Final Results

Weir Group PLC
21 March 2001

THE WEIR GROUP PLC PRELIMINARY RESULTS 2000

RESULTS FOR THE 52 WEEKS ENDED 29th DECEMBER 2000


'Strong Results in a Challenging Year'


Highlights
                                                          2000     1999      %
Turnover                                               £882.9m  £754.9m  +17.0
Operating Profit                                        £72.9m   £56.9m  +28.1

(before goodwill amortisation and exceptional items)
Pre-Tax Profit                                          £61.2m   £53.3m  +14.8

(before goodwill amortisation and exceptional items)
Earnings Per Share                                       22.9p    19.6p  +16.8

(before goodwill amortisation and exceptional items)
Dividend                                                 11.0p    10.4p   +5.8
Order Intake (2000 exchange rates)                       £735m    £700m   +5.0

The Executive Chairman of The Weir Group PLC, Sir Ron Garrick, commented:

'The Group produced strong results in a challenging year driven by an
excellent performance in the second half. Operating profit before goodwill
amortisation and exceptional items was the highest on record and we have seen
a substantial reduction in net debt.

'During the year the integration of the Warman operations to create The Weir
Slurry Group was completed and the annualised synergy savings resulting from
the acquisition were achieved at a faster rate than previously expected.

'In 2001, we believe that overall market conditions should be slightly more
favourable than those experienced in recent years. Consequently, we look
forward to a year of further progress in building shareholder value.'

Enquiries:
The Weir Group PLC
Sir Ron Garrick, Executive Chairman                  Tel: [phone]
Emrys Inker, Public Relations Manager
The Maitland Consultancy
Angus Maitland                                       Tel: [phone]
Suzanne Bartch





THE WEIR GROUP PLC PRELIMINARY RESULTS FOR 2000

RESULTS FOR THE 52 WEEKS TO 29th DECEMBER 2000


THE WEIR GROUP RESULTS

Summary of Results

In 2000, the Group produced strong results in a challenging year.
International operations performed well and there was a particularly
impressive performance from the new Weir Slurry Group, whose results include
the first full year's contribution from the Warman International acquisition.
Results from our UK operations were disappointing due to a lack of investment
by customers in our major markets.


Group turnover and profitability grew strongly during the year. Operating
profit before interest, goodwill amortisation and exceptionals was the highest
on record at £72.9 million, some 28% ahead of the £56.9 million achieved in
1999.


Earnings per share before goodwill amortisation and exceptionals was 22.9p, up
16.8% on 1999 (19.6p).


The Board is recommending a final dividend of 8p per share making a total
distribution for the year of 11p (1999: 10.4p).


Following a net cash inflow from disposals of £29.3 million, the balance of
net debt at year end had reduced to £95 million from the opening position of £
146 million at the start of the year, and £168 million at the end of June.
This represents a debt to equity gearing ratio of 33% (1999:57%). The interest
cover ratio for the year remains comfortable at 6.2 times, and the strength of
our balance sheet will allow us to consider further corporate development
opportunities during 2001.


Review of Results


Turnover for the Group was £882.9 million, an increase of 17% on the 1999
figure of £754.9 million.


Operating profit before interest, goodwill amortisation and exceptional items,
amounted to £72.9 million, a 28.1% increase over the £56.9 million reported in
1999.


Pre-tax profit, pre-goodwill amortisation and exceptional items was £61.2
million, 14.8% ahead of the £53.3 million achieved in 1999.


The results from Engineering Products reached record levels in 2000. Turnover
was £596.1 million, an increase of 18.9% compared with 1999 (£501.5 million).
Operating margins improved from 7.9% to 9.3%, and operating profit at £55.1
million was almost 40% ahead of the previous year.


Turnover from Engineering Services was £149.8 million, an increase of 3.9%
over the £144.2 million achieved in 1999. Operating profit at £11.5 million
was broadly similar to the previous year. Increased competition in the service
market resulted in margins falling from 8.2% in 1999 to 7.7% in 2000.


Earnings from Associates and Joint Ventures recovered in 2000 with operating
profits increasing by 10.4% from £7.7 million to £8.5 million. Turnover grew
by 16.6% with margins overall reducing from 6.6% in 1999 to 6.2% in 2000.


Strategy


The Group's strategy is to focus on its strengths and concentrate financial
resources on those areas of the business where significant market positions
can be established and stronger growth achieved. Where this is not possible,
businesses will be considered for divestment.


The combination of Warman International with Envirotech illustrates the
benefits of this strategy by creating the world market leader in the supply of
slurry pumps to the minerals processing industry, and the Weir Slurry Group
achieved excellent results in its first full year. Also during 2000, we
divested Darchem Engineering as our development priorities lie in other areas.


Implementation of the Group's strategy has increased earnings per share and
generated strong cashflow. Consequently, the Board has recently confirmed that
the Group will follow the same strategic path in 2001. We intend to be a
consolidator in our core businesses and whilst the timing of acquisitions is
not entirely in our own control, global consolidation is likely to continue
and we should have opportunities during the year to grow our business and
improve shareholder value.


Reduction in net debt remains central to our strategy.


Prospects


We are looking forward to a year of further progress for the Group and, due to
the pattern of order input last year and the time lag between orders and
sales, we expect that most of that progress will be in the second half.


We anticipate that the more buoyant market conditions experienced in the
latter part of 2000 will be sustained in 2001 and that overall, our order
input should show some growth.


In a market environment which is becoming more competitive, we will continue
to focus on improving efficiency and reducing costs.


This focus, together with somewhat improved market conditions and our strong
balance sheet, should ensure that we continue to build shareholder value in
2001.



THE WEIR GROUP RESULTS

Summary of results

AUDITED RESULTS

The Consolidated Profit and Loss Account for the 52 weeks ended 29th December
2000 is as follows:


                                                    52 weeks to     52 weeks to
                                                                           31st
                                                  29th December   December 1999
                                                           2000
                                                          £'000           £'000
TURNOVER
Group
- Continuing operations                                 708,592         597,043
- Discontinued operation                                 37,344          40,479
                                                        745,936         637,522
Share of
- Joint Ventures                                          8,044           3,754
- Associates                                            128,872         113,631
                                                        882,852         754,907
OPERATING PROFIT
Group
- Continuing operations                                  60,091          43,076
- Discontinued operation                                  4,270           6,070
- Goodwill amortisation                                 (6,705)         (3,330)
                                                         57,656          45,816
Share of
Joint Ventures                                            1,123             711
Associates                                                7,391           7,034
                                                         66,170          53,561
EXCEPTIONAL ITEMS
Profit on disposal of discontinued operation              2,317               -
Reorganisation costs arising from Warman                      -          (8,329)
acquisition
INTEREST AND OTHER INCOME                              (11,661)          (3,635)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAX                 56,826          41,597
Tax on profit on ordinary activities                     15,276          12,410
PROFIT ON ORDINARY ACTIVITIES AFTER TAX                  41,550          29,187
Minority interest                                            74              43
PROFIT ATTRIBUTABLE TO THE WEIR GROUP PLC                41,476          29,144
Dividends                                                22,079          20,789
Transfer to reserves                                     19,397           8,355
EARNINGS PER SHARE                                        20.7p           14.6p
EARNINGS PER SHARE EXCLUDING GOODWILL                     22.9p           19.6p

AMORTISATION AND EXCEPTIONAL ITEMS
DILUTED EARNINGS PER SHARE                                20.7p           14.5p


DIVIDENDS                                    52 weeks to29th    52 weeks to31st
                                               December 2000      December 1999
                                                       £'000              £'000
Ordinary Shares
Interim 3.0p per 12.5p share (1999: 2.9p)              6,010              5,792
Final 8.0p per 12.5p share (1999: 7.5p)               16,069             14,997
                                                      22,079             20,789



The directors recommend payment of a final dividend of 8.0p per ordinary share
for 2000 (1999: 7.5p) which with the interim dividend of 3.0p per ordinary
share (1999: 2.9p) will make a total distribution for the year of 11.0p per
ordinary share (1999: 10.4p). Subject to the approval of shareholders at the
annual general meeting, payment will be made on 8th June 2001 to ordinary
shareholders on the register at close of business on 6th April 2001.

TAX                                        52 weeks to 29th     52 weeks to31st
                                              December 2000       December 1999
                                                      £'000               £'000
Group - United Kingdom                                3,922               7,983
Group - Overseas                                      8,789               4,072
Joint Ventures                                          148                 175
Associates                                            2,417               1,933
Overseas tax on exceptional item                          -              (1,092)
UK tax on exceptional item                                -                (661)
Profit and Loss Account tax charge                   15,276              12,410

BASIS OF PREPARATION


The preliminary results for the 52 weeks ended 29th December 2000 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 1999 Annual Report and Accounts, except as
noted below, and were approved by the board of directors on 21st March 2001.
Full accounts with an unqualified audit report will be lodged with the
Registrar in due course. Financial statements for the 52 weeks to 31st
December 1999 are abridged statements; full accounts with an unqualified audit
report have been lodged with the Registrar.

ACCOUNTING STANDARDS


FRS 15 'Tangible Fixed Assets' and FRS 16 'Current Tax' have been adopted in
the preliminary results for the 52 weeks to 29th December 2000. Neither
standard has resulted in any material change to the accounts. In compliance
with FRS15 the Group has adopted the transitional provision which permits
previously revalued properties to be retained at the last valuation basis made
in 1978 and 1981.

Divisional contributions were:
                                                 2000     1999     2000    1999
                                             Turnover Turnover   Profit  Profit
                                                £'000    £'000    £'000   £'000
Engineering Products:
Group
- continuing                                  565,331  467,304   51,635  34,497
- discontinued                                 30,763   34,229    3,511   5,096
                                              596,094  501,533   55,146  39,593
Share of Joint Venture                            815        -       10       -
Share of Associate                                507      295       37      14
                                              597,416  501,828   55,193  39,607
Engineering Services:
Group
- continuing                                  143,261  137,998   10,712  10,855
- discontinued                                  6,581    6,250      759     974
                                              149,842  144,248   11,471  11,829
Share of Joint Ventures                         7,229    3,754    1,113     711
Share of Associates                           128,365  113,336    7,354   7,020
                                              285,436  261,338   19,938  19,560
Segmental totals:
Group                                         745,936  645,781   66,617  51,422
Joint Ventures and Associates                 136,916  117,385    8,514   7,745
Goodwill amortisation - Engineering                 -        -   (6,705) (3,330)
Products
Unallocated costs                                   -        -   (2,256) (1,191)
*Exchange adjustment - Group                        -   (8,259)       -  (1,085)
                                              882,852  754,907   66,170  53,561
Exceptional items - Engineering Products            -        -    2,317  (8,329)
Interest and other income                           -        -  (11,661) (3,635)
                                              882,852  754,907   56,826  41,597



*For comparative purposes 1999 figures have been restated at the 2000 closing
exchange rates.



The Consolidated Balance Sheet as at 29th December 2000 is as follows:
                                                                2000       1999
                                                               £'000      £'000
FIXED ASSETS
Intangible assets - goodwill                                 124,988    146,010
Tangible assets                                              127,250    138,316
Investments
Joint Ventures
- share of gross assets                                        8,727      6,460
- share of gross liabilities                                   3,060      1,704
                                                               5,667      4,756
Associates                                                    18,303     16,989
Other                                                            428        388
                                                              24,398     22,133
TOTAL FIXED ASSETS                                           276,636    306,459
CURRENT ASSETS
Stocks                                                       113,048    126,281
Debtors                                                      244,400    208,364
Cash at bank and in hand                                      96,244     24,696
                                                             453,692    359,341
CREDITORS falling due within one year:
Borrowings                                                    23,553     22,726
Other creditors                                              209,326    197,600
                                                             232,879    220,326
NET CURRENT ASSETS                                           220,813    139,015
TOTAL ASSETS LESS CURRENT LIABILITIES                        497,449    445,474
Less
CREDITORS falling due after more than one year:
Loans                                                        165,826    147,489
Obligations under finance leases                               1,564        696
PROVISIONS FOR LIABILITIES AND CHARGES                        42,314     37,641
DEFERRED INCOME
Grants not yet credited to profit                                494        506
MINORITY INTEREST                                                447        374
                                                             286,804    258,768
CAPITAL AND RESERVES
Called up share capital                                       25,078     24,995
Share premium account                                         11,432     10,147
Capital redemption reserve                                       531        531
Profit and loss account                                      249,763    223,095
                                                             286,804    258,768

The Consolidated Cash Flow Statement for the 52 weeks ended 29th December 2000
is as follows:
                                                   2000            1999
                                                  £'000   £'000   £'000   £'000
Cash inflow from operating activities
- funds generated by operations                  81,217          63,162
- increase in working capital                   (10,377)         (3,344)
- cash spent on reorganisation costs             (5,132)         (1,030)
                                                         65,708          58,788
Dividends received from Joint Ventures                      911             400
Dividends received from Associates                        3,948           3,236
Returns on investments and servicing of finance         (10,540)         (2,633)
Taxation                                                 (5,997)         (8,268)
Capital expenditure and financial investment            (13,565)        (12,433)
Acquisitions and disposals
- acquisitions - Warman                           3,659         (186,982)
- acquisitions - others                          (4,647)          (5,819)
- disposals                                      30,278               -
                                                         29,290        (192,801)
Equity dividends paid                                   (21,007)        (20,041)
Cash inflow(outflow) before liquid resources             48,748        (173,752)
and financing
Management of liquid resources                          (59,666)         28,162
Financing - issue of shares                       1,246           1,610
new loans                                        74,000         202,668
debt repaid                                     (55,648)        (58,677)
                                                         19,598         145,601
Increase in cash                                          8,680              11



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
                                                   2000             1999
                                                  £'000 £'000      £'000 £'000
Increase in cash                                  8,680               11
Cash flow from debt repaid                       55,648           58,677
Cash flow from new loans                        (74,000)        (202,668)
Cash flow from management of liquid resources    59,666          (28,162)
CHANGE IN NET DEBT RESULTING                             49,994        (172,142)

FROM CASH FLOWS
Loans - disposed                                            111               -
Leases - inceptions                                      (1,180)            (57)
Exchange                                                  2,518          (2,669)
MOVEMENT IN NET DEBT DURING THE YEAR                     51,443        (174,868)
Net (debt)/funds at 1st January 2000                   (146,461)         28,407
NET DEBT AT 29th December 2000                          (95,018)       (146,461)



Additional Statements for the 52 weeks ended 29th December 2000 are as
follows:

RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES
                                                                 2000      1999
                                                                £'000     £'000
Operating profit                                               57,656    45,816
Depreciation, goodwill amortisation and grant credits          28,603    20,923
Surplus on disposal of tangible assets and investments         (1,655)     (543)
Pension prepayments                                            (2,894)   (2,608)
Provision movements                                              (493)     (426)
Funds generated by operations                                  81,217    63,162
Decrease in stocks                                              9,417        80
Increase in debtors                                           (37,021)   (1,679)
Increase (decrease) in creditors                               17,227   (1,745)
Increase in working capital                                   (10,377)   (3,344)
Exceptional Warman reorganisation costs:
Charge for year                                                     -    (8,329)
Accelerated depreciation                                          295       350
Provision movements                                            (5,427)    6,803
Increase in creditors                                               -       146
Cash spent on reorganisation costs                             (5,132)   (1,030)
NET CASH INFLOW FROM OPERATING ACTIVITIES                      65,708    58,788

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES                   2000      1999
                                                                £'000     £'000
Profit excluding share of profits of Joint Ventures and        35,729   23,764
Associates
Share of Joint Ventures' profit                                   965      510
Share of Associates' profit                                     4,782    4,870
Profit attributable to The Weir Group PLC                      41,476   29,144
Exchange differences on foreign currency net investments           66     (813)
Tax thereon - UK deferred tax                                  (1,512)    (581)
TOTAL RECOGNISED GAINS                                         40,030   27,750

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS               2000     1999
                                                                £'000    £'000
Total recognised gains                                         40,030   27,750
Dividends                                                     (22,079) (20,789)
Other movements
New share capital subscribed                                    1,368    1,785
Cost of issuing shares                                           (122)    (122)
Goodwill reinstated on disposals                                8,839        -
Net addition to shareholders' funds                            28,036    8,624
Opening shareholders' funds                                   258,768  250,144
CLOSING SHAREHOLDERS' FUNDS                                   286,804  258,768
Shareholders' funds are entirely attributable to equity
interests.