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Weir Group PLC on Tuesday reported a rise in profit and revenue in the first half of 2023, with its outlook for the full year remaining positive. Pretax profit in the half-year ended June 30 increased by 35% to £170.3 million, up from £126.0 million the prior year. Revenue increased by 19% to £1.30 billion, a rise from £1.10 billion year-on-year. The company said this reflected ‘strong execution’ and a ‘record opening book’ with high level of orders from Canadian oil sands customers. Chief Executive Officer Jon Stanton said: ‘In the first half of the year we performed well, winning market share, growing orders and executing strongly to deliver significant growth in revenue and operating profit. With a positive book-to-bill we enter the second half with a record order book, excellent operating momentum and high activity levels in our mining markets.’ Net debt increased 5.6% to £842 million, from £797 million. Whilst cash generation increased to £173 million, up 73% from £100 million the year prior. Weir declared an interim dividend of 17.8 pence per share, up 32% from 13.5p per share the year before, which the company said reflected its ‘high levels of confidence’ in its strategy and future prospects. Weir said it had raised its full year revenue and profit guidance, and stated that it was confident of meeting cash conversion. ‘With a positive book-to-bill we enter the second half of the year with a record order book, and strong operating momentum... We remain on track to deliver our 2023 target of 17% operating margin, supported by operational efficiencies, further price realisation and the early financial benefits of performance excellence,’ said Weir Group. Shares in Weir Group were up 3.9% at 1,907.00 pence in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved
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