Weir rejoins FTSE 100 after 50% share price rise

Glasgow-based global engineering and mining giant Weir Group has returned to the FTSE 100 after its share price soared about 50% in the past 12 months amid analysts’ enthusiasm for its new strategy of targeting global mining markets after selling its oil and gas division.

Weir has a current stock market value of roughly £5 billion.

AJ Bell investment director Russ Mould said: “The irony here is that Weir’s return to the big league would owe much to a decision to slim the company down, through the sale of its Oil & Gas operations to America’s Caterpillar, and decision to focus on mining equipment.”

Weir Group on Tuesday announced its results for the year ending December 31, 2020, showing revenue stable at almost £2 billion — but the firm said a resumption of its dividend will depend on a “combination of factors.” 

Weir completed the sale of its oil and gas division to Caterpillar last month to become “a provider of premium technology to global mining and infrastructure markets.”

Revenue from continuing operations slipped 4% to £1.96 billion in 2020 and adjusted profit before tax from continuing operations was 5% lower at £255 million.

The Glasgow firm said 80% of its revenues now come from “attractive” mining markets.