Mining technology firm Weir Group has seen profits leap by nearly 20 per cent on the back of what the chief executive described as “positive mining production trends”.
The Glasgow-based mining technology firm announced an 18 per cent adjusted operating profit leap to £376m, up from £318m in on the back of increased volumes, while adjusted operating margin on a constant currency basis was 19.4 per cent against 18.3 per cent the year prior.
Revenue increased 12 per cent on a constant currency basis to £1.9bn, up from £1.7bn last year, driven by a continued strong order book and resilient against a £38m Russian market exit.
Operating cash flow increased by eight per cent to £418m, which the company said was partially offset by a modest increase in working capital outflow from £18m in 2022 to £26m .
Dividend per share rose 18 per cent to 38.6p from 32.8p the year prior, while net debt dropped from £797m to £690m.
Jon Stanton, the firm’s chief executive officer said that Weir is, “delivering on the compelling value creation opportunity we set out as a focused mining technology company.”
“Our unique capabilities are enabling us to capitalise on the structural growth in demand for critical metals and the transition to more sustainable mining,” he added.
“In 2023 we made significant progress against these goals, taking advantage of positive mining production trends to win market share and grow orders in our mining aftermarket business, while making good progress with our technology focused growth initiatives.”
As we go into 2024, we have a growing installed base, a strong order book and ore production trends in our mining markets are positive. We expect to deliver another year of growth in revenue, profit and cash generation, and to further expand our operating margins with progress towards our 2026 target of 20 per cent.”
The group’s strong showing comes amidst a gloomy outlook for the mining sector, as UK giants Glencore and Anglo American both posted profit crashes and expected production, job cuts last week.
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