Weir Group shares soar as engineer boasts document order e book and income are lifted by mining sector demand
- The FTSE-250 engineering firm is on monitor to fulfill its 2023 targets
- CEO Jon Stanton cites ‘twin calls for for decarbonisation and financial growth’
Weir Group income jumped by 1 / 4 final 12 months after orders boomed on the again of strong demand from the mining sector as the business appears to be like to decarbonise.
The FTSE 250-listed engineering group reported a 21 per cent enhance in revenues at fixed forex ranges to just about £2.5billion as complete working revenue jumped 25 per cent to £395million.
Growth was driven in half by a strong second half and remaining quarter, with orders rising 8 per cent in the remaining three months of the 12 months.
In demand: Weir Group has bolstered its backside line amid strong demand and drive to sustainability
The firm has elevated its remaining dividend by 57 per cent to 19.3p, making it 32.8p for the 12 months.
Jon Stanton, chief government officer stated: ‘The mining business is taking part in an important function in assembly the twin calls for for decarbonisation and financial growth, ensuing in multi-decade demand growth for important metals. Weir is the centered mining expertise chief that’s properly positioned to capitalise.
‘This is mirrored in the confirmed efficiency of our mining companies by the cycle and was additional evidenced in 2022.
‘We are making mining smarter, extra environment friendly and sustainable. We are rising quicker than our markets, strengthening margins and money and lowering our CO2 footprint.’
Looking forward the firm stated it has begun 2023 with a ‘document order e book’ amid optimistic circumstances in the mining market, with excessive exercise ranges and a give attention to sustainable operations driving demand.
The firm says its longer-term prospects are strong underpinned by decarbonsiation efforts and the transition to sustainable mining.
It is on monitor to realize its goal of 17 per cent working margin this 12 months, in addition to income and revenue growth.
Analyst agency Peel Hunt stated it expects Weir to see 5 per cent income growth this 12 months, with gross earnings reaching £400 million.
Weir’s share value rose 8.9 per cent or 169.00p to 2,068.00p over the morning following its outcomes.