good operating profit growth
in 2025/26.¹⁰
If PGM (platinum group metal) prices remain at their current level¹¹ for the
remainder of 2025/26, we expect a limited effect on full year operating profit
compared with the prior year.¹²
At current foreign exchange rates¹³, translational foreign exchange
movements for the year ending 31(st) March 2026 are expected to adversely
impact underlying operating profit by c.£5 million.
We are mindful of the current uncertain macroeconomic environment including
the potential impact of the evolving tariff situation and its impact on our
customers. We remain well positioned given our global manufacturing footprint
enabling local supply and, strong long-standing and flexible customer and
supplier relationships. We are undertaking a range of mitigating actions,
including rebalancing production to leverage our global footprint, adjusting
supply chains, customer negotiations and engagement with the relevant
governments. On the basis of the current tariff proposals¹⁴, post our
mitigating actions, we do not expect the direct impact of tariffs to be
material. The indirect impact of the changing trade landscape on customer
demand in our key markets remains uncertain at this time.
Dividend
The board will propose a final ordinary dividend for the year of 55.0 pence
per share at the Annual General Meeting (AGM) on 17(th) July 2025. Together
with the interim dividend of 22.0 pence per share, this gives a total ordinary
dividend of 77.0 pence per share, maintained at the same level as the prior
year. Subject to approval by shareholders, the final dividend will be paid on
5(th) August 2025, with an ex-dividend date of 5(th) June 2025.
Board changes
As previously announced, Jane Griffiths stepped down as Chair of the Societal
Value Committee and from the board on 31(st) December 2024. Rita Forst
succeeded Jane as Chair of the Societal Value Committee from 1(st) January
2025. Sinead Lynch was appointed independent Non-Executive Director and joined
the board on 1(st) January 2025.
On 10(th) February 2025 we announced that, following nearly seven years as
Chair of Johnson Matthey, Patrick Thomas informed the board that he does not
intend to seek re-election at the AGM on
17(th) July 2025. Patrick will step down from the board and his position as
Chair immediately following the AGM. We expect Patrick's successor to be
announced by the AGM.
Richard Pike was appointed Chief Financial Officer and joined the board on
1(st) April 2025.
Investment Committee
On 27(th) January 2025, JM announced the establishment of an Investment
Committee of the board, which will reinforce the company's investment
strategies and capital allocation. Specific responsibilities of the Committee
will include review and endorsement of i) investment and capital allocation
strategy, ii) major capital projects and iii) M&A activity. Chaired by
Barbara Jeremiah, Senior Independent Director, the Committee will provide
additional oversight to these areas in line with our commitment to delivering
sustainable shareholder value.
Enquiries:
Investor Relations
Martin Dunwoodie Director of Investor Relations and Treasury +44 20 7269 8241
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. Transaction multiple of 13.3x EBITDA is based on an agreed adjusted 2024/25
EBITDA of £136 million for the standalone Catalyst Technologies business. The
underlying EBITDA of the Catalyst Technologies business in 2024/25, as
reported, is £119 million (comprising £92 million of underlying operating
profit, plus underlying depreciation and amortisation of £27 million.)
2. Further update to be provided on mechanism and timing of expected £1.4
billion shareholder return, prior to completion.
3. 2024/25 total ordinary dividend of 77.0 pence per share.
4. Our current intention is for these cash returns to be delivered through
ordinary dividends for 2025/26, and be broadly
equally weighted between dividends and share buybacks for 2026/27 and beyond.
5. 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 2024/25 results
converted at 2023/24 average rates. In 2024/25, the translational impact of
exchange rates on group sales and underlying operating profit was an adverse
impact of £58 million and £11 million respectively.
6. Underlying is before profit or loss on disposal of businesses, amortisation of
acquired intangibles, share of profits or losses from non-strategic equity
investments, major impairment and restructuring charges and, where relevant,
related tax effects. For definitions and reconciliations of other non-GAAP
measures, see pages 48 to 52.
7. Divestment of Value Businesses which is now complete.
8. Revenue excluding sales of precious metals to customers and the precious metal
content of products sold to customers.
9. Baseline is underlying operating profit excluding Value Businesses (£388
million in 2024/25 as shown on page 11).
10. Outlook commentary for Clean Air, PGM Services, Catalyst Technologies and
Hydrogen Technologies refers to underlying operating performance and assumes
constant precious metal prices and constant currency.
11. Based on average precious metal prices in May 2025 (month to date).
12. A US$100 per troy ounce change in the average annual platinum, palladium and
rhodium metal prices each have an impact of approximately £1 million, £1
million and £0.5 million respectively on full year 2025/26 underlying
operating profit in PGM Services. This assumes no foreign exchange movement.
13. Based on average foreign exchange rates for May 2025 month to date (£:US$
1.33, £:€ 1.19, £:RMB 9.59,
£:INR 114).
14. As at 16(th) May 2025.
Strategy update
Johnson Matthey is built on strong and long-standing foundations including
world-class technologies, cutting edge R&D and exceptionally talented
people. These capabilities have delivered leading market positions, strong
competitive advantages and a clear ability to win across our businesses.
We have made good progress against the strategy we outlined in May 2022. We
have focused our portfolio on our core strengths; secured significant
commercial wins and growth opportunities; divested non-core businesses;
delivered on our £200 million transformation programme; and improved our
operating model to drive greater efficiency. Our strategy has been implemented
against a backdrop of challenging and dynamic end markets, including lower
levels of automotive production and a slowdown in the energy transition, with
a direct impact on the pace of development of the green hydrogen market.
As we have executed against our strategy, we have continued to adapt with a
clear focus on optimising value for shareholders. Today, we announced a
significant milestone in the history of JM - the sale of Catalyst Technologies
to Honeywell in a deal agreed post year-end. This is a
near-term opportunity for shareholders to realise value that fully reflects
the strong long-term growth prospects of Catalyst Technologies. At the same
time, this allows us to de-risk our exposure to market factors beyond our
control and recalibrate our strategy to become a more highly focused, lean and
agile business.
Sale of Catalyst Technologies at an attractive valuation
Catalyst Technologies is a global leader in licensing process technology and
supplying catalysts. It has leading positions in syngas - methanol, ammonia,
hydrogen and formaldehyde - and a strong sustainable technologies portfolio.
Catalyst Technologies is targeting high growth, high return opportunities in
the decarbonisation of fuels and chemical value chains.
We have delivered significant commercial wins and partnerships, and developed
a pipeline of more than 150 sustainable technologies projects that is expected
to deliver long-term profitable growth as the world transitions to net zero.
The sale to Honeywell for an enterprise value of £1.8 billion on a cash and
debt-free basis, implying a multiple of 13.3x 2024/25 EV/EBITDA¹, fully
reflects the highly attractive long-term growth prospects of Catalyst
Technologies, including the delivery of its substantial sustainable
technologies project pipeline.
After deducting one-off payments and associated costs of c.£0.2 billion, this
implies total net proceeds of c.£1.6 billion (subject to customary closing
adjustments). We intend to return
£1.4 billion of these proceeds to shareholders following completion. The
remaining c.£0.2 billion of total net proceeds will be retained for general
corporate purposes. We expect to provide a further update on the mechanism and
timing of shareholder return prior to completion. Completion is expected by
the first half of calendar year 2026.
Notes:
1. Transaction multiple of 13.3x EBITDA is based on an agreed adjusted 2024/25
EBITDA of £136 million for the standalone Catalyst Technologies business. The
underlying EBITDA of the Catalyst Technologies business in 2024/25, as
reported, is £119 million (comprising £92 million of underlying operating
profit, plus underlying depreciation and amortisation of £27 million.)
JM will be a more highly focused, lean and agile business
Following the agreed sale of Catalyst Technologies, JM will be a more highly
focused, lean and agile business, centred around Clean Air and PGM Services.
These businesses have leading market positions, underpinned by our strong
heritage and expertise in PGMs (platinum group metals), combined with a fully
circular business model based on our world-class refining capabilities and our
ability to manage PGMs for our customers.
We have a clear strategy to drive sustainable value creation from these core
businesses. As we
re-shape JM and create a leaner organisation, we are committed to driving a
step change in cash generation. Our renewed focus on cost leadership and cash
generation will support materially enhanced shareholder returns. We will
maintain a disciplined capital allocation framework targeting 1.0 to 1.5x net
debt to EBITDA¹ over the medium-term.
Clean Air - a leading global player in a large and durable addressable market
In Clean Air, we aim to be a lasting partner providing world-leading
technology to support our customers and reduce harmful emissions. We remain
focused on driving continued margin improvement to support significant cash
generation in the medium to long-term.
Clean Air is serving a durable market with expectations for increased
longevity of the internal combustion engine (ICE). Over the past three years,
we have seen a global slowdown in battery electric vehicle (BEV) penetration
and the regulatory environment has also supported ICE longevity. Together
these dynamics are driving medium to long-term upside for Clean Air versus
previous market forecasts.
We continue to make good progress in winning new business. Our win rate in
heavy duty diesel in 2024/25 was 100%², demonstrating the strength of our
technology leadership in this resilient market. In addition, our win rates
have increased in light duty gasoline, where we are being selective and
targeting the most profitable business, including in the growing hybrid
segment. Looking ahead, we are prioritising long-term relationships with key
customers, aiming to be their supplier of choice and lasting partner. Beyond
this, we are applying our leading technology and strong market positions to
win business in Clean Air Solutions - our emissions control growth business
which manufactures products for emerging applications such as hydrogen ICE,
backup generators for data centres and CO(2) capture.
Alongside our focus on the top line, we continue to drive efficiency in Clean
Air. In the year, we improved our margin by 120 basis points, driven by
additional cost savings and further optimisation of our manufacturing
footprint as we reduced the number of production lines by 20%. We are reducing
our overheads, targeting an additional 20% reduction in divisional R&D and
SG&A spend by the end of 2025/26, with continued consolidation of our
manufacturing footprint and reduced production lines. Alongside ongoing
operational and commercial excellence initiatives, we expect these actions to
drive margin improvement to 14-15% by 2025/26 and into the range of 16-18% by
2027/28.
Through our continued focus on efficiency and in a more durable internal
combustion engine market, in 2027/28, we expect Clean Air sales of more than
£2 billion (of which c.90% of the business is already won) and an operating
margin in the range of 16-18%. We expect at least £2.1 billion of further
cash to be delivered by 2030/31³, with significant cash flow beyond then.
Notes:
1. Net debt to EBITDA target was previously 1.5 to 2.0 times.
2. Based on sales won as a percentage of sales bid on, from 1(st) April 2024 to
31(st) March 2025.
3. Delivered £2.4bn of cash cumulatively in the four years since 2021/22. Cash
target of at least £4.5 billion from
1(st) April 2021 to 31(st) March 2031, pre-tax and post restructuring costs.
PGM Services - the world's largest secondary refiner of PGMs and global
liquidity hub
PGMs have been the backbone of JM for over 200 years. PGM Services underpins
the group, providing a foundational PGM ecosystem and deep technical
expertise. We are the largest secondary refiner of PGMs globally (by volume),
the global liquidity hub for PGMs¹ and experts in converting PGMs into high
value products.
With their unique properties, PGMs are critical to many high-performance
applications today. As new applications emerge beyond the internal combustion
engine, we expect the overall value pool of PGM demand to increase over the
medium to long-term. As part of our Products business, we are converting PGMs
into high value products for a wide range of industries such as agrochemicals,
pharmaceuticals and defence.
We are the world's largest secondary refiner of PGMs, with demand for
secondary (recycled) metal forecast to increase over the medium-term. We are
currently managing our ageing PGM refinery in the UK and investing in a new,
world-class refinery to replace this existing asset. Our investment is on
budget and on track to be operational by the end of 2026/27. We have detailed
plans to de-risk the start-up of our new refinery including progressive
ramp-up metal by metal, extensive pilot scale testing and a dedicated team
focusing on operational readiness, commissioning and start-up. This
investment, which will secure a leadership position in PGMs for decades, will
deliver significant efficiency, resilience, safety and sustainability
improvements. We expect a working capital benefit as faster cycle times enable
the unwind of our refinery backlog.
Over the next couple of years, until our new PGM refinery is fully
operational, we expect increased maintenance costs relating to our current
ageing refinery as well as lower metal recoveries. In addition we will incur
dual-running costs and higher depreciation costs from 2026/27 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% and strong cash generation². With stable PGM
prices anticipated, we continue to expect this business to deliver at least
low single digit CAGR in operating profit over the medium to long-term.
Hydrogen Technologies - a leader in fuel cells and electrolyser components
Hydrogen is critical to the energy transition. With our decades of experience
in fuel cells and our strong technical capabilities in PGM chemistry and
catalysis, Hydrogen Technologies is well positioned for this long-term growth
opportunity. Since late 2023, development of the green market has slowed
significantly, driven by decelerating momentum around regulatory incentives,
lack of hydrogen infrastructure, and high cost compared to incumbent
technologies. Reflecting the market slowdown, we have adapted our strategy. We
took action to reduce cost and are focused on reducing investment whilst
maintaining long-term growth optionality. In the year, we recognised a £134
million impairment of Hydrogen Technologies due to the further slowdown of the
energy transition and the corresponding slower transition to hydrogen fuel
cell and electrolyser technologies.
We continue to expect Hydrogen Technologies to reach operating profit
breakeven by the end of 2025/26 and be cash flow positive in 2026/27³.
Hydrogen Technologies will continue to be reported as a separate business.
Notes:
1. Global liquidity hub for PGM sponge (powder).
2. Assumes broadly constant precious metal prices.
3. Defined as underlying operating profit plus depreciation and amortisation
(EBITDA), less capital expenditure and net working capital movements.
Growth optionality from existing assets
Whilst we carve out Catalyst Technologies and transition the group to a more
highly focused and leaner business with higher cash generation, we are focused
on driving performance in our core businesses - Clean Air and PGM Services. We
also have longer term growth optionality across the group through Clean Air
Solutions (within Clean Air), PGM Products (within PGM Services) and Hydrogen
Technologies (reported separately). Clean Air Solutions manufactures products
for emissions control systems in emerging applications such as hydrogen ICE,
backup generators for data centres and CO(2) capture. PGM Products is a leader
in converting PGMs into high value products, with growth from new applications
such as PGM based life science technology catalysts, and our leading Hydrogen
Technologies business makes high performance components for use in hydrogen
fuel cells and electrolysers. Importantly, these potentially high growth
opportunities are extensions of our existing core businesses; they leverage
our core technology and use existing assets which means capex requirements are
minimal.
A step change in sustainable cash generation
We are pivoting towards a cash-focused business model which will deliver
materially enhanced shareholder returns. This is underpinned by a high
performance culture driving rigorous cost control, materially lower capex and
significant working capital benefits.
Cumulative capital expenditure is expected to be c.£500 million for the three
year period to 2027/28, excluding Catalyst Technologies. This includes Clean
Air capital expenditure of
less than £40 million per year, c.£100 million for the completion of the new
PGM refinery to be incurred largely in 2025/26 and 2026/27, and Hydrogen
Technologies capital expenditure of no more than £5 million per year.
Following the divestment of Catalyst Technologies and the completion of our
new PGM refinery, capital expenditure will reduce to c.£120 million in
2027/28 which is mainly focused on maintenance and operational improvement. We
expect capex to depreciation in the range of 0.8 to 1.0x in 2027/28 (compared
with 2.0x in 2024/25).
We expect to drive material improvement in working capital of around £250
million across the group by 2027/28. This partly reflects the decommissioning
of our old PGM refinery, and working capital release from the new refinery due
to faster cycle times, continuous operations and increased capacity enabling
better management of peak flows. In addition, there is opportunity to drive
additional improvement in non-precious metal working capital which will start
to come through in 2025/26. These working capital improvements will help to
drive higher return on capital employed, which we expect to reach 20% over the
medium-term.
We expect to generate annualised sustainable free cash flow of at least £250
million in 2027/28 and beyond. Reflecting our focus on improved cash
generation and return on capital, the Group's executive remuneration schemes
have been updated to reflect a higher weighting towards these financial
targets.
Highly disciplined capital allocation framework delivering attractive
shareholder returns
The board has established a balanced and disciplined capital allocation
framework, following a detailed review and input from the Investment
Committee. This framework is designed to optimise cash returns to shareholders
whilst maintaining a strong balance sheet. We will target a leverage ratio of
1.0 to 1.5x net debt to EBITDA which the board believes is an appropriate
range based on our financial profile.
Going forward, priorities for uses of capital will be:
· Organic investment: focused on maintenance and operational improvement capex,
following the PGM refinery upgrade
· Shareholder returns: committed to growing annual cash returns to shareholders
from at least £130 million for 2025/26, equivalent to the total dividend for
2024/25¹, to at least £200 million for 2026/27 and beyond. Our current
intention is for these cash returns to be delivered through ordinary dividends
for 2025/26, and be broadly equally weighted between dividends and share
buybacks for 2026/27 and beyond.
· Bolt-on acquisitions only considered if we see highly compelling opportunities
in our core areas
What JM will deliver by 2027/28
JM will become a highly streamlined group, with a compelling investment
proposition focused on delivering sustained strong cash generation and
attractive ongoing cash returns to shareholders. JM will be a more focused,
lean and efficient business centred around two core businesses, Clean Air and
PGM Services. By 2027/28 we expect to deliver:
· At least mid single digit CAGR in pro-forma operating profit² from 2024/25
· Annualised sustainable free cash flow of at least £250 million driven by cost
savings, lower capex and improved working capital
· Cash returns of at least £200 million per annum to shareholders
Notes:
1. 2024/25 total ordinary dividend of 77.0 pence per share.
2. Underlying operating profit excluding Catalyst Technologies and Value
Businesses was (£296 million in 2024/25).
Milestones overview
In May 2024, we announced 10 new milestones for the two years to 2025/26
across key areas: winning customers, building capability and transforming the
business. Despite significant headwinds created by the slowdown in the energy
transition and overall market volatility, we have made good progress against
the milestones with a target date of 31(st) March 2025.
· Delivered £200 million transformation cost savings, in line with 2024/25
target
· Implemented JM Global Solutions for cost effective business processes, in line
with target
· ICCA (International Council of Chemical Associations) process safety event
severity rate of 0.82 was slightly behind our target of 0.80
Whilst our process severity rate was slightly behind our target, the rate has
reduced significantly from 0.88 in 2023/24, due to an improved governance
process for our high risk process safety scenarios and a strengthened focus on
process safety at key production facilities.
New milestones to 2027/28
As we re-shape JM following the sale of Catalyst Technologies, we have updated
our strategic milestones to 2027/28.
Financial
· Increase Clean Air underlying operating margin to 16-18% by end of 2027/28
· Achieve operating profit breakeven and positive cash flow in Hydrogen
Technologies¹
Operational
· Carve out Catalyst Technologies following agreed sale²
· Operate new world-class PGM refinery by end of 2026/27
· Improve customer net promoter score³ to >52 by end of 2025/26
Sustainability
· Improve ICCA process safety event severity rate of 0.60 by end of 2026/27⁴
· Increase employee engagement score to at least 7.3 by end of 2025/26⁵
· Reduce scope 1 and 2 CO₂e emissions by 40% by end of 2026/27⁶
Notes:
1. 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.
2. Completion expected by the first half of calendar year 2026.
3. 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: 52 (without Catalyst Technologies target: >41, baseline:
41).
4. ICCA - International Council of Chemical Associations. 2024/25 baseline: 0.82.
(without Catalyst Technologies target: 0.60, baseline: 0.78).
5. March 2025 baseline: 7.2 (without Catalyst Technologies target: at least 7.2,
baseline: 7.1)
6. Metric tonnes of greenhouse gases. 2019/20 baseline: 402,185 tonnes CO(2)
equivalents (without Catalyst Technologies target: 57% reduction, baseline:
247,609).
Performance summary for the year ended 31(st) March 2025¹
In the year, underlying operating profit - excluding the impact of divestments
and PGM prices - grew 6%, in line with guidance. Our performance was mainly
driven by self-help actions, including £80 million cost savings from our
£200 million group transformation programme. Average PGM prices remained
broadly stable in the year, with a small adverse impact to underlying
operating profit of £6 million.
Clean Air underlying operating profit grew 3% and margin expanded 120 basis
points to 11.8% (1H: 10.4%, 2H: 13.2%). Benefits from our ongoing excellence
and transformation programme more than offset the impact of lower sales in a
challenging global automotive market. PGM Services delivered a significantly
stronger second half as expected (1H: £51 million and 2H: £98 million). The
half-on-half improvement was driven by higher sales, increased metal
recoveries and further efficiencies. Catalyst Technologies delivered strong
underlying operating profit growth of 24% and achieved a margin of 13.8%.
Performance was underpinned by strong growth in Licensing and higher first
fill Catalyst volumes. In Hydrogen Technologies, despite lower sales, we
delivered a significantly lower operating loss of £39 million reflecting
rigorous cost control and strengthened commercial excellence as we recognised
revenue from fulfilled contractual obligations.
On a reported basis, operating profit increased from £249 million in the
prior year to £538 million reflecting a £482 million profit on disposal,
principally Medical Device Components which completed in the first half. This
was partly offset by £329 million of major impairment and restructuring
charges, comprising an impairment charge of £217 million following a review
of assets in the year, and restructuring charges of £112 million. The
impairment charge of £217 million included a
£134 million impairment to Hydrogen Technologies reflecting the further
slowdown in the transition to hydrogen fuel cell and electrolyser
technologies. There was also a £27 million impairment in PGM Services
following a strategic review of the China refining plant and also our exit
from the fuel cell market in China. We also recognised a £27 million
impairment primarily of Clean Air assets as the business continues to
consolidate its existing capacity and £29 million impairment to IT assets.
The restructuring charges of £112 million mainly related to group wide
transformation programme and divisional restructuring. Further details are
included in the financial review on
page 22.
We have a strong balance sheet, with net debt of £799 million as at 31(st)
March 2025 compared to £951 million as at 31(st) March 2024. Net debt to
EBITDA was 1.4 times.
Free cash flow was £521 million, compared to £189 million in the prior year.
This largely reflects net proceeds from the disposal of Medical Device
Components. Excluding the impact of divestments, free cash flow² was £36
million (1H: negative £185 million; 2H: £221 million), representing cash
conversion³ of 9%. In the year, we returned £388 million to shareholders via
dividends (£138 million) and share buyback (£250 million).
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 2024/25 results
converted at 2023/24 average rates. In 2024/25, the translational impact of
exchange rates on group sales and underlying operating profit was an adverse
impact of £58 million and £11 million respectively.
2. Net cash flow from operating activities after net interest paid, net purchases
of non-current assets and investments, dividends received from joint ventures
and associates and the principal elements of lease payments, adjusted for the
impact of the disposal of Value Businesses.
3. Cash conversion defined as free cash flow² as a percentage of underlying
operating profit.
Summary of underlying operating results
Unless otherwise stated, commentary refers to performance at constant FX
rates¹. Percentage changes in the tables are calculated on rounded numbers.
Sales Year ended % change % change,
31(st) March
constant FX rates
(£ million)
2025 2024
Clean Air 2,319 2,581 -10 -8
PGM Services 464 462 - +1
Catalyst Technologies 669 578 +16 +17
Hydrogen Technologies 60 71 -15 -15
Eliminations (79) (114) n/a n/a
Sales excluding Value Businesses 3,433 3,578 -4 -2
Value Businesses² 37 326 n/a n/a
Total sales 3,470 3,904 -11 -10
Underlying operating profit Year ended % change % change,
(£ million)
31(st) March
constant FX rates
2025 2024
Clean Air 273 274 - +3
PGM Services 149 164 -9 -8
Catalyst Technologies 92 75 +23 +24
Hydrogen Technologies (39) (50) n/a n/a
Corporate (87) (82) n/a n/a
Underlying operating profit excluding Value Businesses 388 381 +2 +5
Value Businesses² 1 29 n/a n/a
Total underlying operating profit 389 410 -5 -2
Reconciliation of underlying operating profit Year ended
to operating profit
31(st) March
(£ million)
2025 2024
Underlying operating profit 389 410
Profit / (loss) on disposal of businesses³ 482 (9)
Major impairment and restructuring charges³ (329) (148)
Amortisation of acquired intangibles (4) (4)
Operating profit 538 249
Notes:
1. Growth at constant rates excludes the translation impact of foreign exchange
movements, with 2024/25 results converted at 2023/24 average rates. In
2024/25, the translational impact of exchange rates on group sales and
underlying operating profit was an adverse impact of £58 million and £11
million respectively.
2. Includes Battery Materials, Battery Systems and Medical Device Components
which are all now disposed.
3. For further detail on these items please see page 22.
Second half performance
Unless otherwise stated, commentary refers to performance at constant FX
rates¹. Percentage changes in the tables are calculated on rounded numbers.
Sales 2H 2H % change % change,
constant FX rates
(£ million) 2024/25 2023/24
Clean Air 1,154 1,295 -11 -9
PGM Services 257 232 +11 +12
Catalyst Technologies 333 296 +13 +14
Hydrogen Technologies 40 34 +18 +18
Eliminations (37) (56) n/a n/a
Sales excluding Value Businesses 1,747 1,801 -3 -1
Value Businesses² 1 136 n/a n/a
Total sales 1,748 1,937 -10 -8
Underlying operating profit 2H 2H % change % change,
(£ million)
constant FX rates
2024/25 2023/24
Clean Air 152 150 +1 +4
PGM Services 98 86 +14 +16
Catalyst Technologies 42 40 +5 +8
Hydrogen Technologies (13) (24) n/a n/a
Corporate (45) (37) n/a n/a
Underlying operating profit excluding Value Businesses 234 215 +9 +12
Value Businesses² (1) 15 n/a n/a
Total underlying operating profit 233 230 +1 +4
Notes:
1. Growth at constant rates excludes the translation impact of foreign exchange
movements, with 2024/25 results converted at 2023/24 average rates. In
2024/25, the translational impact of exchange rates on group sales and
underlying operating profit was an adverse impact of £58 million and £11
million respectively.
2. Includes Battery Materials, Battery Systems and Medical Device Components
which are all now disposed.
Summary of 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 and Value Businesses (divested). Unless otherwise stated,
commentary refers to performance at constant FX rates¹. Percentage changes in
the tables are calculated on rounded numbers.
Sales Year ended % change % change,
31(st) March
constant FX rates
(£ million)
2025 2024
Clean Air 2,319 2,581 -10 -8
PGM Services 464 462 - +1
Hydrogen Technologies 60 71 -15 -15
Eliminations (79) (114) n/a n/a
Sales (pro-forma) 2,764 3,000 -8 -6
Catalyst Technologies 669 578 +16 +17
Value Businesses² 37 326 n/a n/a
Total sales 3,470 3,904 -11 -10
Underlying operating profit Year ended % change % change,
(£ million)
31(st) March
constant FX rates
2025 2024
Clean Air 273 274 - +3
PGM Services 149 164 -9 -8
Hydrogen Technologies (39) (50) n/a n/a
Corporate (87) (82) n/a n/a
Underlying operating profit (pro-forma) 296 306 -3 -
Catalyst Technologies 92 75 +23 +24
Value Businesses² 1 29 n/a n/a
Total underlying operating profit 389 410 -5 -2
Notes:
1. Growth at constant rates excludes the translation impact of foreign exchange
movements, with 2024/25 results converted at 2023/24 average rates. In
2024/25, the translational impact of exchange rates on group sales and
underlying operating profit was an adverse impact of £58 million and £11
million respectively.
2. Includes Battery Materials, Battery Systems and Medical Device Components
which are all now disposed.
Business reviews
Clean Air
Resilient performance and materially improved margin despite a challenging
market
· Sales down 8% mainly reflecting the decline in global vehicle production
across both light and heavy duty
· Underlying operating profit increased 3% and margin expanded 120 basis points
to 11.8% with a significant improvement half on half (1H: 10.4% and 2H:
13.2%). This mainly reflected ongoing operational excellence and
transformation benefits
· Delivered around £400 million of cash from Clean Air in 2024/25, with a
cumulative £2.4 billion¹ in the four years since 2021/22. On track to
deliver at least £2.1 billion of further cash by 2030/31²
Year ended % change % change,
31(st) March
constant FX rates
2025 2024
£ million £ million
Sales
Light duty diesel 1,049 1,094 -4 -2
Light duty gasoline 480 533 -10 -8
Heavy duty diesel 790 954 -17 -16
Total sales 2,319 2,581 -10 -8
Underlying operating profit 273 274 - +3
Underlying operating profit margin 11.8% 10.6%
EBITDA margin 14.8% 13.5%
Reported operating profit 234 237
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 year, global vehicle production declined across both light and heavy
duty. Light duty ICE vehicle production was weaker across all key regions. In
Europe, the decline reflected lower consumer demand in a weaker macroeconomic
environment, while in North America the market was impacted by high inventory
levels. In China, the continued penetration of battery electric vehicle sales
drove lower light duty ICE production.
The heavy duty market was weaker in all key regions, with Europe experiencing
the strongest decline reflecting subdued demand due to challenging economic
conditions. China market production was impacted by the weaker macro
environment. In North America, Class 8 truck production declined, impacted by
high inventory levels. Demand is expected to recover in 2026 driven by
cyclical truck replacement and supported by OEMs building inventory in
anticipation of an early pre-buy related to new EPA27 (Environmental
Protection Agency) legislation.
Notes:
1. At actual metal prices.
2. Cash target of at least £4.5 billion from 1(st) April 2021 to 31(st) March
2031, pre-tax and post restructuring costs.
Performance commentary
Sales were down 8%. This mainly reflected the challenging market backdrop
which saw global vehicle production decline across both light and heavy duty,
particularly in Europe.
Sales
Light duty diesel
In light duty diesel, sales declined 2%, significantly outperforming the
global market which saw a material decline due to continued shifts in consumer
behaviour towards gasoline, including hybrids. By region, we saw good sales
growth in Asia, but this was more than offset by a decline in Europe whilst
the Americas was broadly flat.
We saw good growth in Asia as our largest customers in Japan and India
outperformed their respective markets. In Europe, we outperformed the strongly
declining market due to the ramp-up of a customer platform, as well as better
platform mix. In the Americas, our performance was slightly ahead of the
market, largely driven by outperformance of one of our customers.
Light duty gasoline
In light duty gasoline, sales declined 8%, underperforming the global market
which saw a modest decline. This largely reflects our performance in Europe,
where sales were impacted by underperformance of a customer platform, and a
weaker platform mix in China. In North America, historical platform losses
were partly offset by the ramp up of other customer platforms.
Heavy duty diesel
Heavy duty diesel sales were down 16%, with declines across all key regions
against a backdrop of a challenging market. In Europe, we underperformed the
market which declined materially, largely reflecting customer
underperformance. In Asia, our performance was mainly driven by China where
the market is increasingly competitive. We experienced market share losses and
the underperformance of some of our customers, as well as lower pricing. In
the Americas, we underperformed the market, largely reflecting our regional
mix. Our sales are heavily weighted towards the North American Class 8 truck
market which declined, versus the South American market which grew strongly.
We underperformed the Class 8 market, driven by underperformance of one of our
customers.
In stationary emissions control (our Clean Air Solutions business), we saw
sales growth driven by growing demand in marine and backup diesel and natural
gas engine applications.
Underlying operating profit
Clean Air delivered a resilient performance. Despite challenging market
conditions and lower sales, underlying operating profit grew 3% and operating
margin expanded 120 basis points to 11.8%. This reflected benefits from our
continued focus on footprint rationalisation, reduction of overheads and
operational excellence.
Cash generation
In the year, we delivered around £400 million of cash¹. In the four years
since 2021/22, we have delivered a cumulative £2.4 billion¹ of cash, of
which around one fifth relates to precious metal prices.
Notes:
1. At actual metal prices.
PGM Services
A significantly stronger second half as expected
· Sales grew 1% in the year, with a significant sequential improvement in the
second half mainly reflecting higher sales in our refining business and
increased metal recoveries
· Underlying operating profit down 8%, with a significant sequential improvement
in the second half as expected, driven by higher sales and cost efficiencies
(1H: £51 million and 2H: £98 million)
Year ended % change % change,
31(st) March
constant FX rates
2025 2024
£ million £ million
Sales
PGM Services 464 462 - +1
Underlying operating profit 149 164 -9 -8
Underlying operating profit margin 32.1% 35.5%
EBITDA margin 38.1% 42.0%
Reported operating profit 67 149
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
Sales grew 1% in the year, with a significantly improved second half
performance mainly reflecting higher sales in our refining businesses. In
refining, we benefited from higher volumes from industrial customers as well
as metal recoveries linked to our asset renewal programme. This was partly
offset by softness in the auto scrap recycling market.
In our products business, sales were slightly down overall year-on-year.
Whilst we saw higher volumes from some of our industrial, pharmaceutical and
agrochemical customers, this was offset by lower demand from the auto sector.
In our trading business we had lower sales year-on-year, as PGM markets
experienced lower volumes and reduced price volatility. Average PGM prices
have normalised over the past 18-24 months and remained broadly stable in the
period.
Underlying operating profit
Underlying operating profit was down 8%. Following a weak first half
performance, we delivered a significant sequential improvement in underlying
operating profit in the second half as expected (1H: £51 million and 2H: £98
million.) This reflected higher sales (increased refining volumes and higher
metal recoveries) as well as efficiencies as we optimised our cost base.
Catalyst Technologies
Strong sales and profit growth, and further progress in sustainable
technologies
· Sales up 17% with good growth in Catalysts driven by higher first fill
volumes, and strong growth in Licensing
· Won nine large scale projects in our sustainable technologies portfolio since
1(st) April 2024, on track against our strategic milestone to win 20
additional projects by 2025/26
· Underlying operating profit grew 24% and margin expanded 80 basis points to
13.8% driven by a strong contribution from Licensing and higher Catalyst
volumes
Year ended % change % change,
31(st) March
constant FX rates
2025 2024
£ million £ million
Sales
Catalysts 563 518 +9 +10
Licensing 106 60 +77 +77
Total sales 669 578 +16 +17
Underlying operating profit 92 75 +23 +24
Underlying operating profit margin 13.8% 13.0%
EBITDA margin 17.8% 17.3%
Reported operating profit 86 70
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 were up 17% with good growth in Catalysts - which represents the
majority of sales - and strong growth in Licensing. In particular, we
delivered a good performance in China, with significant new plant builds in
recent years driving higher first fill volumes in Catalysts and strong growth
in our existing Licensing portfolio. In our sustainable technologies
portfolio, sales almost trebled.
Catalysts: good growth driven by first fills
In Catalysts, sales grew 10% driven by higher first fill volumes as new plants
came onstream, primarily in China. We also saw increased refill volumes driven
by the restart of production at one of our plants following an extended
shutdown, as well as new business wins in methanol. These drivers more than
offset normalised demand in formaldehyde following a strong prior year, and a
weaker mix in additives.
Licensing: strong growth in our existing and sustainable technologies
portfolios
Licensing sales - which can be lumpy in nature - were up 77% on the prior
year. We delivered strong growth in our existing core technology portfolio in
China. In sustainable technologies, sales almost trebled as we recognised
initial income from previously announced project wins in low carbon hydrogen
and sustainable fuels.
In the year, we won nine new large scale projects in our sustainable
technologies portfolio, tracking well against our strategic milestone of 20
wins in the two years to the end of 2025/26:
· A large scale low carbon hydrogen project in Europe
· A waste-to-methanol project in Europe
· HIF Global's Paysandú e-methanol plant in Uruguay
· ETFuels' e-methanol plant in Texas, US
· Reolum's La Robla Nueva Energia e-methanol project in Spain
· Willis Sustainable Fuels' sustainable aviation fuel project in Teesside, UK
· SunGas Renewables' Beaker Lake bio-methanol plant in Louisiana, US
· DG Fuels' second sustainable aviation fuel facility - located in Nebraska, US
· A sustainable methanol project in China
Taking into account previously announced wins, we have secured 19 sustainable
technologies projects globally since 1(st) April 2022, highlighting the
strength of our technology offering and market positioning. Of these, we are
actively working on 17 projects which together are worth more than £500
million in sales over five years, subject to project completion.
We have a healthy pipeline of more than 150 sustainable technologies projects.
To support our project wins and pipeline of opportunities, we increased our
engineering capacity by 26% in the year, well on track against our target of
30% by the end of 2025/26 (31(st) March 2024 baseline).
Underlying operating profit
Underlying operating profit grew 24% to £92 million and margin expanded 80
basis points to 13.8%. This was largely driven by a strong contribution from
higher margin Licensing and higher Catalyst volumes.
Sale of Catalyst Technologies
Following today's announcement, we expect the agreed sale of Catalyst
Technologies to Honeywell to complete by the first half of calendar year 2026.
Hydrogen Technologies
Significantly lower operating loss benefiting from rigorous cost control
· Sales declined 15% due to lower demand following a slowdown in the development
of the green hydrogen market and customer de-stocking in the first half
· Significantly lower operating loss of £39 million reflected continued action
to reduce costs and strengthened commercial excellence. Operating loss in the
second half halved compared to the first half; on track to achieve breakeven
by the end of 2025/26
· Reduced investment in line with the pace of market development; with
sufficient manufacturing capacity in the UK, no further growth investment
planned and only low maintenance capex from 2025/26
Year ended % change % change,
31(st) March
constant FX rates
2025 2024
£ million £ million
Sales
Hydrogen Technologies 60 71 -15 -15
Underlying operating loss (39) (50) n/a n/a
Underlying operating loss margin n/a n/a
Reported operating loss (184) (60)
In Hydrogen Technologies, we provide performance-defining components across
the value chain for fuel cells and electrolysers, including catalyst coated
membranes (CCMs). Our ambition is to be the market leader in CCMs, focusing on
PEM (proton exchange membrane) technology.
Performance commentary
Sales
Sales were down 15% to £60 million, primarily driven by lower electrolyser
sales. This reflected customer de-stocking in the first half and a slowdown in
the pace of development of the green hydrogen market driven by decelerating
momentum around regulatory incentives, lack of hydrogen infrastructure and
high cost compared to incumbent technologies.
In fuel cells, the volume decline was mostly offset by strengthened commercial
excellence as we recognised revenue from fulfilled contractual obligations.
We continue to make good progress diversifying our customer base through
strategic partnerships. In the year, we signed three new partnerships with
leading market players, including a long-term collaboration with Bosch to
develop and produce catalyst coated membranes for fuel cell stacks.
Underlying operating loss
Underlying operating loss of £39 million was significantly lower than the
prior year, driven by rigorous cost control and strengthened commercial
excellence as we recognised revenue from fulfilled contractual obligations.
As we adapted our strategy to reflect the pace of market development, we took
action to reduce costs, including reducing headcount by over 30%. We also
continued to improve our manufacturing efficiency, increasing production
yields from our plant in Swindon, UK. 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 £87 million, an increase of £5 million from the prior
year, largely reflecting higher inflation and professional fees.
Notes:
1. Cash flow defined as underlying operating profit plus depreciation and
amortisation (EBITDA), less capital expenditure and net working capital
movements.
Financial review
Research and development (R&D)
R&D spend was £193 million in the year, representing c.5% of sales
excluding precious metals. This was down from £204 million in the prior year,
largely driven by reduced R&D spend in Clean Air, and in Hydrogen
Technologies reflecting the slowdown in the pace of development of the green
hydrogen market.
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 84% of the non-sterling denominated underlying operating profit in
the year ended 31(st) March 2025, were:
Share of 2024/25 Average exchange rate % change
non-sterling denominated
underlying operating profit Year ended
31(st) March
2025 2024
US dollar 22% 1.28 1.26 +2
Euro 44% 1.19 1.16 +3
Indian rupee 10% 108 104 +4
Chinese renminbi 8% 9.21 9.01 +2
For the year, the impact of exchange rates decreased sales by £58 million and
underlying operating profit by £11 million.
If average exchange rates for May 2025 month to date (£:US$ 1.33, £:€
1.19, £:INR 114, £:RMB 9.59) are maintained throughout the remainder of the
year ending 31(st) March 2026, foreign currency translation will have an
adverse impact of c.£5 million 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 £0.9 million,
£1.9 million, £0.2 million and £0.3 million, respectively.
Efficiency savings
In the year, we delivered c.£80 million of savings through our group
transformation programme announced in May 2022 and incurred cash costs of
c.£55 million. This marks the completion of the programme, with cumulative
benefits in line with our £200 million target. Total associated cash costs to
deliver the programme were c.£130 million (including £30 million of capex),
in line with our guidance.
£ million Savings delivered Associated cash costs
to 31(st) March 2025
incurred to 31(st) March 2025
Transformation programme (announced in May 2022) 200 130
Items outside underlying operating profit
Non-underlying income / (charge) Year ended
31(st) March
2025 2024
£ million £ million
Profit / (loss) on disposal of businesses 482 (9)
Major impairment and restructuring charges (329) (148)
Amortisation of acquired intangibles (4) (4)
Total 149 (161)
There was a charge of £329 million relating to major impairment and
restructuring costs, comprising impairment charges of £217 million and £112
million of restructuring costs. The impairment charge of £217 million
includes:
· £134 million impairment to Hydrogen Technologies reflecting the further
slowdown in the transition to hydrogen fuel cell and electrolyser
technologies, cessation of construction of a plant in the US due to lower
demand forecasts, and exit from the fuel cell market in China
· £27 million in PGM Services following a strategic review of the China
refining plant and also our exit from the fuel cell market in China
· £27 million impairment primarily of Clean Air assets as the business
continues to consolidate its existing capacity
· £29 million impairment to IT assets
The restructuring costs of £112 million related to our group wide
transformation programme and divisional restructuring.
The £482 million profit on disposal of businesses largely relates to the
disposal of our Medical Device Components business which completed on 1(st)
July 2024.
Finance charges
Net finance charges in the year amounted to £55 million, down from £82
million in the prior year. The decline of £27 million largely reflects a £10
million benefit from hedging instruments, an £8 million movement relating to
interest on tax provisions and an £8 million metal interest benefit.
Taxation
The tax charge on underlying profit before tax for the year ended 31(st) March
2025 was £71 million, an effective underlying tax rate of 21.3%, broadly in
line with the prior year (2023/24: 20.8%)
The effective tax rate on reported profit for the year ended 31(st) March 2025
was 23.3%. This represents a tax charge of £113 million, compared with £56
million in the prior year.
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 31(st) March 2025, the group's net post-employment benefit position, was a
surplus of
£203 million. The cost of providing post-employment benefits in the year was
£39 million, down from £53 million in the prior year driven by a £14
million past service credit.
Capital expenditure
Capital expenditure was £376 million¹ in the year, 2.1 times depreciation
and amortisation. A key project in the year was investment in our new
world-class PGM refinery.
Strong balance sheet
Net debt as at 31(st) March 2025 was £799 million, a decrease from £951
million at
31(st) March 2024 and £783 million at 30(th) September 2024. Net debt is £17
million higher when post tax pension deficits are included. The group's net
debt (including post tax pension deficits) to EBITDA was 1.4 times (31(st)
March 2024: 1.6 times, 30(th) September 2024:
1.4 times), which was slightly below our target range.
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 £202 million as at 31(st) March 2025 (31(st) March 2024: £197
million, 30(th) September 2024: £197 million).
Free cash flow and working capital
Free cash flow was £521 million in the year, compared to £189 million in
2023/24, primarily driven by net proceeds from the disposal of Medical Device
Components. Excluding the impact of divestments, free cash flow² was £36
million, representing underlying cash conversion³ of 9%.
Excluding precious metal, average working capital days to 31(st) March 2025
increased to 62 days compared to 60 days to 31(st) March 2024.
Going concern
The directors have reviewed a range of scenario forecasts for the group and
consider it appropriate to adopt the going concern basis of accounting in
preparing these preliminary accounts.
As at 31(st) March 2025, the group maintains a strong balance sheet with
around £1.9 billion of available cash and undrawn committed facilities. Free
cash flow was strong in the year at £521 million and net debt reduced by
£152 million. Net debt at 31(st) March 2025 was
£799 million at 1.4 times net debt (including post tax pension deficits) to
underlying EBITDA which was just below our target range.
While inflation has been decreasing and interest rates have started to fall,
significant headwinds remain due to ongoing global auto sector weakness,
persistent geopolitical tensions and political uncertainty in the US,
particularly about tariffs. Despite these challenges, the group demonstrated
resilience during the period, with underlying operating profit (at constant
exchange rate and excluding the impact of divestments) growing
mid-single digit. For the purposes of assessing going concern, we have
revisited our financial projections using the latest budget for our base case
scenario. 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.
Notes:
1. Capital expenditure of £373 million as reported in the Consolidated Statement
of Cash Flows. Difference reflects movements for capital accruals.
2. Net cash flow from operating activities after net interest paid, net purchases
of non-current assets and investments, dividends received from joint ventures
and associates and the principal elements of lease payments, adjusted for the
impact of the disposal of Value Businesses.
3. Cash conversion defined as free cash flow² as a percentage of underlying
operating profit.
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 10% drop in
sales. For PGMS and Catalyst Technologies, it also assumed a reduction in
sales and associated operating profit based on adverse scenarios using
external and internal market insights.
The group has a robust funding position comprising a range of long-term debt
and a £1 billion five year committed revolving credit facility newly secured
in April 2025 and maturing in April 2030. There was £874 million of cash held
in money market funds or placed on deposit with highly rated banks. Of the
existing loans, £260 million of term debt and £40 million of other bank
loans maturing between August 2024 and June 2025 were re-financed in December
2024 when the group issued c.£300 million of loan notes in the USPP market. A
further
£109 million of USPP debt will mature in the next 15 months. We assume no
refinancing of this debt in our going concern modelling. As a long time,
highly rated issuer in the US private placement market, 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 the base and
severe-but-plausible scenarios. The group also has a number of additional
sources of funding available including uncommitted metal lease facilities that
support precious metal funding. Whilst we would fully expect to be able to
utilise the metal lease facilities, they are excluded from our going concern
modelling.
In the base case and severe but plausible scenarios, the group has sufficient
headroom against committed facilities and key financial covenants are not in
breach during the going concern period. Only in the unlikely event of all the
additional risks identified above being overlaid on top of the severe but
plausible trading scenario is there a very small breach of the financial
covenants. This could be easily mitigated by reducing capital expenditure,
renegotiating payment terms or reducing future dividend distributions. To give
further assurance on liquidity, we have also undertaken a reverse stress test
on our base case for full year to March 2026 and March 2027 to identify what
additional or alternative scenarios and circumstances would threaten our
current financing arrangements. This shows that we have headroom against
either a further decline in profitability well beyond the severe-but-plausible
scenario, or a significant increase in borrowings, or a significant increase
in interest charges. Furthermore, as mentioned above, the group has other
mitigating actions available which it could utilise to protect headroom. The
directors have also considered forecasts which reflect the impact of the sale
of the Catalyst Technologies business.
Having considered the scenarios outlined above, the directors consider it
appropriate to adopt the going concern basis of accounting in preparing the
preliminary announcement.
Consolidated Income Statement
for the year ended 31(st) March 2025
2025 2024
(unaudited) (audited)
Notes £m £m
Revenue 2,3 11,674 12,843
Cost of sales 2 (10,775) (11,916)
Gross profit 899 927
Distribution costs (107) (119)
Administrative expenses (403) (398)
Profit / (loss) on disposal of businesses 12 482 (9)
Amortisation of acquired intangibles 4 (4) (4)
Major impairment and restructuring charges 5 (329) (148)
Operating profit 4 538 249
Finance costs (142) (146)
Investment income 87 64
Share of profits / (losses) of associates 3 (3)
Profit before tax 486 164
Tax expense (113) (56)
Profit for the year 373 108
pence pence
Earnings per ordinary share
Basic 6 211.8 58.6
Diluted 6 211.2 58.3
Consolidated Statement of Total Comprehensive Income
for the year ended 31(st) March 2025
2025 2024
(unaudited) (audited)
Notes £m £m
Profit for the year 373 108
Other comprehensive income / (expense)
Items that will not be reclassified to the income statement in subsequent
years
Remeasurements of post-employment benefit assets and liabilities 13 37 (68)
Fair value losses on equity investments at fair value through other
comprehensive income (2) (7)
Tax on items that will not be reclassified to the income statement (8) 18
Total items that will not be reclassified to the income statement 27 (57)
Items that may be reclassified to the income statement
Exchange differences on translation of foreign operations (82) (79)
Amounts charged to hedging reserve (38) (1)
Fair value gains on net investment hedges 7 4
Tax on above items taken directly to or transferred from equity 10 1
Total items that may be reclassified to the income statement in subsequent (103) (75)
years
Other comprehensive expense for the year (76) (132)
Total comprehensive income / (expense) for the year 297 (24)
Consolidated Statement of Financial Position
as at 31(st) March 2025
2025 2024
(unaudited) (audited)
Notes £m £m
Assets
Non-current assets
Property, plant and equipment 8 1,411 1,436
Right-of-use assets 53 40
Goodwill 347 353
Other intangible assets 9 288 301
Investments in associates 71 71
Investments at fair value through other comprehensive income 38 40
Other receivables 10 98 104
Derivative financial instruments 4 49
Deferred tax assets 135 128
Post-employment benefit net assets 13 238 153
Total non-current assets 2,683 2,675
Current assets
Inventories 1,011 1,211
Taxation recoverable 15 10
Trade and other receivables 10 1,532 1,718
Cash and cash equivalents 898 542
Derivative financial instruments 55 53
Assets classified as held for sale - 127
Total current assets 3,511 3,661
Total assets 6,194 6,336
Liabilities
Current liabilities
Trade and other payables 11 (1,984) (2,209)
Lease liabilities (6) (8)
Taxation liabilities (45) (75)
Cash and cash equivalents ─ bank overdrafts (24) (12)
Borrowings (333) (110)
Derivative financial instruments (14) (11)
Provisions (69) (63)
Liabilities classified as held for sale - (35)
Total current liabilities (2,475) (2,523)
Non-current liabilities
Borrowings (1,301) (1,339)
Lease liabilities (40) (24)
Deferred tax liabilities (4) (2)
Employee benefit obligations 13 (38) (39)
Derivative financial instruments (9) (10)
Provisions (26) (17)
Trade and other payables 11 (6) (2)
Total non-current liabilities (1,424) (1,433)
Total liabilities (3,899) (3,956)
Net assets 2,295 2,380
Equity
Share capital 197 215
Share premium 148 148
Treasury shares (10) (17)
Other reserves (51) 36
Retained earnings 2,011 1,998
Total equity 2,295 2,380
The accounts were approved by the Board of Directors on 22(nd) May 2025 and
signed on its behalf by:
Directors
L Condon
R Pike
Consolidated Statement of Cash Flows
for the year ended 31(st) March 2025
2025 2024
(unaudited) (audited)
Notes £m £m
Cash flows from operating activities
Profit before tax 486 164
Adjustments for:
Share of (profits) / losses of associates (3) 3
Profit on disposal of businesses (482) -
Depreciation 134 144
Amortisation 53 48
Impairment losses 219 70
Profit on sale of non-current assets (1) (2)
Share-based payments 7 5
Decrease in inventories 187 396
Decrease in receivables 156 89
Decrease in payables (256) (288)
Increase / (decrease) in provisions 15 (7)
Contributions in excess of employee benefit obligations charge (42) (10)
Changes in fair value of financial instruments 9 (10)
Net finance costs 55 82
Disposal costs (18) -
Income tax paid (138) (92)
Net cash inflow from operating activities 381 592
Cash flows from investing activities
Interest received 78 62
Purchases of property, plant and equipment (315) (301)
Purchases of intangible assets (58) (67)
Government grant income received - 5
Proceeds from redemption of investments held at fair value through other 3 -
comprehensive income
Proceeds from sale of non-current assets 2 5
Proceeds from sale of businesses 587 41
Net cash inflow / (outflow) from investing activities 297 (255)
Cash flows from financing activities
Purchase of treasury shares (251) -
Proceeds from borrowings 318 1
Repayment of borrowings (105) (151)
Dividends paid to equity shareholders 7 (138) (141)
Interest paid (148) (137)
Principal element of lease payments (9) (11)
Net cash outflow from financing activities (333) (439)
Change in cash and cash equivalents 345 (102)
Exchange differences on cash and cash equivalents (1) (5)
Cash and cash equivalents at beginning of year 530 637
Cash and cash equivalents at end of year 874 530
Cash and deposits 463 208
Money market funds 435 334
Bank overdrafts (24) (12)
Cash and cash equivalents 874 530
Consolidated Statement of Changes in Equity
for the year ended 31(st) March 2025
Share Share Treasury Other Retained Total
capital premium shares reserves earnings equity
£m £m £m £m £m £m
At 1(st) April 2023 (audited) 215 148 (19) 118 2,077 2,539
Total comprehensive (expense) / income - - - (82) 58 (24)
Dividends paid (note 7) - - - - (141) (141)
Share-based payments - - - - 17 17
Cost of shares transferred to employees - - 2 - (13) (11)
At 31(st) March 2024 (audited) 215 148 (17) 36 1,998 2,380
Total comprehensive (expense) / income - - - (105) 402 297
Dividends paid (note 7) - - - - (138) (138)
Purchase of treasury shares (18) - - 18 (251) (251)
Share-based payments - - - - 18 18
Cost of shares transferred to employees - - 7 - (18) (11)
At 31(st) March 2025 (unaudited) 197 148 (10) (51) 2,011 2,295
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
1 Preparation
Basis of preparation and statement of compliance
The unaudited financial statements of the group have been prepared in
accordance with International Accounting Standards (IAS) in conformity with
the requirements of the Companies Act 2006. The unaudited financial statements
are also prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board
(IASB), adopted pursuant to Regulation (EC) No 1606/2002 as it applies to the
European Union, including the interpretations issued by the IFRS
Interpretations Committee. Except for the changes noted on the following page,
the accounting policies applied are set out in the Annual Report and Accounts
for the year ended 31(st) March 2024.
As at 31(st) March 2025, the group maintains a strong balance sheet with
around £1.9 billion of available cash and undrawn committed facilities. Free
cash flow was strong in the year at £521 million and net debt reduced by
£152 million. Net debt at 31(st) March 2025 was £799 million at 1.4 times
net debt (including post tax pension deficits) to underlying EBITDA which was
just below our target range.
The directors have reviewed the base case scenario forecasts for the group and
the base case scenario was stress tested to represent a severe-but-plausible
downside case scenario which modelled a material reduction in trading. The
directors have also considered forecasts which reflect the impact of the sale
of the Catalyst Technologies business as outlined in note 19.
In the scenarios outlined above, we have sufficient headroom against committed
facilities and key financial covenants are not in breach for 12 months from
the date of signing this unaudited preliminary announcement. Accordingly, the
directors consider it appropriate to adopt the going concern basis of
accounting in preparing these preliminary unaudited accounts.
These unaudited preliminary accounts for the year ended 31(st) March 2025 do
not constitute the statutory accounts for that year per section 435 of the
Companies Act 2006. The statutory accounts for the year ended 31(st) March
2025 will be finalised on the basis of the financial information presented by
the directors in this unaudited preliminary announcement and will be published
on www.matthey.com.
The announcement of the 2025 preliminary full year results was approved by the
Board of Directors on 22(nd) May 2025. The unaudited preliminary announcement
does not constitute a dissemination of the annual financial report and does
not therefore need to meet the dissemination requirements for annual financial
reports. A separate dissemination announcement in accordance with Disclosure
and Transparency Rules (DTR) 6.3 will be made when the 2025 Annual Report and
Accounts are published and made available on www.matthey.com
Statutory accounts for 2024 have been delivered to the Registrar of Companies
and those for 2025 will be delivered following the company's Annual General
Meeting.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
1 Preparation (continued)
Changes in accounting policies
Amendments to accounting standards
The IASB has issued the following amendments, which have been endorsed by the
UK Endorsement Board, for annual periods beginning on or after 1(st) January
2024:
- Amendments to IAS 1, Presentation of Financial Statements;
- Amendments to IFRS 16, Leases; and
- Amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial
Instruments: Disclosures relating to Supplier Finance Arrangements
These changes have not had a material impact on the group. The group has not
early adopted any standard, interpretation or amendment that was issued but is
not yet effective.
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 18.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
2 Segmental information
Revenue, cost of sales, sales, underlying operating profit and net assets by
business
Year ended 31(st) March 2025 (unaudited)
Clean PGM Catalyst Hydrogen Value
Air Services Technologies Technologies Businesses Corporate Eliminations Total
£m £m £m £m £m £m £m £m
Revenue from external customers 3,973 6,869 713 68 51 - - 11,674
Inter-segment revenue - 1,484 15 - - - (1,499) -
Revenue 3,973 8,353 728 68 51 - (1,499) 11,674
Cost of sales - precious metal to customers (1,654) (7,889) (59) (8) (14) - 1,420 (8,204)
Cost of sales - non-precious metal (1,856) (223) (449) (68) (32) (22) 79 (2,571)
Cost of sales (3,510) (8,112) (508) (76) (46) (22) 1,499 (10,775)
External sales 2,319 399 655 60 37 - - 3,470
Inter-segment sales - 65 14 - - - (79) -
Sales(1) 2,319 464 669 60 37 - (79) 3,470
Underlying operating profit / (loss)(1) 273 149 92 (39) 1 (87) - 389
Segmental net assets 1,345 121 801 153 - 373 - 2,793
Net debt (note 18) (799)
Post-employment benefits net assets and liabilities (note 13) 200
Deferred tax net assets 131
Provisions and non-current other payables (101)
Investments in associates 71
Net assets 2,295
(1 ) Sales and underlying operating profit are non-GAAP measures (see note
18). Sales excludes the cost of precious metals to customers. Underlying
operating profit excludes profit or loss on disposal of businesses,
amortisation of acquired intangibles and major impairment and restructuring
charges.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
2 Segmental information (continued)
Revenue, cost of sales, sales, underlying operating profit and net assets by
business
Year ended 31(st) March 2024 (audited)
Clean PGM Catalyst Hydrogen Value
Air Services Technologies Technologies Businesses Corporate Eliminations Total
£m £m £m £m £m £m £m £m
Revenue from external customers 5,219 6,490 634 85 415 - - 12,843
Inter-segment revenue 8 2,432 19 1 - - (2,460) -
Revenue 5,227 8,922 653 86 415 - (2,460) 12,843
Cost of sales - precious metal to customers (2,646) (8,460) (75) (15) (89) - 2,346 (8,939)
Cost of sales - non-precious metal (2,101) (210) (399) (87) (278) (16) 114 (2,977)
Cost of sales (4,747) (8,670) (474) (102) (367) (16) 2,460 (11,916)
External sales 2,573 374 560 71 326 - - 3,904
Inter-segment sales 8 88 18 - - - (114) -
Sales(1) 2,581 462 578 71 326 - (114) 3,904
Underlying operating profit / (loss)(1) 274 164 75 (50) 29 (82) - 410
Segmental net assets 1,351 38 718 271 178 449 - 3,005
Net debt (946)
Post-employment benefit net assets and liabilities (note 13) 114
Deferred tax net assets 126
Provisions and non-current other payables (82)
Investments in associates 71
Net assets held for sale 92
Net assets 2,380
(1 ) Sales and underlying operating profit are non-GAAP measures (see note
18). Sales excludes the cost of precious metals to customers. Underlying
operating profit excludes profit or loss on disposal of businesses,
amortisation of acquired intangibles and major impairment and restructuring
charges.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
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 available to customer
Other precious metal products Point in time On despatch or delivery
Platinum Group Metal chemical, industrial products and catalysts Point in time On despatch or delivery
Catalyst Technologies
Catalysts Chemicals / oil and gas / sustainable fuels Speciality catalysts and additives Point in time On despatch or delivery
Licensing Chemicals / oil and gas / sustainable fuels Process technology licences and engineering design services Over time / point in time(1) Based on costs incurred or at a point in time(1)
Hydrogen Technologies
Fuel Cells Technology Various Fuel cell catalyst coated membrane Point in time On despatch or delivery
Electrolysis Technology Various Electrolyser catalyst coated membrane Point in time On despatch or delivery
Value Businesses
Other Markets (excluding Diagnostic Services) Various Precious metal pastes and enamels, battery systems and products found in Point in time On despatch or delivery
devices used in medical procedures
Diagnostic Services Oil and gas Detection, diagnostic and measurement solutions Over time Based on costs incurred
(1) Revenue recognition depends on whether the licence is distinct in the
context of the contract. If a licence is assessed as distinct the judgement
around point in time or over time depends on whether it is a right to use or
right to access licence.
( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )
Metal revenue: Metal revenue relates to the sales of precious metals to
customers, either in pure form or contained within a product. Metal revenue
arises in each of the reportable segments in the Group. Metal revenue is
affected by fluctuations in the market prices of precious metals and, in many
cases, the value of precious metals is passed directly on to customers. Given
the high value of these metals this makes up a significant proportion of
revenue.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
3 Revenue (continued)
Revenue from external customers by principal products and services
Year ended 31(st) March 2025 (unaudited)
Clean Air PGM Catalyst Hydrogen Value Businesses Total
Services Technologies Technologies
£m £m £m £m £m £m
Metal 1,654 6,470 58 8 14 8,204
Heavy Duty Catalysts 790 - - - - 790
Light Duty Catalysts 1,529 - - - - 1,529
Platinum Group Metal Services - 399 - - - 399
Catalysts - - 549 - - 549
Licensing - - 106 - - 106
Fuel Cells Technology - - - 60 - 60
Battery Systems - - - - 15 15
Medical Device Components - - - - 21 21
Other - - - - 1 1
Revenue 3,973 6,869 713 68 51 11,674
Year ended 31(st) March 2024 (audited)
Clean Air PGM Catalyst Hydrogen Value Businesses Total
Services Technologies Technologies
£m £m £m £m £m £m
Metal 2,646 6,116 74 14 89 8,939
Heavy Duty Catalysts 953 - - - - 953
Light Duty Catalysts 1,620 - - - - 1,620
Platinum Group Metal Services - 374 - - - 374
Catalysts - - 500 - - 500
Licensing - - 60 - - 60
Fuel Cells Technology - - - 71 - 71
Battery Systems - - - - 194 194
Diagnostic Services - - - - 37 37
Medical Device Components - - - - 91 91
Other - - - - 4 4
Revenue 5,219 6,490 634 85 415 12,843
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
4 Operating profit
Operating profit is arrived at after charging / (crediting):
2025 2024
(unaudited) (audited)
£m £m
Research and development expenditure charged to the income statement 193 204
Less: External funding received from governments (34) (26)
Net research and development expenditure charged to the income statement 159 178
Inventories recognised as an expense 9,959 10,962
Write-down of inventories recognised as an expense 4 38
Reversal of write-down of inventories from increases in net realisable value (4) (36)
Past service credit (14) -
Depreciation of:
Property, plant and equipment 124 134
Right-of-use assets 10 10
Depreciation 134 144
Amortisation of:
Internally generated intangible assets - 1
Acquired intangibles 4 4
Other intangible assets 49 43
Amortisation 53 48
(Profit) / loss on disposal of businesses (note 12) (482) 9
Impairment losses included in administrative expenses 2 -
Impairment losses 2 -
Impairment losses and reversals included in major impairment and restructuring 217 70
charges
Restructuring charges included in major impairment and restructuring charges 112 78
Major impairment and restructuring charges (note 5) 329 148
Fees payable to the company's auditor and its associates for:
The audit of the company accounts 2.9 2.7
The audit of the accounts of the company's subsidiaries 2.4 2.4
Total audit fees 5.3 5.1
Audit-related assurance services 0.4 0.4
Total non-audit fees 0.4 0.4
Total fees payable to the company's auditor and its associates 5.7 5.5
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
5 Major impairment and restructuring charges
2025 2024
(unaudited) (audited)
£m £m
Property, plant and equipment 177 22
Right-of-use assets 1 1
Goodwill - 6
Other intangible assets 38 -
Inventories 1 29
Trade and other receivables - 12
Impairment losses and reversals 217 70
Restructuring charges 112 78
Total major impairment and restructuring charges 329 148
Major impairment and restructuring charges are shown separately on the face of
the income statement and excluded from underlying operating profit (see note
18).
Major impairments - the group's impairment charge of £217 million includes:
- £105 million impairment to the Hydrogen Technologies cash
generating unit following a strategic review of the UK business due to
indicators of a further slow-down in the transition to hydrogen fuel cell and
electrolyser technologies due to ongoing global challenges with supply chains
and investment costs for developing new infrastructure and projects.
Management's latest demand forecasts, informed by changes in published
industry projections for the broader hydrogen economy, have shown a reduction
of approximately 40% compared to internal demand forecasts prepared in the
first quarter of 2024. Uncertainty in market prospects has increased this year
with the change in US Administration, including the potential impact of
proposed US import tariffs that could significantly impact on the
manufacturing base for Hydrogen Technologies. Furthermore, clean energy
policies and legislation issued in the US under the Biden Administration such
as Clause 45V of the Inflation Reduction Act and support for 'hydrogen hubs'
across the country, are coming under increasing pressure by the new
Administration. The residual value after impairment is broadly split equally
between inventory and property, plant and equipment.
In estimating value in use, cash flows for the next three years are forecasted
based on commercial performance derived from expected customer demand and
operational performance derived from manufacturing capability in existing
plants. This shows the business moving from its current loss-making position
to being operating cash positive and reaching operating margins consistent
with historical group performance. Forecasts for years four to ten assume
growth in the business based on a compound annual growth rate that management
believes appropriately reflects the pace of development of the market over
that period and improved operational performance from integrating new
manufacturing assets already built. After this period, growth is estimated to
be in line with a long-term growth rate of 3.0%. These are key areas of
management estimate and have been considered in the context of the group's
historical performance and leading technological position in the market for
fuel cells and electrolysers but also recognising the industry challenges
around scale up given the global value chain remains in an early stage of
development. Should the market not develop as expected or meet the overall
market scale forecast by management, then this could give rise to further
impairment in future periods. Management has considered the impact of the
forecasted pace of market development and determined that if future market
growth was delayed by one year, with no mitigating actions taken, then this
would give rise to an additional impairment of approximately £40 million in
this year's financial statements. Management has assessed the sensitivity of
the long-term growth rate and operating profit margin and determined that a 1%
decrease in these assumptions would not have a material impact on the carrying
amount of the CGU.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
5 Major impairment and restructuring charges (continued)
- £67 million impairment to the group's China related assets,
comprised of:
o £22 million in Clean Air following the decision in October 2024 to close
a production line at a site in China to increase efficiency and line capacity
of the existing lines;
o £18 million in Hydrogen Technologies following the decision in February
2025 to exit the fuel cell market in China; and
o £27 million in PGM Services following a strategic review of the China
Refining plant in March 2025 driven by the decline in its cash flows and also
our exit from the fuel cell market in China.
The carrying amount of the CGU for Clean Air China's production line exceeded
its value-in-use. There were no material sensitivities applicable. In
assessing the recoverable amount of such assets, management has considered the
higher of fair value less costs to sell and value-in-use. For the Hydrogen
Technologies and PGM Services' China assets, this resulted in a nil or
immaterial recoverable value.
- £29 million to the group's intangible assets comprised of £18
million following a strategic review of and subsequent changes to our IT
operating model completed in June 2024 which identified that certain IT assets
have been impaired and £11 million for other divisional IT assets where
projects are no longer being completed. These assets have a nil residual
value. There is also a £9 million impairment to intangible assets included as
part of the Hydrogen Technologies CGU impairment outlined on the previous
page.
There was a further impairment of £11 million in Hydrogen Technologies. This
related to the cessation of construction of a plant in the United States of
America, in response to lower demand forecasts. As these assets are not
completed it was determined the fair value less costs to sell is immaterial.
The remaining impairment charge of £5 million is primarily to production
related assets in Clean Air related to our ongoing Clean Air plant
consolidation initiatives as the business continues to consolidate its
existing capacity into new and more efficient plants and the group streamlines
its operations globally.
Major restructuring - the group's transformation programme was launched in May
2022 and was designed to drive increased competitiveness, improved execution
capability and create financial headroom to facilitate further investment in
high growth areas. Restructuring charges of £112 million have been recognised
of which £43 million relates to Johnson Matthey Global Solutions, IT
transformation and running the transformation programme, with £29 million
other redundancy and implementation costs. The remaining £40 million charge
is related to our ongoing Clean Air plant consolidation initiatives and other
divisional restructuring as we streamline the group (including reducing
headcount), of which the majority is redundancy and exit costs.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
6 Earnings per ordinary share
2025 2024
(unaudited) (audited)
pence pence
Basic 211.8 58.6
Diluted 211.2 58.3
Earnings per ordinary share have been calculated by dividing profit for the
period by the weighted average number of shares in issue during the year.
Weighted average number of shares in issue 2025 2024
(unaudited) (audited)
Basic 175,966,787 183,392,681
Dilution for long term incentive plans 449,667 859,636
Diluted 176,416,454 184,252,317
7 Dividends
A final dividend of 55.00 pence per ordinary share has been proposed by the
board which will be paid on 5(th) August 2025 to shareholders on the register
at the close of business on 6(th) June 2025, subject to shareholders'
approval. The estimated amount to be paid is £92 million and has not been
recognised in these accounts.
2025 2024
(unaudited) (audited)
£m £m
2022/23 final ordinary dividend paid ─ 55.00 pence per share - 101
2023/24 interim ordinary dividend paid ─ 22.00 pence per share - 40
2023/24 final ordinary dividend paid ─ 55.00 pence per share 101 -
2024/25 interim ordinary dividend paid ─ 22.00 pence per share 37 -
Total dividends 138 141
On 3(rd) July 2024, the company announced its intention to conduct a share
buyback programme for up to a maximum consideration of £250 million. The
first tranche of the share buyback programme of up to £125 million commenced
on 3(rd) July 2024 and completed on 23(rd) September 2024. On 24(th) September
2024, the company commenced the second tranche of up to £125 million, which
completed on 12(th) December 2024. During the year the company purchased
16,302,747 shares at a cost of £250 million excluding related stamp duty. All
of these shares were cancelled.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
8 Property, plant and equipment
Assets in
Land and Leasehold Plant and the course of
buildings improvements machinery construction Total
£m £m £m £m £m
Cost
At 1(st) April 2024 (audited) 591 23 2,143 515 3,272
Additions 1 1 24 294 320
Transfers from assets in the course of construction 25 1 123 (149) -
Transfers to other intangible assets (note 9) - - (3) (18) (21)
Reclassification - - - 2 2
Disposals - (3) (21) - (24)
Exchange adjustments (12) - (34) (1) (47)
At 31(st) March 2025 (unaudited) 605 22 2,232 643 3,502
Accumulated depreciation and impairment
At 1(st) April 2024 (audited) 290 12 1,522 12 1,836
Charge for the year 15 1 108 - 124
Impairment losses (notes 4 and 5) 25 - 54 100 179
Reclassification - - 2 - 2
Disposals - (3) (21) - (24)
Exchange adjustments (5) 1 (22) - (26)
At 31(st) March 2025 (unaudited) 325 11 1,643 112 2,091
Carrying amount at 31(st) March 2025 (unaudited) 280 11 589 531 1,411
Carrying amount at 1(st) April 2024 (audited) 301 11 621 503 1,436
During the year, the group recognised impairments of £179 million. £177
million of the impairment charge is included in non-underlying expenses, with
£2 million including in administrative expenses within underlying operating
profit.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
9 Other intangible assets
Customer
contracts Patents, Acquired
and Computer trademarks research and Development
relationships software and licences technology expenditure Total
£m £m £m £m £m £m
Cost
At 1(st) April 2024 (audited) 103 536 32 30 134 835
Additions - 54 - - 2 56
Disposals - (1) - - - (1)
Transfers from property, plant and - 21 - - - 21
equipment (note 8)
Reclassification - (3) - - 3 -
Exchange adjustments - - (1) - - (1)
At 31(st) March 2025 (unaudited) 103 607 31 30 139 910
Accumulated amortisation and impairment
At 1(st) April 2024 (audited) 91 252 28 30 133 534
Charge for the year 3 48 1 - 1 53
Impairment losses (note 5) - 38 - - - 38
Disposals - (1) - - - (1)
Exchange adjustments - - (1) - (1) (2)
At 31(st) March 2025 (unaudited) 94 337 28 30 133 622
Carrying amount at 31(st) March 2025 (unaudited) 9 270 3 - 6 288
Carrying amount at 1(st) April 2024 (audited) 12 284 4 - 1 301
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
10 Trade and other receivables
2025 2024
(unaudited) (audited)
£m £m
Current
Trade receivables 925 964
Contract receivables 53 56
Prepayments 70 74
Value added tax and other sales tax receivable 116 121
Advance payments to customers 7 18
Amounts receivable under precious metal sale and repurchase agreements(1) 282 417
Other receivables 79 68
Trade and other receivables 1,532 1,718
Non-current
Advance payments to customers 40 44
Other receivables 58 60
Other receivables 98 104
(1) The fair value of the precious metal contracted to be sold by the group
under sale and repurchase agreements is £300 million (31(st) March 2024:
£398 million).
11 Trade and other payables
2025 2024
(unaudited) (audited)
£m £m
Current
Trade payables 667 655
Contract liabilities 105 177
Accruals 310 328
Amounts payable under precious metal sale and repurchase agreements(1) 669 844
Other payables 233 205
Trade and other payables 1,984 2,209
Non-current
Other payables 6 2
Trade and other payables 6 2
(1) The fair value of the precious metal contracted to be repurchased by the
group under sale and repurchase agreements is £687 million (31(st) March
2024: £797 million).
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
12 Disposals
Medical Device Components
On 1(st) July 2024, the group completed the sale of its Medical Device
Components business for an enterprise value of £555 million (£559 million on
a debt free basis after working capital adjustments). The business was
disclosed as a disposal group held for sale as at 31(st) March 2024.
Battery Systems
On 30(th) April 2024, the group completed the sale of its Battery Systems
business for an enterprise value of £14 million (£19 million on a debt free
basis after working capital adjustments). The business was disclosed as a
disposal group held for sale as at 31(st) March 2024.
Battery Materials Poland
On 24(th) July 2024, the group completed the sale of the land and buildings of
our previous Battery Materials business in Poland for £26 million. This was
disclosed as assets held for sale as at 31(st) March 2024.
All held for sale balances from the prior year financial statements were
disposed of during the current year. With the exception of £10 million of
cash in Medical Device Components not classified as held for sale at year end,
the balances below are materially consistent with the prior year held for sale
balances.
2025
Medical Device Components Other disposals Total 2024
(unaudited) (unaudited) (unaudited) (audited)
£m £m £m £m
Proceeds
Cash consideration 559 38 597 59
Cash and cash equivalents disposed (10) - (10) (18)
Net cash consideration 549 38 587 41
Disposal costs paid (12) (6) (18) (9)
Net cash inflow 537 32 569 32
Assets and liabilities disposed
Non-current assets
Property, plant and equipment 24 25 49 10
Right-of-use-assets 4 - 4 9
Goodwill 3 - 3 -
Current assets
Inventories 8 22 30 5
Trade and other receivables 18 20 38 32
Cash and cash equivalents 10 - 10 18
Deferred tax assets - 3 3 3
Current liabilities
Trade and other payables (6) (20) (26) (12)
Current income tax liabilities (1) (1) (2) -
Lease liabilities (4) - (4) -
Non-current liabilities
Lease liabilities - (1) (1) (11)
Provisions (1) (1) (2) -
Net assets disposed 55 47 102 54
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
12 Disposals (continued)
2025
Medical Device Components Other disposals Total 2024
(unaudited) (unaudited) (unaudited) (audited)
£m £m £m £m*
Cash consideration 559 38 597 59
Deferred consideration - 7 7 4
Working capital adjustments at time of disposal - - - 4
Less: carrying amount of net assets sold (55) (47) (102) (54)
Less: disposal costs (13) (9) (22) (17)
Cumulative currency translation gain / (loss) recycled from other - 2 2 (5)
comprehensive income
Profit recognised in the income statement 491 (9) 482 (9)
* The prior year comparative includes £4 million profit on disposal for
Diagnostic Services, loss of £4 million for Johnson Matthey Catalysts LLC and
profit of £nil for Battery Materials Germany, and other disposal related
costs of £9 million.
Disposal proceeds
During the period we received £3 million of proceeds relating to the
Diagnostic Services disposal in the prior year. This was recognised within
profit on disposal in the prior year.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
13 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
2025 2025 2025 2024 2024 2024
UK plan US plans Other plans UK plan US plans Other plans
(unaudited) (unaudited) (unaudited) (audited) (audited) (audited)
% % % % % %
First year's rate of increase in salaries - - 2.29 3.50 - 2.43
Ultimate rate of increase in salaries - - 2.29 3.50 - 2.20
Rate of increase in pensions in payment 2.90 - 2.00 2.90 - 2.20
Discount rate 5.90 5.40 3.73 4.90 5.20 3.30
Inflation - 2.20 2.00 - 2.20 2.20
- UK Retail Prices Index (RPI) 3.00 - - 3.10 - -
- UK Consumer Prices Index (CPI) 2.75 - - 2.75 - -
Financial information
Movements in the net post-employment benefit assets and liabilities, including
reimbursement rights, were:
UK post- US post-
UK pension - UK pension - retirement retirement
legacy cash balance medical US medical
section section benefits pensions benefits Other Total
£m £m £m £m £m £m £m
At 1(st) April 2024 (audited) 115 35 (6) 2 (10) (19) 117
Current service cost - in operating profit - (17) - (2) - (1) (20)
Past service credit - in operating profit 14 - - - - - 14
Administrative expenses - in operating profit (2) (1) - (2) - - (5)
Interest 6 1 (1) 1 - (1) 6
Remeasurements 14 19 - - - 4 37
Company contributions 28 21 1 2 - 1 53
Exchange - - - - 1 - 1
At 31(st) March 2025 (unaudited) 175 58 (6) 1 (9) (16) 203
The post-employment benefit assets and liabilities are included in the balance
sheet as follows:
2025 2025 2025 2024 2024 2024
Post- Post-
employment Employee employment Employee
benefit benefit net benefit benefit net
net assets obligations Total net assets obligations Total
(unaudited) (unaudited) (unaudited) (audited) (audited) (audited)
£m £m £m £m £m £m
UK pension - legacy section 175 - 175 115 - 115
UK pension - cash balance section 58 - 58 35 - 35
UK post-retirement medical benefits - (6) (6) - (6) (6)
US pensions 4 (3) 1 2 - 2
US post-retirement medical benefits - (9) (9) - (10) (10)
Other 1 (17) (16) 1 (20) (19)
Total post-employment plans 238 (35) 203 153 (36) 117
Other long-term employee benefits (3) (3)
Total long-term employee benefit obligations (38) (39)
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
14 Fair values
Fair value hierarchy
Fair values are measured using a hierarchy where the inputs are:
· Level 1 ─ quoted prices in active markets for identical assets or
liabilities.
· Level 2 ─ not level 1 but are observable for that asset or
liability either directly or indirectly.
· Level 3 ─ not based on observable market data (unobservable).
Fair value of financial instruments
Certain of the group's financial instruments are held at fair value. The fair
value of a financial instrument is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market
participants at the balance sheet date.
The fair value of forward foreign exchange contracts, interest rate swaps,
forward precious metal price contracts and currency swaps is estimated by
discounting the future contractual cash flows using forward exchange rates,
interest rates and prices at the balance sheet date.
The fair value of trade and other receivables measured at fair value is the
face value of the receivable less the estimated costs of converting the
receivable into cash.
The fair value of money market funds is calculated by multiplying the net
asset value per share by the investment held at the balance sheet date.
There were no transfers of any financial instrument between the levels of the
fair value hierarchy during the current or prior years.
Notes on the Preliminary Accounts
for the year ended 31st March 2025
14 Fair values (continued)
2025 2024 Fair value
hierarchy
(unaudited) (audited)
£m £m Level
Financial instruments measured at fair value
Non-current
Investments at fair value through other comprehensive income(1) 38 40 1
Derivative financial instruments - assets(2) 4 49 2
Borrowings - (3) 2
Derivative financial instruments - liabilities(2) (9) (10) 2
Current
Trade receivables(3) 158 178 2
Other receivables(4) 1 3 2
Cash and cash equivalents - money market funds 435 334 2
Cash and cash equivalents - cash and deposits 23 12 2
Derivative financial instruments - assets(2) 55 53 2
Derivative financial instruments - liabilities(2) (14) (11) 2
Financial instruments not measured at fair value
Non-current
Borrowings (1,301) (1,336) -
Lease liabilities (40) (24) -
Trade and other receivables 58 60 -
Other payables (6) (2) -
Current
Amounts receivable under precious metal sale and repurchase agreements 300 398 -
Amounts payable under precious metal sale and repurchase agreements (687) (797) -
Cash and cash equivalents - cash and deposits 440 196 -
Cash and cash equivalents - bank overdrafts (24) (12) -
Borrowings (333) (110) -
Lease liabilities (6) (8) -
Trade and other receivables 862 926 -
Trade and other payables (1,210) (1,235) -
(1) Investments at fair value through other comprehensive income are quoted
bonds purchased to fund pension deficits (£35 million) and an investment held
at fair value through other comprehensive income (£3 million).
(2) Includes forward foreign exchange contracts, forward precious metal price
contracts and currency and interest rate swaps.
(3) Trade receivables held in a part of the group with a business model to
hold trade receivables for collection or sale. The remainder of the group
operates a hold to collect business model and receives the face value, plus
relevant interest, of its trade receivables from the counterparty without
otherwise exchanging or disposing of such instruments.
(4) Other receivables with cash flows that do not represent solely the payment
of principal and interest.
The fair values are calculated using level 2 inputs by discounting future cash
flows to net present values using appropriate market interest rates prevailing
at the year end.
The fair value of financial instruments, excluding accrued interest, is
approximately equal to book value except for:
2025 2024
Carrying Fair Carrying Fair
amount value amount value
(unaudited) (unaudited) (audited) (audited)
£m £m £m £m
US Dollar Bonds 2025, 2027, 2028, 2029, 2030, 2031 and 2034 (592) (571) (507) (474)
Euro Bonds 2025, 2028, 2030, 2031, 2032, 2034 and 2036 (539) (520) (348) (320)
Sterling Bonds 2024, 2025 and 2029 (80) (74) (145) (137)
KfW US Dollar Loan 2024 - - (40) (38)
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
15 Precious metal leases
At 31(st) March 2025, precious metal leases were £202 million at year end
prices (31(st) March 2024: £197 million). Precious metal leases do not fall
under the scope of IFRS 16.
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: i) certain alleged representations said to have been made
during the course of the negotiation of the sale and purchase agreement dated
16(th) December 2021 ("SPA"); and, ii) certain warranties given in the SPA at
the time of signing. Having reviewed the claim with its advisers, the group is
of the opinion that it has a defensible position in respect of these
allegations and 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 Transactions with related parties
There have been no material changes in total compensation for key management
personnel during the year.
During the year the group had sales with associates of £9 million (2024: £17
million). The amounts owed by associates were £1 million at 31(st) March 2025
(31(st) March 2024: £1 million). No other related party transactions have
occurred which have materially affected the financial position or performance
of the group during the year.
18 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.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
18 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)(1,3) 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 Net cash flow from operating activities after net interest paid, net purchases Provides a measure of the cash the group generates through its operations and
of non-current assets and investments, proceeds from disposal of businesses, divestments, less capital expenditure.
dividends received from joint ventures and associates and the principal
element of lease payments.
Net debt (including post tax pension deficits) to underlying EBITDA Net debt, including post tax pension deficits and quoted bonds purchased to Provides a measure of the group's ability to repay its debt. The group has a
fund the UK pension (excluded when the UK pension plan is in surplus) divided long-term target of net debt (including post tax pension deficits) to
by underlying EBITDA for the same period. underlying EBITDA of between 1.5 and 2.0 times, although in any given year it
may fall outside this range depending on future plans.
(1) Key Performance Indicator
(2) Underlying profit measures are before profit or loss on disposal of
businesses, amortisation of acquired intangibles, major impairment and
restructuring charges, share of profits or losses from non-strategic equity
investments and, where relevant, related tax effects. These items have been
excluded by management as they are not deemed to be relevant to an
understanding of the underlying performance of the business.
(3) Return on capital employed is a new key performance indicator in the year
end accounts. This was included as a performance measure in the 2024
Performance Share Plan award. Inclusion of this measure incentivises delivery
of the transformation programme across JM and aligns with investor focus on
our ability to return value on investments.
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
18 Non-GAAP measures (continued)
Reconciliations to GAAP measures
Sales
2025 2024
(unaudited) (audited)
£m £m
Revenue (note 3) 11,674 12,843
Less: cost of precious metals to customers (note 3) (8,204) (8,939)
Sales 3,470 3,904
Underlying profit measures
Year ended 31(st) March 2025 (unaudited)
Operating profit Profit before tax Tax expense Profit for the year
£m £m £m £m
Underlying 389 334 (71) 263
Profit on disposal of businesses 482 482 (67) 415
Amortisation of acquired intangibles (4) (4) 1 (3)
Major impairment and restructuring charges (329) (329) 10 (319)
Share of profits of associates - 3 - 3
Non-underlying tax provisions - - 14 14
Reported 538 486 (113) 373
Year ended 31(st) March 2024 (audited)
Operating profit Profit before tax Tax expense Profit for the year
£m £m £m £m
Underlying 410 328 (68) 260
Loss on disposal of businesses (9) (9) - (9)
Amortisation of acquired intangibles (4) (4) 1 (3)
Major impairment and restructuring charges (148) (148) 15 (133)
Share of losses of associates - (3) - (3)
Non-underlying tax provisions - - (4) (4)
Reported 249 164 (56) 108
Underlying earnings per share
2025 2024
(unaudited) (audited)
Underlying profit for the year (£ million) 263 260
Weighted average number of shares in issue (millions) 176.0 183.4
Underlying earnings per share (pence) 149.2 141.3
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
18 Non-GAAP measures (continued)
Return on Capital Employed (ROCE)
2025 2024
(unaudited) (audited)
£m £m
Underlying operating profit 389 410
Average net debt 875 987
Average equity 2,338 2,459
Average capital employed 3,213 3,446
ROCE 12.1% 11.9%
Average working capital days (excluding precious metals)
2025 2024
(unaudited) (audited)
£m £m
Inventories 1,011 1,211
Trade and other receivables 1,532 1,718
Trade and other payables (1,984) (2,209)
559 720
Working capital balances classified as held for sale - 44
Total working capital 559 764
Less: Precious metal working capital (111) (174)
Working capital (excluding precious metals) 448 590
Average working capital days (excluding precious metals) 62 60
Free cash flow
2025 2024
(unaudited) (audited)
£m £m
Net cash inflow from operating activities 381 592
Interest received 78 62
Interest paid (148) (137)
Purchases of property, plant and equipment (315) (301)
Purchases of intangible assets (58) (67)
Proceeds from redemption of investments held at fair value through other 3 -
comprehensive income
Government grant income - 5
Proceeds from sale of businesses 587 41
Proceeds from sale of non-current assets 2 5
Principal element of lease payments (9) (11)
Free cash flow 521 189
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
18 Non-GAAP measures (continued)
Net debt (including post tax pension deficits) to underlying EBITDA
2025 2024
(unaudited) (audited)
£m £m
Cash and deposits 463 208
Money market funds 435 334
Bank overdrafts (24) (12)
Cash and cash equivalents 874 530
Derivative financial instruments - Cross currency and interest rate swaps - 4 15
non-current assets
Derivative financial instruments - Cross currency and interest rate swaps - 13 -
current assets
Derivative financial instruments - Cross currency and interest rate swaps - (1) -
current liabilities
Derivative financial instruments - Cross currency and interest rate swaps - (9) (10)
non-current liabilities
Borrowings - current (333) (110)
Borrowings - non-current (1,301) (1,339)
Lease liabilities - current (6) (8)
Lease liabilities - non-current (40) (24)
Lease liabilities - current - transferred to liabilities classified as held - (1)
for sale
Lease liabilities - non-current - transferred to liabilities classified as - (4)
held for sale
Net debt (799) (951)
Increase / (decrease) in cash and cash equivalents 345 (102)
Less: (Increase) / decrease in borrowings (213) 150
Less: Principal element of lease payments 9 11
Decrease in net debt resulting from cash flows 141 59
New leases, remeasurements and modifications (22) (11)
Other lease movements 1 1
Disposals 5 11
Exchange differences on net debt 11 13
Other non-cash movements 16 (1)
Movement in net debt 152 72
Net debt at beginning of year (951) (1,023)
Net debt at end of year (799) (951)
Net debt (799) (951)
Add: Pension deficits (20) (22)
Add: Related deferred tax 3 3
Net debt (including post tax pension deficits) (816) (970)
Underlying operating profit 389 410
Add back: Depreciation and amortisation excluding amortisation of acquired 183 188
intangibles
Underlying EBITDA 572 598
Net debt (including post tax pension deficits) to underlying EBITDA 1.4 1.6
2025 2024
(unaudited) (audited)
£m £m
Underlying EBITDA 572 598
Depreciation and amortisation (187) (192)
Profit / (loss) on disposal of businesses 482 (9)
Major impairment and restructuring charges (329) (148)
Finance costs (142) (146)
Investment income 87 64
Share of profits / (losses) of associates 3 (3)
Income tax expense (113) (56)
Profit for the year 373 108
Notes on the Preliminary Accounts
for the year ended 31(st) March 2025
19 Events after the balance sheet date
In May 2025, the group agreed 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 sale is expected to deliver net sale proceeds of
c.£1.6 billion to the group, subject to customary closing adjustments. We
anticipate a significant cash return to shareholders of £1.4 billion of net
sale proceeds following completion of the sale. We expect the agreed sale of
the Catalyst Technologies business to Honeywell International Inc. to complete
by the first half of calendar year 2026. Refer to page 4 for further
information on the strategic implications of this sale.
Financial Calendar
2025
5(th) June
Ex dividend date
6(th) June
Final dividend record date
17(th) July
Annual General Meeting (AGM)
5(th) August
Payment of final dividend subject to the approval of shareholders at the AGM
26(th) November
Announcement of the results for the six months ending 30(th) September 2025
Cautionary Statement
This announcement contains forward-looking statements that are subject to risk
factors associated with, amongst other things, the economic and business
circumstances occurring from time to time in the countries and sectors in
which Johnson Matthey operates. It is believed that the expectations
reflected in this announcement are reasonable but they may be affected by a
wide range of variables which could cause actual results to differ materially
from those currently anticipated.
Johnson Matthey Plc
Registered Office: 5(th) Floor, 2 Gresham Street, London EC2V 7AD
Telephone: +44 (0) 20 7269 8000
Fax: +44 (0) 20 7269 8433
Internet address: www.matthey.com
E-mail: jmpr@matthey.com
Registered in England - Number 00033774
LEI code: 2138001AVBSD1HSC6Z10
Registrars
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA
Telephone: +44(0)371 384 2344*
Internet address: www.shareview.co.uk
* Lines are open 8.30am to 5.30pm Monday to Friday excluding public holidays
in England and Wales
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