Weir Group posts big jump in 1H profits, raises guidance

(Sharecast News) - Weir Group reported burgeoning sales and profits for the first half of 2023 that led management to raise its full-year guidance. "Global decarbonisation is driving growth in demand for critical energy-transition metals and our customers' focus on more sustainable extraction and processing techniques necessitates the adoption of new technologies," chief executive officer, Jon Stanton, said.

"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."

Revenues for the six months ending on 30 June jumped 19% on a reported basis to reach £1.3bn, driving a 26% increase in adjusted operating profits to £212m.

Statutory profits before tax meanwhile jumped 35% to £170m.

Net debt reduced by £45m to £842m.

For the full-year, operating profits were now seen coming in towards the upper end of the current range of analysts' estimates.

Management added that Weir was on track to hit its operating margin target of 17% and for free cash conversion of 80-90%.

The mining engineering group's dividend per share was hiked by 32% to 17.8p.

As of 1212 BST, shares of Weir Group were up by 3.35% to 1,896.50.