Interim Results
Weir Group PLC
19 August 2003
THE WEIR GROUP PLC
INTERIM RESULTS 2003
'SOLID PERFORMANCE IN A DIFFICULT MARKET ENVIRONMENT'
Results for 26 weeks ended 27 June 2003 (unaudited)
Group Results Continuing Operations 3
2003 2002 Change 2003 2002 Change
Turnover £393.7m £426.3m -7.6% £393.7m £389.6m +1.1%
Operating £26.7m £26.6m +0.5% £26.7m £23.5m +13.5%
Profit 1
Pre-tax £23.6m £25.6m -7.8% £23.6m £23.2m 4 +1.9%
Profit 1
Earnings per 8.9p 9.7p -8.2%
share 1
Dividend 3.35p 3.25p +3.1%
Order Input £368.4m £365.8m +0.7% £368.4m £352.2m +4.6%
2
1 Excluding goodwill amortisation and exceptionals
2 Excluding joint ventures and associates; calculated at constant 2003
exchange rates
3 Excludes discontinued businesses
4 Includes a proforma credit adjustment to the 2002 interest charge of
£594,000
HIGHLIGHTS
•Good profit generation despite difficult market conditions
•Strong turnover and profit growth in Engineering Products and Engineering
Services
•Continued improvements in operational performance
•Strong momentum on product development and accessing new markets
•Dividend increase
Analysts Meeting rescheduled to 11.00am TODAY at UBS,
1 Finsbury, London, EC2M 2PP
The Chairman of The Weir Group, Sir Robert Smith, commented: 'During the first
half of 2003, the Group's continuing operations delivered a good financial
performance growing input, turnover and profit despite challenging market
conditions.
The year to date has been shaped by the successful execution of our operational
initiatives delivering reduced costs and improving efficiencies when compared to
the same period in 2002. The strong momentum behind these activities is expected
to continue to deliver improving performances into the second half of the year.
The continued economic uncertainty in a number of our sectors makes it difficult
to be definite in our outlook for the remainder of 2003. However, on balance, we
anticipate the level of second half performance for continuing operations will
be broadly in line with those of last year.
Furthermore Weir's solid balance sheet, when combined with our programmes for
new product and market developments, ensures we are well positioned for future
growth.'
Contact details: The Weir Group PLC Available through UBS
Mark Selway, Chief Executive Tel. 020 7567 8000 (switchboard);
Helen Walker, Public Relations (Mobile: 07789 032296)
Manager
The Maitland Consultancy Tel. 020 7379 5151
Suzanne Bartch (Mobile: 07769 710 335)
Note to Editors: Print quality images are available to download at http://
www.newscast.co.uk
GENERAL OVERVIEW
In the first six months to June 2003, turnover from continuing businesses at
£393.7m was 1.1% above the same period in the previous year.
Comparable operating profit from continuing businesses before interest,
taxation, goodwill and exceptionals was £26.7m compared with £23.5m last year,
an increase of 13.5%.
During the first half, we have continued to execute successfully our operational
improvement activity across the Group. In the Valves & Controls and Clear Liquid
Divisions, the key initiatives to reduce costs and improve efficiency continue
to yield good results. Before one-off restructuring, both divisions delivered
stronger margins and profit performances on reduced turnover when compared to
the same period last year.
In Minerals, we have built a dynamic global organisation which delivered
stronger turnover and profits in the first half of 2003 when compared to 2002.
The key initiatives to reduce costs, expand our product offering and improve
efficiency continue to improve results and our geographic expansion agenda
remains on track.
Our Services Division increased turnover and operating profit from continuing
operations while laying the framework for future growth. Our plan to build a
national Australian services organisation was completed to schedule. New
cooperative relationships were cemented with Scottish & Southern Energy to
develop renewable energy technology and with Siemens where selectively, we will
jointly service the turbomachinery market on a global basis.
In Techna, as expected, turnover was significantly down against the comparable
period of 2002 resulting in a first half loss of £1.3m compared to a £0.9m
profit in the same period of 2002. The businesses remain in attractive markets
which have been badly affected by the continuing tensions in the Middle East,
delays in UK defence spending and global economic uncertainty.
Weir's share of turnover from our continuing Joint Ventures and Associates was
£50.8m, 1.5% above 2002. Operating profit at £5.3m translated to an operating
margin of 10.4% against 6.7% in 2002.
Order input for Group subsidiaries in the first half of 2003 was £368.4m (2002:
£365.8m), marginally above the same period in 2002, with strong performances
from our Services, Minerals and Techna Divisions offsetting shortfalls in our
Clear Liquid and Valves & Controls Divisions. On a continuing basis, order input
was up by 4.6%.
FINANCIAL HIGHLIGHTS
The combination of the sale or withdrawal from non-core operations in 2002
complicate comparisons with prior periods.
Total Group turnover fell 7.6% to £393.7m (2002: £426.3m), with stronger
performances in our Engineering Products, Services and Joint Ventures and
Associates being offset by £37m related to our discontinued activities, a £6.4m
exchange impact and the effects of continued delays in large contract placements
in Techna. On a continuing basis, turnover increased by 1.1%.
Operating profit excluding goodwill amortisation at £26.7m (2002: £26.6m) was
0.5% ahead of 2002 with Group subsidiaries at £21.4m (2002: £22.4m), down 4%.
Our Joint Ventures and Associates companies contributed £5.3m against £4.2m in
2002. On a continuing basis, operating profit increased by 13.5%.
Group pre-tax profit excluding goodwill amortisation and exceptionals was down
7.8% on the previous year at £23.6m (2002: £25.6m) and reflects the reduction
associated with our discontinuing operations, the increased costs of pensions
and deferment in major capital orders offset in part by stronger performances
from our Engineering Products and Services Division. On a continuing basis,
pre-tax profit increased by 1.9%.
As advised in our March announcement, the Group's implementation of FRS 17 and
the poor performance of equity markets had the effect of adding £2.8m of pension
costs in the first half of 2003 when compared to 2002.
A tax charge of £5.4m (2002: £5.9m) gives an effective tax rate of 23%.
The resulting earnings per share excluding goodwill amortisation and
exceptionals was 8.9p (2002: 9.7p).
The Group's net debt at the half year was £35.8m rising from £1.9m in funds
position at the start of the year. The first half outflow includes £17.9m for
the final dividend payment and an additional £10m contribution to the UK pension
fund. Trade creditors decreased £13m due to the reduced level of activity in the
Techna division.
DIVIDEND
An interim dividend of 3.35p (2002: 3.25p) is declared. The interim dividend
will be paid on 7 November 2003 to shareholders on the register at the close of
business on 3 October 2003.
REVIEW OF RESULTS
To assist in meaningful comparisons, the following review of results restates
comparative 2002 figures at constant 2003 exchange rates and excludes the
results of discontinued operations.
Engineering Products
Our Engineering Products businesses include the operations of our Minerals,
Clear Liquid and Valves & Controls Divisions. Turnover from our continuing
businesses was 3.5% above 2002 at £217.3m (2002: £210m) and operating profit
increased 31% to £16.9m (2002: £12.9m).
At the operating profit level, the margin was 7.8% compared with 6.2% in 2002,
driven by a stronger performance from the Minerals Division and an improved half
year result from the Clear Liquid Division when compared to the poor performance
in the first half of 2002.
The Minerals Division had an excellent first half growing its order input and
profits through a combination of new and more competitive product offerings and
the continued benefits being delivered from our operational improvement
activity.
The Clear Liquid Division delivered major improvements in operational
performance and profits benefited from a high mix of spares orders delivered in
the first half of 2003. The effects of our product rationalisation and the
Middle East conflict saw input reduce by £25m when compared to 2002 (2003:
£69m).
The first half results for the Valves & Controls Division were affected by
continued softening in the power and nuclear markets and a one-off £800k charge
for further rationalisation of our French operations. Before the costs of
rationalisation, the operating profit was improved when compared to 2002.
Engineering Services
Excluding discontinued businesses, turnover from Engineering Services was £89.7m
(2002: £71.1m), resulting in an operating profit of £7.7m against £7.1m in the
first half of 2002. At operating profit level the margin was 8.6% against 10% in
2002, due in large part, to the transfer of the Australian engineering business.
Transfer of our Australian operation to the Services Division resulted in an
£8.1m turnover uplift with negligible profit which, when coupled to the
subsequent downsizing costs, negatively impacted the first half margin
performance of the Services Division by about 0.7%.
The traditional services businesses increased turnover by 15% when compared to
the first half of 2002. Our hydro-refurbishment, asset management and Canadian
services operations all performed well.
During the balance of 2003 we will continue our strategy to expand our
activities into North America and bed down the operations in Australia. The
costs of establishing these new growth avenues will continue to hold back margin
performance for the balance of 2003.
Techna
Our Techna Division includes those businesses involved in design and project
management of large scale projects.
Turnover from our Techna Division declined 31% to £35.8m (2002: £52.3m)
resulting in a first half loss of £1.3m against a prior year profit of £0.9m.
The defence and nuclear operations experienced a decline in turnover and
operating profit when compared to 2002. Although there have been much publicised
delays in the important UK submarine and carrier programmes, we remain confident
of our future participation in these projects. The significantly improved first
half 2003 order input of £23.1m (2002: £12.2m) is an early indication of some
positive movement in these markets.
The desalination and water treatment businesses experienced a decline in
turnover and operating profit when compared to 2002. Aggressive competition in
the Middle East has caused us to refocus on smaller project work. This strategy
has been rewarded with the award of the £16.2m Kindasa desalination order and an
improved first half order input of £32.5m against £19.2m in the same period of
2002.
Joint Ventures and Associates
Weir's share of turnover from continuing Joint Ventures and Associates at £50.8m
was 1.5% above 2002 (2002: £50m). Operating profit of £5.3m (2002: £3.3m)
produced an operating margin uplift to 10.4% (2002: 6.7%). Profit recognition
and contract timing milestones delivered a strong first half performance at DML.
In the second half, we expect performance to return to a similar level as
experienced in the second half of 2002.
STRATEGY
Our programme for the execution of operational and strategic changes continued
to make good progress during the first half of 2003. The plan of unlocking the
potential within Weir remains on track and is the centrepiece of our strategy
focused on the relentless pursuit of improvements in quality, efficiency and
cost savings and closer alignment with our customers and markets.
The Clear Liquid, Minerals and Valves & Controls Divisions all launched ranges
of new world-class products targeted at increasing our competitiveness and
building Weir differentiation in the global market place.
Our expansion into strategically important markets remains on track with the
Services Division completing its entry into Australia and good progress in the
development of our US service centres. The Minerals Division has strengthened
its position in India and investigations into having a larger presence in China
will come to a conclusion in the near term.
Acquisition opportunities continue to be closely monitored and we are better
prepared to manage a successful integration as and when the right opportunities
present themselves.
THE BOARD
Lord Robertson of Port Ellen, currently Secretary General of NATO, has accepted
an invitation to join the Board as a Non Executive Director from February 2004.
He brings considerable international experience and value to the Board as we
continue to develop Weir's global strategy, particularly in opening up new
markets.
OUTLOOK
As anticipated, during the first half of 2003, the Group delivered significant
performance gains and grew input, turnover and profit from continuing operations
despite challenging market conditions. The continued strong performances from
the Engineering Products and Services businesses in the first half have been
sufficient to offset the increased cost of pensions and partially offset £1.0
million of currency translation losses and the poor result in Techna.
Within the Engineering Products businesses, all three divisions have strong
momentum behind their productivity programmes. Our new product launches will
progressively improve competitiveness and build market share and we expect to
deliver further improvements in the balance of 2003.
In the Services Division, we have been equally successful at delivering
performance gains, which we fully anticipate will continue during the balance of
the year. We expect to deliver some margin improvement when compared to the
first half but will not return to the levels of 2002 due to the one off costs
necessary to establish our presence in the US market.
We would expect the Group's Services and Engineering Products businesses to
continue to produce sufficiently strong results to offset the increased cost of
pensions and other known costs in the second half. However, the less predictable
currency movements and Techna's market sector make it more difficult to define
the level of offset.
While customer plans would suggest otherwise, our experience indicates that we
will encounter further slippage in funding approvals for major projects in the
Techna Division. These delays have the potential to negatively impact Techna's
second half profit performance.
Our Joint Venture and Associates businesses performed well in the first half
with favourable profit taking milestones when compared to 2002. In the second
half, we expect performance to return to a similar level as experienced in the
second half of 2002.
The continued economic uncertainty in a number of our sectors makes it difficult
to be definite in our outlook for the remainder of 2003. However, on balance, we
anticipate that the level of second half performance for continuing operations
will be broadly in line with those of last year.
Consolidated Profit & Loss Account
26 weeks to 27
June 2003
52 weeks to 27 Before Amortisation of Total
Dec 2002 amortisation of goodwill &
goodwill & exceptional
exceptional items
items
£'000 £'000 £'000 £'000
-------- --------- --------- --------
Turnover
685,246 Group - continuing 342,857 - 342,857
15,964 - discontinued - - -
-------- --------- --------- --------
701,210 342,857 - 342,857
9,814 Share of - joint 4,459 - 4,459
ventures
91,631 - associates 46,365 - 46,365
39,051 - discontinued - - -
-------- associate --------- --------- --------
841,706 393,681 - 393,681
-------- --------- --------- --------
Operating
profit
50,056 Group - continuing - 21,406 - 21,406
excluding
exceptionals
(4,289) - exceptional - - -
item
(6,671) - goodwill - (3,393) (3,393)
amortisation
2,699 - discontinued - - -
-------- --------- --------- --------
41,795 21,406 (3,393) 18,013
1,813 Share of - joint 826 - 826
ventures
5,870 - associates 4,462 - 4,462
(182) - associate's - (92) (92)
goodwill
amortisation
1,797 - discontinued - - -
-------- associate --------- --------- --------
51,093 26,694 (3,485) 23,209
-------- --------- --------- --------
10,539 Exceptional - - -
items
Interest & other income
(3,765) Group - net interest & (1,431) - (1,431)
other income
1,779 - other finance (1,488) - (1,488)
income
Joint
34 Ventures 25 - 25
(253) Associates (184) - (184)
-------- --------- --------- --------
(2,205) (3,078) - (3,078)
-------- --------- --------- --------
59,427 Profit on ordinary activities 23,616 (3,485) 20,131
before tax
9,026 Estimated tax on profit on 5,431 - 5,431
-------- ordinary activities --------- --------- --------
50,401 Profit on ordinary activities 18,185 (3,485) 14,700
after tax
245 Minority interest 31 - 31
-------- --------- --------- --------
50,156 Profit attributable to The Weir 18,154 (3,485) 14,669
-------- Group PLC --------- --------- --------
24.7p Earnings per share 7.2p
Earnings per share excluding
goodwill
22.6p Amortisation & exceptional items 8.9p
24.6p Diluted earnings per share 7.2p
26 weeks to 28 June 2002
52 weeks Before Amortisation of Total
to 27 Dec amortisation of goodwill &
2002 goodwill & exceptional
exceptional items
items
£'000 £'000 £'000 £'000
-------- --------- --------- --------
Turnover
685,246 Group - continuing 339,521 - 339,521
15,964 - discontinued 13,232 - 13,232
-------- --------- --------- --------
701,210 352,753 - 352,753
9,814 Share of - joint 4,950 - 4,950
ventures
91,631 - associates 45,108 - 45,108
39,051 - discontinued 23,481 - 23,481
-------- associate --------- --------- --------
841,706 426,292 - 426,292
-------- --------- --------- --------
Operating
profit
50,056 Group - continuing - 20,179 - 20,179
excluding
exceptionals
(4,289) - exceptional - - -
item
(6,671) - goodwill - (3,403) (3,403)
amortisation
2,699 -discontinued 2,227 - 2,227
-------- --------- --------- --------
41,795 22,406 (3,403) 19,003
1,813 Share of - joint 984 - 984
ventures
5,870 - associates 2,361 - 2,361
(182) - associate's - (90) (90)
goodwill
amortisation
1,797 - discontinued 810 - 810
-------- associate --------- --------- --------
51,093 26,561 (3,493) 23,068
-------- --------- --------- --------
10,539 Exceptional - (103) (103)
Items
Interest & other Income
(3,765) Group - net interest & (2,149) - (2,149)
other income
1,779 - other finance 1,305 - 1,305
income
Joint
34 Ventures 16 - 16
(253) Associates (121) - (121)
-------- --------- --------- --------
(2,205) (949) - (949)
-------- --------- --------- --------
59,427 Profit on ordinary activities 25,612 (3,596) 22,016
before tax
9,026 Estimated tax on profit on 5,891 - 5,891
-------- ordinary activities --------- --------- --------
50,401 Profit on ordinary activities 19,721 (3,596) 16,125
after tax
245 Minority interest 65 - 65
-------- --------- --------- --------
50,156 Profit attributable to The Weir 19,656 (3,596) 16,060
-------- Group PLC --------- --------- --------
24.7p Earnings per share 7.9p
Earnings per share excluding
goodwill
22.6p Amortisation & exceptional items 9.7p
24.6p Diluted earnings per share 7.9p
Segmental Analysis
Turnover and profit on ordinary activities before tax were contributed
as follows:
26 weeks to 26 weeks to 52 weeks to
27 June '03 28 June '02 27 Dec '02
Turnover Turnover Turnover
£'000 £'000 £'000
-------- -------- --------
Engineering Products
Group Continuing - excluding 217,289 209,972 428,031
exceptionals
- operating - - -
exceptional item
- discontinued - 3,362 3,362
-------- -------- --------
217,289 213,334 431,393
Share of associate 7 2 15
-------- -------- --------
217,296 213,336 431,408
-------- -------- --------
Techna
Group 35,830 52,252 108,359
Share of joint venture 228 291 549
-------- -------- --------
36,058 52,543 108,908
-------- -------- --------
Engineering Services
Group - continuing 89,738 71,094 151,629
- discontinued - 9,649 12,505
-------- -------- --------
89,738 80,743 164,134
Share of joint ventures 4,231 4,659 9,265
Share of associate 46,358 45,106 91,616
Share of associate - - 23,481 39,051
discontinued
-------- -------- --------
140,327 153,989 304,066
-------- -------- --------
Segmental totals
Group 342,857 346,329 703,886
Joint ventures & associates 50,824 73,539 140,496
Goodwill amortisation - - - -
Engineering Products
Goodwill amortisation - - - -
Associates
Unallocated costs - - -
Exchange adjustment - Group * - 6,424 (2,676)
-------- -------- --------
393,681 426,292 841,706
Exceptional items - - - -
Engineering Products
- Engineering Services - - -
Interest & other income - - -
-------- -------- --------
393,681 426,292 841,706
-------- -------- --------
Segmental Analysis
Turnover and profit on ordinary activities before tax were contributed
as follows:
26 weeks to 26 weeks to 52 weeks to
27 June '03 28 June '02 27 Dec '02
Profit Profit Profit
£'000 £'000 £'000
-------- -------- --------
Engineering Products
Group - continuing - 16,907 12,925 32,289
excluding
exceptionals
- operating - - (4,289)
exceptional item
- discontinued - 133 182
-------- -------- --------
16,907 13,058 28,182
Share of associate (1) - (1)
-------- -------- --------
16,906 13,058 28,181
-------- -------- --------
Techna
Group (1,306) 943 5,329
Share of joint venture 9 (8) 5
-------- -------- --------
(1,297) 935 5,334
-------- -------- --------
Engineering Services
Group - continuing 7,713 7,083 15,099
- discontinued - 1,994 2,525
-------- -------- --------
7,713 9,077 17,624
Share of joint ventures 817 992 1,808
Share of associate 4,463 2,361 5,871
Share of associate - - 810 1,797
discontinued
-------- -------- --------
12,993 13,240 27,100
-------- -------- --------
Segmental totals
Group 23,314 23,078 51,135
Joint ventures & associates 5,288 4,155 9,480
Goodwill amortisation - (3,393) (3,434) (6,894)
Engineering Products
Goodwill amortisation - (92) (90) (182)
Associates
Unallocated costs (1,908) (1,607) (2,910)
Exchange adjustment - Group * - 966 464
-------- -------- --------
23,209 23,068 51,093
Exceptional items - - (103) (48)
Engineering Products
- Engineering Services - - 10,587
Interest & other income (3,078) (949) (2,205)
-------- -------- --------
20,131 22,016 59,427
-------- -------- --------
*For comparative purposes 2002 figures have been restated at the 27 June 2003
average exchange rates.
Dividends
52 weeks to 26 weeks to 26 weeks to
27 Dec '02 27 June '03 28 June '02
--------- -------- --------
On ordinary shares
12.0p pence per share 3.35p 3.25p
24,500 costing - £'000 6,842 6,634
An interim dividend of 3.35p per ordinary share (2002: 3.25p per
ordinary share) will be paid on 7 November 2003 to shareholders on the
register at close of business on 3 October 2003.
Exceptional Items
52 weeks to 26 weeks to 26 weeks to
27 Dec '02 27 June '03 28 June '02
£'000 £'000 £'000
--------- -------- --------
2,066 (Loss)/profit on disposal of - (103)
discontinued operations
8,473 Profit on disposal of - -
--------- discontinued associate -------- --------
10,539 Non operating exceptional - (103)
--------- items -------- --------
The comparative figures for the 26 weeks to 28 June 2002 and for the 52
weeks to 27 December 2002 relate to the disposal of Molded Products
which was completed on 28 June 2002 and the disposals of the businesses
of Actuators and the turbo-drilling operations of Neyrfor-Weir Limited
which were completed on 1 July 2002 and 31 July 2002 respectively. The
results of these businesses for the prior year to the dates of disposal
have been shown in the profit and loss account as 'discontinued'. The
comparative profit on disposal of discontinued associate for the 52
weeks to 27 December 2002 relates to the disposal of First Engineering
Limited which was completed on 7 October 2002. The results of this
business for the prior year to the date of disposal have been shown in
the profit and loss account as 'discontinued'.
The comparative figure of £4,289,000 in respect of operating exceptional
items for the 52 weeks to 27 December 2002 relates to 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.
Tax
52 weeks to 26 weeks to 26 weeks to
27 Dec '02 27 June '03 28 June '02
£'000 £'000 £'000
--------- -------- --------
2,594 Group - United Kingdom 26 745
8,896 Group - overseas 4,214 4,001
166 Joint ventures 122 152
2,166 Associates 1,069 993
(4,007) UK tax on exceptional item - -
(789) Overseas tax on exceptional - -
--------- item -------- --------
9,026 Tax on profit on ordinary 5,431 5,891
--------- activities -------- --------
Basis of Preparation
The interim financial statements are unaudited and 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 2002 Annual Report and Accounts and were
approved by the Board of Directors on 18 August 2003. Financial
statements for the 52 weeks to 27 December 2002 are abridged statements;
full accounts with an unqualified audit report have been lodged with the
Registrar.
Consolidated Balance Sheet
27 Dec 2002 27 Jun 2003 28 Jun 2002
£'000 £'000 £'000
--------- ---------- ---------
Fixed assets
105,509 Intangible assets - goodwill 111,905 113,397
97,676 Tangible assets 99,391 109,687
Investments
9,343 Joint ventures - share of 9,767 9,773
gross assets
3,199 - share of gross liabilities 3,181 3,447
--------- ---------- ---------
6,144 6,586 6,326
13,468 Associates 16,407 17,567
539 Other 600 548
--------- ---------- ---------
20,151 23,593 24,441
--------- ---------- ---------
223,336 Total fixed assets 234,889 247,525
--------- ---------- ---------
Current assets
95,034 Stocks 101,586 99,832
186,090 Debtors 197,091 195,903
153,056 Cash at bank & in hand 121,362 105,945
--------- ---------- ---------
434,180 420,039 401,680
--------- ---------- ---------
Creditors falling due within
one year
1,918 Bank overdrafts & short term 1,911 6,354
debt
9,980 Other borrowings 9,999 10,006
186,331 Other creditors 163,583 172,956
--------- ---------- ---------
198,229 175,493 189,316
--------- ---------- ---------
235,951 Net current assets 244,546 212,364
--------- ---------- ---------
459,287 Total assets less current 479,435 459,889
liabilities
Less:
Creditors falling due after
more than one year
137,237 Loans 143,319 145,721
1,542 Obligations under finance 1,389 1,845
leases
33,114 Provisions for liabilities & 35,902 33,426
charges
Deferred income
147 Grants not yet credited to 86 241
profit
560 Minority interest 568 449
--------- ---------- ---------
286,687 Net assets excluding 298,171 278,207
retirement benefits
106,594 Retirement benefits - 100,404 49,289
--------- liability ---------- ---------
180,093 Net assets including 197,767 228,918
--------- retirement benefits ---------- ---------
Capital & reserves
25,522 Called up share capital 25,527 25,416
154,571 Reserves 172,240 203,502
--------- ---------- ---------
180,093 197,767 228,918
--------- ---------- ---------
Consolidated Cash Flow Statement
52 weeks to 26 weeks to 26 weeks to
27 Dec 2002 27 Jun 2003 28 Jun 2002
£'000 £'000 £'000
--------- ---------- ---------
Cash (outflow)/inflow from
operating activities
59,739 Funds generated by 20,755 22,481
operations
9,658 (Increase)/decrease in working (22,147) 9,533
capital
(1,325) Cash spent on exceptional (828) (162)
--------- items ---------- ---------
68,072 (2,220) 31,852
1,329 Dividends received from joint 325 400
ventures
1,811 Dividends received from - 217
associates
(3,510) Returns on investments & (1,811) (2,324)
servicing of finance
(7,116) Taxation (3,363) (3,531)
(10,274) Net capital expenditure (7,779) (5,077)
77 (Purchase)/sale of (62) 45
investments
(927) Acquisitions (333) (927)
36,940 Disposals 2,740 5,288
(23,766) Equity dividends paid (17,865) (17,131)
--------- ---------- ---------
62,636 Cash (outflow)/inflow before (30,368) 8,812
liquid resources & financing
(35,516) Management of liquid 45,581 11,767
resources
4,054 Financing - issue of shares 88 2,253
96 - new loans 17 587
(15,069) - debt repaid (5,621) (5,280)
3,246 - foreign exchange hedging (297) 304
--------- ---------- ---------
(7,673) (5,813) (2,136)
--------- ---------- ---------
19,447 Increase in cash 9,400 18,443
--------- ---------- ---------
Reconciliation of Net Cash Flow to Movement in Net Funds/(Debt)
£'000 £'000 £'000
--------- ---------- ---------
19,447 Increase in cash 9,400 18,443
15,069 Cash flow from debt repaid 5,621 5,280
(96) Cash flow from new loans (17) (587)
35,516 Cash flow from management of liquid (45,581) (11,767)
--------- resources ---------- ---------
69,936 Change in net funds/(debt) resulting from (30,577) 11,369
cash flows
(182) Leases - inceptions - (190)
(1,859) Exchange (7,122) (3,619)
--------- ---------- ---------
67,895 Movement in net funds/(debt) during the (37,699) 7,560
period
(65,971) Net funds/(debt) at 28 December 2002 1,924 (65,971)
--------- ---------- ---------
1,924 Net funds/(debt) at 27 June 2003 (35,775) (58,411)
--------- ---------- ---------
Reconciliation of Operating Profit to Net Cash (Outflow)/Inflow from
Operating Activities
52 weeks to 26 weeks to 26 weeks to
27 Dec 2002 27 Jun 2003 28 Jun 2002
£'000 £'000 £'000
-------- --------- --------
41,795 Operating profit 18,013 19,003
23,510 Depreciation, goodwill 11,259 12,596
amortisation & grant credits
(1,612) Surplus on disposal of (235) (627)
tangible assets &
investments
(7,726) Funding of pension & post (10,614) (6,929)
retirement costs
3,772 Increase/(decrease) in 2,332 (1,562)
-------- provisions --------- --------
59,739 Funds generated by 20,755 22,481
-------- operations --------- --------
6,749 (Increase)/decrease in (3,603) 12,889
stocks
2,131 (Increase)/decrease in (5,233) 4,955
debtors
778 (Decrease)/increase in (13,311) (8,311)
-------- creditors --------- --------
9,658 (Increase)/decrease in working (22,147) 9,533
-------- capital --------- --------
(1,325) Cash spent on exceptional (828) (162)
-------- items --------- --------
68,072 Net cash (outflow)/inflow from (2,220) 31,852
-------- operating activities --------- --------
Statement of Total Recognised Gains & Losses
£'000 £'000 £'000
-------- --------- --------
43,409 Profit excluding share of profit for 10,823 13,245
joint ventures & associates
1,681 Share of joint ventures' profit 729 848
5,066 Share of associates' profit 3,117 1,967
-------- --------- --------
50,156 Profit attributable to The Weir Group 14,669 16,060
PLC
(129,832) Actuarial loss - (45,558)
39,523 Tax thereon - 13,813
(8,703) Exchange differences on foreign currency 9,818 (1,371)
net investments
- Tax thereon (59) 235
-------- --------- --------
(48,856) Total recognised gains/(losses) relating 24,428 (16,821)
-------- to the period --------- --------
Reconciliation of Movements in Shareholders' Funds
52 weeks to 26 weeks to 26 weeks to
27 Dec 2002 27 Jun 2003 28 Jun 2002
£'000 £'000 £'000
-------- --------- --------
(48,856) Total recognised gains/ 24,428 (16,821)
(losses)
(24,500) Dividends (6,842) (6,634)
Other movements
4,650 New share capital subscribed 88 2,322
(596) Cost of issuing shares - (69)
(725) Goodwill reinstated on - -
-------- disposal --------- --------
(70,027) Net addition/(reduction) to 17,674 (21,202)
shareholders' funds
250,120 Opening shareholders' funds 180,093 250,120
-------- --------- --------
180,093 Closing shareholders' funds 197,767 228,918
-------- --------- --------
Shareholders' funds are
entirely attributable to
equity interests.
Interim Results
The Interim Results will be sent to shareholders and copies will be
available from The Weir Group PLC, 149 Newlands Road, Cathcart, Glasgow
G44 4EX.
Interim Dividend Paid
7 November 2003
Interim dividend will be paid to shareholders on the register at close
of business on 3 October 2003.
Details contained in the interim report can be downloaded from The Weir
Group website at:
www.weir.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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