When a major shareholder publicly complains that you are running a business badly, it's important to listen. Johnson Matthey (JMAT) agrees – this week, it said it would make some of the changes demanded by its largest shareholder, Standard Investments, which launched a public campaign late last year to grab the attention of the catalytic converter company’s bosses.
Tip style
Value
Risk rating
Medium
Timescale
Medium Term
Bull points
- Hybrid car market looks resilient
- Investor campaign is pushing for greater cash focus
- Capex falling from next year
Bear points
- Uneven profits because of precious metals prices
- Uncertain long-term outlook
Johnson Matthey has been looking for a new business model for a long time. More than 200 years old, it existed well before cars, let alone catalytic converters, but so far investments designed to ensure the company outlives petrol and diesel vehicles have not paid off.