Glasgow engineering giant Weir Group says Ukraine exposure minimal as order book swells

Weir Group, the Glasgow-headquartered global mining engineer, has reported solid full-year revenues and operating profits thanks to a surge in orders.

Weir Group was founded in 1871 by two Scottish engineers, James and George Weir. The company now has a global presence.
Weir Group was founded in 1871 by two Scottish engineers, James and George Weir. The company now has a global presence.

Results for the year to the end of December show that revenues nudged up 2 per cent, year on year, on a constant currency basis, to some £1.93 billion, while adjusted operating profits were 5 per cent higher at £296 million, on the same measure. On a reported basis, the figures eased slightly.

Orders grew by 22 per cent to almost £2.2bn. The FTSE 250 group declared a full-year dividend of 23.8p per share after making no payout in 2020. It also reported a £279m reduction in net debt to £772m.

Chief executive Jon Stanton said: “In 2021 we navigated successfully through a number of significant external challenges to deliver a strong performance for the year. Order momentum was strong, with a significant acceleration in Q4, and demand for recurring aftermarket consumables has now surpassed pre-Covid levels.

“As events continue to unfold in Ukraine and Russia, where our operations are relatively small, our priority is the safety of our impacted colleagues; we are doing all we can to support them and our thoughts are with them and their families.

“We start 2022 with a record order book and market conditions continue to be favourable. Subject to ongoing geopolitical uncertainty, and with Covid-19, inflationary and supply chain pressures likely to persist, we currently expect to deliver strong growth in constant currency revenue and profit this year and further progress towards our medium-term performance goals.”

He added: “Longer-term, our mining technology focus places Weir at the heart of a multi-decade growth opportunity in partnership with the global mining industry as it delivers the minerals essential for the clean energy transition more efficiently and sustainably.”

The firm also said it had taken a “swift response” to a cyber incident in September, with the financial impact being limited.

Analysts at brokerage Shore Capital noted: “Despite the adverse impact of the cyber incident on [the] financials, the underlying business and market trends have remained strong.

“Order trends across both mining and infrastructure have remained strong given the positive market backdrop and/or commodity prices.”

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