By paying the final dividend
as a FID, Johnson Matthey will be able to utilise some of the £30.5m
unrelieved Advance Corporation Tax (ACT) which the company has
paid (and written off) in prior years. Johnson Matthey will now
be able to obtain a refund of the £5.8m of ACT paid on the FID.
For the great majority of shareholders,
payment of the dividend in the form of a FID will have no adverse
financial consequence. Certain classes of shareholder who could
continue to make use of the tax credit applying to conventional
dividends may receive slightly less income. Given the significant
benefit to Johnson Matthey's earnings, and therefore the value
of the Group, the Board believes that the payment of the final
dividend as a FID is in the best interests of the Group and its
shareholders. The dividend will be paid on 4th August 1997 in
the normal way.
The decision to proceed with
the payment of last year's final dividend as a FID should not
be treated as a guide to the nature of future dividend payments.
An explanatory letter has been
posted to all shareholders today.
Note: Shareholders are reminded
that forms of proxy, to be valid, must be lodged at the offices
of the company's registrars, Lloyds Bank Registrars, The Causeway,
Worthing, West Sussex BN99 6DB no later than 6.00pm on Monday
14th July 1997. Similarly, any variations to existing proxies
must be made in accordance with the above requirements. Shareholders
may also attend and vote in person at the Annual General Meeting
at 12 noon on Wednesday 16th July 1997 if they wish to do so.
