The Weir Group PLC : Final Results

                      The Weir Group PLC : Final Results

The Weir Group PLC

27 February 2013

                  THE WEIR GROUP PLC 2012 FULL YEAR RESULTS
        DOUBLE DIGIT REVENUE AND PROFIT GROWTH IN TOUGHER END MARKETS

The Weir Group PLC, a global engineering solutions provider to the mining, oil
& gas and  power markets, today  reports its  results for the  52 week  period 
ended 28 December 2012.

Continuing Operations           2012    2011   Growth
Order input^1                £2,397m £2,442m      -2%
Revenue                      £2,538m £2,292m     +11%
Operating profit^2             £486m   £413m     +18%
Operating margin^2             19.1%   18.0% +110 bps
Profit before tax^2            £443m   £396m     +12%
Cash from operations           £399m   £303m     +32%
Earnings per share^2          150.1p  133.6p     +12%
Dividend per share             38.0p   33.0p     +15%
Return on Capital Employed^3   29.1%   29.2%  - 10bps
Net debt                       £689m   £673m    -£16m

^1 2011 restated at 2012 average exchange rates.
^2 Adjusted to exclude exceptional items and intangibles amortisation.
Reported operating profit, profit before tax and earnings per share were
£469m (2011: £408m); £424m (2011: £391m) and 147.1p (2011: 131.8p)
respectively, 2011 restated for fair value acquisition accounting.
^3 Continuing operations EBIT (excluding Seaboard and Novatech EBIT and
exceptional items) divided by average net assets excluding net debt, pension
deficit (net of deferred tax asset) and Seaboard and Novatech net assets.

HIGHLIGHTS

  *Record pre-tax profits up 12% to £443m;

  *Record  Group  operating  margin,  supported  by  strong  performance   by 
    Minerals;

  *Strengthening aftermarket input: 57% of total orders (2011: 52%);

  *Resilient Oil & Gas performance, supported by positive contributions  from 
    acquisitions;

  *Strategic progress: higher  R & D  investment; expanded product  portfolio 
    and service presence;

  *Full year dividend  increased by 15%  to 38.0p with  further double  digit 
    increase planned in 2013.

Keith Cochrane, Chief Executive, commented:
"Weir  delivered  a  strong  performance  for  shareholders  in  2012  despite 
challenging pressure pumping markets. We responded rapidly to changing  market 
conditions, realigned capacity, reduced costs in affected areas and  continued 
to maximise operational  and cost  efficiencies. This allowed  us to  deliver 
2012 results in line with our mid-year expectations. We continued to invest in
the Group's capabilities, underpinning our strategy  to grow ahead of our  end 
markets.

Looking ahead  into 2013,  despite more  challenging markets,  the Group  will 
continue to deliver profitable growth through new product introductions and  a 
range of operational initiatives. Assuming  a gradual economic and end  market 
improvement, we expect to deliver low single digit revenue growth and  broadly 
stable margins in 2013 with lower first  half profits offset by growth in  the 
second half. Alongside substantially higher  cash generation, the Group  plans 
the eighth consecutive year of double digit dividend growth."

A  live  webcast  of  today's   presentation  commences  at  8:30am  GMT   at 
www.weir.co.uk.

Contact details: The Weir Group PLC
Andrew  Neilson,  Head   of  Corporate  Affairs   and  (Mobile: 07753 622 357)
Strategy
Jonathan Milne, Communications Manager                 (Mobile: 07713 789 536)
Maitland - Tom Buchanan                                Tel. 020 7379 5151

2012 OVERVIEW
The strong financial performance was underpinned by a good performance by  the 
Minerals division with robust  project activity in  most key mining  equipment 
markets  which,   alongside  strong   aftermarket  growth   and   procurement, 
productivity  and  cost  initiatives,  delivered  record  Minerals   operating 
margins, ahead of our expectations.  Sales of the Minerals division's  broader 
product portfolio grew, enhanced by the  development of our own screens  range 
and new product introductions.

Oil & Gas delivered a resilient financial performance, despite the substantial
downturn seen  in  North American  pressure  pumping markets  with  full  year 
revenues and margins  in line  with prior  guidance as  cost and  productivity 
initiatives supported profitability.

Despite a relatively subdued  global power sector,  strategic momentum in  the 
Power & Industrial  Division continued  with strong input,  output and  profit 
growth. Cash  generated from  operations  increased by  32% with  an  improved 
working capital performance in the second half. 

SEGMENTAL ANALYSIS

Continuing                Oil & Power &   Group Unallocated        Total Total
Operations £m   Minerals    Gas    Ind.   Comp.    Expenses  Total    OE    AM
Input (constant
currency)
2012               1,322    677     361      37           -  2,397 1,024 1,373
2011               1,239    870     306      27           -  2,442 1,180 1,262
Growth:
- Constant
currency              7%   -22%     18%     33%                -2%  -13%    9%
- Like for
like^1                7%   -41%     13%     33%                -9%  -23%    4%
Revenue
2012               1,334    844     323      37           -  2,538 1,132 1,406
2011 (as
reported)          1,216    743     307      26           -  2,292 1,090 1,202
Growth:
- As reported        10%    14%      5%     43%                11%    4%   17%
- Constant
currency             12%    13%      7%     43%                12%    5%   18%
- Like for
like^1               12%   -10%      5%     43%                 4%   -5%   12%
Operating
profit
2012                 256    211      31       3         -15    486
2011 (as
reported)            214    183      27       3         -14    413
Growth:
- As reported        20%    15%     17%    -17%         -7%    18%
- Constant
currency             21%    14%     20%    -17%         -7%    18%
- Like for
like^1               21%   -12%      1%    -17%         -7%     5%
Operating
margin
2012               19.2%  25.0%    9.7%    6.7%              19.1%
2011 (as
reported)          17.6%  24.7%    8.8%   11.2%              18.0%
Growth:
- As reported     160bps  30bps   90bps -450bps             110bps
- Constant
currency          150bps  20bps  100bps -450bps             100bps
- Like for
like^1            140bps -40bps  -40bps -450bps              30bps

^1 Like for like excludes the impact of acquisitions and related transaction
and integration costs. Weir International was acquired on 1 July 2011,
Seaboard was acquired on 14 December 2011 and Novatech was acquired on 22
February 2012.

FINANCIAL HIGHLIGHTS

Order input at £2,397m on  a constant currency basis  decreased 2% and was  9% 
lower on a like for like basis. Original equipment orders were down 13%  (down 
23% like for like) with the  impact of North American pressure pumping  market 
weakness partly offset by  growth in most key  Minerals markets and very  good 
input growth at Power  & Industrial. Aftermarket orders  were up 9% (4%  like 
for like) with  double digit  increases in  Minerals and  Power &  Industrial. 
Aftermarket orders represented 57% of overall input (2011: 52%). 

Revenue grew by 12% to  £2,538m on a constant currency  basis, up 4% like  for 
like. Original equipment represented 45% of revenues with aftermarket revenues
accounting for 55%, a  200bps increase over the  prior year. Emerging  markets 
revenues increased by  23% with the  proportion of total  revenues from  these 
markets increasing to 37% (2011: 34%). Together, the acquisitions made in 2011
and 2012  (Weir International,  Seaboard and  Novatech) contributed  £182m  of 
revenue against  a 2011  equivalent proforma  figure of  £172m. Revenues  from 
other Group companies (LGE Process) were £37m in the year (2011: £26m).

Operating profit  from  continuing  operations before  exceptional  items  and 
intangibles amortisation increased by 18% to  £486m (2011: £413m) after a  net 
negative currency  translation  impact  of £1m.  The  increase  in  underlying 
performance was driven by  strong growth and margin  expansion in Minerals,  a 
positive contribution  from acquisitions,  and reduced  one-off costs,  offset 
partly by second half weakness in upstream Oil & Gas operations. One-off costs
of £9m were  incurred in  the period  (2011: £17m)  of which  £4m (2011:  £9m) 
related to acquisition transaction  and integration costs.  The 2011 and  2012 
acquisitions contributed £48m  to operating profit  against a 2011  equivalent 
proforma contribution of  £41m, excluding transaction  and integration  costs. 
EBITDA was £535m (2011: £450m).

Operating margin was  19.1%, an increase  of 110bps on  the prior year  (2011: 
18.0% and 18.1% on a constant currency basis) reflecting a strong second  half 
improvement in Minerals  and continued margin  resilience in Oil  & Gas. On  a 
like for like basis, the operating margin was 18.8% (2011: 18.5%). 

Net finance costs were £45.1m in total  (2011: £17.1m) due to the increase  in 
net debt  following the  Seaboard  and Novatech  acquisitions and  related  US 
private placement issue. 

Profit before tax from continuing operations but before exceptional items  and 
intangibles amortisation increased by 12% to  £443m (2011: £396m) and 4% on  a 
like for like  basis. Reported  profit before tax  from continuing  operations 
increased by 8% to £424m (2011 restated: £391m) after intangibles amortisation
of £37m (2011 restated:  £24m) and the net  exceptional credit of £20m  (2011: 
£19m) including the  £30m gain on  the sale  of LGE Process,  completed on  28 
December 2012.

Tax charge for  the year  of £124m  (2011: £114m)  on profit  before tax  from 
continuing operations before exceptional items and intangibles amortisation of
£443m (2011:  £396m) represents  an  underlying effective  tax rate  of  28.0% 
(2011: 28.8%), reflecting a  reduction in US  state taxes as  a result of  the 
changing profile of our business within the  US and the reduction of the  rate 
of UK corporation tax.

Discontinued operations profit of £3.3m (2011: £19.9m) represents the  release 
of unutilised provisions in  relation to previous  disposals on expiration  of 
the tax warranty periods.

Earnings per share  from continuing  operations before  exceptional items  and 
intangibles amortisation increased by 12% to 150.1p (2011: 133.6p).  Reported 
earnings per share including  exceptional items, intangibles amortisation  and 
profit from discontinued operations was 148.6p (2011 restated: 141.2p).

Cash generated from operations before  working capital movements increased  by 
13% to £516m (2011: £458m). Working  capital outflows of £117m (2011:  £155m) 
were driven  by  higher  than  expected  inventory  levels  and  a  subsequent 
reduction in payables due to lower materials purchases in upstream Oil &  Gas, 
partly offset by an overall  improvement in receivables. The initial  benefits 
of a  number of  supply  chain initiatives  resulted  in second  half  working 
capital inflows of £10m. Net cash generated from operations increased by  32% 
from £303m to  £399m representing an  EBITDA to cash  conversion ratio of  75% 
(2011: 67%). Net capital expenditure increased  from £91m in 2011 to £116m  in 
2012 principally to add  capacity in the Minerals  division and investment  in 
expanded flow capacity in SPM. Free  cash flow from continuing operations  was 
£62m (2011: £29m). Outflows  in respect of acquisitions  were £125m with  cash 
generation from disposals of £23m giving a  year end net debt of £689m  (2011: 
£673m, £679m constant currency). On a reported basis, the ratio of net debt to
EBITDA was 1.3 times and on a proforma basis including the Mathena acquisition
was 1.5 times.

Return on  capital  employed of  29.1%  for 2012  on  a like  for  like  basis 
(excluding Seaboard and  Novatech) was  broadly in  line with  the prior  year 
(2011: 29.2%).

Dividend The Board is recommending a 15.2% increase in the full year dividend,
the 29th consecutive year of dividend  growth, with a final dividend of  30.0p 
(2011: 25.8p) making a total of 38.0p for the year (2011: 33.0p). If  approved 
at the annual general meeting it will  be paid on 31 May 2013 to  shareholders 
on the register on  3 May 2013.  The Board also plans  a further double  digit 
increase in the full year dividend in 2013.

DIVISIONAL HIGHLIGHTS

MINERALS
Weir Minerals  is  the global  leader  in  the provision  of  slurry  handling 
equipment  and  associated   aftermarket  support  for   abrasive  high   wear 
applications used in the mining and oil sands markets.

£m                          H1^1       H2    2012   2011^1    Growth
Input OE                     309      218     527      514       +3%
Input aftermarket            411      384     795      725      +10%
Input Total                  720      602   1,322    1,239       +7%
Revenue OE                   257      283     540      494       +9%
Revenue aftermarket          403      391     794      701      +13%
Revenue Total                660      674   1,334    1,195      +12%
EBITA                        119      137     256      211      +21%
Operating margin^2         18.1%    20.3%   19.2%    17.7%   +150bps
^12011 and H1 restated at 2012 average exchange rates
^2Adjusted to exclude exceptional items and intangibles amortisation

Market drivers
Global ore production  increased by an  estimated 3% in  2012, underpinned  by 
continued demand growth in  Chinese and emerging  markets for key  commodities 
such as copper. Average ore yields continued to fall, requiring greater levels
of processing to  maintain the same  volume of refined  commodity and  further 
supporting aftermarket demand growth.

Capital expenditure  in  the mining  sector  in  2012 remained  ahead  of  the 
historically high levels seen in 2011,  with over £65bn committed to a  number 
of greenfield developments and  brownfield expansions, a  9% increase on  2011 
despite new project activity cooling off from the peak seen in the first  half 
of the year. Prices remained above  incentive levels for most key  commodities 
during the year. Second  half macro-economic concerns  over Europe and  China 
resulted in commodity price falls, particularly in iron ore and coal  markets, 
leading to the  deferral of some  project decisions in  Australia and  Brasil. 
Industrial unrest impacted activity in South Africa in the second half of the
year. Elsewhere, conditions  in key  minerals regions  were positive.  Buoyant 
activity levels continued in South America  and the rest of Africa, driven  by 
copper and  gold projects.  Weir has  benefited from  its exposure  to  these 
process-intensive commodities.

The completion  of existing  oil  sands projects  and resulting  increases  in 
production levels supported  activity in North  America, although new  project 
activity levels were low, reflecting  the emerging price discount of  Canadian 
heavy oil compared to  the WTI benchmark price  as a result of  transportation 
constraints.

Divisional highlights
Targeted capacity addition  and product localisation  has supported growth  in 
the division's broad range of ancillary products and services. This growth has
been supported by expansion of the  sales and service footprint, a key  source 
of market  differentiation,  with  13  new  sites  opened  worldwide.  Service 
capability has  also  been  enhanced through  investment  in  local  machining 
capability and technical skills to support the growing product portfolio.  The 
division enhanced its differentiated technology position during the year  with 
a number  of  advances  in  materials  technology  which  will  contribute  to 
prolonged wear  resistance  in  customers'  critical  applications.  Minerals 
research and development efforts have also been at the heart of major  product 
launches in oil and gas markets.

Order input increased  by 7%  to £1,322m (2011:  £1,239m). Original  equipment 
orders  grew  3%  with  growth  weighted  to  the  first  half  of  the  year. 
Aftermarket orders grew 10%,  with the growth rate  recovering in the  fourth 
quarter  following  third   quarter  destocking  in   Australia  and   Brasil. 
Aftermarket orders represented 60% of total input (2011: 58%).

Linked to  new project  activity, the  division continued  to experience  good 
levels of demand  for slurry  pumps. Aftermarket input  strengthened across  a 
range of commodities with the benefits  of a large and growing installed  base 
reflected in 10% order  growth in slurry pump  spares and strong input  trends 
across a larger  aftermarket portfolio including  several multi-million  pound 
orders for cyclones and valves in South America and Canada and a multi-million
pound hose contract for a Latin  American project. The division also grew  its 
presence in  the  screen machine  and  screen media  market,  benefiting  from 
investment in localised  manufacturing. The  first major  contract awards  for 
Linatex wear resistant lined valves and cyclones were received for one of  the 
world's largest  minerals sands  projects in  East Africa,  a highlight  of  a 
strong overall  2012  performance  in the  African  market.  Emerging  markets 
accounted for 53% of input (2011:  47%) with order growth from South  American 
and African markets rising by 18% and 30% respectively. 

Revenue increased by 12% to £1,334m (2011: £1,195m). Original equipment  sales 
increased 9% and accounted  for 40% of revenues  (2011: 41%) with second  half 
sales broadly matching  the prior year  record. Production-driven  aftermarket 
revenues increased by 13%.

Operating profit  increased by  21% to  £256m (2011:  £211m) as  the  division 
benefited from strong revenue growth and margin expansion. 

Operating  margin  increased  to  19.2%   (2011:  17.7%)  and  was  ahead   of 
expectations reflecting the  strengthening aftermarket  revenue mix  alongside 
benefits from procurement initiatives,  productivity gains and effective  cost 
control. In  the  second half  of  the year  margins  were also  supported  by 
targeted cost and headcount  reductions in Brasil  and Australia, the  markets 
hardest hit by falling coal and iron  ore prices, with total one-off costs  of 
£4m incurred in the year (2011: £1m).

Capital expenditure of  £50m (2011:  £49m) was  invested in  foundry and  wear 
resistant lining production,  as well  as expansion of  the division's  global 
sales and service footprint. Research  and development spend increased by  22% 
to £13m  as  the  division  continued  to  develop  its  materials  technology 
positions and supported collaborative innovation efforts across the Group.

OIL & GAS

Weir Oil & Gas provides superior  products and service solutions to  upstream, 
production, transportation, refining and related industries. Upstream products
include pressure pumping equipment and services and pressure control  products 
and rental  services. Downstream  products  include API  610 pumps  and  spare 
parts. Equipment repairs, upgrades, certification and asset management & field
services are delivered globally by Weir Oil & Gas Services.

£m                     H1^1     H2   2012  2011^1  Growth LFL Growth
Input OE                157    110    267     479    -44%       -66%
Input aftermarket       214    196    410     391     +5%       -12%
Input Total             371    306    677     870    -22%       -41%
Revenue OE              252    132    384     388     -1%       -28%
Revenue aftermarket     238    222    460     359    +28%        +8%
Revenue Total           490    354    844     747    +13%       -10%
EBITA                   123     88    211     185    +14%       -12%
Operating margin^2    25.0%  24.9%  25.0%   24.8%  +20bps     -40bps
^12011 and H1 restated at 2012 average exchange rates
^2Adjusted to exclude exceptional items and intangibles amortisation

Market drivers
In North American pressure pumping markets, the dual effects of US natural gas
prices falling below economic incentive levels and relatively high, stable oil
prices resulted in a shift of drilling and completion activity from dry gas to
oil  and  liquids-rich  shale  formations.   Over  the  year,  US   horizontal 
gas-directed rig count declined  by 43% while horizontal  oil and liquids  rig 
count increased by around 28% with total US land rig count falling by 13%.  A 
decline was seen in customer  activity over the final  quarter of the year  as 
2012 drilling and completion budgets were exhausted.

Advances in  technology continue  to reduce  the time  required to  drill  and 
complete a well, with the number of wells drilled outstripping the movement in
average rig count, supporting demand for pressure control equipment providers.
In pressure pumping, analysts estimate  that frac equipment utilisation  rates 
had fallen to around  75% by the  end of 2012  (PacWest February 2013).  Total 
North American frac demand of around 13 million horsepower at the end of  2012 
was at similar levels to H1 2011.

Aftermarket activity was  also impacted,  with overstocking of  fluid ends  in 
anticipation of higher  activity and lower  equipment utilisation and  service 
intensity, leading to pricing pressure in specific product categories.  Demand 
in international pressure pumping markets  grew strongly during the year  with 
38% growth in the frac fleet  outside North America to 4.4m (PacWest  February 
2013) horsepower.

Middle East services  markets grew strongly,  with increased Saudi  production 
and the ongoing  rebuilding of  Iraqi oilfield  infrastructure. In  downstream 
markets, pricing pressure  in original  equipment markets began  to ease  with 
good market  opportunities  in  the FPSO  (Floating  Production,  Storage  and 
Offloading) sector.

Divisional highlights
As anticipated,  the  division has  maintained  overall margins  despite  fast 
changing  market  conditions.  In   a  challenging  North  American   upstream 
environment, operational capability and capacity was rapidly aligned to market
needs. The division grew its market share in certain product segments  despite 
lower overall  activity  levels  and  the integrations  of  the  Seaboard  and 
Novatech acquisitions were completed, with plans developed to internationalise
both businesses and to enter the frac flowback market.

Weir's pressure pumping focused operations (SPM, Mesa and Novatech)  responded 
rapidly to  changing  market  conditions by  reducing  headcount,  in-sourcing 
machining and implementing lean initiatives and cost reduction programmes with
total annualised cost  savings of cUS$25m.  The expanded aftermarket  pressure 
pumping portfolio  has  enabled  the  successful bundling  of  SPM,  Mesa  and 
Novatech products  with annual  commitments  secured from  a number  of  large 
service companies. Outside North America, like for like upstream international
input grew by over a third during the year.

Good progress was  also made by  the Middle East  Service operations with  the 
award of a  number of  significant contracts including  a multi-million  pound 
rotating equipment maintenance contract for  the refurbishment of the  Rumaila 
oilfield in Iraq. Downstream operations delivered a much improved performance
on last year due to the first  benefits of the completed restructuring of  the 
operations.

Order input at £677m (2011: £870m) was  22% lower and 41% lower like for  like 
due to weakness in pressure pumping markets. Original equipment input fell 44%
and 66% like for like as pressure  pumping demand fell sharply as a result  of 
frac pump overcapacity. Aftermarket input was up 5% but down 12% like for like
with strong growth in  Services offset by  lower aftermarket pressure  pumping 
orders.

Like for  like  upstream business  input  (SPM and  Mesa)  fell 51%  to  £359m 
(US$569m), with quarterly order levels  broadly flat since the second  quarter 
against the background of a  declining rig count. A  total of US$139m of  2011 
orders were  cancelled in  the  year and  reflected  as an  opening  orderbook 
adjustment. Input  from  Seaboard was  up  on the  equivalent  pre-acquisition 
period although growth moderated in the second half as market activity  levels 
fell.

Strong input growth was  achieved at downstream  and Service operations,  with 
Middle East  Services benefiting  from an  enhanced operational  presence  and 
increased activity levels in  Saudi Arabia and  Iraq. Improving conditions  in 
downstream markets contributed to higher original equipment orders including a
strategic contract in the FPSO market.

Revenue increased 13% to £844m (2011: £747m),  but was down 10% like for  like 
with equivalent upstream revenues of  £511m (US$810m) (2011: US$982m) in  line 
with expectations.  Seaboard revenues  increased  10% on  the  pre-acquisition 
period while Novatech  revenues declined, reflecting  pressure pumping  market 
conditions. Service and downstream revenues grew by 25%. 

Operating profit including  joint ventures  increased by 14%  to £211m  (2011: 
£185m) but  fell  12%  on  a  like  for  like  basis.  Seaboard  and  Novatech 
contributed £45m  before  integration  costs  of  £3m  (2011  acquisition  and 
integration costs:  £5m),  10%  higher  than  the  equivalent  pre-acquisition 
period. Total one off  costs of £4m  were incurred in  the year (2011:  £11m). 
Good profit progression at Service operations and a positive downstream profit
performance also contributed.

Operating margin of 25.0% (2011: 24.8%) increased year on year, with  upstream 
margins resilient despite  challenging pressure pumping  markets, an  improved 
performance in downstream and Service businesses, and lower one off costs.  On 
a like for  like basis,  margins of  25.1% were down  40bps and  in line  with 
expectations. The division  reacted quickly to  the changing pressure  pumping 
market conditions  by introducing  a range  of efficiency  and cost  reduction 
measures  to  preserve  profitability.  Underlying  margins  at  Seaboard  and 
Novatech were  in line  with  the divisional  average, representing  a  180bps 
improvement on the equivalent pre-acquisition period.

Capital expenditure of  £52m (2011: £32m)  was invested in  support of  growth 
plans including flow capacity expansion  at Weir SPM, integration projects  at 
Seaboard and Novatech and rapid  response manufacturing centres in Canada  and 
Dubai as  well as  new  service centres  in the  US,  Iraq and  Singapore.  In 
response to  the lower  demand environment  in North  America, the  previously 
announced US$75m  expansion of  Weir  SPM was  reduced  to less  than  US$60m. 
Overall spending on research and development  increased by 46% to £8m as  the 
division seeks  to  maintain  the  strong  new  product  development  momentum 
established in 2012.

POWER & INDUSTRIAL

Weir Power & Industrial designs and manufactures valves, pumps and turbines as
well as providing specialist support services to the global power  generation, 
industrial and oil and gas sectors.

                                                 Reported
£m                    H1^1     H2  2012  2011^1    Growth LFL Growth
Input OE                99     94   193     160      +20%       +12%
Input aftermarket       96     72   168     146      +15%       +14%
Input Total            195    166   361     306      +18%       +13%
Revenue OE              85     85   170     169       +1%        -3%
Revenue aftermarket     68     85   153     132      +15%       +15%
Revenue Total          153    170   323     301       +7%        +5%
EBITA                   11     20    31      26      +20%        +1%
Operating margin^2    7.5%  11.7%  9.7%    8.7%   +100bps     -40bps
^12011 and H1 restated at 2012 average exchange rates
^2Adjusted to exclude exceptional items and intangibles amortisation

Market drivers
Nuclear new  build  activity  in  the  US  and  Europe  remained  on  hold  as 
post-Fukushima safety  reviews concluded,  with activity  throughout the  year 
centred on Asia-Pacific, Eastern Europe and the Middle East, where Korean EPCs
(Engineering, Procurement and  Construction) won a  number of major  projects. 
Nuclear maintenance and  repair markets  were positive in  the US  and the  UK 
which together  with increased  CCGT (Combined  Cycle Gas  Turbine) new  build 
activity in North America, provided some mitigation against lower nuclear  new 
build activity. In North America, low economic growth and power prices led  to 
project cancellations and difficult trading conditions in general  industrial, 
power and  hydro markets  although  a number  of hydro  project  opportunities 
emerged towards  the  end  of  the year.  While  European  renewables  markets 
continued to be subdued, the division  gained traction towards the end of  the 
year in international projects. 

Divisional highlights
The strategic focus  of the division  during 2012 has  been driving input  and 
order book growth, with restructuring  of the valves businesses undertaken  in 
order to  develop  a  strong  and  unified  global  platform  for  the  valves 
portfolio. At the  same time, initiatives  to enhance operational  performance 
and improve margins  have gained momentum,  with further leverage  of the  low 
cost supply  chain and  additional supply  chain actions  underway across  the 
manufacturing operations.

Order input increased by  18% to £361m (2011:  £306m) with strong growth  from 
valves and service operations. Nuclear input  of £72m (2011: £71m) included  a 
multi-million pound  project  award from  a  Korean EPC  for  nuclear  service 
control valves in  new build  reactors in  the Middle  East. Overall,  control 
valve orders more than doubled,  benefiting from momentum in strategic  growth 
initiatives and a strong  first full year  performance by Weir  International. 
Low levels  of activity  in North  America affected  the US  commercial  valve 
business in the second half  of the year while  Weir American Hydro secured  a 
number  of  multi-million  dollar  orders  from  major  North  American  power 
companies for  rehabilitation, turbine  runner replacement  and related  field 
service work, including the Nine Mile Dam hydro project towards the end of the
period. European  input  was  up  year  on  year  despite  difficult  economic 
conditions in the eurozone. Aftermarket input of £168m (2011: £146m) benefited
from valve  and service  opportunities. The  proportion of  orders from  power 
markets was 60% (2011: 57%), with input from the oil and gas market growing by
12% year on year.  Input from the  Middle East, Africa  and Asia increased  by 
over 30%.

Revenue increased  by  7% to  £323m  (2011: £301m)  with  a strong  full  year 
contribution from Weir International  in South Korea.  Like for like  revenues 
were up  5% with  revenues from  emerging  markets increasing  by 11%  as  the 
division benefits from its increased routes to market.

Operating profit increased  by 20%  to £31m (2011:  £26m), 1%  like for  like, 
benefiting from strong revenue growth in the valve operations and a first full
year contribution from Weir International.

Operating margin increased to  9.7% (2011: 8.7%)  benefiting from measures  to 
improve cost competitiveness  alongside a  reduction in  one-off costs,  which 
totalled £1m (2011: £5m).

Capital expenditure  of £19m  (2011:  £13m) included  a new  Montreal  service 
centre and the consolidation in July of the US valve production facilities  in 
a single  facility at  Ipswich,  Massachusetts supporting  the creation  of  a 
unified global valves platform. The opening of a sales office in Seoul,  South 
Korea provides  additional traction  within the  Asia-Pacific region  for  our 
control valve, service and speciality pump businesses. Investment in  research 
and development was £2m.

STRATEGIC PROGRESS
The Group has delivered  on its 2012  strategic priorities, strengthening  the 
business  through  targeted  investment  in   new  products  and  research   & 
development and effective  management of  the cost base  to support  continued 
sustainable profit growth ahead of our end markets.

Seaboard and Novatech  have been successfully  integrated into the  Oil &  Gas 
division,  with  both  businesses   performing  well  in  challenging   market 
conditions.  Seaboard  supports  the  strategy  of  diversifying  the  Group's 
upstream exposure  to  pressure pumping  into  the adjacent  pressure  control 
market, which  will also  benefit  from the  long  term growth  prospects  for 
unconventional  production.  Growth  opportunities  for  Seaboard  have   been 
validated and  the  product range  is  already being  taken  to  international 
markets. At the  end of  the calendar year  we extended  our pressure  control 
presence in the drilling phase of  the well lifecycle through an agreement  to 
acquire Mathena, Inc.

Flow control production capacity was added  at Weir SPM, with the  development 
of a bundled product offering gaining traction in the second half of the year.
An initial phase of planned foundry  expansion increases our ability to  serve 
global minerals and oil sands markets with capacity additions underway at  our 
European foundry centre in the UK.

The innovation framework developed  in the last two  years continues to  bring 
new products to market. The highlight in  2012 has been the five new  products 
launched for oil and gas customers, increasing our addressable market by  some 
US$500m and leveraging market leading  technology from all our divisions  into 
the North American upstream oil and  gas sector. This year, good progress  has 
been made on supply chain and procurement initiatives, safety performance  and 
the ongoing development of the people who work for Weir.

The strategy is underpinned by four  pillars which drive growth - Value  Chain 
ExcelIence, Innovation, Collaboration and Global Capability. In 2013, we  will 
continue to  pursue  this  strategy, enhancing  supply  chain  performance  to 
increase customer responsiveness as we aim  to grow ahead of our end  markets. 
We will  extend the  presence  of the  Minerals  division in  the  comminution 
market, capture  the North  American  and international  growth  opportunities 
available to Seaboard and  Mathena in our  enlarged pressure control  business 
and we will continue  to drive growth in  power markets through an  integrated 
global valves platform. Collaboration  across the Group  will be supported  by 
developing the IT  platform and we  will enhance returns  through an  improved 
working capital performance.

MANAGEMENT AND BOARD CHANGES
As previously announced, Keith Ruddock joined the Group as General Counsel and
Company Secretary following the retirement  of Alan Mitchelson at the  Group's 
AGM in  May. Scot  Smith  resigned and  was  replaced as  Divisional  Managing 
Director, Minerals  by  Dean  Jenkins  in August  2012,  with  Kevin  Spencer, 
previously Regional Managing Director Weir  Minerals Europe replacing Dean  as 
Divisional Managing  Director, Power  & Industrial.  On 15  February 2013  the 
Group  announced  the  appointment  of  Charles  Berry  to  the  Board  as   a 
Non-Executive Director, with effect from 1 March 2013  

POST- BALANCE SHEET EVENTS
On 31 December 2012 Weir Oil & Gas completed the acquisition of Mathena,  Inc, 
a leading  provider of  pressure  control rental  equipment and  services  for 
onshore oil and gas drilling  applications. Consideration was via an  initial 
payment of US$240m (£148m)  with a further  maximum deferred consideration  of 
US$145m payable over two years, contingent upon meeting profit growth targets.
On 20 February 2013 the Group announced  the acquisition of R Wales group  of 
companies and the Cheong foundry in  Malaysia, with agreement also reached  to 
acquire the Xmeco foundry in South Africa. The combined consideration for the
three acquisitions will be £55m.

OUTLOOK 

MINERALS
Weir Minerals remains  well positioned to  benefit from the  strong long  term 
market  fundamentals  in  mining  and  minerals  processing,  underpinned   by 
urbanisation in  emerging markets  and their  demand for  raw materials.  This 
ongoing  demand,  coupled  with  declining  ore  grades,  supports   continued 
substantial investment above historic levels by miners over the coming  years, 
although the medium term nature  of capital investment may increasingly  focus 
on brownfield  and production  optimisation  projects with  absolute  industry 
capital expenditure levels expected  to remain above  2010 levels. Global  ore 
production is  expected  to  grow  by  over 3%  per  annum  through  to  2015, 
supporting aftermarket products and services growth.

In 2013 we  expect mining  capex to  decline relative  to 2012  but remain  at 
levels supportive  of the  continued expansion  of the  installed base.  While 
fewer greenfield projects are  expected to reach order  point compared to  the 
run rate  in  the  first half  of  2012,  we expect  a  number  of  brownfield 
expansions as  miners focus  on maximising  returns from  existing  production 
assets. With the order  mix continuing to  shift towards aftermarket  products 
and services, market forecasts of positive ore production volume growth and  a 
continuing focus  on increasing  our market  share of  ancillary products  and 
services mean  that we  anticipate good  growth in  shorter cycle  aftermarket 
orders. Together  with  delivery of  a  strong  opening order  book,  this  is 
expected to result  in higher  2013 revenues  and operating  profits. After  a 
stronger than expected second half 2012 margin performance, operating  margins 
are expected to be at a broadly similar level to 2012 as the business balances
the benefits from the growing aftermarket mix alongside sensible cost  control 
and continued investment in its growth plans.

OIL & GAS
The medium  term outlook  for  global pressure  pumping and  pressure  control 
markets remains positive,  with continued investment  in North American  shale 
plays by  national and  international  oil companies.  A relatively  high  and 
stable oil price should support continuing North American production increases
as the  US pursues  energy independence.  Low US  gas prices  are expected  to 
support increased US gas  fired power and industrial  demand as US  businesses 
benefit from the  competitiveness of lower  energy input costs.  International 
shale development  is  expected  to  continue to  grow,  with  Russia,  China, 
Argentina, North Africa,  Saudi Arabia and  Australia becoming larger  markets 
over the next two to three years.

Pressure pumping markets are  expected to remain competitive  in 2013 and  our 
pressure pumping business unit (SPM, Mesa and Novatech) entered the year  with 
a considerably lower orderbook than the  prior year period. Minimal levels  of 
original  equipment  capex   are  expected  throughout   2013  with   material 
overcapacity continuing to affect frac pump demand. With low single digit  rig 
count growth forecast, aftermarket input is expected to progressively increase
as customers work through inventory levels.

In pressure  control, Seaboard  is  expected to  make  good progress,  as  the 
business seeks to benefit from  the organic growth opportunities available  in 
frac rental, frac  flowback and international  markets. Additional  geographic 
growth opportunities  also  exist  for Mathena's  product  range  through  the 
division's leading service network.

At the Middle  East Services businesses  Iraqi and Saudi  Arabian markets  are 
expected to be particularly strong. A continuation of the improved  downstream 
performance is forecast.

In total, divisional revenues  including Mathena are  expected to be  slightly 
lower year on year with underlying operating margins broadly in line with 2012
as exposure to  pressure pumping falls  to around 50%  of divisional  revenues 
(c.15% of Group revenues).

POWER & INDUSTRIAL
Global macro-economic  concerns  continue  to slow  the  recovery  of  general 
industrial markets  with  an  expected improvement  in  global  power  markets 
leading to  increased service  and aftermarket  demand. Several  major  Korean 
nuclear and conventional domestic power plant projects are proceeding in  2013 
and Korean EPCs continue to successfully capture global opportunities. Weir is
well positioned to benefit through its global presence and its broadened valve
range, including good control valve  opportunities. As the business  continues 
to expand internationally we see an increasing range of opportunities for  the 
renewables operations. The division also expects to benefit from targeting the
aftermarket opportunities  of the  large valve  installed base  outside  North 
America. Strategic  initiatives  are  expected to  support  increased  organic 
growth, particularly in Asia-Pacific and the oil and gas sector.

The financial performance in 2013 is expected to benefit from a strong opening
orderbook, steadily improving power markets, continuing momentum in  strategic 
initiatives and ongoing  operational excellence actions  resulting in  revenue 
and profit growth with margins broadly in line with 2012.

SUMMARY
Over the medium  term the Group  remains well positioned  to benefit from  the 
structural growth expected in  each of our end  markets. Demand for  minerals, 
oil and  gas and  power is  underpinned by  continuing population  growth  and 
industrialisation in developing economies. Growing desire for energy  security 
will support  the  international development  of  unconventional oil  and  gas 
resources and  industrialisation,  environmental  concerns  and  ageing  power 
plants will accelerate the need for new and refurbished power infrastructure.

In 2013, despite more challenging markets, the Group will continue to  deliver 
profitable growth through new product introductions and a range of operational
initiatives. Assuming a gradual economic and end market improvement, we expect
to deliver low single digit revenue growth and broadly stable margins in  2013 
with lower first half profits offset  by growth in the second half.  Alongside 
substantially higher cash  generation the Group  plans the eighth  consecutive 
year of double digit dividend growth.

This information includes 'forward-looking statements'. All statements  other 
than statements of historical fact  included in this presentation,  including, 
without limitation,  those  regarding  the Weir  Group's  financial  position, 
business strategy, plans (including development plans and objectives  relating 
to the  Company's products  and  services) and  objectives of  management  for 
future operations, are  forward-looking statements.  These statements  contain 
the words "anticipate", "believe", "intend", "estimate", "expect" and words of
similar meaning.  Such forward-looking  statements involve  known and  unknown 
risks, uncertainties and other important  factors that could cause the  actual 
results, performance or achievements of the Company to be materially different
from future results, performance or achievements expressed or implied by  such 
forward-looking statements.  Such  forward-looking  statements  are  based  on 
numerous assumptions  regarding  the  Company's present  and  future  business 
strategies and  the environment  in  which the  Company  will operate  in  the 
future. These forward-looking  statements speak only  as at the  date of  this 
document. The Company  expressly disclaims  any obligation  or undertaking  to 
disseminate  any  updates  or  revisions  to  any  forward-looking  statements 
contained herein  to reflect  any change  in the  Company's expectations  with 
regard thereto or any change in  events, conditions or circumstances on  which 
any such statement is based. Past business and financial performance cannot be
relied on as an indication of future performance.

AUDITED RESULTS
Consolidated Income Statement
for the 52 weeks ended 28 December 2012
                                                        52 weeks ended 30 December 2011 
                      52 weeks ended 28 December 2012           (Restated note 1)
                            Before  Exceptional               Before  Exceptional
                       exceptional      items &          exceptional      items &
                           items &  intangibles              items &  intangibles
                       intangibles amortisation          intangibles amortisation
                      amortisation     (note 3)   Total amortisation     (note 3)     Total
                Notes           £m           £m      £m           £m           £m        £m
Continuing
operations
Revenue             2      2,538.3            - 2,538.3      2,292.0            -   2,292.0
Continuing
operations
Operating
profit before
share of
results of
joint ventures               479.2       (16.5)   462.7        407.9        (4.8)     403.1
Share of
results of
joint ventures                 6.4            -     6.4          4.8            -       4.8
Operating
profit                       485.6       (16.5)   469.1        412.7        (4.8)     407.9
Finance costs               (46.5)        (2.6)  (49.1)       (19.4)        (0.7)    (20.1)
Finance income                 5.2            -     5.2          4.3            -       4.3
Other finance
costs -
retirement
benefits                     (1.2)            -   (1.2)        (1.3)            -     (1.3)
Profit before
tax from
continuing
operations                   443.1       (19.1)   424.0        396.3        (5.5)     390.8
Tax expense         4      (124.2)         12.6 (111.6)      (114.2)          1.8   (112.4)
Profit for the
period from
continuing
operations                   318.9        (6.5)   312.4        282.1        (3.7)     278.4
Profit for the
period from
discontinued
operations          5            -          3.3     3.3            -         19.9      19.9
Profit for the
period                       318.9        (3.2)   315.7        282.1         16.2     298.3
Attributable to
Equity holders
of the Company               318.6        (3.2)   315.4        282.1         16.2     298.3
Non-controlling
interests                      0.3            -     0.3            -            -         -
                             318.9        (3.2)   315.7        282.1         16.2     298.3
Earnings per
share               6
Basic - total
operations                                       148.6p                              141.2p
Basic -
continuing
operations                  150.1p               147.1p       133.6p                 131.8p
Diluted - total
operations                                       147.7p                              139.8p
Diluted -
continuing
operations                  149.2p               146.2p       132.2p                 130.5p
Consolidated Statement of Comprehensive Income
for the 52 weeks ended 28 December 2012
                                                                                  (Restated
                                                                                    note 1)
                                                                         52 weeks  52 weeks
                                                                         ended 28  ended 30
                                                                         December  December
                                                                             2012      2011
                                                                               £m        £m
Profit for the period                                                       315.7     298.3
Other comprehensive income
Gains (losses) taken to equity on cash flow hedges                            1.4     (1.1)
Exchange losses on translation of foreign operations                       (84.9)    (18.9)
Exchange gains (losses) on net investment hedges                             38.6     (1.4)
Actuarial losses on defined benefit plans                                  (14.1)    (45.0)
Reclassification adjustments taken to the income statement on cash
flow hedges                                                                   0.8     (1.5)
Tax relating to other comprehensive income                                    3.0      12.2
Net other comprehensive income                                             (55.2)    (55.7)
Total net comprehensive income for the period                               260.5     242.6
Attributable to
Equity holders of the Company                                               260.5     242.6
Non-controlling interests                                                       -         -
                                                                            260.5     242.6
Consolidated Balance Sheet
at 28 December 2012
                                                                                  (Restated
                                                                                    note 1)
                                                                                         30
                                                                      28 December  December
                                                                             2012      2011
                                                               Notes           £m        £m
ASSETS
Non-current assets
Property, plant & equipment                                                 374.0     318.9
Intangible assets                                                         1,454.1   1,415.1
Investments in joint ventures                                                12.0      11.4
Deferred tax assets                                                          30.4      38.7
Derivative financial instruments                                  11          0.8       0.1
Total non-current assets                                                  1,871.3   1,784.2
Current assets
Inventories                                                                 512.7     463.8
Trade & other receivables                                                   478.2     516.1
Construction contracts                                                       21.7      19.6
Derivative financial instruments                                  11          3.6       6.4
Income tax receivable                                                         4.1      11.6
Cash & short-term deposits                                                  391.1     113.9
Total current assets                                                      1,411.4   1,131.4
Total assets                                                              3,282.7   2,915.6
LIABILITIES
Current liabilities
Interest-bearing loans & borrowings                                          65.4      92.0
Trade & other payables                                                      485.8     569.1
Construction contracts                                                       13.7      26.8
Derivative financial instruments                                  11         14.7      24.4
Income tax payable                                                           28.6      33.4
Provisions                                                                   36.4      55.5
Total current liabilities                                                   644.6     801.2
Non-current liabilities
Interest-bearing loans & borrowings                                       1,014.6     695.1
Other payables                                                               26.3      15.5
Derivative financial instruments                                  11          0.8      15.2
Provisions                                                                   33.2      37.1
Deferred tax liabilities                                                    162.5     149.3
Retirement benefit plan deficits                                  10         90.4      84.7
Total non-current liabilities                                             1,327.8     996.9
Total liabilities                                                         1,972.4   1,798.1
NET ASSETS                                                                1,310.3   1,117.5
CAPITAL & RESERVES
Share capital                                                                26.7      26.6
Share premium                                                                38.0      38.0
Treasury shares                                                             (5.6)     (5.6)
Capital redemption reserve                                                    0.5       0.5
Foreign currency translation reserve                                         37.5      83.5
Hedge accounting reserve                                                      0.2     (1.6)
Retained earnings                                                         1,209.8     974.0
Shareholders equity                                                       1,307.1   1,115.4
Non-controlling interests                                                     3.2       2.1
TOTAL EQUITY                                                              1,310.3   1,117.5
Consolidated Cash Flow Statement
for the 52 weeks ended 28 December 2012
                                                                         52 weeks  52 weeks
                                                                         ended 28  ended 30
                                                                         December  December
                                                                             2012      2011
                                                               Notes           £m        £m
Continuing operations
Cash flows from operating activities                              12
Cash generated from operations                                              398.6     302.6
Additional pension contributions paid                                       (7.5)     (6.6)
Income tax paid                                                           (104.9)    (97.3)
Net cash generated from operating activities                                286.2     198.7
Continuing operations
Cash flows from investing activities
Acquisitions of subsidiaries                                      12      (123.3)   (386.0)
Disposals of subsidiaries                                         12         22.9         -
Purchases of property, plant & equipment & intangible
assets                                                             8      (123.6)    (95.4)
Other proceeds from sale of property, plant & equipment
& intangible assets                                                           7.3       4.0
Interest received                                                             5.1       4.3
Dividends received from joint ventures                                        5.4       4.1
Net cash used in investing activities                                     (206.2)   (469.0)
Continuing operations
Cash flows from financing activities
Purchase of shares for equity settled share-based
incentives                                                                  (3.0)     (0.4)
Proceeds from borrowings                                                    786.9     469.0
Repayments of borrowings                                                  (462.5)    (50.8)
Settlement of external debt of subsidiary on
acquisition                                                       12        (1.9)    (55.4)
Settlement of derivative financial instruments                             (11.0)    (10.9)
Interest paid                                                              (33.4)    (17.7)
Proceeds from increase in non-controlling interests                           1.0       1.7
Dividends paid to equity holders of the Company                            (71.7)    (59.5)
Net cash generated from financing activities                                204.4     276.0
Net increase in cash & cash equivalents from continuing
operations                                                                  284.4       5.7
Net increase in cash & cash equivalents from
discontinued operations - investing activities                                  -      24.6
Cash & cash equivalents at the beginning of the period                      108.6      79.5
Foreign currency translation differences                                    (8.8)     (1.2)
Cash & cash equivalents at the end of the period                  12        384.2     108.6

Consolidated Statement of Changes in Equity
for the 52 weeks ended 28 December 2012
                                                         Foreign                     Attributable
                                             Capital    currency      Hedge             to equity
                   Share   Share Treasury redemption translation accounting Retained   holders of Non-controlling   Total
                 capital premium   shares    reserve     reserve    reserve earnings  the Company       interests  equity
                      £m      £m       £m         £m          £m         £m       £m           £m              £m      £m
At 31 December
2010                26.6    38.0    (6.8)        0.5       103.8        0.4    758.8        921.3             0.4   921.7
Profit for the
period                 -       -        -          -           -          -    298.3        298.3               -   298.3
Losses taken to
equity on cash
flow hedges            -       -        -          -           -      (1.1)        -        (1.1)               -   (1.1)
Exchange losses
on translation
of foreign
operations             -       -        -          -      (18.9)          -        -       (18.9)               -  (18.9)
Exchange losses
on net
investment
hedges                 -       -        -          -       (1.4)          -        -        (1.4)               -   (1.4)
Actuarial losses
on defined
benefit plans          -       -        -          -           -          -   (45.0)       (45.0)               -  (45.0)
Reclassification
adjustments
taken to the
income statement
on cash flow
hedges                 -       -        -          -           -      (1.5)        -        (1.5)               -   (1.5)
Tax relating to
other
comprehensive
income                 -       -        -          -           -        0.6     11.6         12.2               -    12.2
Total net
comprehensive
income for the
period                 -       -        -          -      (20.3)      (2.0)    264.9        242.6               -   242.6
Proceeds from
increase in
non-controlling
interests              -       -        -          -           -          -        -            -             1.7     1.7
Cost of
share-based
payments
inclusive of tax
credits                -       -        -          -           -          -     11.0         11.0               -    11.0
Dividends              -       -        -          -           -          -   (59.5)       (59.5)               -  (59.5)
Exercise of LTIP
awards                 -       -      1.2          -           -          -    (1.2)            -               -       -
At 30 December
2011 (restated
note 1)             26.6    38.0    (5.6)        0.5        83.5      (1.6)    974.0      1,115.4             2.1 1,117.5
Profit for the
period                 -       -        -          -           -          -    315.4        315.4             0.3   315.7
Gains taken to
equity on cash
flow hedges            -       -        -          -           -        1.4        -          1.4               -     1.4
Exchange losses
on translation
of foreign
operations             -       -        -          -      (84.6)          -        -       (84.6)           (0.3)  (84.9)
Exchange gains
on net
investment
hedges                 -       -        -          -        38.6          -        -         38.6               -    38.6
Actuarial losses
on defined
benefit plans          -       -        -          -           -          -   (14.1)       (14.1)               -  (14.1)
Reclassification
adjustments
taken to the
income statement
on cash flow
hedges                 -       -        -          -           -        0.8        -          0.8               -     0.8
Tax relating to
other
comprehensive
income                 -       -        -          -           -      (0.4)      3.4          3.0               -     3.0
Total net
comprehensive
income for the
period                 -       -        -          -      (46.0)        1.8    304.7        260.5               -   260.5
Proceeds from
increase in
non-controlling
interests              -       -        -          -           -          -        -            -             1.1     1.1
Cost of
share-based
payments
inclusive of tax
charge                 -       -        -          -           -          -      4.9          4.9               -     4.9
Dividends              -       -        -          -           -          -   (71.7)       (71.7)               -  (71.7)
Purchase of
shares*                -       -    (2.0)          -           -          -        -        (2.0)               -   (2.0)
Exercise of LTIP
awards               0.1       -      2.0          -           -          -    (2.1)            -               -       -
At 28 December
2012                26.7    38.0    (5.6)        0.5        37.5        0.2  1,209.8      1,307.1             3.2 1,310.3

* These shares were purchased on the open market and are held by the Appleby
EBT on behalf of the Group for satisfaction of any future vesting of the
deferred bonus plan.

Notes to the Audited Results
1. Accounting policies
Basis of preparation
The audited  results  for the  52  weeks ended  28  December  2012 ("2012")  have  been prepared  in  accordance  with 
International Financial Reporting Standards (IFRS) as adopted by the European Union and applied in accordance with the
provisions of The Companies Act 2006.
The financial information set out in the audited results does not constitute the Group's statutory financial
statements for the 52 weeks ended 28 December 2012 within the meaning of section 434 of the Companies Act 2006 and has
been extracted from the full financial statements for the 52 weeks ended 28 December 2012.
Statutory financial statements for the 52 weeks ended 30 December 2011, which received an unqualified audit report,
have been delivered to the Registrar of Companies. The reports of the auditors on the financial statements for each
of the 52 weeks ended 30 December 2011 and 28 December 2012 were unqualified and did not contain a statement under
either section 498(2) or section 498(3) of the Companies Act 2006. The financial statements for the 52 weeks ended 28
December 2012 will be delivered to the Registrar of Companies and made available to all shareholders in due course.
The accounting policies applied in  preparing these audited results  are unchanged from those  set out in the  Group's 
2011 annual report except as described below.
The following  standards and  interpretations have  been adopted  in these  financial statements  and have  not had  a 
material impact on the Group's financial statements in the period of initial application:
 IFRS 7 Financial Instruments: Disclosure (Amendment)
 IAS12 Income Taxes (Amendment) - Deferred Taxes: Recovery of Underlying Assets
These financial statements are presented in sterling. All values  are rounded to the nearest 0.1 million pounds  (£m) 
except where otherwise indicated.
In order to provide the users of the financial statements with a more relevant presentation of the Group's  underlying 
performance, profit for each financial year has been analysed between:
i)profit before exceptional items and intangibles amortisation; and
ii)the effect of exceptional items and intangibles amortisation.
 a. Exceptional items are items of  income and expense which, because of the  nature, size and / or infrequency  of 
the events giving rise to  them, merit separate presentation  to allow a better understanding  of the elements of  the 
Group's financial performance  for the period  and are presented  on the face  of the income  statement to  facilitate 
comparisons with prior periods and  assessment of trends in financial  performance. Exceptional items may include  but 
are not restricted to:  profits or losses  arising on disposal  of business or  on closures of  business; the cost  of 
significant business restructuring; significant impairments of intangible or tangible assets; adjustments to the  fair 
value of acquisition related items such as contingent consideration and inventory; other items deemed exceptional  due 
to their significance, size or nature; and the related exceptional taxation.
 b. Intangibles amortisation, including impairment, has been shown separately to provide increased visibility  over 
the impact of increased acquisition activity on intangible assets.
Further analysis of the  items included in the  column "Exceptional items &  intangibles amortisation" is provided  in 
note 3 to the financial statements.
During the 52 weeks ended 28  December 2012, the provisional fair values  attributed to the 2011 acquisitions of  Weir 
International and  Seaboard were  finalised. In  accordance with  IFRS3,  the net  impact of  the adjustments  to  the 
provisional fair values has been recognised by means of a decrease to goodwill and the adjustments to the  provisional 
amounts have been recognised as  if the accounting for  the business combinations had  been completed at the  relevant 
acquisition dates. As such, all affected balances and amounts have been restated in the financial statements. To  this 
effect, the Consolidated Balance Sheet and affected notes  present restated comparative information as at 30  December 
2011. The Consolidated Income Statement  for the 52 weeks  ended 30 December 2011 has  been restated to reflect  £0.7m 
amortisation of customer relationships. Further details of the adjustments made to the provisional fair values can  be 
found in note 9.
In addition, the provisional fair values  of the acquisition of Novatech in  February 2012 were also finalised  during 
the period and details can be found in note 9.
2. Segment information
For management purposes,  the Group  is organised into  three operating  divisions: Minerals, Oil  & Gas  and Power  & 
Industrial. These three divisions are  organised and managed separately  based on the key  markets served and each  is 
treated as an  operating segment  and a  reportable segment in  accordance with  IFRS8. The  operating and  reportable 
segments were determined  based on the  reports reviewed by  the Chief Executive  which are used  to make  operational 
decisions.
The Minerals segment is  the global leader in  the provision of slurry  handling equipment and associated  aftermarket 
support for abrasive high wear applications used in the mining and oil sands. The Oil & Gas segment provides  products 
and service solutions to upstream, production, transportation, refining and related industries. The Power & Industrial
segment designs and manufactures valves, pumps  and turbines as well as  providing specialist support services to  the 
global power  generation, industrial  and oil  and gas  sectors.  All other  segments, which  are disclosed  as  Group 
companies, include the  results of LGE  Process which  supplies equipment to  the liquefied petroleum  gas marine  and 
onshore markets. This business was sold on 28 December 2012 (note 3).
The Chief Executive  assesses the  performance of the  operating segments  based on operating  profit from  continuing 
operations before exceptional  items and intangibles  amortisation, including impairment  ("segment result").  Finance 
income and  expenditure and  associated interest-bearing  liabilities  and derivative  financial instruments  are  not 
allocated to segments  as all  treasury activity  is managed centrally  by the  Group treasury  function. The  amounts 
provided to the Chief Executive with respect to assets  and liabilities are measured in a manner consistent with  that 
of the financial statements. The assets are allocated based on the operations of the segment and the physical location
of the asset. The liabilities are allocated based on the operations of the segment.
Transfer prices between business segments are  set on an arm's length basis  in a manner similar to transactions  with 
third parties.
The segment information for the reportable segments for the 52 weeks ended 28 December 2012 and the 52 weeks ended  30 
December 2011 is disclosed below.
                                                                                                  Total continuing
                                Minerals               Oil & Gas         Power & Industrial          operations
                                2012        2011      2012        2011           2012     2011           2012     2011
                                  £m          £m        £m          £m             £m       £m             £m       £m
Revenue
Sales to external
customers                    1,333.6     1,216.3     843.6       742.7          323.4    306.7        2,500.6  2,265.7
Inter-segment sales              4.3         5.2      15.3        14.7            4.0      6.6           23.6     26.5
Segment revenue              1,337.9     1,221.5     858.9       757.4          327.4    313.3        2,524.2  2,292.2
Group companies sales
to external customers                                                                                    37.7     26.3
Eliminations                                                                                           (23.6)   (26.5)
                                                                                                      2,538.3  2,292.0
Sales to external customers - 2011
at 2012 average exchange rates
Sales to external
customers                    1,333.6     1,195.3     843.6       746.8          323.4    301.4        2,500.6  2,243.5
Group companies sales
to external customers                                                                                    37.7     26.3
                                                                                                      2,538.3  2,269.8
Result (restated note
1)
Segment result before
share of results of
joint ventures                 255.9       213.9     204.2       178.3           31.5     26.8          491.6    419.0
Share of results of
joint ventures                     -           -       6.4         4.8              -        -            6.4      4.8
Segment result                 255.9       213.9     210.6       183.1           31.5     26.8          498.0    423.8
Group companies                                                                                           2.5      3.0
Unallocated expenses                                                                                   (14.9)   (14.1)
Operating profit before
exceptional items &
intangibles
amortisation                                                                                            485.6    412.7
Total exceptional items
& intangibles
amortisation                                                                                           (19.1)    (5.5)
Net finance costs
before exceptional
items                                                                                                  (41.3)   (15.1)
Other finance costs -
retirement benefits                                                                                     (1.2)    (1.3)
Profit before tax from
continuing operations                                                                                   424.0    390.8
Segment result - 2011
at 2012 average
exchange rates
Segment result before
share of results of
joint ventures                 255.9       211.5     204.2       180.2           31.5     26.0          491.6    417.7
Share of results of
joint ventures                     -           -       6.4         4.9              -        -            6.4      4.9
Segment result                 255.9       211.5     210.6       185.1           31.5     26.0          498.0    422.6
Group companies                                                                                           2.5      3.0
Unallocated expenses                                                                                   (14.9)   (14.1)
Operating profit before
exceptional items &
intangibles
amortisation                                                                                            485.6    411.5
There are no material revenues derived from a single external customer.
3. Exceptional items & intangibles amortisation
                                                                                                                  2011
                                                                                                              Restated
                                                                                                         2012 (note 1)
                                                                                                           £m       £m
Recognised in arriving at operating profit from continuing operations
Intangibles amortisation                                                                               (36.7)   (23.8)
Exceptional item - charging of fair value inventory uplift                                              (4.5)        -
Exceptional item - gain on sale of LGE Process                                                           30.5        -
Exceptional item - uplift in respect of contingent consideration liability                              (5.8)        -
Exceptional item - past service gain on UK defined benefit scheme                                           -     19.0
                                                                                                       (16.5)    (4.8)
Recognised in finance costs
Exceptional item - unwind of discount in respect of contingent consideration liability                  (2.6)    (0.7)
Recognised in arriving at profit for the period from discontinued operations
Exceptional items (note 5)                                                                                3.3     19.9
4. Income tax expense
                                                                                                                  2011
                                                                                                              Restated
                                                                                                         2012 (note 1)
                                                                                                           £m       £m
Group - UK                                                                                              (5.8)   (11.4)
Group - overseas                                                                                      (105.8)  (101.0)
Total income tax expense in the Consolidated Income Statement                                         (111.6)  (112.4)
The total income tax expense is disclosed in the Consolidated Income Statement as follows.
Tax expense - continuing operations before exceptional items & intangibles amortisation               (124.2)  (114.2)
          - exceptional items                                                                  1.5    (4.8)
          - intangibles amortisation                                                          11.1      6.6
Total income tax expense in the Consolidated Income Statement                                         (111.6)  (112.4)
The total income tax expense included in the Group's share of results of joint ventures is as
follows.
Joint ventures                                                                                          (1.2)    (0.6)
5. Discontinued operations
There were no  disposals of  core businesses during  the 52  weeks ended 28  December 2012  or the 52  weeks ended  30 
December 2011. The profit arising from discontinued operations of £3.3m was as a result of the release of  unutilised 
provisions relating to prior year disposals on expiration of the tax warranty periods.
In December 2011,  the Group disposed  of the former  Weir Pumps site  at Cathcart to  SPX Clyde UK  Limited for  cash 
proceeds of £25.0m resulting in a net gain of £19.9m (net  of tax of £nil) after taking account of disposal costs  and 
other costs arising from discontinued operations. Since the property  was used by the Weir Pumps business, which  was 
sold in 2007, the net gain was shown as a profit from discontinued operations.
Earnings per share from discontinued operations were as follows.
                                                                                                         2012     2011
                                                                                                        pence    pence
Basic                                                                                                     1.6      9.4
Diluted                                                                                                   1.5      9.3
These earnings per share figures were derived by dividing  the net loss attributable to equity holders of the  Company 
from discontinued operations of £3.3m (2011: £19.9m) by the weighted average number of ordinary shares for both  basic 
and diluted amounts shown in note 6.
6. Earnings per share
Basic earnings per share amounts are calculated by dividing  net profit for the period attributable to equity  holders 
of the Company by the weighted average number of  ordinary shares outstanding during the period. Diluted earnings  per 
share is calculated by dividing the net profit attributable  to equity holders of the Company by the weighted  average 
number of ordinary shares outstanding during the period (adjusted for the effects of dilutive share awards).
The following reflects the profit and share data used in the calculation of earnings per share.
                                                                                                                  2011
                                                                                                              Restated
                                                                                                         2012 (note 1)
Profit attributable to equity holders of the Company
 Total operations * (£m)                                                                               315.4    298.3
 Continuing operations * (£m)                                                                          312.1    278.4
 Continuing operations before exceptional items & intangibles amortisation * (£m)                      318.6    282.1
Weighted average share capital
Basic earning per share (number of shares, million)                                                     212.2    211.2
Diluted earnings per share (number of shares, million)                                                  213.5    213.4
The difference between the weighted average share capital for the purposes of the basic and the diluted earnings per
share calculations is analysed as follows.
                                                                                                         2012     2011
                                                                                                              Shares 
                                                                                               Shares Million Million
Weighted average number of ordinary shares for basic earnings per share                                 212.2    211.2
Effect of dilution: LTIP and deferred bonus awards                                                        1.3      2.2
Adjusted weighted average number of ordinary shares for diluted earnings per share                      213.5    213.4
The profit attributable to equity holders  of the Company used in the  calculation of both basic and diluted  earnings 
per share from continuing operations before exceptional items and intangibles amortisation is calculated as follows.
                                                                                                                  2011
                                                                                                              Restated
                                                                                                         2012 (note 1)
                                                                                                           £m       £m
Net profit attributable to equity holders from continuing operations *                                  312.1    278.4
Exceptional items & intangibles amortisation net of tax                                                   6.5      3.7
Net profit attributable to equity holders from continuing operations before exceptional items
& intangibles amortisation *                                                                            318.6    282.1
                                                                                                         2012     2011
                                                                                                        pence    pence
Basic earnings per share:
Total operations*                                                                                       148.6    141.2
Continuing operations*                                                                                  147.1    131.8
Continuing operations before exceptional items & intangibles amortisation*                              150.1    133.6
Diluted earnings per share:
Total operations*                                                                                       147.7    139.8
Continuing operations*                                                                                  146.2    130.5
Continuing operations before exceptional items & intangibles amortisation*                              149.2    132.2
*Adjusted for £0.3m (2011: £nil) in respect of non-controlling interests.
There have been no share options (2011: nil) exercised between the reporting date and the date of signing of these
financial statements.
7. Dividends paid & proposed
                                                                                                         2012     2011
                                                                                                           £m       £m
Declared & paid during the period
Equity dividends on ordinary shares
Final dividend for 2011: 25.8p (2010: 21.0p)                                                             54.8     44.3
Interim dividend for 2012: 8.0p (2011: 7.2p)                                                            16.9     15.2
                                                                                                         71.7     59.5
Proposed for approval by shareholders at the annual general meeting
Final dividend for 2012: 30.0p (2011: 25.8p)                                                             63.8     54.5
The proposed dividend is  based on the  number of shares  in issue, excluding  treasury shares held,  at the date  the 
financial statements were approved and authorised for issue.
The final dividend may differ due to increases or decreases in the number of shares in issue between the date of
approval of the report and financial statements and the record date for the final dividend.
8. Property, plant & equipment & intangible assets
                                                                                                         2012     2011
                                                                                                           £m       £m
Purchases of property, plant & equipment & intangible assets
- land & buildings                                                                                      27.9     18.0
- plant & equipment                                                                                     87.4     72.1
- intangible assets                                                                                      8.3      5.3
                                                                                                        123.6     95.4
Impairment of plant & equipment                                                                             -      0.4
In 2011 the impairment charge of £0.4m related to specific assets in one location which were unable to be  transferred 
to that operation's new location.
9. Business combinations
On 4 January 2012, the Group completed the acquisition of  Gema Industri AB and Gema Industrigummi AB ("Gema") for  an 
initial net cash  consideration of  £5m. Based in  Gallivare, Sweden,  Gema's core business  is providing  maintenance 
services to mines in northern Sweden. At  28 December 2012, the Group had acquired  100% of the voting shares of  Gema 
Industrigummi AB and 99% of  the voting shares of Gema  Industri AB and is in  the process of acquiring the  remaining 
shares in accordance with Swedish company law which has resulted in a further cash consideration of £0.6m.
On 22 February 2012, the Group completed the acquisition of 100% of the voting shares of Novatech LLC ("Novatech") for
a cash consideration of US$192m (£121m), net cash consideration of US$176m (£111m). Based in Dallas, Texas,  Novatech 
produces a  wide variety  of  valves for  high  pressure applications  used in  unconventional  upstream oil  and  gas 
operations. The fair values of Novatech are disclosed in the following table. The fair values are final following  the 
completion of the fair value exercise in respect of each class of asset. There are certain intangible assets  included 
in the £52.6m of goodwill recognised that cannot be individually separated and reliably measured due to their  nature. 
These items include anticipated business growth, synergies and an assembled workforce. The fair value and gross amount
of the trade receivables amount to £5.2m. None of the trade receivables have been impaired.
                                                                                                                  Weir
                                                                                                              Novatech
                                                                                                                  2012
                                                                                                                  Fair
                                                                                                                values
                                                                                                                    £m
Property, plant & equipment                                                                                        6.7
Inventories                                                                                                        7.3
Intangible assets
- customer relationships                                                                                          53.4
- brand name                                                                                                       4.5
- order backlog                                                                                                    1.8
- intellectual property                                                                                            4.7
Trade & other receivables                                                                                          5.2
Cash & cash equivalents                                                                                           10.2
Interest-bearing loans & borrowings                                                                              (1.9)
Trade & other payables                                                                                           (1.9)
Provisions                                                                                                       (0.1)
Deferred tax                                                                                                    (23.0)
Fair value of net assets                                                                                          66.9
Goodwill arising on acquisition                                                                                   52.6
Total consideration                                                                                              119.5
Cash consideration                                                                                               121.4
Settlement of external debt of subsidiaries on acquisition                                                       (1.9)
Total consideration                                                                                              119.5
The total net cash outflow on current year acquisitions was as follows:
Weir Novatech
- cash & cash equivalents acquired                                                                                10.2
- cash paid                                                                                                    (121.4)
Gema - net cash outflow                                                                                          (5.6)
Total cash outflow                                                                                             (116.8)
The Group acquired 60% of  the voting shares of  Weir International on 1  July 2011 and 100%  of the voting shares  of 
Seaboard on 14 December 2011. The remaining 40% of the voting shares of Weir International is subject to put and  call 
options exercisable between 2014 and 2019 and based upon an  EBITDA multiple of profit in the two years preceding  the 
exercise of the  options. The  cash consideration  paid was  £9.8m and  the estimated  fair value  of the  contingent 
consideration is £19.6m. This is  based on an assessment  of the probability of  possible outcomes discounted to  net 
present value. The range of possible outcomes on an undiscounted basis is between zero and £50.0m.

In the 2011  annual report  and accounts,  the fair  values on  acquisition of  Seaboard and  Weir International  were 
provisional, due to  the timing  of the transactions.  In the  52 weeks  ended 28 December  2012, the  fair values  of 
Seaboard and  Weir  International  have been  finalised  resulting  in  adjustments to  the  provisional  fair  values 
attributed. The following table summarises the adjustments made to the provisional fair values during the period.
                                                      Adjustments to provisional fair
                       Provisional fair values                    values                    Restated fair values
                        Weir           Weir                Weir          Weir             Weir          Weir
                    Seaboard  International     Total  Seaboard International   Total Seaboard International     Total
                        2011           2011      2011      2011          2011    2011     2011          2011      2011
                          £m             £m        £m        £m            £m      £m       £m            £m        £m
Property, plant
& equipment
- land &
buildings                0.6              -       0.6       0.3             -     0.3      0.9             -       0.9
- plant &
equipment               22.5            0.1      22.6     (3.2)             -   (3.2)     19.3           0.1      19.4
Intangible
assets
- brand name              -              -         -      31.6             -    31.6     31.6             -      31.6
- customer
relationships              -              -         -     157.6           7.6   165.2    157.6           7.6     165.2
Inventories             29.6            0.7      30.3     (6.0)             -   (6.0)     23.6           0.7      24.3
Trade & other
receivables             42.3            1.1      43.4     (1.1)             -   (1.1)     41.2           1.1      42.3
Cash & cash
equivalents              2.2            0.2       2.4         -             -       -      2.2           0.2       2.4
Interest-bearing
loans &
borrowings            (55.4)          (0.2)    (55.6)         -             -       -   (55.4)         (0.2)    (55.6)
Trade & other
payables              (41.5)          (1.6)    (43.1)     (3.6)             -   (3.6)   (45.1)         (1.6)    (46.7)
Provisions
- warranty            (1.5)              -     (1.5)     (1.8)             -   (1.8)    (3.3)             -     (3.3)
- other                   -              -         -     (0.5)             -   (0.5)    (0.5)             -     (0.5)
Income tax               6.3          (0.1)       6.2         -             -       -      6.3         (0.1)       6.2
Deferred tax             1.1              -       1.1    (67.2)             -  (67.2)   (66.1)             -    (66.1)
Fair value of
net assets               6.2            0.2       6.4     106.1           7.6   113.7    112.3           7.8     120.1
Goodwill arising
on acquisition         379.6           23.6     403.2   (106.1)         (7.6) (113.7)    273.5          16.0     289.5
Total
consideration          385.8           23.8     409.6         -             -       -    385.8          23.8     409.6
Cash
consideration          432.1            9.8     441.9         -             -       -    432.1           9.8     441.9
Settlement of
external debt on
acquisition           (55.4)              -    (55.4)         -             -       -   (55.4)             -    (55.4)
Contingent
consideration            9.1           14.0      23.1         -             -       -      9.1          14.0      23.1
Total
consideration          385.8           23.8     409.6         -             -       -    385.8          23.8     409.6
The cash outflow
on acquisitions
was as follows
Cash & cash
equivalents
acquired                 2.2            0.2       2.4         -             -       -      2.2           0.2       2.4
Cash paid            (432.1)          (9.8)   (441.9)         -             -       -  (432.1)         (9.8)   (441.9)
Net cash outflow     (429.9)          (9.6)   (439.5)         -             -       -  (429.9)         (9.6)   (439.5)
Together, Seaboard and Novatech contributed £173.3m to revenue and £45.5m to operating profit in the 52 weeks ended 28
December 2012. The contribution of Novatech to revenue and  to profit for the period from continuing operations  after 
exceptional items and intangibles amortisation was not material and so has not been separately disclosed. The combined
revenue and profit for the period from continuing operations after exceptional items and intangibles' amortisation  of 
the Group, assuming  that Novatech had  been acquired  at the start  of 2012,  would have been  £2,544.9m and  £313.9m 
respectively. The revenue and operating profit  of Gema have not been disclosed  as they are deemed to be  immaterial. 
Acquisition costs in relation to Novatech of £0.3m have been included within operating profit.
10. Pensions & other post-employment benefit plans
                                                                                                         2012     2011
                                                                                                           £m       £m
Plans in deficit                                                                                         90.4     84.7
The net Group  deficit for retirement  benefit obligations  at the period  end was £90.4m  (2011: £84.7m)  reflecting 
equity / bond market performance and yield movements.
The past service gain for 2011 of £19.0m arose as a result of a decision by the Trustees of The Weir Group Pension and
Retirement Saving Scheme that,  following the Government's  change in legislation, certain  elements of pension  would 
increase in line  with Consumer  Prices Index  (CPI) rather  than the  Retail Prices  Index (RPI).  This decision  was 
announced to the members of the scheme in July 2011. The past service gain was recognised last year as an  exceptional 
item in the Consolidated Income Statement.
11. Derivative financial instruments
Set out in the table below is a summary of the types of derivative financial instruments included within each  balance 
sheet category.
                                                                                                         2012     2011
                                                                                                           £m       £m
Included in non-current assets
Forward foreign currency contracts designated as cash flow hedges                                           -      0.1
Other forward foreign currency contracts                                                                  0.8        -
                                                                                                          0.8      0.1
Included in current assets
Forward foreign currency contracts designated as cash flow hedges                                         0.2      0.6
Other forward foreign currency contracts                                                                  3.4      5.8
                                                                                                          3.6      6.4
Included in current liabilities
Forward foreign currency contracts designated as cash flow hedges                                         0.1      2.1
Forward foreign currency contracts designated as net investment hedges                                    0.3      0.4
Cross currency swaps designated as net investment hedges                                                    -     12.9
Other cross currency swaps                                                                                9.1        -
Other forward foreign currency contracts                                                                  5.2      9.0
                                                                                                         14.7     24.4
Included in non-current liabilities
Forward foreign currency contracts designated as cash flow hedges                                           -      0.7
Cross currency swaps designated as net investment hedges                                                  0.5     14.3
Other forward foreign currency contracts                                                                  0.3      0.2
                                                                                                          0.8     15.2
Net derivative financial liabilities                                                                     11.1     33.1
12. Additional cash flow information
                                                                                                                  2011
                                                                                                              Restated
                                                                                                         2012 (note 1)
                                                                                                           £m       £m
Continuing operations
Net cash generated from operations
Operating profit                                                                                        469.1    407.9
Non cash exceptional items                                                                             (20.2)        -
Share of results of joint ventures                                                                      (6.4)    (4.8)
Depreciation of property, plant & equipment                                                              49.4     37.3
Amortisation of intangible assets                                                                        36.7     23.8
Impairment of plant & equipment                                                                             -      0.4
Gains on disposal of property, plant & equipment                                                        (0.9)    (0.8)
Defined benefit plans past service credit                                                                   -   (19.0)
Funding of pension & post-retirement costs                                                              (1.3)    (1.3)
Employee share schemes                                                                                    7.5      4.9
Net foreign exchange including derivative financial instruments                                           0.3      4.5
(Decrease) increase in provisions                                                                      (18.7)      5.0
Cash generated from operations before working capital cash flows                                        515.5    457.9
Increase in inventories                                                                                (61.6)  (137.6)
Decrease (increase) in trade & other receivables & construction contracts                                24.4  (127.8)
(Decrease) increase in trade & other payables & construction contracts                                 (79.7)    110.1
Cash generated from operations                                                                          398.6    302.6
Additional pension contributions paid                                                                   (7.5)    (6.6)
Income tax paid                                                                                       (104.9)   (97.3)
Net cash generated from operating activities                                                            286.2    198.7
The settlement of the external debt  of Seaboard and Novatech on acquisition  has been classified as a financing  cash 
flow in accordance with IAS7
The following tables summarise the cashflows arising on acquisitions:
                                                                                                         2012     2011
                                                                                                           £m       £m
Acquisitions of subsidiaries
Current period acquisitions (see below)                                                               (114.9)  (384.1)
Previous periods acquisitions contingent consideration paid                                             (8.4)    (1.9)
                                                                                                      (123.3)  (386.0)
Settlement of external debt of subsidiary on acquisition                                                (1.9)   (55.4)
Acquisition of subsidiaries - current year acquisitions                                               (114.9)  (384.1)
Total cash outflow on acquisition of subsidiaries - current year (note 9)                             (116.8)  (439.5)
Previous periods acquisitions contingent consideration paid                                             (8.4)    (1.9)
Total cash outflow relating to acquisitions                                                           (125.2)  (441.4)
Disposals of subsidiaries
Current period disposals - proceeds                                                                      25.2        -
                    - cash disposed of                                             (1.8)        -
Prior period disposals                                                                                  (0.5)        -
                                                                                                         22.9        -
Cash and cash equivalents comprise the following
Cash & short term deposits                                                                              391.1    113.9
Bank overdrafts & short-term borrowings                                                                 (6.9)    (5.3)
                                                                                                        384.2    108.6
Reconciliation of net increase in cash & cash equivalents to movement in net debt
Net increase in cash & cash equivalents from continuing operations                                      284.4      5.7
Net increase in cash & cash equivalents from discontinued operations - investing activities
(note 5)                                                                                                    -     24.6
Net increase in debt                                                                                  (322.6)  (362.8)
Change in net debt resulting from cash flows                                                           (38.2)  (332.5)
Lease inceptions                                                                                        (0.1)    (0.9)
Loans acquired                                                                                          (2.3)   (55.6)
Foreign currency translation differences                                                                 24.9    (0.6)
Change in net debt during the period                                                                   (15.7)  (389.6)
Net debt at the beginning of the period                                                               (673.2)  (283.6)
Net debt at the end of the period                                                                     (688.9)  (673.2)
Net debt comprises the following
Cash & short-term deposits                                                                              391.1    113.9
Current interest-bearing loans & borrowings                                                            (65.4)   (92.0)
Non-current interest-bearing loans & borrowings                                                     (1,014.6)  (695.1)
                                                                                                      (688.9)  (673.2)
Proceeds from sale                                                                                       25.2        -
Cash disposed                                                                                           (1.8)        -
Net cash inflow from current year disposals                                                              23.4        -
Current year disposals had the following effect on the Group's assets and liabilities
Trade and other receivables                                                                               6.2        -
Construction contract assets                                                                              0.9        -
Net derivative financial instruments                                                                    (0.6)        -
Trade and other payables                                                                                (8.1)        -
Construction contract liabilities                                                                       (6.7)        -
Provisions                                                                                              (2.9)        -
Net assets disposed                                                                                    (11.2)        -
13. Related party disclosures
The following table provides the total  amount of significant transactions which  have been entered into with  related 
parties for the relevant financial year and outstanding balances at the period end.
                                                                                                         2012     2011
                                                                                                           £m       £m
Sales of goods to related parties - joint ventures                                                        1.0      0.5
Sales of services to related parties - joint ventures                                                     0.2      0.2
Purchases of goods from related parties - joint ventures                                                  1.7      0.8
Purchases of services from related parties - joint ventures                                               2.6      1.6
Amounts owed to related parties - group pension plans                                                     1.4      1.5
14. Legal claims
The company and certain subsidiaries are,  from time to time, parties to  legal proceedings and claims which arise  in 
the normal course of business. 
On 6 February 2013, an Opinion & Order was filed with the United States District Court, Southern District of New York
dismissing the claim against the Company (being one of many companies targeted) relating to a civil action for damages
arising from the UN Oil for Food programme which was raised in the US. Subsequently the Iraqi Government filed  notice 
of appeal and at the time of writing there has been no ruling by the Court on this appeal. We will continue to defend
this action vigorously.
To the extent not  already provided for, the  directors do not  anticipate that the outcome  of these proceedings  and 
claims, either individually or in aggregate, will have a material adverse effect upon the Group's financial position.
15. Exchange rates
The principal exchange rates applied in the preparation of these financial statements were as follows.
                                                                                                         2012     2011
Average rate (per £)
US dollar                                                                                                1.58     1.60
Australian dollar                                                                                        1.53     1.56
Euro                                                                                                     1.23     1.15
Canadian dollar                                                                                          1.58     1.59
Brazilian real                                                                                           3.10     2.68
Chilean peso                                                                                           770.51   774.99
South African rand                                                                                      13.01    11.64
Closing rate (per £)
US dollar                                                                                                1.62     1.55
Australian dollar                                                                                        1.56     1.51
Euro                                                                                                     1.22     1.20
Canadian dollar                                                                                          1.61     1.58
Brazilian real                                                                                           3.30     2.89
Chilean peso                                                                                           775.72   805.90
South African rand                                                                                      13.69    12.53
The Group's operating  profit from continuing  operations before  exceptional items and  intangibles amortisation  was 
denominated in the following currencies.
                                                                                                         2012     2011
                                                                                                           £m       £m
US dollar                                                                                               302.5    253.5
Australian dollar                                                                                        57.4     57.0
Euro                                                                                                     36.4     27.7
Canadian dollar                                                                                          34.9     29.5
Brazilian real                                                                                            7.8     11.7
Chilean peso                                                                                             31.3     24.4
South African rand                                                                                        8.8      8.4
United Kingdom pound                                                                                   (19.2)   (18.8)
Other                                                                                                    25.7     19.3
Operating profit from continuing operations before exceptional items & intangibles
amortisation                                                                                            485.6    412.7
16. Events after the balance sheet
On 31 December 2012, the Group completed the acquisition  of Mathena Inc for an initial cash consideration of  US$240m 
(£148m) with potential additional payments  of US$145m payable over two  years, contingent upon meeting profit  growth 
targets.
On 20 February 2013, the Group announced the acquisition of R Wales and Cheong foundry and the agreement to acquire  a 
heavy bay foundry in South Africa for a total combined consideration of £55m.
No further disclosures have been provided under IFRS3 in respect of business combinations after the balance sheet date
on the basis that the initial accounting is not yet complete.

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