Johnson Matthey PLC (LSE:JMAT) dipped in early trading after unveiling a drop in profit on the back of lower precious metal prices in the year to March.
Pre-tax profit fell 52% to £164 million over the year, the firm said on Thursday, with lower platinum metal prices dealing an £85 million blow.
Excluding the impact, Johnson Matthey said underlying profit climbed by 11% during the year.
Johnson Matthey also reported lower revenue of £12.8 billion, down 14% for the year.
Investments in hydrogen technologies are set to be scaled back in the coming year due to the slow pace of market development.
This will lead to a “significantly lower operating loss” as modest sales growth is expected in the division.
“At least” mid-single-digit growth in underlying profit was anticipated for the year ahead, with a further £5 million hit expected if platinum prices remain at current levels.
This would be driven by growth in Johnson Matthey’s clean air and catalyst technologies divisions, the company said.
A flat full-year dividend of 77p per share was declared.
Shares fell 5% in early trading before rebounding to sit 0.6% lower.