The Weir Group PLC : Annual Financial Report

                 The Weir Group PLC : Annual Financial Report

                              The Weir Group PLC

              2012 Annual Report and 2013 Annual General Meeting

The following documents have today been posted or otherwise made available  to 

1.Annual Report and Financial Statements for the 52 weeks ended 28  December 
    2012 (the "2012 Annual Report");

2.Notice of 2013 Annual General Meeting; and

3.Form of Proxy for the 2013 Annual General Meeting

In accordance with Listing Rule  9.6.1 a copy of  each of these documents  has 
been uploaded to  the National  Storage Mechanism  and will  be available  for 
viewing shortly at

The documents are also  available on the  Company's website at 
and in hard copy to shareholders upon request to Investor Relations, The  Weir 
Group PLC, Clydesdale Bank Exchange, 20 Waterloo Street, Glasgow G2 6DB.

The Company's 2012  Annual General Meeting  will be held  at the Radisson  Blu 
Hotel, 301 Argyle Street, Glasgow, G2 8DL, on Wednesday 1 May 2012, at 2.30pm.

The Company's full year results announcement  of 27 February 2013 contained  a 
management report  as well  as  the audited  financial statements  which  were 
prepared in accordance  with the  applicable accounting  standards. The  2012 
Annual Report submitted to the National Storage Mechanism today also  contains 
information regarding the Company's principal risks and uncertainties, related
party transactions and a responsibility  statement relating to the content  of 
the 2012 Annual Report;  an extract of this  information is provided below  as 
required under paragraph  6.3.5 of the  DTR, however this  material should  be 
read in conjunction with  and is not  a substitute for  reading the full  2012 
Annual Report. Page numbers and  cross-references in the following  appendices 
refer to page numbers and cross-references in the 2012 Annual Report.


Appendix A: Principal risks & uncertainties
A description of the principal risks and uncertainties that the Company  faces 
is extracted from pages 44 and 45 of the 2012 Annual Report.

As in any  business, there  may be unforeseen  issues which  could impact  the 
Group's ability to achieve its objectives in the future. However, we  believe 
the Group's risk management  framework makes this less  likely. The key  risks 
set out below are those which we believe have the greatest potential to impact
our ability to achieve the Group's strategic objectives.

                      Why we think this is          How we are mitigating the
Risk                  important                     risk
Global and economic conditions
Changes in key        We need to remain               *We maintain regular
markets and/or        sufficiently flexible to          engagement with our
political conditions  allow us to meet growth in        customers to
have an adverse       demand when our customers'        understand their needs
impact on customers'  markets are buoyant and           and challenges.
expenditure plans.    therefore capital investment
                      is high, and equally foresee    *Our strategic planning
                      downturns and/or instability      utilises extensive
                      in territories, to allow us       market intelligence to
                      to adjust our operations          assist in forecasting
                      accordingly. Otherwise, we        opportunities and dips
                      are at risk of not maximising     in markets, as well as
                      our potential for growth in       potential political
                      buoyant markets, and              and social instability
                      incurring unnecessary costs       in regions.
                      during downturns.
                                                      *We maintain
                                                        contingency plans for
                                                        downturns and exits
                                                        from unstable
Technology and innovation
We fail to drive      The strength of our business    *Continual investment
innovation to ensure  is built upon a history of        in research and
that the business     delivering innovative and         development, including
continues to deliver  sustainable solutions for our     the Weir Advanced
sustainable and       customers. If we fail to keep     Research Centre in
attractive solutions  abreast of market needs or to     conjunction with the
for our customers.    innovate solutions we are at      University of
                      risk of losing market share       Strathclyde.
                      to our competitors and
                      reducing margins as demand      *Global design centres
                      decreases.                        of origin, dedicated
                                                        technology centres for
                                                        pump and materials
                                                        development and a
                                                        commitment to creating
                                                        patent protected

                                                      *We have dedicated
                                                        governance teams
                                                        (Engineering and
                                                        Excellence Committees)
                                                        focused on the
                                                        delivery of our
                                                        strategic objectives
                                                        for technological
                                                        advances and
                                                        innovation in
                                                        practices to meet the
                                                        needs of our
Environment, health and safety (EHS)
We fail to adequately We have a fundamental duty to   *The Weir behavioural
protect our people    protect our people and other      safety system is in
and other             stakeholders from harm whilst     place to reduce the
stakeholders from     conducting our business. As       risk of safety
harm associated with  well as the personal impact       incidents. In
a breach in EHS       on our people resulting from      addition, there are
standards.            a failure to meet this            initiatives to prevent
                      obligation, we would also be      the most common
                      at risk of:                       accident types. The
                                                        Weir global EHS
                        *reputational damage           standards are
                          leading to a loss of          continually reviewed.
                                                      *The EHS Excellence
                        *legal action from             Committee is
                          regulators including          responsible for
                          fines and penalties; and     monitoring performance
                                                        and compliance with
                        *exclusion from markets        Group objectives,
                          important for our future      policies and standards
                          growth.                      relating to EHS.

                                                      *There is a formal EHS
                                                        assurance programme
                                                        with issues escalated
                                                        as required through
                                                        the reporting
Ethics and governance
Interactions with our We are unwilling to accept      *The Code of Conduct,
people, customers,    dishonest or corrupt              supplemented with
suppliers and other   behaviour from our people, or     Group policies on
stakeholders are not  external parties acting on        related topics,
conducted with the    our behalf, whilst conducting     provides a clear
highest standards of  our business. If we fail to       benchmark for how we
integrity, which      act with integrity we are at      expect our business
devalues our          risk of:                          will be conducted.
                        *reputational damage         *Regular training is
                          leading to a loss of          provided using a range
                          customers;                   of mechanisms
                                                        including 'Town Hall'
                        *increased scrutiny from       style sessions,
                          regulators;                  on-line and induction
                        *legal action from
                          regulators including        *The financial control
                          fines, penalties and          framework is
                          imprisonment; and            continually monitored
                                                        for effectiveness.
                        *exclusion from markets
                          important for our future    *Internal Audit's remit
                          growth.                      includes regular
                                                        review of the
                                                        anti-bribery and
                                                        corruption and
                                                        financial controls
                                                        across the Group. The
                                                        Group Legal team is
                                                        responsible for
                                                        monitoring compliance
                                                        with the Code of
Supply chain
We fail to adequately Our supply chain is dependent   *Established engagement
manage the supply     upon a number of factors          framework in place
chain thereby         including sufficient              with key suppliers.
reducing our ability  manufacturing capacity,
to meet customer      access to raw materials and     *Regular KPI monitoring
demand in an economic key components, integrated        of the supply chain
and efficient manner. sales and production              throughout the
                      planning, and skilled people.     organisation.
                      If we fail to meet the
                      delivery targets agreed with    *The Purchasing
                      customers as a result of a        Excellence Committee
                      failure in the supply chain       monitors performance
                      we risk:                          and compliance with
                                                        Group objectives,
                        *damaging our reputation       policies and standards
                          and as a consequence          relating to
                          losing customers and          procurement. Centres
                          market share;                of Excellence are
                                                        established for key
                        *incurring penalties as a      components to drive
                          result of late delivery       efficiencies and
                          contractual clauses; and     enhance delivery
                                                        standards whilst
                        *reducing margins by           maintaining quality.
                          incurring unnecessary
                          additional costs            *Consistent Group-wide
                          associated with late          approach to inventory
                          remedial actions taken to     control and sales and
                          avoid missing delivery        operational planning.
Acquisitions and expansion into new territories
Inadequate planning   Acquisitions and expansions     *The strategic planning
and management of the into new territories are only     process includes
integration and       undertaken after rigorous         market and competitive
expansion processes   review and identification of      position assessments
impacts the ability   expected synergies, cost          to drive the
to generate growth    savings and growth                acquisition agenda.
opportunities,        opportunities. However, there
synergies and cost    is a risk that these benefits   *Comprehensive due
savings within        may not be achieved, or may       diligence is performed
expected timescales   not be achieved within the        on all potential
                      anticipated timescales,           acquisitions.
                      thereby tying up the Group's
                      funds in investments with       *We have a formal 100
                      insufficient return. There is     day integration plan
                      also a risk that we could be      with dedicated
                      left liable for past acts or      integration directors
                      omissions of the acquired         and managers appointed
                      businesses without adequate       to oversee and manage
                      right of redress.                 the full integration

Appendix B: Directors statement of responsibilities
The following statement is repeated here solely for the purpose of complying
with DTR 6.3.5. This statement relates to and is extracted from page 63 of
the 2012 Annual Report and is signed for and on behalf of the Board by Keith
Ruddock, Company Secretary. Responsibility is for the full 2012 Annual Report
and not the extracted information presented in this announcement or the full
year results announcement.

The Directors  are  responsible  for  preparing  the  Annual  Report  and  the 
financial statements in accordance with applicable law and regulations.

Company law requires the  Directors to prepare  financial statements for  each 
financial year.  Under  that  law,  the  Directors  have  prepared  the  Group 
financial statements  in  accordance with  International  Financial  Reporting 
Standards (IFRS) as adopted  by the European Union  and the Company  financial 
statements in accordance with UK Accounting Standards and applicable law.

In preparing those financial statements, the Directors are required to:

  *select suitable accounting policies and then apply them consistently;

  *make judgements and estimates that are reasonable and prudent;

  *state that  the Group  financial  statements have  complied with  IFRS  as 
    adopted by the European  Union, subject to  any material departures  being 
    disclosed and explained;

  *state for  the  Company financial  statements  whether the  applicable  UK 
    Accounting  Standards  have  been   followed,  subject  to  any   material 
    departures being disclosed and explained.

The Directors confirm that they have  complied with the above requirements  in 
preparing the financial statements.

Each of the Directors, as at the date of this Report, confirms to the best  of 
his or her knowledge that:

  *the financial  statements  give  a  true and  fair  view  of  the  assets, 
    liabilities, financial position and profit of the Group;

  *the Directors'  Report  includes a  fair  review of  the  development  and 
    performance of the business and the position of the Group, together with a
    description of the principal risks and uncertainties that it faces.

The Directors  are responsible  for keeping  proper accounting  records  which 
disclose with reasonable accuracy  at any time the  financial position of  the 
Group and enable  them to ensure  that the Group  financial statements  comply 
with the Companies Act 2006 and Article 4 of the IAS Regulation. They are also
responsible for safeguarding  the assets  of the  Group and  hence for  taking 
reasonable  steps  for  the  prevention  and  detection  of  fraud  and  other 

Appendix C: Related Party Transactions
The following statements regarding related party transactions are set out on
page 126 of the 2012 Annual Report. The following is extracted in full and
unedited form from the 2012 Annual Report.

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.

               Sales to  Sales to    Purchases                         Amounts
                related   related from related                         owed to
              parties - parties -    parties -  Purchases from related related
                  goods  services        goods      parties - services parties
party                £m        £m           £m                      £m      £m
ventures 2012       1.0       0.2          1.7                     2.6       -
         2011       0.5       0.2          0.8                     1.6       -
plans    2012         -         -            -                       -     1.4
         2011         -         -            -                       -     1.5

Contributions to the Group pension plans are disclosed in note 24.

Terms & conditions of transactions with related parties
Sales  to  and  from  related  parties  are  made  at  normal  market  prices. 
Outstanding balances at the period end are unsecured and settlement occurs  in 
cash. There have been no guarantees provided or received for any related party
balances. For the 52 weeks  ended 28 December 2012,  the Group has not  raised 
any provision for doubtful debts relating  to amounts owed by related  parties 
as the payment  history has been  excellent (2011: £nil).  This assessment  is 
undertaken each financial year through examining the financial position of the
related party and the market in which the related party operates.

Compensation of key management personnel 2012 2011
                                           £m   £m
Short-term employee benefits              6.5  6.6
Share-based payments                      2.7  2.0
Post-employment benefits                  0.1    -
                                          9.3  8.6

Key management comprises the Board and the Group Executive. Further details of
the Board remuneration can be found in the Remuneration report on pages 66  to 


This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: The Weir Group PLC via Thomson Reuters ONE
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