for the six months ended 30th September 1998
Six months to Year to
30.9.98 30.9.97 31.3.98
restated restated
NOTE £ million £ million £ million
Turnover 2
Continuing operations 1,761.1 1,417.9 3,248.9
Discontinued operations 1.7 7.8 18.7
------- ------- -------
Total turnover 1,762.8 1,425.7 3,267.6
Less share of joint ventures' turnover 0.0 (78.9) (128.8)
------- ------- -------
Group turnover 1,762.8 1,346.8 3,138.8
------- ------- -------
Operating profit 3
Continuing operations before exceptional items 69.3 56.5 131.9
Exceptional items 0.0 2.0 (3.2)
------- ------- -------
Total continuing operations 69.3 58.5 128.7
Discontinued operations 0.3 0.0 0.3
------- ------- -------
Group operating profit 69.6 58.5 129.0
Share of profit in joint ventures 4 0.0 4.6 5.8
Share of profit in associates 0.4 0.0 (0.1)
------- ------- -------
Total operating profit 70.0 63.1 134.7
Profit on sale - continuing operations
Part disposal of investment in AnorMED Inc. 0.0 0.0 2.6
Profit on sale - discontinued operations
Sale of Otavi Minen AG 0.0 0.0 1.8
Sale of UK Minerals 8 1.6 0.0 0.0
------- ------- -------
Profit on ordinary activities before interest 71.6 63.1 139.1
Net interest (8.4) (4.9) (9.0)
------- ------- -------
Profit on ordinary activities before taxation 63.2 58.2 130.1
Taxation 5 (13.6) (10.0) (25.2)
------- ------- -------
Profit after taxation 49.6 48.2 104.9
Equity minority interests 0.3 (0.3) (0.3)
------- ------- -------
Profit attributable to shareholders 49.9 47.9 104.6
Dividends 6 (12.4) (11.3) (38.7)
------- ------- -------
Retained profit 37.5 36.6 65.9
------- ------- -------
pence pence pence
Earnings per ordinary share 7 23.0 22.1 48.2
Diluted earnings per ordinary share 7 23.0 22.0 48.1
Earnings per ordinary share 7 20.4 18.5 44.3
excluding exceptional items
Dividend per ordinary share 6 5.7 5.2 17.8
as at 30th September 1998
30.9.98 31.3.98
£ million £ million
Fixed assets
Tangible fixed assets 457.6 476.5
Investments 4.4 4.2
-------- --------
462.0 480.7
-------- --------
Current assets
Stocks 250.2 245.5
Debtors: due within one year 307.8 293.2
Debtors: due after one year 88.9 85.5
Short term investments 6.1 2.4
Cash at bank and in hand 51.1 63.8
-------- --------
704.1 690.4
Creditors: Amounts falling due within one year
Borrowings and finance leases (120.3) (141.6)
Precious metal leases (34.9) (24.1)
Other creditors (257.0) (289.5)
-------- --------
Net current assets 291.9 235.2
Total assets less current liabilities 753.9 715.9
Creditors: Amounts falling due after more than one year
Borrowings and finance leases (145.5) (147.3)
Other creditors (2.7) (2.7)
Provisions for liabilities and charges (69.9) (66.5)
-------- --------
Net assets 535.8 499.4
-------- --------
Capital and reserves
Called up share capital 218.1 217.8
Share premium account 103.1 101.8
Revaluation reserve 8.9 15.5
Associates' reserves 1.7 1.6
Profit and loss account 197.8 156.6
-------- --------
Shareholders' funds 529.6 493.3
Equity minority interests 6.2 6.1
-------- --------
535.8 499.4
for the six months ended 30th September 1998
Six months to Year to
30.9.98 30.9.97 31.3.98
restated restated
£ million£ million£ million
Reconciliation of operating profit to
net cash inflow from operating activities
Operating profit 69.6 58.5 129.0
Depreciation charges 30.9 20.8 45.5
Loss / (profit) on sale of tangible fixed assets and investment 0.2 (1.8) (3.1)
Decrease / (increase) in owned stocks 3.2 (10.9) (12.4)
Increase in debtors (18.2) (18.3) (56.6)
(Decrease) / increase in creditors and provisions (12.6) 16.4 54.0
------- ------- -------
Net cash inflow from operating activities 73.1 64.7 156.4
------- ------- -------
Cash Flow Statement
Net cash inflow from operating activities 73.1 64.7 156.4
Returns on investments and servicing of finance (8.6) (4.4) 2.6
Taxation (12.4) (11.2) (30.8)
Purchase of tangible fixed assets and investments (41.2) (26.5) (72.4)
Proceeds on sale of tangible fixed assets and investments 21.4 3.6 7.7
Acquisitions and disposals 3.0 (0.1) (44.1)
Equity dividends paid (27.6) (23.4) (34.7)
------- ------- -------
Net cash flow before use of liquid 7.7 2.7 (15.3)
resources and financing
Management of liquid resources 3.1 8.0 9.0
Financing
Issue and purchase of ordinary share capital (2.1) 1.2 2.8
Decrease in borrowings and finance leases due within one year (13.6) (47.0) (67.1)
Increase in borrowings and finance leases due after one year 1.6 18.4 69.4
------- ------- -------
Net cash (outflow) / inflow from financing (14.1) (27.4) 5.1
------- ------- -------
Decrease in cash in the period (3.3) (16.7) (1.2)
------- ------- -------
Reconciliation of net cash flow to movement in net debt
Decrease in cash in the period (3.3) (16.7) (1.2)
Cash outflow / (inflow) from movement 12.0 28.6 (2.3)
in borrowings and finance leases
Cash inflow from term deposits included in liquid resources (3.1) (8.0) (9.0)
------- ------- -------
Change in net debt resulting from cash flows 5.6 3.9 (12.5)
Liquid resources, borrowings and 0.0 0.0 (82.3)
finance leases acquired with subsidiaries
New finance leases 0.0 (1.8) (2.1)
Translation difference 4.8 (0.6) 15.5
------- ------- -------
Movement in net debt in the period 10.4 1.5 (81.4)
Net debt at the beginning of the period (225.1) (143.7) (143.7)
------- ------- -------
Net debt at the end of the period (214.7) (142.2) (225.1)
------- ------- -------
for the six months ended 30th September 1998
Six months to Year to
30.9.98 30.9.97 31.3.98
£ million £ million £ million
Profit attributable to shareholders 49.9 47.9 104.6
Unrealised deficit on revaluation 0.0 (1.8) (1.8)
----- ----- -----
49.9 46.1 102.8
Currency translation differences (2.8) (2.4) (23.6)
on foreign currency net investments
----- ----- -----
Total recognised gains and 47.1 43.7 79.2
losses for the period
for the six months ended 30th September 1998
Six months to Year to
30.9.98 30.9.97 31.3.98
£ million £ million £ million
Profit attributable to shareholders 49.9 47.9 104.6
Dividends (12.4) (11.3) (38.7)
----- ----- -----
Retained profit 37.5 36.6 65.9
Other recognised gains and losses (2.8) (4.2) (25.4)
relating to the period
New share capital subscribed 1.6 1.2 2.8
Goodwill written back on disposals 0.0 0.0 1.0
Goodwill written off in respect of 0.0 (1.0) (16.1)
acquisitions and joint ventures
----- ----- -----
Net addition to shareholders' funds 36.3 32.6 28.2
Opening shareholders' funds 493.3 465.1 465.1
----- ----- -----
Closing shareholders' funds 529.6 497.7 493.3
----- ----- -----
for the six months ended 30th September 1998
1 Basis of preparation
The interim accounts were approved by the Board of Directors on 24th November 1998, and are unaudited but have been reviewed by the auditor. 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 1998, with the exception of changes to the presentation of the profit and loss account and cash flow statement to comply with Financial Reporting Standard (FRS) 9 - Associates and Joint Ventures, and implementation of FRS 14 - Earnings per Share. In addition, FRS 10 - Goodwill and Intangible Assets requires goodwill arising on acquisitions to be capitalised and amortised but does not require goodwill previously taken to reserves to be reinstated, and consequently no prior year adjustments have been made. Information in respect of the year ended 31st March 1998 is derived from the company's statutory accounts for that year which have been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain any statement under section 237(2) and 237(3) of the Companies Act 1985.The activity analyses of total turnover (note 2) and total operating profit (note 3) have been restated to show Catalysts and Chemicals as a new segment. This combines the chemicals business of Precious Metals Division (PMD) with Catalytic Systems Division.
2 Total turnover Six months to Year to
30.9.98 30.9.97 31.3.98
restated restated
Activity analysis £ million £ million £ million
Catalytic Systems 246.6 182.3 391.3
PMD Chemicals 84.6 79.4 168.0
------- ------- -------
Catalysts and Chemicals 331.2 261.7 559.3
Precious Metals 1,086.1 880.2 2,094.2
Electronic Materials 215.6 205.2 438.1
Ceramic Materials 128.2 70.8 157.3
------- ------- -------
1,761.1 1,417.9 3,248.9
Discontinued operations 1.7 7.8 18.7
------- ------- -------
1,762.8 1,425.7 3,267.6
------- ------- -------
Six months to Year to
30.9.98 30.9.97 31.3.98
restated restated
Geographical analysis by origin £ million £ million £ million
Europe 1,119.2 775.1 1,871.7
North America 580.9 484.7 1,015.4
Rest of the World 368.6 410.8 913.7
------- ------- -------
2,068.7 1,670.6 3,800.8
Discontinued operations 1.7 7.8 18.8
------- ------- -------
2,070.4 1,678.4 3,819.6
Less inter-segment sales (307.6) (252.7) (552.0)
------- ------- -------
1,762.8 1,425.7 3,267.6
------- ------- -------
3 Total operating profit
Six months to Year to
30.9.98 30.9.97 31.3.98
restated restated
Activity analysis £ million £ million £ million
Catalytic Systems 26.1 20.1 45.4
PMD Chemicals 9.0 8.1 19.3
----- ----- -----
Catalysts and Chemicals 35.1 28.2 64.7
Precious Metals 16.6 14.8 33.2
Electronic Materials 12.7 18.0 40.1
Ceramic Materials 11.1 4.3 9.4
Corporate (5.8) (4.9) (9.7)
----- ----- -----
69.7 60.4 137.7
Discontinued operations 0.3 0.7 1.5
Exceptional items 0.0 2.0 (4.5)
----- ----- -----
70.0 63.1 134.7
----- ----- -----
Six months to Year to
30.9.98 30.9.97 31.3.98
Geographical analysis £ million £ million £ million
Europe 25.3 17.2 43.6
North America 37.5 35.8 79.2
Rest of the World 6.9 7.4 14.9
----- ----- -----
69.7 60.4 137.7
Discontinued operations 0.3 0.7 1.5
Exceptional items 0.0 2.0 (4.5)
----- ----- -----
70.0 63.1 134.7
----- ----- -----
4 Share of profit in joint ventures
The presentation of the profit and loss account has been changed to comply with
FRS 9 - Associates and Joint Ventures, and so exceptional items and discontinued
operations have been amended to exclude the amounts which relate to joint ventures.
The amounts now included in share of profit in joint ventures are shown below,
and note 3 includes these in the appropriate segments.
Six months to Year to
30.9.98 30.9.97 31.3.98
£ million £ million £ million
Continuing operations excluding 0.0 3.9 5.9
exceptional items
Exceptional items 0.0 0.0 (1.3)
Discontinued operations 0.0 0.7 1.2
----- ----- -----
0.0 4.6 5.8
----- ----- -----
5 Taxation
Six months to Year to
30.9.98 30.9.97 31.3.98
£ million £ million£ million
United Kingdom 7.1 6.7 12.4
Overseas 10.4 7.9 19.1
Joint ventures 0.0 1.2 2.4
----- ----- -----
17.5 15.8 33.9
Taxation on exceptional restructuring 0.0 0.0 (0.4)
and rationalisation costs
Taxation on disposals 0.0 0.0 0.4
ACT saving on foreign income dividends (FIDs) (3.9) (5.8) (8.7)
----- ----- -----
13.6 10.0 25.2
----- ----- -----
The Advance Corporation Tax
(ACT) saving on paying the final dividend for 1997/98 as a FID amounted to £6.8
million gross, of this amount £2.9 million has been added to deferred tax to
reflect the change in the offsetting arrangements after 5th April 1999.
6 Dividends
An interim dividend of 5.7 pence per ordinary share will be paid on 1st February 1999 to shareholders on the register at the close of business on 11th December 1998.
7 Earnings per ordinary share
The calculation of earnings per ordinary share is based on a weighted average of 217,011,509 shares in issue (six months to 30th September 1997 - 216,879,391 shares, year to 31st March 1998 restated - 217,019,901 shares). Excluding exceptional items, the tax thereon, and the benefit of the ACT saving on FIDs earnings per ordinary share were 20.4 pence (six months to 30th September 1997 - 18.5 pence, year to 31st March 1998 - 44.3 pence). The calculation of diluted earnings per share is based on the weighted average number of shares in issue adjusted by the diluting outstanding share options.
8 Disposal of UK Minerals
The UK Minerals business was sold on 1st June 1998 for net proceeds of £5.0 million, including £1.0 million still outstanding and £0.3 million accrued costs. The profit on disposal was £1.6 million.
7th December Ex dividend date 11th December Interim ordinary dividend record date
1st February Payment of interim dividend on ordinary shares 1st April Payment of dividend on 3.5% cumulative preference shares 10th June Announcement of results for the year ending 31st March 1999 21st July 108th Annual General Meeting
Johnson Matthey Public Limited Company
Registered
Office: 2-4 Cockspur Street, Trafalgar Square, London SW1Y 5BQ
Telephone:
0171 269 8400
E-mail: jmpr@matthey.com
Registered in England - No. 33774
Registrars
Lloyds Bank Registrars, The Causeway, Worthing, West Sussex BN99 6DA
Telephone: 01903 502541