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The Weir Group PLC : Half Yearly Report



                   The Weir Group PLC : Half Yearly Report

The Weir Group PLC
30 July 2013

 FIRST HALF PERFORMANCE IN LINE WITH EXPECTATIONS IN CHALLENGING END MARKETS:
                         FULL YEAR OUTLOOK UNCHANGED
The Weir Group PLC, a global engineering solutions provider to the energy and
     natural resources industries, today reports its 2013 interim results

Results for 26 weeks ended Continuing
Operations                                   28 June 2013 29 June 2012  Growth
Order input^1                                     £1,258m      £1,328m     -5%
Revenue                                           £1,198m      £1,325m    -10%
Operating profit^2                                  £217m        £247m    -12%
Operating margin^2                                  18.1%        18.7%  -60bps
Profit before tax^2                                 £193m        £225m    -14%
Cash from operations                                £183m        £141m    +29%
Earnings per share^2                                66.4p        75.9p    -13%
Dividend per share                                   8.8p         8.0p    +10%
Return on Capital Employed^3                        25.2%        30.5% -530bps
Net debt                                            £950m      £689m^4  -£261m

  HIGHLIGHTS

  * 13% sequential order growth compared to second half of 2012; 

  * Growing aftermarket sales  in all  three divisions, increasing  to 63%  of 
    total revenues;  

  * Book to bill of 1.05 and above 1.0 in each division; 

  * Value chain excellence agenda underway:  over £15m of procurement  savings 
    achieved; 

  * Good first contribution from Mathena acquisition, integration  progressing 
    smoothly; 

  * Comminution  platform  established  in  Minerals,  extending   addressable 
    market. 

Keith Cochrane, Chief Executive, commented:
"Weir has delivered a  first half performance in  line with our  expectations, 
despite challenging market  conditions. The  Group has continued  to focus  on 
operational improvements and  investment in its  growth platform,  positioning 
Weir to take full advantage  of the range of  opportunities we see across  our 
end markets in the second half of the year.

We anticipate good sequential  revenue and profit growth  in the second  half, 
assuming  a  continued  recovery  in  upstream  Oil  &  Gas  and  no   further 
deterioration, or project delays, in our mining end markets.  As a result,  we 
remain on track to meet our full  year expectations and continue to expect  to 
deliver low single digit revenue growth and broadly stable margins on 2012."

Enquiries:
The Weir Group PLC:                               +44 (0) 7753622357
Andrew Neilson, Head of Corporate Affairs and     +44 (0) 7713789536
Strategy                                          +44 (0) 20 7404 5959
Jonathan Milne, Group Communications
Brunswick Patrick Handley/Nina Coad
A live webcast of the management presentation to the investment community will
begin at 8:30am (BST) on 30 July 2013.  Access details for the webcast, copies
of this release and the slide presentation are available at www.weir.co.uk.

Notes:
1.  2012 restated at 2013 average exchange rates.
2.  Adjusted to exclude exceptional items and intangibles amortisation.
 Reported operating profit and profit before tax were £195m (2012: £225m) and
£165m (2012: £201m) respectively. Reported earnings per share were 56.6p
(2012: 67.9p).  2012 restated to reflect adjustment for pension costs.
3.  Continuing operations EBIT before exceptional items (excluding Seaboard,
Novatech, Mathena and Wales) divided by average net assets (excluding
Seaboard, Novatech, Mathena and Wales) excluding net debt and pension deficit
(net of deferred tax asset).
4.  28 December 2012 net debt.

FIRST HALF OVERVIEW
Overall Group first half results were in line with expectations, with the  mix 
of revenues  and profits  in the  half demonstrating  the value  of  portfolio 
diversity.

The Minerals division first half orders  were slightly lower year on year  but 
materially higher than the second half of 2012. Original equipment orders were
up sequentially quarter on quarter with good brownfield and plant optimisation
project activity somewhat offsetting the  expected slowdown in new  greenfield 
projects. Orders and sales  of the broader  product portfolio grew,  alongside 
continuing  productivity  and  procurement   initiatives  which  supported   a 
divisional margin ahead of  prior expectations and  demonstrated good year  on 
year growth.

Despite a decline in North American rig count during the period, the Oil & Gas
division delivered a  performance in  line with  expectations. Lower  original 
equipment pressure pumping  sales were  partially offset by  a positive  first 
contribution from Mathena and a  second quarter of progressive improvement  in 
aftermarket activity.

Strategic momentum  in the  Power &  Industrial division  continued with  good 
underlying valves growth in emerging markets. Overall input was down against a
prior year  period  containing  substantial one-off  contracts.  The  division 
continued to invest  in capacity  and operational initiatives  to support  the 
expected higher second half activity levels.

Value chain excellence initiatives  supported profitability across the  Group, 
including over £15m of savings in the first half from procurement initiatives.

SEGMENTAL ANALYSIS

Continuing   Minerals   Oil &    Power & Group Unallocated   Total Total Total
Operations                Gas Industrial   Ops    Expenses            OE    AM
£m
Input (constant
currency)
2013              700     384        174     -           -   1,258   459   799
2012              731     382        199    16           -   1,328   593   734
Growth:
- Constant        -4%      1%       -13%   n/a           -     -5%  -23%    9%
currency
- Like for        -6%     -6%       -13%   n/a           -     -7%  -21%    4%
like^1
Revenue
2013              659     381        158     -           -   1,198   440   758
2012 (as          665     492        155    13           -   1,325   612   713
reported)
Growth:
- As              -1%    -23%         2%   n/a           -    -10%  -28%   +6%
reported
- Constant        -1%    -24%         1%   n/a           -    -11%  -29%   +5%
currency
- Like for        -3%    -29%         1%   n/a           -    -12%  -27%   +0%
like^1
Operating
profit
2013              130      83         12     -         (8)     217
2012 (as          120     123         12     1         (9)     247
reported)
Growth:
- As              +9%    -32%         1%   n/a         -5%    -12%
reported
- Constant        +7%    -34%        -1%   n/a         -5%    -14%
currency
- Like for        +5%    -46%        -1%   n/a         -5%    -20%
like^1
Operating
margin
2013            19.8%   21.8%       7.5%   n/a           -   18.1%
2012 (as        18.0%   25.0%       7.6%  9.8%           -   18.7%
reported)
Growth:
- As           180bps -320bps     -10bps   n/a           -  -60bps
reported
- Constant     160bps -320bps     -10bps   n/a           -  -70bps
currency
- Like for     150bps -590bps     -10bps   n/a           - -170bps
like^1
^1 Like for  like excludes the  impact of acquisitions,  disposals 
and related transaction and integration costs.  

FINANCIAL HIGHLIGHTS

Order input at  £1,258m decreased  5% in constant  currency terms  and was  7% 
lower on a like for like basis. Original equipment orders were down 23%  (down 
21% like for like) impacted by project delays in Minerals and excess frac pump
capacity in Oil & Gas.  Aftermarket orders were up 9% (4% like for like), with
a strong double digit increase  in Oil & Gas,  and represented 64% of  overall 
input (2012: 55%).  

Revenue declined by 11% to £1,198m on a constant currency basis, down 12% like
for like.  Original equipment  represented 37%  of revenues  with  aftermarket 
revenues accounting for 63% (2012: 46% and 54% respectively). Emerging markets
revenues were broadly  flat on  the prior year  with the  proportion of  total 
Group revenues from these markets increasing to 37% (2012: 33%).  

Operating profit  from  continuing  operations before  exceptional  items  and 
intangibles amortisation decreased by 12%  to £217m (2012 restated to  reflect 
pension costs: £247m) after a net positive currency translation impact of £5m.
This performance was driven by reduced profit in Oil & Gas which was partially
offset by a 9%  year on year  increase in Minerals and  a broadly flat  profit 
performance in Power & Industrial.  One-off costs of £6m were incurred in  the 
period (2012: £3m) of which £2m (2012: £3m) related to acquisition transaction
and integration costs. In 2013, the remaining £4m one-off costs related to the
closure of two small manufacturing facilities in Oil & Gas.  EBITDA was  £246m 
(2012 restated: £271m).  

Operating margin was  18.1%, a  reduction of 60bps  on the  prior year  (2012: 
18.7% and 18.8% on a constant currency basis) with lower margins in Oil &  Gas 
partially offset by stronger than expected margins in Minerals.  On a like for
like basis, the operating margin was  17.4% (2012: 19.1%), down 170bps,  again 
primarily due to lower margins and a smaller contribution from Oil & Gas.  

Net finance costs before exceptional items were £24m in total (2012  restated: 
£22m) with the increase due to higher net debt following the acquisitions made
during the period.  

Profit before tax from continuing operations but before exceptional items  and 
intangibles amortisation decreased  by 14%  to £193m  (2012 restated:  £225m). 
Reported profit  before tax  from continuing  operations decreased  by 18%  to 
£165m (2012 restated:  £201m) after  intangibles amortisation  of £22m  (2012: 
£18m), with exceptional items in the period of £6m (2012: £6m).

Tax charge for  the period  of £51m  (2012: £65m)  on profit  before tax  from 
continuing operations before exceptional items and intangibles amortisation of
£193m (2012:  £225m) represents  an  underlying effective  tax rate  of  26.6% 
(2012: 28.8%), primarily reflecting a lower proportion of US profits.

Earnings per share  from continuing  operations before  exceptional items  and 
intangibles amortisation decreased  by 13% to  66.4p (2012: 75.9p).   Reported 
earnings per share including  exceptional items, intangibles amortisation  and 
profit from discontinued operations was 56.6p (2012 restated: 69.4p).

Cash  generated  from  operations  decreased  by  8%  before  working  capital 
movements to £246m  (2012: £268m).   Working capital outflows  of £63m  (2012: 
£127m) reflected early gains from working capital reduction initiatives offset
by shifts in timing of  OE projects in Minerals  and resultant changes to  the 
profile of advance payment receipts.  Cash generated from operations increased
by 29% from £141m to £183m representing an EBITDA to cash conversion ratio  of 
74% (2012: 52%). Net  capital expenditure was  down 24% year  on year at  £40m 
(2012: £53m) with investment in further capacity in the Minerals division  and 
expenditure in Oil  & Gas  to enable the  closure of  two small  manufacturing 
facilities and the  consolidation of  operations into Fort  Worth.  Free  cash 
flow from continuing operations was an inflow of £8m (2012: outflow of  £40m). 
Outflows in respect  of acquisitions  were £214m giving  a net  debt of  £950m 
(December 2012: £689m).  On a reported  and pro-forma basis, the ratio of  net 
debt to EBITDA was 1.8 times.

Return on Capital employed of 25.2% on a  like for like basis was down on  the 
prior year  (2012: 30.5%)  due to  lower profits  and an  increase in  capital 
employed.  

Dividend The Board is recommending an interim dividend of 8.8p (2012: 8.0p)  a 
10% increase on the prior year, which is in line with previous guidance.   The 
dividend will be  paid on  1 November  to shareholders  on the  register on  4 
October 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 2013  H1 2012^1  Growth LFL Growth H2 2012^1
Input OE                  266        314    -15%       -15%       221
Input aftermarket         434        417     +4%        +2%       388
Input Total               700        731     -4%        -6%       609
Revenue OE                245        261     -6%        -6%       287
Revenue aftermarket       414        407     +1%        +0%       396
Revenue Total             659        668     -1%        -3%       683
EBITA^2                   130        121     +7%        +5%       140
Operating margin^2      19.8%      18.2% +160bps    +150bps     20.4%
^12012 restated at 2013 average exchange rates.
^2Adjusted to exclude exceptional items and intangibles amortisation.

Market drivers
Robust ore  production  activity  continued  during the  half  year  with  the 
commissioning of a small number of large greenfield projects supporting volume
growth.  Sharp second  quarter commodity  price falls, with  copper, gold  and 
iron ore prices  falling by  around 20%, had  a minimal  impact on  production 
activity.  However,  the  original  equipment  market  was  more  challenging. 
 Mining industry capital expenditure fell  as activity continues to move  from 
large new greenfield developments to smaller and shorter cycle brownfield  and 
plant optimisation projects. Projects  are progressing at  a slower rate  than 
prior years  with customers  taking a  more measured  approach to  investment, 
leading to  project commissioning  delays into  the second  half of  2013  and 
beyond.  

Project activity in Africa, outside of South Africa, was supportive of ongoing
greenfield  development.     In  contrast,  South  America  was  impacted   by 
materially lower new greenfield activity, although brownfield remained strong.
 In Australia project  activity remained  generally subdued  due to  difficult 
conditions in iron  ore and  coal markets.   North American  hard rock  mining 
markets were resilient, while stronger Eastern European markets offset subdued
conditions in Western Europe.

Outside of  mining, brownfield  activity supported  oil sands  markets in  the 
absence of new greenfield  projects.  Power and  water market conditions  were 
supportive with  a number  of projects  progressing to  the procurement  phase 
during the half year.

Strategic progress
The  Minerals  division  has  continued  to  add  capacity  to  meet   growing 
aftermarket demand for a number of greenfield projects which have still to  be 
commissioned, with  the purchase  of foundries  in South  Africa and  Malaysia 
supporting best  cost sourcing  while the  acquisition of  R Wales  in  Canada 
extends the footprint of  wear resistant rubber  applications and products.  A 
series of  agreements enhanced  the  platform for  growth in  the  comminution 
segment of minerals  processing, a  c.£3bn market for  crushing, grinding  and 
screening equipment  and  services.  The division's  technology  position  was 
further extended with successful  trials of new alloys  and the launch of  new 
screens technology. Targeted  capacity addition and  product localisation  has 
supported growth  in the  division's  broad range  of ancillary  products  and 
services, with investment in additional  sales resources.  Tight cost  control 
and procurement savings improved operational performance in the period.

Order input decreased by  4% to £700m  (2012: £731m), 6% lower  on a like  for 
like basis.  Input  increased  sequentially quarter  on  quarter  through  the 
period, with  second  quarter orders  broadly  flat year  on  year.   Original 
equipment orders  declined  15%,  with  second  quarter  orders  showing  good 
sequential growth, as brownfield and non-mining contract wins partially offset
further project delays.  Aftermarket  orders grew 4%,  including a good  first 
contribution from R  Wales, and  were up 2%  like for  like.  Good  underlying 
aftermarket growth, benefiting from the growing installed base, was offset  in 
the second quarter by  certain project commissioning  dates slipping into  the 
second  half  and  some  temporary  destocking  in  South  American   markets. 
Aftermarket input represented 62% of the  total, compared to 57% in the  prior 
year.

The division continued to gain traction across the broader original  equipment 
product portfolio,  further reducing  its  reliance on  the core  slurry  pump 
product range. Orders for dewatering pumps and screens were both up over  30%. 
Notable contracts  during  the  period  included a  material  contract  for  a 
Canadian oil sands  brownfield expansion,  a large pump  order in  Peru and  a 
landmark dewatering  contract for  a Queensland,  Australia coal  bed  methane 
project. Aftermarket input strengthened across a range of commodities with the
benefits of a large and growing installed base reflected in 3% order growth in
slurry pump spares. Emerging  markets accounted for 47%  of input (2012:  50%) 
with orders from Africa rising by 10%.  

Revenue fell by  1% to £659m  (2012: £668m) and  was 3% lower  like for  like. 
Original equipment  sales were  6% lower  and accounted  for 37%  of  revenues 
(2012: 39%). Production-driven aftermarket revenues increased by 1%, flat on a
like for like basis,  slightly lower than expectations  due to destocking  and 
delays in commissioning certain projects.

Operating profit increased by 7% to £130m (2012: £121m), 5% like for like,  as 
the division  benefited from  strengthening  aftermarket mix  and  operational 
improvements.  

Operating  margin  increased   160bps  to  19.8%   (2012:  18.2%),  ahead   of 
expectations, reflecting the strengthening  aftermarket revenue mix  alongside 
benefits from continuing business improvement and cost initiatives.

Capital expenditure  totalled £23m  (2012: £22m)  and included  investment  in 
service and machining capacity in China and Africa alongside foundry  capacity 
expansion in Europe.  Overall spending on research and development of £6m  was 
broadly flat year on year.

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 2013  H1 2012^1  Growth LFL Growth H2 2012^1
Input OE                  106        162    -35%       -35%       113
Input aftermarket         278        220    +27%       +15%       202
Input Total               384        382     +1%        -6%       315
Revenue OE                111        259    -57%       -57%       136
Revenue aftermarket       270        244    +10%        +0%       228
Revenue Total             381        503    -24%       -29%       364
EBITA^2                    83        126    -34%       -46%        91
Operating margin^2      21.8%      25.0% -320bps    -590bps     25.0%
^12012 restated at 2013 average exchange rates.
^2Adjusted to exclude exceptional items and intangibles amortisation.

Market drivers
Oil prices in  excess of  $90/barrel remained supportive  of ongoing  activity 
levels while a  recovery in the  US natural  gas price towards  $4mbtu had  no 
obvious impact on North American upstream markets.  In contrast to our earlier
expectations of low single  digit growth, average US  rig count was down  more 
than 10% year on year, and trended progressively lower during the period.  The
number of wells drilled  in the US  is estimated to have  fallen by around  5% 
year on year,  with continued drilling  efficiency gains partially  offsetting 
the fall in rig count.  Demand for both pressure pumping and pressure  control 
equipment is primarily related to the  number of wells drilled and  completed. 
Oil activity remained broadly flat while gas rigs were down over 40%, reaching
15-year lows.  Canadian markets were adversely impacted in the second  quarter 
by widespread  flooding,  prolonging the  spring  break well  beyond  seasonal 
norms.

Pressure pumping aftermarket activity continued to recover from the impact  of 
2012 overstocking with customer inventory  levels continuing to normalise  and 
frac fleet  utilisation increasing  towards  80% by  the  end of  the  period. 
Pressure Control markets were down year  on year, reflecting the reduction  in 
wells drilled.   International interest  in  shale technologies  continued  to 
grow,  with  increasing  activity  in  China,  Russia,  the  Middle  East  and 
Australia.

Increased Saudi Arabian production levels and the continuing refurbishment  of 
Iraqi oilfield infrastructure supported strong services activity in the Middle
East. Downstream continued to see  good market opportunities in the  midstream 
and FPSO (Floating Production, Storage  and Offloading) sectors, although  the 
core refining market remains subdued.

Strategic progress
The integration of Mathena is progressing according to plan, with the business
adding customers,  increasing  market  share,  launching  new  patent  pending 
products and  successfully growing  its position  in the  main North  American 
liquid shale plays. Seaboard has launched flowback and zipper manifold product
lines in the pressure control markets, with rapid market acceptance of the new
offering, and  expanded  its  international  wellhead  presence.  In  Pressure 
Pumping, the differentiated Duralast fluid end was successfully launched  with 
the technology also made  available in a stainless  steel version, giving  the 
broadest range of long life fluid ends on the market. Lean initiatives enabled
the consolidation of Pressure  Pumping manufacturing in  Fort Worth, with  the 
associated benefits enhancing efficiencies and supporting second half margins.

The Middle  East Services  business has  expanded across  the region,  winning 
strategic O & M contracts in Iraq and rotating equipment upgrades and  repairs 
in Saudi Arabia.   

Order input at £384m (2012:  £382m) was 1% higher and  6% lower like for  like 
due to continued overcapacity in pressure pumping markets. Original  equipment 
input fell 35%  against a  prior year period  including two  months of  strong 
demand for frac pumps and other pressure pumping equipment.  Aftermarket input
was up 27%  and 15% like  for like,  with good sequential  growth through  the 
period in pressure pumping, and a strong Services performance.

Pressure Pumping  (SPM, Novatech  and Mesa)  input fell  9% year  on year  but 
sequentially was up 25% compared to the second half of 2012.  Materially lower
original equipment orders were partially offset by good growth in  aftermarket 
orders, with  input strengthening  through the  period as  customer  inventory 
levels began to normalise.  A notable pick up was seen in orders for  Novatech 
and  SPM  expendables,  benefiting  from  the  comprehensive  branch  network, 
dedicated aftermarket sales team and ongoing success of the bundling strategy.
Improved lead  times  following  investment and  operational  improvement  has 
supported the continued growth  of the flow  control portfolio. Outside  North 
America, international  pressure pumping  input grew  by over  20%.   Pressure 
Control  (Seaboard  and  Mathena)  input  increased  due  to  a  strong  first 
contribution from Mathena.   Seaboard input  was lower  year on  year, due  to 
lower end market  activity levels  and the slight  delays in  rolling out  new 
product initiatives.

Middle East Services benefited  from regional expansion  of the core  business 
whilst supportive aftermarket trends  and traction in  the midstream and  FPSO 
market benefited the Downstream business.

Revenue was 24%  lower at £381m  (2012: £503m), down  29% on a  like for  like 
basis, reflecting the lower opening order book and upstream market conditions.
Sequentially like  for like  revenues were  flat with  Pressure Pumping  sales 
slightly ahead of expectations but 5% down on a second half of 2012 which  was 
supported by delivery of the  residual 2011 order backlog. Original  equipment 
revenues were down by 57%, primarily due to materially lower frac pump  sales. 
 Aftermarket revenues were up 10% and  flat like for like.  Services  recorded 
strong revenue growth in the period.  

Operating profit including joint ventures was 34% lower at £83m (2012:  £126m) 
and 46% lower on a like for like basis, reflecting lower revenues and margins.
Total one-off costs  of $7m (£5m)  were incurred in  the period (2012  one-off 
acquisition  costs:  £3m),  primarily  due   to  the  closure  of  two   small 
manufacturing facilities, with production transferred  to the main Fort  Worth 
campus.  Good  profit  progression  at  Service  operations  and  a   positive 
Downstream profit performance also contributed.

 

Operating margin declined 320bps to 21.8% (2012: 25.0%), down 590bps on a like
for like basis and reflecting lower activity levels, higher one-off costs  and 
pricing pressure on legacy fluid ends and OE frac pump orders. Margins  across 
all other Pressure Pumping product lines were in line with expectations.  

Capital  expenditure  of  £18m  (2012:  £23m),  including  £5m  investment  to 
establish a  frac flow  back and  zipper manifold  rental fleet  at  Seaboard. 
 Further investment was made  to extend and strengthen  the capability of  the 
service network.  Research and  development investment of  £3m was lower  than 
the prior  year period,  which included  test and  launch costs  for five  new 
products.

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.

£m                        H1 2013    H1 2012^1    Growth    H2 2012^1
Input OE                       87          101      -14%           97
Input aftermarket              87           98      -11%           72
Input Total                   174          199      -13%          169
Revenue OE                     84           88       -4%           87
Revenue aftermarket            74           69       +8%           86
Revenue Total                 158          157       +1%          173
EBITA^2                        12           12       -1%           20
Operating margin^2           7.5%         7.6%    -10bps        11.8%
^12012 restated at 2013 average exchange rates.
^2Adjusted to exclude exceptional items and intangibles amortisation.

Market drivers
US and UK nuclear maintenance and repair markets were positive with  increased 
CCGT (Combined  Cycle  Gas  Turbine)  new build  activity  in  North  America, 
benefiting from the lower input costs of natural gas. Low economic growth  and 
power prices have led to difficult trading conditions in North American  coal, 
hydro and  general industrial  markets.  Nuclear  new build  activity  remains 
slow. Oil and  gas markets have  been supportive of  control and safety  valve 
activity.

Strategic progress
Valves aftermarket initiatives gained traction in the period, with the growing
control valves installed  base providing attractive  opportunities.  Entry  to 
the FPSO control valve market was secured with a number of contract wins.  The
global valves  platform  is  now  well  established,  with  senior  leadership 
appointed  at  each  plant  to   drive  strategic  delivery  and   operational 
performance to  support  higher  activity levels.  Product  transfer  to  Weir 
International South Korea continues, broadening the emerging market  offering. 
Additional repair facilities have been established in Southeast Asia,  further 
internationalising the power service offering.

Order input was 13% lower at £174m  (2012: £199m) against a prior year  period 
containing major one-off contracts for nuclear valves and hydro refurbishment.
 Original equipment orders were 14% lower as a number of projects were delayed
until the second half of the year.  Excluding the large H1 2012 nuclear  valve 
contract, underlying valves  input was broadly  in line with  the prior  year. 
Aftermarket input  of  £87m  (2012:  £98m) was  11%  lower,  impacted  by  the 
reduction in hydro refurbishment orders.  The proportion of orders from  power 
markets was 55% (2012: 59%). Emerging market input increased to 35% of input.

Revenue was only  1% higher  at £158m (2012:  £157m) due  to project  delivery 
delays. Revenues from emerging  markets increased by  24%, with strong  growth 
from Weir International South Korea a  highlight of a good performance  across 
the valves portfolio, as  the division benefits from  its increased routes  to 
market.

Operating profit was 1% lower at  £12m (2012: £12m) as revenues were  affected 
by project  delays and  first  half investment  in operational  capability  to 
support second half revenue growth, offset by insurance proceeds on settlement
of a prior claim.

Operating margin of 7.5% (2012: 7.6%) was broadly in line with the prior  year 
period.

Capital  expenditure  of   £6m  (2012:  £11m)   included  investment  in   new 
manufacturing  technology  in  Hydro  operations.  Research  and   development 
expenditure totalled £2m (2012: £1m).

POST BALANCE SHEET EVENTS

In July  2013  the  Group completed  the  negotiation  of a  USD  800m  5-year 
Revolving Credit  Facility with  a syndicate  of 12  banks. This  replaces  an 
existing facility of USD 800m maturing in September 2014.

RISKS & UNCERTAINTIES

The principal risks and uncertainties affecting the business activities of the
Group remain those detailed on  pages 44 and 45 of  the Annual Report 2012,  a 
copy of which is available on  the Group website at www.weir.co.uk. The  Board 
considers  that  these  remain   a  current  reflection   of  the  risks   and 
uncertainties facing the business for the remaining 26 weeks of the  financial 
year.

OUTLOOK  

MINERALS
Supported by  the opening  order  book we  expect  sequential growth  in  both 
aftermarket and original  equipment revenue  in the second  half, assuming  no 
further project  and commissioning  slippages.  Divisional  revenue growth  is 
expected to  be  slightly lower  than  our previous  expectations,  reflecting 
revised project delivery  and commissioning schedules.   Following the  strong 
first half performance, second  half margins are expected  to be in line  with 
the first half and ahead of our prior expectations, such that full year profit
expectations remain unchanged.

OIL & GAS
Full year  divisional revenues  are  anticipated to  be slightly  better  than 
previous expectations, supported  by higher pressure  pumping sales,  although 
still down on 2012.  Operating margins are expected to be slightly lower  year 
on year,  below  prior  expectations,  with  second  half  margin  improvement 
supported by the benefits  of first half  restructuring actions and  increased 
sales of new higher margin products, offset by the impact of additional  sales 
of  lower  margin  product  lines.   Divisional  profit  expectations   remain 
unchanged.

POWER & INDUSTRIAL
Full year divisional revenue, profit and operating margin expectations  remain 
unchanged, with  strong  sequential  second half  revenue  and  margin  growth 
supported by  the strong  opening order  book, and  first half  investment  in 
operational capabilities.

SUMMARY
We expect  the Group  to continue  to  benefit from  its global  presence  and 
diverse exposure, despite  challenging market conditions.   The Group is  well 
positioned to take full advantage of the range of opportunities across its end
markets in the second half of the year.

We anticipate good sequential  revenue and profit growth  in the second  half, 
assuming  a  continued  recovery  in  upstream  Oil  &  Gas  and  no   further 
deterioration, or project delays, in our  mining end markets.  As a result  we 
remain on track to meet our full  year expectations and continue to expect  to 
deliver low single digit revenue growth and broadly stable margins on 2012.

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.

Consolidated Income Statement
for the 26 weeks ended 28 June 2013
                                                                    26 weeks ended 29 June 2012
                                  26 weeks ended 28 June 2013            Restated (note 1)
52 weeks
   ended
  28 Dec                             Before  Exceptional               Before  Exceptional
    2012                        exceptional      items &          exceptional      items &
   Total                            items &  intangibles              items &  intangibles
Restated                        intangibles amortisation          intangibles amortisation
(note 1)                       amortisation     (note 3)   Total amortisation     (note 3)   Total
      £m                 Notes           £m           £m      £m           £m           £m      £m
         Continuing
         operations
 2,538.3 Revenue             2      1,198.1            - 1,198.1      1,324.7            - 1,324.7
         Continuing
         operations
         Operating
         profit before
         share of
         results of
   462.2 joint ventures               213.4       (22.0)   191.4        244.3       (22.5)   221.8
         Share of
         results of
     6.4 joint ventures                 3.7            -     3.7          2.9            -     2.9
         Operating
   468.6 profit              2        217.1       (22.0)   195.1        247.2       (22.5)   224.7
  (49.1) Finance costs               (25.9)        (5.8)  (31.7)       (21.5)        (0.7)  (22.2)
     5.2 Finance income                 3.7            -     3.7          0.9            -     0.9
         Other finance
         costs -
         retirement
   (4.0) benefits                     (1.8)            -   (1.8)        (2.0)            -   (2.0)
         Profit before
         tax from
         continuing
   420.7 operations                   193.1       (27.8)   165.3        224.6       (23.2)   201.4
 (110.7) Tax expense         4       (51.4)          7.0  (44.4)       (64.6)          6.2  (58.4)
         Profit for the
         period from
         continuing
   310.0 operations                   141.7       (20.8)   120.9        160.0       (17.0)   143.0
         Profit for the
         period from
         discontinued
     3.3 operations                       -            -       -            -          3.3     3.3
         Profit for the
   313.3 period                       141.7       (20.8)   120.9        160.0       (13.7)   146.3
         Attributable to
         Equity holders
   313.0 of the Company               141.2       (20.8)   120.4        160.9       (13.7)   147.2
         Non-controlling
     0.3 interests                      0.5            -     0.5        (0.9)            -   (0.9)
   313.3                              141.7       (20.8)   120.9        160.0       (13.7)   146.3
         Earnings per
         share               5
         Basic - total
  147.5p operations                                        56.6p                             69.4p
         Basic  -
         continuing
  145.9p operations                   66.4p                56.6p        75.9p                67.9p
         Diluted  -
         total
  146.6p operations                                        56.3p                             69.2p
         Diluted  -
         continuing
  145.1p operations                   66.0p                56.3p        75.7p                67.7p

Consolidated Statement of Comprehensive Income
for the 26 weeks ended 28 June 2013
                                                                      26 weeks
 52 weeks ended                                                          ended
    28 Dec 2012                                                   29 June 2012
 Restated (note                                   26 weeks ended      Restated
             1)                                     28 June 2013      (note 1)
             £m                              Note             £m            £m
          313.3 Profit for the period                      120.9         146.3
                Other comprehensive income
                (expense)
                Other comprehensive income
                (expense) to be reclassified
                to profit or loss in
                subsequent periods:
                (Losses) gains taken to
            1.4 equity on cash flow hedges                 (0.8)         (0.1)
                Reclassification adjustments
            0.8 on cash flow hedges                        (0.5)         (0.3)
                Exchange gains (losses) on
                translation of foreign
         (84.9) operations                                  97.6        (18.6)
                Exchange (losses) gains on
           38.6 net investment hedges                     (68.6)         (2.5)
                Tax effect to be
                reclassified to profit or
          (0.4) loss in subsequent periods                   0.5           0.1
                Net other comprehensive
                income (expense) to be
                reclassified to profit or
         (44.5) loss in subsequent periods                  28.2        (21.4)
                Income (expense) not to be
                reclassified to profit or
                loss in subsequent periods:
                Remeasurements on defined
         (10.8) benefit plans                  10           21.3        (18.0)
                Tax relating to other
                comprehensive income
                (expense) not to be
                reclassified in subsequent
            2.5 periods                                    (4.3)           4.0
                Losses taken to equity on
              - cash flow hedges                           (0.9)             -
                Reclassification adjustments
              - on cash flow hedges                          0.2             -
                Net other comprehensive
                income (expense) not to be
                reclassified to profit or
          (8.3) loss in subsequent periods                  16.3        (14.0)
                Total net comprehensive
          260.5 income for the period                      165.4         110.9
                Attributable to
                Equity holders of the
          260.5 Company                                    164.5         112.4
              - Non-controlling interests                    0.9         (1.5)
          260.5                                            165.4         110.9
Consolidated Balance Sheet
at 28 June 2013
                                                                  29 June 2012
                                                                      Restated
 28 Dec 2012                                        28 June 2013      (note 1)
          £m                                  Notes           £m            £m
             ASSETS
             Non-current assets
       374.0 Property, plant & equipment                   416.1         348.0
     1,454.1 Intangible assets                           1,745.7       1,514.4
        12.0 Investments in joint ventures                  28.6          13.5
        30.4 Deferred tax assets                            30.7          37.0
             Derivative financial
         0.8 instruments                         11          0.6           0.4
     1,871.3 Total non-current assets                    2,221.7       1,913.3
             Current assets
       512.7 Inventories                                   532.1         514.6
       478.2 Trade & other receivables                     520.3         508.6
        21.7 Construction contracts                         31.0          25.5
             Derivative financial
         3.6 instruments                         11         12.4          17.3
         4.1 Income tax receivable                           2.2           7.0
       391.1 Cash & short-term deposits                     78.5         120.8
     1,411.4 Total current assets                        1,176.5       1,193.8
     3,282.7 Total assets                                3,398.2       3,107.1
             LIABILITIES
             Current liabilities
             Interest-bearing loans &
        65.4 borrowings                                    115.0          67.2
       485.8 Trade & other payables                        522.3         503.7
        13.7 Construction contracts                         11.5          18.9
             Derivative financial
        14.7 instruments                         11         17.4          43.9
        28.6 Income tax payable                             31.3          22.9
        36.4 Provisions                                     36.3          47.2
       644.6 Total current liabilities                     733.8         703.8
             Non-current liabilities
             Interest-bearing loans &
     1,014.6 borrowings                                    913.5         897.6
        26.3 Other payables                                 46.6          18.3
             Derivative financial
         0.8 instruments                         11          5.1           5.1
        33.2 Provisions                                     30.5          34.1
       162.5 Deferred tax liabilities                      182.0         169.5
             Retirement benefit plan
        90.4 deficits                            10         68.7         104.3
     1,327.8 Total non-current liabilities               1,246.4       1,228.9
     1,972.4 Total liabilities                           1,980.2       1,932.7
     1,310.3 NET ASSETS                                  1,418.0       1,174.4
             CAPITAL & RESERVES
        26.7 Share capital                                  26.7          26.7
        38.0 Share premium                                  38.0          38.0
       (5.6) Treasury shares                               (5.8)         (3.6)
         0.5 Capital redemption reserve                      0.5           0.5
             Foreign currency translation
        37.5 reserve                                        66.1          63.0
         0.2 Hedge accounting reserve                      (1.3)         (1.9)
     1,209.8 Retained earnings                           1,289.2       1,051.1
     1,307.1 Shareholders equity                         1,413.4       1,173.8
         3.2 Non-controlling interests                       4.6           0.6
     1,310.3 TOTAL EQUITY                                1,418.0       1,174.4

Consolidated Cash Flow Statement
for the 26 weeks ended 28 June 2013
    52 weeks                                            26 weeks      26 weeks
       ended                                               ended         ended
 28 Dec 2012                                        28 June 2013  29 June 2012
          £m                                  Notes           £m            £m
             Continuing operations
             Cash flows from operating
             activities                          12
       398.6 Cash generated from operations                183.0         141.5
             Additional pension contributions
       (7.5) paid                                          (2.5)             -
     (104.9) Income tax paid                              (37.8)        (65.8)
             Net cash generated from
       286.2 operating activities                          142.7          75.7
             Continuing operations
             Cash flows from investing
             activities
     (123.3) Acquisitions of subsidiaries        12      (199.0)       (118.6)
        22.9 Disposals of subsidiaries           12        (0.2)         (0.4)
             Purchases of property, plant &
     (123.6) equipment & intangible assets                (43.8)        (55.6)
             Other proceeds from sale of
             property, plant & equipment &
         7.3 intangible assets                               3.4           2.3
         5.1 Interest received                               0.8           1.9
           - Investment in joint ventures                 (14.0)             -
             Dividends received from joint
         5.4 ventures                                        2.1           0.9
             Net cash used in investing
     (206.2) activities                                  (250.7)       (169.5)
             Continuing operations
             Cash flows from financing
             activities
             Purchase of shares for equity
       (3.0) settled share-based incentives                (2.2)             -
       786.9 Proceeds from borrowings                       72.3         635.7
     (462.5) Repayments of borrowings                    (183.6)       (463.7)
             Settlement of external debt of
       (1.9) subsidiary on acquisition                     (1.3)         (1.9)
             Settlement of derivative
      (11.0) financial instruments                        (10.2)             -
      (33.4) Interest paid                                (21.5)        (10.2)
             Proceeds from increase in
         1.0 non-controlling interests                       0.5             -
             Dividends paid to equity holders
      (71.7) of the Company                       6       (63.8)        (54.8)
             Net cash generated (used in)
       204.4 financing activities                        (209.8)         105.1
             Net (decrease) increase in cash
             & cash equivalents from
       284.4 continuing operations                       (317.8)          11.3
             Cash & cash equivalents at the
       108.6 beginning of the period                       384.2         108.6
             Foreign currency translation
       (8.8) differences                                     1.1         (4.0)
             Cash & cash equivalents at the
       384.2 end of the period                   12         67.5         115.9

Consolidated Statement of Changes in Equity
for the 26 weeks ended 28 June 2013
                                                         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 30 December
2011                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 (restated
note 1)                -       -        -          -           -          -    147.2        147.2           (0.9)   146.3
Losses taken to
equity on cash
flow hedges            -       -        -          -           -      (0.1)        -        (0.1)               -   (0.1)
Exchange losses
on translation
of foreign
operations             -       -        -          -      (18.0)          -        -       (18.0)           (0.6)  (18.6)
Exchange losses
on net
investment
hedges                 -       -        -          -       (2.5)          -        -        (2.5)               -   (2.5)
Remeasurements
on defined
benefit plans
(restated note
1)                     -       -        -          -           -          -   (18.0)       (18.0)               -  (18.0)
Reclassification
adjustments
taken to the
income statement
on cash flow
hedges                 -       -        -          -           -      (0.3)        -        (0.3)               -   (0.3)
Tax relating to
other
comprehensive
income                 -       -        -          -           -        0.1      4.0          4.1               -     4.1
Total net
comprehensive
income for the
period                 -       -        -          -      (20.5)      (0.3)    133.2        112.4           (1.5)   110.9
Cost of
share-based
payments
inclusive of tax
credits                -       -        -          -           -          -      0.8          0.8               -     0.8
Dividends              -       -        -          -           -          -   (54.8)       (54.8)               -  (54.8)
Exercise of LTIP
awards               0.1       -      2.0          -           -          -    (2.1)            -               -       -
At 29 June 2012     26.7    38.0    (3.6)        0.5        63.0      (1.9)  1,051.1      1,173.8             0.6 1,174.4
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
Profit for the
period                 -       -        -          -           -          -    120.4        120.4             0.5   120.9
Losses taken to
equity on cash
flow hedges            -       -        -          -           -      (1.7)        -        (1.7)               -   (1.7)
Exchange gains
on translation
of foreign
operations             -       -        -          -        97.2          -        -         97.2             0.4    97.6
Exchange losses
on net
investment
hedges                 -       -        -          -      (68.6)          -        -       (68.6)               -  (68.6)
Remeasurements
on defined
benefit plans          -       -        -          -           -          -     21.3         21.3               -    21.3
Reclassification
adjustments
taken to the
income statement
on cash flow
hedges                 -       -        -          -           -      (0.3)        -        (0.3)               -   (0.3)
Tax relating to
other
comprehensive
income                 -       -        -          -           -        0.5    (4.3)        (3.8)               -   (3.8)
Total net
comprehensive
income for the
period                 -       -        -          -        28.6      (1.5)    137.4        164.5             0.9   165.4
Proceeds from
increase in
non-controlling
interests              -       -        -          -           -          -        -            -             0.5     0.5
Cost of
share-based
payments
inclusive of tax
charge                 -       -        -          -           -          -      7.0          7.0               -     7.0
Dividends              -       -        -          -           -          -   (63.8)       (63.8)               -  (63.8)
Purchase of
shares*                -       -    (1.4)          -           -          -        -        (1.4)               -   (1.4)
Exercise of LTIP
awards                 -       -      1.2          -           -          -    (1.2)            -               -       -
At 28 June 2013     26.7    38.0    (5.8)        0.5        66.1      (1.3)  1,289.2      1,413.4             4.6 1,418.0
At 30 December
2011                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 (restated
note 1)                -       -        -          -           -          -    313.0        313.0             0.3   313.3
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
Remeasurements
on defined
benefit plans
(restated note
1)                     -       -        -          -           -          -   (10.8)       (10.8)               -  (10.8)
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)      2.5          2.1               -     2.1
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
credits                -       -        -          -           -          -      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 Financial Statements
1. Basis of preparation
These interim condensed  financial statements are  for the 26  week period ended  28 
June 2013 and have been prepared on the basis of the accounting policies set out  in 
the Group's  2012  Annual Report,  except  for the  adoption  of new  standards  and 
interpretations effective from 1 January 2013 as noted below and in accordance  with 
IAS34 "Interim Financial Reporting (revised)" as  adopted by the European Union  and 
the Disclosure and  Transparency Rules  of the Financial  Services Authority.  These 
interim condensed financial statements have been prepared on the going concern basis
as  the  directors,  having  considered  available  relevant  information,  have   a 
reasonable expectation that the Group has adequate resources to continue to  operate 
for the foreseeable future.
The Consolidated  Income  Statement,  the Consolidated  Statement  of  Comprehensive 
Income, the Consolidated Statement of Changes in Equity and affected notes have been
restated for the  26 weeks ended  29 June 2012  and the 52  weeks ended 28  December 
2012, to reflect  changes in  the calculation of  pension costs  in accordance  with 
IAS19 "Employee Benefits (Revised)".  The net charge to the Income Statement for the
52 weeks ended 28 December 2012 increased by  £3.3m, on a pre tax basis, with a  tax 
impact of  £0.9m.   Operating  profit  reduced  £0.5m  due  to  the  recognition  of 
administrative costs,  while  other  finance costs  increased  £2.8m  following  the 
introduction of the concept of recognising  net interest on the net defined  benefit 
obligation in  place of  the interest  on  the defined  benefit obligation  and  the 
expected return  on  plan  assets  recognised  under  the  original  standard.   The 
corresponding impact for the 26 weeks ended 29 June 2012 was an increased charge  of 
£1.4m pre tax, with a tax impact  of £0.4m.  The restatements were reflected in  the 
Consolidated Statement  of Comprehensive  Income  and there  was  no impact  on  the 
disclosed defined benefit obligation at either period end.
The  amendments  to  IAS  1  introduce  a  grouping  of  items  presented  in  other 
comprehensive income (OCI). Items that could be reclassified (or recycled) to profit
or loss at a  future point in time  now have to be  presented separately from  items 
that will never be reclassified. The amendment affected presentation only and had no
impact on the Group's financial position or performance.
IFRS 13  establishes a  single source  of guidance  under IFRS  for all  fair  value 
measurements. IFRS 13 does not change when an entity is required to use fair  value, 
but rather provides guidance on how to measure fair value under IFRS when fair value
is required or permitted. The application of IFRS 13 has not materially impacted the
fair value measurements carried  out by the Group.   IFRS 13 also requires  specific 
disclosures on fair values, some  of which replace existing disclosure  requirements 
in other standards,  including IFRS  7 Financial Instruments:  Disclosures. Some  of 
these disclosures are specifically required for financial instruments by IAS 34  and 
thereby affect the interim condensed consolidated financial statements period.   The 
relevant disclosures are reflected in note 11.
During the 52 weeks ended 28  December 2012, the provisional fair values  attributed 
to  the  2011  acquisitions  of  Weir  International  and  Seaboard,  and  the  2012 
acquisition of Novatech, were finalised. In accordance with IFRS3, the net impact of
the adjustments to the provisional  fair values has been  recognised by means of  an 
increase 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  29 June  2012. 
 There was no impact on the Consolidated Income Statement or Consolidated  Statement 
of Comprehensive Income as a result  of the finalisation of the provisional  values. 
 Further details of the restatements can be found in note 8.
These interim condensed financial  statements are unaudited  but have been  formally 
reviewed by the auditors and their report to the Company is set out on page 26.  The 
information shown  for the  52 weeks  ended  28 December  2012 does  not  constitute 
statutory accounts as defined in Section 435 of the Companies Act 2006 and has  been 
extracted, with the exception of the restatement noted above, from the Group's  2012 
Annual Report which has been  filed with the Registrar  of Companies. The report  of 
the auditors on the  financial statements contained within  the Group's 2012  Annual 
Report was unqualified and did not  contain a statement under either Section  498(2) 
or Section 498(3) of the Companies Act 2006.
These interim condensed financial statements were approved by the Board of Directors
on 30 July 2013.
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 under 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 markets. 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. In 2012, the other segments,  which 
were disclosed as  Group companies, included  the results of  LGE Process which  was 
sold on 28 December 2012.
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 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 26 weeks ended 28  June 
2013, the 26 weeks  ended 29 June 2012  and the 52 weeks  ended 28 December 2012  is 
disclosed below.
                                                  Power &        Total continuing
                 Minerals        Oil & Gas       Industrial         operations
                 June    June    June    June     June    June
                 2013    2012    2013    2012     2013    2012  June 2013  June 2012
                   £m      £m      £m      £m       £m      £m         £m         £m
Revenue
Sales to
external
customers       658.5   664.9   381.6   492.3    158.0   154.5    1,198.1    1,311.7
Inter-segment
sales             4.9     2.3     7.0     7.8      2.7     2.1       14.6       12.2
Segment
revenue         663.4   667.2   388.6   500.1    160.7   156.6    1,212.7    1,323.9
Group
companies
sales to
external
customers                                                               -       13.0
Elimination
of
inter-segment
sales                                                              (14.6)     (12.2)
                                                                  1,198.1    1,324.7
Sales to
external
customers -
2012 at 2013
average
exchange
rates
Sales to
external
customers       658.5   668.5   381.6   503.4    158.0   156.5    1,198.1    1,328.4
Group
companies
sales to
external
customers                                                               -       13.0
                                                                  1,198.1    1,341.4
Result
(restated
note 1)
Segment
result before
share of
results of
joint
ventures        130.1   119.9    79.4   120.1     11.8    11.7      221.3      251.7
Share of
results of
joint
ventures            -       -     3.7     2.9        -       -        3.7        2.9
Segment
result          130.1   119.9    83.1   123.0     11.8    11.7      225.0      254.6
Group
companies                                                               -        1.3
Unallocated
expenses                                                            (7.9)      (8.7)
Operating
profit before
exceptional
items &
intangibles
amortisation                                                        217.1      247.2
Exceptional
items &
intangibles
amortisation                                                       (27.8)     (23.2)
Net finance
costs before
exceptional
items                                                              (22.2)     (20.6)
Other finance
costs -
retirement
benefits                                                            (1.8)      (2.0)
Profit before
tax from
continuing
operations                                                          165.3      201.4
Segment
result - 2012
at 2013
average
exchange
rates
Segment
result before
share of
results of
joint
ventures        130.1   121.6    79.4   122.9     11.8    11.9      221.3      256.4
Share of
results of
joint
ventures            -       -     3.7     2.9        -       -        3.7        2.9
Segment
result          130.1   121.6    83.1   125.8     11.8    11.9      225.0      259.3
Group
companies                                                               -        1.3
Unallocated
expenses                                                            (7.9)      (8.4)
Operating
profit before
exceptional
items &
intangibles
amortisation                                                        217.1      252.2
Total assets
(restated
note 1)
Intangible
assets          430.2   378.6 1,202.3 1,023.9    110.6   110.9    1,743.1    1,513.4
Property,
plant &
equipment       204.2   190.8   155.2   105.8     55.1    50.8      414.5      347.4
Working
capital
assets          507.4   498.4   397.4   398.0    180.0   152.0    1,084.8    1,048.4
              1,141.8 1,067.8 1,754.9 1,527.7    345.7   313.7    3,242.4    2,909.2
Investments
in joint
ventures            -       -    28.6    13.5        -       -       28.6       13.5
Segment
assets        1,141.8 1,067.8 1,783.5 1,541.2    345.7   313.7    3,271.0    2,922.7
Group
companies
assets                                                                  -        2.2
Unallocated
assets                                                              127.2      182.2
Total assets                                                      3,398.2    3,107.1
Working
capital
liabilities     259.9   255.3   105.9   136.0     64.6    79.1      430.4      470.4
Group
companies
liabilities                                                           3.3       14.2
Unallocated
liabilities                                                       1,546.5    1,448.1
Total
liabilities                                                       1,980.2    1,932.7
2. Segment information (continued)
                                                                               Total
                                                         Oil &    Power & continuing
52 weeks ended 28 December 2012               Minerals     Gas Industrial operations
                                                    £m      £m         £m         £m
Revenue
Sales to external customers                    1,333.6   843.6      323.4    2,500.6
Inter-segment sales                                4.3    15.3        4.0       23.6
Segment revenue                                1,337.9   858.9      327.4    2,524.2
Group companies sales to external customers                                     37.7
Elimination of inter-segment sales                                            (23.6)
                                                                             2,538.3
Sales to external customers - 2012 at 2013
average exchange rates
Sales to external customers                    1,351.5   867.0      329.7    2,548.2
Group companies sales to external customers                                     37.7
                                                                             2,585.9
Result (restated note 1)
Segment result before share of results of
joint ventures                                   255.9   204.2       31.5      491.6
Share of results of joint ventures                   -     6.4          -        6.4
Segment result                                   255.9   210.6       31.5      498.0
Group companies                                                                  2.5
Unallocated expenses                                                          (15.4)
Operating profit before exceptional items &
intangibles amortisation                                                       485.1
Exceptional items & intangibles amortisation                                  (19.1)
Net finance costs before exceptional items                                    (41.3)
Other finance costs - retirement benefits                                      (4.0)
Profit before tax from continuing operations                                   420.7
Segment result - 2012 at 2013 average
exchange rates
Segment result before share of results of
joint ventures                                   261.3   210.2       32.4      503.9
Share of results of joint ventures                   -     6.6          -        6.6
Segment result                                   261.3   216.8       32.4      510.5
Group companies                                                                  2.5
Unallocated expenses                                                          (15.4)
Operating profit before exceptional items &
intangibles amortisation                                                       497.6
Total assets
Intangible assets                                368.4   974.4      109.8    1,452.6
Property, plant & equipment                      199.1   121.6       52.2      372.9
Working capital assets                           485.9   365.8      167.0    1,018.7
                                               1,053.4 1,461.8      329.0    2,844.2
Investments in joint ventures                        -    12.0          -       12.0
Segment assets                                 1,053.4 1,473.8      329.0    2,856.2
Unallocated assets                                                             426.5
Total assets                                                                 3,282.7
Working capital liabilities                      263.7   128.0       88.0      479.7
Group companies liabilities                                                      3.4
Unallocated liabilities                                                      1,489.3
Total liabilities                                                            1,972.4

3. Exceptional items & intangibles amortisation
     52 weeks ended                             26 weeks ended  26 weeks ended
        28 Dec 2012                               28 June 2013    29 June 2012
                 £m                                         £m              £m
                    Recognised in arriving at
                    operating profit from
                    continuing operations
             (36.7) Intangibles amortisation            (22.0)          (18.0)
                    Exceptional item -
                    charging of fair value
              (4.5) inventory uplift                         -           (4.5)
                    Exceptional item - gain on
               30.5 sale of LGE Process                      -               -
                    Exceptional item - uplift
                    in respect of contingent
              (5.8) consideration liability                  -               -
             (16.5)                                     (22.0)          (22.5)
                    Recognised in finance
                    costs
                    Exceptional item - unwind
                    of discount in respect of
                    contingent consideration
              (2.6) liability                            (5.8)           (0.7)
                    Recognised in arriving at
                    profit for the period from
                    discontinued operations
                    Exceptional items (net of
                3.3 tax of £nil)                             -             3.3
4. Tax expense
     52 weeks ended                                             26 weeks ended
        28 Dec 2012                             26 weeks ended    29 June 2012
                                                                Restated (note
  Restated (note 1)                               28 June 2013              1)
                 £m                                         £m              £m
              (4.9) Group - UK                           (3.4)           (1.4)
            (105.8) Group - overseas                    (41.0)          (57.0)
                    Total income tax expense
                    in the Consolidated Income
            (110.7) Statement                           (44.4)          (58.4)
                    The total income tax
                    expense is disclosed in
                    the Consolidated Income
                    Statement as follows:
                          - continuing
                    operations before
                    exceptional items &
            (123.3) intangibles amortisation            (51.4)          (64.6)
                1.5       - exceptional items                -             1.4
                          - intangibles
               11.1 amortisation                           7.0             4.8
                    Total income tax expense
                    in the Consolidated Income
            (110.7) Statement                           (44.4)          (58.4)
                    Total income tax expense
                    included in the Group's
                    share of results of joint
              (1.2) ventures                             (0.7)           (0.6)
5. 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 amounts are 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.
                                                                26 weeks ended
     52 weeks ended                                               29 June 2012
        28 Dec 2012                             26 weeks ended  Restated (note
  Restated (note 1)                               28 June 2013              1)
                    Profit attributable to
                    equity holders of the
                    Company
              313.0   Total operations * (£m)            120.4           147.2
                      Continuing operations *
              309.7 (£m)                                 120.4           143.9
                      Continuing operations
                    before exceptional items &
                    intangibles amortisation *
              316.2 (£m)                                 141.2           160.9
                    Weighted average share
                    capital
                    Basic earnings per share
                    (number of shares,
              212.2 million)                             212.8           212.0
                    Diluted earnings per share
                    (number of shares,
              213.5 million)                             213.8           212.6
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.
     52 weeks ended                             26 weeks ended  26 weeks ended
        28 Dec 2012                               28 June 2013    29 June 2012
             Shares                                     Shares          Shares
            Million                                    Million         Million
                    Weighted average number of
                    ordinary shares for basic
              212.2 earnings per share                   212.8           212.0
                    Effect of dilution:  LTIP
                1.3 awards                                 1.0             0.6
                    Adjusted weighted average
                    number of ordinary shares
                    for diluted earnings per
              213.5 share                                213.8           212.6
The profit  attributable  to  equity  holders  of  the  Company  used  in  the 
calculation of  both  basic  and  diluted earnings  per  share  on  continuing 
operations before exceptional items and intangibles amortisation is calculated
as follows.
                                                                26 weeks ended
     52 weeks ended                                               29 June 2012
        28 Dec 2012                             26 weeks ended  Restated (note
  Restated (note 1)                               28 June 2012              1)
                 £m                                         £m              £m
                    Net profit attributable to
                    equity holders from
              309.7 continuing operations *              120.4           143.9
                    Exceptional items &
                    intangibles amortisation
                6.5 net of tax                            20.8            17.0
                    Net profit attributable to
                    equity holders from
                    continuing operations
                    before exceptional items &
              316.2 intangibles amortisation *           141.2           160.9
                                                                26 weeks ended
     52 weeks ended                                               29 June 2012
        28 Dec 2012                             26 weeks ended  Restated (note
  Restated (note 1)                               28 June 2013              1)
              pence                                      pence           pence
                    Basic earnings per share:
              147.5   Total operations*                   56.6            69.4
              145.9   Continuing operations*              56.6            67.9
                      Continuing operations
                    before exceptional items &
              149.0 intangibles amortisation*             66.4            75.9
                    Diluted earnings per
                    share:
              146.6   Total operations*                   56.3            69.2
              145.1   Continuing operations*              56.3            67.7
                      Continuing operations
                    before exceptional items &
              148.1 intangibles amortisation*             66.0            75.7
*Adjusted for £0.5m (2012: (£0.9m)) in respect of non-controlling interests.
There have been no share options (2012: nil) exercised between the reporting
date and the date of signing of these financial statements.
6. Dividends paid & proposed
     52 weeks ended                             26 weeks ended  26 weeks ended
        28 Dec 2012                               28 June 2013    29 June 2012
                 £m                                         £m              £m
                    Declared & paid during the
                    period
                    Equity dividends on
                    ordinary shares
                    Final dividend for 2012:
               54.8 30.0p (2011: 25.8p)                   63.8            54.8
                    Interim dividend: see
               16.9 below (2012: 8.0p)                       -               -
               71.7                                       63.8            54.8
                    Final dividend for 2012
                    proposed for approval by
                    shareholders at the AGM:
               63.8 30.0p                                    -               -
                    Interim dividend for 2013
                    declared by the Board:
                  - 8.8p (2012: 8.0p)                     18.8            17.0
The proposed final dividend and the declared interim dividend are 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  actual 
dividend paid may differ due to increases or decreases in the number of shares
in issue between  the date  of approval of  the financial  statements and  the 
record date for the dividend.
7. Property, plant & equipment & intangible assets
     52 weeks ended                             26 weeks ended  26 weeks ended
        28 Dec 2012                               28 June 2013    29 June 2012
                 £m                                         £m              £m
                    Additions of property,
                    plant & equipment &
                    intangible assets
               27.9   Land & buildings                     5.6             6.6
               87.4   Plant & equipment                   33.1            46.3
                8.3   Intangible assets                    9.0             2.7
              123.6                                       47.7            55.6
8. Business combinations
On 31 December 2012, the Group completed the acquisition of 100% of the voting
shares of Mathena,  Inc ('Weir  Mathena') for  a cash  consideration of  $247m 
(£153m) with a  maximum future payment  of $145m payable  over two years.   Of 
this future payable, $120m is contingent consideration and $25m is an employee
benefit expense which will be recognised as and when it is paid, based on  the 
ongoing employment of  the individuals.   The full amount  is contingent  upon 
meeting profit growth  targets and based  on vendor forecasts  at the date  of 
acquisition we currently expect that the full amount will be payable.  We have
discounted the element of contingent consideration over the period in which it
is expected to  fall due, resulting  in a  deferred liability of  £60m at  the 
acquisition date.  Based  in El  Reno,  Oklahoma  Weir Mathena  is  a  leading 
provider of pressure control rental equipment and services for onshore oil and
gas drilling applications. The  fair values of Weir  Mathena are disclosed  in 
the following table.  The fair  values are provisional pending the  completion 
of the fair  value exercise  in respect  of each class  of asset  and will  be 
finalised during the second half of the financial year. There will be  certain 
intangible assets included in the £61m  of goodwill recognised that cannot  be 
individually separated and reliably measured due to their nature. These  items 
include anticipated business growth,  intellectual property, synergies and  an 
assembled workforce.
During the period the Group also acquired  100% of the voting shares of the  R 
Wales group of companies  ('Weir Wales'), 100% of  the voting shares of  Aspir 
Pty Limited in  Australia, the business  and assets of  the Cheong foundry  in 
Malaysia, and a heavy bay foundry in South Africa.  The combined consideration
for these acquisitions was £54m, with an expected contingent consideration  of 
£2m.  The fair values of these  acquisitions are disclosed in the table  below 
and are  provisional  pending the  finalisation  of the  complete  fair  value 
exercise in respect  of each  class of asset  for each  acquisition. The  fair 
values will be finalised during the  second half of the financial year.  There 
will be certain intangible assets included in the £31m 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.
                                                   Provisional     Provisional
                                                   fair values     fair values
                                                       Mathena          Others
                                                          2013            2013
                                                            £m              £m
Property, plant & equipment                               23.0             4.9
Inventories                                                0.7             2.2
Intangible assets
- customer relationships                                 108.6            20.6
- trade name                                               7.4             2.3
- intellectual property                                      -             0.2
Trade & other receivables                                 11.5             3.6
Cash & cash equivalents                                    3.3             3.2
Interest-bearing loans & borrowings                      (1.3)           (0.2)
Trade & other payables                                   (1.5)           (5.5)
Provisions                                               (0.5)           (0.4)
Deferred tax                                                 -           (6.2)
Fair values of net assets                                151.2            24.7
Goodwill arising on acquisition                           60.6            30.7
Total consideration                                      211.8            55.4
Cash consideration                                       153.0            53.8
Contingent consideration                                  60.1             1.6
Settlement of external debt on acquisition               (1.3)               -
Total consideration                                      211.8            55.4
The total net cash outflow on current year
acquisitions was as follows
- Cash paid                                            (153.0)          (53.8)
- Cash & cash equivalents acquired                         3.3             3.2
Total cash outflow                                     (149.7)          (50.6)
Together, Weir  Mathena  and  the other  acquisitions  contributed  £34.7m  to 
revenue and  £4.9m  to  operating  profit  (including  exceptional  items  and 
intangibles amortisation) in the 26 weeks ended 28 June 2013. The contribution
of the  individual acquisitions  to revenue  and profit  for the  period  from 
continuing operations after exceptional items and intangibles amortisation  of 
the Group was not material and so has not been separately disclosed.
If the acquisitions had occurred at the start of 2013 the combined revenue and
profit for the  period from  acquired operations after  exceptional items  and 
intangibles amortisation, would  not have been  materially different from  the 
results disclosed in the Consolidated Income Statement.
The fair values for Weir Novatech,  Weir Seaboard and Weir International  were 
finalised in the  financial statements  for the  52 weeks  ending 28  December 
2012.  As a result the provisional fair values disclosed at 29 June 2012  have 
been restated.  
9. Interest-bearing loans and borrowings
As at 28 June  2013, £63m (2012:  £nil) was drawn  under the revolving  credit 
facility and £102.3m  (2012: £162.6m)  outstanding under  the amortising  term 
loan.
Total unamortised issue costs at 28 June  2013 were £4.9m (2012 : £7.3m).   On 
the 5 July 2013, the Group  repaid the outstanding unamortised portion of  the 
US$300m amortising term  loan, replacing  the existing  borrowings under  this 
agreement with  an equivalent  draw  down under  the U$800m  revolving  credit 
facility which was entered into in 2010. The Group has recently completed  the 
negotiation of a USD 800m 5 year Revolving Credit Facility with a syndicate of
12 banks.   This  replaces  an  existing facility  of  USD  800m  maturing  in 
September 2014.
10. Pensions & other post-employment benefit plans
 28 Dec 2012                                      28 June 2013    29 June 2012
          £m                                                £m              £m
        90.4 Plans in deficit                             68.7           104.3
The decrease in  deficit of  £21.7m in  the 26 weeks  ended 28  June 2013  was 
primarily due to  actuarial gains  of £21.3m, driven  by an  increase in  gilt 
yields over  the period,  being recognised  in the  Consolidated Statement  of 
Comprehensive Income.
The impact of  IAS19 (Revised) on  the financial statements  for the 52  weeks 
ended 28 December 2012  and the 26  weeks ended 29 June  2012 is an  increased 
charge to the Consolidated Income  Statement of £3.3m and £1.4m  respectively, 
on a pre  tax basis.  There  was no  impact on the  disclosed defined  benefit 
obligation at either period end.
11. Financial instruments
 28 Dec 2012                                      28 June 2013    29 June 2012
          £m                                                £m              £m
             Included in non-current assets
             Forward foreign currency
             contracts designated as cash flow
           - hedges                                        0.3               -
             Other forward foreign currency
         0.8 contracts                                     0.3             0.4
         0.8                                               0.6             0.4
             Included in current assets
             Forward foreign currency
             contracts designated as cash flow
         0.2 hedges                                        0.3             0.6
             Forward foreign currency
             contracts designated as net
           - investment hedges                               -             0.9
             Other forward foreign currency
         3.4 contracts                                    12.1            15.8
         3.6                                              12.4            17.3
             Included in current liabilities
             Forward foreign currency
             contracts designated as cash flow
         0.1 hedges                                        1.2             2.7
             Forward foreign currency
             contracts designated as net
         0.3 investment hedges                             5.9             1.1
             Cross currency swaps designated
           - as net investment hedges                        -            24.5
         9.1 Other cross currency swaps                      -               -
             Other forward foreign currency
         5.2 contracts                                    10.3            15.6
        14.7                                              17.4            43.9
             Included in non-current
             liabilities
             Forward foreign currency
             contracts designated as cash flow
           - hedges                                        0.8             0.1
             Cross currency swaps designated
         0.5 as net investment hedges                      4.1             3.5
             Other forward foreign currency
         0.3 contracts                                     0.2             1.5
         0.8                                               5.1             5.1
             Net derivative financial
        11.1 liabilities                                   9.5            31.3
Carrying amounts & fair values
Set out below is a comparison of carrying amounts and fair values of all of
the Group's financial instruments that are reported in the financial
instruments.
                                               Carrying amount      Fair value
                                                  28 June 2013    29 June 2012
                                                            £m              £m
Financial assets
Derivative financial instruments
recognised at fair value through
profit or loss                                            12.4            12.4
Derivative financial instruments in
designated hedge accounting
relationships                                              0.6             0.6
Trade & other receivables excluding
statutory assets & prepayments                           490.3           490.3
Cash & short term deposits                                78.5            78.5
                                                         581.8           581.8
Financial liabilities
Derivative financial instruments
recognised at fair value through
profit or loss                                          (10.5)          (10.5)
Derivative financial instruments in
designated hedge accounting
relationships                                           (12.1)          (12.1)
Contingent consideration                                (95.6)          (95.6)
Amortised cost
   Bank overdrafts & short-term
borrowings                                              (11.0)          (11.0)
   Trade & other payables excluding
statutory liabilities & deferred
income                                                 (384.5)         (384.5)
   Obligations under finance leases                      (0.7)           (0.7)
   Floating rate borrowings                            (202.4)         (202.4)
   Fixed rate borrowings                               (814.4)         (796.6)
                                                     (1,531.2)       (1,513.4)
   
The  Group  enters   into  derivative  financial   instruments  with   various 
counterparties,  principally  financial  institutions  with  investment  grade 
credit  ratings.   The  derivative  financial  instruments  are  valued  using 
valuation techniques with market observable inputs including spot and  forward 
foreign exchange  rates, interest  rate curves,  counterparty and  own  credit 
risk. The fair  value of  cross currency swaps  is calculated  as the  present 
value of the estimated future cash flows based on spot foreign exchange rates.
 The fair value  of forward foreign  currency contracts is  calculated as  the 
present value of  the estimated future  cash flows based  on spot and  forward 
foreign exchange rates.
The Group uses the following hierarchy for determining and disclosing the fair
value of financial instruments by valuation technique:
      Level 1:  quoted (unadjusted)  prices in  active markets  for  identical 
assets or liabilities;
     Level 2: other techniques for  which all inputs which have a  significant 
effect  on  the  recorded  fair  value  are  observable,  either  directly  or 
indirectly;
     Level 3: techniques which use  inputs which have a significant effect  on 
the recorded fair value that are not based on observable market data.
For financial instruments  that are recognised  at fair value  on a  recurring 
basis, the Group determines whether transfers have occurred between Levels  in 
the hierarchy by re-assessing categorisation (based on the lowest level  input 
that is significant to the  fair value measurement as a  whole) at the end  of 
each reporting period.
At 28 December 2012 and 29 June 2012, the Group held all financial instruments
at level 2 fair  value measurement.  From  29 June 2013  we have now  assessed 
contingent consideration as level 3.
11. Financial instruments (continued)
The opening fair value of the contingent consideration balances classified  as 
level 3 was £24.8m at 29 December 2012, with a closing fair value of £95.6m at
28 June  2013.   The movement  in  the  period is  represented  by  additional 
contingent consideration on acquisitions of  £61.7m, outlined in note 8,  plus 
the unwind  of  the  discount of  £5.8m  detailed  in note  3  and  losses  on 
retranslation of £3.3m.
During the 26  weeks ended 28  June 2013 and  the 52 weeks  ended 28  December 
2012, there  were  no  transfers  between  level 1  and  level  2  fair  value 
measurements and no transfers into or out of level 3 fair value measurements.
The fair value of borrowings,  contingent consideration and obligations  under 
finance leases  is estimated  by  discounting future  cash flows  using  rates 
currently available  for debt  on  similar terms,  credit risk  and  remaining 
maturities.  The fair value of cash  and short-term deposits, trade and  other 
receivables and trade  and other payables  approximates their carrying  amount 
due to the short-term maturities of these instruments.
12. Additional cash flow information
                                                                26 weeks ended
     52 weeks ended                                               29 June 2012
        28 Dec 2012                             26 weeks ended  Restated (note
  Restated (note 1)                               28 June 2012              1)
                 £m                                         £m              £m
                    Continuing operations
                    Cash generated from
                    operations
              468.6 Operating profit                     195.1           224.7
             (20.2) Non cash exceptional items               -             4.5
                    Share of results of joint
              (6.4) ventures                             (3.7)           (2.9)
                    Depreciation of property,
               49.4 plant & equipment                     29.1            24.1
                    Amortisation of intangible
               36.7 assets                                22.0            18.0
                    Gains on disposal of
                    property, plant &
              (0.9) equipment                            (0.4)           (0.4)
                    Funding of pension &
              (0.8) post-retirement costs                (0.5)           (0.4)
                7.5 Employee share schemes                 4.7             3.8
                    Net foreign exchange
                    including derivative
                0.3 financial instruments                  4.0             3.7
                    (Decrease) increase in
             (18.7) provisions                           (4.5)           (7.0)
                    Cash generated from
                    operations before working
              515.5 capital cashflows                    245.8           268.1
             (61.6) Increase in inventories              (3.9)          (52.7)
                    (Increase) decrease in
                    trade & other receivables
               24.4 & construction contracts            (18.1)             7.5
                    (Decrease) increase in
                    trade & other payables &
             (79.7) construction contracts              (40.8)          (81.4)
                    Cash generated from
              398.6 operations                           183.0           141.5
                    Additional pension
              (7.5) contributions paid                   (2.5)               -
            (104.9) Income tax paid                     (37.8)          (65.8)
                    Net cash generated from
              286.2 operating activities                 142.7            75.7
The following tables summarise the cashflows arising on acquisitions:
                    Acquisitions of
                    subsidiaries
                    Current period
            (114.9) acquisitions                       (199.0)         (114.7)
                    Previous periods
                    acquisitions deferred
              (8.4) consideration paid                       -           (3.9)
            (123.3)                                    (199.0)         (118.6)
                    Settlement of external
                    debt of subsidiary on
              (1.9) acquisition                          (1.3)           (1.9)
                    Acquisition of
                    subsidiaries - current
            (114.9) year acquisitions                  (199.0)         (114.7)
                    Total cash outflow on
                    acquisition of
                    subsidiaries - current
            (116.8) year                               (200.3)         (116.6)
                    Previous periods
                    acquisitions deferred
              (8.4) consideration paid                       -           (3.9)
                    Total cash outflow
            (125.2) relating to acquisitions           (200.3)         (120.5)
                    Disposals of subsidiaries
                    Previous periods disposals
               24.7 - proceeds                           (0.2)           (0.4)
                    Previous periods disposals
              (1.8) - cash disposed of                       -               -
                    Cash & cash equivalents
                    comprise the following
              391.1 Cash & short-term deposits            78.5           120.8
                    Bank overdrafts &
              (6.9) short-term borrowings               (11.0)           (4.9)
              384.2                                       67.5           115.9
                    Reconciliation of net
                    increase (decrease) in
                    cash & cash equivalents to
                    movement in net debt
                    Net increase (decrease) in
                    cash & cash equivalents
              284.4 from continuing operations         (317.8)            11.3
                    Net (increase) decrease in
            (322.6) debt                                 112.6         (170.1)
                    Change in net debt
             (38.2) resulting from cash flows          (205.2)         (158.8)
              (0.1) Lease inceptions                         -               -
              (2.3) Loans acquired                       (1.5)           (2.3)
                    Foreign currency
                    translation differences &
                    amortisation of issue
               24.9 costs                               (54.4)           (9.7)
                    Change in net debt during
             (15.7) the period                         (261.1)         (170.8)
                    Net debt at the beginning
            (673.2) of the period                      (688.9)         (673.2)
                    Net debt at the end of the
            (688.9) period                             (950.0)         (844.0)
                    Net debt comprises the
                    following
              391.1 Cash & short-term deposits            78.5           120.8
                    Current interest-bearing
             (65.4) loans & borrowings                 (115.0)          (67.2)
                    Non-current
                    interest-bearing loans &
          (1,014.6) borrowings                         (913.5)         (897.6)
            (688.9)                                    (950.0)         (844.0)
13. Related party disclosure
The following  table provides  the total  amount of  significant  transactions 
which have been entered into with  related parties for the relevant  financial 
period and outstanding balances at the period end.
     52 weeks ended                             26 weeks ended  26 weeks ended
        28 Dec 2012                               28 June 2013    29 June 2012
                 £m                                         £m              £m
                1.0 Sales of goods to related              1.6             0.1
                    parties - joint ventures
                0.2 Sales of services to                     -               -
                    related parties - joint
                    ventures
                1.7 Purchases of goods from                  -             1.0
                    related parties - joint
                    ventures
                2.6 Purchases of services from             1.2             0.1
                    related parties - joint
                    ventures
                1.4 Amounts owed to related                1.2             1.1
                    parties - group pension
                    plans
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  interim 
condensed financial statements were as follows.
     52 weeks ended                             26 weeks ended  26 weeks ended
        28 Dec 2012                               28 June 2013    29 June 2012
                    Average rate (per £)
               1.58 US dollar                             1.54            1.58
               1.53 Australian dollar                     1.51            1.53
               1.23 Euro                                  1.18            1.22
               1.58 Canadian dollar                       1.57            1.59
               3.10 Brazilian real                        3.13            2.94
             770.51 Chilean peso                        736.46          776.98
              13.01 South African rand                   14.17           12.53
                    Closing rate (per £)
               1.62 US dollar                             1.52            1.55
               1.56 Australian dollar                     1.64            1.55
               1.22 Euro                                  1.17            1.25
               1.61 Canadian dollar                       1.60            1.60
               3.30 Brazilian real                        3.33            3.24
             775.72 Chilean peso                        768.21          789.68
              13.69 South African rand                   15.20           13.06

Directors Statement of Responsibilities
The directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS34 "Interim Financial Reporting" as adopted  by 
the European Union, and that the  interim management report herein includes  a 
fair review of  the information  required by the  Disclosure and  Transparency 
Rules of the Financial Services Authority, paragraphs DTR 4.2.7 and DTR 4.2.8.
The directors of  The Weir Group  PLC are  listed in the  Group's 2012  Annual 
Report, with the exception of  Charles Berry who joined  the Board on 1  March 
2013 and was appointed Deputy Chairman on 1 May 2013.
 A list of current directors is maintained on The Weir Group PLC website which
can be found at www.weir.co.uk.
On behalf of the Board
Jon Stanton
Finance Director
30 July 2013

Independent Review Report to The Weir Group PLC
Introduction
We have been engaged by the Company  to review the condensed set of  financial 
statements in the interim  report for the  26 weeks ended  28 June 2013  which 
comprises  the  Consolidated  Income  Statement,  Consolidated  Statement   of 
Comprehensive Income,  Consolidated  Balance  Sheet,  Consolidated  Cash  Flow 
Statement, Consolidated Statement of Changes in Equity and the related notes 1
to 15.  We have read the other information contained in the interim report and
considered  whether  it  contains  any  apparent  misstatements  or   material 
inconsistencies with  the  information  in  the  condensed  set  of  financial 
statements.
This report  is  made  solely  to the  Company  in  accordance  with  guidance 
contained in  International  Standard  on  Review  Engagements  2410  (UK  and 
Ireland) "Review of Interim Financial Information Performed by the Independent
Auditor of the Entity" issued by the Auditing Practices Board. To the  fullest 
extent permitted by law, we do  not accept or assume responsibility to  anyone 
other than the Company, for our work, for this report, or for the  conclusions 
we have formed.
Directors Responsibilities  
The Interim report  is the responsibility  of, and has  been approved by,  the 
directors. The directors are responsible  for preparing the Interim report  in 
accordance with the Disclosure and Transparency Rules of the United  Kingdom's 
Financial Conduct Authority.
As disclosed  in note  1, the  annual financial  statements of  the Group  are 
prepared in  accordance with  IFRSs  as adopted  by  the European  Union.  The 
condensed set of financial statements included in this Interim report has been
prepared in  accordance with  International Accounting  Standard 34,  "Interim 
Financial Reporting", as adopted by the European Union.
Our Responsibility  
Our responsibility is to express to the Company a conclusion on the  condensed 
set of financial statements in the Interim report based on our review.
Scope of Review  
We conducted our review  in accordance with  International Standard on  Review 
Engagements (UK and  Ireland) 2410, "Review  of Interim Financial  Information 
Performed by the  Independent Auditor of  the Entity" issued  by the  Auditing 
Practices Board for use in the  United Kingdom. A review of interim  financial 
information consists of making enquiries, primarily of persons responsible for
financial and accounting  matters, and  applying analytical  and other  review 
procedures. A review is substantially less in scope than an audit conducted in
accordance with  International  Standards on  Auditing  (UK and  Ireland)  and 
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit.  Accordingly, 
we do not express an audit opinion.
Conclusion
Based on our  review, nothing  has come  to our  attention that  causes us  to 
believe that the condensed set of  financial statements in the Interim  report 
for the twenty six weeks ended 28  June 2013 is not prepared, in all  material 
respects, in  accordance with  International Accounting  Standard 34  "Interim 
Financial Reporting" as adopted by the  European Union and the Disclosure  and 
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Ernst & Young LLP
Glasgow  
30 July 2013

 

Shareholder Information
The Board  have declared  an interim  dividend  of 8.8p  (2012: 8.0p).     The 
dividend will be paid on 1 November 2013 to shareholders on the register on  4 
October 2013.  Shareholders may have their dividends reinvested in Weir  Group 
shares by participating in its Dividend Reinvestment Plan (DRIP).  If you wish
to participate in the DRIP, please apply online at www.investorcentre.co.uk or
alternatively, you  can  complete a  DRIP  mandate form  obtainable  from  the 
Company's registrar,  Computershare Investor  Services.   The final  date  for 
receipt of DRIP elections is 11 October 2013.  
Financial Calendar
Ex-dividend date for interim dividend
2 October 2013
Record date for interim dividend
4 October 2013
Shareholders on the register at this date will receive the dividend
Final day for receipt of DRIP elections
11 October 2013
Interim dividend paid
1 November 2013
The Interim Report can be downloaded from The Weir Group PLC website at:
www.weir.co.uk

 

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Source: The Weir Group PLC via Thomson Reuters ONE
HUG#1719562
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