Engineer Weir sees momentum building

Scottish engineer Weir Group saw its shares move into reverse early yesterday despite reporting growing momentum in the business.

Earlier this month, the FTSE 250 group said it was seeing the benefit of an improving North American market.

It returned to the theme as it reported its half year results for the six months to June 30, saying the oil and gas division across the Atlantic had “delivered a great set of results with margins rapidly in recent weeks.”

Weir added it had made “good progress” as a group and “fully captured” opportunities in its main markets.

At £1.19 billion, total revenue for the period was 26% higher than a year ago and pre-tax profits before tax, exceptional items and amortisation was 12% up at £91.6m.

The declared profit for the period came in at £46.2m, up from £16.5m.

However, the update failed to cheer investors and the group’s stock moved more than 4% lower in morning trading.

Among the issues that may have weighed on minds was a loss within the group’s Flow Control business as a result of exceptional costs of £13m and a lower operating profit from its Minerals division.

“In our two main businesses we are transitioning from an intense downturn into a recovery and growth phase,” Weir CEO Jon Stanton said.

“Our focus is on ensuring we take full advantage of improving markets and further enhance our leadership positions by investing in our distinctive competencies – People, Customers, Technology, and Performance – where we have made substantial progress in the first half.”

Weir Group chief executive Jon Stanton.