Johnson Matthey is expecting its group operating performance for 2021-22 to be in line with current market expectations.

As per the company, growth was driven by improved performance in Clean Air, where we saw increased activity in autos as end markets partially recovered and support from the continued delivery of our transformation programme. Efficient Natural Resources benefited from higher average precious metal prices. In Hydrogen Technologies, performance reflected our investment and scale up of this business. Health was below expectations and, as previously announced, we have agreed the disposal of this business which is expected to complete in mid-2022.

Clean Air full year operating performance is expected to be above the prior year reflecting a recovery in demand in the first half. However, volumes remain constrained by supply chain disruption across the industry, principally due to the continued shortage of semi-conductor chips which is impacting production across the global automotive market.

We continued to make good progress on our Clean Air transformation programme, moving production into newer, more efficient plants. We remain focused on driving efficiency and cash generation across our operations with a clear plan to deliver at least £4 billion of cash over the next decade, with significant profitability and cash generation expected beyond this.

Liam Condon, Chief Executive, commented, "I am excited to have joined Johnson Matthey, and in my first month as Chief Executive I have been deeply impressed with the people and the quality of our technology. Looking at our full year results, it is pleasing that despite significant market uncertainty these are expected to be in line with current market expectations, with good performances in our core businesses giving a solid base from which to build further.

Together with my team, we are reviewing our strategy and focused on providing a clear pathway to demonstrate how the group will create value from the many exciting opportunities we face as the world transitions to net zero. I look forward to moving at pace and sharing our conclusions with you at our preliminary results on 26th May."

Hydrogen Technologies is expected to report an operating loss, due to increased investment to support growth and manufacturing constraints as we scale up the business and utilised capacity to qualify new customer products. Work is ongoing to expand our manufacturing capacity in the UK and China with the first phase expected to commence production in early 2023.

For our Battery Materials business, as expected we will report an operating loss in the year. As previously announced, we have fully impaired the carrying value of our battery materials assets and communicated associated exit costs, which together will result in an exceptional item outside of underlying operating profit of up to £465 million in our full year results.

In Value Businesses overall performance was strong. Medical Devices and Diagnostic Services were stronger as we benefited from actions taken to drive improved business performance and as demand improved following COVID-19. The sale of Advanced Glass Technologies was completed on 31st January 2022 for a consideration of £178 million, resulting in a profit on sale in excess of £100 million.

Looking forward to the year ending 31st March 2023, we are entering a period of greater political and economic uncertainty with both the ongoing disruptive effects of COVID-19 and the impacts of the conflict in Ukraine.

We expect continued supply chain disruption for our automotive customers, increased cost inflation which we will seek to recover through pricing and efficiencies, and continued near-term market volatility. We are navigating this challenging period with a strong focus on enhancing our overall efficiency and disciplined execution of our strategic priorities. Longer term we expect the current geopolitical situation to drive a significant acceleration towards a net zero carbon economy, with corresponding investment to position us for the significant growth opportunities from our sustainable technology portfolio.