Johnson Matthey raised its final dividend despite reporting that operating profits fell by 27% to £359m in the year to the end of March, as an impairment charge of £90m and a legal settlement of £50m weighed.

The £50m legal settlement, announced in February, was related to a lawsuit against the company.

The implementation of the group's restructuring programme resulted in costs of £43m which was below the company's previous guidance of £50m to £65m, while the closure of its health sector Riverside led to charge of £36m, the firm also recorded a £11m headwind related to its water technologies business.

In the year to March 31, revenues jumped 17% to £14.1bn and pre-tax profits fell 31% to £320m.

The uptick in revenue was supported by strong performance in its clean air division as revenue rose 9% for the year after both heavy duty diesel sales and light duty sales were ahead of global vehicle production.

'Clean Air is expected to deliver a strong 2018 to 2019 as significant share gains in Light Duty Europe come through,' the company said.

The efficient natural resources division grew 4% but operating profit was lower due to lower licensing income and destocking.

The health division saw revenue grow 6% but delivered lower operating profit in the year.

The new markets division, meanwhile, saw sales fall 2% but operating profit rose 34%, led by the phasing of orders for battery systems.

The final dividend of 80p per share was proposed, up 7% from 75p.

In the coming year, the company expected mid to high single digit growth in both operating performance and earnings per share, and second half performance to be stronger.

The company would target cost savings of £7m relating to the restructuring programme started in the 2017 to 2018 financial year.