Our Performance
Johnson Matthey performed very well in 2007/08. Revenue and sales excluding precious metals were more than 20% up on last year at £7.5 billion and £1.8 billion respectively. Profit before tax and amortisation of acquired intangibles was 16% higher at £265.4 million.
| Year to 31st March | |||
|---|---|---|---|
| 2008 | 2007 | % change | |
| Revenue | £7,499m | £6,152m | +22 |
| Sales excluding precious metals | £1,750m | £1,454m | +20 |
| Profit before tax | £262.3m | £226.5m | +16 |
| Total earnings per share | 88.5p | 96.9p | -9 |
| Underlying*: | |||
| Profit before tax | £265.4m | £229.3m | +16 |
| Earnings per share | 89.5p | 82.2p | +9 |
| Dividend per share | 36.6p | 33.6p | +9 |
| *Before amortisation of acquired intangibles and profit on sale of Ceramics Division. | |||
In 2007/08 underlying earnings per share were 89.5 pence, 9% up on 2006/07. Total earnings per share were 88.5 pence, 9% below 2006/07 which included the profit on sale of Ceramics Division. Over the five years from 2003/04, underlying earnings per share have grown at a compound annual rate of 9% p.a.
In accordance with our policy of increasing dividends in line with earnings, a final dividend of 26.0 pence will be paid taking the total for the year to 36.6 pence, a 9% increase on 2006/07. Over the last five years dividends have also grown at a compound annual rate of 9%, in line with earnings.
All three of our divisions achieved good results. Our new Environmental Technologies Division increased its operating profit before amortisation of acquired intangibles by 20% to £147.3 million. Despite the slowdown in the US economy and the likely impact on the rest of the world, we believe that the division will continue to deliver strong growth over the next few years. Precious Metal Products Division’s operating profit was 20% up at £102.1 million and our new Fine Chemicals & Catalysts Division achieved good growth with sales up 13% and operating profit up 6% on a constant currency basis at £67.1 million.
The acquisition of Argillon Group, which was concluded in February 2008, is a further step in our strategy of long term investment. The acquisition complements our existing technology for controlling harmful emissions of oxides of nitrogen (NOx) from both mobile and stationary sources. With increasing concern about the effects of poor air quality on human health and the environment, legislation to control NOx emissions from an expanding range of sources will continue to tighten around the world.
Read more about Johnson Matthey’s financial performance in our Annual Report.
