Weir in better shape for 2017 opportunities

Glasgow-based pump maker Weir Group suffered a 31% fall in pre-tax profit last year but saw signs of recovery in the last quarter.

Revenue was down 11% at £1.845 million and profit before tax was down from £219m to £170m in 2016, representing a 22% fall in reported growth and 31% fall on a constant currency basis.

Chief executive Jon Stanton said: “Following a challenging and prolonged downturn, the group returned to growth in the fourth quarter of 2016 as our main markets showed signs of improvement and we benefited from our ongoing investment in new technology and long-term customer relationships.”

Revenues from minerals had increased and oil and gas had extended its technology leadership amid difficult end markets. Flow control benefited from recent restructuring which he said supported margins in challenging downstream energy markets.

Mr Stanton had been encouraged in recent months by macro commodity trends and signs in Weir’s mining and oil and gas markets pointing to a cyclical upturn.

He continued: “Our new strategic priorities will strengthen our capabilities and enable us to fully capture opportunities presented by improving markets, although there is a range of views about the precise shape of the recovery in 2017.”

The group expected strong cash generation and good growth in constant currency revenues.

Weir Group chief executive Jon Stanton detected an improvement at the end of last year.