Weir Group sees strong growth driven by demand in the mining sector

The Weir Group’s profits jumped a quarter last year after orders boomed on strong demand from the mining sector as the industry appears to be decarbonising.

The FTSE 250-listed tech group reported a 21 percent rise in revenue at constant exchange rates to nearly £2.5 billion, while total operating profit rose 25 percent to £395 million.

The growth was driven in part by a strong second half and final quarter, with orders up 8 percent in the last three months of the year.

The company has increased its final dividend by 57 percent to 19.3 pence, bringing it to 32.8 pence for the year.

Jon Stanton, chief executive officer said: ‘Mining plays a critical role in meeting the twin decarbonisation and economic growth demands resulting in decades of growth in demand for critical metals. Weir is the focused mining technology leader well placed to capitalize.

“This is reflected in the proven performance of our mining operations through the cycle and was further proven in 2022.

‘We make mining smarter, more efficient and more sustainable. We are growing faster than our markets, strengthening our margins and cash and reducing our carbon footprint.”

Looking ahead, the company said it has entered 2023 with a “record order book” amid positive conditions in the mining market, with high levels of activity and a focus on sustainable operations that drive demand.

The company says its longer-term outlook is strongly supported by efforts to reduce carbon emissions and transition to sustainable mining.

It is on track to achieve its target of 17 percent operating margin this year, as well as revenue and profit growth.

Analyst firm Peel Hunt said it expects Weir to see sales growth of 5 percent this year, grossing £400 million.

The share price of Weir rose by 8.9 percent or 169.00p to 2,068.00p during the morning after the results.