The Weir Group Board is recommending a final dividend of 30.45p, resulting in a total dividend of 46.95p for the year, up 2% from 2018 reflecting confidence in the long term prospects of the Group. Dividend cover (being the ratio of earnings per share from continuing operations, before exceptional items and intangibles amortisation, to dividend per share) is 1.9 times. If approved at the Annual General Meeting on 28 April 2020, the final dividend will be paid on 5 June 2020 to shareholders on the register on 24 April 2020.
Other financial highlights include:
Mining revenue and profit growth leveraging market leadership positions
o Minerals revenues +4%; margin up 50bps to 18.3% supported by favourable product mix
o ESCO pro forma revenues +4%; margin up 340bps since acquisition to 14.5%
Benefiting from our focus on providing smart, efficient and sustainable technology
o Strong growth in energy-saving Enduron® HPGRs including £100m Iron Bridge order
o Net conversions to Nemisys® ground engaging tools up 30%
Weir sustainability strategy launched with ambitious targets
o Enabling net zero CO2e in mining by supporting the industry's technology transformation
o 50% reduction in Weir CO2e by 2030
£35m annualised cost savings delivered in response to North American oil and gas downturn
o Oil & Gas revenues -25%; H2 modestly profitable supported by cost reductions
o £546m Oil & Gas impairment reflecting ongoing market dynamics
o Intention to maximise value from Oil & Gas division at the right time
Strong second half cash generation
o £126m H2 working capital inflow: Net debt/EBITDA 2.4x
