Weir Group PLC (LON:WEIR) reported its financial results for the full year ended 31 December 2018
§ Strong execution across the business
o Operating profit2 on a like-for-like basis up 13%; +22% including ESCO
o Minerals orders up 14% with original equipment momentum building; margins of 17.7%
o Oil & Gas operating profit2 of £96m in line with guidance in Q4
o 86% increase in Total Group cash from operations to £411m
§ Portfolio transformation delivering ahead of plan
o ESCO margins +170bps to 13.0% post acquisition
§ $15m annual run rate cost synergies delivered in H2
§ Targeting medium-term revenue synergies of at least $50m
o Flow Control sale agreed for Enterprise Value of £275m
§ We are Weir strategy driving organic growth
o Technology pipeline focused on efficient, smart, sustainable industry solutions
o £93m in additional orders from Minerals integrated solutions strategy
§ Total Group exceptional costs of £209m primarily related to portfolio transformation
§ 2019 outlook: “another year of good constant currency revenue and profit growth”
|
2018 |
2017 |
As reported |
Constant Currency1 |
Like-for-like5 |
|
|
Continuing Operations3 |
|
|
|
|
|
|
Orders1 |
£2,544m |
£2,003m |
n/a |
27% |
15% |
|
Revenue |
£2,450m |
£1,986m |
23% |
28% |
15% |
|
Operating profit2 |
£348m |
£296m |
18% |
22% |
13% |
|
Profit before tax2 |
£310m |
£255m |
22% |
26% |
n/a |
|
Reported profit after tax |
£53m |
£184m |
-71% |
n/a |
n/a |
|
Earnings per share2 |
94.7p |
91.7p |
3% |
n/a |
n/a |
|
Total Group |
|
|
|
|
|
|
Reported profit after tax |
£18m |
£160m |
-89% |
n/a |
n/a |
|
Earnings per share |
7.4p |
72.7p |
-90% |
n/a |
n/a |
|
Cash generated from operations4 |
£411m |
£221m |
86% |
n/a |
n/a |
|
Dividend per share |
46.2p |
44.0p |
5% |
n/a |
n/a |
|
Net debt6 |
£1,127m |
£843m |
£284m |
n/a |
n/a |
Jon Stanton, Weir Group Chief Executive Officer said:
“The last year has been transformational for the Group. With ESCO, we completed our largest ever acquisition while also agreeing the sale of the Flow Control division. The result is a more focused and higher-quality global business that is simpler and stronger with more than 80% of the Group’s revenues from attractive upstream mining and oil and gas markets. At the same time, we have made significant progress on our We are Weir strategy and delivered good order and profit growth, underpinned by strong cash generation.
“Looking to the full year, we currently expect our mining and infrastructure markets to continue to benefit from positive industry fundamentals with oil and gas activity to improve modestly from current levels. Overall, assuming market and macro-economic conditions remain supportive, we anticipate the Group will deliver another year of good constant currency revenue and profit growth, supported by strong execution of our We are Weir strategy.”
