Consolidated Income
Statement
for the year ended 31st
March 2024
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
Notes
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
Revenue
|
2,3
|
|
12,843
|
|
14,933
|
|
Cost of sales
|
|
|
(11,916)
|
|
(13,939)
|
|
Gross profit
|
|
|
927
|
|
994
|
|
Distribution costs
|
|
|
(119)
|
|
(117)
|
|
Administrative expenses
|
|
|
(398)
|
|
(412)
|
|
(Loss) / profit on disposal of
businesses
|
13
|
|
(9)
|
|
12
|
|
Amortisation of acquired
intangibles
|
4
|
|
(4)
|
|
(5)
|
|
Gains and losses on significant
legal proceedings
|
4
|
|
-
|
|
(25)
|
|
Major impairment and restructuring
charges
|
5
|
|
(148)
|
|
(41)
|
|
Operating profit
|
|
|
249
|
|
406
|
|
Finance costs
|
|
|
(146)
|
|
(110)
|
|
Investment income
|
|
|
64
|
|
49
|
|
Share of losses of
associates
|
|
|
(3)
|
|
(1)
|
|
Profit before tax from continuing
operations
|
|
|
164
|
|
344
|
|
Tax expense
|
|
|
(56)
|
|
(80)
|
|
Profit for the year from continuing
operations
|
|
|
108
|
|
264
|
|
Profit after tax from discontinued
operations
|
|
|
-
|
|
12
|
|
Profit for the year
|
|
|
108
|
|
276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
pence
|
|
pence
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share
|
|
|
|
|
|
|
Basic
|
6
|
|
58.6
|
|
150.9
|
|
|
Diluted
|
6
|
|
58.3
|
|
150.2
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share from continuing
operations
|
|
|
|
|
Basic
|
6
|
|
58.6
|
|
144.2
|
|
|
Diluted
|
6
|
|
58.3
|
|
143.6
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Total
Comprehensive Income
for the year ended 31st
March 2024
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
Notes
|
|
£m
|
|
£m
|
|
Profit for the year
|
|
|
108
|
|
276
|
|
Other comprehensive (expense) / income
|
|
|
|
|
|
|
|
Items that will not be reclassified to the income statement
in subsequent years
|
|
|
|
|
|
|
Remeasurements of post-employment
benefit assets and liabilities
|
14
|
|
(68)
|
|
(149)
|
|
|
Fair value losses on equity
investments at fair value through other
|
|
|
|
|
|
|
|
comprehensive
income
|
|
|
(7)
|
|
(12)
|
|
|
Tax on items that will not be
reclassified to the income statement
|
|
|
18
|
|
37
|
|
Total items that will not be reclassified to the income
statement
|
|
|
(57)
|
|
(124)
|
|
|
Items that may be reclassified to the income
statement
|
|
|
|
|
|
|
|
Exchange differences on
translation of foreign operations
|
|
|
(79)
|
|
33
|
|
|
Exchange differences on
translation of discontinued foreign operations
|
|
|
-
|
|
(32)
|
|
|
Amounts (charged) / credited to
hedging reserve
|
|
|
(1)
|
|
114
|
|
|
Fair value gains / (losses) on net
investment hedges
|
|
|
4
|
|
(10)
|
|
|
Tax on above items taken directly
to or transferred from equity
|
|
|
1
|
|
(28)
|
|
Total items that may be reclassified to the income statement
(in subsequent years)
|
|
(75)
|
|
77
|
|
Other comprehensive expense for the year
|
|
|
(132)
|
|
(47)
|
|
Total comprehensive (expense) / income for the
year
|
|
|
(24)
|
|
229
|
|
|
|
|
|
|
|
|
|
Total comprehensive (expense) / income for the year arises
from:
|
|
Continuing
operations
|
|
|
(24)
|
|
249
|
|
Discontinued
operations
|
|
|
-
|
|
(20)
|
|
|
|
|
|
(24)
|
|
229
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of
Financial Position
as at 31st March
2024
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
Notes
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
8
|
|
1,436
|
|
1,332
|
|
Right-of-use assets
|
|
|
40
|
|
49
|
|
Goodwill
|
|
|
353
|
|
364
|
|
Other intangible assets
|
9
|
|
301
|
|
287
|
|
Investments in joint ventures and
associates
|
|
|
71
|
|
75
|
|
Investments at fair value through
other comprehensive income
|
|
|
40
|
|
49
|
|
Other receivables
|
10
|
|
104
|
|
113
|
|
Interest rate swaps
|
|
|
15
|
|
20
|
|
Other financial assets
|
|
|
34
|
|
48
|
|
Deferred tax assets
|
|
|
128
|
|
121
|
|
Post-employment benefit net
assets
|
14
|
|
153
|
|
203
|
|
Total non-current assets
|
|
|
2,675
|
|
2,661
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
|
|
1,211
|
|
1,702
|
|
Taxation recoverable
|
|
|
10
|
|
12
|
|
Trade and other
receivables
|
10
|
|
1,718
|
|
1,882
|
|
Cash and cash
equivalents
|
|
|
542
|
|
650
|
|
Other financial assets
|
|
|
53
|
|
47
|
|
Assets classified as held for
sale
|
12
|
|
127
|
|
75
|
|
Total current assets
|
|
|
3,661
|
|
4,368
|
|
Total assets
|
|
|
6,336
|
|
7,029
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Trade and other
payables
|
11
|
|
(2,209)
|
|
(2,497)
|
|
Lease liabilities
|
|
|
(8)
|
|
(9)
|
|
Taxation liabilities
|
|
|
(75)
|
|
(105)
|
|
Cash and cash equivalents ─ bank
overdrafts
|
|
|
(12)
|
|
(13)
|
|
Borrowings and related
swaps
|
|
|
(110)
|
|
(155)
|
|
Other financial
liabilities
|
|
|
(11)
|
|
(27)
|
|
Provisions
|
|
|
(63)
|
|
(63)
|
|
Liabilities classified as held for
sale
|
12
|
|
(35)
|
|
(25)
|
|
Total current liabilities
|
|
|
(2,523)
|
|
(2,894)
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Borrowings and related
swaps
|
|
|
(1,339)
|
|
(1,460)
|
|
Lease liabilities
|
|
|
(24)
|
|
(31)
|
|
Deferred tax
liabilities
|
|
|
(2)
|
|
(19)
|
|
Interest rate swaps
|
|
|
(10)
|
|
(15)
|
|
Employee benefit
obligations
|
14
|
|
(39)
|
|
(41)
|
|
Provisions
|
|
|
(17)
|
|
(28)
|
|
Trade and other
payables
|
11
|
|
(2)
|
|
(2)
|
|
Total non-current liabilities
|
|
|
(1,433)
|
|
(1,596)
|
|
Total liabilities
|
|
|
(3,956)
|
|
(4,490)
|
|
Net assets
|
|
|
2,380
|
|
2,539
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Share capital
|
|
|
215
|
|
215
|
|
Share premium
|
|
|
148
|
|
148
|
|
Treasury shares
|
|
|
(17)
|
|
(19)
|
|
Other reserves
|
|
|
36
|
|
118
|
|
Retained earnings
|
|
|
1,998
|
|
2,077
|
|
Total equity
|
|
|
2,380
|
|
2,539
|
|
|
|
|
|
|
|
|
|
The accounts were approved by the
Board of Directors on 23rd May 2024 and signed on its
behalf by:
L
Condon
S
Oxley
Consolidated Statement of Cash
Flows
for the year ended 31st
March 2024
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
Notes
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Profit before tax from continuing
operations
|
|
|
164
|
|
344
|
|
Profit before tax from
discontinued operations
|
|
|
-
|
|
5
|
|
Adjustments for:
|
|
|
|
|
|
|
|
Share of losses of
associates
|
|
|
3
|
|
1
|
|
|
Profit on disposal of
businesses
|
|
|
-
|
|
(23)
|
|
|
Depreciation
|
|
|
144
|
|
151
|
|
|
Amortisation
|
|
|
48
|
|
36
|
|
|
Impairment losses
|
|
|
70
|
|
27
|
|
|
Profit on sale of non-current
assets
|
|
|
(2)
|
|
(6)
|
|
|
Share-based payments
|
|
|
5
|
|
7
|
|
|
Decrease / (increase) in
inventories
|
|
|
396
|
|
(139)
|
|
|
Decrease / (increase) in
receivables
|
|
|
89
|
|
(102)
|
|
|
Decrease in payables
|
|
|
(288)
|
|
(4)
|
|
|
(Decrease) / increase in
provisions
|
|
|
(7)
|
|
7
|
|
|
Contributions in excess of
employee benefit obligations charge
|
|
(10)
|
|
(21)
|
|
|
Changes in fair value of financial
instruments
|
|
|
(10)
|
|
22
|
|
|
Net finance costs
|
|
|
82
|
|
61
|
|
Income tax paid
|
|
|
(92)
|
|
(75)
|
|
Net cash inflow from operating activities
|
|
|
592
|
|
291
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Interest received
|
|
|
62
|
|
28
|
|
Purchases of property, plant and
equipment
|
|
|
(301)
|
|
(253)
|
|
Purchases of intangible
assets
|
|
|
(67)
|
|
(63)
|
|
Purchases of investments held at
fair value through other comprehensive income
|
|
|
-
|
|
(17)
|
|
Government grant income
received
|
|
|
5
|
|
7
|
|
Proceeds from sale of non-current
assets
|
|
|
5
|
|
8
|
|
Proceeds from sale of investments
in joint ventures
|
|
|
-
|
|
2
|
|
Proceeds from sale of
businesses
|
|
|
41
|
|
187
|
|
Net cash outflow from investing activities
|
|
|
(255)
|
|
(101)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Purchase of treasury
shares
|
|
|
-
|
|
(45)
|
|
Proceeds from
borrowings
|
|
|
1
|
|
672
|
|
Repayment of borrowings
|
|
|
(151)
|
|
(281)
|
|
Dividends paid to equity
shareholders
|
7
|
|
(141)
|
|
(141)
|
|
Interest paid
|
|
|
(137)
|
|
(94)
|
|
Principal element of lease
payments
|
|
|
(11)
|
|
(14)
|
|
Net cash (outflow) / inflow from financing
activities
|
|
|
(439)
|
|
97
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
(102)
|
|
287
|
|
Exchange differences on cash and
cash equivalents
|
|
|
(5)
|
|
4
|
|
Cash and cash equivalents at
beginning of year
|
|
|
637
|
|
346
|
|
Cash and cash equivalents at end of year
|
|
|
530
|
|
637
|
|
|
|
|
|
|
|
|
|
Cash and deposits
|
|
|
208
|
|
129
|
|
Money market funds
|
|
|
334
|
|
521
|
|
Bank overdrafts
|
|
|
(12)
|
|
(13)
|
|
Cash and cash equivalents
|
|
|
530
|
|
637
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Changes
in Equity
for the year ended 31st
March 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
|
|
|
|
|
|
|
|
Share
|
premium
|
Treasury
|
Other
|
|
Retained
|
|
Total
|
|
|
|
|
capital
|
account
|
shares
|
reserves
|
|
earnings
|
|
equity
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1st April
2022
|
|
|
218
|
148
|
(24)
|
50
|
|
2,049
|
|
2,441
|
|
Total comprehensive
income
|
|
|
-
|
-
|
-
|
65
|
|
164
|
|
229
|
|
Dividends paid (note 7)
|
|
|
-
|
-
|
-
|
-
|
|
(141)
|
|
(141)
|
|
Purchase of treasury
shares
|
|
|
(3)
|
-
|
-
|
3
|
|
(1)
|
|
(1)
|
|
Share-based payments
|
|
|
-
|
-
|
-
|
-
|
|
18
|
|
18
|
|
Cost of shares transferred to
employees
|
|
|
-
|
-
|
5
|
-
|
|
(14)
|
|
(9)
|
|
Tax on share-based
payments
|
|
|
-
|
-
|
-
|
-
|
|
2
|
|
2
|
|
At 31st March
2023
|
|
|
215
|
148
|
(19)
|
118
|
|
2,077
|
|
2,539
|
|
Total comprehensive (expense) /
income
|
|
|
-
|
-
|
-
|
(82)
|
|
58
|
|
(24)
|
|
Dividends paid (note 7)
|
|
|
-
|
-
|
-
|
-
|
|
(141)
|
|
(141)
|
|
Share-based payments
|
|
|
-
|
-
|
-
|
-
|
|
17
|
|
17
|
|
Cost of shares transferred to
employees
|
|
|
-
|
-
|
2
|
-
|
|
(13)
|
|
(11)
|
|
At 31st March 2024
|
|
|
215
|
148
|
(17)
|
36
|
|
1,998
|
|
2,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
Basis of preparation and statement of
compliance
The financial statements of the
group have been prepared on a going concern basis in accordance
with International Accounting Standards (IAS) in conformity with
the requirements of the Companies Act 2006. The financial
statements are also prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB), adopted pursuant to Regulation
(EC) No 1606/2002 as it applies to the European Union, including
the interpretations issued by the IFRS Interpretations Committee.
Except for the changes noted below, the accounting policies applied
are set out in the Annual Report and Accounts for the year ended
31st March 2023.
As at 31st March 2024,
the group maintains a strong balance sheet with around £1.5 billion
of available cash and undrawn committed facilities. Free cash flow
was strong in the year at £189 million and net debt reduced by £72
million. Net debt at 31st March 2024 was £951 million at
1.6 times net debt (including post tax pension deficits) to
underlying EBITDA which was at the lower end of our target
range
The directors have reviewed the
base case scenario forecasts for the group and are of the opinion
that the group has adequate resources to fund its operations for
the period of at least twelve months from the date of signing these
financial statements. In forming this view, the base case scenario
was stress tested to represent a severe-but-plausible downside case
scenario which modelled a material reduction in trading.
In both scenarios outlined above,
we have sufficient headroom against committed facilities and key
financial covenants are not in breach during the going concern
period. Accordingly, the directors continue to adopt the going
concern basis in preparing the financial statements.
Statutory accounts for 2023 have
been delivered to the Registrar of Companies and those for 2024
will be delivered following the company's Annual General Meeting.
The auditor, PwC, has reported on both sets of accounts. Their
reports were unqualified, did not include a reference to any
matters to which the auditors drew attention by way of emphasis
without qualifying their report and did not contain any statement
under sections 498(2) or 498(3) of the Companies Act 2006. The
accounts for the year ended 31st March 2024 were
approved by the Board of Directors on 23rd May
2024.
These accounts do not include all
the information required for full annual statements and should be
read in conjunction with the 2024 Annual Report. They are not
statutory accounts per section 435 of the Companies Act
2006.
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
1
|
Preparation (continued)
|
|
|
|
|
Changes in accounting policies
Amendments to accounting standards
The IASB has issued the following
amendments, which have been endorsed by the UK Endorsement Board,
for annual periods beginning on or after 1st January
2023:
-
Amendments to IFRS 17, Insurance Contracts;
-
Amendments to IAS 1 and IFRS Practice Statement
2;
-
Amendments to IAS 8, Accounting Policies, Changes in Accounting
Estimates and Errors; and
-
Amendments to IAS 12, Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
These changes have not had a
material impact on the group. The group has not early adopted any
standard, interpretation or amendment that was issued but is not
yet effective.
On the 19th July 2023,
the UK endorsed the amendments to IAS 12 Income Taxes, issued by the
International Accounting Standards Board on 23rd May
2023, which grants companies a temporary exemption from applying
IAS 12 to the International Tax Reform: Pillar Two Model Rules. The
group has adopted the amendments to IAS 12 and applied the
exception to recognising and disclosing information about deferred
tax assets and liabilities related to Pillar Two income
taxes.
Non-GAAP
measures
The group uses various measures to
manage its business which are not defined by generally accepted
accounting principles (GAAP). The group's management believes these
measures provide valuable additional information to users of the
accounts in understanding the group's performance. The group's
non-GAAP measures are defined and reconciled to GAAP measures in
note 19.
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
2
|
Segmental information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, sales, underlying operating profit and net assets by
business
|
|
|
|
Year ended 31st March 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clean
|
PGM
|
Catalyst
|
Hydrogen
|
Value
|
|
|
|
|
|
|
Air
|
Services
|
Technologies
|
Technologies
|
Businesses
|
Corporate
|
Eliminations
|
Total
|
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external
customers
|
5,219
|
6,490
|
634
|
85
|
415
|
-
|
-
|
12,843
|
|
|
Inter-segment revenue
|
8
|
2,432
|
19
|
1
|
-
|
-
|
(2,460)
|
-
|
|
|
Revenue
|
5,227
|
8,922
|
653
|
86
|
415
|
-
|
(2,460)
|
12,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
2,573
|
374
|
560
|
71
|
326
|
-
|
-
|
3,904
|
|
|
Inter-segment sales
|
8
|
88
|
18
|
-
|
-
|
-
|
(114)
|
-
|
|
|
Sales1
|
2,581
|
462
|
578
|
71
|
326
|
-
|
(114)
|
3,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying operating profit /
(loss)1
|
274
|
164
|
75
|
(50)
|
29
|
(82)
|
-
|
410
|
|
|
Segmental net assets
|
1,351
|
38
|
718
|
271
|
178
|
449
|
-
|
3,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt (note 19)
|
|
|
|
|
|
(946)
|
|
|
Post-employment benefits net
assets and liabilities (note 14)
|
|
114
|
|
|
Deferred tax assets
|
126
|
|
|
Provisions and non-current other
payables
|
|
|
|
|
(82)
|
|
|
Investments in
associates
|
|
|
|
|
71
|
|
|
Net assets held for sale (note
12)
|
|
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
|
|
|
|
|
|
2,380
|
|
|
Year ended 31st March 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clean
|
PGM
|
Catalyst
|
Hydrogen
|
Value
|
|
|
|
|
|
|
Air
|
Services
|
Technologies
|
Technologies
|
Businesses
|
Corporate
|
Eliminations
|
Total
|
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external
customers
|
6,273
|
7,360
|
673
|
62
|
565
|
-
|
-
|
14,933
|
|
|
Inter-segment revenue
|
-
|
3,227
|
14
|
-
|
-
|
-
|
(3,241)
|
-
|
|
|
Revenue
|
6,273
|
10,587
|
687
|
62
|
565
|
-
|
(3,241)
|
14,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales
|
2,644
|
485
|
547
|
55
|
470
|
-
|
-
|
4,201
|
|
|
Inter-segment sales
|
-
|
85
|
13
|
-
|
-
|
-
|
(98)
|
-
|
|
|
Sales1
|
2,644
|
570
|
560
|
55
|
470
|
-
|
(98)
|
4,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying operating profit /
(loss)1
|
230
|
257
|
51
|
(45)
|
40
|
(68)
|
-
|
465
|
|
|
Segmental net assets
|
1,784
|
(2)
|
680
|
114
|
175
|
515
|
-
|
3,266
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
|
|
|
|
|
|
(1,023)
|
|
|
Post-employment benefit net assets
and liabilities (note 14)
|
|
162
|
|
|
Deferred tax assets
|
|
102
|
|
|
Provisions and non-current other
payables
|
|
(93)
|
|
|
Investments in joint ventures and
associates
|
|
75
|
|
|
Net assets held for
sale
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
|
|
|
|
|
|
2,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Sales and underlying operating profit are
non-GAAP measures (see note 19). Sales excludes the sale of
precious metals. Underlying operating profit excludes profit or
loss on disposal of businesses, gain or loss on significant legal
proceedings, together with associated legal costs, amortisation of
acquired intangibles and major impairment and restructuring
charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
3
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The group's principal products and
services by operating business and sub-business are disclosed in
the table below, together with information regarding performance
obligations and revenue recognition. Revenue is recognised by the
group as contractual performance obligations to customers are
completed.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-business
|
Primary industry
|
Principal products and services
|
Performance obligations
|
|
Revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clean Air
|
|
|
Light Duty Catalysts
|
Automotive
|
Catalysts for cars and other light
duty vehicles
|
Point in time
|
|
On despatch or delivery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heavy Duty Catalysts
|
Automotive
|
Catalysts for trucks, buses and
non-road equipment
|
Point in time
|
|
On despatch or delivery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PGM Services
|
|
|
Platinum Group Metal
Services
|
Various
|
Platinum Group Metal refining and
recycling services
|
Over time
|
|
Based on output
|
|
|
|
|
|
|
|
|
|
|
Platinum Group Metal
trading
|
Point in time
|
|
On receipt of payment
|
|
|
|
|
|
|
|
|
|
|
Other precious metal
products
|
Point in time
|
|
On despatch or delivery
|
|
|
|
|
|
|
|
|
|
|
Platinum Group Metal chemical,
industrial products and catalysts
|
Point in time
|
|
On despatch or delivery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Catalyst Technologies
|
|
|
Catalysts
|
Chemicals / oil and gas
|
|
Speciality catalysts and
additives
|
Point in time
|
|
On despatch or delivery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licensing
|
Chemicals / oil and gas
|
|
Process technology
licences
|
Over time
|
|
Based on costs incurred or
straight-line over the licence term1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering design
services
|
Over time
|
|
Based on costs incurred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hydrogen Technologies
|
|
|
Fuel Cells technologies
|
Various
|
Fuel cell catalyst coated
membrane
|
Point in time
|
|
On despatch or delivery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrolysis technology
|
Various
|
Electrolyser catalyst coated
membrane
|
Point in time
|
|
On despatch or delivery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value Businesses
|
|
|
Other Markets (excluding
Diagnostic Services)
|
Various
|
Precious metal pastes and enamels,
battery systems and products found in devices used in medical
procedures
|
Point in time
|
|
On despatch or delivery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostic Services
|
Oil and gas
|
Detection, diagnostic and
measurement solutions
|
Over time
|
|
Based on costs incurred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Revenue recognition depends on whether the licence is
distinct in the context of the contract.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal revenue: Metal revenue
relates to the sales of precious metals to customers, either in
pure form or contained within a product. Metal revenue arises in
each of the reportable segments in the Group. Metal revenue is
affected by fluctuations in the market prices of precious metals
and, in many cases, the value of precious metals is passed directly
on to customers. Given the high value of these metals this makes up
a significant proportion of revenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Revenue (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers by principal products and
services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31st March 2024
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
|
|
|
|
Clean Air
|
PGM
Services
|
Catalyst
Technologies
|
Hydrogen
Technologies
|
Value
Businesses
|
Total
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal
|
|
2,646
|
6,116
|
74
|
14
|
89
|
8,939
|
|
Heavy Duty Catalysts
|
|
953
|
-
|
-
|
-
|
-
|
953
|
|
Light Duty Catalysts
|
|
1,620
|
-
|
-
|
-
|
-
|
1,620
|
|
Catalysts
|
|
-
|
-
|
500
|
-
|
-
|
500
|
|
Licensing
|
|
|
|
|
-
|
-
|
60
|
-
|
-
|
60
|
|
Platinum Group Metal
Services
|
|
-
|
374
|
-
|
-
|
-
|
374
|
|
Fuel Cells
|
|
-
|
-
|
-
|
71
|
-
|
71
|
|
Battery Systems
|
|
|
|
-
|
-
|
-
|
-
|
194
|
194
|
|
Diagnostic Services
|
|
-
|
-
|
-
|
-
|
37
|
37
|
|
Medical Device
Components
|
|
|
-
|
-
|
-
|
-
|
91
|
91
|
|
Other
|
|
-
|
-
|
-
|
-
|
4
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
5,219
|
6,490
|
634
|
85
|
415
|
12,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31st March 2023
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
|
|
Clean
Air
|
PGM
Services
|
Catalyst
Technologies
|
Hydrogen
Technologies
|
Value
Businesses
|
Total
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Metal
|
|
|
|
|
3,629
|
6,875
|
126
|
7
|
95
|
10,732
|
|
Heavy Duty Catalysts
|
|
970
|
-
|
-
|
-
|
-
|
970
|
|
Light Duty Catalysts
|
|
1,674
|
-
|
-
|
-
|
-
|
1,674
|
|
Catalyst Technologies
|
|
-
|
-
|
547
|
-
|
-
|
547
|
|
Platinum Group Metal
Services
|
|
-
|
485
|
-
|
-
|
-
|
485
|
|
Fuel Cells
|
|
|
|
|
-
|
-
|
-
|
55
|
-
|
55
|
|
Battery Systems
|
|
|
|
|
-
|
-
|
-
|
-
|
284
|
284
|
|
Diagnostic Services
|
|
-
|
-
|
-
|
-
|
71
|
71
|
|
Medical Device
Components
|
|
-
|
-
|
-
|
-
|
93
|
93
|
|
Other
|
|
|
|
|
-
|
-
|
-
|
-
|
22
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
6,273
|
7,360
|
673
|
62
|
565
|
14,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
4
|
Operating profit
|
|
|
|
|
|
|
|
|
|
Operating profit is arrived at
after charging / (crediting):
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expenditure charged to the income statement
|
|
204
|
213
|
|
Less: External funding received
from governments
|
|
(26)
|
(19)
|
|
|
|
|
|
|
|
|
|
|
|
Net research and development expenditure charged to the
income statement
|
|
178
|
194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories recognised as an
expense
|
|
10,962
|
12,962
|
|
Write-down of inventories
recognised as an expense
|
|
38
|
(39)
|
|
Reversal of write-down of
inventories from increases in net realisable value
|
(36)
|
(19)
|
|
Net losses / (gains) on foreign
exchange
|
|
3
|
(11)
|
|
Net losses on foreign currency
forwards at fair value through profit or loss
|
-
|
19
|
|
Past service credit
|
|
-
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of:
|
|
|
|
|
Property, plant and
equipment
|
|
134
|
137
|
|
Right-of-use assets
|
|
10
|
14
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
144
|
151
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation of:
|
|
|
|
|
Internally generated intangible
assets
|
|
1
|
1
|
|
Acquired intangibles
|
|
4
|
5
|
|
Other intangible assets
|
|
43
|
30
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation
|
|
48
|
36
|
|
|
|
|
|
|
|
|
|
|
|
Gains and losses on significant legal
proceedings
|
|
-
|
25
|
|
|
|
|
|
|
Loss / (profit) on disposal of businesses (note
13)
|
|
9
|
(12)
|
|
|
|
|
|
|
Impairment losses included in
administrative expenses
|
|
-
|
3
|
|
|
|
|
|
|
|
|
|
|
|
Impairment losses
|
|
-
|
3
|
|
|
|
|
|
|
|
|
|
|
|
Impairment losses and reversals
included in major impairment and restructuring charges
|
70
|
10
|
|
Restructuring charges included in
major impairment and restructuring charges
|
|
78
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Major impairment and restructuring charges (note
5)
|
|
148
|
41
|
|
|
|
|
|
|
Fees payable to the company's auditor and its associates
for:
|
|
|
|
|
The audit of the company
accounts
|
|
2.7
|
2.4
|
|
The audit of the accounts of the
company's subsidiaries
|
|
2.4
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
Total audit fees
|
|
5.1
|
4.8
|
|
|
|
|
|
|
Audit-related assurance
services
|
|
0.4
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
Total non audit fees
|
|
0.4
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
Total fees payable to the company's auditor and its
associates
|
|
5.5
|
5.2
|
|
|
|
|
|
Gains and losses on significant legal
proceedings
During the prior year, the group
paid £25 million in respect of a settlement with a customer on
mutually acceptable terms with no admission of fault relating to
failures in certain engine systems for which the group supplied a
particular coated substrate as a component for that customer's
emissions after-treatment systems.
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
5
|
Major impairment and restructuring charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
22
|
|
17
|
|
|
Right-of-use assets
|
|
1
|
|
-
|
|
|
Goodwill
|
|
6
|
|
4
|
|
|
Other intangible assets
|
|
-
|
|
3
|
|
|
Inventories
|
|
29
|
|
(8)
|
|
|
Trade and other
receivables
|
|
12
|
|
(6)
|
|
|
Impairment losses and reversals
|
|
|
|
|
|
|
|
|
70
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
|
|
|
|
|
78
|
|
31
|
|
|
Total major impairment and restructuring
charges
|
|
148
|
|
41
|
|
The £22 million impairment of
Property, Plant and Equipment is inclusive of a £7 million
impairment reversal (see note 8).
Major impairment and restructuring
charges are shown separately on the face of the income statement
and excluded from underlying operating profit (see note
19).
Major impairments - the
group's net impairment charge of £70 million includes amounts
incurred as we prepared for the disposal of our Value Businesses,
of which £45 million relates to an impairment in Battery Systems
(see note 12). The residual balance is predominantly comprised of
£18 million recognised in relation to the recent slowdown in growth
within the hydrogen and fuel cell market which required us to adapt
to the changing demand profiles of our customers as they navigate
this short-term uncertainty.
Major restructuring - the
group's transformation programme was launched in May 2022 and was
designed to drive increased competitiveness, improved execution
capability and create financial headroom to facilitate further
investment in high growth areas. Restructuring charges of £48
million have been recognised of which £32 million relates to
Johnson Matthey Global Solutions and IT transformation, with the
remainder other redundancy and implementation costs. The remaining
£30 million charge is predominantly related to Clean Air's ongoing
plant consolidation initiatives, of which the majority is
redundancy and exit costs.
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
pence
|
|
pence
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
58.6
|
|
150.9
|
|
|
Diluted
|
|
|
|
|
58.3
|
|
150.2
|
|
|
Basic from continuing
operations
|
|
|
|
|
|
|
58.6
|
|
144.2
|
|
|
Diluted from continuing
operations
|
|
|
|
|
58.3
|
|
143.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share have
been calculated by dividing profit for the period by the weighted
average number of shares in issue during the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares in issue
|
|
|
|
|
|
2024
|
|
2023
|
|
|
Basic
|
|
|
|
|
|
|
|
183,392,681
|
|
183,012,301
|
|
|
Dilution for long term incentive
plans
|
|
|
|
|
|
|
|
859,636
|
|
851,432
|
|
|
Diluted
|
|
|
|
|
|
|
|
184,252,317
|
|
183,863,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A final dividend of 55.00 pence
per ordinary share has been proposed by the board which will be
paid on 6th August 2024 to shareholders on the register
at the close of business on 7th June 2024, subject to
shareholders' approval. The estimated amount to be paid is £101
million and has not been recognised in these accounts.
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021/22 final ordinary dividend
paid ─ 55.00 pence per share
|
|
|
|
|
-
|
|
100
|
|
|
2022/23 interim ordinary dividend
paid ─ 22.00 pence per share
|
|
|
|
|
-
|
|
41
|
|
|
2022/23 final ordinary dividend
paid ─ 55.00 pence per share
|
|
|
|
|
101
|
|
-
|
|
|
2023/24 interim ordinary dividend
paid ─ 22.00 pence per share
|
|
|
|
|
40
|
|
-
|
|
|
Total dividends
|
|
|
|
|
|
|
|
141
|
|
141
|
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
|
|
|
|
8
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
Freehold
|
|
|
Assets
in
|
|
|
|
|
|
|
|
land and
|
Leasehold
|
Plant
and
|
the
course of
|
|
|
|
|
|
|
|
buildings
|
improvements
|
machinery
|
construction
|
Total
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
At 1st April
2023
|
599
|
28
|
2,151
|
360
|
3,138
|
|
Additions
|
2
|
-
|
39
|
284
|
325
|
|
Transferred to assets classified
as held for sale (note 12)
|
-
|
(4)
|
(66)
|
(4)
|
(74)
|
|
Transfers from assets in the
course of construction
|
12
|
1
|
102
|
(115)
|
-
|
|
Disposals
|
(1)
|
(2)
|
(27)
|
(5)
|
(35)
|
|
Disposal of businesses (note
13)
|
(1)
|
-
|
(4)
|
-
|
(5)
|
|
Exchange adjustments
|
(20)
|
-
|
(52)
|
(5)
|
(77)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31st March 2024
|
591
|
23
|
2,143
|
515
|
3,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
At 1st April
2023
|
284
|
15
|
1,499
|
8
|
1,806
|
|
Charge for the year
|
16
|
1
|
114
|
3
|
134
|
|
Impairment losses (note
5)
|
-
|
-
|
20
|
9
|
29
|
|
Transferred to assets classified
as held for sale (note 12)
|
-
|
(2)
|
(47)
|
(3)
|
(52)
|
|
Disposals
|
(1)
|
(2)
|
(25)
|
(5)
|
(33)
|
|
Disposal of businesses (note
13)
|
(1)
|
-
|
(4)
|
-
|
(5)
|
|
Exchange adjustments
|
(8)
|
-
|
(35)
|
-
|
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31st March 2024
|
290
|
12
|
1,522
|
12
|
1,836
|
|
|
|
|
|
|
|
|
Carrying amount at 31st March
2024
|
301
|
11
|
621
|
503
|
1,436
|
|
Carrying amount at 1st
April 2023
|
315
|
13
|
652
|
352
|
1,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year, the group
recognised impairments of £29 million. This impairment charge is
included in non-underlying expenses.
The assets transferred to held for
sale relates to Medical Device Components (see note 12). Battery
Materials Poland is not included as these were transferred to held
for sale in the prior year. The assets presented within disposal of
businesses relate to Johnson Matthey Catalyst LLC (see note 13).
Diagnostic Services is not included as these were transferred to
held for sale in the prior year.
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
|
|
|
|
9
|
Other intangible assets
|
|
|
|
|
|
|
|
|
|
|
Customer
|
|
|
|
|
|
|
|
|
|
|
contracts
|
|
Patents,
|
Acquired
|
|
|
|
|
|
|
|
and
|
Computer
|
trademarks
|
research
and
|
Development
|
|
|
|
|
|
|
relationships
|
software
|
and
licences
|
technology
|
expenditure
|
Total
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
At 1st April
2023
|
116
|
475
|
43
|
37
|
135
|
806
|
|
Additions
|
-
|
64
|
1
|
-
|
-
|
65
|
|
Transferred to assets classified
as held for sale (note 12)
|
(10)
|
(1)
|
-
|
(6)
|
-
|
(17)
|
|
Disposals
|
-
|
(1)
|
(11)
|
-
|
-
|
(12)
|
|
Exchange adjustments
|
(3)
|
(1)
|
(1)
|
(1)
|
(1)
|
(7)
|
|
|
|
|
|
|
|
|
|
At 31st March 2024
|
103
|
536
|
32
|
30
|
134
|
835
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortisation and impairment
|
|
|
|
|
|
|
At 1st April
2023
|
101
|
209
|
39
|
37
|
133
|
519
|
|
Charge for the year
|
2
|
45
|
-
|
-
|
1
|
48
|
|
Transferred to assets classified
as held for sale (note 12)
|
(10)
|
(1)
|
-
|
(6)
|
-
|
(17)
|
|
Disposals
|
-
|
-
|
(11)
|
-
|
-
|
(11)
|
|
Exchange adjustments
|
(2)
|
(1)
|
-
|
(1)
|
(1)
|
(5)
|
|
|
|
|
|
|
|
|
|
At 31st March 2024
|
91
|
252
|
28
|
30
|
133
|
534
|
|
|
|
|
|
|
|
|
|
Carrying amount at 31st March
2024
|
12
|
284
|
4
|
-
|
1
|
301
|
|
Carrying amount at 1st
April 2023
|
15
|
266
|
4
|
-
|
2
|
287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
|
|
|
10
|
Trade and other receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
|
|
964
|
|
1,304
|
|
|
Contract receivables
|
|
|
|
|
56
|
|
70
|
|
|
Prepayments
|
|
|
|
|
74
|
|
83
|
|
|
Value added tax and other sales
tax receivable
|
|
|
|
|
121
|
|
142
|
|
|
Advance payments to
customers
|
|
|
|
|
18
|
|
10
|
|
|
Amounts receivable under precious
metal sale and repurchase agreements1
|
|
|
|
|
417
|
|
222
|
|
|
Other receivables
|
|
|
|
|
68
|
|
51
|
|
|
Trade and other receivables
|
|
|
|
|
1,718
|
|
1,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
Value added tax and other sales
tax receivable
|
|
|
|
|
-
|
|
3
|
|
|
Advance payments to
customers
|
|
|
|
|
44
|
|
53
|
|
|
Other receivables
|
|
|
|
|
60
|
|
57
|
|
|
Other receivables
|
|
|
|
|
104
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The fair value of the precious metal contracted to be sold by
the group under sale and repurchase agreements is £398 million
(31st March 2023: £215 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
|
Trade and other payables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
|
|
655
|
|
831
|
|
|
Contract liabilities
|
|
|
|
|
177
|
|
181
|
|
|
Accruals
|
|
|
|
|
328
|
|
338
|
|
|
Amounts payable under precious
metal sale and repurchase agreements1
|
|
|
|
|
844
|
|
838
|
|
|
Other payables
|
|
|
|
|
205
|
|
309
|
|
|
Trade and other payables
|
|
|
|
|
|
|
|
2,209
|
|
2,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
Other payables
|
|
|
|
|
2
|
|
2
|
|
|
Trade and other payables
|
|
|
|
|
|
|
|
2
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The fair value of the precious metal contracted to be
repurchased by the group under sale and repurchase agreements is
£797 million (31st March 2023: £802 million).
|
|
|
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
|
|
|
12
|
Assets and liabilities classified as held for
sale
|
|
|
|
The group drives for efficiency
and disciplined capital allocation to enhance returns, as such we
continue to actively manage our portfolio. In line with this
strategy and to focus on our core businesses, during the period we
completed the sale of our Diagnostics Services business. Refer to
note 13 for further information on this disposal.
In March 2024, the group agreed to
sell its Medical Device Components business expecting to realise
net proceeds of £530 million which is in excess of the carrying
amount of its assets. The business is classified as a disposal
group held for sale.
Additionally, in March, the group
agreed to sell its Battery Systems business. As at 31st
March 2024, the proceeds less costs to sell for the Battery Systems
business are estimated to be c.£30 million and so an impairment of
£45 million has been recognised, see note 5. This impairment has
been allocated against goodwill (£6 million), property, plant and
equipment (£10 million), right-of-use assets (£1 million) and
inventories (£28 million). The business is classified as a disposal
group held for sale.
During the year we recognised an
impairment reversal of £7 million for the land and buildings of our
previous Battery Materials business in Poland to reflect the latest
fair value less costs to sell. The original impairment on the land
and buildings was in the year ended 31st March
2022.
The major classes of assets and
liabilities comprising the businesses classified as held for sale
as at 31st March are:
|
|
|
|
|
2024
|
|
|
|
|
|
|
|
|
|
|
|
Battery
|
|
|
|
|
|
|
|
|
Medical
Device
|
|
Battery
|
|
Materials
|
|
|
|
|
|
|
|
|
|
Components
|
|
Systems
|
|
Poland
|
|
Total
|
|
2023
|
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
22
|
|
-
|
|
25
|
|
47
|
|
27
|
|
Right-of-use-assets
|
|
|
4
|
|
-
|
|
-
|
|
4
|
|
9
|
|
Goodwill
|
|
|
|
1
|
|
-
|
|
-
|
|
1
|
|
-
|
|
Other intangible assets
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
Deferred tax assets
|
|
-
|
|
4
|
|
-
|
|
4
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
7
|
|
29
|
|
-
|
|
36
|
|
5
|
|
Trade and other
receivables
|
13
|
|
22
|
|
-
|
|
35
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets classified as held for sale
|
47
|
|
55
|
|
25
|
|
127
|
|
75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other
payables
|
|
|
(5)
|
|
(22)
|
|
-
|
|
(27)
|
|
(14)
|
|
Lease liabilities
|
|
|
(1)
|
|
-
|
|
-
|
|
(1)
|
|
(1)
|
|
Taxation liabilities
|
(1)
|
|
(2)
|
|
-
|
|
(3)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities
|
|
|
(3)
|
|
(1)
|
|
-
|
|
(4)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities classified as held for sale
|
(10)
|
|
(25)
|
|
-
|
|
(35)
|
|
(25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets of disposal group
|
|
|
|
37
|
|
30
|
|
25
|
|
92
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The prior year held for sale
balances relate to Battery Materials and Diagnostic
Services.
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
Diagnostic Services
On 29th September 2023,
the group completed the sale of its Diagnostic Services business
for an enterprise value of £55 million (£47 million on a debt free
basis, after working capital adjustments). The business was
disclosed as a disposal group held for sale as at 31st
March 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostic
Services
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
Proceeds
|
|
|
|
|
|
|
|
|
|
|
|
Cash consideration
|
|
|
|
|
|
|
|
|
47
|
|
Cash and cash equivalents
disposed
|
|
|
|
|
|
|
|
|
(3)
|
|
Net cash consideration
|
|
|
|
|
|
|
|
|
44
|
|
Disposal costs paid
|
|
|
|
|
|
|
|
|
(2)
|
|
Net cash inflow
|
|
|
|
|
|
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets and liabilities disposed
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
|
|
|
|
10
|
|
Right-of-use-assets
|
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
|
|
|
|
|
5
|
|
Trade and other
receivables
|
|
|
|
|
|
|
|
|
32
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
3
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade and other
payables
|
|
|
|
|
|
|
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities
|
|
|
|
|
|
|
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets disposed
|
|
|
|
|
|
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostic
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
Cash consideration
|
|
|
|
|
|
|
|
|
47
|
|
Deferred consideration
|
|
|
|
|
|
|
|
|
4
|
|
Working capital adjustments at
time of disposal
|
|
|
|
4
|
|
Less: carrying amount of net
assets sold
|
|
(42)
|
|
Less: disposal costs
|
|
|
|
(8)
|
|
Cumulative currency translation
loss recycled from other comprehensive income
|
|
|
(1)
|
|
Profit recognised in the income statement
|
|
|
|
4
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
Johnson Matthey Catalysts LLC
On 15th June 2023, the
group completed the sale of Johnson Matthey Catalysts LLC, its
operations in Russia, to Catalysts and Technologies LLC for a cash
consideration of £11 million. All assets excluding cash had
previously been impaired. The sale resulted in a net loss on sale
of £4 million due to a cumulative currency translation loss being
recycled from other comprehensive income.
Battery Materials Germany
On 31st December 2023,
the group completed the sale of the trade and assets (excluding
cash) of its Battery Materials Germany business for a total
consideration of £1 million. There was £nil profit on
sale.
Disposal related costs
Included within loss on disposal
of businesses is £9 million of disposal related costs. This is
comprised of £7 million for the disposals of Medical Device
Components (£5 million) and Battery Systems (£2 million) which were
signed during the year and £2 million in relation to disposals in
prior years.
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
14
|
Post-employment benefits
|
|
|
|
|
Background
The group operates a number of
post-employment benefit plans around the world, the forms and
benefits of which vary with conditions and practices in the
countries concerned. The major defined benefit plans are pension
plans and post-retirement medical plans in the UK and the
US.
|
Financial assumptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
UK plan
|
|
US
plans
|
|
Other
plans
|
|
UK
plan
|
|
US
plans
|
|
Other
plans
|
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First year's rate of increase in
salaries
|
3.50
|
|
-
|
|
2.43
|
|
4.40
|
|
4.50
|
|
3.97
|
|
Ultimate rate of increase in
salaries
|
3.50
|
|
-
|
|
2.20
|
|
3.40
|
|
4.50
|
|
2.20
|
|
Rate of increase in pensions in
payment
|
2.90
|
|
-
|
|
2.20
|
|
2.90
|
|
-
|
|
2.80
|
|
Discount rate
|
4.90
|
|
5.20
|
|
3.30
|
|
4.80
|
|
4.90
|
|
4.40
|
|
Inflation
|
|
-
|
|
2.20
|
|
2.20
|
|
-
|
|
2.50
|
|
3.90
|
|
- UK Retail Prices Index
(RPI)
|
3.10
|
|
-
|
|
-
|
|
3.10
|
|
-
|
|
-
|
|
- UK Consumer Prices Index
(CPI)
|
2.75
|
|
-
|
|
-
|
|
2.65
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Movements in the net
post-employment benefit assets and liabilities, including
reimbursement rights, were:
|
|
|
|
|
|
|
|
|
UK
post-
|
|
|
|
US
post-
|
|
|
|
|
|
|
|
|
UK
pension -
|
|
UK
pension -
|
|
retirement
|
|
|
|
retirement
|
|
|
|
|
|
|
|
|
legacy
|
|
cash
balance
|
|
medical
|
|
US
|
|
medical
|
|
|
|
|
|
|
|
|
section
|
|
section
|
|
benefits
|
|
pensions
|
|
benefits
|
|
Other
|
|
Total
|
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
At 1st April 2023
|
169
|
|
27
|
|
(7)
|
|
6
|
|
(10)
|
|
(20)
|
|
165
|
|
|
|
Current service cost - in
operating profit
|
(2)
|
|
(15)
|
|
-
|
|
(2)
|
|
-
|
|
(1)
|
|
(20)
|
|
|
|
Administrative expenses - in
operating profit
|
(4)
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
(5)
|
|
|
|
Interest
|
7
|
|
1
|
|
-
|
|
1
|
|
(1)
|
|
(1)
|
|
7
|
|
|
|
Remeasurements
|
(65)
|
|
-
|
|
-
|
|
(3)
|
|
1
|
|
(1)
|
|
(68)
|
|
|
|
Company contributions
|
10
|
|
22
|
|
1
|
|
3
|
|
-
|
|
2
|
|
38
|
|
|
|
Exchange
|
-
|
|
-
|
|
-
|
|
(2)
|
|
-
|
|
2
|
|
-
|
|
|
|
At 31st March 2024
|
115
|
|
35
|
|
(6)
|
|
2
|
|
(10)
|
|
(19)
|
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The post-employment benefit assets
and liabilities are included in the balance sheet as
follows:
|
|
2024
|
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
Post-
|
|
|
|
|
|
Post-
|
|
|
|
|
|
|
|
employment
|
|
Employee
|
|
|
|
employment
|
|
Employee
|
|
|
|
|
|
benefit
|
|
benefit net
|
|
|
|
benefit
|
|
benefit net
|
|
|
|
|
|
net
assets
|
|
obligations
|
|
Total
|
|
net
assets
|
|
obligations
|
|
Total
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
UK pension - legacy
section
|
115
|
|
-
|
|
115
|
|
169
|
|
-
|
|
169
|
|
|
UK pension - cash balance
section
|
35
|
|
-
|
|
35
|
|
27
|
|
-
|
|
27
|
|
|
UK post-retirement medical
benefits
|
-
|
|
(6)
|
|
(6)
|
|
-
|
|
(7)
|
|
(7)
|
|
|
US pensions
|
2
|
|
-
|
|
2
|
|
6
|
|
-
|
|
6
|
|
|
US post-retirement medical
benefits
|
-
|
|
(10)
|
|
(10)
|
|
-
|
|
(10)
|
|
(10)
|
|
|
Other
|
1
|
|
(20)
|
|
(19)
|
|
1
|
|
(21)
|
|
(20)
|
|
|
Total post-employment plans
|
153
|
|
(36)
|
|
117
|
|
203
|
|
(38)
|
|
165
|
|
|
Other long-term employee
benefits
|
|
|
(3)
|
|
|
|
|
|
(3)
|
|
|
|
|
Total long-term employee benefit
obligations
|
|
(39)
|
|
|
|
|
|
(41)
|
|
|
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
Fair value hierarchy
Fair values are measured using a
hierarchy where the inputs are:
·
Level 1 ─
quoted prices in active markets for identical
assets or liabilities.
·
Level 2 ─
not level 1 but are observable for that asset or
liability either directly or indirectly.
·
Level 3 ─
not based on observable market data
(unobservable).
Fair value of financial instruments
Certain of the group's financial
instruments are held at fair value. The fair value of a financial
instrument is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between
market participants at the balance sheet date.
The fair value of forward foreign
exchange contracts, interest rate swaps, forward precious metal
price contracts and currency swaps is estimated by discounting the
future contractual cash flows using forward exchange rates,
interest rates and prices at the balance sheet date.
The fair value of trade and other
receivables measured at fair value is the face value of the
receivable less the estimated costs of converting the receivable
into cash.
The fair value of money market
funds is calculated by multiplying the net asset value per share by
the investment held at the balance sheet date.
There were no transfers of any
financial instrument between the levels of the fair value hierarchy
during the current or prior years.
Notes on the Preliminary Accounts
for the year ended 31st March
2024
15
|
Fair values (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
Fair
value
hierarchy
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
|
£m
|
|
Level
|
|
|
Financial instruments measured at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair value through
other comprehensive income1
|
|
|
40
|
|
49
|
|
1
|
|
|
Interest rate swaps -
assets
|
|
15
|
|
20
|
|
2
|
|
|
Other financial
assets2
|
|
|
|
|
|
34
|
|
48
|
|
2
|
|
|
Interest rate swaps -
liabilities
|
|
(10)
|
|
(15)
|
|
2
|
|
|
Borrowings and related
swaps
|
|
|
|
|
|
(3)
|
|
(5)
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
receivables3
|
|
178
|
|
329
|
|
2
|
|
|
Other
receivables4
|
|
|
|
|
|
|
|
|
3
|
|
21
|
|
2
|
|
|
Cash and cash equivalents - money
market funds
|
|
334
|
|
521
|
|
2
|
|
|
Cash and cash equivalents - cash
and deposits
|
|
|
|
12
|
|
-
|
|
2
|
|
|
Other financial
assets2
|
|
|
|
|
|
|
|
53
|
|
47
|
|
2
|
|
|
Other financial
liabilities2
|
|
|
|
|
|
(11)
|
|
(27)
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial instruments not measured at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
Borrowings and related
swaps
|
|
(1,336)
|
|
(1,455)
|
|
-
|
|
|
Lease liabilities
|
|
(24)
|
|
(31)
|
|
-
|
|
|
Trade and other
receivables
|
|
60
|
|
57
|
|
-
|
|
|
Other payables
|
|
(2)
|
|
(2)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts receivable under precious
metal sale and repurchase agreements
|
|
398
|
|
222
|
|
-
|
|
|
Amounts payable under precious
metal sale and repurchase agreements
|
|
(797)
|
|
(838)
|
|
-
|
|
|
Cash and cash equivalents - cash
and deposits
|
|
196
|
|
129
|
|
-
|
|
|
Cash and cash equivalents - bank
overdrafts
|
|
(12)
|
|
(13)
|
|
-
|
|
|
Borrowings and related
swaps
|
|
(110)
|
|
(155)
|
|
-
|
|
|
Lease liabilities
|
|
(8)
|
|
(9)
|
|
-
|
|
|
Trade and other
receivables
|
|
926
|
|
1,075
|
|
-
|
|
|
Trade and other
payables
|
|
(1,235)
|
|
(1,478)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
1 Investments at fair value through other comprehensive income
are quoted bonds purchased to fund pension deficits (£35 million)
and an investment held at fair value through other comprehensive
income (£5 million).
|
|
|
2 Includes forward foreign exchange contracts, forward precious
metal price contracts and currency swaps.
|
|
|
3 Trade receivables held in a part of the group with a business
model to hold trade receivables for collection or sale. The
remainder of the group operates a hold to collect business model
and receives the face value, plus relevant interest, of its trade
receivables from the counterparty without otherwise exchanging or
disposing of such instruments.
|
|
|
4 Other receivables with cash flows that do not represent
solely the payment of principal and interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair values are calculated
using level 2 inputs by discounting future cash flows to net
present values using appropriate market interest rates prevailing
at the year end.
The fair value of financial
instruments, excluding accrued interest, is approximately equal to
book value except for:
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
Carrying
amount
|
Fair
value
|
Carrying
amount
|
Fair
value
|
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Dollar Bonds 2023, 2025, 2027,
2028, 2029 and 2030
|
(507)
|
(474)
|
(648)
|
(618)
|
|
Euro Bonds 2023, 2025, 2028, 2030
and 2032
|
(348)
|
(320)
|
(368)
|
(340)
|
|
Sterling Bonds 2024, 2025 and
2029
|
(145)
|
(137)
|
(145)
|
(137)
|
|
KfW US Dollar Loan 2024
|
|
|
|
(40)
|
(38)
|
(40)
|
(39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
The group leases precious metals
to fund temporary peaks in metal requirements provided market
conditions allow. These leases are from banks for specified periods
(less than 12 months) and the group pays a fee which is expensed on
a straight-line basis over the lease term in finance costs. The
group holds sufficient precious metal inventories to meet all the
obligations under these lease arrangements as they fall due. At
31st March 2024, precious metal leases were
£197 million at closing prices (31st March 2023: £138
million). Precious metal leases do not fall under the scope of IFRS
16.
17
|
Contingent liabilities
|
|
|
|
|
The group is involved in various
disputes and claims which arise from time to time in the course of
its business including, for example, in relation to commercial
matters, product quality or liability, employee matters and tax
audits. The group is also involved from time to time in the course
of its business in legal proceedings and actions, engagement with
regulatory authorities and in dispute resolution processes. These
are reviewed on a regular basis and, where possible, an estimate is
made of the potential financial impact on the group. In appropriate
cases a provision is recognised based on advice, best estimates and
management judgement. Where it is too early to determine the likely
outcome of these matters, no provision is made. Whilst the group
cannot predict the outcome of any current or future such matters
with any certainty, it currently believes the likelihood of any
material liabilities to be low, and that such liabilities, if any,
will not have a material adverse effect on its consolidated income,
financial position or cash flows.
Following the sale of its Health
business in May 2022, the purchaser of the Health business,
Veranova Bidco LP, has issued a claim against the group in
connection with: i) certain alleged representations said to have
been made during the course of the negotiation of the sale and
purchase agreement dated 16th December 2021 ("SPA");
and, ii) certain warranties given in the SPA at the time of
signing. Having reviewed the claim with its advisers, the group is
of the opinion that it has a defensible position in respect of
these allegations and is vigorously defending its position. The
outcome of the legal proceedings relating to this matter is not
certain, since the issues of liability and quantum will be for
determination by the court at trial. Accordingly, the group is
unable to make a reliable estimate of the possible financial impact
at this stage, if any.
18
|
Transactions with related parties
|
|
|
|
|
There have been no material
changes in total compensation for key management personnel during
the year.
During the year the group had
sales of £17 million (2023: £6 million) with Veranova. The amounts
owed by Veranova were £1 million at 31st March 2024
(31st March 2023: £3 million).
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
The group uses various measures to
manage its business which are not defined by generally accepted
accounting principles (GAAP). The group's management believes these
measures provide valuable additional information to users of the
accounts in understanding the group's performance. Certain of these
measures are financial Key Performance Indicators which measure
progress against our strategy.
All non-GAAP measures are on a
continuing operations basis.
Definitions
-Measure
|
Definition
|
Purpose
|
Sales1
|
Revenue excluding sales of
precious metals to customers and the precious metal content of
products sold to customers.
|
Provides a better measure of the
growth of the group as revenue can be heavily distorted by year on
year fluctuations in the market prices of precious metals and, in
many cases, the value of precious metals is passed directly on to
customers.
|
Underlying operating
profit2
|
Operating profit excluding
non-underlying items.
|
Provides a measure of operating
profitability that is comparable over time.
|
Underlying operating profit
margin1, 2
|
Underlying operating profit
divided by sales.
|
Provides a measure of how we
convert our sales into underlying operating profit and the
efficiency of our business.
|
Underlying profit before
tax2
|
Profit before tax excluding
non-underlying items.
|
Provides a measure of
profitability that is comparable over time.
|
Underlying profit for the
year2
|
Profit for the year excluding
non-underlying items and related tax effects.
|
Provides a measure of
profitability that is comparable over time.
|
Underlying earnings per
share1, 2
|
Underlying profit for the year
divided by the weighted average number of shares in
issue.
|
Our principal measure used to
assess the overall profitability of the group.
|
Average working capital days
(excluding precious metals)1
|
Monthly average of non-precious
metal related inventories, trade and other receivables and trade
and other payables (including any classified as held for sale)
divided by sales for the last three months multiplied by 90
days.
|
Provides a measure of efficiency
in the business with lower days driving higher returns and a
healthier liquidity position for the group.
|
Free cash flow
|
Net cash flow from operating
activities after net interest paid, net purchases of non-current
assets and investments, proceeds from disposal of businesses,
dividends received from joint ventures and associates and the
principal element of lease payments.
|
Provides a measure of the cash the
group generates through its operations, less capital
expenditure.
|
Net debt (including post tax
pension deficits) to underlying EBITDA
|
Net debt, including post tax
pension deficits and quoted bonds purchased to fund the UK pension
(excluded when the UK pension plan is in surplus) divided by
underlying EBITDA for the same period.
|
Provides a measure of the group's
ability to repay its debt. The group has a long-term target of net
debt (including post tax pension deficits) to underlying EBITDA of
between 1.5 and 2.0 times, although in any given year it may fall
outside this range depending on future plans.
|
1 Key Performance Indicator
2 Underlying profit measures are before profit or loss on
disposal of businesses, gains or loss on significant legal
proceedings, together with associated legal costs, amortisation of
acquired intangibles, major impairment and restructuring charges,
share of profits or losses from non-strategic equity investments
and, where relevant, related tax effects. These items have been
excluded by management as they are not deemed to be relevant to an
understanding of the underlying performance of the
business.
As noted in our 2023 annual
report, our strategy involves making substantial investment in the
coming years to support the growth and transformation of the group.
Our businesses have different investment and return profiles and
therefore we no longer use a group measure of Return on Invested
Capital as a key performance indicator.
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
19
|
Non-GAAP measures (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations to GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (note 3)
|
|
12,843
|
14,933
|
|
|
Less: sales of precious metals to
customers (note 3)
|
|
(8,939)
|
(10,732)
|
|
|
Sales
|
|
3,904
|
4,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31st March 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
Profit before
tax
|
Tax
expense
|
Profit for the
year
|
|
|
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying
|
410
|
328
|
(68)
|
260
|
|
|
Loss on disposal of
businesses
|
(9)
|
(9)
|
-
|
(9)
|
|
|
Amortisation of acquired
intangibles
|
(4)
|
(4)
|
1
|
(3)
|
|
|
Major impairment and restructuring
charges
|
(148)
|
(148)
|
15
|
(133)
|
|
|
Share of losses of
associates
|
-
|
(3)
|
-
|
(3)
|
|
|
Non-underlying tax
provisions
|
-
|
-
|
(4)
|
(4)
|
|
|
Reported
|
|
|
|
|
|
|
249
|
164
|
(56)
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31st March 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
Profit
before tax
|
Tax
expense
|
Profit
for the year
|
|
|
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying
|
465
|
404
|
(78)
|
326
|
|
|
Profit on disposal of
businesses
|
12
|
12
|
(1)
|
11
|
|
|
Amortisation of acquired
intangibles
|
(5)
|
(5)
|
1
|
(4)
|
|
|
Gains and losses on significant
legal proceedings
|
(25)
|
(25)
|
5
|
(20)
|
|
|
Major impairment and restructuring
charges
|
|
(41)
|
(41)
|
(7)
|
(48)
|
|
|
Share of losses of
associates
|
|
-
|
(1)
|
-
|
(1)
|
|
|
Reported
|
|
|
|
|
|
|
406
|
344
|
(80)
|
264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
Underlying profit for the year (£
million)
|
|
|
260
|
326
|
|
Weighted average number of shares
in issue (millions)
|
|
|
183.4
|
183.0
|
|
Underlying earnings per share
(pence)
|
|
|
|
|
141.3
|
178.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
19
|
Non-GAAP measures (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average working capital days
(excluding precious metals)
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
1,211
|
1,702
|
|
Trade and other
receivables
|
|
1,718
|
1,882
|
|
Trade and other
payables
|
|
(2,209)
|
(2,497)
|
|
|
|
|
|
|
|
|
|
|
720
|
1,087
|
|
Working capital balances
classified as held for sale
|
44
|
22
|
|
Total working capital
|
|
764
|
1,109
|
|
Less: Precious metal working
capital
|
|
(174)
|
(622)
|
|
Working capital (excluding precious metals)
|
|
590
|
487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average working capital days (excluding precious
metals)
|
|
60
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash inflow from operating
activities
|
|
592
|
291
|
|
Interest received
|
|
62
|
28
|
|
Interest paid
|
|
(137)
|
(94)
|
|
Purchases of property, plant and
equipment
|
|
(301)
|
(253)
|
|
Purchases of intangible
assets
|
|
(67)
|
(63)
|
|
Purchases of investments held at
fair value through other comprehensive income
|
-
|
(17)
|
|
Government grant income
|
|
5
|
7
|
|
Proceeds from sale of
businesses
|
|
41
|
187
|
|
Proceeds from sale of non-current
assets
|
|
5
|
8
|
|
Proceeds from sale of investment
in joint ventures
|
|
-
|
2
|
|
Principal element of lease
payments
|
|
(11)
|
(14)
|
|
Less: Free cash inflow from
discontinued operations
|
|
-
|
(8)
|
|
Free cash flow
|
|
189
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary Accounts
for the year ended 31st
March 2024
19
|
Non-GAAP measures (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt (including post tax
pension deficits) to underlying EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
£m
|
£m
|
|
Cash and deposits
|
|
|
208
|
129
|
|
Money market funds
|
|
|
|
334
|
521
|
|
Bank overdrafts
|
|
|
|
(12)
|
(13)
|
|
Cash and cash equivalents
|
|
|
530
|
637
|
|
Interest rate swaps - non-current
assets
|
|
|
15
|
20
|
|
Interest rate swaps - non-current
liabilities
|
|
|
(10)
|
(15)
|
|
Borrowings and related swaps -
current
|
|
|
(110)
|
(155)
|
|
Borrowings and related swaps -
non-current
|
|
|
(1,339)
|
(1,460)
|
|
Lease liabilities -
current
|
|
|
(8)
|
(9)
|
|
Lease liabilities -
non-current
|
|
|
(24)
|
(31)
|
|
Lease liabilities - current -
transferred to liabilities classified as held for sale
|
(1)
|
(1)
|
|
Lease liabilities - non-current -
transferred to liabilities classified as held for sale
|
(4)
|
(9)
|
|
Net debt
|
|
|
(951)
|
(1,023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) / increase in cash and
cash equivalents
|
|
|
(102)
|
287
|
|
|
Increase in cash and cash
equivalents from discontinued operations
|
-
|
(8)
|
|
|
Decrease / (increase) in
borrowings
|
|
|
150
|
(391)
|
|
|
Less: Principal element of lease
payments
|
|
|
11
|
14
|
|
|
Decrease / (increase) in net debt resulting from cash
flows
|
59
|
(98)
|
|
|
New leases, remeasurements and
modifications
|
(11)
|
(13)
|
|
|
Other lease movements
|
|
|
|
1
|
-
|
|
|
Disposals
|
|
11
|
-
|
|
|
Exchange differences on net
debt
|
|
|
|
13
|
(53)
|
|
|
Other non-cash
movements
|
|
|
|
(1)
|
(3)
|
|
|
Movement in net debt
|
|
|
|
72
|
(167)
|
|
|
Net debt at beginning of
year
|
|
|
|
(1,023)
|
(856)
|
|
|
Net debt at end of year
|
|
|
|
(951)
|
(1,023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
|
(951)
|
(1,023)
|
|
Add: Pension deficits
|
|
|
(22)
|
(21)
|
|
Add: Related deferred
tax
|
|
|
3
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt (including post tax pension
deficits)
|
|
|
(970)
|
(1,042)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying operating
profit
|
|
|
410
|
465
|
|
Add back: Depreciation and
amortisation excluding amortisation of acquired
intangibles
|
188
|
182
|
|
Underlying EBITDA
|
|
598
|
647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt (including post tax pension deficits) to underlying
EBITDA
|
|
1.6
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
£m
|
£m
|
|
Underlying EBITDA
|
|
598
|
647
|
|
Depreciation and
amortisation
|
|
|
(192)
|
(187)
|
|
Gains and losses on significant
legal proceedings
|
|
-
|
(25)
|
|
Major impairment and restructuring
charges
|
|
|
(148)
|
(41)
|
|
(Loss) / profit on disposal of
businesses
|
|
|
(9)
|
12
|
|
Finance costs
|
|
|
(146)
|
(110)
|
|
Investment income
|
|
|
64
|
49
|
|
Share of losses of
associates
|
|
|
(3)
|
(1)
|
|
Income tax expense
|
|
|
(56)
|
(80)
|
|
Profit for the year from continuing
operations
|
|
|
108
|
264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes on the Preliminary
Accounts
for the year ended 31st
March 2024
20
|
Events after the balance sheet date
|
|
|
|
|
On 30th April 2024, the
group completed the sale of its Battery Systems business. Refer to
note 12 for further information.