Glasgow's historic Weir Group enters 150th year as 'transformed' business

Weir Group, the Glasgow-headquartered global engineer, has been transformed into a 'premium mining technology pure play' after sealing a major deal to sell its oil and gas division. Picture: Weir Group

Full-year results showed a dip in reported revenues and adjusted operating profits from continuing operations during 2020.

However, bosses hailed the group’s transformation into a “premium mining technology business”, having completed the sale of its oil and gas division. Some 80 per cent of revenues now come from “attractive” mining markets.

The group is now in its 150th year, having been founded in 1871 by two Scottish engineers, James and George Weir.

Chief executive Jon Stanton told investors: “The group delivered a highly resilient performance in what was an extraordinary year.

“This is a reflection of the fundamental strength of the business and its culture, together with the magnificent achievements of the people within the Weir global family.

“As we enter the group’s 150th year, Weir has been transformed into a premium mining technology provider that will help its customers become more sustainable and efficient and deliver the essential resources demanded by demographic trends and the fight against climate change.

“We’ve had a good start to 2021 and we expect to deliver growth in full-year constant currency profits subject to any further disruption from the ongoing Covid-19 pandemic.

“More broadly, underlying conditions are favourable and with the strong platform we’ve created we’re confident of outperforming our markets over the next three years and delivering sustainable long-term profitable growth.”

John Moore, senior investment manager at Brewin Dolphin, said: “Over the last year, Weir has demonstrated its durability as a business. If the company continues on its current track, it could shortly make a return to the FTSE 100 which would be validation of its recovery from the doldrums.

“The change in fortunes is also a vindication of its management team’s decision to exit the oil and gas sector and instead focus on mining, a market that has recovered well from the depths of the pandemic.

“While the dividend hasn’t been re-instated today, there is at least a commitment in its capital allocation policy to resume payments in the not-too-distant future.”

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