Johnson Matthey conducting a ‘strategic review’ ahead of possible sale
Johnson Matthey (LON:JMAT), the speciality chemicals and sustainable technologies company, announced on Friday that it is considering offloading its health division, as the firm seeks to focus on other areas of the business.
The FTSE 100 company confirmed that it will be conducting a “strategic review” of the health arm, which chief executive Robert MacLeod says will be aimed at maximising value for shareholders.
“We have commenced a strategic review of Health, as we continue to focus resources to maximise value for our shareholders. As the world builds back greener following the pandemic, we have an important role to play in helping society address climate change through our sustainable technologies, and we remain focused on commercialising these and delivering our growth ambitions,” said McLeod.
Johnson Matthey’s health business is said to be valued at £2bn.
The firm will post its results of the financial year in May and is expecting them to meet the top end of their expectations.
Forecasts for Johnson Matthey’s underlying profit are at £469m, which would be a fall in the same figure from a year before, however that is down in large part to disruptions caused by the pandemic.
Robert McLeod made further comments on the company’s performance throughout the year:
“In what has been an extraordinary year, I would like to thank all of our employees for their dedication and efforts throughout this time. I am very pleased with the progress we made, particularly in the second half. As a result, group operating performance for the year is expected to be around the top end of market expectations, alongside continued strong management of working capital.”
“In the year, we continued to execute our growth strategy at pace. We are driving cashflow from our more established businesses to invest in our suite of exciting sustainable technologies that will enable decarbonisation and enhance circularity, including our portfolio of eLNO battery materials and hydrogen technologies.”