- Specialty chemicals company Johnson Matthey warned it expected to take a £50m hit to its trading performance due to Covid-19 in its financial year through March 2020.

In a trading update, the company said the impact was due to a combination of reduced demand in its clean air division, plus around £20m of delayed shipments caused by logistics challenges.

'As a result, we now expect to deliver group operating performance below current market expectations,' Johnson Matthey said.

For the upcoming financial year, the company said it was unable to provide guidance due to high levels of uncertainty associated with the impact of Covid-19.

Johnson Matthey said it had a 'strong' balance sheet and good access to liquidity, with substantial cash resources and significant undrawn bank facilities.

Its capital position included around £250m of unrestricted cash and a £1bn revolving credit facility of which £400m was currently drawn.

The company also had around £130m available under other committed facilities.

Johnson Matthey said decided to temporarily close most of its clean air plants across the world.

'This is with the exception of our operations in China which are ramping back up as the region starts to recover from Covid-19,' it added.

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