Final Results
Weir Group PLC
19 March 2003
Date: 19 March 2003
THE WEIR GROUP PLC
PRELIMINARY RESULTS 2002
'GOOD PROGRESS IN A CHALLENGING YEAR'
Results for 52 weeks ended 27 December, 2002
Consolidated Group Results
2002 2001 Change
Restated(1)
Turnover £841.7m £926.7m -9%
Operating Profit(2) £62.2m £62.7m -1%
Pre-tax Profit(2) £60.0m £60.9m -1%
Earnings per share(2) 22.6p 22.8p -1%
Pre-tax Profit £59.4 £35.4m +68%
Dividend 12.0p 11.6p +3.4%
Order Input(3) £650.9m £679.8m -4%
Cash in hand £1.9m -£66.0m +£67.9m
(1) Restated to reflect the application of average exchange rates to 2001
figures and the implementation of FRS17 (Retirement Benefits) and FRS19
(Deferred Tax)
(2) Excludes goodwill amortisation and exceptionals
(3) Continuing operations excluding Joint Ventures and Associates, calculated at
constant 2002 Exchange Rates
HIGHLIGHTS
• Profit in line with previous year despite difficult market conditions
• Strong performance from Minerals and Services divisions
• Improved margins and operational performance from Engineering Products and
Services
• Strong balance sheet closing 2002 with zero debt
• Dividend increase
The Chairman of the Weir Group, Sir Robert Smith, commented: 'Despite difficult
market conditions, Group results for 2002 were similar to last year due to
margin improvements and improved operational performance in our Engineering
Products and Services businesses, offsetting reduction in our Techna Division
and associates' earnings. Once again, cash generation was excellent and the
Company ended 2002 with no net debt.
'The current economic and geopolitical uncertainty makes it particularly
difficult to predict the outlook for the year ahead. However, provided economic
conditions remain similar to those experienced in 2002, by continuing to
implement our strategy, we expect a further improvement in productivity and
margins in our Engineering Products and Services businesses. These improvements
will offset, at least in part, the impact of the lower second half 2002 order
book and the increased pension charges.
Furthermore, given Weir's ungeared balance sheet and strong cash generation we
are confident the Group is well positioned for future growth as and when
external conditions improve.'
Contact details: The Weir Group PLC Available through UBS Warburg
Mark Selway, Chief Executive Tel. 020 7567 8000 (switchboard);
Helen Walker, Public Relations Manager (Mobile: 07789 032296)
The Maitland Consultancy Tel. 020 7379 5151
Suzanne Bartch (Mobile: 07769 710 335)
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SUMMARY OF RESULTS
Pre-tax profit, excluding goodwill amortisation and exceptionals, was £60.0m
(£60.9m in 2001) despite a 9% reduction in Group turnover to £841.7m (£926.7m in
2001). Strong performance from our Minerals and Services Divisions and margin
and productivity improvements in our Engineering Products and Services
businesses enabled us to deliver profits at a similar level to last year.
There were several separate items classified as exceptional in 2002. Charges
arose from the closure of our Hazleton, Pennsylvania foundry at a cost of £1.6m
and the closure of our Girdlestone pump operations at Ipswich at a cost of
£2.7m. Offsetting these charges was the profit arising from the disposal of our
22.5% stake in First Engineering and the sale of the turbo drilling operations
of Neyrfor-Weir amounting, in total, to £10.5m.
With an effective tax rate of 23% on profits before exceptional items and
goodwill amortisation, earnings per share on this basis, amounted to 22.6p
(22.8p in 2001). Including exceptional items, earnings per share on an FRS3
basis rose to 24.7p (13.5p in 2001).
Cash generation was excellent with cash flow from operations of £68.1m in spite
of an £11.3m adverse flow on the funding of pension and post retirement costs.
The year ended with a cash in hand position of £1.9m, showing a £67.9m
improvement from the previous year (net debt £66.0m in 2001).
Order input from continuing operations, excluding Joint ventures and associates,
was 4% down at £650.9m (£679.8m in 2001). However, excluding the Group's Techna
division (formerly Contracting), order input was up £3.4 million to £597.4
million.
DIVIDEND
The Board is recommending a final dividend of 8.75p per share making a total
distribution for year of 12.0p, an increase of 3.4% on previous year (11.6p in
2001). The dividend will be paid on 2 June 2003 to shareholders on the register
at close of business on 2 May 2003.
REVIEW OF RESULTS
The results from the Engineering Products and Services businesses were stronger
when compared with last year. However, due to the challenging market conditions,
the Group's Techna Division and associate businesses had a difficult year. In
the case of Techna, as was expected, the timing of contractual completions also
impacted profits.
Engineering Products
Our Engineering Products business includes the operations of our Minerals, Clear
Liquid and Valves and Controls divisions. As anticipated at the time of the
interims the power generation end market remained soft although other major end
markets held up relatively well.
In Engineering Products operating margins grew to 7.6% (7.2% in 2001) despite a
3% reduction in turnover to £429.6m in 2002 (£444.3m in 2001). This growth,
which was, in the main, driven by stronger performances in the Minerals and
Valves and Controls Divisions, offset the effects of reduced volumes in our
Clear Liquid pump operations and increased competition in most product areas.
The Minerals Division had an excellent year growing its order book, margins and
cash flow despite continued softening of its markets in the United States and
Europe. The South American operations continued to produce year on year growth
in both sales and profits, building strong relationships with the mining majors
in the region.
Engineering Services
Our Engineering Services business includes the operations of our main UK service
business, Weir Engineering Services, and our Canadian service and distribution
business.
Engineering Services turnover was £150.7m, 13% above the £133.5m achieved in
2001. Operating Profits of £15.2m were up 26% (£12.0m in 2001) and operating
margins improved to 10.1% against 9.0% in 2001. Increased sales and management
actions to improve productivity contributed to this excellent performance.
Weir Engineering Services grew sales 29% mainly due to its hydro refurbishment
and asset management activities and the valve services activities which were
transferred to this business from the Valves and Controls division (£7.6m). A
highlight of 2002 was the work undertaken in the area of upgrades to hydro power
stations in line with the UK Government's renewable energy programme.
Our Canadian services business grew its profits by almost 50% through cost
reduction and restructuring initiatives, which in turn has led to a more
customer-focused operation.
Techna
Our Techna Division includes those businesses involved in design and project
management of large scale capital projects primarily in the water treatment,
defence, nuclear and liquid gas handling sectors. Due to the current market
conditions, all of these areas have been impacted by contract deferrals during
the course of 2002.
Techna's turnover was down 1.3% at £105.0m (£106.4m in 2001). Operating profit
at £5.0m was down 50.0% (£10.1m in 2001) due to the timing of contract
completions and their impact on profit taking in 2001 which, as flagged at the
interims, was not repeated in 2002.
This month Techna was awarded a US$25 million contract to design and project
manage the build of a desalination plant located in Kindasa, Saudi Arabia.
Joint ventures and associates
Weir's share of turnover from Joint ventures and associates at £101.4m reduced
by 28% against 2001 (£141.4m). The timing of profit recognition milestones on
the major Vanguard refit at DML and the sale of our stake in First Engineering
reduced operating profits to £7.7m, 12.5% below 2001 (£8.8m) while operating
margins improved to 7.6% against 6.2% in 2001.
Pensions
The Board adopted FRS17 with effect from January 2002 and the results announced
reflect the impact of the new standard. The actual increase in pension charges
was £1.8m above the restated 2001 figure or £2.1m above the SSAP24 charge
reported last year.
The reduction in the AA corporate bond interest rate and the fall in world
equity markets has caused the deficit in the Group defined benefit plans to
increase significantly during the year, from £19.4m to £102.1m at the close.
This has resulted in an expected £5.8m increase in our 2003 pension charge when
compared to 2002. To address the deficit in the Group's main UK plan, with
effect from 1 April 2003 members' and the company's contributions will each be
increased by two percent of pensionable salary. Furthermore a £10m cash
contribution will be made to this plan on 31 March 2003.
STRATEGY
Our programme of operational and strategic change is making good progress. The
2002 results in Engineering Products and Services businesses validate our belief
that operational improvements provide the best short-term opportunity to deliver
margin, earnings and cash flow improvement in the face of adverse market
conditions.
During the year we successfully completed the planned divestments and closure of
non-core businesses primarily in the UK.
In July 2002, the Group announced the sale of the turbo-drilling operations of
Neyrfor-Weir to Smith International for net proceeds of £14.9 million. This
resulted in a net gain of £2.1m which is included in the exceptional items
described above.
In October we sold our 22.5% stake in First Engineering, the railway
infrastructure maintenance company, to Peterhouse Group PLC for a total
consideration of £11.9m cash and a holding, of new Peterhouse shares, valued at
£2.3m, which were subsequently sold. The disposal crystallised an exceptional
profit of £8.5m which is included in the exceptional items described above and
eliminated the Group's exposure to the UK rail sector.
The disposals of the unprofitable French actuator business from the Valves and
Controls Division and the US speciality injection moulding business from the
Clear Liquid Division gave rise to proceeds of £3.4m and an insignificant book
loss.
These actions improve significantly the focus of the Group and release financial
and management resources to facilitate progress in the operational and strategic
development of the business.
The operational actions taken to address performance are progressing well across
all divisions. The key management focus for 2003 is to ensure that the changes
we have initiated are fully implemented to yield their potential. At the same
time we will continue to invest in new products and in growth sectors of our
business.
THE BOARD
Sir Ronald Garrick retired from the Board on 30 June 2002 after almost 40 years
with the Group, 20 years as chief executive. His personal dedication,
professional experience and insight during his long association with the Group
has been invaluable.
David Newlands and Dr Chris Fay, who have been non-executive directors since
1997 and 2001 respectively, have indicated their intention not to seek
re-election at the annual general meeting in May 2003. Their wise and helpful
counsel during their time in office has been of immense value to the Group.
On 17 February 2003, Michael Dearden joined the Board as a non-executive
director. Michael is a former executive director of Burmah Castrol plc and is
currently a non-executive director of Johnson Matthey plc and Travis Perkins
plc. His marketing and industrial experience at an international level is
particularly relevant to the Weir Group's strategic ambitions.
OUTLOOK
The current economic and geopolitical uncertainty makes it particularly
difficult to predict the outlook for the year ahead. Currently in our Minerals,
Clear Liquids and Valves divisions we are experiencing ongoing market and
competitive pressure. The Services Division is continuing to experience strong
enquiry levels whilst Techna remains affected by the deferment of large capital
projects.
However provided economic conditions remain similar to those experienced in
2002, by continuing to implement our strategy, we expect to further improve
productivity and margins in our Engineering Products and Services businesses.
These improvements will offset, at least in part, the impact of the lower second
half 2002 order book and the increased pension charges.
In 2002 we have made further progress to strengthen our financial position.
Given the Group's ungeared balance sheet and strong cash generation we are
confident that it is well positioned for future growth as and when external
conditions improve. In the short term this financial strength positions us well
to weather the current uncertain market conditions.
THE WEIR GROUP RESULTS
Summary of results
AUDITED RESULTS
Consolidated Profit & Loss Account
for the 52 weeks ended 27 December 2002
Before Before
amortisation amortisation
of Amortisation of Amortisation
goodwill & of goodwill goodwill & of goodwill
exceptional & exceptional exceptional & exceptional
items items Total items items Total
2002 2002 2002 2001 2001 2001
(restated) (restated) (restated)
Notes £'000 £'000 £'000 £'000 £'000 £'000
Turnover 1
Group - continuing 685,246 - 685,246 703,963 - 703,963
operations
- discontinued 15,964 - 15,964 36,481 - 36,481
operations
701,210 - 701,210 740,444 - 740,444
Share of - joint 9,814 - 9,814 10,091 - 10,091
ventures
- associates 91,631 - 91,631 131,304 - 131,304
- discontinued 39,051 - 39,051 44,910 - 44,910
associate
841,706 - 841,706 926,749 - 926,749
Operating profit 1, 2
Group - continuing 50,056 (4,289) 45,767 53,783 (4,110) 49,673
operations
- discontinued 2,699 - 2,699 (2,738) - (2,738)
operations
- goodwill - (6,671) (6,671) - (6,558) (6,558)
amortisation
52,755 (10,960) 41,795 51,045 (10,668) 40,377
Share of - joint 1,813 - 1,813 2,470 - 2,470
ventures
- associates 5,870 (182) 5,688 6,316 - 6,316
- discontinued 1,797 - 1,797 2,911 - 2,911
associate
62,235 (11,142) 51,093 62,742 (10,668) 52,074
Exceptional items 2
Profit / (loss) on disposal &
closure
of discontinued - 10,539 10,539 - (14,850) (14,850)
operations
Interest & other income
Group net interest & other (3,765) - (3,765) (7,278) - (7,278)
income
Share of joint ventures' 34 - 34 22 - 22
interest
Share of associates' (253) - (253) 54 - 54
interest
Other finance income 1,779 - 1,779 5,381 - 5,381
Profit on ordinary 1 60,030 (603) 59,427 60,921 (25,518) 35,403
activities before tax
Tax on profit on ordinary 3 13,822 (4,796) 9,026 14,942 (6,775) 8,167
activities
Profit on ordinary activities 46,208 4,193 50,401 45,979 (18,743) 27,236
after tax
Minority interest 245 - 245 16 - 16
Profit attributable to The Weir 45,963 4,193 50,156 45,963 (18,743) 27,220
Group PLC
Dividends 4 24,500 - 24,500 23,478 - 23,478
Transfer to reserves 21,463 4,193 25,656 22,485 (18,743) 3,742
Earnings per share 22.6p 2.1p 24.7p 22.8p (9.3p) 13.5p
Diluted earnings per 24.6p 13.4p
Notes to the preliminary results
1. Turnover & profit on ordinary activities before tax
Turnover and profit on ordinary activities before tax were contributed as shown
in the table below. For comparative purposes 2001 figures for this note have
been restated at the 2002 average exchange rates with the aggregate adjustment
being made on the 'Exchange adjustment - Group' line. The basis of the segmental
analysis of operations has been amended to disclose the results of the Techna
Division as a separate segment (formerly within Engineering Products) in order
to more fully disclose the impact of this division's activities on the Group's
results.
Turnover Turnover Profit Profit
2002 2001 2002 2001
£'000 £'000 £'000 £'000
Engineering Products:
Group - continuing - excluding exceptionals 429,610 444,314 32,810 32,193
- operating exceptional items - - (4,289) (4,110)
- discontinued 3,459 18,472 174 (2,484)
433,069 462,786 28,695 25,599
Share of associate 15 13 (1) 28
433,084 462,799 28,694 25,627
Techna:
Group 104,968 106,401 5,016 10,115
Share of joint venture 549 1,126 5 2
105,517 107,527 5,021 10,117
Engineering Services:
Group - continuing 150,668 133,485 15,168 12,029
- discontinued 12,505 17,579 2,525 (285)
163,173 151,064 17,693 11,744
Share of joint ventures 9,265 8,965 1,808 2,468
Share of associate 91,616 131,291 5,871 6,288
Share of associate - discontinued 39,051 44,910 1,797 2,911
303,105 336,230 27,169 23,411
Segmental totals
Group 701,210 720,251 51,404 47,458
Joint ventures & associates 140,496 186,305 9,480 11,697
Goodwill amortisation - Engineering Products - - (6,671) (6,509)
Goodwill amortisation - associates - - (182) -
Unallocated costs - - (2,938) (2,298)
Exchange adjustment - Group - 20,193 - 1,726
841,706 926,749 51,093 52,074
Exceptional items
- Engineering Products - - (48) (13,881)
- Engineering Services - - 10,587 (969)
Interest & other income - - (2,205) (1,821)
841,706 926,749 59,427 35,403
2. Exceptional items
2002 2001
£'000 £'000
Operating exceptional items (4,289) (4,110)
Provision has been made in the year to cover the net costs of closure (including
tangible asset impairment losses) of the foundry activities at Hazleton Pumps
Inc and the operations of Weir Pumps Limited at Girdlestone. In 2001 provision
was made in respect of Weir Floway Inc's contribution to future environmental
clean-up costs based on independent expert advice on the known facts and
represented management's best estimate of Weir Floway Inc's share of the costs
of the clean-up programme. The actual costs when incurred may be higher or lower
than this estimate.
Profit / (loss) on disposal of discontinued 2,066 (969)
operations
Profit on disposal of associate company 8,473 -
Losses on - net costs of closure - (9,591)
closure of
discontinued
operations
- goodwill written off on closure - (2,456)
- goodwill previously deducted directly from reserves - (1,834)
Non operating exceptional items 10,539 (14,850)
The profit on disposal of discontinued operations relates to the disposals of
the businesses of Molded Products, Actuators and the turbo-drilling operations
of Neyrfor-Weir Limited which were completed on 28 June 2002, 1 July 2002 and 31
July 2002 respectively. The results of these businesses for the period to the
dates of disposal have been shown in the profit and loss account as
'discontinued' and prior year figures have been restated accordingly. The
comparative figure for the 52 weeks to 28 December 2001 relates to the disposal
of Weir Systems Limited which was completed on 28 June 2001. The results of Weir
Systems Limited for the prior year to the date of disposal have been shown in
the profit and loss account as 'discontinued'.
The profit on disposal of associate company relates to the disposal of First
Engineering Limited which was completed on 7 October 2002. The results of this
business for the period to the date of disposal have been shown in the profit
and loss account as 'discontinued' and prior year figures have been restated
accordingly.
The comparative figure for the 52 weeks to 28 December 2001 for the loss on
closure of discontinued operations relates to the losses on closure of Tooling
Products Limited, G Perry & Sons Limited and to the Manchester operation of
Strachan & Henshaw Limited which were announced on 5 July 2001. The results of
these businesses for the prior year to date of closure have been shown in the
profit and loss account as 'discontinued'.
3. Tax
Before On Exceptional -
exceptional exceptional previous year
items items adjustments Total Total
(restated)
2002 2002 2002 2002 2001
£'000 £'000 £'000 £'000 £'000
Group - UK 2,594 2,594 3,182
Group - 8,896 - - 8,896 8,672
overseas
Joint ventures 166 - - 166 307
Associates 2,166 - - 2,166 2,781
UK tax on - (1,453) (2,554) (4,007) (6,117)
exceptional
item
Overseas tax on - 52 (841) (789) (658)
exceptional
item
Tax on profit 13,822 (1,401) (3,395) 9,026 8,167
on ordinary
activities
4. Dividends
2002 2001
£'000 £'000
On ordinary
shares:
Interim 3.25p per 12.5p share (2001: 6,635 6,373
3.15p)
Proposed final 8.75p per 12.5p share 17,865 17,105
(2001: 8.45p)
24,500 23,478
The directors recommend payment of a final dividend of 8.75p per ordinary share
for 2002 (2001: 8.45p) which, with the interim dividend of 3.25p per ordinary
share (2001: 3.15p), will make a total distribution for the year of 12p per
ordinary share (2001: 11.6p). Subject to the approval of shareholders at the
annual general meeting, payment will be made on 2 June 2003 to ordinary
shareholders on the register at close of business on 2 May 2003.
5. Basis of preparation
The preliminary results for the 52 weeks ended 27 December 2002 do not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985. These statements have been prepared on the basis of the accounting
policies set out in the Group's Annual Report & Accounts, except as noted below,
and were approved by the Board of directors on 19 March 2003. Full accounts with
an unqualified audit report will be lodged with the Registrar in due course.
Financial statements for the 52 weeks to 28 December 2001 are abridged
statements; full accounts with an unqualified audit report have been lodged with
the Registrar.
In preparing the financial statements for the 52 weeks ended 27 December 2002,
The Weir Group PLC has adopted FRS 17 'Retirement Benefits' in full, FRS 19
'Deferred Tax' and applied average rates of exchange instead of closing rates
for the translation of the profit and loss account and cash flow statements of
overseas subsidiaries, joint ventures and associates. The adoption of average
rates of exchange is more appropriate because this reflects more fairly the
Group's profits and losses and cash flow movements as they arise throughout the
accounting period.
The adoption of FRS 17 has resulted in a change in accounting policy for
pensions. Defined benefit pension scheme assets and liabilities measured under
FRS 17 now replace the SSAP 24 pension prepayments and provisions in the balance
sheet. Similarly in the performance statements FRS 17 accounting for pension
costs replaces SSAP 24 accounting. In the profit and loss account two new items,
expected return on assets and interest on pension scheme liabilities, are now
included under the heading 'other finance income'. Actuarial gains and losses
are reflected in the statement of total recognised gains and losses.
The adoption of FRS 19 has resulted in a change in accounting policy for
deferred tax. Deferred tax is recognised on a full provision basis in accordance
with the accounting policy described in the accounting policies section.
Previously, deferred tax was provided for on a partial provision basis, whereby
provision was made on all timing differences to the extent that they were
expected to reverse in the future without replacement.
The above changes in policy have resulted in prior year adjustments. The table
below shows the impact of the prior year adjustments on the financial statements
of the prior period and the effect of the changes in accounting policy on the
results of the current period relating to FRS17 and FRS19.
FRS 17 FRS 19 Total FRS 17 FRS 19 Total
2002 2002 2002 2001 2001 2001
£'000 £'000 £'000 £'000 £'000 £'000
Operating 4,055 - 4,055 (5,642) - (5,642)
profit
Exceptional 172 - 172 - - -
item
Other finance 1,779 - 1,779 5,381 - 5,381
income
Profit before 6,006 - 6,006 (261) - (261)
tax
Tax (1,698) (1,179) (2,877) 227 (3,384) (3,157)
Increase / (decrease) in 4,308 (1,179) 3,129 (34) (3,384) (3,418)
profit after tax
Decrease in (114,039) (14,219) (128,258) (28,756) (14,161) (42,917)
shareholders'
funds
The adoption of average exchange rates for translation purposes increased the
operating profit for the 52 weeks to 28 December 2001 by £1.1m. The impact on
the 52 weeks to 27 December 2002 was an increase of £1.6m. There is no impact on
shareholders' funds.
Consolidated Balance Sheet
at 27 December 2002
2002 2001
(restated)
£'000 £'000
Fixed assets
Intangible assets - goodwill 105,509 115,150
Tangible assets 97,676 116,029
Investments
Joint ventures - share of gross assets 9,343 9,629
- share of gross liabilities 3,199 3,683
6,144 5,946
Associates 13,468 20,895
Other 539 567
20,151 27,408
Total fixed assets 223,336 258,587
Current assets
Stocks 95,034 114,624
Debtors 186,090 197,395
Cash at bank & in hand 153,056 99,209
434,180 411,228
Creditors falling due within one year
Borrowings 11,898 15,581
Other creditors 186,331 194,759
198,229 210,340
Net current assets 235,951 200,888
Total assets less current liabilities 459,287 459,475
Less
Creditors falling due after more than one year
Loans 137,237 147,338
Obligations under finance leases 1,542 1,968
Provisions for liabilities & charges 33,114 35,701
Deferred income
Grants not yet credited to profit 147 276
Minority interest 560 422
Net assets excluding retirement benefits 286,687 273,770
Retirement benefits - asset - 484
-liability 106,594 24,134
Net assets including retirement benefits 180,093 250,120
Capital & reserves
Called up share capital 25,522 25,300
Share premium account 20,219 15,791
Capital redemption reserve 531 531
Profit & loss account 133,821 208,498
180,093 250,120
Consolidated Cash Flow Statement
for the 52 weeks ended 27 December 2002
2002 2002 2001 2001
(restated) (restated)
£'000 £'000 £'000 £'000
Cash inflow from operating activities
- funds generated by operations 59,739 72,266
- decrease in working capital 9,658 2,686
- cash spent on exceptional items (1,325) (3,748)
68,072 71,204
Dividends received from joint ventures 1,329 1,156
Dividends received from associates 1,811 4,361
Returns on investments & servicing of finance (3,510) (8,550)
Taxation (7,116) (5,294)
Capital expenditure & financial investment
- purchases (15,770) (15,996)
- sales 5,573 5,538
(10,197) (10,458)
Acquisitions & disposals
- acquisitions (927) (3,838)
- disposals of businesses 17,423 (1,047)
- disposal of associate 19,517 -
36,013 (4,885)
Equity dividends paid (23,766) (22,442)
Cash inflow before liquid resources & financing 62,636 25,092
Management of liquid resources (35,516) (12,946)
Financing - issue of shares 4,054 3,933
- new loans 96 9,586
- debt repaid (15,069) (22,376)
- foreign exchange hedging 3,246 (1,344)
(7,673) (10,201)
Increase in cash 19,447 1,945
Reconciliation of Net Cash Flow to Movement in Net Funds / (Debt)
2002 2001
(restated)
£'000 £'000
Increase in cash 19,447 1,945
Cash flow from debt repaid 15,069 22,376
Cash flow from new loans (96) (9,586)
Cash flow from management of liquid resources 35,516 12,946
Change in net funds / (debt) resulting from cash flows 69,936 27,681
Loans - acquired - (11)
Leases - inceptions (182) (876)
Exchange (1,859) 2,253
Movement in net funds / (debt) during the year 67,895 29,047
Net debt at 29 December 2001 (65,971) (95,018)
Net funds / (debt) at 27 December 2002 1,924 (65,971)
Reconciliation of operating profit to net cash inflow from operating activities:
2002 2001
(restated)
£'000 £'000
Operating profit 41,795 40,377
Depreciation, goodwill amortisation & grant credits 23,510 25,999
Surplus on disposal of tangible assets & investments (1,612) (1,378)
Funding of pension & post retirement costs (7,726) 3,566
Increase in provisions 3,772 3,702
Funds generated by operations 59,739 72,266
Decrease / (increase) in stocks 6,749 (5,639)
Decrease in debtors 2,131 24,568
Increase / (decrease) in creditors 778 (16,243)
Decrease in working capital 9,658 2,686
Cash spent on exceptional environmental provision (1,029) -
Cash realised / (spent) on exceptional closure costs 52 (2,692)
Cash spent on exceptional Warman reorganisation costs (348) (1,056)
Cash spent on exceptional items (1,325) (3,748)
Net cash inflow from operating activities 68,072 71,204
Statement of Total Recognised Gains & Losses
2002 2001
(restated)
£'000 £'000
Profit excluding share of profit for joint ventures & associates 43,409 18,535
Share of joint ventures' profit 1,681 2,185
Share of associates' profit 5,066 6,500
Profit attributable to The Weir Group PLC 50,156 27,220
Actuarial loss (129,832) (85,334)
Tax thereon 39,523 25,994
Exchange differences on foreign currency net investments (8,703) (7,416)
Tax thereon - (1,142)
Total recognised losses relating to the year (48,856) (40,678)
Prior year adjustment (42,917) -
Total recognised losses since last annual report (91,773) (40,678)
Reconciliation of Movements in Shareholders' Funds
2002 2001
(restated)
£'000 £'000
Total recognised losses (48,856) (40,678)
Dividends (24,500) (23,478)
Other movements
- new share capital subscribed 4,650 4,581
- cost of issuing shares (596) (648)
- goodwill reinstated on disposals & closures (725) 3,354
Net reduction to shareholders' funds (70,027) (56,869)
Opening shareholders' funds (originally £293,037,000
before deducting prior year adjustment of £42,917,000) 250,120 306,989
Closing shareholders' funds 180,093 250,120
Shareholders' funds are entirely attributable to equity interests.
This information is provided by RNS
The company news service from the London Stock Exchange KGFZM
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