Weir ready to grow with UKs nuclear stations

Weir Group’s energy generation division has shown a growth of ₤100million that is up to 10%, in their interim results, on Tuesday. The group has shown a huge rise in half-yearly turnover and operating gains. The UK government has plans to construct new nuclear energy stations in the country, which will further boast this group’s fortune. Already this group has gained enough growth because of North America and China.

Yesterday, Mark Selway, the chief executive of Weir group said that many governments are recognizing the need that either they have to upgrade the existing nuclear stations or have to build new nuclear power stations. He also predicted that, if the UK government will move ahead with this change, Weir group would definitely be benefited by it. He also shared that they cater specific needs of clients like GE and Areva. Recently, Weir has produced nuclear safety valves for a new factory at Massachusetts, US and China.

Arbuthnot Securities engineering analyst, Michael Blogg said that presently Weir’s business is growing outside the UK, but the group will have business in the country also when the government puts nuclear plans in to action.

Yesterday, Weir reported for the first time under their new divisional setup that it has now three divisions, power and industrial, minerals, and oil and gas. Overall, group revenue increased by 46% to £632m, but operating profits after the tax were low to £108.5m from £117.9m last year. Minerals division’s revenue was up 29% and operational costs by 45% due to acquisition of CH Warman, an African pump company, and oil and gas division’s operational cost had 266% growth because of acquisition SPM, last year.

Weir has £250m to £300m for further acquisitions but Selway shared that he will go on to acquire businesses, but in the form of “lumpy bolt-ones.”

Please visit www.weir.co.uk for more