Speciality chemicals and sustainable technologies company Johnson Matthey PLC (LON: JMAT) reported stagnant sales and growth across its divisions for the first quarter, ahead of its AGM.
On a constant currency basis, sales remained flat on the whole. While their Clean Air sector saw growth driven by their European Light Duty business, this was offset by disappointing performance by Natural Resources and Health, while New Markets was described as ‘broadly flat’.
Johnson Matthey noted that performance was set to be weighted towards the second half, and that the Group’s full year guidance remained unchanged.
Despite flat sales, the Group booked £566 million in underlying profits.
“Another good year with strong sales and operating profit growth.” Our preliminary results for the year ended 31st March 2019 are out now – visit our website for the full picture. https://t.co/yIa99cakQx #JMresults pic.twitter.com/muwOOfD7pE
— Johnson Matthey (@Johnson_Matthey) May 30, 2019
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Johnson Matthey comments
The Company’s outlook read as follows,
“Our group guidance, at constant rates, for the year ended 31 March 2020 remains unchanged. We expect growth in operating performance at constant rates to be within our medium term guidance of mid to high single digit growth.”
“By sector, Clean Air performance is now expected to be slightly below the prior year. This is expected to be compensated by better performance in Efficient Natural Resources driven by actions taken to improve efficiency, and other ongoing efficiencies across the group.”
Investor relations
The Company’s shares have dipped 4.55% or 154p so far on Wednesday, down to 3,233p a share 17/07/19 14:42 BST. Deutsche Bank and Liberum Capital analysts reiterated their respective ‘Buy’ stances on Johnson Matthey stock.
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