Russ Mould, investment director at AJ Bell, said: “Johnson Matthey has served shareholders a nasty shock with the news not only of a delay to the sale of its Catalyst Technologies division to US industrial outfit Honeywell but also a big cut in the sale price.
“At least there is no questioning the logic of a sale – with the agreement with Honeywell to slash the price tag reflective of the weak performance of the business unit in the current financial year.
“Catalyst Technologies provides process technologies and catalysts to the chemicals and oil industries, with a focus on licensing technology for producing sustainable aviation fuels, low-carbon hydrogen, and methanol.
“Several of its licensing opportunities have been deferred of late and the market backdrop in general has been unhelpful.
“Johnson Matthey already faces disruption to its biggest profit engine – the catalytic converter focused Clean Air division – from the move to electric vehicles.
“A move to a new business model emphasising cash generation may be progressing well and trading may be in line with expectations but it can ill afford the kind of setback it has endured today.”
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