Johnson Matthey PLC (LSE:JMAT) said the outlook for the full year has improved although it remains at the vagaries of moving metals prices.
The catalysts maker, which was recently relegated from the FTSE 100 and saw its shares scrape a decade low, now expects “at least” high single-digit growth in operating performance at constant precious metals prices and constant currency; an improvement on its previously guidance for at least mid-single digit growth.
This new outlook was underpinned by transformation benefits of around £55 million in the financial year, the company said, and it remains on track to deliver in excess of £150 million annualised savings by end of 2024/25.
For the six months ended September, revenue fell 11% to £6.53 billion from £7.33 billion the year prior, with sales from continuing operations down 4% to £1.97 billion from £2.05 billion before.
Lower average precious metals prices affected PGM Services, partly offset by strong growth in Hydrogen Technologies and further progress in Catalyst Technologies.
Underlying operating profit dipped 19% to £180 million from £222 million, with the dividend left unchanged at 22p.
Johnson Matthey said whilst precious metals prices have stabilised recently, it remains difficult to predict how they may develop.
It explained that assuming prices remain at their current level for the remainder of the financial year, there would be an adverse impact of around £80 million on full-year operating performance compared with the prior year.
Shares in the group, which last month fell below 1,500p for the first time since 2009, were up 2% to above 1,520p in early trading.