Chemicals producer Johnson Matthey (LON:JMAT) reported that profits before tax for the year ended 31st March dropped by 31% to £320 million due to restructuring and legal fees, despite a 17% improvement in sales.
The board expressed confidence that the company would return to growth in the current year and that the firm’s electric car batteries would provide a vehicle for long-term growth. Management have also recommended that the dividend be increased by 7% to 80p. Analysts from Morgan Stanley kept a positive position and said: “for the returns and growth on offer, JM remains one of the most attractive stocks in EU chemicals, we think”.
Shares in Johnson Matthey were 3,461p at 14:00 BST, a 1.88% rise over the opening price.