Dundee battery maker now on road to profit

Automotive technology: Company’s bright prospects

The world’s biggest auto catalysts maker expects its battery division in Dundee to perform better this financial year.

Johnson Matthey said the former Axeon battery company in Wester Gourdie that it bought in 2012 had made significant progress.

The parent company had not expected the Dundee-related operation to make a profit in the first few years because of the nature of the business.

“We are now expecting it to break even excluding acquisition costs in 201516,” said a spokeswoman.

The rebranded Johnson Matthey Battery Systems has been involved in projects for major car manufacturers, including providing the battery power for the electric McLaren P1 hypercar.

Sales in the battery section rose from £69 million to £91m in the last year, but the underlying operating loss also rose from 18.3m to £22.1m.

The largest division – emission control technologies, which makes catalytic converters – had sales of £1,782m and underlying operating profit of £236.9m, a return of 13.3%.

Chairman Tim Stevenson said 2014-15 had been a good year for the company, with a robust strategy for organic growth.

He said the company was in great shape and has an exciting future with the long-term drivers firmly in place.

He told shareholders: “I am confident that these, together with our robust strategy, should ensure the continued growth of Johnson Matthey over the coming years.”

Johnson Matthey sold its research chemicals unit for £256m and its gold and silver refining business for £124m.

The company regards itself as a leader in sustainable technologies.