|| Year to 31st March
| Sales excluding precious metals
| Profit before tax
| Earnings per share
| Profit before tax
| Earnings per share
Dividend per share:
*before amortisation of acquired intangibles, major impairment and restructuring charges, profit or loss on disposal of businesses, significant tax rate changes and, where relevant, related tax effects
2013/14 in summary
- Revenue up 4% to £11.2 billion
- Sales excluding precious metals (sales) 11% ahead at £3.0 billion
- Profit before tax and earnings per share increased by 17% and 27% respectively
- Underlying profit before tax and underlying earnings per share increased by 12% and 16% respectively
- Investment in R&D of £152 million, up 12%, and total capital expenditure of £218 million, 1.7 times depreciation
- Cash flow conversion of 82% (2012/13 85%)
- Balance sheet remains strong with net debt (including post tax pension deficits) / EBITDA of 1.3 times
- Return on invested capital (ROIC) 20.8%, ahead of our long term target of 20%
- Final dividend of 45.5 pence recommended resulting in full year dividend up 10% at 62.5 pence
- Emission Control Technologies outperformed the underlying growth rate in many of its markets with sales up 13% and underlying operating profit 25% higher, benefiting from:
- An improved product mix in our European light duty vehicle catalyst business
- Continued growth in Asia
- A good performance in heavy duty diesel catalysts in Europe driven by the introduction of new legislation.
- Process Technologies' sales were 11% ahead and underlying operating profit grew by 10%:
- A good performance in its Oil and Gas businesses
- A mixed year in its Chemicals businesses with lower technology licensing revenues but good growth in catalyst sales
- The contribution of Formox which was acquired at the end of last year.
- Precious Metal Products' sales were in line with last year and underlying operating profit was 5% ahead. The division was impacted by:
- The change in our contracts with Anglo American Platinum Limited
- Lower average precious metal prices
- Continued weakness in some of its Manufacturing businesses' markets.
- Sales in Fine Chemicals grew by 5% and underlying operating profit was 10% ahead, benefiting from sales growth in its higher margin API Manufacturing business.
- New Businesses made progress with sales boosted by a full year's contribution from Johnson Matthey Battery Systems. Slight increase in underlying operating loss.
Commenting on the results, Neil Carson, Chief Executive of Johnson Matthey said:
“I am pleased to report that Johnson Matthey performed well in 2013/14, particularly in Emission Control Technologies. Sales were up by 11%, underlying earnings per share grew by 16% and the board is recommending a 10% increase in the total dividend for the year.
In 2014/15 continued growth across the company will be offset by the adverse impact of the loss of commission revenue from Anglo Platinum and by the effect of foreign currency translation, if today's exchange rates prevail. Consequently, we currently expect that the group's performance in 2014/15 will be broadly in line with 2013/14.
As Johnson Matthey approaches its third century of operation, we continue to apply our expertise in advanced materials and technology to innovate and improve solutions for customers in new and existing markets. We are committed to investing in R&D, our manufacturing capabilities and the development of our people to support the future growth of the business.
It has been a real privilege to have been Chief Executive for the last ten years of a wonderful company full of talented and dedicated people. As I step down today, I am confident that, as a world leading speciality chemicals company, Johnson Matthey is well positioned to deliver long term growth for its shareholders through the creation of value adding sustainable technologies."
Sally Jones, Director, Investor Relations and Corporate Communications
+44 20 7269 8407
David Allchurch / Tom Buchanan, Tulchan Communications
+44 20 7353 4200