August 13, 2022

Weir Group shares rise sharply as engineering agency posts robust efficiency within the first half and a stable order guide

  • Weir Group noticed income and revenue rise in its first half, outcomes present
  • Group is upbeat about its full-year prospects as share value climbs  

Glasgow-based engineering agency Weir Group expects full-year working revenue to hit ‘the higher finish’ of forecasts after having fun with stable progress within the first half.

Income on the FTSE 250-listed group surged 18 per cent at fixed currencies to £1.09billion within the six months to 30 June, on the again of optimistic value and quantity progress, whereas within the second quarter, income rose by 20 per cent. 

Adjusted working revenue got here in at £168million within the first half, representing a rise of 15 per cent on the identical interval a yr in the past. 

Outcomes: Weir Group’s adjusted working revenue got here in at £168m within the first half

The agency’s statutory pre-tax revenue rose to £126million, from £100million.

Weir Group shares rose sharply, and have been up 6.76 per cent or 100.50p to 1,588.00p this afternoon, having fallen by round 16 per cent within the final yr. 

The corporate revealed it deliberate to hike its interim dividend to 13.5p from 11.5p on account of the board’s ‘excessive ranges of confidence’ in its technique and future prospects.

Weir expects its annual working revenue to return in between £320million and £386million.  

See also  Beautiful pictures present final evening’s SUPERMOON because it rose over Edinburgh, Istanbul and San Francisco

Boss Jon Stanton stated: ‘Momentum continued to construct by means of the primary half as we gained document orders, executed strongly and made significant progress in delivering our know-how and sustainability roadmaps which underpin our progress and long run technique.

‘We enter the second half of the yr with a robust order guide and are managing by means of a posh working setting efficiently. In consequence, we proceed to count on to ship robust progress in fixed forex income and revenue this yr.’

Weir additionally unveiled a enterprise processes programme and stated it expects to grasp £30million annualised run-rate financial savings by 2025, ‘which is able to broaden working margins past 17 per cent.’ Extra particulars of the plan shall be unveiled at a capital market occasion in September, the corporate stated.

In a separate assertion, Weir introduced that Ricardo Garib is retiring as president of Weir Minerals on the finish of this yr, after 43 years’ service. He shall be succeeded by Andrew Neilson, who’s at present president of Weir ESCO.

A course of to determine a successor to Neilson as ESCO president is ‘nicely superior’, the corporate stated.