THE early take-up of devices to reduce car emissions prompted catalysts specialist Johnson Matthey to sound an upbeat note on prospects yesterday.

The chemicals and materials group, which employs 450 people in the region, reported an eight per cent rise in annual pretax profits after one-off costs, from £204.1m last year to £219.8m

Johnson, which has its catalyst division UK headquarters in Billingham, Teesside, reported increased demand from many leading car companies in Europe for soot filters removing particles from exhaust emissions, even though laws requiring their introduction do not come into force until 2010.

The UK company commissioned a new factory at Royston, Hertfordshire, to manufacture the filters, while it is also supplying manufacturers with products to meet standards relating to heavy duty diesel (HDD) vehicles, due in October.

Johnson yesterday raised expectations on the value of the market for catalysts for HDD vehicles to $700m (£375.2m) and said it expected to achieve a leading share of the sector in the years ahead.

Announcing its annual results, Johnson said profits from the catalysts division rose ten per cent to £134.2m in the year to March 31.

Elsewhere, continued strong demand for platinum helped the company's precious metals division to post a 20 per cent rise in profits to £62.2m, offsetting a 15 per cent fall for its pharmaceuticals materials arm at £33.8m. Chief executive Neil Carson said: "Johnson Matthey performed well last year and prospects for future growth are very encouraging."