Johnson Matthey, the world's biggest maker of autocatalysts, expects higher European sales of the exhaust emission control devices will help boost its performance in the next financial year, it said in reporting results yesterday.

However shares in the London-listed firm fell 4 per cent as investors worried about an unexpectedly sharp increase in debt caused by a rise in working capital, which the company said was mostly due to business growth and higher inventories.

“We have seen a £100 million improvement in working capital in April and I expect that to improve,” chief executive Robert Mac Leod told analysts in a results meeting.

Earlier, Johnson Matthey reported a 3 per cent rise in its underlying pretax profit to £440.1 million for the year to March 31st. – (Reuters)