ADAM COLLINS LIBERUM CAPITAL
The performance is strong and has allowed the special dividend. The company has invested over the years and now it is harvesting the rewards. Regulations on emissions have helped the business to grow. It was thought to be quite conservative but now has a relatively new chief financial officer and seems to be going in the right direction.
The company remains astutely positioned. Environmental trends are being captured, whilst geographical exposure to both the US and Asia is also playing its part. Management continues to invest, whilst a strong financial position supports both a progressive dividend policy and the announced special dividend. We say buy.
The results are comfortably clear of market expectations. This could help to alleviate concerns regarding Johnson Matthey's Eurozone exposure and cyclical end markets. But the nature of the business means that forward orders cannot be predicted. The unpredictable cost of precious metals, a business which they are also in, is a factor as well.