Interim Results
Johnson,Matthey PLC
28 November 2002
For Release at 7.00 am Thursday 28th November 2002
Interim Results for the half year ended 30th September 2002
Growth businesses drive increase in earnings in first half
Results
• Operating profit before exceptional items and goodwill amortisation up
5% to £99.3 million
• Profit before tax, exceptional items and goodwill amortisation up 3% to
£95.0 million
• Earnings per share before exceptional items and goodwill amortisation up
4% to 30.7 pence
• Interim dividend increased by 4% to 7.8 pence
Business Progress
• Good growth from Catalysts & Chemicals with profits up 7% to £48.3
million despite adverse exchange translation
• Acquisition of Synetix for £260 million will substantially strengthen
Johnson Matthey's position in the global catalyst market and provides
significant new opportunities for growth
• First phase of fuel cell component factory at Swindon complete
• Strong growth in Pharmaceutical Materials with profits up 45% to £19.0
million and all parts of the division performing well. Acquisition of
Cascade Biochem will add to new product growth
• Precious Metals' profits reduced by 13% to £25.4 million as a result of
lower average prices and subdued trading conditions for palladium and
rhodium. Platinum demand remains strong
• Colours & Coatings' profits 8% down on the first half of last year at
£13.3 million but 21% up on the second half as the benefits of the
rationalisation programme announced in January come through
Commenting on the results, Chris Clark, Chief Executive of Johnson Matthey said:
'Johnson Matthey has again delivered increases in earnings per share and
dividends. We expect the group, including a first-time contribution from the
recently acquired
Synetix business, to make continued progress year-on-year despite the weaker US
dollar and lower prices for palladium and rhodium.'
Enquiries:
Chris Clark, Chief Executive, Johnson Matthey 020 7269 8435
John Sheldrick, Group Finance Director, Johnson Matthey 020 7269 8438
Howard Lee / Laura Hickman, Gavin Anderson & Co 020 7554 1400
www.matthey.com
Report to Shareholders
Introduction
Johnson Matthey made encouraging progress in the first half of 2002/03. Both
Catalysts & Chemicals and Pharmaceutical Materials achieved good profits growth
despite adverse exchange translation. In September 2002 we reached agreement to
acquire Synetix from ICI plc which will substantially strengthen our position in
the global catalyst market. Despite the slowdown in most of the world's major
economies we continue to see good long term opportunities in our growth
businesses. We will continue to invest in research and development and new
production facilities in those parts of the group where we can see the best
prospects.
Review of Results
In the six months to 30th September 2002 Johnson Matthey's profit before tax,
exceptional items and goodwill amortisation rose by 3% to £95.0 million.
Earnings per share before exceptional items and goodwill amortisation rose by 4%
to 30.7 pence.
Total sales fell by 15% to £2.2 billion reflecting significantly lower prices
for palladium and rhodium and the lower level of trading activity in those
metals. Operating profit before exceptional items and goodwill amortisation
rose by 5% to £99.3 million.
Goodwill amortisation increased by £2.4 million to £4.8 million as a result of
the acquisitions undertaken last year. There were no exceptional items in the
first half of this year. Interest rose by £2.1 million to £4.3 million, largely
as a result of higher average borrowings.
Dividend
The interim dividend has been increased by 4% to 7.8 pence, in line with the
growth in earnings per share before exceptional items and goodwill amortisation.
Operations
Catalysts & Chemicals Division's sales fell by 30% to £526 million, largely as a
result of a sharp fall in the palladium price. Sales excluding the value of
precious metals were very close to last year at £299 million. The division's
operating profit rose by 7% to £48.3 million.
The Catalytic Systems business, which encompasses Johnson Matthey's worldwide
autocatalyst, heavy duty diesel (HDD) and stationary source emission control
business achieved good growth in profits. The market for new automobiles in the
USA remained strong in the first half and whilst the European market declined a
little, gains in market share for diesel cars helped ensure that the business
achieved good operating profit growth.
Our HDD retrofit business has doubled its sales compared to the same period last
year with large orders destined for buses in New York, Tokyo and Paris. Our
joint development programmes with original equipment customers have also
progressed, ahead of the arrival of emissions legislation in 2004/05 and
2007/08.
Chemicals experienced mixed trading conditions. Platinum group metal (pgm)
refining demand was weaker with lower palladium and rhodium prices being key
factors. Catalyst sales to the fine chemicals industry were strong but were
weaker to other end markets. Research Chemicals, our catalogue business,
achieved excellent growth, benefiting from strong results from our existing
operations and a good contribution from Avocado Research Chemicals which was
acquired in February 2002.
The Fuel Cells business has continued to make excellent progress. The first
phase of our membrane electrode assembly (MEA) manufacturing plant at Swindon
has been completed in time to supply a number of key customers who have plans to
commercialise fuel cell products in the medium term. First generation MEA
products have met our customers' performance targets and are now being supplied
to beta test units prior to commercial sales into the premium power sector.
Precious Metals Division's sales fell by 12% to £1.5 billion reflecting lower
average prices for palladium and rhodium and subdued trading activity. The
division's operating profit fell by 13% to £25.4 million. The platinum price
averaged $543 per oz in the first half, very similar to the average for same
period last year. Demand for platinum reached a new record, spurred by
increased jewellery purchases, especially from China. The use of platinum in
autocatalysts also grew, as diesel cars captured further market share in Europe
and car manufacturers continue to increase platinum usage at the expense of
palladium in response to earlier high prices.
The markets for palladium and rhodium were much less buoyant. The switch away
from palladium in autocatalysts was further exacerbated as car manufacturers
continued to run down excess inventories. Total palladium demand was down
significantly causing the price to fall 40% to an average of $339 per oz.
During the same period the rhodium price declined 50% to $840 per oz as supplies
exceeded demand. With reduced volumes and volatility, trading margins for
palladium and rhodium were subdued.
Our platinum fabrication businesses achieved further growth as strong demand
from the medical industry more than offset weaker sales of traditional products.
Profits from our gold and silver businesses were weaker reflecting continued
pressure on margins.
Colours & Coatings Division increased its sales by 1% to £132 million.
Operating profit fell by 8% to £13.3 million compared with the first half of
last year but showed a 21% increase on the second half as the benefits of the
rationalisation programme announced in January started to come through.
The Structural Ceramics sector, which sells largely to the tile industry,
achieved good sales growth but margins continued to be under pressure,
particularly in Asia due to the weakness of the dollar against the euro, and
profits were down on the first half of last year. Glass performed very well
with strong growth in sales and market share. Speciality Coatings also
performed well with continuing weakness in the tableware market offset by strong
sales into the plastics and surface coatings industries. The rationalisation
programme in Staffordshire is on track and will save approaching £4 million in
the current year and £7 million next year.
Pharmaceutical Materials Division's sales increased by 63% to £66.3 million.
This rise included a full six months' contribution from Macfarlan Smith
(Meconic) compared with three months' contribution last year. It also reflected
strong growth in all parts of the division. Operating profit rose by 45% to
£19.0 million.
The division's US manufacturing business achieved strong growth in sales and
profits benefiting from the success of the new products launched towards the end
of the last financial year. Macfarlan Smith achieved good results with strong
sales of bulk opiates. Pharm-Eco, the division's US-based contract research
business, achieved excellent growth both in contract chemistry services and also
contract manufacturing of products in clinical trials.
Finance
Exchange Rates
Exchange translation reduced the group's profits by £7.4 million compared with
last year. This included a £4.8 million impact from the South African rand,
which averaged R15.7/£ compared with R11.8/£ in the first half of last year.
The products which the group manufactures in South Africa are generally for
export and the group was able to achieve higher prices in rand which largely
compensated for this adverse translation effect.
Over 40% of the group's profits are earned in the USA. The US dollar weakened
significantly from $1.43/£ in the first half of last year to an average of $1.51
/£ for the six months to 30th September 2002. Overall, excluding the South
African rand, exchange translation reduced group profits by £2.6 million
compared with last year, largely as the result of US dollar weakness.
Interest
In the six months to 30th September 2002, the group's interest charge rose by
£2.1 million to £4.3 million. The major reason was higher average borrowings
used to finance the acquisitions and share buy-backs undertaken last year.
Funding costs for platinum rose significantly in the period reflecting high
platinum borrowing rates. Gold and silver interest fell by £1.2 million as
lease rates on those metals returned to normal levels.
Taxation
The group's tax charge for the six months period fell by £1.2 million to £28.2
million. Before exceptional items and goodwill amortisation the average tax
rate increased slightly to 29.7%.
Cash Flow
Johnson Matthey's net cash flow from operations was £115.7 million, which was
slightly ahead of last year. Capital expenditure was slightly lower than last
year at £53.4 million but this still represents 2.1 times depreciation and
reflects the group's continuing strategy of investing in its growth businesses.
The group's net cash flow was broadly neutral. The group issued £6.8 million of
promissory notes in the period relating to the purchase of Avocado Research
Chemicals Limited which was acquired at the end of last year. Despite this
acquisition expenditure, net borrowings at 30th September fell by £9.6 million
to £149.4 million as a result of favourable exchange translation. Shareholders'
funds rose to £ 848.4 million giving gearing (debt/equity) at 30th September
2002 of 18%.
The acquisition of Synetix for £260 million will be funded out of borrowings
using existing bank lines. Gearing will rise to around 50%. We intend to
refinance some of this borrowing with longer term debt at a later date.
Business Developments
Catalysts & Chemicals Division has continued to perform well and has seen a
number of important developments in the first half. Growing concerns that
emissions from diesel engines can cause health problems are driving more city
governments to require the retrofit of emission control systems to buses and
trucks. Johnson Matthey's patented continuously regenerating trap (CRT(R))
continues to win the majority of this growing business. The first signs are
also emerging that the US car manufacturers will follow the European trend and
begin to fit diesel engines into light duty vehicles in order to meet fuel
consumption targets and reduce US dependence on oil imports. These are positive
trends for Johnson Matthey's business as we have a strong position in both light
and heavy duty diesel technology.
The end of this financial year will see the completion of our three year
programme to refit all of our plants with our benchmark precision coating
process equipment. Our customers have welcomed the benefits that this
innovation has delivered in terms of raw material control as well as catalyst
performance.
On 23rd September 2002 we announced that Johnson Matthey had agreed to buy the
Synetix division of ICI for £260 million in cash. Synetix is a global catalyst
business which serves a range of market segments including ammonia, methanol,
fine chemicals, edible oils, oleochemicals, oil and gas and polymerisation.
These activities, which mainly use base metal catalysts, complement Johnson
Matthey's strong position in precious metal process catalysts for a wide range
of markets.
The catalyst industry is consolidating and Synetix is an excellent fit with our
Chemicals business, elevating Johnson Matthey to a strong second position in the
global catalyst market. The combination of these businesses provides us with
the resources and the full range of technologies to challenge for leadership of
this rapidly growing market. It also presents exciting opportunities for future
growth, especially in new and expanding market sectors such as Gas to Liquids,
manufacturing ultra clean diesel fuel from natural gas, and Chiral catalysis,
particularly for the pharmaceutical and fine chemical industries.
During the first half the Chemicals business constructed a pgm chemicals
manufacturing facility in Shanghai to serve the rapidly growing market in China.
This is currently being commissioned and has been very well received by our
customers. The new facility is adjacent to Johnson Matthey's Chinese
autocatalyst manufacturing plant, which opened in the summer of 2001 and is now
generating profits.
The first phase of our fuel cell factory investment at Swindon has been
completed to plan. This has increased our capacity to manufacture MEAs ten fold
and has significantly enhanced our process capability.
Further expenditure at Swindon has been approved by the Johnson Matthey board
and this will be spent in a phased programme over the next two years as
production orders are ramped up. The early commercial applications for fuel
cells will be in the premium niche markets of reliable and back up power and our
customers are forecasting increased numbers of sample and test stacks in 2003
and 2004, with true commercial sales in 2005.
Later in the decade other stationary market niches will begin to be exploited
and by 2010 car companies will be making fuel cell cars in limited production
runs.
On 8th November 2002 we announced the further strengthening of our important
strategic partnership with Anglo Platinum who have taken a 17.5% stake in our
fuel cell components subsidiary, Johnson Matthey Fuel Cells Limited. In return
for the 17.5% stake Anglo Platinum has contributed its share of the intellectual
property rights (IPR) and know-how developed under a long term collaboration
agreement announced in May 1993, along with a £20 million payment.
On 3rd October 2002 we announced that we had merged Precious Metals Division's
Australian gold operations with those of AGR, a gold refining joint venture
between the Western Australian government and Australian Gold Alliance Pty Ltd.
The new company, which is to be known as AGR Matthey, will focus its combined
refining operations on the former AGR site in Perth and consolidate its
fabricated product activities on the former Johnson Matthey site in Melbourne.
This rationalisation will both reduce costs and improve efficiencies. Johnson
Matthey will hold a 20% stake in the new company.
Colours & Coatings Division continues to make good progress with the
rationalisation programme in its UK business announced in January 2002. The
benefits of this programme started to come through during the first half. The
closure of its major site at Meir is on schedule for completion by the end of
the financial year.
Pharmaceutical Materials Division, which became a stand alone division in 2001
following the acquisitions of Pharm-Eco and Macfarlan Smith, continues to
perform very well. The benefits of these acquisitions to the division are
already apparent, most notably with the opportunity to manufacture morphine and
codeine at West Deptford in the US. We are expanding the business at Pharm-Eco
both through the recruitment of additional scientists to meet growing customer
demand and through investment in additional manufacturing capacity. At
Macfarlan Smith, our major project to convert the galantamine extraction
facility to the production of concentrated poppy straw, a key intermediate in
opiate production, has progressed very well and will soon be fully operational.
In October 2002 we announced the acquisition of Cascade Biochem Limited, a small
company focused on the manufacture and supply of prostaglandins and other
complex molecules as active pharmaceutical ingredients (APIs) for the
pharmaceutical industry. With its focus on low volume, high value APIs Cascade
represents an excellent fit with our existing business.
Outlook
Johnson Matthey has again delivered increases in earnings per share and
dividends. We expect the group, including a first-time contribution from the
recently acquired Synetix business, to make continued progress year-on-year
despite the weaker US dollar and lower prices for palladium and rhodium.
Consolidated Profit and Loss Account
for the six months ended 30th September 2002
-------------------------- Six months to -------------------------- Year to
30.9.02 30.9.02 30.9.02 30.9.01 30.9.01 31.3.02
Before Before
exceptional Exceptional exceptional
items and items and items and
goodwill goodwill goodwill
amortisation amortisation Total amortisation Total Total
Notes £ million £ million £ million £ million £ million £ million
Turnover 2
Continuing operations 2,246.6 - 2,246.6 2,645.8 2,645.8 4,828.9
Discontinued operations - - - 1.2 1.2 1.2
Group turnover 2,246.6 - 2,246.6 2,647.0 2,647.0 4,830.1
Operating profit 3
Continuing operations
before goodwill
amortisation 99.3 - 99.3 94.8 94.8 193.9
Goodwill amortisation - (4.8) (4.8) - (2.4) (6.8)
Continuing operations
before exceptional items 99.3 (4.8) 94.5 94.8 92.4 187.1
Exceptional items - - - - 7.2 (18.1)
Total continuing operations 99.3 (4.8) 94.5 94.8 99.6 169.0
Discontinued operations - - - (0.5) (0.5) (0.5)
Group operating profit 99.3 (4.8) 94.5 94.3 99.1 168.5
Share of profit in associates - - - 0.1 0.1 (0.1)
Total operating profit 99.3 (4.8) 94.5 94.4 99.2 168.4
Profit on sale / closure of
discontinued operations - - - - (5.6) (5.6)
Profit on ordinary activities
before interest 99.3 (4.8) 94.5 94.4 93.6 162.8
Net interest (4.3) - (4.3) (2.2) (2.2) (6.1)
Profit on ordinary activities
before taxation 95.0 (4.8) 90.2 92.2 91.4 156.7
Taxation 4 (28.2) - (28.2) (27.2) (29.4) (50.2)
Profit after taxation 66.8 (4.8) 62.0 65.0 62.0 106.5
Equity minority interests (0.2) - (0.2) (0.1) (0.1) 0.3
Profit attributable to
shareholders 66.6 (4.8) 61.8 64.9 61.9 106.8
Dividends 5 (17.0) - (17.0) (16.2) (16.2) (53.2)
Retained profit 49.6 (4.8) 44.8 48.7 45.7 53.6
pence pence pence pence pence
Earnings per ordinary share
(EPS)
Basic 6 28.5 28.2 49.0
Diluted 6 28.3 27.8 48.5
EPS before exceptional
items and goodwill
amortisation
Basic 6 30.7 29.5 60.4
Diluted 6 30.5 29.2 59.7
Dividend per ordinary share 5 7.8 7.8 7.5 7.5 24.6
Consolidated Balance Sheet
as at 30th September 2002
30.9.02 30.9.01 31.3.02
£ million £ million £ million
Fixed assets
Goodwill 176.3 160.6 182.6
Tangible fixed assets 500.0 454.5 495.1
Investments 2.2 3.5 2.7
678.5 618.6 680.4
Current assets
Stocks 397.6 357.2 414.3
Debtors: due within one year 327.6 404.4 345.2
Debtors: due after more than one year 110.3 106.1 108.8
Short term investments 15.8 17.4 16.6
Cash at bank and in hand 89.1 66.1 92.6
940.4 951.2 977.5
Creditors: Amounts falling due within one year
Borrowings and finance (85.4) (80.5) (65.8)
leases
Precious metal leases (122.1) (111.7) (131.0)
Other creditors (321.8) (376.2) (359.2)
Net current assets 411.1 382.8 421.5
Total assets less current liabilities 1,089.6 1,001.4 1,101.9
Creditors: Amounts falling due after more than one year
Borrowings and finance (153.1) (93.7) (185.8)
leases
Other creditors (0.5) (0.4) (0.4)
Provisions for liabilities and charges (84.1) (104.5) (98.1)
Net assets 851.9 802.8 817.6
Capital and reserves
Called up share capital 219.3 218.4 218.7
Share premium account 131.1 126.4 128.2
Capital redemption reserve 4.9 4.9 4.9
Associates' reserves (0.3) - (0.2)
Profit and loss account 493.4 448.6 462.1
Shareholders' funds 848.4 798.3 813.7
Equity minority interests 3.5 4.5 3.9
851.9 802.8 817.6
Consolidated Cash Flow Statement
for the six months ended 30th September 2002
Six months to Year to
30.9.02 30.9.01 31.3.02
£ million £ million £ million
Reconciliation of operating profit to
net cash inflow from operating activities
Operating profit 94.5 99.1 168.5
Depreciation and amortisation charges 29.9 25.4 55.1
Profit on disposal of tangible fixed assets and (0.1) (2.5) (1.4)
investments
Increase in owned stocks (3.6) (46.6) (83.6)
(Increase) / decrease in debtors (2.1) 12.9 73.9
(Decrease) / increase in creditors and provisions (2.9) 26.1 11.6
Net cash inflow from operating activities 115.7 114.4 224.1
Cash Flow Statement
Net cash inflow from operating activities 115.7 114.4 224.1
Dividends received from associates - - 0.1
Returns on investments and servicing of finance (4.7) (1.8) (4.9)
Taxation (18.7) (17.6) (55.8)
Capital expenditure and financial investment (58.3) (67.2) (131.0)
Acquisitions 0.1 (139.6) (143.5)
Disposals 0.9 (1.4) (2.2)
Equity dividends paid (37.1) (35.9) (52.1)
Net cash flow before use of liquid resources and (2.1) (149.1) (165.3)
financing
Management of liquid resources 12.3 12.9 0.2
Financing
Issue and purchase of share capital 1.7 (39.6) (44.1)
Increase / (decrease) in borrowings and finance 23.5 24.6 (45.9)
leases due within one year
(Decrease) / increase in borrowings due after one year (21.1) (4.5) 103.4
Net cash inflow / (outflow) from financing 4.1 (19.5) 13.4
Increase / (decrease) in cash in the period 14.3 (155.7) (151.7)
Reconciliation of net cash flow to movement in net debt
Increase / (decrease) in cash in the period 14.3 (155.7) (151.7)
Cash inflow from movement in borrowings and finance (2.4) (20.1) (57.5)
leases
Cash inflow from term deposits included in liquid (12.3) (12.9) (0.2)
resources
Change in net funds / debt resulting from cash flows (0.4) (188.7) (209.4)
Borrowings acquired with subsidiaries - (46.6) (46.8)
Loan notes issued to acquire subsidiaries (6.8) (18.7) (40.6)
New finance leases - - (4.3)
Translation difference 16.8 6.0 2.2
Movement in net funds / debt in period 9.6 (248.0) (298.9)
Net (debt) / funds at beginning of period (159.0) 139.9 139.9
Net debt at end of period (149.4) (108.1) (159.0)
Total Recognised Gains and Losses
for the six months ended 30th September 2002
Six months to Year to
30.9.02 30.9.01 31.3.02
£ million £ million £ million
Profit attributable to shareholders 61.8 61.9 106.8
Currency translation differences on foreign currency net
investments and related loans (23.8) (10.1) (8.0)
Taxation on translation differences on foreign currency 10.2 (3.2) 0.5
loans
Total recognised gains and losses relating to the period 48.2 48.6 99.3
Prior year adjustment - (43.6) (44.3)
Total gains and losses recognised since previous annual 48.2 5.0 55.0
report
Movement in Shareholders' Funds
for the six months ended 30th September 2002
Six months to Year to
30.9.02 30.9.01 31.3.02
£ million £ million £ million
Profit attributable to shareholders 61.8 61.9 106.8
Dividends (17.0) (16.2) (53.2)
Retained profit 44.8 45.7 53.6
Other recognised gains and losses relating to the period (13.6) (13.3) (7.5)
New share capital subscribed 3.5 3.9 6.1
Rollover of share options on acquisitions - - 0.7
Purchase of own shares - (45.4) (45.9)
Net movement in shareholders' funds 34.7 (9.1) 7.0
Opening shareholders' funds 813.7 807.4 806.7
Closing shareholders' funds 848.4 798.3 813.7
Notes on the Accounts
for the six months ended 30th September 2002
1 Basis of preparation
The interim accounts were approved by the Board of Directors on
26th November 2002, and are unaudited but have been reviewed by the auditors.
They do not constitute statutory accounts, but have been prepared on the basis
of the accounting policies set out in the annual report for the year ended
31st March 2002. Information in respect of the year ended 31st March 2002 is
derived from the company's statutory accounts for that year which have been
delivered to the Registrar of Companies. The auditors' report on those accounts
was unqualified and did not contain any statement under 237(2) and 237(3) of the
Companies Act 1985.
2 Group turnover
Six months to Year to
30.9.02 30.9.01 31.3.02
Activity analysis £ million £ million £ million
Catalysts & Chemicals 526.1 746.3 1,302.6
Precious Metals 1,522.6 1,729.1 3,167.4
Colours & Coatings 131.6 129.8 253.4
Pharmaceutical Materials 66.3 40.6 105.5
2,246.6 2,645.8 4,828.9
Discontinued operations - 1.2 1.2
2,246.6 2,647.0 4,830.1
Six months to Year to
30.9.02 30.9.01 31.3.02
Geographical analysis by origin £ million £ million £ million
Europe 1,491.6 1,825.1 3,304.1
North America 576.8 709.6 1,280.1
Asia 488.4 487.7 955.5
Rest of the World 129.6 154.6 271.3
2,686.4 3,177.0 5,811.0
Discontinued operations - 2.0 2.0
2,686.4 3,179.0 5,813.0
Less inter-segment sales (439.8) (532.0) (982.9)
2,246.6 2,647.0 4,830.1
Notes on the Accounts
for the six months ended 30th September 2002
3 Total operating profit
Six months to Year to
30.9.02 30.9.01 31.3.02
Activity analysis £ million £ million £ million
Catalysts & Chemicals 48.3 45.1 94.7
Precious Metals 25.4 29.3 55.9
Colours & Coatings 13.3 14.5 25.5
Pharmaceutical Materials 19.0 13.1 31.3
Corporate (6.7) (7.1) (13.6)
99.3 94.9 193.8
Discontinued operations - (0.5) (0.5)
Goodwill amortisation (4.8) (2.4) (6.8)
Exceptional items included in total operating profit - 7.2 (18.1)
94.5 99.2 168.4
Six months to Year to
30.9.02 30.9.01 31.3.02
Geographical analysis £ million £ million £ million
Europe 34.2 41.1 75.3
North America 44.1 37.8 84.6
Asia 6.1 6.9 13.3
Rest of the World 14.9 9.1 20.6
99.3 94.9 193.8
Discontinued operations - (0.5) (0.5)
Goodwill amortisation (4.8) (2.4) (6.8)
Exceptional items included in total operating profit - 7.2 (18.1)
94.5 99.2 168.4
4 Taxation
Six months to Year to
30.9.02 30.9.01 31.3.02
£ million £ million £ million
United Kingdom 10.8 11.4 24.1
Overseas 17.4 15.7 31.8
Associates - 0.1 0.1
Tax on ordinary activities before exceptional items and 28.2 27.2 56.0
goodwill amortisation
Tax on exceptional items included in total operating - 2.2 (5.2)
profit
Tax on profit on sale / closure of discontinued - - (0.6)
operations
28.2 29.4 50.2
Notes on the Accounts
for the six months ended 30th September 2002
5 Dividends
An interim dividend of 7.8 pence per ordinary share will be paid on
5th February 2003 to shareholders on the register at the close of business on
6th December 2002.
6 Earnings per ordinary share
The calculation of earnings per ordinary share is based on a weighted average of
216,714,951 shares in issue (six months to 30th September 2001 - 219,340,776
shares, year to 31st March 2002 - 217,829,287). The calculation of diluted
earnings per ordinary share is based on the weighted average number of shares in
issue adjusted by the dilutive outstanding share options and long term incentive
plan.
Before exceptional items, the tax thereon and goodwill amortisation, basic
earnings per ordinary share were 30.7 pence (six months to 30th September
2001 - 29.5 pence, year to 31st March 2002 - 60.4 pence), and diluted earnings
per ordinary share were 30.5 pence (six months to 30th September 2001 - 29.2
pence, year to 31st March 2002 - 59.7 pence).
7 Synetix
On 23rd September 2002 the group announced that it had signed an agreement to
buy the Synetix division of ICI for £260 million in cash. The majority of the
acquisition was completed on 1st November 2002, with the Indian part due to be
completed on 2nd December 2002. This will be accounted for by acquisition
accounting in the year to 31st March 2003.
Financial Calendar
2002
4th December
Ex dividend date
6th December
Interim ordinary dividend record date
2003
5th February
Payment of interim dividend on ordinary shares
5th June
Announcement of results for the year ending 31st March 2003
16th July
112th Annual General Meeting
Johnson Matthey Public Limited Company
Registered Office: 2-4 Cockspur Street, Trafalgar Square, London SW1Y 5BQ
Telephone: 020 7269 8400
Internet address: www.matthey.com
E-mail: jmpr@matthey.com
Registered in England - Number 33774
Registrars
Lloyds TSB Registrars, The Causeway, Worthing, West Sussex BN99 6DA
Telephone: 01903 502541
This information is provided by RNS
The company news service from the London Stock Exchange
Monday, 20th May 2024
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