Annual Report
2024
Mining technology for a sustainable future
WEIR
Strategic Report
Governance
Financial Statements
Additional Information
2024 highlights
In 2024, Weir has continued to execute its strategy for sustainable mining.
Orders Note 1
£2,523m
+2% Note 2
Adjusted profit before tax Note 1, Note 3
£428m
+4%
Adjusted operating margin Note 1, Note 3
18.8%
+140bps
Total incident rate Note 1, Note 4, Note 5
0.42
0.42 in 2023
Employee net promoter score
(eNPS) Note 1, Note 5, Note 7
47
in the top quartile
within manufacturing Note 8
48 in 2023
Revenue Note 1
£2,506m
negative 1% Note 2
Statutory profit after tax
£313m
+37%
Free operating cash conversion
102%
+17pp
Revenues from new products Note 1, Note 6
£144m
negative 6%
Scope1&2 greenhouse gas
emissions Note 1, Note 5, Note 9
133,488
tonnes CO subscript 2 e
27% reduction
since 2019
Note 1. Continuing operations.
Note 2. 2023 restated at 2024 average exchange rates.
Note 3. Profit figures before adjusting items (note 2 of the Group Financial Statements).
Note 4. Total incident rate is an industry standard indicator that measures lost time and medical
treatment injuries per 200,000 hours worked.
Note 5. The 2024 KPI was subject to independent limited assurance by SLR Consulting.
Note 6. Defined as revenue from new products introduced in the last five years.
Note 7. eNPS (employee net promoter score) is an index used to measure employee satisfaction levels.
Note 8. Based on Peakon’s manufacturing sector benchmarks.
Note 9. Market-based greenhouse gas emissions. For definition, see page 56.
The Weir Group PLC Annual Report and Financial Statements 2024
The Weir Group PLC Annual Report and Financial Statements 2024
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Strategic Report
Governance
Financial Statements
Additional Information
Contents
Strategic Report
01
Our purpose
2
Mining technology for a sustainable future
3
Investment case
7
Chair’s statement
9
Chief Executive Officer's strategic review
11
Market review
15
Business model
17
Our stakeholders
19
Our We are Weir strategic framework
21
Sustainability at the core
22
Strategic progress: Customer
23
Strategy in action: Customer case study
25
Strategic progress: Technology
26
Strategy in action: Technology case study
28
Strategic progress: Performance
29
Strategy in action: Performance case study
31
Strategic progress: People
32
Strategy in action: People case study
34
Key performance indicators
35
Operating review: Minerals Division
37
Operating review: ESCO Division
39
Financial review
41
Sustainability review
46
Risk management
59
Viability statement
71
Governance
73
Introduction from the Chair
73
Governance at a glance
74
Board of Directors
75
Group Executive
79
Our Governance framework
80
Board activities and principal decisions made in 2024
81
Shareholder and investor engagement
83
Our culture and approach to employee engagement
84
Wider stakeholder engagement by the Board
87
Division of responsibilities
88
Board effectiveness
89
Risk management and internal controls
90
Nomination Committee report
91
Safety, Sustainability and Technology
Committee report
97
Audit Committee report
99
Directors' Remuneration report
113
Directors' report
148
Statement of Directors' responsibilities
152
Financial Statements 153
Independent auditors’ report to the members
of The Weir Group PLC
153
Consolidated Income Statement
161
Consolidated Statement of Comprehensive
Income
162
Consolidated Balance Sheet
163
Consolidated Cash Flow Statement
164
Consolidated Statement of Changes in Equity
165
Notes to the Group Financial Statements
167
Company Balance Sheet
227
Company Statement of Changes in Equity
228
Notes to the Company Financial Statements
229
Additional Information
Subsidiary undertakings
239
Shareholder information
246
Glossary
250
Cautionary statement: This Annual Report contains forward-looking statements with respect to the financial condition, operations and performance of the Group.
These statements reflect knowledge and information available at the date of preparation of this Annual Report. By their nature, these statements involve uncertainty
since future events and circumstances can cause results and developments to differ materially from those anticipated. The Company undertakes no obligation to
update these forward-looking statements and nothing in this Annual Report should be construed as a profit forecast.
The Weir Group PLC Annual Report and Financial Statements 2024
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Additional Information
Strategic Report
Our purpose
We are here to enable
the sustainable and
efficient delivery of
the natural resources
essential to create a
better future
for the world
Find out more on our website: global.weir
Read more about
our purpose
Weir is a global leader in mining
technology that is helping the
mining industry scale up and clean up.
We provide innovative end-to-end
solutions that are accelerating the
transition to smart, efficient and
sustainable mining.
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Mining
technology
for a
sustainable
future
Our planet’s future depends
on the transition to renewable
energy, and that transition can
only happen with the metals
and minerals our mining
customers deliver.
Read more about mining
technology for a
sustainable future
Every mine is different. Delivering
innovative mining technology solutions
demands a combination of deep
customer insight, world class
engineering and materials science,
enabled by intelligent automation.
No one serves more mines
than Weir.
Working in close partnership
with our customers, we help
them to move less rock, use
less energy, use water wisely
and create less waste,
accelerating the path to
smart, efficient and
sustainable mining.
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Governance
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Additional Information
A clear
strategy for
sustainable
mining
Our We are Weir strategy sets
out our ambition for how we will
deliver mining technology for a
sustainable future.
It has four strategic pillars -
People, Customer, Performance
and Technology - with our
purpose and our sustainability
strategy at its core.
• Read more about our strategic
framework on pages 21 to 34
People
We are a global family.
We are proud of our unique blend
of talent, technology and culture.
We are here to inspire our
people to do the best work
of their lives.
Customer
We will be the most admired
business in our sector.
Working in partnership, we
deliver distinctive solutions
and compelling value.
Performance
We deliver excellence for all
of our stakeholders, through
strong leadership, performance
culture and rigorous standards
of governance.
Technology
We shape the next generation
of smart, efficient and
sustainable solutions with
cutting-edge science and our
tradition of innovation.
Strategic Report
Governance
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The Weir Group PLC Annual Report and Financial Statements 2024
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Our end-to-end mining technology solutions tackle our customers' biggest challenges
Move less rock
Miners want to reduce effort spent on
processing zero and low grade ore. We
help them optimise the material
entering their processing plant.
Use less energy
Mining today is very energy
intensive. Our solutions deliver
significant energy savings and
lower CO subscript 2 emissions.
Use water wisely
Water is fundamental in minerals
processing. Our solutions increase
water recovery, recycling and
introduce water-free steps.
Create less waste
Today, over 90% of waste rock
ends up in tailings. We help
manage the tailings produced
more safely and sustainably.
Note 1. Savings = 3,000 t/y haulage + 1,900 t/y reduced usage of lower priority loaders. Note 2, Note 3, Note 4 & Note 6.
Improvements from Weir’s redefined circuit when compared to a conventional circuit.
Up to 55% less water compared to a thickener alone.
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The Weir Group PLC Annual Report and Financial Statements 2024
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A global presence
No one serves
more mines
than Weir
Our customer intimacy sets
us apart. We are close to our
customers - never more
than 200km away from any
major mine.
c.12,000
colleagues
>50
countries around the world
32%
of sales
North America
3,199 colleagues
5%
of sales
Europe
1,589 colleagues
12%
of sales
Asia Pacific
1,839 colleagues
18%
of sales
Australasia
1,267 colleagues
12%
of sales
Middle East & Africa
1,352 colleagues
21%
of sales
South America
2,405 colleagues
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Governance
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The Weir Group PLC Annual Report and Financial Statements 2024
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Investment case
Weir is a focused mining technology leader with a compelling value creation opportunity. We have highly attractive business
fundamentals: we enable the mining industry to deliver the natural resources needed to support the global energy transition.
In parallel, our Performance Excellence programme drives value creation and returns.
Strongly positioned for long-term sustainable growth
– Mining is expected to offer high growth potential over the decades ahead driven by
demand for metals such as copper, that will enable the global energy transition.
– Our aftermarket-focused business model is highly resilient as around 80% of our
revenues come from supplying aftermarket (AM) equipment. This is driven by the
tonnes of ore our customers process and is largely inelastic to mining capital
expenditure and commodity price cycles.
– We continue to expand our addressable market over time through organic growth
initiatives and accelerate our growth through carefully selected acquisitions.
• Read more about sustainable growth on pages 17 to 18
With unique capabilities and high barriers to entry
– We use our world class engineering, innovation and manufacturing capability to
solve our customers’ most difficult challenges.
– We have high levels of customer intimacy, with both ‘boots on the ground’
relationships and strategic global collaborations.
– We have a large captive installed base of trusted mission-critical equipment,
underpinned by our IP, leading brands, customer intimacy and vertically integrated
operating platform. We retain >90% of the AM opportunity from our installed base.
• Read more about our strategic progress on pages 21 to 34
Our commitments are simple and clear
Growth
Outgrowing our markets
Mid to high single digit % organic revenue growth through the cycle
Margins
Expanding our margins
Adjusted operating profit margin sustainably above 20% in 2026
Returns
Converting earnings into cash and returns
90-100% free operating cash conversion; focus on growing ROCE
Resilience
Providing resilience and predictability
7% Minerals AM revenue CAGR since 2010
Sustainability
Delivering for people and planet
Accelerate sustainable mining; deliver sustainable Weir
Prioritising total shareholder returns
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The Weir Group PLC Annual Report and Financial Statements 2024
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Strongly positioned for long-term sustainable growth
Biased towards future-
facing commodities
Focused on attractive
markets
77%
of revenues
from mining
applications
⬛Mining applications
77%
⬛Infrastructure & other
23%
49%
of revenues from
copper, iron ore,
gold and battery
metals
⬛Copper
23%
⬛Gold
11%
⬛Iron ore
10%
⬛Industrial
12%
⬛Infrastructure
8%
⬛Oil sands
7%
⬛Coal
5%
⬛Nickel, lithium, cobalt (battery metals)
5%
⬛Other minerals
16%
⬛Other
3%
Highly resilient through
the cycle
80%
of revenues from
recurring
aftermarket
⬛Aftermarket
80%
⬛Original equipment
20%
Serving customers from pit to processing plant
through two Divisions
ESCO Division
Principally serving the extraction
activities of customers, the Division
supplies ground engaging tools (GET),
attachments, and AI and machine
vision technologies that optimise
productivity in global mining and
infrastructure markets.
• Read more about ESCO Division
on pages 39 to 40
Divisional revenue Note 1
£688m +1% Note 2
Divisional adjusted operating profit Note 1, Note 3
£129m +9% Note 2
% Divisional revenue from aftermarket
91%
Note 1. Continuing operations.
Note 2. 2023 restated at 2024 average exchange rates.
Note 3. Profit figures before adjusting items (note 2 of
the Group Financial Statements).
Minerals Division
Working across comminution,
processing and tailings, the Division
engineers, manufactures and
services processing technology
used in abrasive high wear
applications in global mining and
infrastructure markets.
• Read more about Minerals Division
on pages 37 to 38
Divisional revenue Note 1
£1,818m negative 2% Note 2
Divisional adjusted operating profit Note 1, Note 3
£383m +9% Note 2
% Divisional revenue from aftermarket
75%
Note 1. Continuing operations.
Note 2. 2023 restated at 2024 average exchange rates.
Note 3. Profit figures before adjusting items (note 2 of
the Group Financial Statements).
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Chair’s statement
“"
Through Performance Excellence and
our continued focus on operational
performance, we have the financial
strength and stable platform to invest for
growth and drive value for shareholders."
Barbara Jeremiah
Chair
A compelling value
creation opportunity
Dear shareholder,
I am pleased to report that our strategy is delivering on many
fronts. We have posted a strong financial performance and
made good progress in accelerating sustainable mining for
our customers. Colleagues across Weir have played their part
in these achievements and the Board recognises that some
of the changes being made to optimise our business have
had an impact on individuals. On behalf of the Board, I would
like to thank all of our people for their efforts in 2024.
Creating value through growth and
Performance Excellence
Through our focused strategy, we are capitalising on the
growth opportunities in our mining markets. Securing a
significant order for our transformational technology at the
Reko Diq copper project in Pakistan is a further signal that the
mining industry is increasingly recognising the value of our
sustainable solutions, while the successful commercial launch
of our next generation ESCO® Nexsys™ lip and GET system
exemplifies our sustained technology leadership.
We have continued to execute our Performance Excellence
transformation programme. A major milestone in 2024 has
been the move to a global business services model for our
core functions. We have also realised the benefits from a
number of capacity optimisation projects and lean initiatives
that commenced at the start of the programme. Overall, we
are ahead of where we expected to be in terms of the cost
savings delivered and we are unlocking additional
opportunities. Through Performance Excellence and our
continued focus on operational performance, we have the
financial strength and stable platform to invest for growth
and drive value for shareholders.
Engaging with employees and other stakeholders
Connecting with our employees, understanding their views
and sharing our perspectives is an important aspect of the
Board’s role, including our role in shaping the culture at Weir.
We really value our interactions with colleagues around the
world during our formal Tell the Board sessions and town
halls, as well as through our more informal discussions and
site visits. During the year, we enjoyed a memorable visit to
our operations in India where we learned more about our
activities and the growing market opportunities in the
country. We met with colleagues in the Engineering Science
(EnSci) team and were struck by the real energy and vitality
they have for their work and the pride they have for their
contributions to Weir’s success.
Individually, or in small groups, my Board colleagues and I
also visited Weir’s operations and spent time with employees
in the UK and Turkey this year, and held a virtual Tell the Board
session with some of our graduates and interns. We
continued to meet with affinity group members and allies
as well as our recently formed Inclusion, Diversity and Equity
(ID&E) Steering Committee to hear about the progress of
our ID&E strategy and the opportunities for improvement. As
always, discussions have been wide ranging and the Board
appreciates the thoughtful questions that are put to us.
I continued to meet with our major shareholders during 2024
to understand their perspectives on our performance,
governance and strategy. It is evident from my discussions
that the views of our shareholders are well aligned with our
own and I’d like to thank them for their continued support
and constructive input.
• Read more about the Board’s employee engagement
approach, activities and engagement with other
stakeholders in 2024 on pages 83 to 87
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Our focus on safety, sustainability and technology
Thinking safety first is a core value for Weir and the top
priority for the Board in our meetings and our virtual and
in-person discussions with employees. Right across the
Company, there is huge emphasis and action on achieving
a zero harm workplace where no one gets hurt. As such,
following the tragic event in April, where one of our
colleagues suffered a fatal incident, the Board has supported
Jon, our CEO, and the Executive as they acted promptly to
understand and learn from what happened and reinvigorate
the safety culture and approach.
Given the Board’s role in shaping culture, including safety
culture, we are dedicating additional time and focus to safety.
We have added safety to the remit of one of our Board
Committees, now called the Safety, Sustainability and
Technology Committee, chaired by our Non-Executive
colleague, Tracey Kerr, who has extensive experience in
all aspects of operations from her work in major global
mining companies.
We formed this Committee in December 2023, initially with
sustainability and technology as its remit, as a forum to
provide both strategic and governance oversight in exploring
the future of the mining industry and the implications for
Weir. During the Committee’s first year, discussion topics
included a review of the progress of our sustainability
strategy and our Enterprise Technology Roadmap, as well
as thematic deep-dives on the key sustainability challenges
faced by our customers.
Given the criticality of technology to Weir’s strategy, business
model and customer value proposition, the full Board joined
the Group Executive in October for a technology review
session at Weir’s Advanced Research Centre in Glasgow, UK.
This was a very useful opportunity for the Board members to
learn more about the many aspects of our technology that
underpin our growth and success.
The Board in 2024
We have continued to refresh the diversity of skills and
experience of the Board this year. In March 2024 we
welcomed Brian Puffer as our new CFO. We are already
benefiting from his strong leadership of both our finance
function and in the delivery of Performance Excellence, and
he has brought fresh perspective to the Board.
As noted in my statement last year, Andy Agg joined us as an
independent Non-Executive Director at the end of February
2024. Andy is currently CFO of National Grid plc and as such,
is contributing important insight to the work of the Board. I
also noted last year that two of our Non-Executive Directors,
Srinivasan Venkatakrishnan and Sir Jim MacDonald, would
step down, and they left us in March and April respectively.
In May, we were delighted to appoint Nick Anderson to the
Board as an independent Non-Executive Director, and to
welcome him to his first Board meeting in June. Nick had
recently retired as Group Chief Executive of Spirax-Sarco
Engineering plc, the FTSE 100 industrial engineering company,
and his wealth of experience as a leader in international
engineering and manufacturing operations is already proving
to be a great asset to the Board.
Having informed us of his intention to retire for personal
reasons, Stephen Young, our independent Non-Executive
Director and Chair of the Audit Committee left us at the end
of July. I’d like to thank Stephen for his many contributions to
the work of the Board and the Audit Committee over the
course of his tenure and wish him all the best for the future.
Following Stephen’s retirement, Andy Agg succeeded
Stephen as Chair of the Audit Committee.
Through our recent appointments, we have a talented Board
well suited to support Weir in achieving its strategic
objectives, with deep experience spanning mining and
engineering, international business and finance. Our
programme of visits this year has helped our new members
to become immersed in Weir’s business and culture and I am
very pleased with how we are working as a team.
Towards the end of the year we carried out our externally
facilitated triennial deep dive Board performance review.
The headline findings were extremely positive, noting that
interactions are productive and relationships are going well
at these early stages of a newly refreshed Board. The review
identified helpful focus areas for 2025, and it was pleasing to
see that the feedback and conclusions confirmed that, as a
Board, we are focusing well on creating shareholder value
through our Board discussions.
• Read more about our Board and the performance review
on pages 75 to 78 and page 89
Final reflections
As I look back on 2024, we have achieved a strong
performance against an uncertain macroeconomic and
geopolitical backdrop. We are executing our strategy well and
delivering strongly on the commitments we laid out in 2022.
We expect further growth in the year ahead and our
longer-term opportunities remain compelling. Consequently,
the Board is recommending a final dividend of 22.1 pence
per share, which equates to a total full year dividend of 40.0
pence per share and represents an increase of 4% on the
prior year.
Our future prospects are very exciting and we have a strong
and committed team. It is clear that the world needs
substantially more metal for the energy transition, and that
metal must be produced more sustainably. Technology is a
massive enabler and that plays precisely to the strengths of
Weir. The opportunity for growth and value creation therefore
remains attractive, and as demonstrated in 2024, we are
proving we can deliver.
Barbara Jeremiah
Chair
27 February 2025
The Weir Group PLC Annual Report and Financial Statements 2024
10
Chair’s statement
continued
Strategic Report
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Additional Information
Chief Executive Officer’s strategic review
"
Weir is delivering on its mission to
provide mining technology for a
sustainable future and executing well
against the commitments set out in
our investment case."
Jon Stanton
“
Chief Executive Officer
Watch Jon’s review of our 2024 performance
Visit: global.weir/ceo-review-2024
Accelerating the path
to sustainable mining
A year of strategic progress
In 2024, we performed strongly against a
backdrop of macroeconomic and geopolitical
uncertainty, with achievements across the
four pillars of People, Customer, Technology
and Performance in our We are Weir
strategic framework.
We grew our pipeline of market-leading sustainable original
equipment (OE) solutions and delivered growth in our
aftermarket (AM) business as customers maximised
production at their existing assets. We transformed the way
we operate across our businesses and maintained our focus
on our customers. We executed well against our
commitments to our stakeholders delivering significant
growth in operating profit, operating margins and cash
generation.
Throughout the year, activity levels in mining markets
remained high as customers position to address the
long-term structural demand for critical minerals. While
permitting remains a challenge in certain geographies,
governments around the world have signalled their support
for accelerating long delayed applications and bright spots
are emerging as customers renew investment in future
growth through new greenfield projects. In June we launched
our refreshed brand - mining technology for a sustainable
future - positioning Weir as a market-leading strategic
partner for our customers as they scale up and clean up to
deliver the metals and minerals required for the energy
transition.
This is reflected in our strengthening pipeline of projects that
is beginning to convert, while our resilient aftermarket biased
business model continues to deliver growth across our
businesses.
We made significant progress in our Performance Excellence
programme in 2024, delivering cumulative savings of £29m,
ahead of expectations. Our achievement reflects our
progress in optimising capacity, implementing lean
processes and functional transformation across Weir, all while
maintaining our commitment to be there for our customers.
Our refreshed sustainability strategy now sits at the core of
our We are Weir strategic framework - focusing on what we
do internally to deliver sustainable Weir and externally to
accelerate sustainable mining. The health, safety and
wellbeing of colleagues remains our top priority, and we have
taken steps to reinforce and reinvigorate a zero harm culture.
Partnering with customers, our engineers are developing
innovative new technologies to move less rock, use less
energy, use water wisely and create less waste, enabled by
intelligent automation. In 2024 we launched ESCO® Nexsys™,
the next generation of our market-leading core GET and lip
system. We also continued to expand our digital offering with
the launch of NEXT intelligent solutions and new MOTION
METRICS™ ShovelMetrics™ technology to support our
customers in making real-time decisions that help them to
run their operations more efficiently and safely.
Our performance in 2024 is a testament to the hard work and
dedication of Weir colleagues across the globe. We recognise
that the tough choices we have had made as we optimise
our business has impacted some of our people. I would like
to thank all our employees for their commitment and
contribution to our success.
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Going into 2025, we have strong operational momentum and
supportive mining markets, underpinning our expectations
for further revenue growth and margin expansion. We
anticipate greater capital expenditure in mining markets will
drive heightened demand for our market-leading
sustainable solutions, particularly for larger flowsheet
solutions. Given the strong delivery of our Performance
Excellence programme, we are upgrading the absolute
savings target to £80m in 2026 and, as a result, expect to
achieve operating margins sustainably beyond 20% in 2026.
Further out, we are well positioned to deliver compelling
value creation to our stakeholders. We are a focused mining
technology leader with differentiated capabilities and high
barriers to entry. Our markets are primed for a multi-decade
growth opportunity driven by demand for critical minerals to
support the energy transition, as well as the adoption of
artificial intelligence (AI). Together with our strong operating
platform, we are well positioned to deliver compounding
financial benefits, while remaining resilient and doing the
right thing for our people and the planet.
Growth: Demand for critical minerals driving original
equipment order pipeline conversion
The structural demand drivers for critical metals enabling
electrification remain robust, supplemented by growing
investment in AI. Despite short-term uncertainty in commodities,
constructive changes in mine permitting and greenfield capital
expenditure globally drove demand for our larger OE solutions
through the second half of the year.
We secured a £53m order to supply an industry-leading fine
grinding solution to Barrick Gold's Reko Diq copper-gold
project in Pakistan, capitalising on growing industry
acceptance of our Redefined Mill Circuit and supporting our
customer's need to use less energy and water at this remote
mine site. We also secured a £25m order to supply an energy
efficient separation solution to OCP's Benguerir and Louta
phosphate projects in Morocco, leveraging the market-
leading WARMAN® slurry pump and CAVEX® hydrocyclone
brands. Demand for OE in smaller brownfield and
debottlenecking projects at existing mines remained stable.
Full year constant currency OE orders decreased 4% reflecting
delays in timing of project awards in Q4 following a strong
Q3, with several medium size orders being received in
January. In our core Minerals business, we converted 92% of
our completed mill circuit pump trials and in ESCO we won
118 net major diggers as we continue to drive strategic
growth initiatives.
Encouragingly, several Tier 1 miners announced plans for
additional capex throughout the globe and we continue to
position ourselves as an essential partner for our customers
in key growth markets. For example, in order to participate in
the mining and metals growth strategy of Saudi Arabia, we
agreed a head of terms to form a joint venture with Olayan
Saudi Holding Company (Olayan), which will extend our
extensive expertise in sales and sustainable mining
technology solutions to the region. Under the terms of the
joint venture, Weir will take the lead on sales, technical and
product responsibilities, while Olayan will focus on new
business development, capitalising on its strong presence
and knowledge of the regional market.
Growth in aftermarket: Installed base expansion
and improving activity levels
Overall, we saw good levels of activity across the global
mining sector. Market prices for our main commodity
exposures of copper, gold and iron ore were well above
customers' cost to produce, while nickel and lithium
producers remain under pressure from lower commodity
prices.
Across the Group, demand was particularly strong in the
Middle East and Africa where we continue to grow market
share. Both Minerals and ESCO saw an elevated level of
mine-specific headwinds in the first half, such as shutdowns
in Panama and Australia, but these trends were more than
offset in the second half as the commissioning of new
installed base accelerated. From a commodity perspective,
order growth was strongest in future facing minerals such as
copper and phosphate, while year-on-year demand
decreased in both coal and the oil sands.
Infrastructure markets were largely stable through the year.
Orders from infrastructure customers grew 2%, though
absolute orders remain below peak levels seen in previous
years.
Full year constant currency AM orders increased by 4% driven
by hard rock mining production trends, installed base
expansion and a modest contribution from pricing.
As previously indicated, the large annual recurring order
usually received in Minerals during the second quarter has
been split this year between the second and fourth quarter
due to the timing of the contract renewal - the net effect
being that c.£14m of aftermarket orders have shifted to the
second half. In 2025, the full annual order of around £31m is
expected to be received in the second quarter.
Revenue Note 1
£2,506m
negative 1% Note 2
Revenue and margins: Performance Excellence
ahead of plan
Despite strong execution in the fourth quarter, revenue for
the Group declined 1% for the full year on a constant
currency basis with aftermarket growth of 2% offset by the
phasing of two large OE project deliveries into 2025. The
Group’s book-to-bill was 1.01. The operating environment in
2024 was stable. Our leading market positions and strong
brands enabled us to achieve sufficient price increases
during the year to protect our gross margins from any
inflationary effects across our cost base.
Progress within our Performance Excellence programme
continues at pace and is ahead of our targets for cumulative
absolute savings. During the year, we recognised the benefits
of projects launched at the start of the programme, including
the consolidation of several Minerals manufacturing facilities
in the US and APAC, as well as optimisation of our Australian
service centre and Latin American distribution footprints.
Adoption of our refreshed lean programme, Weir Integrating
Network System (WINS) in Minerals, contributed to the largest
savings during the year, driving a reduction in overall material
cost as well as quality improvements.
We opened our new ESCO foundry in Xuzhou, China, the most
efficient in our network, ensuring that we remain highly
responsive to demands from within our own supply chain.
We also established Weir Business Services (WBS) and are
embedding new ways of working through transformation
across our Finance, HR and IS&T functions, the benefits of
which will be reflected in years to come.
The Weir Group PLC Annual Report and Financial Statements 2024
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Strategic Report
Governance
Financial Statements
Additional Information
Adjusted operating margin Note 1, Note 3
18.8%
+170bps Note 2
On a constant currency basis, adjusted operating profit grew
9% year-on-year, and adjusted operating margins were
18.8%, up 170bps on the prior year. Expansion in operating
margin arose from very strong execution within Performance
Excellence workstreams and movement in Minerals revenue
mix towards aftermarket.
Return on capital employed Note 1
19.3%
+130bps
Returns: Growth in returns and strong balance sheet
Free operating cash conversion for the year increased to
102%, above our 2024 target range of 90% to 100%, benefiting
from a strong reduction in working capital driven by lean
projects within Performance Excellence. Our strong cash
generation continued through the second half of the year
and overall represents a significant 17 percentage point
improvement on the prior year. Working capital as a
percentage of sales reduced to 20.7% (2023: 21.3%).
As a result, net debt to EBITDA at the end of December was
0.7x, giving the Group considerable optionality and flexibility
to deploy capital to grow total shareholder returns.
Reflecting our focus on execution together with continuing
deleveraging of our balance sheet, return on capital
employed (ROCE) was 19.3%, an increase of 130bps versus
the prior year.
Full year dividend
40.0p
+4%
The Board is recommending a final dividend of 22.1 pence
per share. This equates to a total full year dividend of
40.0 pence per share, in line with our policy to pay out 33%
of adjusted earnings per share (EPS), and represents an
increase of 4% on the prior year. The final dividend will be
paid on 30 May 2025 to shareholders on the register on
22 April 2025.
Safety and sustainability: Affirming our vision for a
zero harm workplace
Our goal is a zero harm workplace where everyone goes
home safe and healthy. However, in 2024 we fell very short of
our goal. In April, tragically one of our colleagues suffered a
fatal accident while at work. Since then, we have held safety
stand downs to discuss the learnings and re-emphasise that
safety must always come first. Overall, in 2024, lost time
accident numbers were flat year-on-year and our total
incident rate Note 4 (TIR) was unchanged at 0.42 (2023: 0.42).
Following events in 2024, we have taken action to
reinvigorate our safety approach. It is absolutely our top
priority in 2025 to ensure we drive improvement in our safety
performance.
Total incident rate Note 1, Note 4
0.42
2023: 0.42
Within our businesses we continue to talk openly about
mental health and prioritise wellbeing. We were once again
recognised by CCLA as a 'top improver' for mental health in
an assessment of the UK's largest companies.
We have continued to focus on making Weir a place where
people feel like they belong and where they can do the best
work of their lives. During the year, we created a new
inclusion, diversity and equity (ID&E) Steering Committee of
representatives from our senior leadership team as part of
our efforts to accelerate the benefits that come with having a
vibrant purpose-driven culture.
We invested in our people, supporting a focus on talent and
succession planning through learning and personal growth.
Our new global mentoring programme will provide additional
opportunities to connect our employees and develop
mutually rewarding relationships across our workforce. As we
look to develop the next generation of talent and capabilities,
we have continued our involvement with science, technology,
engineering and maths (STEM) initiatives across the globe.
Our brand launch in June provided an opportunity for
colleagues to more deeply connect with our purpose and our
mission to create mining technology for a sustainable future.
It was great to see so many of them join introductory
webinars and leader-led workshops to explore and
understand more about the brand. Then, in December, we
launched a new global programme, the Weir values awards,
to further drive connection and recognise those colleagues
who exemplify our values in action. There has been a very
positive response with over 200 nominations received and I
am looking forward to announcing the winners in April 2025.
Listening to colleagues and acting on their feedback gives us
insight that helps maintain our special culture and we
continue to run our annual all-employee survey. Pleasingly,
our employee net promoter score Note 5 (eNPS) of 47 remains in
the top quartile of manufacturing companies Note 6 as
benchmarked by Peakon. We maintain high levels of
participation across our employees, with 88% responding to
this year's survey.
The Weir Group PLC Annual Report and Financial Statements 2024
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Chief Executive Officer’s strategic review
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Strategic Report
Governance
Financial Statements
Additional Information
We have continued to embed our refreshed sustainability
strategy to deliver sustainable Weir and work in partnership
with customers to accelerate sustainable mining. We have
made great progress against our 2030 scope 1&2 Science
Based Targets initiative (SBTi) targets and are well on track to
deliver our target to reduce these emissions Note 7 by 30% versus a
2019 baseline.
We are actively mapping our performance against future
non-financial reporting regulations to help us prepare to
meet International Sustainability Standards Board (ISSB) and
EU Corporate Sustainability Reporting Directive (CSRD)
requirements over the coming years. While these standards
are not yet fully implemented, our focused approach is
designed to ensure we place our best efforts on the most
material impacts, risks and opportunities.
Partnering with customers on transformative
technology
Through our technology strategy we prioritise our R&D
investment towards solutions that boost productivity and
sustainability for our customers while continuing to protect
our core business. Our portfolio covers engineered hardware
as well as digital technology and we continue to integrate
these to generate added insight and enhanced performance
for our customers.
Historically, the mining industry has been somewhat
conservative when it comes to adopting new technology.
However, in my discussions with our customers,
it is very clear they are looking to partner with innovators like
Weir that can help them scale up and clean up the way they
extract and process minerals. We are increasingly engaging
with them on opportunities for our transformative solutions
that combine proven technologies in innovative ways,
enabled by intelligent automation, as their appetite for these
new technologies continues to grow.
Outlook: Growth in revenue, operating profit and
margins in 2025
Activity levels in our mining markets are positive as
customers look to invest in projects that address structural
critical metal demand. Supported by favourable commodity
prices, customers continue to prioritise maximising ore
production and improving the efficiency of existing mine
sites which, together with ongoing installed base expansion,
provides a strong underpin for demand for our aftermarket
solutions.
We have upgraded our total Performance Excellence savings
target to £80m in 2026, with £20m of incremental savings
expected in 2025. This is supported by additional capacity
optimisation and lean process opportunities that have been
identified as we progress with the programme. We anticipate
additional exceptional costs of £30m to complete these
projects, taking the total expected programme cost to
£120m.
The continued favourable backdrop in mining, combined with
execution of Performance Excellence, underpins our
confidence in delivering 2025 operating profits in line with
current market expectations, driven by mid single digit
revenue growth and around 50bps of operating margin
expansion. We expect free operating cash conversion of
between 90% and 100%, in line with our medium-term
guidance as capex settles in line with depreciation and our
lean operating model continues to deliver working capital
efficiency.
Further out, the long-term value creation opportunity for Weir
is compelling. The fundamentals for our business are highly
attractive, underpinned by long-term structural growth
trends in our mining markets, and our technology strategy to
accelerate sustainable mining. In addition, we expect the
benefits of Performance Excellence will drive further margin
expansion and move our operating margins sustainably
beyond 20%, while our strong cash generation and balance
sheet give us optionality to allocate capital, compounding
total shareholder returns.
Mining technology for a sustainable future
Weir is delivering on its mission to provide mining technology
for a sustainable future and executing well against the
commitments set out in our investment case. Leveraging our
technical capabilities and our customer intimacy, we are
shaping innovation that will enable the mining industry to
scale up and clean up and delivering strong outcomes for
customers. At the same time our Performance Excellence
programme has created the efficient scalable platform that
positions Weir for compounding growth in the years ahead.
Jon Stanton
Chief Executive Officer
27 February 2025
Note 1 Continuing operations.
Note 2 2023 restated at 2024 average exchange rates.
Note 3 Profit figures before adjusting items (note 2 of the Group Financial
Statements).
Note 4 Total incident rate is an industry standard indicator that measures lost time
and medical treatment injuries per 200,000 hours worked.
Note 5 eNPS (employee net promoter score) is an index used to measure employee
satisfaction levels.
Note 6 Based on Peakon’s manufacturing sector benchmarks.
Note 7 Market-based greenhouse gas emissions. For definition, see page 56.
The Weir Group PLC Annual Report and Financial Statements 2024
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Chief Executive Officer’s strategic review
continued
Strategic Report
Governance
Financial Statements
Additional Information
Market review
The long-term trends in our markets
are highly attractive.
The world needs to significantly increase the production of
critical metals and minerals to power the global energy
transition. In parallel, our customers must adopt new
technologies to extract and process those natural resources
in a more sustainable way. Together, these trends represent
a compelling growth opportunity for Weir.
Outlook for our core commodities
There are strong end market growth drivers across Weir’s
main commodity exposures of copper, iron ore and gold. Our
exposures are set out in the pie chart on page 8.
Copper is a key component of many technologies,
particularly those that will enable electrification and
decarbonisation. An electric vehicle, for example, requires
around four times the amount of copper as a conventional
car Note 1 . More copper will also be needed as the world transitions
to decarbonised infrastructure applications and electrical
grid expansion.
As such, the outlook for copper demand continues to be
strong and is accelerating. Estimates suggest that copper
supply will need to more than double in the decades ahead1.
The outlook for core iron ore demand is also solid, driven
by population demographics and the increasing shift
towards the more sustainable production of steel (so called
blue or green steel, manufactured using hydrogen). Green
steel production uses higher grade iron ore, which requires
more processing. It is found in areas such as Brazil and the
Pilbara in Western Australia – locations where Weir has a
strong presence.
Gold continues to be an investment safe-haven, particularly
at times of geopolitical uncertainty, and central banks
continue to grow their reserves. Long-term demand is also
underpinned by GDP growth and increasing wealth,
particularly in developing economies.
Drivers of demand are also strong for other commodities,
such as high grade mineral sands used in the growing
technology sector, and phosphate and potash used in the
fertilisers that will be needed to support the growing global
population. The demand outlook for battery metals, namely
lithium, nickel and cobalt, is fast-increasing, as outlined in the
section below.
With a global shift away from fossil fuels, new project activity
and capital expenditure in the oil sands market is expected to
reduce. During the transition, we expect to continue to
support customers' production, providing high quality spare
parts that enable them to operate existing assets more
efficiently and sustainably.
For Weir: Strong demand for our core commodities will
incentivise our customers to maximise ore production that, in
turn, will drive strong demand for our differentiated mining
technology solutions and our aftermarket spares
and expendables.
Climate change action is accelerating demand for
key electrification metals
2024 was the warmest year on record and saw a number
of extreme weather events around the world. The most
recent COP29 summit, held against a backdrop of wider
geopolitical uncertainty, reached new agreements on a new
finance goal and carbon markets. 78% of the world’s GDP and
84% of the global population are covered by a net zero
emissions target Note 2.
According to the Intergovernmental Panel on Climate
Change (IPCC)3, to limit warming to 1.5°C above
pre-industrial levels, global greenhouse gas emissions will
need to decline by around 45% from 2010 levels by 2030 and
continue to net zero by 2050.
Therefore, the world needs to move even more quickly to
take action to implement, at scale, technologies to
decarbonise and electrify energy supply and transportation.
Doing so will create significant demand for metals, such as
copper (as described earlier), lithium, nickel and cobalt, that
are essential in these technologies.
Key trends
Copper
>100%
increase in production required by 2050 Note 4
Iron
c.12x
anticipated growth in demand for green steel by 2030 Note 5
Customer commitments
92%
of Weir's significant customers committed to reduction
of scope 1&2 emissions by 2030 Note 6
c. $800bn Investment required between now
and 2040 to achieve net zero by 20504
⬛Copper
⬛Nickel
⬛Lithium
⬛Rare earth metals
⬛Cobalt
The Weir Group PLC Annual Report and Financial Statements 2024
15
c.$800bn
Note 1 https://internationalcopper.org/resource/copper-the-material-of-choice-for-
vehicle-manufacturers/
Note 2 https://zerotracker.net/
Note 3 www.ipcc.ch/sr15/
Note 4 IEA, Global Critical Minerals Outlook 2024.
Note 5 McKinsey, The Resilience of Steel.
Note 6 Based on reviewing a selection of 12 of Weir's most significant customers.
Strategic Report
Governance
Financial Statements
Additional Information
Despite short-term volatility, there is strong long-term
projected demand for battery electrification metals, such
as lithium, cobalt and nickel to support a predicted six-fold
growth in battery electric passenger car production
this decade Note 7 .
Lithium demand, for example, is forecast to increase almost
nine-fold to 2040 Note 4 to support a shift in favour of lithium-
heavy batteries and despite recent investments to boost
nickel supply, such as in South East Asia, over two times more
supply will need to be brought on line to meet demand4.
The accelerating demand for electrification metals will
require major investment in both new mines and also in
capacity expansions, as outlined in the chart on page 15. We
continue to see some policy response from governments, in
the form of critical minerals policies4. However, more support
is needed to put permits and finance in place to deliver the
vast quantities of metals required for the energy transition.
For Weir: We have strong exposure to these ‘future facing’
commodities, with the majority of the world’s copper today
being processed using Weir technology. The significant
demand for battery and electrification metals creates a
strong tailwind for Weir in the years ahead, accelerating
growth in these parts of our business, which over time, will
make them a larger overall component of our mix. We
continue to invest in differentiated technology solutions
to help customers improve productivity and sustainability.
Declining ore grades, ore body development and
ore extraction
Miners are looking to increase production through expansion
of existing assets and new projects. However, accessing
higher quality deposits is getting harder. For example, the
average grade of copper concentrate in Chile has declined
30% since 20054. Evidence suggests that there are new
exploitable reserves for key commodities, but they are in
environments that are deeper and more difficult to mine.
Consequently, greater quantities of rock must be excavated
and processed to extract the same quantity of ore – using
energy and water, and causing increased wear of processing
equipment. The result of this decline in ore grades is more
waste rock per unit of ore and increased CO subscript 2 emissions.
For Weir: Increased wear of processing equipment drives
demand for our aftermarket spares and expendables. In
addition, lower grade ore processing supports the use of our
sustainable solutions to deliver efficiency and environmental
benefits. Alongside these, we are also developing
transformative AI-based ore sorting and characterisation
technologies with the potential to enable miners to select
and then move only ore-containing rocks.
More sustainable mining needed
In parallel with production growth, it is essential that the
mining industry adopts more sustainable extraction and
processing techniques in order to secure the social licence
it needs to meet anticipated demand.
Mining processes today use vast amounts of energy and
water, and create a lot of waste. So for the industry to have
the environmental and social licence to operate and secure
permits for new mines, it needs to rapidly innovate and
adopt new technologies.
In extraction, typical ore grades in a new copper mine are
around 1%8, so 99% of rock that is moved and processed
ends up as waste, consuming huge amounts of energy
and water. In comminution, the process of making small
particles out of large rocks, the mining industry consumes
a staggering 3% of global electricity each year9.
During processing in the mill circuit, the grading and
classification of material are traditionally very imprecise
processes that lack dynamic control. As a result, there is a
high degree of recirculating load, yields are held back and
cost per tonne elevated, with scope for improvement. The
tailings produced in mining is the biggest waste stream on
the planet. Close to 13 billion cubic metres of tailings are
produced each year Note 10 and must be transported, processed
and stored.
For Weir: There is a significant opportunity to help the mining
industry scale up and clean up to deliver the resources
needed to stem global warming. We are engineering new
technologies, enabled by intelligent automation, and working
closely with customers to provide solutions that support the
industry's reputation and accelerate sustainable mining.
Note 7 McKinsey, Toward security in sustainable battery raw material supply.
Note 8 https://investingnews.com/daily/resource-investing/base-metals-investing/
copper-investing/types-copper-deposits-world/
Note 9 www.ceecthefuture.org/resources/mining-energy-consumption-2021
Note 10 The Future of Tailings report, https://promo.mining-journal.com/future-of-
tailings-2023/
2024 market review
Ore production trends in mining continued to be
strong, despite complexities in the macroeconomic
and geopolitical environment.
Market prices for our main commodity exposures
of copper, gold and iron ore were well above
customers' cost to produce, although nickel and
lithium producers remain under pressure from lower
commodity prices.
Throughout the year, activity levels in mining
markets were high as customers position
themselves to address the long-term structural
demand for critical minerals. Encouragingly, several
Tier 1 miners announced plans for additional capex.
Permitting remains a challenge in certain
geographies. However, governments around the
world have signalled their support for accelerating
long delayed applications, and bright spots are
emerging as customers renew investment in future
growth through new greenfield projects.
These constructive changes in mine permitting and
greenfield capital expenditure globally drove
demand for our larger original equipment solutions
through the second half of the year.
Demand for our aftermarket products was
particularly strong in the Middle East and Africa
where we continue to grow market share. We saw an
elevated level of mine-specific headwinds in the first
half, such as shutdowns in Panama and Australia, but
these trends were more than offset in the second
half as the commissioning of new installed base
accelerated. Our order growth was strongest in
future-facing minerals such as copper and
phosphate, while year-on-year demand decreased
in both coal and the oil sands.
The Weir Group PLC Annual Report and Financial Statements 2024
16
Market review
continued
Strategic Report
Governance
Financial Statements
Additional Information
Business model
Our differentiated aftermarket-focused business model drives sustainable
compounding growth.
Our purpose
To enable the sustainable and efficient delivery of the natural
resources essential to create a better future for the world.
Our strengths
Core expertise in materials, engineering and data
Our expert teams create smart, efficient and sustainable
solutions for our customers' biggest challenges.
Our unique culture
We have an inspiring purpose and focus on making Weir
the place where people can do the best work of their lives.
Integrated manufacturing and service facilities
Our network means we provide customers with certainty
of supply and ensures we keep our IP in-house.
Excellent customer focus
Our customer service network is second to none. Our people
are on the ground, where and when our customers need
them, providing a rapid and reliable response, and giving
Weir a unique insight into their challenges.
World-leading brands
Our products and solutions are synonymous with both
productivity and sustainability. We invest in technology
to maintain our leading positions.
Financial strength
Through continued careful management, we are focused
on maintaining a strong and resilient balance sheet to
support future growth.
Supported by our values and our risk
management framework
How we use our strengths to create value
Highly engineered equipment
Our solutions and digital technologies solve our customers'
toughest challenges with lowest total cost of ownership.
Mission-critical solutions
Customers rely on Weir's solutions to avoid costly unplanned
downtime and lower their environmental footprint, so we are
a vital technology partner.
Comprehensive global support
No one serves more mines than Weir. We provide customers
with the technology they need quickly and efficiently.
Intensive aftermarket care
Our solutions are used in highly abrasive applications and so
equipment parts wear out. That generates recurring demand
for aftermarket spares and expendables.
The value we deliver
For the planet and society
Sustainable, efficient delivery of natural resources
essential to create a better future for the world.
27%
reduction in scope 1&2 CO subscript 2 e
emissions since 2019
For our customers
Market-leading technologies and excellent
service that helps them optimise productivity
and sustainability.
£2.5bn orders in 2024
For our people and communities
A rewarding place where people are empowered
to do the best work of their lives and support
local communities.
£623m
paid in employee
benefits in 2024
For governments
Support for economic growth and development in
the countries in which Weir operates.
£111m
paid in corporate
income tax in 2024
For our shareholders
An opportunity to invest in a low carbon future
through the essential technology driving the global
mining industry’s transition to net zero.
£100m
total dividends
paid in 2024
The Weir Group PLC Annual Report and Financial Statements 2024
17
Strategic Report
Governance
Financial Statements
Additional Information
We differentiate through technology and
customer intimacy
In mining, downtime is the enemy of our customers and if
unplanned, can cost them millions of dollars per day in lost
production. Mining processes are highly abrasive, so
equipment inevitably wears out, sometimes within a matter
of weeks.
Our customers therefore look for a premium solution that is
the most reliable and has the longest wear life, thereby
minimising downtime – a solution that delivers the lowest
total cost of ownership. This covers both original equipment
and the aftermarket spares and expendables they require.
Sustainability continues to rise up the agenda at our
customers as they seek to maintain social licence to operate.
In parallel to total cost of ownership, they are increasingly
looking for solutions that also help reduce their
environmental footprint.
Weir’s mining technology solutions address both productivity
and sustainability. We provide both original equipment and
aftermarket products. We differentiate with:
– World class engineering, innovation and manufacturing
capability that delivers highly engineered original
equipment and aftermarket products that have the
longest wear life and that also address customers’
sustainability challenges;
– being deeply embedded within our customers’
operations and supply chains with local day-to-day
relationships increasingly complemented by strategic
global collaboration; and
– intellectual property, leading brands, customer focus and
vertically integrated manufacturing base. This means we
benefit from a large captive installed base of trusted
mission-critical equipment.
These differentiation factors create a significant barrier
to entry.
Our business model drives compounding growth
Sales of original equipment typically account for around
20% of our annual total revenue. Every sale of original
equipment grows our installed base and generates a highly
valuable and visible annuity-like aftermarket revenue stream
on a recurring basis, as we provide spare parts to the
equipment for the life of the mine.
Today, approximately 80% of our total revenue comes from
aftermarket. It is driven by non-discretionary spend on spare
parts that are essential to keep mines running. As a result, our
growth is predictable and sustainable.
We have a large and growing installed base of original
equipment around the world. It is a huge asset for Weir,
fuelling significant aftermarket revenue over the long term.
We protect it with our ‘boots on the ground’ comprehensive
global service approach.
We are also focused on growing our installed base of OE
throughout the mining cycle. So even when large projects are
slower to convert, we continue to grow the base by providing
debottlenecking and small brownfield expansion solutions to
existing mines.
Capture rate
>90%
of aftermarket from original equipment sales
Customers recognise that Weir provides premium solutions
and our leading support and service. Consequently, we
capture more than 90% of aftermarket from our original
equipment sales. This high capture rate supports our
aftermarket-focused business model because each piece of
original equipment sold generates, on average across the
business, 30% of its original value in aftermarket spares
revenue every year.
We are highly resilient through the cycle
Minerals Division
7%
compound growth in aftermarket revenue
since 2010
The combination of installed base expansion, ore production
growth, the effects of declining ore grades and pricing drives
aftermarket revenue and enables us to consistently deliver
mid to high single digit through-cycle growth.
This predictable and sustainable aftermarket growth is
demonstrated by the 7% compound growth in aftermarket
revenue in our Minerals Division since 2010.
Throughout various market cycles, including the global
mining downturn where capital expenditure fell significantly
and commodity prices fell by 50%, our aftermarket business
has remained highly resilient, continuing to grow and
demonstrating its inelasticity to both capital expenditure and
commodity price cycles.
This embedded resilience is a significant differentiator for
Weir and our aftermarket-focused model, through the cycle,
is proven to be among the most resilient in our sector.
The Weir Group PLC Annual Report and Financial Statements 2024
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Business model
continued
•
19
The Weir Group PLC Annual Report and Financial Statements 2024
Strategic Report
Governance
Financial Statements
Additional Information
Our stakeholders
We strive to deliver excellent outcomes
for all our stakeholders.
Achieving that means we focus on building and maintaining
positive relationships with the people, communities and
organisations that have an interest in our business and may
be impacted by the decisions we take.
These stakeholders, as outlined below, are at the heart of our
We are Weir strategic framework that sets out our purpose,
business model, strategic priorities, values and culture.
Employees
Our people are a critical driver of our success and their safety
and wellbeing is our top priority. We want Weir to be a place
where they feel included and where they can do the best
work of their lives. As such, we place huge emphasis on
listening to, and acting on their feedback, and on building
the right culture where people can thrive.
What matters to them
Our people want to work in a safe and inclusive environment
where their physical and mental health is prioritised. They
want to feel that their voice is heard and that everyone is
treated fairly and equitably. People are looking to work for
a company that nurtures their individual success, provides
development opportunities and where they can contribute
to broader societal and environmental goals. Being paid and
rewarded equitably for their work is also important.
2024 engagement activities and outcomes
In June, we launched our new brand and sustainability
strategy with a global all-employee town hall, drop-in ‘lunch
and learn' sessions and leader-led workshops to explain and
connect people to our brand. Large numbers of colleagues
joined the sessions and are now driving activation and
embedding. Colleagues took the opportunity to nominate
their peers and teams for our new Weir values awards
programme. More than 230 entries were received and
winners will be announced at an event in April 2025.
During the year, we formed a new steering committee to
drive our inclusion, diversity and equity (ID&E) agenda.
We continued to engage colleagues on safety and wellbeing,
including in our Zero Harm Behaviours Framework, to support
a broader safety culture. In March 2024, colleagues
participated in the annual Weir safety day with activities and
events held at sites globally. Our approach to employee
wellbeing and mental health was also demonstrated in 2024
when we were recognised as the top improver for mental
health in an assessment of the UK’s largest companies in the
CCLA corporate mental health benchmark. Case studies
showing our approach in action can be found on our website
at global.weir/wellbeing-stories.
Employees continued to receive monthly 'CEO Briefings' from
Jon Stanton covering strategy and business progress and
participated in activities led by our affinity groups. At a
divisional and functional level, briefings from leadership were
a regular feature throughout the year and locally, employees
joined site-level meetings and toolbox talks.
Colleagues' learning and development were supported with
the launch of several new programmes, including a global
mentoring framework that we developed following positive
feedback from the reverse mentoring pilot in 2023.
We continued to encourage employee involvement in our
performance through Sharebuilder, our all-employee share
plan that grants eligible employees shares in Weir at no cost.
We ran our regular all-employee engagement survey and
shared the results and priorities for action on a global and
local level to ensure that colleagues understand the priorities
for improvement both across Weir and at their location.
Read more about the Board's approach to employee
engagement and activities led by the designated
Non-Executive Director in the year on pages 84 to 87
Customers
Customers are partners in our success, driving our growth
and informing our technology and sustainability priorities. We
want to be an innovation partner for sustainable mining, with
strong relationships at multiple levels at our customers. By
embedding our sales and engineering teams close to them
on mines across the globe, we develop effective working
relationships and gain insights to inform our strategy.
What matters to them
Our customers want a supplier that understands and
responds to their challenges with reliable high performance
solutions that support their safety and productivity goals and
that provides them with the lowest total cost of ownership.
They also turn to Weir as a strategic innovation partner for
sustainable mining to help support their social licence to
operate and their sustainability ambitions. Our proximity to
customers is crucial as downtime and breakdowns can be
critical. They also rely on our technical expertise and deep
industry understanding as we partner with them to develop
and commercialise solutions for their biggest challenges.
2024 engagement activities and outcomes
Colleagues continued to support customers across the globe
with their productivity and sustainability challenges. This
included day-to-day interactions by our local teams with
mine-site customers as well as meetings and discussions
involving leadership at Weir and our customers that deepen
our strategic relationships. We’ve worked with customers on
field trials of our latest solutions and innovations, and
continued to work with strategic partners, such as Eriez, to
advance our customer value proposition.
To remain close to our customers, we develop our network
of facilities. We opened a new service centre in Port Hedland,
Australia to support customers and their operations across
the Pilbara region. We also expanded our global foundry
network with a new facility in Xuzhou, China. The foundry
manufactures ESCO® ground engaging tools (GET) and gives
us additional manufacturing flexibility for GET to serve our
global customers.
Using feedback from our engagements with customers,
in June we introduced a new brand strategy focused on
supporting their short and long-term productivity and
sustainability goals.
Shareholders
Our shares are listed on the London Stock Exchange and we
raise debt from banks and through listed bonds. Our equity
and bonds are owned by investors in the UK, US, Europe and
other regions and we engage with, and provide information
to, them through our investor relations programmes and
communications.
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Our stakeholders
continued
Strategic Report
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Financial Statements
Additional Information
What matters to them
Our shareholders are concerned with our financial and
operational performance, our business strategy and total
shareholder returns. They want to understand our business
and how we create value. Our approach to sustainability
and our environmental, social and governance (ESG)
performance are also important.
2024 engagement activities and outcomes
We engaged with more than 60% of our shareholder base
and a number of prospective investors in 2024. Meetings took
place with investors in the UK, North America, Australia and
Europe and covered a wide range of topics including
strategy, financial performance, our Performance Excellence
transformation programme, sustainability and
remuneration-related matters. Additionally, a number
of investors also attended the MINExpo industry event
in September.
Suppliers
Our global network of suppliers is critical in supporting robust
supply chains that allow us to serve our customers and
operate efficiently.
What matters to them
Our suppliers want to understand how to support us through
delivering reliable, high quality and competitively priced
products and services, and engage with us on innovations
and technology developments. Effective collaboration, good
communication and transparent partnerships are important
to them, and they are concerned with sustainability,
compliance and ethical practices.
2024 engagement activities and outcomes
We worked positively and collaboratively (divisionally
and functionally) on tactical matters such as quality and
improvements to suppliers' manufacturing processes.
We also engaged on health and safety, modern slavery laws
and anti-bribery and corruption laws. We engaged through
technology and R&D collaborations on topics relevant to our
longer-term technology and sustainability ambitions. With
the roll-out of Weir Business Services this year, we also
engaged with suppliers of our HR, Finance and IS&T global
business services. Engagements typically take the form of
virtual and face to face meetings.
Communities and environment
Why is this stakeholder group important to us?
Contributing to our local communities is core to our
sustainable business practices. Our communities serve as
integral partners, providing a skilled workforce and fostering
innovation. We build relationships through community
engagement to promote long-term resilience and growth
both for Weir and the communities we operate in.
What matters to them
Our communities want us to provide safe and attractive
employment opportunities together with investment and
support for local initiatives and education. They expect us to
demonstrate strong social responsibility and deliver on our
sustainability and environmental goals.
2024 engagement activities and outcomes
We believe that our colleagues best understand the needs
of their communities at a local level and engagement in 2024
has continued to be led by our sites across the globe. There
have been many examples of outreach initiatives,
educational seminars and support, including financial
support, for important areas such as safety, health, diversity
and inclusion, and sustainability. We provided employment
to c.12,000 people in over 50 countries worldwide, including
through our apprenticeship programmes.
Read more about our community engagement activities
and outcomes on our website: global.weir/communities
Governments and NGOs
We develop relationships with governments and
non-governmental organisations (NGOs) to ensure we
stay abreast of developments in regulatory compliance
and responsible corporate practice. It also enables us to
contribute to the debate on industry-specific topics relating
to sustainable mining. At a local level, we engage on
operating frameworks, environmental standards, worker
safety and ethical conduct.
What matters to them
The role of mining in the energy transition and how
technology enables that, together with mining’s social licence
to operate, are a major focus of governments and NGOs at a
global and local level.
In parallel, understanding the employment opportunities
we provide and the future skills we need are also important.
They want to know we are an ethical and responsible
business and a good employer.
2024 engagement activities and outcomes
We engaged with governments, key NGOs, trade bodies and
research organisations throughout the year on topics
including safety, manufacturing and sustainable mining.
Through our partnership with CEEC International, we are
participating in its recently launched Global Water Initiative,
a groundbreaking collaboration to drive action to ensure
responsible water use within the industry.
We have continued to engage with organisations on
education and skills, including with science, technology,
engineering and maths (STEM) skills, to promote STEM
education and opportunities, particularly for women and
other under-represented groups. Our Young Weir-Wise
Discovering Engineering programme, delivered in
partnership with the University of Strathclyde, UK, welcomed
300 girls from schools across Scotland. An additional one-day
virtual event was attended by a further 100 pupils, making
the programme even more accessible.
Section 172 statement
In accordance with the requirements of Section 172
of the UK Companies Act 2006 (the Act), the Directors
consider that, during the financial year ended
31 December 2024, they have acted in a way that they
consider, in good faith, would most likely promote the
success of the Company for the benefit of its
members as a whole, having regard to the likely
consequences of any decision in the long term and
the broader interests of other stakeholders, as
required by the Act.
For more information in support of this statement, see
‘Board activities and principal decisions made in 2024’
on pages 81 to 82 and 'Wider stakeholder
engagement by the Board' on page 87.
The Weir Group PLC Annual Report and Financial Statements 2024
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The Weir Group PLC Annual Report and Financial Statements 2024
Strategic Report
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Financial Statements
Additional Information
We are Weir strategy
Our strategic framework
Our We are Weir strategy for sustainable mining
sets out our ambition for how we deliver
excellent outcomes for all our stakeholders.
It centres around four strategic pillars – People,
Customer, Technology and Performance – and has
our purpose and our sustainability strategy at its core.
It also sets out our values and defines our culture,
guiding how we behave and how we work.
It incorporates our business model and, taken
together, this is how we deliver excellent outcomes
for our stakeholders.
Read more on pages 23 to 34
Our business model
We deliver…
Our aftermarket-focused model delivers sustainable
compounding growth.
Read more on pages 17 to 18
Our commitments
We commit to…
Growth
Outgrowing our markets
Margins
Expanding our margins
Returns
Converting earnings into cash and returns
Resilience
Providing resilience and predictability
Sustainability
Delivering for people and planet
Read more on page 7
Our values
We believe in...
– Thinking safety first
– Delighting your
customer
– Respecting each other
– Doing the right thing
– Aiming high
Our culture
We work this way...
– We always seek to improve
and innovate
– We care for, challenge and
encourage each other
– We’re passionately,
authentically ourselves
– We work together to
enhance our global
communities
– We speak up and take
ownership for our shared
success
– We can’t wait
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Sustainability at the core
Sustainability is at the core of our We are Weir strategy. We are leading by example to deliver sustainable Weir and working in
partnership with customers to accelerate sustainable mining.
Deliver sustainable Weir
Deliver sustainable Weir focuses internally on
our people, operations and ways of working.
Champion zero harm
– Champion a zero harm workplace where
everyone goes home safe and healthy
– Build a world class safety culture
– Prioritise employee health and wellbeing
– Safeguard the environment in and around
our operations
Read more on pages 32 to 33
Nurture our culture
– Nurture our culture to inspire our people to
do the best work of their lives
– Maintain strong engagement
– Grow and develop our talent
– Build a truly inclusive, diverse and
equitable culture
Read more on pages 32 to 33
Reduce our footprint
– Actively reduce our footprint to minimise
our impact on the environment
– Reduce energy and CO subscript 2 e in our
operations
– Rethink, reduce, reuse and recycle to
minimise our waste
– Responsibly manage water, prioritising
water stressed operating locations
Read more on pages 46 to 58
Strengthen our foundations
– Strengthen our foundations to meet
expectations of all responsible businesses
– Employ responsible business and supply
chain practices
– Create high quality sustainability data,
systems and assurance
– Transparently report ESG strategy, goals
and progress
Read more on page 57
In support of UN Sustainable
Development Goals (SDGs)
Accelerate sustainable mining
Accelerate sustainable mining focuses
externally on solving our customers’ biggest
sustainability challenges
Use less energy
– Innovate solutions to use less energy,
helping customers reduce both costs and
CO subscript 2 e emissions
Read more on pages 26 to 27
Use water wisely
– Tailor customer solutions to use water
wisely by reducing consumption,
increasing recovery and introducing
water-free process steps
Read more on pages 26 to 27
Create less waste
– Create less waste by helping customers
manage tailings more safely and
sustainably, and considering the circularity
of our product
Read more on pages 26 to 27
Champion zero harm
– Champion zero harm is just as
important on our customers’ sites,
both in the safety-first behaviours
and actions of our people and our
product design and stewardship
Read more on pages 32 to 33
In support of UN Sustainable
Development Goals (SDGs)
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Additional Information
Strategic progress
Customer
We will be the most admired business in our sector.
Working in partnership, we deliver distinctive solutions
and compelling value.
Being close to our customers - in terms of both
physical proximity and our understanding of their
challenges - is a significant strength for Weir. No
one serves more mines than Weir and we pride
ourselves on being no more than 200km away
from any major mine in the world. Our voice-of-
customer-led strategic growth initiatives ensure
we have the best performing products and
sustainable solutions in the market, underpinning
our commitment to outgrow our markets
through the cycle.
A strategic partner in mining technology solutions
The global mining industry that we serve is in a period of
change – it needs to scale up and clean up to deliver more of
the critical metals needed for the energy transition, and it
needs to produce those metals in a more sustainable way.
This presents a compelling growth opportunity for Weir –
providing the end-to-end solutions that will accelerate the
shift to more sustainable mining. Our new brand strategy –
mining technology for a sustainable future – is designed to
ensure that our customers look to us to help them achieve
their ambitions as the world transitions to a low carbon
future. Launched in June 2024, the brand strategy positions
us to lead in the new mining era.
2024 performance
Outgrow our markets through voice-of-customer-
led initiatives
We have made good progress across our strategic growth
initiatives, supporting customers with solutions for their
challenges in each process stage – extraction, comminution,
processing and tailings.
At the extraction stage, we maintained leadership in our core
ESCO® branded ground engaging tools (GET) technology,
winning 118 net major diggers in the year. In September,
we delivered the full commercial launch of ESCO® NexsysTM,
our next generation lip and GET system and secured several
orders in the final quarter of the year.
We gained further traction with our innovative end-to-end
integrated solutions for comminution, processing and
tailings, demonstrating that customers are increasingly
looking for mining technology solutions that address both
productivity and sustainability challenges. Successes during
the year included two significant new orders for major
greenfield projects. A £53m order to supply industry-leading
fine grinding solutions to Barrick Gold's Reko Diq copper-gold
project in Pakistan was closely followed by a £25m order from
OCP Group for phosphate projects in Morocco. Our strategic
alliances with other mining technology providers, such as
Eriez, are developing well and we are leveraging our
combined strengths to deliver industry-leading solutions
to customers, such as those described above.
Strategic initiatives
– Outgrow our markets through voice-of-customer-
led initiatives
– Solve our customers' biggest smart, efficient and
sustainable challenges
– Show leadership in our industries' pathway to net zero
Link to sustainability strategy
Use less energy
Use water wisely
Create less waste
Customer KPIs
Revenue in 2024
£2.5bn
(2023: £2.5bn)
Read more on pages 35 to 36
Related principal risks
Read more on pages 59 to 70
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Strategic progress
Customer continued
Strategic Report
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Financial Statements
Additional Information
At a product level, we achieved further market share gains
in large WARMAN® pumps, converting over 90% of our
competitive field trials, and saw growth in demand across our
range of aftermarket products. The phasing of large original
equipment shipments from Q4 2024 into Q1 2025 held back
year-on-year revenue growth in 2024.
Solve our customers’ biggest smart, efficient and
sustainable challenges
Helping our customers scale up and clean up is more
relevant than ever and in putting our sustainability strategy at
the heart of our We are Weir business strategy this year, we
have amplified efforts that accelerate sustainable mining for
our customers. We have made good progress towards our
remuneration-linked sustainability goals and KPIs centred
around helping customers use less energy, use water wisely
and create less waste.
Use less energy
Following completion of our pioneering study on avoided
emissions that we launched at COP28 at the end of 2023,
we continued to build out our work on avoided emissions to
unlock the significant opportunities to reduce energy use and
emissions in minerals processing. Our 2023 study1 focused
on the avoided emissions impact of our redefined solutions
for the comminution process, which can reduce energy use
by 40% and avoid up to 50% CO subscript 2 e at 20% lower operating
costs compared to conventional technology. In 2024, we
broadened the scope of our assessment to include the
GEHO® pump range. Our sustainability KPI of avoided
emissions through customers' use of energy efficient
solutions is to increase avoided emissions against our 2023
baseline. In 2024, we increased overall avoided emissions by
171% to 442,894 t CO subscript 2 e (2023: 163,564 t CO subscript 2 e) including an
increased contribution from energy efficient comminution
solutions as well as 12,786 t CO subscript 2 e from the addition of
GEHO® pumps. Read more on page 47.
Use water wisely, create less waste
Water is fundamental to the way in which minerals are
processed but in some parts of the world there is too little
and in others there is too much. Similarly, safe storage of
tailings waste presents a major challenge to the sector
and today, over 90% of waste rock ends up in the tailings
waste stream.
As such, water use and waste are among our customers'
biggest challenges and both are a priority topic in our own
technology strategy and sustainability materiality matrix.
We already optimise our products according to water
availability at our customers’ operations and are developing
more transformational solutions. To support this, we are
defining specific milestones for water optimisation. This has
been informed by our involvement in the Global Water
Initiative, a collaboration with CEEC International where we are
making good progress in outlining actions to develop
optimised flowsheets for water-related challenges in mining.
Our transformational flowsheets for tailings management
help miners reduce, rethink and repurpose their tailings and
during the year, we have defined specific milestones that
provide a baseline for us to begin to measure customer
waste impact in 2025.
Supporting customers to improve health and safety
Our zero harm culture is just as important on our customers'
sites, so we embed product stewardship within our SHE
Management System to ensure we take a cohesive and
consistent approach to support customer health and safety.
Show leadership in our industry's pathway to net zero
We completed research to inform a new brand strategy
using input from customers, our senior managers and our
employees. The new brand strategy, launched in June 2024,
supports our ambition to lead in the industry and helps boost
recognition and traction of our end-to-end technologies. We
are uniting across all our global businesses under a single
external facing brand – Weir – underpinned by our signature
product brands.
As we build our refreshed brand, we have reinvigorated our
engagement with customers and other stakeholders on
sustainability, innovative integrated solutions and intelligent
digital automation in mining. We will expand this work in 2025
to support our strategic goals.
Developments in early 2025
In January 2025, we agreed to form a new joint venture with
Olayan Saudi Holding Company to provide mining
technology solutions in Saudi Arabia. This new partnership will
leverage the combined strengths of both organisations to
serve the Kingdom's rapidly expanding mining market.
Link to remuneration -
2024 scorecard
Strategic measures
Execute our strategic growth initiatives
Capture value from new strategic alliances
Position Weir as a mining technology
solutions partner
ESG measures
Customer avoided emissions
Customer water optimisation
Customer waste impact
Read more on pages 133 to 136
Rating key
Outcome achieved meets or exceeds on-target
Outcome achieved is between threshold and on-target
Outcome achieved is below threshold
2025 bonus measures
Strategic measures
Execute our strategic growth initiatives
Position Weir as a mining technology solutions partner
Refresh key account strategy
ESG measures
Customer avoided emissions
Customer water and waste impact
Read more on page 120
Note 1. global.weir/newsroom/global-news/new-study-by-weir-highlights-
big-energy-saving-opportunity-in-mining/
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Additional Information
Strategy in action
Customer case study
Transforming
mining processes
Mining needs to scale up and clean up to deliver the metals
required for the energy transition. By redefining key mining
processes, we are helping customers boost productivity and
sustainability – a win-win for them and for the planet.
This is not the mine of the future.
Find out more about how Weir is
transforming mining processes today.
Find out more:
global.weir/transforming-
flowsheets
Weir has channelled its engineering
expertise to tackle one of the most energy
hungry processes in mining – a process
called comminution that is used to crush
rocks into tiny particles. It is estimated that
comminution in mining consumes up to 3%
of primary energy globally each year1.
Weir has partnered with customers and
other innovators to develop a redefined
process that can cut energy consumption in
comminution by up to 40% and avoid up to
50% CO subscript 2 e emissions per tonne of ore versus
conventional technology. Importantly, there
is no trade off elsewhere as the redefined
process uses less water too.
These are big numbers. Weir has validated
the potential impact of its redefined process,
studying the energy savings and avoided
emissions it can deliver2.
This is not a solution for the mine of the
future, it’s for the mine of today. The process
is already operational at Iron Bridge,
Fortescue Metals Group’s (FMG’s) large iron
ore mine in Australia. Most recently, it has
also been selected for Barrick’s Reko Diq tier
one copper-gold project in Pakistan – a
£53m contract win for Weir in 2024. The Reko
Diq project is located in one of the hardest to
reach locations in the world, making energy
a premium on site. The project is another
real-world reference for our technology and
illustrates its versatility across geologies.
This redefined process demonstrates the
substantial opportunity for the global mining
industry to help meet demand for critical
metals and make a material contribution to
CO subscript 2 emissions reduction, all in one.
>100%
increase in production required by 2050 Note 3
up to 3%
global primary energy consumed
in comminution Note 3
up to 40%
reduction in energy use Note 4
up to 50%
of CO subscript 2 e emissions avoided Note 4
20%
lower operating costs Note 4
Note 1. https://www.ceecthefuture.org/resources/mining-
energy-consumption-2021
Note 2. global.weir/newsroom/global-news/new-study-by-
weir-highlights-big-energy-saving-opportunity-in-
mining/
Note 3. IEA, Global Critical Minerals Outlook 2024.
Note 4. Versus conventional technology.
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Additional Information
Strategic progress
Technology
We shape the next generation of smart, efficient and
sustainable solutions with cutting-edge science and our
tradition of innovation.
Technology leadership lies at the heart of
our success and we are investing in the
development and commercialisation of
transformative new sustainable technologies
that will drive future growth.
Technology strategy drives growth
Weir’s mining technology operates in some of the harshest
conditions on earth and where downtime can cost our
customers tens of millions of dollars a day. Our core value
proposition is lowest total cost of ownership or TCO. Our
products operate more efficiently, so use less energy and
water, and last longer than alternative solutions. As a result,
spare parts need to be replaced less frequently.
These characteristics stem from our world class engineering
and materials science, manufacturing know-how and deep
customer insight, increasingly enabled by intelligent
automation. We have some of the world’s leading
metallurgists, materials scientists, data scientists and foundry
experts in our team, and our exotic alloys and specific
foundry processes give our products their extended,
best-in-class wear life.
Higher performing, longer lasting products bring inherent
sustainability benefits too. Embodied carbon emissions are
lower because less metal is being poured, less waste is being
created and less carbon is expended in supply chains.
In addition, given the critical role of mining as an enabler in
the energy transition and the industry’s imperative to scale
up and clean up, we are investing in R&D to deliver innovative
transformational technology solutions aligned to our
customers’ biggest priorities that are to:
– move less rock;
– use less energy;
– use water wisely;
– create less waste; and
– boost with digital.
These themes are the framework for our technology strategy
and we use them to prioritise and allocate our engineering
and R&D resources to address our customers' needs.
With clear customer priorities and a compelling mandate
to make mining more sustainable, we continue to target
investment in R&D of 2% of revenue, differentiating ourselves
further and prioritising spend based on voice-of-customer
feedback and projects. These include:
– protecting our core business – through investments in
materials science and core engineering capabilities; and
– developing new products and solutions that will address
our customers' biggest sustainability challenges.
Strategic initiatives
– Invest in innovating transformational solutions
– Digitally enable everything we do
– Create new business and business models from
data and insights
Link to sustainability strategy
Use less energy
Use water wisely
Create less waste
Technology KPIs
R&D investment as a percentage of
Group revenues in 2024
1.9%
(2023: 1.8%)
Read more on pages 35 to 36
Related principal risks
Read more on pages 59 to 70
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Strategic progress
Technology continued
•
Strategic Report
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Additional Information
In parallel, we are also adding new capabilities in areas such
as digital, data management and AI. Furthermore, strategic
alliances and acquisitions have further accelerated our
organic strategy and we continue to manage a pipeline
of inorganic opportunities.
Our R&D strategy is very clear. We will continue to invest to
protect our core value proposition, while increasing spend
to address our customers' biggest challenges and drive our
future growth.
Transformative solutions deliver
compounding benefits
Many of our current growth initiatives are supported by new
innovations that already align to one or more of the key
customer themes in our technology strategy. Our range
of more nascent technologies has the potential to deliver
further growth and is similarly aligned.
However, the most exciting opportunity for Weir and our
customers comes from integrating proven technologies in
innovative new ways. By packaging technologies together,
right across the mine, we can create solutions that will deliver
compounding benefits – driving productivity up, and
environmental footprint down. Our digital insights ensure
processes are optimised, which together with our sustainable
hardware solutions, will significantly reduce energy and water
consumption, and create less waste. These transformative
integrated solutions are set to be key growth drivers for
Weir in the years ahead and will further expand our
technology leadership.
2024 performance
Invest in innovating transformational solutions
Through our technology strategy, we have prioritised
technology development, R&D and engineering resources in
line with our customers’ sustainability challenges – to move
less rock, use less energy, use water wisely, create less waste
and boost with digital. Revenue from new products
introduced in the last five years was lower in 2024 at £144m
(2023: £154m) reflecting product development cycles and
the phasing of new product introductions. We continued to
collaborate with customers around the world to develop
transformational flowsheets that make mining more
sustainable. R&D investment in the year of £46.5m (2023:
£46.4m) was 1.9% (2023: 1.8%) of revenues.
Digitally enable everything we do
We continued to invest in leveraging digital technologies to
improve the productivity and sustainability performance of
our customers' operations. Integration of the SentianAI
platform (acquired in November 2023) with our proprietary
Synertrex® platform, has accelerated our digital capabilities.
In September, we launched a new digital brand –
NEXT intelligent solutions - that transforms our process
optimisation services into real-time digital solutions for
our customers. Uptake increased substantially this year
and we now have installations of NEXT intelligent solutions
at over 100 mine sites.
Create new business and business models from
data and insights
Our combined ESCO® and MOTION METRICS™ offer continues
to deliver significant safety and efficiency benefits for
customers. In 2024, we have added to our global installed
base of MOTION METRICS™ systems and rolled out a new
subscription-based offering to customers.
TM
Technology improvements included a new MOTION METRICS™
payload monitoring solution, designed to optimise truck
loading and improve haulage efficiency for customers.
Field trials are proving the value of our vision-based sensing
technology, underpinned by AI, including in other
applications in the mine, such as ore sorting and
characterisation. These have the potential to significantly
improve the sustainability footprint of mining.
Link to remuneration -
2024 scorecard
Strategic measures
Revenue from new products
Digitise our current business model
Execute our Enterprise Technology
Roadmap to plan
ESG measures
Progress our priority R&D projects
Read more on pages 133 to 136
Rating key
Outcome achieved meets or exceeds on-target
Outcome achieved is between threshold and on-target
Outcome achieved is below threshold
2025 bonus measures
Strategic measures
Revenue from new products
Boost with digital
Execute our Enterprise Technology Roadmap to plan
ESG measures
Progress our priority R&D projects
Read more on page 120
TM
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Financial Statements
Additional Information
Strategy in action
Technology case study
The next evolution of ground engaging tools
is here.
Read more about our next
generation ESCO® Nexsys™
GET for excavation.
How the best 'GET's
even better
Our ESCO® GET systems are the market leader, used by
customers across the globe to tackle their toughest excavation
challenges. In 2024, we launched ESCO® Nexsys ™ – our next
generation of GET technology.
+15%
increase in tooth wear life versus our
previous system
est. 40%
reduction in overall lip maintenance time over
a five-year period (current rebuild intervals)
Our ESCO® ground engaging tools – or GET –
are at the front line in the excavation
process and as such, they must withstand
some of the harshest conditions on the mine.
Durability, safety, wear life and ease of
maintenance are the hallmarks of performance
that our customers demand and so we
continue to invest in our technology to
maintain our competitive edge.
2024 marked the culmination of five years of
work to raise the bar on GET performance.
From the lab to the foundry floor, our
engineers combined their expertise in
metallurgy, engineering design and
manufacturing to develop the new system.
In the field, engineers and technical services
representatives worked on field trials with
our customers to track system performance
and monitor feedback.
The results are impressive. In trials at an iron
ore mine in Brazil, even in the toughest
digging conditions, after six months of
continuous operation, the ESCO® Nexsys™
system delivered significant performance
advantages over the competitive systems.
The longer component life of the new
system improved machine production,
lowered maintenance costs and minimised
worker exposure to the hazards associated
with maintenance work.
The ESCO® Nexsys™ system is one of the
most advanced available for rope shovels,
delivering exceptional performance and
durability for our customers, improving
productivity, enhancing sustainability and
reducing their total cost of ownership.
TM
TM
TM
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Strategic progress
Performance
We deliver excellence for all of our stakeholders, through
strong leadership, performance culture and rigorous
standards of governance.
A performance mindset underpins our
commitment to deliver excellent outcomes for
all our stakeholders. We are taking Weir from
good to great and an even better place to work,
driving strong and sustainable financial
outcomes to support future growth, while
reducing our own environmental impact.
Transforming Weir through Performance Excellence
Performance Excellence is our business transformation
programme. Launched in 2022, it is optimising the structure
of our operations and driving synergy across our processes,
creating the platform for compounding growth in the
years ahead.
The programme centres around three key pillars. The first is
capacity optimisation where we are focusing on
opportunities to consolidate in some areas to be closer to
our customers and better service their needs. The second
pillar is lean processes, driving these across our
manufacturing operations and global value streams, and
building on our culture of continuous improvement. The third
pillar is functional transformation, bringing a consistent global
business services approach for support functions, while
leveraging foundational systems and technology.
Performance Excellence is also providing clearer, simpler
ways of working and new development opportunities for our
teams. In addition, it is helping us better serve our customers
and ensuring we realise the full potential of our business.
2024 performance
Drive clean, lean and agile operations and supply chain
Capacity optimisation and lean processes
Performance Excellence continues at pace and during the
year we recognised the benefits of capacity optimisation
projects launched at the start of the programme. These
include the consolidation of several of Minerals Division’s
manufacturing facilities in the US and APAC as well as
optimisation of its Australian service centre and Latin
American distribution footprints. The Division also continued
to embed its lean programme, Weir Integrating Network
System (WINS) to drive reductions in overall material cost and
quality improvements. ESCO Division opened its new, highly
efficient foundry in Xuzhou, China and made good progress
in improving operational and quality metrics at its North
American foundries. We also made good progress in
completing the next phase of Performance Excellence
projects, with savings to be realised over the course of 2025.
This includes the reorganisation of our Minerals Europe,
Middle East and Africa (EMEA) region, the launch of
configure-to-order platforms for our equipment, and site
consolidation of our facilities in Turkey.
Reducing our footprint
We have set ambitious emissions reduction targets for
scopes 1, 2 & 3 that were approved by the Science Based
Targets initiative (SBTi) in March 2023. We track climate
risks and opportunities annually as part of our strategic
planning process.
Strategic initiatives
– Drive clean, lean and agile operations and supply chain
– Deliver high quality, efficient back office functions
– Expand margins and deliver strong cash conversion
Link to sustainability strategy
Reduce our footprint
Strengthen our foundations
Performance KPIs
Adjusted profit before tax Note 1, Note 2
£428m
(2023: £411m)
Free operating cash conversion
102%
(2023: 85%)
Adjusted operating margin Note 1, Note 2, Note 3
18.8%
(2023: 17.1%)
Read more on pages 35 to 36
Related principal risks
Read more on page 59 to 70
Note 1. Continuing operations.
Note 2. Profit figures before adjusting items (note 2 of the Group Financial
Statements).
Note 3. 2023 restated at 2024 average exchange rates
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The Weir Group PLC Annual Report and Financial Statements 2024
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Strategic progress
Performance continued
Strategic Report
Governance
Financial Statements
Additional Information
We continued to drive down CO subscript 2 e emissions across our
facilities, achieving a cumulative 27% absolute reduction in
our scope 1&2 market-based emissions since 2019, keeping
us on track to achieve our goal of a 30% reduction by 2030,
versus our 2019 baseline.
Our absolute scope 1&2 footprint in 2024 is133,488 tonnes
CO subscript 2 e (2023: 142,213 tonnes CO subscript 2 e) down 6% on the prior year.
In line with our Transition Plan, we are focusing on energy
efficiency initiatives and increasing low carbon electricity
supply to meet our 2030 target. Renewables now make up
31% of our total electricity supply (2023: 23%), and 12% of our
total energy (2023: 9%) supported by initiatives in 2024
including the installation of solar panels at our operations in
Kalgoorlie, Australia and Monterrey, Mexico. We continue to
disclose to CDP Climate to show corporate transparency on
our climate change performance (see page 121). Our CO subscript 2 e
reporting is externally assured as part of our assurance
roadmap described on page 55.
Read more about our Transition Plan and how we manage
climate risk on page 52
Alongside our focus on reducing greenhouse gas emissions,
we are also driving responsible water use and waste
reduction initiatives across Weir. We continue to develop
water stewardship programmes in all water-stressed
locations, aligning with the Alliance for Water Stewardship
Standard, and in 2024 we extended our CDP disclosures to
also address questions relating to water. Waste reduction
initiatives are focused on the most significant waste streams
in our operations – namely sand, metal scrap, elastomer
scrap and dust. In 2024, 82,419 tonnes of scrap metal were
reused in our foundries across both Divisions (2023: 80,066
tonnes). Our approach to managing water and waste in our
operations is underpinned by our SHE Management System
and further information on that approach is available on
our website.
Sites around the world continue to focus on projects towards
our goal to deliver sustainable Weir. An energy management
system introduced at our foundry in South Africa is delivering
significant cost and energy savings, while our facility in
Malaysia is benefiting from taking an holistic approach to
optimising its energy, water and waste:
global.weir/sustainability/accelerate-sustainable-mining/
Deliver high quality, efficient back office functions
Through the functional transformation pillar of Performance
Excellence we have created Weir Business Services (WBS),
bringing together Finance, HR and IS&T transactional
processes under a global shared business services model,
and focusing our functions on activities that support business
growth. During 2024, we delivered a phased transition to WBS
across all three functions and are now embedding new, more
effective and efficient ways of working.
Expand margins and deliver strong cash conversion
On a constant currency basis adjusted operating profit grew
9% year-on-year, and adjusted operating margins were
18.8%, up 170bps on the prior year. Expansion in operating
margin arose from very strong execution within Performance
Excellence workstreams and movement in Minerals revenue
mix towards aftermarket.
Free operating cash conversion for the year increased to
102%, which is above our 2024 target range of 90% to 100%,
benefiting from a strong reduction in working capital driven
by lean projects within Performance Excellence. Our strong
cash generation from the first half continued through the
second half of the year and overall represents a significant
17 percentage point improvement on the prior year.
Working capital as a percentage of sales reduced to 20.7%
(2023: 21.3%).
We made significant progress in our Performance Excellence
programme in 2024 delivering cumulative savings of £29m,
ahead of expectations. The cash outflow for the programme
was £28m. We have upgraded our total Performance
Excellence savings target to £80m in 2026, with £20m of
incremental savings expected in 2025. This is supported by
additional capacity optimisation and lean process
opportunities that have been identified as the programme
progresses.
Overall, we expect the benefits of Performance Excellence to
drive further margin expansion and move our operating
margins sustainably beyond 20%, while our strong cash
generation and balance sheet give us optionality to allocate
capital, compounding total shareholder returns.
Link to remuneration -
2024 scorecard
Strategic measures
Improve our lean processes
Optimise our capacity
Functional transformation, including Weir
Business Services
ESG measures
Reduce scope 1&2 CO subscript 2 e vs 2019 base aligned
to SBTi
Develop and implement ESG data
assurance roadmap
Further integrate climate risk/opportunity in
strategic planning
Read more on pages 133 to 136
Rating key
Outcome achieved meets or exceeds on-target
Outcome achieved is between threshold and on-target
Outcome achieved is below threshold
2025 bonus measures
Strategic measures
Improve our lean processes
Optimise our capacity
Functional transformation
ESG measures
Reduce scope 1&2 CO subscript 2 e vs 2019 base aligned to SBTi
Implement ESG data assurance roadmap
Read more on page 120
The Weir Group PLC Annual Report and Financial Statements 2024
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Strategic Report
Governance
Financial Statements
Additional Information
Strategy in action
Performance case study
From good to great
with Performance Excellence
Launched in September 2022, Performance Excellence is delivering ahead of our expectations.
It is streamlining our operations and creating the scalable platform to move our operating margins
sustainably beyond 20%.
Performance Excellence is our business
transformation programme to take Weir
from a good business to a great business,
and an even better place to work. Its focus is
on driving efficiency in all that we do,
supporting margin expansion and cash
conversion, creating the platform for the
future growth of Weir.
The programme has three pillars:
– capacity optimisation focuses on keeping
us close to our customers through service
centres and foundry optimisation
programmes, improving working
environments for our people and
enhancing returns for our business;
– by embedding a philosophy of lean across
Weir we are cutting out waste from our
processes and delivering value chain
excellence; and
– functional transformation is delivering a
global approach for core activities across
Finance, HR and IS&T, supported by
common technology systems, to provide
excellent internal customer service and
drive business growth.
Since launching Performance Excellence
we’ve built great momentum and the cost
savings delivered are ahead of our
expectations. We’ve seen the scope of
existing projects expand and a number of
new projects identified. As a result, we now
believe we can deliver even greater benefits
to our business and we are upgrading our
savings goal for 2026.
2024 marked an important milestone
as we officially opened a brand
new US$60m state-of-the-art
manufacturing facility for ESCO®
products in Xuzhou, China – a facility
that has set new standards for Weir in
terms of efficiency and sustainability,
supporting the delivery of Weir's
commercial and ESG goals.
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The Weir Group PLC Annual Report and Financial Statements 2024
32
Strategic Report
Governance
Financial Statements
Additional Information
Strategic progress
People
We are a global family. We are proud of our unique blend
of talent, technology and culture. We are here to inspire
our people to do the best work of their lives.
Weir has always been a values-led business.
Our new brand – mining technology for a
sustainable future – is focused on delivering
against our ambitions for our sector, technology
and financial returns, while supporting our
culture, values and our focus on creating a safe,
diverse, inclusive and equitable workplace.
2024 performance
Deliver on zero harm for our people and the environment
Our goal is a zero harm workplace where everyone goes
home safe and healthy, and we believe that people's safety,
physical and mental health and wellbeing are all connected.
Recognising these zero harm ambitions, we have ‘thinking
safety first’ as one of our core values within our We are Weir
framework. Within our sustainability strategy, ‘champion zero
harm’ is a distinct part of our ‘deliver sustainable Weir’
priority areas.
Safety performance
In April, tragically one of our colleagues suffered a fatal
accident while at work. Since then, we have held safety stand
downs to discuss the learnings and re-emphasise that safety
must always come first. Overall in 2024, lost time accident
numbers were flat year-on-year and our total incident rate Note 1
(TIR) was unchanged at 0.42 (2023: 0.42).
We have taken steps to renew our emphasis on driving a zero
harm safety culture and engage our teams. Under our Zero
Harm Behaviours framework, sites continued to complete
improvement actions identified during gap analysis
workshops in 2023 and we included a new question on
supervisor involvement in our employee engagement
survey, which has given us actionable insights on
improvement areas. Our SHE learning programme, which
includes learning relating to our SHE protocols and life saving
behaviours, supported employees' knowledge and
understanding. Additionally, we have appointed a new role,
Senior Director of Group Safety, Health and Environment,
reporting to the CEO, to ensure we enhance the level of focus
and commitment needed to deliver our zero harm ambitions.
Prioritising wellbeing
We have continued to prioritise employees’ wellbeing
supported by our health and wellbeing framework. Our
progress was again recognised when we were named top
improver in the CCLA corporate mental health benchmark, an
assessment of how leading UK-based businesses are
managing and reporting on workplace mental health.
Our website includes more information on local initiatives in
support of the framework and our policies, which highlight
our commitment to a supportive culture for workplace
mental health: global.weir/careers/health--wellbeing
Strategic initiatives
– Deliver on zero harm for our people and the environment
– Accelerate our purpose-driven culture and lead in
inclusion, diversity and equity
– Create talent and capabilities for the future
Link to sustainability strategy
Champion zero harm
Nurture our culture
People KPIs
Total incident rate Note 1
0.42
(2023: 0.42)
Employee net promoter (eNPS) score Note 2
47
(2023: 48)
% female representation
19%
(2023: 19%)
Read more on pages 35 to 36
Related principal risks
Read more on pages 59 to 70
Note 1. Total incident rate is an industry standard indicator that measures lost
time and medical treatment injuries per 200,000 hours worked.
Note 2. eNPS (employee net promoter score) is an index used to measure
employee satisfaction levels.
Note 3. Based on Peakon’s manufacturing sector benchmarks.
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The Weir Group PLC Annual Report and Financial Statements 2024
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Strategic progress
People continued
Strategic Report
Governance
Financial Statements
Additional Information
Managing safety, health and environment (SHE)
Our 'Zero Harm. Every Day.' guide sets out our approach to
managing SHE risk and includes our Zero Harm Behaviours
framework and SHE Management System (see page 58).
It must be followed by all sites and includes SHE standards
and protocols that are aligned to ISO 14001 and 45001.
We also maintain certification to ISO 14001 and 45001 in
applicable Weir sites, defined according to a site's risk profile,
with an accreditation rate of 67% in 2024 (2023: 65%).
Our SHE Management System also details minimum
standards for controlling environmental risks to air, land and
water. During the year ended 31 December 2024, there were
no significant environmental incidents, penalties or fines
reported at sites under our operational control. Further
aspects of how our zero harm culture is developed and
managed are outlined on page 57.
Accelerate our purpose-driven culture and lead in
inclusion, diversity and equity (ID&E)
In August, we ran our ninth global employee survey with
participation levels at an excellent 88%. Our employee net
promoter score Note 2 (eNPS) of 47 is in the top quartile of Peakon’s
manufacturing benchmark Note 3 . The survey feedback, which also
included over 62,000 comments from employees, provides
valuable insight on what we do well and where we could do
better, with improved feedback on engagement drivers such
as SHE involvement and sense of belonging.
Read more about the outcomes of our employee
engagement on pages 84 to 86
ID&E is driven by our values and we believe it is essential for
sustainable business success. During 2024, we created a new
ID&E Steering Committee of representatives from our senior
leadership team. The Committee is driving strategic
integration and embedding ID&E into our business strategy,
putting responsibility and accountability with leaders for
championing the business case for ID&E. By engaging across
Weir, the goal is to embed inclusion as a business-wide
priority, with everyone contributing to our inclusive culture.
The Committee has prioritised inclusive leadership, hiring,
learning and communications, and good early progress has
been made on each of these focus areas.
Our employee-led affinity groups have continued to be
highly active in 2024, expanding their global reach. Females
represented 19% of employees in 2024 (2023: 19%).
Towards the end of the year, we launched the Weir values
awards, a new recognition programme to connect
employees to our brand and purpose. Over 230 entries were
received and winners will be announced in April 2025.
Create talent and capabilities for the future
We continued to provide all our employees access to high
quality learning offerings and in 2024 over 11,500 online
courses were completed across Weir. We also invested in
developing our first line leaders with a further 13 cohorts
completing our leadership foundations programme during
the year. In October we launched a new global mentoring
programme to provide employees with access to internal
mentors, as detailed on page 86
We have prioritised succession planning in 2024 to ensure we
identify and grow talent to fill leadership and business-critical
positions in the future. During the year, we introduced more
regular talent discussions to support managers in developing
robust and inclusive plans. There was strong engagement –
we exceeded our expectations in terms of number of plans in
place and have made good progress in making talent
development a truly ongoing activity.
We continue to focus our community partnership activities
on projects with strong community, health and education
themes, including initiatives that support under-represented
groups in science, technology, engineering and maths (STEM)
careers. Total charitable donations in 2024 amounted to
£453,111 (2023: £486,715) with examples of local activities
available on our website: global.weir/charity-and-outreach
Transforming Weir from good to great
With 2024 being the first full year of delivery for our
Performance Excellence programme, it has been challenging
for certain parts of the business as we work to ensure we are
structured and set up to run as an efficient and effective
organisation. Some of the changes, which have included a
number of large-scale regional restructures, have impacted
individuals, while others have meant new ways of working for
colleagues. In line with our values, we have done our utmost
to be open and transparent, treat people with respect and
provide them with support throughout the changes.
Link to remuneration -
2024 scorecard
Strategic measures
Retain our talent
Succession planning
Maintain engagement score in top quartile
of Peakon’s manufacturing benchmark
ESG measures
Improve our safety TIR
Improve our female gender diversity
Improve our CCLA corporate mental health
benchmark score
Read more on pages 133 to 136
Rating key
Outcome achieved meets or exceeds on-target
Outcome achieved is between threshold and on-target
Outcome achieved is below threshold
2025 bonus measures
Strategic measures
Retain our talent
Succession planning
Maintain engagement score in top quartile
of Peakon’s manufacturing benchmark
ESG measures
Improve our safety TIR
Improve our gender and ethnic diversity
Improve our CCLA corporate mental health
benchmark score
Read more on page 120
The Weir Group PLC Annual Report and Financial Statements 2024
34
Strategic Report
Governance
Financial Statements
Additional Information
Strategy in action
People case study
Several parts of Weir have introduced mental health first aiders,
who are there to support colleagues' health and wellbeing. In 2024,
we adopted this approach as a pilot in Minerals' North America region.
Following training, the region now has 28 new advocates who are
prepared to offer immediate support to colleagues facing mental
health challenges. These individuals serve as the first line of
assistance, providing guidance, encouragement and support to
those in need in the workplace.
Affirming our
commitment
to zero harm
Weir is built around our zero harm commitment, where
everyone has a safe start, safe finish and safe journey home.
Safety is our top priority every single day –
from toolbox talks and safety moments, to
training programmes and safety learning.
We work hard to create a safety culture
where everyone feels responsible and
empowered to create a safe environment.
In addition, once a year we come together
across Weir to recognise our safety
achievements and take a further opportunity
for each of us to think about what we can do
to improve. This is Weir Safety Day and, in
March 2024, we focused on how everyone
can become a better safety leader, guided
by our Zero Harm Behaviours framework.
Right across Weir – on our sites, at a
customer’s site or in the office – colleagues
took time to consider the zero harm
behaviours and actions that will make them
a better safety leader, and empower them
to look out for their own safety and that of
their colleagues.
As well as our dedication to achieving zero
harm from a physical safety perspective, we
also want to support all our people to take
an holistic approach to their overall health
and wellbeing, including mental health.
So we take an active approach and our
global health and wellbeing framework
focuses on culture and leadership, safety
and environment, and the many facets of
wellbeing - mental, physical, digital and
financial. The framework allows different
parts of Weir to bring to life the aspects that
are most meaningful for them.
Read more about our safety culture and
focus on wellbeing: global.weir/wellbeing-
case-studies
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The Weir Group PLC Annual Report and Financial Statements 2024
35
249
249
348
411
428
2020
2021
2022
2023
2024
15.2
15.3
16.0
17.4
18.8
2020
2021
2022
2023
2024
•
•
•
2.0
1.9
2.5
2.6
2.5
2020
2021
2022
2023
2024
91
63
87
85
102
2020
2021
2022
2023
2024
Strategic Report
Governance
Financial Statements
Additional Information
Key Performance Indicators
We have financial and non-financial
metrics to measure our performance.
These metrics are aligned to our We are Weir
strategic framework and the majority are linked to
executive remuneration.
In 2024, 60% of Executive Directors' annual bonus was
directly linked to financial KPIs (adjusted profit before
tax and free operating cash conversion), 20% was
directly linked to progress against strategic
measures and 20% directly linked to ESG measures.
Further details are provided in the Directors’
Remuneration Report on pages 113 to 147.
The Key Performance Indicators include a mixture of GAAP measures
and those that have been derived from our reported results in order
to provide a useful basis for measuring our operational performance.
Adjusted results are for continuing operations before adjusting items
as presented in the Consolidated Income Statement. Details of
alternative performance measures are provided in note 3 of the
Group Financial Statements.
Note 1. Continuing operations.
Note 2. Total Group.
Note 3. Calculation is on a lender covenant basis with net debt at average
exchange rates.
Note 4. The 2024 KPI was subject to independent limited assurance by SLR
Consulting.
Note 5. The 2022 TIR has been restated to account for injuries inadvertently
excluded from the reported rates and has been assured by SLR.
Note 6. Total incident rate is an industry standard indicator that measures
lost time and medical treatment injuries per 200,000 hours worked.
Note 7. Market-based greenhouse gas emissions. For definition, see page
56.
Note 8. eNPS (employee net promoter score) is an index used to measure
employee satisfaction levels.
Key
Financial metric
Strategic metric
ESG metric
Financial
Revenue Note 1 £bn
2024 performance
Continuing operations revenue of £2,506m was down 1% on
a constant currency basis with aftermarket growth offset by
the phasing of two large original equipment project
deliveries into 2025.
Link to strategy
People, Customer, Technology, Performance
Read more on pages 41 to 45
Adjusted profit before tax Note 1 £m
2024 performance
Continuing operations adjusted profit before tax was £428m
(2023: £411m). Continuing operations adjusting items were
£81m (2023: £90m). These were mainly due to costs relating
to Performance Excellence, a brand name impairment and
movements in the legacy US asbestos-related provision.
Link to strategy
People, Customer, Technology, Performance
Read more on pages 41 to 45
Adjusted operating margin Note 1 %
2024 performance
Continuing operations adjusted operating margins were
18.8%, up 170bps on a constant currency basis. Expansion in
operating margin arose from very strong execution within
Performance Excellence workstreams and movement in
Minerals Division revenue mix towards aftermarket.
Link to strategy
Performance
Read more on pages 41 to 45
Free operating cash conversion ratio Note 2 %
2024 performance
Free operating cash conversion of 102% (2023: 85%)
exceeded our target of between 90% and 100%. We continue
to target operating cash conversion of 90% to 100% driven
by working capital efficiency and maintaining capex and
lease costs close to 1.0x depreciation.
Link to strategy
People, Customer, Technology, Performance
Read more on pages 41 to 45
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The Weir Group PLC Annual Report and Financial Statements 2024
36
Key Performance Indicators
continued
1.3
1.7
1.9
1.8
1.9
2020
2021
2022
2023
2024
15
17
17
19
19
2020
2021
2022
2023
2024
0.41
0.45
0.45
0.42
0.42
2020
2021
2022
2023
2024
160,069
156,600
152,683
142,213
133,488
2020
2021
2022
2023
2024
34
42
48
48
51
48
47
2020
(H1)
2020
(H2)
2021
(H1)
2022
(H1)
2022
(H2)
2023
(H2)
2024
(H2)
2.8
1.9
1.5
1.1
0.7
2020
2021
2022
2023
2024
•
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•
Strategic Report
Governance
Financial Statements
Additional Information
Key
Financial metric
Strategic metric
ESG metric
Balance sheet efficiency – Net debt to EBITDA Note 3
2024 performance
Net debt to EBITDA on a lender covenant basis was 0.7x
(2023: 1.1x) compared to a lender covenant level of 3.5x.
Within our capital allocation policy we aim to keep net debt
to EBITDA between 0.5x to 1.5x, and up to 2.0x for acquisitions,
with through-cycle 33% adjusted earnings per share being
distributed by way of dividend.
Link to strategy
People, Customer, Technology, Performance
Read more on pages 41 to 45
Non-financial
R&D investment as a percentage of revenues1 %
2024 performance
Research & development costs for continuing operations of
£46.5m (2023: £46.4m) were in line with the prior year and
equated to 1.9% of revenues. We continue to focus our R&D
investment on technologies that accelerate sustainable
mining.
Link to strategy
Technology
Read more on pages 26 to 27
Inclusion, diversity and equity: Female representation %
2024 performance
Female representation was unchanged at 19% of employees
(2023: 19%). While female representation increased in our
more senior job bands 3-5, representation in our job bands
1-2 remained unchanged.
Link to strategy
People
Read more on pages 32 to 33
Safety Note 1, Note 4, Note 5 (total incident rate6)
2024 performance
Our total incident rate (TIR) of 0.42 (2023: 0.42) is
disappointing relative to our ambition of zero harm. We have
taken action to reinvigorate our safety approach to drive
improvement in performance.
Link to strategy
People
Read more on pages 32 to 33
Greenhouse gas emissions: Scope 1&2 CO subscript 2 e tonnes CO subscript 2 e Note 1, Note 4, Note 7
2024 performance
Scope 1&2 CO subscript 2 e emissions in 2024 were 133,488 t CO subscript 2 e, a
cumulative reduction of 27% since 2019, driven by many
projects at our sites across the world. We are targeting a
reduction of 30% in absolute scope 1&2 market-based CO subscript 2 e
by 2030, from a 2019 baseline. This target has been
approved by the Science Based Targets initiative (SBTi).
Link to strategy
Technology and Performance
Read more on pages 26 to 27, 29 to 30 and page 47
Employee engagement (eNPS Note 1, Note 4, Note 8 )
2024 performance
Levels of engagement remained high and our employee net
promoter score of 47 keeps us in the top 25% against
manufacturing sector benchmarks. Participation levels in our
regular all-employee engagement survey remained
excellent at 88%.
Link to strategy
People
Read more on pages 32 to 33
The Weir Group PLC Annual Report and Financial Statements 2024
37
⬛Mining
80%
⬛Industrial
15%
⬛Naval and marine
2%
⬛Infrastructure
2%
⬛Power generation
1%
⬛Aftermarket (AM)
75%
⬛Original equipment (OE)
25%
⬛South America
24%
⬛North America
23%
⬛Australasia
19%
⬛Africa
13%
⬛Asia Pacific
12%
⬛Europe
5%
⬛Middle East
4%
⬛Europe
28
⬛Africa
27
⬛Asia Pacific
21
⬛Australasia
21
⬛South America
15
⬛North America
13
⬛Middle East
1
Strategic Report
Governance
Financial Statements
Additional Information
Operating review: Minerals Division
Our Minerals Division is a global leader
in engineering, manufacturing and
servicing the processing technology
used in abrasive, high-wear mining
applications. Its differentiated
technology is also used in infrastructure
and general industrial markets.
2024 Divisional revenue
£1,818m
negative 2% Note 1
2024 Divisional adjusted operating profit
£383m
+9%
Divisional orders by end market %
Revenue by original equipment/aftermarket %
Note 1, Note 2
Divisional orders by geography %
Number of facilities
2024 strategic review
We delivered a year of good strategic progress, including the
award of two large orders featuring our redefined mill circuit
technologies, launching our new digital brand and delivering
margin progression supported by Performance Excellence
workstreams. Progress across all four pillars of the We are
Weir strategic framework is outlined below.
People
On safety, TIR for Minerals was 0.34 (2023: 0.34). We are
continuing to implement the lessons learned as a result of
the fatal incident suffered by one of our colleagues in the
year and are strengthening our commitment to achieve zero
harm.
Customer
We are generating high levels of customer interest with our
portfolio of sustainable solutions across comminution,
separation and tailings. Market acceptance of our redefined
mill circuit continues to grow, offering customers reduced
CO subscript 2 output, energy demand and operational costs. In 2024,
OE orders for comminution doubled year-on-year. Our
market-leading WARMAN® slurry pump and CAVEX®
hydrocyclone separation technologies were selected by OCP
Group for their greenfield phosphate projects in Morocco, a
£25m order.
While investing in new growth opportunities, we continue to
gain market share in large mill circuit pumps, converting over
90% of our competitive field trials in the year. In 2024, we were
selected to provide the largest mill circuit pump in North
America to the Highland Valley Copper project in Canada,
highlighting our dedication to innovation and quality.
Note 1. 2023 restated at 2024 average exchange rates.
Note 2. Profit figures before adjusting items (note 2 of the Group Financial Statements).
The Weir Group PLC Annual Report and Financial Statements 2024
38
Operating review: Minerals Division
continued
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Technology
In September, we launched our new digital brand NEXT
intelligent solutions, integrating our existing digital offerings
such as Synertrex® and SentianAI to offer customers an
integrated platform to help their operations run safer and
more efficiently. We now have over 100 sites utilising our
digital platform.
We invested in development of our redefined mill circuit
products, taking lessons from the Iron Bridge project to
extend our strong position in large format HPGRs. In addition,
we launched our new ENDURON® Elite screen at MINExpo in
September, which is one of the largest screens in the market
for hard rock mining, delivering efficiency and energy savings.
Performance
The Division continues to progress key capacity optimisation
workstreams, aligning the operational footprint to be closer
to customers, and programmes delivering savings across the
supply chain.
Within the Performance Excellence programme, the Division
has rolled out its bespoke approach to lean manufacturing,
Weir Integrating Network System (WINS), across several of our
operational sites which has resulted in a significant reduction
in the cost of poor quality, while also improving inventory
turns.
On sustainability, in our continued drive to reduce our
environmental footprint, the Division met its target emissions
savings in the year and launched an internal ESG dashboard
for several key product lines, which will allow improved ESG
data monitoring and reporting across the Division's
operations.
2024 financial review
Orders increased by 3% on a constant currency basis at
£1,860m (2023: £1,804m), with book-to-bill at 1.02 reflecting
installed base expansion and strength in mining markets. OE
orders decreased 3% year-on-year, driven by the phasing of
large orders and market conditions in certain commodity
markets such as nickel and lithium. We received two large
orders for the Reko Diq and OCP projects with £42m and
£25m recognised in the year, respectively. AM orders
increased 5% year-on-year, reflecting installed base
expansion, growth in comminution and a minor contribution
from price. As expected, H2 included the remaining value of
the multi-period order historically recognised fully in H1.
Excluding the impact of this order, AM grew 5% sequentially in
H2. For the full year, AM orders represented 74% of total
orders (2023: 73%), and mining end-markets accounted for
80% of total orders (2023: 84%).
Revenue decreased 2% on a constant currency basis to
£1,818m (2023: £1,848m), reflecting the expected reduction
in revenue from customers in the Canadian oil sands, the
absence of revenue from Russia, and OE order book phasing.
Despite these headwinds, AM revenues grew by 3%, reflecting
a strong performance in both South America and Australasia
benefiting from growth in hard rock mining volumes and
contribution from price realisation. Full year revenue mix
moved towards aftermarket, which accounted for 75% of
revenue, up from 71% in the prior year.
Adjusted operating profit increased 9% on a constant
currency basis to £383m (2023: £353m) as the Division
benefited from incremental Performance Excellence savings
and strong operational execution.
Adjusted operating margin on a constant currency basis was
21.1% (2023: 19.1%). The year-on-year improvement of
200bps reflects strong business execution, incremental
savings from Performance Excellence, and the benefit from
revenue mix shifting towards aftermarket.
Adjusted operating cash flow increased by 9% to £455m
(2023: £418m) reflecting growth in operating profit and a
decrease in the working capital outflow to £4m (2023: £26m).
Working capital movements include an increase in creditors
reflecting phasing of purchases offset by an increase in
inventory and debtors impacted by order book phasing.
North America's largest pump
In November, we were selected to supply our
WARMAN® MCR® 760 pump to Teck’s Highland Valley
Copper Mine Life Extension project in Canada,
together with our CAVEX® hydrocyclones. Once
installed this will be the largest mill circuit pump in
North America. With declining ore grades and
increased demand, miners are looking for solutions to
maximise their throughput and our pumps play a
pivotal role in ensuring they continue to meet their
production targets.
Read more about this contract win and how
we design and engineer at scale: global.weir/
largest-pump-north-america
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The Weir Group PLC Annual Report and Financial Statements 2024
39
Operating review: ESCO Division
Our ESCO Division is a global leader in
the provision of ground engaging tools
(GET) for large mining machines. Its
highly engineered technology
improves productivity through extended
wear life, increased safety and reduced
energy consumption.
2024 Divisional revenue
£688m
+1% Note 1
2024 Divisional adjusted operating profit
£129m
+9% Note 1, Note 2 Note 1, Note 2 Note 1, Note 2
Divisional orders by end market %
Revenue by original equipment/aftermarket %
Divisional orders by geography %
Number of facilities
■Mining
70%
■North America
■Infrastructure
26%
■South America
■Industrial
4%
■Australasia
■Africa
■Europe
■Asia Pacific
■Middle East
55%
14%
10%
9%
5%
4%
3%
■Aftermarket (AM)
91%
■North America
23
■Original equipment (OE)
9%
■South America
9
■Australasia
8
■Africa
6
■Asia Pacific
4
■Europe
4
2024 strategic review
We made strong strategic progress in the year, further
improving safety performance, launching our next generation
lip and GET system Nexsys™ and opening our new foundry in
Xuzhou. Progress across all four pillars of the We are Weir
strategic framework is outlined below.
People
Safety performance in ESCO was a highlight, with a reduction
in TIR to 0.74 (2023: 0.81). This reflects strong focus across the
Division and is an important step forward on our journey to
delivering our ambition of zero harm.
Customer
Throughout the year, the Division grew market share in our
core GET markets, winning net 118 major digger conversions,
as our best-in-class wear life and total cost of ownership
model continues to add value to our customers' operations.
We also grew orders in the Middle East and Africa, reflecting
the momentum in these regions for our market-leading
product offerings.
We gained further traction with our MOTION METRICS™ digital
solutions, growing our installed base and rolling out our
subscription-based offering to customers.
Note 1 2023 restated at 2024 average exchange rates.
Note 2 Profit figures before adjusting items (note 2 of the Group Financial Statements).
TM
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The Weir Group PLC Annual Report and Financial Statements 2024
40
Operating review: ESCO Division
continued
Technology
The commercial launch of our next generation GET
technology Nexsys™ was a major highlight in 2024 and we
secured several orders in Q4. The technological benefits of
improved wear life and reduced adapter change time follow
thousands of hours of field trials, with the step change in
technology resonating with customers.
We also launched our latest MOTION METRICS™
ShovelMetrics™ payload monitoring solution, which provides
optimised truck loading and improved haulage efficiency for
customers.
TM
In addition, we received the first order for our next generation
hydraulic excavator bucket following extensive field trials. Its
lightweight design and high performance improves payload
performance and dig efficiency for customers, combined
with reduced energy usage and emissions, and it is an
important element of the Division's sustainability offerings.
Performance
The Division made strong strides in optimising the
performance in its foundry network. The new Xuzhou foundry
opened in the year ahead of schedule, with production
continuing to ramp up and is increasing the Division’s low
cost manufacturing capacity.
Progress in improving the efficiencies in our North American
foundries continued in the year with improvements in both
operational and quality metrics being ahead of plan.
The Division also launched its proprietary continuous
improvement programme, APEX, in the year, setting core
principles to drive improvements in safety, quality and
efficiencies supporting several of our Performance Excellence
workstreams.
2024 financial review
Orders decreased 1% on a constant currency basis to £663m
(2023: £671m), with book-to-bill at 0.96. This reflects strong
demand for our core GET products and dredging solutions
offset by normalised demand from the Canadian oil sands
and a reduction in mining attachment orders. Aftermarket
continues to be the largest part of ESCO accounting for 92%
of total orders in the year (2023: 91%). In total, mining end-
markets accounted for 70% of orders (2023: 72%) and
infrastructure accounted for 26% (2023: 25%).
Revenue on a constant currency basis increased by 1% to
£688m (2023: £680m) driven by growth in mining GET and
dredge solutions within the Middle East and Asia Pacific.
Additionally, growth in mining attachment revenues drove an
increase of 9% in original equipment revenue.
Adjusted operating profit increased by 9% to £129m
(2023: £118m) on a constant currency basis, as the Division
benefited from Performance Excellence savings and
operational efficiencies.
Adjusted operating margin on a constant currency basis was
18.8% (2023: 17.4%), with the year-on-year improvement of
140bps reflecting incremental Performance Excellence
savings and operational efficiencies, despite a headwind
from increased R&D spend.
Adjusted operating cash flow increased by 15% to £157m
(2023: £137m) reflecting growth in operating profit and a
working capital inflow of £3m (2023: outflow of £4m). Working
capital movements include a reduction in inventory and
increase in payables offset by an increase in receivables.
Boosting performance with digital
We are integrating digital technology and services to
boost performance for our customers. Equipment
downtime is one of the costliest problems they face
and our latest generation MOTION METRICS™
ShovelMetrics™ payload monitoring solution can alert
operators quickly to issues that could cause a blockage
in the crusher further downstream. Additionally, the
system continuously monitors shovel tooth wear so
that unscheduled maintenance can be avoided,
thereby reducing further downtime.
Learn more about how we are boosting
productivity and sustainability with our digital
technology and solutions at:
global.weir/services/digital-services/
TM
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41
Financial review
We delivered growth in operating profit
and margin expansion, supported by
Performance Excellence. Strong cash
generation reduced leverage to 0.7
times, increasing our balance sheet
strength.
Revenue Note 1
£2,506m
negative 1% Note 2
2,528
2,506
2023
2024
Adjusted operating profit Note 1, Note 3
£472m
+9% Note 2
433
472
2023
2024
Adjusted operating margin Note 1, Note 3
18.8%
+170bps Note 2
17.1
18.8
2023
2024
Overview
Strong execution through 2024 in our Performance Excellence
programme and movement in Minerals revenue mix towards
aftermarket (AM) saw the Group deliver year-on-year growth
in operating profit and significantly expand our operating
margins. This has been achieved against the backdrop of
lower revenue due to phasing of large original equipment
(OE) shipments. A positive cash generation performance,
exceeding our free operating cash conversion target, has
resulted in leverage reducing to 0.7 times. Our balance sheet
remains strong with significant liquidity to support our future
growth ambitions.
Our business model of vertically integrated operations and
market-leading positions and brands ensures that we
continue to deliver for our customers, while growing margins
through operational efficiency, the continued realisation of
benefits from our Performance Excellence programme and
sufficient price increases to protect gross margins from
inflationary effects.
We enter 2025 with a growing pipeline of project bids, a
strong order book and positive production trends in our
mining markets. Combined with our focus on delivering the
benefits from our Performance Excellence programme, and
achieving our increased target savings, we are well placed to
exceed our adjusted operating margin target of 20% in 2026
and to continue to deliver our cash conversion target of
between 90% and 100%.
Financial highlights
Continuing operations orders increased 2% on a constant
currency basis, reflecting continued strength in demand for
our solutions. Demand for AM increased 4%, with growth in
hard rock mining and a contribution from pricing. Towards
the end of the year, we saw strengthening in AM orders with
Q4 up 10% year-on-year and 11% sequentially. In OE, we saw
an overall 4% contraction in orders. Demand for OE was
driven by greenfield capital expenditure with momentum
building during the second half of the year, while activity in
smaller brownfield and debottlenecking projects at existing
mines remain stable.
Continuing operations revenue decreased 1% on a constant
currency basis, reflecting phasing of large OE shipments
partially offset by AM revenues, which increased 2% on a
constant currency basis. On a reported basis, revenues
decreased 5%, impacted by a foreign exchange translation
headwind of £108m. Overall book-to-bill was 1.01.
Adjusted operating profit from continuing operations
increased by £13m (3%) to £472m on a reported basis
(2023: £459m). Excluding a £26m foreign currency translation
headwind, the constant currency increase was £39m (9%).
Continuing operations adjusted profit before tax of £428m
was an increase of £17m from £411m in the prior year, after
a foreign currency translation headwind of £25m. Adjusted
operating margin of 18.8% is 140bps ahead of 2023 on an as
reported basis and 170bps on a constant currency basis.
Continuing operations adjusting items decreased by £9m to
£81m (2023: £90m) with the current year mainly driven by
costs associated with our Performance Excellence
programme and the impairment of the Trio brand name
following a decision to rebrand certain products within the
Minerals Division.
Statutory profit for the year after tax from total operations of
£313m (2023: £229m) includes an exceptional tax credit of
£87m, of which £69m relates to the recognition of a deferred
tax asset for net operating losses in the US, which arose on
the disposal of Seaboard International LLC as part of the
Group's divestiture of its Oil & Gas Division in 2021.
Adjusted operating cash flow increased by £65m to £591m in
the year, and reflects an increase in profitability together with
an improvement in working capital cash flows, with
underlying working capital performance measured by
working capital as a percentage of sales reducing to 20.7%
(2023: 21.3%). Free operating cash conversion of 102% (2023:
85%) exceeded our external target of between 90% and 100%.
A free cash inflow of £328m primarily funded dividends
and exceptional cash flows, leaving a net cash inflow of
£194m. Unfavourable foreign exchange translation of £24m
coupled with increased lease liabilities of £14m primarily
resulted in net debt decreasing by £155m to £535m. Net
debt to EBITDA on a lender covenant basis was 0.7 times Note 4
(2023: 1.1 times) compared to a lender covenant level of
3.5 times (2023: 3.5 times).
Note 1 Continuing operations.
Note 2 2023 restated at 2024 average exchange rates.
Note 3 Profit figures before adjusting items (note 2 of the Group Financial Statements).
Note 4 Calculation is on a lender covenant basis with net debt at average exchange
rates.
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42
Financial review
continued
Results summary
Continuing operations Note 1
2024
2023
As reported
+/negative
Constant
currency Note 2
+/negative
Orders Note 2
£2,523m
£2,475m
n/a
+2%
Revenue
£2,506m
£2,636m
negative 5%
negative 1%
Adjusted operating profit Note 3
£472m
£459m
+3%
+9%
Adjusted operating margin Note 3
18.8%
17.4%
+140bps
+170bps
Statutory operating profit
£391m
£368m
+6%
n/a
Net finance costs
£44m
£48m
n/a
Adjusted profit before tax Note 3
£428m
£411m
+4%
n/a
Statutory profit before tax
£347m
£321m
+8%
n/a
Adjusted effective tax rate Note 3
27.7%
27.0%
+70bps
n/a
Adjusted earnings per share Note 3
120.0p
115.9p
+4%
n/a
Total Group
Statutory profit after tax
£313m
£229m
+37%
n/a
Statutory earnings per share
121.1p
88.2p
+37%
n/a
Adjusted operating cash flow Note 3
£591m
£526m
+12%
n/a
Free operating cash conversion
102%
85%
+17pp
n/a
Dividend per share
40.0p
38.6p
+4%
n/a
Net debt
£535m
£690m
+£155m
n/a
The Financial review includes a mixture of GAAP measures and those which have been derived from our reported results in order to provide a useful basis for measuring
our operational performance. Adjusted results are for continuing operations before adjusting items as presented in the Consolidated Income Statement. Details of
alternative performance measures are provided in note 3 of the Group Financial Statements.
Continuing operations orders
Orders
£2.5bn
+2% Note 2
Orders at £2,523m on a constant currency basis were up 2%
on the prior year. Original equipment orders were £532m and
aftermarket orders were £1,991m.
Minerals orders increased 3% year-on-year on a constant
currency basis to £1,860m (2023: £1,804m), with a book-to-
bill of 1.02, reflecting installed base expansion and strength in
mining markets. Demand was strong in most regions, with
growth seen particularly in Africa and the Middle East, where
we continue to grow market share in our core Minerals
separation business. Across commodities, growth was seen
across future facing minerals such as copper and phosphate,
driven by large OE orders received for the Reko Diq and OCP
projects in Pakistan and Morocco respectively. OE orders fell
by 3% driven by the phasing of large orders and market
conditions in certain commodity markets such as nickel and
lithium. AM orders grew 5% year-on-year, reflecting installed
base expansion, growth in comminution and a minor
contribution from price. AM orders represented 74% of total
orders (2023: 73%), and mining end-markets accounted for
74% of total orders (2023: 78%).
ESCO orders decreased 1% on a constant currency basis to
£663m (2023: £671m) with strong demand for our core GET
products and dredging solutions offset by normalised
demand from the Canadian oil sands and a reduction in
mining attachment orders. AM continues to be the largest
part of ESCO, accounting for 92% of total orders in the year
(2023: 91%). The Division’s book-to-bill for the year was 0.96.
Note 1 Continuing operations.
Note 2 2023 restated at 2024 average exchange rates.
Note 3 Profit figures before adjusting items. Total operations adjusted operating cash flow excludes additional pension contributions, exceptional and other adjusting cash
items and income tax paid. Total operations net cash generated from operating activities was £450m (2023: £394m).
Note 4 Calculation is on a lender covenant basis with net debt at average exchange rates.
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Financial review
continued
Continuing operations revenue
Revenue
£2.5bn
negative 1% Note 2
Revenue of £2,506m decreased 1% on a constant currency
basis. Aftermarket accounted for 80% of revenues, up from
77% in the prior year. Reported revenues decreased 5% (2023:
£2,636m), impacted by a foreign exchange translation
headwind of £108m.
Minerals revenue decreased 2% on a constant currency basis
to £1,818m (2023: £1,848m), reflecting a reduction in revenue
from customers in the Canadian oil sands, the absence of
revenue from Russia, and OE order book phasing. Despite
these headwinds, aftermarket revenues grew by 3%,
reflecting a strong performance in both South America and
Australasia benefiting from growth in hard rock mining
volumes and contribution from price realisation. Full year
revenue mix moved towards aftermarket, which accounted
for 75% of revenue, up from 71% in the prior year.
ESCO revenue increased 1% on a constant currency basis to
£688m (2023: £680m) driven by growth in mining GET and
dredge solutions within the Middle East and Asia Pacific.
Growth in mining attachment revenues drove an increase of
9% in original equipment revenue.
Continuing operations profit
Adjusted operating profit
£472m
+9% Note 2
Continuing operations adjusted operating profit increased by
£39m, 9%, on a constant currency basis or by £13m, 3%, on an
as reported basis to £472m.
Minerals adjusted operating profit increased £30m on a
constant currency basis to £383m (2023: £353m) as the
Division benefited from incremental Performance Excellence
savings and strong operational execution. Adjusted operating
margin on a constant currency basis was 21.1% (2023: 19.1%),
with the 200bps increase driven by factors above as well as
the benefit from revenue mix shifting towards aftermarket.
ESCO adjusted operating profit increased by £11m on a
constant currency basis to £129m (2023: £118m), as the
Division benefited from Performance Excellence savings and
operational efficiencies.
Adjusted operating margin of 18.8% was up 170bps on a
constant currency basis (2023: 17.1%), reflecting the
incremental benefits of Performance Excellence, as well as
Minerals revenue mix moving towards aftermarket.
Unallocated costs at £40m have increased by £2m on a
constant currency basis (2023: £38m).
Statutory operating profit for the year of £391m was £23m
favourable to the prior year due to the increase in reported
adjusted operating profit of £13m as well as a reduction in
adjusting items.
Continuing operations adjusting items
recognised in arriving at operating profit
Continuing operations adjusting items decreased by £9m to
£81m (2023: £90m). Intangibles amortisation decreased to
£21m (2023: £25m). Exceptional items increased by £33m to
£55m (2023: £22m). Within exceptional items, costs of £36m
(2023: £29m) were recognised relating to initiatives across all
three pillars of our Performance Excellence programme - lean
processes, capacity optimisation and functional
transformation. Exceptional items in the year also included
the £19m impairment of our Trio brand name following a
decision to rebrand certain products within the Minerals
Division and smaller amounts relating to legacy legal claims
and integration costs, offset by the reversal of previously
impaired receivables balances resulting from the Russia
operations wind down (of which £8m was reversed in the
prior year). Other adjusting items of £6m (2023: £43m) are
primarily related to movements in the legacy US asbestos-
related provision and associated insurance asset. The prior
year reflected adjustments to the provision based on the
triennial actuarial review undertaken in 2023.
Continuing operations net finance costs
Net finance costs were £44m (2023: £48m) with a decrease in
finance costs of £1m after a foreign currency translation
tailwind of £1m on US$ denominated debt. The decrease in
net costs was largely due to higher finance income, driven by
higher interest rates on increased cash balances in the year.
Net finance costs (excluding retirement benefit-related
costs) were covered 12.7 times by adjusted operating profit
from continuing operations on a lender covenant basis
(2023: 10.6 times), compared to a covenant level of 3.5 times.
Continuing operations adjusted profit before tax
Adjusted profit before tax from continuing operations was
£428m (2023: £411m), after a foreign currency translation
headwind of £25m. The statutory profit before tax from
continuing operations of £347m compares to £321m in 2023
with the increase primarily due to higher adjusted operating
profit and a decrease in adjusting items.
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Financial review
continued
Continuing operations adjusted tax charge
The adjusted tax charge for the year of £119m (2023: £111m)
on adjusted profit before tax from continuing operations of
£428m (2023: £411m) represents an adjusted effective tax
rate (ETR) of 27.7% (2023: 27.0%). Our ETR is principally driven
by the geographical mix of profits arising in our business and,
to a lesser extent, the impact of Group financing and transfer
pricing arrangements.
In terms of cash tax, the total Group paid income tax of
£111m in 2024 across all of its jurisdictions compared to
£104m in 2023. The increase is a combination of increased
profitability across the Group combined with an increase in
withholding taxes suffered on cash repatriation to the UK.
Continuing operations adjusting items tax credit
A tax credit of £87m (2023: £20m) has been recognised in
relation to continuing operations adjusting items and
includes an exceptional tax credit of £69m in relation to the
recognition of a deferred tax asset for net operating losses in
the US, which arose on the disposal of Seaboard International
LLC as part of the Group's divestiture of its Oil & Gas Division
in 2021.
Continuing operations profit after tax
The continuing operations profit after tax before adjusting
items is £310m (2023: £300m). The statutory profit after
tax for the year from continuing operations is £315m (2023:
£230m).
Discontinued operations statutory loss after tax
The statutory loss after tax for the year from discontinued
operations of £3m (2023: £1m) related to the finalisation of
certain tax indemnities under the sale and purchase
agreement for the Oil & Gas Division, which was disposed of
in 2021.
Statutory profit after tax
The statutory profit for the year after tax from total operations
is £313m (2023: £229m), with the increase primarily driven by
the exceptional tax credit of £87m mentioned above.
Cash flow and net debt
Adjusted operating cash flow Note 3
£591m
+12%
Adjusted operating cash flow increased by £65m to £591m
(2023: £526m) primarily driven by the increase in adjusted
operating profit, coupled with an improvement in working
capital of £36m (2024: inflow of £8m vs 2023: outflow of
£28m). The net working capital inflow reflects an
improvement in payables, including an increase in advance
payments of £29m, and inventory, partially offset by higher
receivables. Working capital as a percentage of sales
reduced to 20.7% (2023: 21.3%). Non-recourse invoice
discounting facilities, primarily customers supply chain
financing facilities, of £35m (2023: £33m) were utilised and
suppliers chose to utilise supply chain financing facilities of
£34m (2023: £32m). Higher cash outflows from exceptional
and other adjusting items and income tax paid, partially
offset by lower additional pension contributions, resulted in
net cash generated from operating activities of £450m (2023:
£394m).
Capital expenditure
Net capital expenditure decreased by £14m to £69m (2023:
£83m) primarily as a result of completing construction of our
new ESCO foundry in China in early 2024.
Lease payments decreased by £6m to £25m (2023: £31m)
driven by lease incentive income received in the year.
Free operating cash flow
£484m
Free operating cash flow increased by £92m to £484m (2023:
£392m) resulting in free operating cash conversion of 102%
(2023: 85%) (refer to note 3 of the Group Financial
Statements). This exceeded our 2024 target of between 90%
and 100% and reflected the previously noted improvement in
cash generation, reduced capital expenditure and lower
purchases of shares for employees. We continue to target
free operating cash conversion for 2025 of between 90% and
100%.
Free cash flow (refer to note 3 of the Group Financial
Statements) from total operations was an inflow of £328m
(2023: £238m). In addition to the movements noted above,
this was primarily impacted by an increase in tax payments of
£7m and higher net finance costs of £3m, partially offset by a
reduction in additional pension contributions of £9m
primarily due to the strength of the funding position of the UK
Main Plan.
Net debt
£535m
Net debt decreased by £155m to £535m (2023: £690m) and
includes £127m (2023: £117m) in respect of IFRS 16 'Leases'.
The movement primarily reflects free cash inflow of £328m,
offset by dividends of £100m, exceptional cash flows of
£31m, an increase in lease liabilities of £14m and
unfavourable foreign exchange on translation of £24m. Net
debt to EBITDA on a lender covenant basis reduced to 0.7
times Note 4 (2023: 1.1 times) compared to a covenant level of 3.5
times.
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45
Financial review
continued
As a result of strong cash generation in 2023, the Group
reduced its multi-currency revolving credit facility (RCF) by
US$200m to US$600m in February 2024. In March 2024, the
Group exercised the option to extend its RCF by one year,
which will now mature in April 2029. This extended the
average tenor of the Group's debt financing and, coupled
with a further year of strong cash generation, there remains
in place more than £1bn of immediately available liquidity.
Pensions
The Group has a mixture of defined benefit pension plans
and other employee compensation or medical plans in both
the UK and North America.
The total movement in surplus across all the Group's
schemes was an increase of £7m (2023: decrease of £13m),
comprising a £3m surplus increase in the UK Main Scheme
and a £4m deficit reduction in all other schemes. The key
drivers of the £7m increase were Company contributions
totalling c.£3m (2023: £13m) plus net actuarial gains of c.£5m
(2023: net actuarial losses of £28m), offset by pension
expenses of c.£1m (2023: £nil).
For 2024, the net actuarial gain was driven by a number of
factors including movements in market conditions and
experience and demographic assumption updates from the
latest triennial valuation of the UK Main Scheme. The net
actuarial gain in the year resulted in a credit of £5m (2023:
charge of £28m) being recognised in the Consolidated
Statement of Comprehensive Income.
Insurance policy assets held for the UK scheme cover c.60%
(2023: 60%) of the UK's total funded obligation, reducing the
Group's exposure to actuarial movements. The latest actuarial
funding valuation of the UK Main Plan was completed in 2024.
As the valuation reported a funding surplus, no recovery plan
was required and therefore no future deficit reduction
contributions are currently payable. In addition, the strength
of the funding position of the ESCO defined benefit plans
resulted in the Group making no additional pension cash
contributions in 2024 (2023: £9m).
Asbestos-related provision
A US-based subsidiary of the Group is co-defendant in
lawsuits pending in the United States in which plaintiffs are
claiming damages arising from alleged exposure to products
previously manufactured which contained asbestos. At the
end of 2024, there were 2,053 outstanding asbestos-related
claims in the US (2023: 1,788).
The US subsidiary has recognised a US asbestos-related
provision of £70m (2023: £76m), which reflects the mean
value of expected future settlements and defence costs
based on the triennial actuarial review, which was completed
in December 2023. Insurance cover exists for claims with a
pre-1981 date of first exposure and, as a result, a
corresponding insurance asset of £4m (2023: £15m) is
recognised. The net result is a £66m liability (2023: £61m).
A charge of £6m (2023: £43m) has been recognised as an
other adjusting item in the year (see note 6 of the Group
Financial Statements).
Based on the profile of the claims in the actuarial model,
external advisers expect the insurance cover and associated
limits currently in place related to claims with an exposure
date pre-1981 to exhaust during the first half of 2025.
Following the exhaustion of the insurance asset, the US
subsidiary will be required to fund future settlements and
defence costs of c.£7m per annum from mid 2025.
Full details of the provision, plus the related insurance
receivable, are provided in note 22 to the Group Financial
Statements.
Key accounting and policy judgements
The key accounting and policy judgements are contained
within note 2 to the Group Financial Statements on page 168.
Earnings per share
Adjusted earnings per share from continuing operations
120.0p
+4%
Adjusted earnings per share from continuing operations
increased by 4% to 120.0p (2023: 115.9p) reflecting the
increased adjusted profit in the year. Statutory reported
earnings per share from total operations is 121.1p (2023:
88.2p), with the increase driven by improved operating profit
and the adjusting item deferred tax credit. The weighted
average number of shares in issue was 257.8m (2023:
258.4m).
Dividend
Full year dividend
40.0p
+4%
The Board is recommending a final dividend of 22.1p,
resulting in a total dividend of 40.0p for the year. If approved
at the Annual General Meeting on 24 April 2025, the final cash
dividend will be paid on 30 May 2025 to shareholders on the
register as at 22 April 2025.
Brian Puffer
Chief Financial Officer
27 February 2025
Deliver
sustainable we1r
sustainable mining
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The Weir Group PLC Annual Report and Financial Statements 2024
46
Sustainability introduction
Our collective efforts put sustainability at the very
heart of our strategy, leading by example to
deliver sustainable Weir and working in
partnership with customers to accelerate
sustainable mining.
Our evolved sustainability strategy has given us greater
clarity and new focus on what matters most: internally, our
people, operations and ways of working through deliver
sustainable Weir; and externally, on solving our customers’
biggest sustainability challenges through accelerate
sustainable mining.
→Read more about our sustainability strategy on page 22
Highlights in 2024
Sustainability is at the core of our We are Weir strategy. We
continued to make progress across all elements of the
strategy in 2024, with performance measured via priority KPIs.
– Our total incident rate (TIR) was unchanged at 0.42 with lost
time incidents flat year on year.
– Employee net promoter score (eNPS) of 47 is in the top
quartile of Peakon's manufacturing benchmark.
– Absolute scope 1&2 emissions are down 27% against our
2019 baseline, so we are well on track to achieve our 2030
SBTi target for a 30% reduction.
– In 2024 we increased overall avoided emissions by 171% to
442,894 t CO subscript 2 e (2023: 163,564 t CO subscript 2 e) including a
contribution from the addition of GEHO® pumps.
→Read more on our strategic progress on pages 23 to 34
Evolving our governance
We refreshed Board-level governance of the sustainability
strategy and our technology strategy by establishing the Safety,
Sustainability and Technology Committee in early 2024. During
the year, we further developed our ESG assurance roadmap,
with oversight from the Audit Committee, and expanded
assurance over our ESG-related KPIs to cover TIR and eNPS.
→Read more about our Safety, Sustainability and Technology
Committee on pages 97 to 98
→Read more about our sustainability data, systems and
assurance on page 57
Strategy and reporting
We continue to mature our sustainability strategy following our
double materiality review in 2023 and ensure this is embedded
in assurance and systems plans. Our focus is on the most
strategic areas, and in 2024 we reviewed high-priority topics
from our materiality matrix, identifying areas for further
improvement.
We also assessed future reporting requirements such as the
International Sustainability Standards (ISSB) and EU Corporate
Sustainability Reporting Directive (CSRD), as well as extending
our disclosure in areas such as CDP Water for the first time.
Although the reporting landscape continues to evolve, our
approach is designed to ensure we focus on the most
material impacts, risks and opportunities.
→Read more about our double materiality assessment
at global.weir/sustainability/doublemateriality
→Read more about our ESG strategy, goals and progress
on page 57
Planning our transition to a low carbon economy
Our approach to climate risk is a critical element of Weir’s
strategy. It will drive many opportunities in our markets as
mining scales up to meet the demands of the energy
transition and cleans up by adopting new technology to
reduce its energy, water and waste impact. We also need to
manage physical risks across our operations and value chain
and deliver sustained emissions reductions, as set out in our
SBTi-approved targets.
In 2024, we supported the recommendations of the UK
Transition Plan Taskforce by speaking at its launch event in
London during April. We also reviewed our emissions against
our 2030 SBTi targets. In scope 1&2, we are well on track to
deliver our target to reduce emissions by 30% versus a 2019
baseline. In scope 3, emissions have risen since 2019 and so
we have reviewed our scope 3 2030 forecast in 2024 to
assess risks vs our SBTi target (see page 52). As well as our
success in promoting more energy efficient technologies, we
depend on the rate of decarbonisation of electricity supply.
We aim to publish an update to our climate transition plan
during 2025.
→Read more about our climate transition plan in the
TCFD report on page 52
→Read more about our engagement on transition plans
at global.weir/sustainability/TPT panel discussion
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47
Sustainability review: Avoided emissions
Overview
Quantifying avoided emissions is a key strategic programme
for Weir and supports our ambition to accelerate sustainable
mining by helping us develop compelling customer value
propositions. Our assessments can inform how we can save
money, energy and CO subscript 2 e emissions per tonne of ore
processed, helping our customers to differentiate solutions
and understand the benefits of their investments. The
solutions we have assessed are step-change offerings that
have significant potential to avoid CO subscript 2 e emissions associated
with the mining of critical minerals needed for the transition
to a low carbon economy.
Reducing energy use and avoiding emissions
in comminution processes
In comminution – the process of crushing rock into tiny
particles to expose the entrapped mineral so it can be
extracted later in the mining process – our High Pressure
Grinding Rolls (HPGR) technology can deliver substantial
energy and CO subscript 2 e benefits versus conventional technologies.
Last year, we reported the avoided emissions impact of
HPGR-based comminution circuits that became operational
in 2023; we have now built on this progress by quantifying
the impact from solutions that became operational
during 2024.
Reducing energy use and avoiding emissions
in tailings and dewatering applications
Weir’s GEHO® piston diaphragm pumps are a positive
displacement pumping solution which act as an efficient
option for transporting slurry (a mixture of solids and liquids),
particularly when there is a high solids content. For the first
time this year, we have quantified the avoided emissions
benefits of GEHO® pumps in tailings or mine-dewatering
projects that became operational during 2024, compared to
other less-efficient pumping technologies.
2025 target
Our 2025 target is to increase tonnes CO subscript 2 e (t CO subscript 2 e) avoided
using our solutions - see page 120
for more details.
Total emissions avoided (t CO subscript 2 e)
Circuit type
2024
2023 Note 1
HPGR-based
comminution circuits
430,108
163,564
GEHO® pumps
12,786
–
Total avoided emissions from
all qualifying solutions
442,894
163,564
Avoided emissions calculation
We have calculated avoided emissions data for HPGR-based
comminution circuits that became operational in 2023 and
2024, and GEHO® pumps that became operational in 2024,
by comparing the impact of these solutions with the
expected performance of conventional technologies.
Annualised impacts include the yearly avoided emissions
of solutions that became operational in previous reporting
years that are still in use during the current reporting year.
For HPGR-based comminution circuits, we calculate circuit-
level savings by applying specific outcomes from our
previous archetypal study (see global.weir/AE-study) to the
key performance attributes of each installation, based on
calculated power consumption, design capacity, run time,
ore type and location-specific emissions factors. In selected
cases, a revised third-party methodology Note 2 , recognised by the
Global Mining Guidelines Group (GMG), has been applied to
better evaluate the specific energy consumption of the
comminution circuits being compared, leading to a modest
restatement of the 2023 baseline measure we reported
previously.
For GEHO® pumps, we calculate avoided emissions by
applying operational efficiency assumptions to the key
performance attributes of each installed pump, based on
the calculated power consumption that is required to
achieve the specified slurry flow rate and operating
discharge pressure, as well as run time and location-specific
emissions factors.
Methodology and notes
Calculation approach
Avoided emissions are calculated according to the World Business Council for
Sustainable Development (WBCSD) Guidance on Avoided Emissions, using a year-
on-year timeframe and attributional approach with a medium/company specific
specificity level. The use phase only is assessed for both the solution and the
reference scenario. Reference scenarios are defined on a case-by-case basis,
using the most likely alternative technology at each site, normally tumbling mill-
based circuits for comminution and centrifugal pumps for GEHO® applications.
Verification
The 2023 and 2024 assessments have been externally verified to a limited level of
assurance by SLR Consulting. A copy of the assurance statement can be found on
our website at global.weir/2024/sustainability/SLR_assurance. The assurance work
included a review of the avoided emissions data and supporting methodology for
completeness, accuracy and appropriateness. Previous verification has included
limited assurance of our archetypal study (see global.weir/AE-study) and a high-
level review of cradle-to-grave life cycle assessment data showing that
operational emissions represent the overwhelming majority (more than 99%) of
emissions across the system life cycle.
Acknowledgements and limitations
We comply with the three eligibility gates of the WBCSD guidance:
i) our SBTi targets and scope 1, 2 & 3 CO subscript 2 e emissions are externally reported at
global.weir/sustainability
ii) the solution aligns to the Intergovernmental Panel on Climate Change (IPCC)
mitigation options for energy efficiency; and material efficiency/demand
reduction; and to EU Taxonomy activities: installation, maintenance and repair of
energy efficiency equipment; and
iii) the solution has a direct and significant decarbonising effect.
Avoided emissions are reported separately from our greenhouse gas inventory
and we do not claim them as a contribution towards climate neutrality. We do not
report absolute life cycle CO subscript 2 e emissions for the solution and reference scenarios
because differential assumptions may be used to calculate the avoided
emissions results. Potential negative side effects have been assessed and we are
confident that the solutions currently in-scope have no trade-offs elsewhere. Our
solutions often consume less water than the reference scenario and do not
generate more waste or pollution. We plan to complete a comprehensive
screening versus the ‘Do No Significant Harm’ (DNSH) criteria of the EU Taxonomy
to support these points. Application of our technologies is likely to be in situations
- greenfield mine sites, or brownfield expansions - where production is likely to
increase. However, global mineral production is driven by market demand, which
is not sensitive to the emissions profile of production. We therefore consider
rebound effects to be minimal. We do not report revenues for solutions where we
have quantified avoided emissions at present, for reasons of commercial
confidentiality. However, we have started to track revenues in line with the EU
Taxonomy and propose to report these in future, subject to the complexity around
accounting rules and our focus on quantifying impacts when our technologies
become operational, which may differ from the year of sale.
Note 1. 2023 results are restated to reflect changes in the methodology and data
used for selected installations, resulting in more representative calculations
and claims.
Note 2. GMG, 2021: The Morrell method to determine the efficiency of industrial
grinding circuits. See: https://gmggroup.org/wp-content/uploads/2024/07/
GUIDELINE_The-Morrell-Method-to-Determine-the-Efficiency-of-Industrial-
Grinding-Circuits_2021-1.pdf.
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48
Sustainability review: TCFD
We continue to embrace and embed TCFD reporting
We believe that companies should be transparent about how they plan to mitigate and be resilient in the face of climate change and enable a just transition. The disclosures set out in the
narrative on pages 49 to 54
are consistent with the four recommendations and 11 recommended disclosures set by the Task Force on Climate-related Financial Disclosures (TCFD). The table
below also provides references to where you can find more information on our climate-related actions throughout our Annual Report. In preparing our disclosure, we have taken into account
the 2021 TCFD Annex (where appropriate).
Pillar/description
Recommendation
Reference points Note 1
Governance
Disclose the organisation’s
governance around climate-
related risks and
opportunities.
Describe the Board’s oversight of climate-related risks
and opportunities.
Governance section – page 49
Governance framework – page 80
Safety, Sustainability and Technology Committee
report - pages 97-98
Compliance Scorecard – page 104
ESG measures (Audited) – pages 135-136
Describe management’s role in assessing and
managing climate-related risks and opportunities.
Governance section – page 49
Governance framework – page 80
Strategy
Disclose the actual and
potential impacts of climate-
related risks and opportunities
on the organisation’s
businesses, strategy and
financial planning where such
information is material.
Describe the climate-related risks and opportunities
the organisation has identified over the short, medium,
and long term.
Strategy section – pages 49-50
Risks and opportunities – pages 53-54
Risk management – page 61
Describe the impact of climate-related risks and
opportunities on the organisation’s businesses, strategy,
and financial planning.
Strategy section – page 50
Transition Plan – page 52
Risks and opportunities – pages 53-54
Sustainability strategy - page 22
Viability statement – pages 71-72
Financial Statements: Basis of preparation –
page 168
Describe the resilience of the organisation’s strategy,
taking into consideration different climate-related
scenarios, including a 2°C or lower scenario.
Strategy section – page 50-51
Risks and opportunities – pages 53-54
Strategic progress: Technology - pages 26-27
Board activities and principal decisions - page 82
Risk management
Disclose how the organisation
identifies, assesses and
manages climate-related
risks.
Describe the organisation’s processes for identifying and
assessing climate-related risks.
Risk management section – page 51
Strategy section – page 50-51
Risk management – page 61
Describe the organisation’s processes for managing
climate-related risks.
Risk management section – page 51
Strategy section – page 49-50
Risks and opportunities – pages 53-54
Risk management – page 61
Technology principal risk – page 64
Market principal risk – page 67
Describe how processes for identifying, assessing
and managing climate-related risks are integrated into
the organisation’s overall risk management.
Risk management section – page 51
Risk management – page 61
Risk management roles and responsibilities –
page 62
Climate principal risk – page 68
Metrics and targets
Disclose the metrics and
targets used to assess and
manage relevant climate-
related risks and opportunities
where such information is
material.
Disclose the metrics used by the organisation to assess
climate-related risks and opportunities in line with its
strategy and risk management process.
Metrics and targets section – page 51-52
Strategic progress – pages 26-31
Key Performance Indicators – page 36
Transition Plan – page 52
Risks and opportunities – pages 53-54
ESG measures (audited) – page 135-136
Disclose scope 1, scope 2, and, if appropriate, scope 3
greenhouse gas (GHG) emissions, and the related risks.
Metrics and targets section – page 51-52
Avoided emissions - page 47
Transition Plan – page 52
Scope 1, 2 and 3 GHG emissions – pages 55-56
Describe the targets used by the organisation to manage
climate-related risks and opportunities and performance
against targets.
Metrics and targets section – page 51-52
Transition Plan – page 52
Strategic progress – pages 26-31
Note 1. Bold = TCFD consistent disclosure; Standard = additional information.
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The Weir Group PLC Annual Report and Financial Statements 2024
49
Sustainability review: TCFD
continued
Governance
The climate-related governance structure for 2024 is
summarised below and aligns with the underlying Group
model on page 80.
Board
Weir Group’s purpose is to enable the sustainable and
efficient delivery of the natural resources essential to create
a better future for the world. The Board considers climate-
related issues when setting annual budgets and business
plans and overseeing major capital expenditure, acquisitions
and divestments.
Any changes to the Company’s purpose, strategy and values,
including in relation to the climate-related aspects of these
topics, are reserved for the Board for approval in accordance
with the matters reserved to the Board.
The Board is responsible for reviewing and guiding the risk
management process. Climate has been identified as a
principal risk for the Group with updates provided to the
Board three times a year.
Safety, Sustainability and Technology Committee
The Board has established a Safety, Sustainability and
Technology Committee with a role to provide strategic and
governance oversight to explore the future of the mining
industry and the implications of the Weir Group’s fully
integrated business model, which includes overseeing
climate-related matters. The Committee performs a
governance role in overseeing sustainability performance
against agreed sustainability and climate-related metrics
and targets and providing feedback to the Board or relevant
Board sub-committees, such as recommendations to the
Remuneration Committee on sustainability and climate-
related KPIs in bonus schemes. The Committee also conducts
an annual deep dive on the Weir's sustainability strategy and
climate-related targets and the Chair of the Committee
feeds back those discussions to the Board. The Committee is
supported by the Chief Strategy and Sustainability Officer
(CS&SO) and management representatives across the
Group, with responsibility to deliver and report against their
climate-related priorities. In addition, the Committee, where
appropriate, has sought external input to widen the
discussion on climate-related matters. More can be found on
pages 97 to 98.
The Audit Committee
In 2024 it was agreed that the Audit Committee would keep
under review the effectiveness of the internal controls and
systems for reporting non-financial data, and the related
assurance activity. This includes climate-related data, where
appropriate. The Audit Committee is informed about, and
considers, climate-related matters through its work to
oversee the impact of climate on the financial statements. Its
review of results of the scope 1&2 compliance scorecard
responses (presented by management) also enables the
Audit Committee to monitor and oversee progress against
goals and targets for addressing climate-related issues (see
page 104).
Remuneration Committee
The Remuneration Committee considers and agrees
scorecard metrics for safety and sustainability, including
climate-related matters, on an annual basis.
Nomination Committee
The Nomination Committee considers sustainability and
climate in its succession considerations. For example, the
experience of Andy Agg in ESG matters (including his
involvement in the 'Accounting for Sustainability Network'')
was considered in his appointment.
Group Executive
The Group Executive are responsible for reviewing the
sustainability strategy and progress against priorities,
including climate, annually in advance of the Group's
strategic planning cycle, to ensure integration with business
strategy. With the establishment of the Safety, Sustainability
and Technology Committee in 2024, the residual
Sustainability Excellence Committee accountabilities have
been subsumed into the Group Executive and any material
climate-related emergent topics will be presented to the
Group Executive for input and discussion as required. Annual
climate-related KPIs on the Group Balanced Scorecard (see
pages 135 to 136) are also defined annually and reviewed
quarterly by the Group Executive as part of the Group
Executive annual schedule, alongside the other ESG metrics
that collectively make up half of the balanced scorecard.
Chief Executive Officer (CEO)
The CEO reports directly to the Board and is responsible for
planning Group climate-related objectives and strategy for
Board approval, along with ensuring the effective delivery of
Group strategy.
Chief Strategy and Sustainability Officer (CS&SO)
The CS&SO is the Group Executive member with
management responsibility for climate-related matters
and reports directly into the CEO. This includes developing
and implementing climate transition plans, assessing
and managing climate-related risks and opportunities,
and integrating climate-related items into Group strategy.
The CS&SO agrees management recommendations on
climate-related topics with the Group Executive,
provides climate-related updates to the Safety,
Sustainability and Technology Committee and is informed
about climate-related issues through input from their
specialist internal team, as well as various working groups
and third-party advisers.
Strategy
Risks and opportunities identified
The risks and opportunities table on pages 53 to 54
outlines
the Group's most material financial risks and opportunities
and considers their potential impact on financial
performance and position in the future. We also track other
identified climate-related risks and opportunities that
currently have a potential financial impact that is less than
our materiality threshold, which includes carbon pricing risk
and cost of capital opportunity from our 2021 and 2023
Sustainability-Linked Notes and Revolving Credit Facility. Risks
and opportunities are prioritised based on their strategic
importance and potential financial impact.
Our risk assessment materiality threshold is defined in
accordance with set financial thresholds on pages 53 to 54
. In
this context, our materiality threshold is a gross risk or
opportunity of 5% of current year operating profit. Our time
horizons, also on pages 53 to 54
, are in line with our Risk
Assessment Criteria and align to the time horizons used in
our strategic planning cycles. We recognise that climate-
related issues often manifest themselves over the medium
and longer terms, and this is reflected in our own medium
and long-term horizons of 3 to 5 years, and +5 years
respectively. We have not identified any potential climate-
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The Weir Group PLC Annual Report and Financial Statements 2024
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Sustainability review: TCFD
continued
related issues that could have a material financial impact on
the Group arising in our short-term (0-3 year) time horizon.
Risks and opportunities process
We assess the impacts of physical and transition risks and
opportunities identified in our risk management process,
as outlined on page 51
, to quantify financial impact and
compare to materiality thresholds previously mentioned.
These assessments are validated annually as part of our
strategic plan with Divisions asked to confirm those risks and
opportunities that are of most relevance to them, and have
the most significant potential financial impact on their plans.
We also annually review the financial impact of all climate-
related risks and opportunities to consider factors that may
change their materiality status, such as the EU Carbon Border
Mechanism Adjustment for our carbon pricing risk, and the
potential interest savings from our 2023 Sustainability-Linked
Notes. Outputs are monitored by the CS&SO and changes to
risks and opportunities are reported into the Group Executive
as required. There were no changes to our risks and
opportunities in the year.
Impact on business, strategy and financial planning
Our sustainability strategy is outlined on page 22
. We are
already adapting our strategy to address climate-related
risks and opportunities, including through:
– ‘Deliver sustainable Weir’ with focus on reducing our scope
1&2 CO subscript 2 e footprint as well as management of waste, water
and biodiversity within our own operations; and
– ‘Accelerate sustainable mining’ with focus on the impact of
our equipment to use less energy, use water wisely and
create less waste. This is linked to our scope 3 CO subscript 2 e and
avoided emissions workstreams.
Climate-related risks and opportunities are also considered
as part of the mergers and acquisitions process, including
assessment of energy and water consumption, carbon
footprint, physical risks, contribution to Weir’s
climate-related technology opportunities and impacts on the
wider Weir network.
Note 2 to the Group financial statements (page 168) outlines
how we have considered potential climate impacts in our
financial statements. This is further evidenced by the financial
commitments within our Transition Plan on page 52. The
outputs from our scenario analysis described in the next
section have also been used in our viability assessment
(see pages 71 to 72).
Climate-related issues are considered in the financial
planning processes in a number of ways:
– Validation of risks and opportunities through the annual
five-year strategic planning process with our Divisions,
along with an assessment of related strategic initiatives.
We actively track for indicators of a faster global transition
requiring additional investment allowing us to deploy
capital flexibly where needed.
– Our ten-year operations CO subscript 2 e forecasting model provides
an aligned view of the impact of planned production,
facility and energy changes to help plan future capital
requirements.
– As noted on page 135, we introduced a new annual target
for avoided emissions for 2024, approved through the
bonus scheme process, which will be embedded and
managed through the financial planning process.
– We have a cross-functional working group to oversee 2025
planned updates to the capital expenditure process to
more fully embed climate-related topics within the
decision-making process and capture data to support
future disclosures.
Overall, there is no material impact to current financial
performance and both capital and operating expenditure
needs to meet our 2030 CO subscript 2 e targets have been assessed
and built into our strategic plans.
Scenario analysis and resilience of our strategy
We have used scenario analysis to assess risks in greater
depth and assess resilience, working with Willis Towers
Watson (WTW) to model our physical and transition risk
scenarios as outlined below:
– Physical risk: After identifying risks in the 2020 TCFD review,
as described in the Risk management section, we
modelled potential increases in extreme weather risk under
two physical climate scenarios: less than 2 degrees of
warming, applying physical climate scenario RCP 2.6; and 4
degrees of warming, applying RCP 8.5. We assessed
financial exposure in terms of the maximum foreseeable
one-off loss for facilities most at risk to flood risk beyond
2040, based on potential costs of damage and business
interruption at facilities most exposed. The potential
impacts are considered material and are included in our
risk and opportunity disclosure on page 54.
– Transition risk: After the 2020 TCFD review, we conducted
detailed quantitative scenario analysis in 2021 to quantify
risks and opportunities related to markets for key minerals
from the transition to a low carbon economy. The analysis
was then updated in 2023 for three different scenarios:
i.
Business as usual (BAU) is based on market expectations
derived from the International Energy Agency (IEA) Stated
Policy Scenario, with temperatures exceeding +2°C by
2100 vs pre-industrial levels.
ii.
2DS considers a transition to a low carbon economy in
line with the Paris Agreement, based on IEA’s Sustainable
Development Scenario (SDS), assuming an orderly global
transition limiting warming to well below 2°C by 2100.
The scenario achieves net zero emissions by 2050 in
developed nations and global net zero by 2070 through
a forced (pushed by policy), but economically optimised,
trajectory constrained to a carbon budget.
iii. An additional 1DS scenario with the same parameters
as 2DS but faster transition limiting warming to 1.5°C by
2100 and global net zero emissions by 2050.
Our analysis highlighted accelerated movement in
commodities in the 2DS and 1DS scenarios, driven by
technology changes such as electrification, growth in battery
storage and electric vehicles, as well as the shift away from
fossil fuels. It considered consequent impacts on Weir’s
business in terms of revenue trends from customers
operating in each commodity. The analysis assumed no
actions in our business strategy to mitigate the impact of
declining commodities or leverage the opportunity from
future facing minerals under the faster transition scenarios,
and so can be deemed a worst case. Outcomes are shown
on page 53
.
In addition to the scenario analysis work performed in 2021,
we consider the resilience of our overall five-year strategy,
including climate-related risks and opportunities, through
annual PESTLE (Political, Economic, Social, Technological, Legal,
and Environmental) analysis with the output provided to the
Board as part of the strategic plan review process (see page
82 for more information).
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Sustainability review: TCFD
continued
Overall, we believe our strategy is resilient and that we are
well positioned to address emerging climate-related risks
and opportunities and meet our target to grow faster than
our markets. Our global network has wide reach and flexible
capacity to meet changing customer demands under all
three considered scenarios and we have invested in recent
years to expand capacity in key growth markets. We are
meeting customer demands for new technology through our
technology strategy (see pages 26 to 27) and we are
optimising our operations to drive up energy efficiency,
increase renewable energy and protect against physical risks.
Risk management
Group principal risk
Climate is included in the Group’s principal risk register due
to the wide implications on the Group’s performance and
reputation (see page 68). This risk was first added as a
principal risk in 2019 and was previously called 'Environmental
Sustainability'. It was identified and assessed in accordance
with the Group’s Risk Management policy on page 61, before
being updated in 2021 to incorporate the outputs from our
TCFD assessments (see below), with our risk indicators
updated to align with TCFD categories of policy and legal,
technology, market, reputation and physical risk. The principal
risk is managed at a Group level with the CS&SO assigned as
the Group Executive principal risk-owner. Updates to the risk
are managed through the risk process outlined on page 62.
Identification and assessment of climate-related risks
Our 2020 TCFD review was designed to identify and assess
climate-related risks as follows:
– Physical risk: As a business with operations across the
world, we are exposed to risks of extreme weather events
disrupting our facilities or supply chain networks. We
performed scenario analysis to identify risks related to
physical impacts of climate change – such as direct
damage to property or ability to supply customers. The
assessment concluded that we are exposed to physical
risks with a potential to cause business interruption, in
particular, flood risks at facilities. Further information is on
page 54.
– Transition risk: The first step of our approach was to
identify plausible transition risks, over a time horizon of
ten years. Transition risk types considered followed those
prescribed by the TCFD framework, covering market,
reputation, technology and regulatory factors, including
existing and emerging regulatory risks. We identified a
shortlist of 12 topics in a survey of Senior Management
within each Division and assessed risks and opportunities
for each in greater detail through an approach aligned with
Weir's risk assessment criteria summarised on page 61,
including in-depth interviews and workshops with subject
matter experts and an assessment of likelihood and
potential impact of each risk and opportunity. We also
considered any existing or potential responses. The review
highlighted markets as the most material risk and
technology as the most material opportunity, so these
were reviewed in more detail, with scenario analysis
performed to quantify potential impact of the market risk
(further information on pages 50 to 51). We have also,
where possible, further assessed and validated the impact
of other transition risks, such as the financial quantification
of our carbon pricing exposure.
Our 2020 TCFD review allowed us to identify and assess
climate-related risks in isolation first, before subsequently
considering their relative significance alongside other,
non-climate-related risks. The 2020 TCFD review ultimately
informed the Group's principal risk on climate, as well as
identifying links to other principal risks, enabling a more fully
informed and integrated risk management process.
Managing climate-related risks
The disclosure on pages 53 to 54
set out the actions to
mitigate our material climate-related risks. As noted on page
49 to 50, climate-related risks are prioritised based on their
strategic importance and potential impact in line with
financial materiality thresholds.
In terms of making decisions to mitigate, transfer, accept or
control climate-related risks, we followed a similar risk
management approach as outlined on page 61, considering
the severity of each risk (using the impact and likelihood
outputs from TCFD assessment) and the effectiveness and
efficiency of internal controls. In 2021, we updated our
climate principal risk to embed further climate-related
mitigating actions. This process also highlighted links to our
technology and market principal risks, on pages 64 and 67
respectively, which incorporate climate-related actions to
mitigate overall Group exposure, such as R&D investment to
develop more sustainable technologies.
We continually monitor our climate-related risk exposure
through our risk management framework that underpins our
Group principal risk (see above), as well as being informed by
the strategic planning process as outlined on page 50.
Metrics
Key climate-related metrics and targets
The primary metrics we consider when assessing and
managing climate-related risks and opportunities are
as follows:
– Scope 1&2 emissions (see page 55)
– Scope 3 emissions (see page 56)
– R&D as % of sales (see page 36)
– Avoided emissions (see page 47)
These metrics link to our key climate-related targets and
commitments as summarised in our Transition Plan summary
on page 52. More information on performance in the year
can also be found in our Technology and Performance
strategic progress sections (see pages 26 to 31
). Scope 1&2
and avoided emissions are subject to limited assurance from
SLR and scope 3 is subject to limited assurance by
PricewaterhouseCoopers LLP (see page 56).
2024 measures
We embed climate-related measures within our
remuneration policy to drive strategic action to improve our
overall performance of the key metrics above. Our 2024
climate-related measures are summarised in the
Remuneration report on pages 135 to 136
, and include the
following:
– continued reduction in scope 1&2 emissions versus the
2019 baseline; and
– developed our targets for avoided emissions and progress
priority R&D projects. In 2023, we established our avoided
emissions baseline and set a target for 2024, which was
embedded in our bonus scheme (see page 135). Over
time, we expect this to impact our future scope 3
emissions as we drive customer uptake of more energy
efficient products with reduced emissions (see Transition
Plan section on page 52).
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Sustainability review: TCFD
continued
Other metrics
In addition, we consider a range of financial and operational
metrics when assessing climate-related risks and
opportunities in line with our strategy. These are included in
our risks and opportunity disclosure on pages 53 to 54
and
Performance strategic progress on page 30. Although we
recognise these metrics’ connection to climate, we do not
currently use these as our key metrics for the assessment
and management of climate-related issues.
Additionally, we provide a more detailed emissions
breakdown within our CDP Climate disclosure and we
separately report energy consumption in operations and
product fuel economy data in our Sustainability Accounting
Standards Board (SASB) disclosure. Furthermore, we
completed the CDP Water questionnaire for the first time
in 2024 disclosing basic water-related data that we will
continue to build on in future years. Our CDP and SASB
disclosures are available in the Sustainability section of
our website1.
We are continuing to evolve our metric and target framework
and are taking actions to strengthen quality and governance
of underlying data, as well as being committed to reviewing
our KPIs and metrics as part of our transition to reporting
under ISSB and CSRD in future periods (see page 57).
Note 1 Links to website:
– CDP (both Climate and Water) and SASB reporting can be found on our
website at global.weir/sustainability/sustainability-performance-and-
reporting/
– Transition Plan can be found at global.weir/Transition-plan.
Transition Plan summary
The summary below sets out key elements of our Transition
Plan in line with TCFD requirements. The plan is published in
full on our website1, and we aim to publish an update to our
Transition Plan during 2025.
Scope 1&2 emissions – c.0.5% of our footprint
This category includes emissions from our operations within
our management control, including energy used in
manufacturing and other facilities. One challenge for Weir is
that we manufacture a high proportion of products in our
own foundries and therefore recognise a higher proportion
of emissions in scopes 1&2 than if we were to export
emissions to scope 3 by contracting out manufacturing.
Our scope 1&2 targets are as follows:
– SBTi approved 2030 Target: 30% reduction in absolute CO subscript 2 e
vs 2019 baseline (aligned to SBTi well below 2 degrees)
– 2050 Target: Net Zero
The 2030 emissions reduction will continue to be
achieved through:
– Energy efficiency initiatives, with a focus on emissions
hot spots, particularly our foundries.
– Low carbon electricity supply, including on-site
renewable generation, green contracts, power purchase
agreements and, where necessary, Renewable Energy
Certificates (RECs).
– Purchase of offsets is not part of our transition plan to 2030.
Annual capital expenditure and operating costs required to
deliver the plan have been assessed at around £0.5m to £1m
across the period, and are considered non-material to our
business plan. We remain well on track to meet our 2030
targets, having achieved 27% reduction in 2024 vs 2019 –
see GHG Emissions data on page 55.
For 2030 to 2050, net zero requires economically viable
low carbon alternatives to natural gas and other fuels to
be used within our facilities. We continue to explore
technology and energy supply options and have not yet
quantified unabatable emissions or potential offsets
required beyond 2030.
Scope 3 emissions – c.99.5% of our footprint
The overwhelming majority, c.98%, of Weir Group’s end-to-
end carbon footprint is attributable to downstream value-
chain scope 3 emissions, specifically the use phase of our
long-lifespan products and solutions on our customers’ sites.
Our scope 3 target is therefore focused on our
downstream footprint:
– SBTi approved 2030 target: 15% reduction in use of
sold products vs 2019 baseline (aligned to SBTi well
below 2 degrees).
We have a compelling shared goal with our customers
to reduce our scope 3 footprint. Through our technology
strategy (pages 26 to 27
), we develop new or improved
technologies to improve energy efficiency in key mining
processes. We have also developed our avoided
emissions value proposition to drive take-up by customers
(see page 47).
Due to inherent uncertainties in calculating scope 3, we take a
continuous improvement approach to review our processes
and data and disclose any restatements in a timely and
transparent manner. We have restated our 2023 emissions
as a result of improvements in data collection (see page 56).
Delivering against our 2030 target depends substantially on
external factors beyond our direct influence or control,
notably the rate of adoption of low carbon energy by our
customers and grid decarbonisation, given that the majority
of our equipment is already powered by electricity,
accounting for around 90% of use of sold product emissions.
Our scope 3 target is based on emissions factors for
customers purchased electricity aligned to the IEA Stated
Policy Scenario. However, our scope 3 footprint continued to
rise between 2019 and 2023 due in part to business growth
and sales to countries with high electricity emission factors.
Following the data improvements described above, we
reviewed our scope 3 2030 forecast in 2024 and concluded
that despite a 9% reduction in use of sold product emissions
in 2024 (see page 56), our 2030 scope 3 target is at risk.
Achieving it will depend on accelerated action to
decarbonise electricity grids. We continue to engage
externally in favour of energy efficiency and the low carbon
energy transition, as described on page 46. We intend to
keep our scope 3 target under review based on the overall
electrification and decarbonisation journey of the jurisdictions
in which our customers utilise our equipment.
The main cost to support our plan is R&D investment which is
already core to our business strategy (see page 36).
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Sustainability review: TCFD
continued
Description
Categorisation
Impact
Summary
Both risk and opportunity
Risk 1
Changing
customer
behaviour
Decreased revenues due
to reduced demand for
products and services
from declining.
mining sectors
Category:
Transition – market
Time horizon Note 1
Likelihood
Magnitude Note 2
Potential financial impact Note 3
Risk: c.£120m per annum revenue under
2DS scenario; c.£210m per annum
under 1DS
Opportunity: c.£70m per annum revenue
under 2DS scenario; c.£310m per annum
under 1DS
Cost of response:
£46.6m costs per annum
Metric – Commodity as % of revenue:
Risk commodities (at constant currency)
– coal, oil sands and iron ore 22% (2023:
24%; 2022: 24%)
Opportunity commodities (at constant
currency) – copper, nickel and lithium
28% (2023: 26%; 2022: 28%)
Longer-term trends in demand patterns for key minerals are projected to change
during the transition to a low carbon economy. Weir sells products and services to
customers producing fossil fuels and certain minerals that are due to decline during
the transition (coal, oil sands and iron ore), as well as future-facing commodities that
are due to increase (copper, nickel, lithium and cobalt).
We describe on page 50 to 51 our analysis of forced commodity market scenarios,
constrained by carbon budgets. In 2024, similar to prior years, we compared the
commodity market forecasts in our five-year strategic plan with those in the ten-year
climate scenario analysis. We found that our five-year planning assumptions broadly
align with the BAU scenario, particularly for the biggest commodities with most material
impact on risks and opportunities. We noted greater variation between external data
sources for timelines beyond five years and for commodities with a smaller impact on
our revenue. Overall, we considered that BAU is largely built into our existing plans. The
financial impact for both the risk and opportunity is, therefore, the difference in revenue
between BAU and the 2DS and 1DS scenarios per annum by 2033. The assessment
indicated that overall net revenue impact in 2033 would be about -£50m under the
2DS scenario, with a revenue downside of £120m for risk commodities and upside of
£70m for the opportunity commodities. Under the 1DS scenario, this switched to a net
opportunity of around £100m, due to the £210m downside in coal, oil sands and iron
ore, being outweighed by a greater upside of £310m in copper, nickel, lithium and
cobalt. ESCO Division is proportionately more exposed to downside risks. The potential
impact would develop over a number of years, not as a one-off event, and the
potential financial impact does not take account of mitigating actions, so can be
deemed worst case.
Opportunity 1
Changing
customer
behaviour
Increased revenues due to
greater demand for
products and services from
growing mining sectors
Category:
Transition – market
Time horizon Note 1
Likelihood
Magnitude Note 2
We monitor ongoing commodity-related data with recurring annual cost of £0.1m.
Actions in our strategic plan mitigate the impact of declining commodities and
leverage the opportunity from future-facing minerals in line with the BAU scenario,
with contingency plans to manage a faster transition. We are well placed to manage
transition risk due to long planning cycles in the mining sector, flexibility within our
network, active tracking of market signals and ongoing resilience testing. In addition,
our R&D capital allocation targeting 2% of annual revenue means we continue to
provide compelling offers relevant to customer needs to scale up future facing
commodities, meet iron ore demand from the low carbon steel sector and manage
assets in declining sectors as efficiently and sustainably as possible. R&D in 2024
totalled £46.5m.
Note 1. Our Risk Horizons as defined in our Risk Assessment Criteria are: up to 3 years – short; 3 to 5 years – medium; 5+ years – long.
Note 2. Our Risk Assessment Criteria for the magnitude impact of gross risk are based on operating profit: >20% profits – high; 10-20% profits – medium to high; 5-10% of profits – moderate ; 0-5% profits – low Impact Score.
Note 3. Potential financial impact is shown as increase or decrease in revenue or cost. Risk 2 also includes estimated profit impact.
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54
Sustainability review: TCFD
continued
Description
Categorisation
Impact
Summary
Both risk and opportunity
Risk 2
Increased severity and
frequency of events
Impact of flood
(coastal, fluvial,
pluvial, groundwater)
Category:
Physical – acute
Time horizon Note 1
Likelihood
Magnitude Note 2
Potential financial impact Note 3
£30m one-off cost
Cost of response
£0-0.1m per annum cost
Metric:
We track our exposure through our
financial impact and monitor disruption
at our sites, of which there were no
major incidents in the year
As a business with operations across the world, we are exposed to risks of extreme
weather events disrupting our facilities or supply chain networks. As outlined in the
Strategy section on page 50 to 51, we modelled potential increases in extreme weather
risk under scenarios for <2°C and +4°C of warming and then assessed the maximum
foreseeable one-off loss, based on potential costs of damage and business
interruption at facilities most exposed to flood risk under a +4°C scenario beyond 2040.
Analysis identified an aggregate one-off loss range across the Group of between
£0-30m reflecting a combination of replacement of physical assets and gross profit
exposed to climate-related risks. The results were shared across the Group’s
operations, to reinforce both the appropriateness of our existing physical risk mitigation
strategies and inform decisions on future risk initiatives and expansion plans.
We continue to monitor disruption of climate-related physical incidents at our sites,
with no significant events in 2024. In case of such events occurring, the Group
maintains robust business continuity plans and specific insurance protection to
mitigate against the extent of any operational impact that may occur.
The loss range identified as part of the scenario analysis reflected potential gross
losses before taking into consideration the Group’s controls environment. Through
a combination of existing physical defence measures and business continuity plans,
cross-divisional manufacturing capacity and the applications of insurance, the net loss
forecast would reduce to a low figure. We, therefore, categorise the magnitude of
impact as low. The cost of response reflects third-party loss control engineering
advice to assist facilities identify risks and develop mitigation solutions.
Opportunity 2
Development and/or
expansion of low-
emission goods and
services
Increased revenues
due to greater demand for
products and services
Category:
Products and services
Time horizon Note 1
Likelihood
Magnitude Note 2
Potential financial impact Note 3
£50m per annum revenue
Cost of response:
£46.6m of cost per annum
Metric – R&D as % of sales:
2024: 1.9% (2023: 1.8%; 2022: 1.9%)
We target mid to high single digit growth above market per year, driven by four factors:
sustainable solutions, integrated solutions, expanding our product range and
geographic expansion. A 5% revenue uplift on annual continuing operations revenue of
c.£2.5bn would deliver increased annual revenues of around c.£130m per annum, from
the four factors combined. We have assumed 50% of this uplift in our calculations. Weir
continues to target at least 2% of revenues investment on R&D in line with our
technology strategy on pages 26 to 27. Our focus on sustainable solutions creates a
compelling value creation opportunity as we link our goals directly with our customers,
focus investment to accelerate the technology transition in mining, and quantify
avoided emissions through our avoided emissions initiative to unlock value for
customers (see page 47). The cost of response reflects R&D in 2024 of £46.5m, as well
as recurring expenditure for the avoided emissions workstream of £0.1m.
1. Our Risk Horizons as defined in our Risk Assessment Criteria are: up to 3 years – short; 3 to 5 years – medium; 5+ years – long.
2. Our Risk Assessment Criteria for the magnitude impact of gross risk are based on operating profit: >20% profits – high; 10-20% profits – medium to high; 5-10% of profits – moderate ; 0-5% profits – low Impact Score.
3. Potential financial impact is shown as increase or decrease in revenue or cost. Risk 2 also includes estimated profit impact.
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Sustainability review: GHG emissions
Total annual GHG emissions
We have provided below our GHG emissions, as required under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, and have reported the requirements of the
Streamlined Energy & Carbon Reporting (SECR) framework. In 2024, we identified and implemented energy efficiency measures across our business, which included manufacturing efficiency
improvements, behavioural change, process upgrades and selecting energy efficient technology, such as LED lighting. Our total identified and implemented energy savings from projects
implemented in 2024 are estimated to be 11,501,794kWh.
Total scope 1&2 annual GHG emissions (continuing operations)
UK & Offshore area annual
GHG emissions (t CO subscript 2 e)
Global annual
GHG emissions (t CO subscript 2 e)
Global GHG emissions intensity (t CO subscript 2 e per
£m revenue at constant currency)
2024
2023
2019
2024
2023
2019
2024
2023
2019
Location-based Emissions
Scope 1 emissions: fuel combustion and operation of facilities
2,227
2,445
3,602
64,880
65,184
67,547
25.9
25.8
35.1
Scope 2 emissions: purchased electricity, heat and steam
2,847
3,053
4,951
93,234
94,606
121,807
37.2
37.4
63.3
Total scope 1&2 (location-based)
5,074
5,498
8,553
158,114
159,790
189,354
63.1
63.2
98.4
Market-based Emissions
Scope 2 emissions: purchased electricity, heat and steam
76
82
275
68,608
77,029
116,079
27.4
30.5
60.3
Total scope 1&2 (market-based)
2,303
2,527
3,877
133,488
142,213
183,626
53.3
56.3
95.4
UK & Offshore area annual energy use (kWh)
Global annual energy use (kWh)
Energy
2024
2023
2019
2024
2023
2019
Energy consumption used to calculated emissions
25,815,058
27,935,581
38,601,875
540,772,071
537,267,104
578,199,219
Scope 1&2 annual GHG emissions from foundries (continuing operations)
Annual GHG emissions (t CO subscript 2 e)
Proportion of global
(continuing operations)
annual emissions (%)
GHG emissions intensity
(t CO subscript 2 e per tonne of metal poured)
2024
2023
2019
2024
2023
2019
2024
2023
2019
Scope 1 emissions: fuel combustion and operation of facilities
41,452
39,903
45,151
26.2
25.0
23.8
0.5
0.4
0.4
Location-based scope 2 emissions: purchased electricity, heat and steam
67,692
67,663
85,019
42.8
42.3
44.9
0.7
0.7
0.8
Market-based scope 2 emissions: purchased electricity, heat and steam
50,001
53,087
80,452
37.5
37.3
43.8
0.5
0.6
0.8
Total scope 1&2 (location-based)
109,144
107,566
130,170
69.0
67.3
68.7
1.2
1.1
1.2
Total scope 1&2 (market-based)
91,453
92,990
125,603
68.5
65.4
68.4
1.0
1.0
1.2
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Sustainability review: GHG emissions
continued
Scope 3 total annual GHG emissions
Scope 3 category – continuing operations only
Evaluation status
2024 t CO subscript 2 e
2023 t CO subscript 2 e Note *
1.
Purchased goods & services
Relevant, calculated
506,221
527,382
2.
Capital goods
Relevant, calculated
10,631
12,064
3.
Fuel & energy related activities
Relevant, calculated
48,275
38,267
4.
Upstream transportation & distribution
Relevant, calculated
90,305
103,199
5.
Waste generated in operations
Relevant, calculated
15,530
16,964
6.
Business travel
Relevant, calculated
12,461
17,941
7.
Employee commuting
Relevant, calculated
7,944
7,980
8.
Upstream leased assets
Relevant, calculated
42
97
9.
Downstream transportation & distribution
Relevant, calculated
96
82
10. Processing of sold products
Not relevant, explanation provided
–
–
11. Use of sold products
Relevant, calculated
49,303,391
54,039,995
12. End-of-life treatment of sold products
Relevant, calculated
382
881
13. Downstream leased assets
Relevant, calculated
4,552
10,040
14. Franchises
Not relevant, explanation provided
–
–
15. Investments
Relevant, calculated
5,386
4,726
Total
50,005,214
54,779,618
Scope 3 total annual GHG emissions for year ended 31 December 2024 was subject to independent limited assurance by PricewaterhouseCoopers LLP (PwC) in 2024. For PwC's Limited Assurance report see our website at global.weir/sustainability/2024/
PwC_assurance
.
Methodology and Notes
For commentary on our progress against scope 1&2 and scope 3 emissions targets, see our Transition Plan Summary
on page 52
Scope 1&2
A detailed summary on our methodology can be found on our website at global.weir/2024/sustainability/
scope123_methodology.
In line with SECR, energy consumption data has been provided for the UK & Offshore and globally, this data was used in the
creation of our GHG emissions. Revenue for 2019 and 2023 are based on 2024 average exchange rates. 2023 constant
currency revenue is disclosed in note 4 of the Group Financial Statements. 2019 constant currency revenue is £1,925m
(continuing operations). For our foundries, the scope 1 proportion of Global continuing operations annual emissions is a
proportion of total market-based GHG emissions. Therefore, the % shown in the market-based total row does not equal the
sum of the scope 1 and market-based scope 2 rows.
Our 2024 scope 1&2 GHG emissions data have been externally verified to a limited level of assurance by SLR Consulting. A
copy of the assurance statement can be found on our website at global.weir/2024/sustainability/SLR_assurance.
Note * Scope 3
2023 category 11 is restated to reflect changes in methodology and data in 2024 to improve the accuracy of the motor power
rating (kilowatts) applied to the products we have sold and reduce the use of estimated data. These changes have increased
the total significantly. A detailed summary of our methodology and 2023 restatement can be found on our website at
global.weir/2024/sustainability/scope123_methodology. Note, prior to calculating scope 3 emissions, categories were
screened for relevance using the protocol criteria. Those listed as 'not relevant' above were all considered to make no
contribution to Weir's scope 3 emissions. It is not always possible to distinguish upstream and downstream transport so
categories 4 and 9 should be considered in aggregate. Furthermore, category 4 and 7 values for 2023 were restated following
the limited assurance by IBIS Consulting of the remaining scope 3 categories in March 2024.
Our 2024 scope 3 total annual GHG emissions for year ended 31 December was subject to independent limited assurance by
PricewaterhouseCoopers LLP ('PwC') in 2024. A copy of PwC's limited assurance report can be found on our website at
global.weir/sustainability/2024/PwC_assurance.
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Strengthen our foundations
Strengthen our foundations is a key priority of our
sustainability strategy with a focus on expectation of all
responsible businesses.
Responsible business and supply chain practices
Business practices
Responsible business practices are managed by our
compliance function, led by Group Head of Internal Audit and
Chief Compliance Officer. You can also read more about how
the Directors have regard to various matters under section
172 of the Companies Act 2006, including the desirability of
the Group maintaining a reputation for high standards of
business conduct, in the Strategic report on page 20 and in
the Governance report on page 82.
Code of Conduct
We are dedicated to doing business in an ethical and
transparent manner. The Group’s Code of Conduct (Code)
provides direction and a framework for how we expect our
people to conduct themselves on a day-to-day basis. Every
year, we provide Code training to our employees and
contingent workers, and in 2024, 96% of required employees
completed the mandatory fraud awareness module. We also
provided sanctions training to employees in higher risk roles
and regions, completed by 96% of designated employees.
To assure adherence to policies and procedures, and that
these remain robust, Internal Audit performs annual Code
audits (including employee expense reviews) at selected
Group locations (see page 104 for more information).
Ethics hotline
The Group maintains processes for employees to raise
concerns regarding unethical behaviour. This includes the
ability to report concerns through the Weir Ethics Hotline,
which is a 24-hour, multilingual service accessible via
telephone or online with the option of reporting
anonymously. The Compliance function works closely with
the business to ensure that matters raised via the Ethics
Hotline are investigated in a fair and impartial manner
consistent with the Group Investigation Protocol. Of the Ethics
Hotline cases received in 2024, 20% of them had
substantiated allegations.
To drive continuous improvement, in 2024, the Compliance
function created a new Ethics Investigation Protocol, along
with supporting procedures, to standardise and streamline
the processes for triaging ethics complaints, conducting
investigation, and monitoring remedial actions.
Human Rights
We respect the human rights of all those working for, or with,
us, and of the people in the communities where we operate.
In accordance with our Human Rights Policy, we will not do
business with companies, organisations or individuals that we
believe are not working to comparable human rights
standards or are engaged in forms of modern slavery.
In 2024, the Compliance function engaged a consultant from
Deloitte to continue the global human rights risk assessment
of our operations and supply chain. The assessment is
designed to drive additional process improvements in
managing our human rights risks in 2025. Further information
can be found in our Modern Slavery Statement (see page 58),
and we report on outcomes for safety on pages 32 to 33
, and
Inclusion, Diversity and Equity on page 33.
Anti-Bribery and Corruption
The Group's Code of Conduct and Anti-Bribery and
Corruption Policy clearly prohibit bribery and corruption in all
our business dealings, and we have a zero tolerance policy
towards bribery and corruption by Group personnel and any
third parties working on our behalf. These efforts are
supplemented by our Gifts and Hospitality Policy and Agent
and Business Partner Policy. In 2024 we created a new
standalone Sponsorship and Donation Policy to address risks
associated with increased charitable giving. We regularly
provide reminders or training to key employees about
bribery and corruption risks, and Internal Audit perform
annual audits of employee expenses and the Gifts and
Hospitality Register for compliance against our policies
(see page 104 for more information).
For third-party risk, our risk-based due diligence and
management programme enables the Group to work only
with third parties that meet our Company standards and
expectations for compliance.
Supply chain practices
We source raw materials, components and services across
the globe. Our suppliers play a critical role in our business
and our relationships with them are based on achieving the
best performance, product delivery, service and total cost in
an ethical and sustainable manner. Therefore, we expect our
suppliers to reflect the same values and behaviours. All
suppliers must abide by the minimum standards set out in
the Group Supply Chain Policy.
In 2024, the Minerals Supply Chain function continued its
responsible supply chain project that requires key suppliers
to report risk-related information about their operations via a
third-party ESG software tool, with 75% of Minerals’
procurement spend covered to date. The data insights
provided by the tool will inform planned enhancements to
supply chain due diligence and monitoring processes.
Sustainability data, systems and assurance
We refreshed Board-level governance of sustainability and
technology by establishing the Safety, Sustainability and
Technology Committee in early 2024 (see pages 97 to 98
).
During the year, our ESG assurance roadmap was reviewed
by the Audit Committee to ensure that strategic ESG KPIs are
supported by external assurance in line with sustainability
reporting requirements (see page 99). As a result, we have
expanded assurance during 2024 to cover safety total
incident rate (TIR) and employee engagement (eNPS) KPIs.
Underpinning this is a rigorous approach to cyber security,
managed through the IT governance framework (see page
69) with oversight from the Board (see page 82).
ESG strategy, goals and progress
We continue to mature our sustainability strategy following
our double materiality review in 2023, and challenge
ourselves to focus on the most strategic areas to enable
pace and impact. During the year, we reviewed all high-
priority topics from our materiality matrix to assess
governance, risk, strategy and KPIs, as well as map data
assurance and system needs. This review identified
downstream water and waste, product stewardship and
responsible supply chain as the next focus areas to address.
Our review also assessed readiness against future reporting
requirements such as the International Sustainability
Standards (ISSB) and EU Corporate Sustainability Reporting
Directive (CSRD). To help us prepare for implementation, our
focused approach to maturing our strategy is designed to
report on the most material impacts, risks and opportunities.
In the meantime, we extended disclosure in 2024 to address
questions relating to water as well as climate in our annual
submission to CDP.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
58
Sustainability and non-financial reporting
Non-financial and sustainability
information statement
The table on the right sets out our key
policies and standards that govern our
approach and due diligence, along with
references to outcomes and additional
information included elsewhere in the
Annual Report. Further information to
support our disclosure can also be found
on the following pages:
– The required information about the
business model can be found on pages 17
to 18.
– Information about medium-term key
performance indicators that are aligned to
our We are Weir strategic framework and
the Group’s remuneration policy can be
found on pages 35 to 36.
– Our climate-related financial disclosures
can be found on pages 48 to 54.
– Our principal risks are summarised on
pages 63 to 70.
Employee numbers
As at 31 December 2024, there were 11,444
people, excluding contingent workers,
employed by the Group of whom 2,203 were
female, 9,227 were male, and 14 did not
disclose their gender. As at 31 December
2024, there were nine Directors of The Weir
Group PLC Board, five of whom were male
and four were female. Excluding the
Executive Directors, there were 80 males and
19 females in our senior management team,
as defined by the Companies Act 2006. For
further diversity-related disclosures,
including our disclosures for the purposes of
the UK Listing Rules, Corporate Governance
Code and FTSE Women Leaders and Parker
Reviews, refer to the Nomination Committee
report on pages 91 to 96.
Policy
Reporting
requirement
Summary of areas covered
Section of
Annual Report
Sustainability
Strategy
Sets out our strategic priorities in relation to sustainability, covering areas such
as champion zero harm, reduce our footprint, nurture our culture and strengthen our
foundations around governance-related factors.
Page 22
Zero Harm. Every Day Note 1
Our document describes how everyone at Weir has a role to play in working together
to achieve zero harm. It covers our Zero Harm Behaviours framework which sets out
our approach to safety culture, and our SHE Management System which sets out how
we manage safety, health and environmental risk.
Pages 32
to 33
Inclusion, Diversity
and Equity Policy Note 1
Sets out our policy and ambitions in relation to inclusion, diversity and equity across Weir.
Page 33
Board Diversity Policy Note 1
Sets out the approach to diversity on the Board of Directors of The Weir Group PLC.
Page 94
Health and Wellbeing
Strategic Framework Note 1
Sets out framework for employees to access a wide range of resources in support
of their broader health and wellbeing, including mental wellbeing, at any time.
Page 32
Code of Conduct Note 1
Outlines the ethical and legal standards to which Weir Group holds its employees and
stakeholders, covering a range of areas including anti-bribery and corruption, competition
(anti-trust) law, conflicts of interest and use of Group property and resources.
Page 57
Human Rights Policy Note 1
Covers our main responsibilities in the areas of employee rights and the risk
of human rights violations in our supply chain.
Page 57
Modern Slavery
Statement Note 1
Sets out how we identify, assess and manage modern slavery risks
across our operations and supply chain.
Page 57
Group Supply Chain
Policy Note 1
Sets out the minimum standards we expect our suppliers to abide by with
respect to areas such as business ethics and legal and regulatory compliance.
Page 57
Anti-Bribery and
Corruption Policy Note 1
Prohibits bribery and corruption, whether by Weir or any third party who acts
on behalf of the Group, and sets expected ethical business behaviours.
Page 57
Gifts and
Hospitality Policy Note 1
Supplements the Code of Conduct by further describing the requirements and
process for providing business courtesies to customers and other third parties.
Page 57
Agent and Business
Partner Policy Note 1
Covers how to protect the Group from engaging with third parties who, in the course
of representing or working for the Group, could undertake improper activities such as
offering or accepting a bribe or engaging in other misconduct.
Page 57
Sponsorship and
Donation Policy
Outlines the guidelines and procedures for the sponsorship and donation activities
undertaken to ensure all such activity is conducted in a transparent, ethical, and
compliant manner.
Page 57
Key
Employees
Environment
Social matters
Human Rights
Anti-corruption
and anti-bribery
Note 1. These policies are available on our website: global.weir/
sustainability/our-governance-and-policies/
.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
59
Risk management
We operate in a complex global
environment where the effective
management of risk is fundamental
to the delivery of our strategic
objectives. Our global risk management
system is designed to provide both the
necessary level of oversight and a
consistent framework in which our
Group operations can take advantage
of attractive opportunities, while
ensuring we are not exposing the
organisation to excessive risk.
Main activities during 2024
– Geopolitical Risk – Crisis readiness processes updated and
rolled out across the Group to embed consistency of
approach in how we manage a crisis.
– Safety, Health & Wellbeing Risk – Launch of our "Zero harm,
Every Day" integrated management system aimed at
ensuring the safety, health and wellbeing of everyone
at Weir.
– People Risk – Launch of a new senior leaders Inclusion,
Diversity and Equity (ID&E) Steering Committee
spearheading initiatives aimed at embedding ID&E
principles into all facets of our operations, ensuring that
every voice is heard and valued.
– Emerging Risk – Deep dive session conducted with the
Board to further strengthen our business resilience.
Areas of focus for 2025
– Cyber Risk – Continued regulatory compliance with
new global cyber security legislation in the regions in which
we operate.
– Ethics & Governance Risk – Planned revision of the Group's
code of Conduct in 2025 to ensure alignment with our new
brand profile and strategy.
– Climate Risk – Further expansion of our avoided emission
targets, which were first set in 2023.
Risk agenda
During the year, the Board has reviewed the effectiveness of
the systems of risk management and internal control and
conducted a robust assessment of both the principal and
emerging risks potentially affecting the Group in line with the
risk appetite statement.
The risk appetite statement is the level of risk that the Board is
willing to take or tolerate to achieve our strategic objectives.
It articulates what is an acceptable level of exposure,
relative to the amount of reward we are seeking, and helps
to determine how much control or mitigating actions may
be required.
The Group's risk appetite statement, which is detailed on
page 60, considers several different dimensions, which
balance commercial performance with managing our
business in a sustainable and compliant manner.
Our appetite may vary from area to area, for example, it may
be higher where we are prepared to tolerate more risk to
achieve a specific outcome, such as entry into new countries
that offer growth opportunities.
The key principles underpinning the Group's risk appetite are:
– Risk appetite needs to be measurable, involving the use of
appropriate Key Risk Indicators (KRIs).
– Risk appetite is not a single fixed concept.
– There must be a range of appetites for the different risks
that the Group faces.
– Risk appetite must be integrated within the control culture
of the Group.
– Appetite must consider differing views at a strategic,
tactical and operational level.
– The defined risk appetite has been signed off by the Board.
Compliance with the risk appetite statement is monitored
through the Group's functional and frontline controls and
monitoring and oversight controls.
The Board will continue to review and update the risk
appetite statements to ensure they remain consistent with
the Group's strategy and environment in which we operate.
All these activities meet the Board's responsibilities in
connection with Risk Management and Internal Control set
out in the UK Corporate Governance Code 2018.
It is noted that the UK Corporate Governance Code 2024 will
apply to Weir starting 1 January 2025 except for Provision 29,
which will apply to Weir starting 1 January 2026. The Group
will report on this code in next year's annual report.
Details of the review of the internal control and risk
management systems undertaken during the year are
contained in the Audit Committee report on page 99.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
60
Risk appetite statement
The Group is strategically positioned in markets with good long-term growth prospects. We will pursue ambitious growth targets, and we are willing to accept a higher level of risk to increase the likelihood
of achieving or exceeding our strategic priorities, subject to the parameters below.
Risk
Risk appetite
Risk parameters
Sustainability
Safety, health & wellbeing
We will not undertake or pursue activities that pose unacceptable hazard or risk to the health and
wellbeing of our people or the communities in which we operate or the broader environment.
(i) No tolerance for breaches of Weir Group SHE Charter (ii) Target zero harm through
continuous improvement (iii) Adherence to our Health & Wellbeing Framework (iv) Active
community and environmental engagement.
People
We will support, develop and reward our people in keeping with local market conditions and will
encourage behaviour in line with our values and purpose.
No tolerance for breaches of (i) We Are Weir framework (ii) Weir Code of Conduct (iii)
Group and Divisional HR policies.
Climate
We will evaluate and consider material climate transition and physical risk in all major strategic
decisions and take adaptation and mitigation actions to minimise their impact.
We will monitor and maintain each of the following risk parameters within risk appetite:
(i) Physical (ii) Policy & legal (iii) Technology (iv) Market (v) Reputation.
Ethics & governance
We have no tolerance for breaches of external legal governance frameworks or internal control
systems.
No tolerance for breaches of: (i) Legislative/statutory requirements (ii) Weir Code of Conduct
(iii) International sanctions (iv) Delegated authority levels (v) Group & Divisional policies.
Growth
Technology
We will ensure that we invest appropriately in R&D to both: (i) Defend our core products to protect our
installed based aftermarket annuity model and (ii) Grow our innovation technology solution offerings,
focused on addressing our customers most strategic challenges.
Investment of R&D resources will be consistent with our purpose and Company values.
Market
We will primarily operate in mining and infrastructure markets and accept the associated cyclicality,
but will seek to minimise this risk as far as possible.
Focus growth and investment on businesses that demonstrate a high aftermarket and
offer a technology differentiator.
Country presence
We are prepared to enter new countries that offer opportunities for growth consistent with our
overall strategy. We will not enter, or will exit, countries that present a high risk of harm to our
people, damage to our reputation, or breach of international sanctions.
No tolerance for breaches of: (i) Legislative/statutory requirements (ii) Weir Code of
Conduct (iii) International sanctions (iv) Delegated authority levels (v) Group & Divisional
policies.
Organic growth
We will rigorously pursue Divisional organic growth strategies to meet our market growth
objectives.
Investment of resources will be consistent with Divisional strategies and expected mid to
high single digit % revenue growth through cycles.
Capital allocation & returns We will encourage capital expenditure in pursuit of our growth ambitions subject to Internal Rate of
Return (IRR) hurdles and capital structure targets.
Local country cash flow projections for investment appraisal purposes discounted at
country specific rates to account for risk weighted returns.
Capital structure
We are prepared to use leverage in pursuit of our growth agenda and will actively seek low-cost
debt to fund the Group but, recognising cyclicality in our end-markets, will maintain significant
headroom against our financial covenants.
We will seek to maintain the ratio of net debt/EBITDA between 0.5 and 1.5. We may exceed
this range in the short term for M&A activity but will seek to return to this range within a
12-18 month period.
Margins
Returns & profitability
We will not pursue growth at all costs; however, we expect high margins, strong returns on capital
and working capital discipline together with cash generation.
Short-term margin dilution is acceptable in gaining market entry but, over the cycle, we
aim for 20% operating margin in 2026.
Targeting free operating cash conversion of 90-100% over the medium term.
Resilience
Information security
& cyber
We have no tolerance for material cyber security incidents that impact our ability to operate as a
business, damage our reputation or lead to financial penalties.
No tolerance for breaches of Group cyber security policies or Group security and
education training.
Returns
Mergers & acquisitions
We will actively pursue M&A opportunities that enhance our strategic platform subject to meeting
investment criteria.
Post-tax returns should exceed our cost of capital within three years of the acquisition.
Risk management
continued
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
61
Risk management
The Group’s risk management and internal control
frameworks remain a core element of its Governance model.
Our Risk Management Policy defines how we expect risks
to be identified, assessed and managed throughout
the organisation.
Risks are assessed and quantified in terms of impact and
likelihood of occurrence, both before and after control
mitigation. Assessing the gross risk before control mitigation
allows the business to review the relative impact of the
existing controls by comparing the gross and net risk
assessment. Also, it allows the business to avoid expending
resources on mitigating controls and actions, which have
a negligible impact on the risk assessment.
The impact of risks is quantified across a range of factors
including financial; strategy; reputation; people and property;
ability to perform services; regulation; safety, health and
environment; investors; and funding. The Risk Management
Policy includes defined criteria for each risk impact all the way
up to Group-level assessments, thereby providing an
integrated bottom-up and top-down approach to
risk management.
Ultimately, the Board is responsible for the Group’s risk
management and internal control framework. It has set out
the decisions, and hence the level of risk, which can be
delegated to the Group Executive and Divisional and
operational company management without requiring
escalation. This is articulated in a series of Group policies
and delegated authority matrices, as well as the parameters
within the approved risk appetite statement. The Board and
Committee structure can be viewed on page 80.
The bottom-up risk reporting approach requires key risks
identified and reported at project level to be escalated to
the operating company management, which in turn may
be escalated to Divisional management, and ultimately to
the management-level Risk Committee and the Board.
This is achieved through risk dashboard reports, which are
maintained at Divisional and Group levels. The dashboards
provide a summary of the major gross risks at each
respective level, as well as a summary of the key controls
and actions and resulting net risk, and any further risk
mitigation actions required.
The Risk Committee has oversight of the Group risk
dashboard, along with a routine review of key controls
identified to manage each risk and the sources of
controls assurance.
The Board obtains assurance over risks and risk management
through the internal control framework. More information on
the internal control framework can be found within the
Corporate Governance report on page 90 and within the
Audit Committee report on pages 99-112.
Group Risk Committee
The primary purpose of the Group’s Risk Committee is to
assist the Board in its oversight of the effectiveness of the risk
management framework. It performs its role through:
– Having an overview of the key risk issues identified across
the Group;
– Ensuring that the Group risk dashboard remains relevant
on an ongoing basis;
– Reflecting the Group's risk appetite against those
identified risks.;
– Overseeing and, where necessary, directing the effective
design and operations of the Group's governance, risk
management and internal control framework; and
– Ensuring that there is adequate enterprise-wide processes
and systems for identifying and reporting emerging risks.
The Group Risk Committee convened three times in 2024
and was chaired by the Chief Financial Officer, supported by
Head of Risk. This schedule aligned with the triannual risk
updates provided to the Board. The full responsibilities of the
Committee are captured on page 62.
Emerging risks
The proactive management of emerging risk and opportunity
is regarded as a key priority for the Group, which will only
continue in importance given the ever evolving global
operating environment.
By their nature, emerging risks are deemed to be different
from our identified principal risks due to their characteristics
of ambiguity, uncertainty, volatility and difficulty to define
and quantify.
There is an acknowledgement, however, that they have the
potential for both significant strategic impact and
opportunity to create competitive advantage.
To continue to promote agility against these threats and
further strengthen our business resilience, a deep dive
emerging risk session was conducted with the Board over the
course of the year, with the priority areas identified already
aligned with the Group's principal risks.
This emerging risk review consistently highlighted the crucial
connection between the geopolitical risk landscape and the
global economic outlook. Both factors were recognized for
their significant potential to influence the Group's overall
strategy over the next decade.
Adopting this process allows the Board to remain alert to
both the internal and external emerging risk landscape and
the ability to respond and adapt accordingly.
à Read more
Risk appetite statement
See page 60
Corporate Governance report
See page 73
Audit Committee report
See pages 99-112
Risk management
continued
Strategic Report
Governance
Financial Statements
Additional Information
Risk management roles and responsibilities
The key roles and responsibilities for risk management are set out below.
Group
Risk management responsibilities
Third line of defence u
Board
Overall responsibility for the Group’s risk
management and internal control frameworks, and
strategic decision within the Group.
– Annual review and ongoing monitoring of the effectiveness of the risk
management and internal control frameworks.
– Annual review of the Group’s risk appetite.
– Assessment of the Group’s principal and emerging risks.
– Twice a year receive a report from the Risk Committee that sets out the
current assessment of each principal risk, the effect of mitigating controls
on each risk, the direction of travel of each risk versus the prior year, the
extent to which each could potentially impact the Group’s strategic goals
and any relevant findings relating to significant control failings or
weaknesses that have been identified.
– Taking decisions in accordance with the delegated authority matrices.
Audit Committee
Delegated responsibility from the Board to review the
effectiveness of the Group’s risk management
and internal control frameworks.
– Annual assessment of the effectiveness of the risk management and
internal control frameworks.
– Review of reports from management and internal and external auditors.
– Review of the results from the six-monthly self-assessment
compliance scorecards.
Second line of defence
u
Group Executive
Executive Committee with overall responsibility for
managing the Group to ensure it achieves its
strategic objectives.
– Managing risks that have the potential to impact the delivery of the
Group’s strategic objectives.
– Monitoring business performance, in particular, key performance indicators
relating to strategic objectives.
– Taking strategic decisions in accordance with the delegated authority
matrices.
– Escalating issues to the Board as required.
Group Risk Committee
Management Committee responsible for
governance of the Group’s Risk Management
Policy and framework.
– Review of the design and operation of the Group’s Risk Management Policy
and framework.
– Identification and assessment of the key risks facing the Group,
identification of the key controls mitigating those risks and identification of
further actions where necessary.
– Identification and review of emerging risks and opportunities.
– Review of the Divisional risk dashboards, considering the appropriateness
of management’s responses to identified risks and assessing whether
there are any gaps.
– Review of the Divisional risk dashboards, considering the appropriateness
of management’s responses to identified risks and assessing whether
there are any gaps.
– Reporting key Group and Divisional risks to the Board.
Chief Executive’s Safety Committee
Safety Committee with responsibility to set and
monitor the Group’s Safety, Health and Environmental
(SHE) principles, priorities and actions.
– Executive Committee representation to drive improvements in our safety
performance throughout the Group.
– Champion the Group’s SHE Charter, reinforcing our commitment to
maintaining a zero harm workplace.
– Ensure the strategy for SHE improvements is comprehensive, risk-based,
deliverable and balanced and built on best practice from peers, customers
and suppliers.
Management Committees
Several management-led committees, some of
which are known as Excellence Committees. These
Committees cover a wide range of subject areas
relevant to the Group and delivery of its strategy
objectives including safety, sustainability, technology,
and inclusion, diversity and equity.
– Monitoring the management of key risks across the Group associated with
the respective remits of the Management Committees.
– Monitoring performance and compliance with Group objectives, policies
and standards related to the respective remits of the Management
Committees.
– Taking decisions in accordance with the delegated authority matrices.
– Escalating issues to the Group Executive as required.
– Reviewing the results from relevant assurance activities.
– Design and administration of the Group’s compliance programme
covering core areas including anti-bribery, anti-corruption, anti-trust,
privacy, trade controls and human rights.
First line of defence
u
Divisional management
Responsible for managing the businesses within the
Divisions to ensure Divisional strategic objectives are
achieved and there is compliance with Group
policies and standards throughout their Division.
– Identifying and managing risks that have the potential to impact the
delivery of the Division’s strategic objectives.
– Monitoring performance and compliance with Group objectives, policies
and standards within the Divisions and with regard to the outputs from the
Excellence Committees.
– Taking decisions in accordance with the delegated authority matrices.
– Escalating issues to the Group Executive as required.
– Reviewing the results from relevant assurance activities.
Operating Company management
Responsible for ensuring company objectives are
achieved and business activities are conducted in
accordance with Group policies and standards.
– Identifying and managing risks that have the potential to impact the
delivery of their Company’s strategic objectives.
– Monitoring performance and compliance with Group objectives, policies
and standards within their Company.
– Taking decisions in accordance with the delegated authority matrices.
– Escalating issues to Divisional management and Excellence Committees
as required.
– Reviewing the results from relevant assurance activities.
The Weir Group PLC Annual Report and Financial Statements 2024
62
Risk management
continued
Strategic Report
Governance
Financial Statements
Additional Information
Principal risks and uncertainties
As in any business, there are risks and uncertainties that
could impact the Group's ability to achieve its strategic
objectives. Our risk management and internal control
frameworks are designed to make this less likely by clearly
identifying and seeking to mitigate the key risks.
During the year, the Board conducted a robust assessment
of the Company's emerging and principal risks, alongside the
risk appetite statements set out on page 60, meeting the
Board's responsibilities in connection with risk management
and internal control requirements in the UK Corporate
Governance Code. Each of the principal risks is assigned an
owner from among the Board or Group Senior Management
team, and a detailed review of each principal risk has been
completed in the year.
The Group's risk dashboards were reviewed, and validity of
the existing prior year principal risks were reassessed, and
consideration was given as to whether any new principal risks
have emerged, or certain risks are no longer considered to
be a principal risk. This review resulted in changes being
made to the principal risks in 2024.
The identified principal risks were subjected to a detailed
assessment based on the following considerations:
– Potential severity of each risk relative to the Group's stated
risk appetite.
– Existence and effectiveness of actions and internal controls
that serve to mitigate the risk.
– The overall effectiveness of the Group's control
environment, including assurance and any identified
control weakness.
– The extent to which each of the principal risks could impact
the Group's viability in financial or operational terms, due to
their potential effects on the business plan, solvency,
reputation or liquidity.
The principal risks set out on pages 63-70 are those that
we believe to have the greatest potential to impact our ability
to achieve the Group's strategic objectives, or which have
the greatest potential impact on the Group's solvency,
liquidity or reputation.
Key Strategy
Impacted
Not Impacted
Risk Trend
Increasing
Decreasing
No change
Viability statement
Viability statement
Political & social
Description
Adverse political action, or political and social pressures, in territories in which we operate may result in strategic, financial or personnel loss to
the Group.
Risk trend
Risk owner:
Chief Legal Officer
Impact on strategy
Why we think this is important
The Group's global operations face ongoing political and social
volatility, which is expected to persist through 2025.
Geopolitical tensions and new challenges will influence technology,
sustainability, demographics, and macroeconomics.
We must act quickly to protect our people and property and adjust to
regulatory changes that may affect our competitiveness and return on
capital employed.
How we are mitigating the risk
Active and positive engagement with various governments, elected
representatives, and trade and industry bodies enables the Group to
influence policy decisions and address specific concerns effectively.
Our strategic planning process facilitates regular assessments of
market attractiveness, while also aiding in the forecasting of potential
political and social instability within the regions where we operate.
By combining risk horizon scanning with third-party intelligence from
risk consultants, the Group is able to maintain flexibility and develop
appropriate contingency and exit strategy plans.
Key changes during 2024
Given the ongoing levels of uncertainty this risk remained high on the
Group's radar.
Amid global fragmentation and geopolitical uncertainty, the Group
continued focusing on enhancing its resilience throughout the year,
while also monitoring potential opportunities arising from such volatility.
The Group implemented several key risk initiatives, including improving
crisis response protocols and conducting comprehensive geopolitical
risk assessments. These assessments continued to differentiate
between near-term exposures and longer-term strategic risks due to
their different potential impacts.
The impact and likelihood of this risk is assessed to have remained
constant during the year.
Due to ongoing uncertainty, this risk remained a priority for the Group.
The Weir Group PLC Annual Report and Financial Statements 2024
63
Strategic Report
Governance
Financial Statements
Additional Information
Technology
Description
Failure of the Group to embrace technology, innovate and continue to develop and invest in both our core and next generation solutions and
services for our customers, leaves the Group's market-leading positions and ability to deliver on growth ambitions exposed.
Risk trend
Risk owner:
Chief Strategy &
Sustainability Officer
Impact on strategy
Why we think this is important
We need to continue to drive innovation across the Group through
investment in talent and collaboration with research partners, thus
ensuring there is a sustainable and evolving product offering
leveraging new and adjacent technologies.
Failure to achieve this could rise to the following:
– An inability to give sufficient priority to outer horizon technology
leading to an under investment/delayed development to meet
our medium to long-term performance goals.
– Failure to identify and mitigate potentially disruptive technology
trends as they appear in mining or adjacent industries.
– Failure to leverage our deep customer/market insights to develop
products and solutions that meet the most strategic needs of our
customers and other stakeholders.
– Failure to adapt our business model to capture economic value/
prevent economic loss from technological advances.
– Failure to leverage new technology to reduce costs/improve our
own operational performance.
– Failure to develop, attract and retain the talent and strategic R&D
partnerships.
– Failure to capture climate transition opportunity/mitigate risk via
our technology offering.
How we are mitigating the risk
Continued investment in our technology strategy aligned on smart,
efficient and sustainable priorities. Targeting R&D minimum spend of
2% of revenue in each financial year.
Use of new emergent technologies radar software/process with
embedded AI scanning capability to assess potential risks and
opportunities.
Strong governance around intellectual property and new material/
product launches.
Evolving WARC (Weir Advanced Research Centre) model with
strategic international research, academic and technology scanning
partnerships and funding.
Continued uplift in our AI/Digital capability (people, process, data and
technology) supported by our strategic acquisition and partnership
strategies.
Key changes during 2024
We further enhanced and embraced our AI-driven disruptor
fore-sighting, technology scouting, and customer scanning capabilities.
These improvements are now hosted on a single, unified platform,
streamlining our approach and maximising efficiency.
We leveraged our new branding initiative to continue to build multi-level
relationships in key mining customers and other sector stakeholders to
drive even greater technology transformation adoption.
The impact and likelihood of this risk is assessed to have remained
constant during the year.
The Weir Group PLC Annual Report and Financial Statements 2024
64
Principal risks and uncertainties
continued
Strategic Report
Governance
Financial Statements
Additional Information
Value chain excellence
Description
Failure to achieve value chain excellence improvements and the associated reduction in costs and enhanced capital efficiency.
Risk trend
Risk owner:
Divisional Presidents
Impact on strategy
Why we think this is important
An effective and efficient value chain is fundamental to the Group in
maintaining its competitive advantage and continuing to create and
deliver for its customers.
Failure of the Group to drive improvements in its value chain
management presents the following risks:
– Loss of opportunity to meet our customers' needs in terms of product
volume, quality and delivery, resulting in a loss of reputation and sales.
– Failure to optimise our inventory inhibits the Group's investment
strategy and creates slow-moving and absolute inventory, ultimately
impacting our operating profit and cash conversion.
– Failure to effectively manage inflationary increases in procurement
costs as commodity prices increase leads to a reduction in our cost
competitiveness and/or margins.
– Failure to develop organisational capability to sustain and improve
operational performance results.
– Failure to create a scalable operating platform hampering value
realisation from existing businesses and future M&A synergies.
How we are mitigating the risk
Regular KPI monitoring of the value chain throughout the organisation.
Value Chain Excellence initiatives operate throughout the Group to
drive improvements, including expanding production in best cost
countries.
The Group’s forward purchase commitments are being closely
monitored to manage inventories at levels appropriate to market
conditions.
Our credit risk management procedures are under continuous
appraisal and review.
We regularly monitor market activity to ensure we remain
competitive.
Improved demand planning and forecasting, including sales and
operations planning.
Realising value from shared service initiatives.
Key changes during 2024
Progress within our Performance Excellence programme continues at
pace and is ahead of our ambitions for cumulative absolute savings.
During the year, we recognised the benefits of projects launched at the
start of the programme including the consolidation of several Minerals
manufacturing facilities in the US and APAC as well as optimisation of
our Australian service centre and Latin American distribution footprints.
Adoption of our new lean programme, Weir Integrating Network System
(WINS), in Minerals contributed to the largest savings during the year,
driving a reduction in overall material cost as well as quality
improvements.
We opened our new ESCO foundry in Xuzhou, China, the most efficient
in our network, ensuring that we remain highly responsive to demands
from within our own supply chain.
Our value chain excellence risk was deemed stable over the course of
the year.
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Principal risks and uncertainties
continued
Strategic Report
Governance
Financial Statements
Additional Information
Safety, Health & Wellbeing
Description
Failure to adequately protect our people and customers from harm presents a significant threat to the physical and mental wellbeing of the
Group's existing and available workforce, leading to a resultant impact on productivity and our ability to meet customer demands and
expectations.
Risk trend
Risk owner:
Chief People Officer
Impact on strategy
Why we think this is important
At Weir, the subject of Health, Safety, and Wellbeing stands as a
cornerstone of our operational philosophy and corporate culture.
The wellbeing of our employees, customers, and communities is
paramount and integral to our success. Ensuring a safe and healthy
work environment fosters a positive and productive atmosphere,
which in turn enhances our overall performance and sustainability.
Our robust Health and Safety framework enables us to mitigate risks,
prevent incidents, and promote a culture of continuous improvement.
It is through this relentless pursuit of excellence that we strive to
eliminate workplace injuries and provide a supportive environment
where every individual can thrive.
How we are mitigating the risk
Weir has implemented robust health and safety policies that serve as
the foundation for its risk mitigation efforts. These policies are
designed to comply with international standards and industry best
practices, ensuring a consistent approach across all operations.
Weir has adopted globally recognised occupational health and safety
management systems, such as ISO 45001. These systems provide a
structured framework for managing health and safety risks, enabling
Weir to identify hazards, assess risks, and implement effective control
measures.
Weir monitors and reports on its health, safety, and wellbeing
performance using key performance indicators (KPIs) and metrics.
Regular audits and reviews are conducted to identify areas for
improvement and ensure compliance with established standards.
Weir offers a range of wellbeing programs designed to promote a
healthy work-life balance. These programs include fitness and
wellness activities, mental health support services, and flexible
working arrangements. Employees are encouraged to participate in
these programs to enhance their overall wellbeing.
Key changes during 2024
In 2024, the Group implemented several key initiatives to enhance the
safety, health, and wellbeing of its employees:
– Enhanced Safety Protocols: New safety measures were introduced,
including regular training sessions, updated emergency response
procedures, and the installation of advanced safety equipment.
– Health Programmes: Comprehensive health programmes were
launched, offering employees access to health screenings, wellness
workshops, and mental health support services.
– Wellbeing Initiatives: The Group expanded its wellbeing initiatives by
providing resources for stress management, promoting work-life
balance through flexible working hours, and offering recreational
activities and fitness programs.
– Employee Support Systems: A new employee assistance program
(EAP) was introduced, providing confidential counselling and support
services for personal and professional challenges.
– Increased Communication: Efforts were made to improve
communication channels, ensuring that employees are well
informed about available health and safety resources and
encouraged to provide feedback on these initiatives.
These changes reflect the Group's commitment to creating a safer,
healthier, and more supportive work environment for all its employees.
The impact and likelihood of this risk is assessed to have remained
constant during the year.
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Principal risks and uncertainties
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Strategic Report
Governance
Financial Statements
Additional Information
People
Description
Failure of the Group to develop a strong talent development system and culture, necessary to attract and develop the very best talent and
capabilities needed to execute our strategy.
Risk trend
Risk owner:
Chief People Officer
Impact on strategy
Why we think this is important
Our people represent our biggest asset and so the ability of the
Group to attract, develop and retain talent and build capability at the
pace required is fundamental to the delivery of the Group's strategic
objectives.
Our ambition to foster an inclusive, diverse and equitable workforce
that increasingly reflects the diversity of the markets in which we
operate is key to creating a purpose-driven culture where we can all
do the best work of our lives.
How we are mitigating the risk
Promotion of the Weir Group values and behaviours, Code of Conduct
and HR policies sets the standards and expectations for all our staff,
reinforcing our stated commitment to attracting and retaining the
very best people.
High performer assessments are undertaken to identify and develop
our very best talent.
Talent development and succession plans are in place and
periodically reviewed for all of our key management.
Personal development plans are set and reviewed for the effective
development of all our staff.
We continue to offer competitive compensation and benefits
packages.
Key changes during 2024
The launch of our new senior Inclusion, Diversity and Equity (ID&E)
Steering Committee in the year marked a significant step forward in our
journey to create a workplace where diversity is celebrated, and equity
is inherent in all our practices. Comprising a panel of leaders across the
business, the Steer Co is spearheading initiatives aimed at embedding
ID&E principles into all facets of our operations, ensuring that every voice
is heard and valued.
To further enhance the depth, diversity, and quality of its people, the
Group has developed and introduced a series of succession planning
metrics into its balanced scorecard process. This initiative is aimed at
ensuring a strategic approach to talent management, fostering a
culture of continuous development, and securing the future leadership
pipeline.
Over the course of the year, our people risk was assessed as remaining
stable.
Market
Description
Changes in key mining markets, including commodity prices and macroeconomic conditions, have an adverse impact on customers'
expenditure plans. Fundamental market structure changes could alter the long-term economics of the business.
Risk trend
Risk owner:
Chief Financial Officer
Impact on strategy
Why we think this is important
The Group acknowledges the market risks posed by ongoing electoral
upheavals around the globe, which may precipitate further
macroeconomic disturbances and an increase in protectionist
policies.
These political shifts have the potential to exacerbate uncertainties in
the market, leading to a risk of short-term market contraction.
Additionally, we recognise that heightened inflationary pressures
combined with lower commodity pricing could contribute to
increased caution among customers.
Such dynamics may disrupt logistics flows and influence the balance
of supply and demand within the commodity market.
How we are mitigating the risk
The Group’s aftermarket-focused business model and emphasis on
enhanced technology aim to reduce costs and improve efficiency,
helping to mitigate the risk of future downturns.
The Group's strategic planning process uses extensive market
intelligence to aid in forecasting opportunities and declines in
markets.
Key changes during 2024
Although global inflationary pressures and interest rate challenges
persisted, showing slight reductions in 2024, the Group continued to
navigate these with resilience. Through strategic initiatives and
operational excellence, we were successful in our continued journey of
growth and margin expansion.
Reflecting these key mitigation initiatives, our market risk was assessed
as remaining flat.
The Weir Group PLC Annual Report and Financial Statements 2024
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Principal risks and uncertainties
continued
Strategic Report
Governance
Financial Statements
Additional Information
Climate
Description
Failure to adapt to, and mitigate, climate change and the associated impact on our current or future business.
Risk trend
Risk owner:
Chief Strategy &
Sustainability Officer
Impact on strategy
Why we think this is important
Failure to adapt, manage and embrace the challenges and
opportunities presented by climate change could have a significant
impact on Weir, our people, our customers and our supply chains.
Physical risk exposures, both acute and chronic, can be characterised
by extreme weather events including floods, wildfires, heatwaves,
storms and rising sea levels that could threaten not only our own
operations, but also exacerbate geopolitical and social tensions
should these events lead to forced migration or displacement of
communities in certain regions.
The world's climate challenge and transitioning to a low carbon
economy brings with it significant opportunity for the Group. However,
failure to innovate and deliver smarter, more efficient and sustainable
solutions for our customers and, at the same time, effectively manage
our own footprint, could give rise to a number of risks ranging from
political and legal challenges, shifts in market demands and changes
in customer or community perceptions.
How we are mitigating the risk
Sustainability strategy developed via extensive multi-stakeholder
materiality assessment encompassing Environmental, Social and
Governance (ESG) areas.
CO subscript 2 e reduction strategy prioritised and being executed in both our
own operations and those of our customers and supply chain.
Deliver sustainable Weir – Reduce our footprint priority with Science
Based Target (SBTi) aligned scope 1&2 CO subscript 2 e reduction target being
delivered via combined efficiency improvements and renewable
supply optimisation.
Accelerate sustainable mining – Use less energy priority with SBTi-
aligned scope 3 CO subscript 2 e reduction target and avoided emissions
approach.
We are continuing strong engagement with stakeholders in this area.
Key changes during 2024
We have continued to embed our refreshed sustainability strategy to
deliver sustainable Weir and work in partnership with customers to
accelerate sustainable mining.
We have made great progress against our 2030 scope 1&2 SBTi targets
and are well on track to deliver our target to reduce these emissions by
30% versus a 2019 baseline.
We are actively mapping our performance against future non-financial
reporting regulations, to help us prepare to meet International
Sustainability Standards Board (ISSB) and EU Corporate Sustainability
Reporting Directive (CSRD) requirements over the coming years. To help
us prepare for implementation, our focused approach is designed to
ensure we place our best efforts on the most material impacts, risks and
opportunities.
Overall, net weighting of this risk was increased marginally in 2024, in
recognition of the heightened frequency and diminishing predictability
threat that climate change is posing to our own and our customers'
assets.
Digital
Description
Failure to exploit 'digitalisation' opportunities impacting the Group's ability to meet evolving customer expectations.
Risk trend
Risk owner:
Chief Information
Officer
Impact on strategy
Why we think this is important
To meet the needs of our customers, the ambitions of the business
and the expectations of an increasingly digital world, Weir must
prioritise and accelerate its digital evolution.
Failure to do so will negatively impact Weir's market position along
with our ability to attract the people, skills and investment needed as
a premium mining technology business.
If we fail to implement a holistic, digitalised ecosystem and culture
quickly and effectively, competitors, who successfully embed
digitalisation, will benefit and increase their market share.
Embracing digital solutions is becoming crucial for businesses to
maximise their digital investments, meet evolving customer
demands, and stay competitive in the market.
How we are mitigating the risk
The Digital Steering Group oversees our Digital Strategy and Roadmap
with annual updates and regular reviews to ensure strategic
alignment and delivery.
Through our Performance Excellence programme, we are scaling Agile
via our digital product operating model. This, along with our digital
and data community of practices, continues to optimise our digital
fitness, capabilities, and talent management.
In alignment with our Digital Roadmap, the Group's operations
continue to collaborate on the strategic planning necessary to
prioritise investment in the digital architecture and foundations
required to support the delivery of our roadmap.
Key changes during 2024
In 2024, the Group made significant progress in delivering customer
digital propositions and scaling enabling technology.
We continued to invest in technology for sustainable mining through
the maturing of our investment in our Motion Metrics and SentianAI
businesses.
We launched and continue to scale our Data and AI governance
platform (Collibra), to support our extensive use of data and AI, while
ensuring continued compliance with evolving regulations. Embracing AI
solutions to enhance productivity across the business will continue to
be a key area of investment through 2025.
Over the course of the year, this risk was assessed as remaining stable.
The Weir Group PLC Annual Report and Financial Statements 2024
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Principal risks and uncertainties
continued
Strategic Report
Governance
Financial Statements
Additional Information
Ethics & governance
Description
Interactions with our people, customers, suppliers and other stakeholders are not conducted with the highest standards of integrity and in
accordance with Group policies and procedures, which devalues our reputation.
Risk trend
Risk owner:
Chief Legal Officer
Impact on strategy
Why we think this is important
We are unwilling to accept dishonest or corrupt behaviour from our
people, or external parties working on our behalf, while conducting
our business.
If we fail to act with integrity, we are at risk of:
– Reputational damage leading to a loss of business opportunity.
– Increased scrutiny from regulators.
– Legal action from regulators, including fines, penalties and
imprisonment.
– Exclusion from markets important for our future growth.
– Failure to meet required social standards to maintain licence to
operate in our communities.
We expect all areas of the business to do the right thing and conduct
business in compliance with applicable laws, Weir Group policies and
procedures, and the highest ethical standards.
How we are mitigating the risk
The Weir Code of Conduct, along with Group policies, guides our
business operations. We provide regular training through various
methods including town hall sessions and online courses. We
continuously monitor the effectiveness of our risk management and
internal control frameworks. Internal Audit regularly reviews anti-bribery,
corruption, and financial controls across the Group. The Group
Compliance function manages our global compliance programme
and collaborates with Internal Audit to ensure adherence. An Ethics
Hotline is available for staff and the public, with timely investigations
and reports submitted to the Group Executive and Board.
Key changes during 2024
In 2024, the Group's compliance team implemented several key
initiatives to bolster ethical standards and regulatory compliance,
including:
– The deployment of awareness training in relation to the new failure
to prevent fraud offence.
– The delivery of updates to both our Human Rights Policy and human
rights risk assessment process.
– A continued focus on our approach to Modern Slavery, which
contributed to a positive impact on our corporate mental health
benchmark (CCLA) assessment, where the Group was recognised as
the “top improver” among its UK large company peers in 2024.
Risk remained stable across the year.
Information security & cyber
Description
Failure to adequately protect Weir from cyber-enabled fraud and other information security risks that can lead to operational disruption,
reputational damage, regulatory fines and/or financial impacts.
Risk trend
Risk owner:
Chief Information
Officer
Impact on strategy
Why we think this is important
Weir's global operations are heavily reliant on IT systems, tools and
infrastructure. As the scale, frequency and impact of cyber attacks
continue to evolve and increase, we recognise the significant risk this
poses to Weir and its people, and take appropriate steps to mitigate
these threats.
Weir is part of an integrated, complex supply chain, with each
member of the supply chain managing the risk of exposing each
member of the supply chain to their vulnerabilities.
Artificial intelligence powered threat actors increase the risk of
advanced hacking tools and cyber fraud, utilising techniques like
voice cloning and deep fake impersonations.
How we are mitigating the risk
We have an IT governance framework that underpins our technology
operations. The IS&T Risk and Assurance Board provides assurance
and oversight of our security posture across the business, approves
policy control and assessments in relation to cyber risk and
information technology/operational technology security.
Security incidents are managed by the cyber security operations
team and serious incidents are reported to the Group Executive.
Internal and external audits also take place regularly, providing
additional governance and resilience to our controls, as well as
highlighting opportunities to make further improvements.
We run bespoke cyber security education and awareness campaigns
throughout the year to ensure colleagues are equipped with the
knowledge and confidence they need to use technology safely and
securely.
Our technology enterprise architecture and cyber security strategy
roadmap continue to deliver improvements across the business that
will help reduce the impact of any future cyber incidents.
Key changes during 2024
The annual cyber security training was updated to be a bespoke training
course using testimony from staff to embed key cyber security good
practice. There was also a bespoke and targeted training course for the
users of our most privileged accounts.
The half-yearly assurance of our cyber security controls has been
updated to reflect operating model changes and new questions to
embed the next level of control assurance.
New cyber security policies were introduced, and policies were
consolidated to make policy adherence easier for staff.
Over the course of the year, our information security & cyber risk was
assessed as stable.
The Weir Group PLC Annual Report and Financial Statements 2024
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Principal risks and uncertainties
continued
Strategic Report
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Financial Statements
Additional Information
Competition
Description
Increasing presence of low-cost competitors with improving quality in our end-markets leads to significant pricing pressure and margin
deterioration. Disruptive technologies, or new entrants with alternative business models, could also reduce our ability to sustainably win future
business, achieve operating results and realise future growth opportunities. Continuing threat from third-party replicators.
Risk trend
Risk owner:
Divisional Presidents
Impact on strategy
Why we think this is important
Continued presence of low-cost competitors with improving quality
in our end-markets leads to significant pricing pressure and
margin deterioration.
Alternatively, increased competition forces a continual release of
longer wear life products, resulting in maintaining market share, but
cannibalising our sales volumes with difficulty in realising commercial
benefits.
How we are mitigating the risk
Horizon scanning for competitor threats, including patent searches
and applications.
Technology solutions with differentiation on engineering expertise,
aftermarket service and total costs of ownership.
Continued development of operational efficiency and improvement
plans.
Continued investment in core product design, process and materials
that provide high value.
Key changes during 2024
In 2024, we continued to focus on fostering strategic product alliances
with key customers to enhance our product offerings and strengthen
long-term relationships. Some of these key initiatives and collaborations
included:
– The Group engaging strategically with customers and key accounts
to ensure our products continued to meet evolving needs and
directly linking into product roadmaps updates and influencing R&D
activities.
– Maintaining strong governance around IP and patent protection in
order to safeguard innovations from infringement. This included the
introduction of a New Product Introduction (NPI) process for each
division.
– Launch of our new customer-centric brand strategy designed to
position the Group as the leading end-to-end technology solutions
partner for customers, supporting them in the transition to smart,
efficient, and sustainable mining.
Over the course of the year, this risk was assessed as remaining stable.
The Weir Group PLC Annual Report and Financial Statements 2024
70
Principal risks and uncertainties
continued
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
71
Viability statement
In accordance with provision 31 of the UK Corporate
Governance Code 2018, the Directors have assessed the
viability of the Group, taking into account the Group’s current
position and the potential impact of the principal risks
documented on pages 63 to 70 of the Annual Report.
Assessment period
The Directors have determined that a three-year period to
31 December 2027 is an appropriate period over which to
provide its viability statement. The Group’s key markets are
by nature cyclical and therefore, while the Group operates
a five-year strategic planning process, market cyclicality
and the related lack of visibility over commodity prices in
particular indicate that a period of three years is appropriate.
We believe that this approach presents the Board and
readers of the Annual Report with a reasonable degree of
confidence over this longer-term outlook.
Risk assessment
The Board considered the longer-term prospects of the
Group as a mining technology leader and carried out a
robust assessment of the principal risks facing the Group,
including those that could threaten its business model, future
performance, solvency or liquidity.
While the review has considered all the principal risks
identified by the Group on pages 63 to 70, the following risks
were focused on for enhanced stress testing.
– Market volatility, modelled by applying downturn scenarios
and major customer shocks.
– Technology, digital, competition and value chain
excellence, modelled by significant loss of market share
and pricing pressure in key markets.
– Information security & cyber modelled by major site
shutdown scenarios and significant disruption to
operations as a result of a cyber incident.
– A regulatory shock scenario in response to the ethics and
governance or safety, health & wellbeing risks.
– Climate, modelled by major site shutdown scenarios as a
result of severe weather and potential downside impact on
mining revenues from certain commodities as a result of
changes in markets driven by climate action.
– Political & social risks, modelled by a major economic shock
and the impact of supply chain and commodity inflation.
The Group has delivered strong financial results in the current
year and enters 2025 with a strong order book. Activity levels
in our mining markets are positive, supported by favourable
commodity prices, and we have a clear strategy to capitalise
on the attractive long-term structural trends in our markets,
including our technology strategy to accelerate sustainable
mining. However, macroeconomic and geopolitical
uncertainty persists. Therefore, recognising these
uncertainties and the potential impact on our operations, the
Directors have also considered the longer-term prospects for
the Group as part of the overall consideration of viability.
It is acknowledged that a significant change in
macroeconomic conditions or the geopolitical landscape
would cause short-term disruption. However, these risks are
mitigated by the resilience of the Group’s aftermarket-
focused business model, the geographical spread of the
Group and the strong supply chain processes in place.
These would allow the Group to adapt and remain viable.
The impact of climate change on our operations has also
been carefully considered. The Group has made
commitments to longer-term targets to align with SBTi
requirements and has conducted scenario analysis to assess
risks and opportunities related to the transition to a low
carbon economy. There continue to be no indicators that
climate change and the steps taken to achieve these targets
will impact the viability of the Group.
Process and key assumptions
The Strategic Plan, prepared bottom-up annually and
approved by the Board, is used as the basis for the viability
modelling and is supplemented with due consideration of
current trading. The key assumptions underpinning the
Strategic Plan include continued strong demand for minerals
such as copper, gold and battery metals such as nickel and
lithium driven by electrification. This translates into supportive
commodity prices, long-term economic growth and
increasing demand for our new transformative solutions for
sustainable mining as the energy transition gathers pace.
The output of this plan is used to perform debt and
headroom profile analysis, which includes a review of
sensitivity to ‘business as usual’ risks, such as profit growth,
working capital variances and return on capital investment.
The base case has been stress tested to reflect:
i.
severe but plausible downside scenario; and
ii. a highly unlikely more severe scenario.
The resulting scenarios were modelled to include a series of
individual one-off ‘shocks’, which represent the principal risks
identified, in combination with commodity price-based
market downturn scenarios. The assessment took into
consideration the potential impact on the Group’s profits and
cash flows and resulting impact on banking covenants.
The analysis indicated that the Group would be able to
comply with its current banking covenants, which are shown
in note 31 within the Group Financial Statements, and
maintain sufficient liquidity headroom within its existing
lending facilities under both scenarios. The outcome of the
modelling is supported by the following factors.
– The geographic spread of the Group’s operations helps
minimise the risk of serious business interruption or
catastrophic damage to our reputation.
– While the Group remains exposed to some cyclicality from the
markets in which it operates, it continues to have a strong
balance sheet that helps support significant liquidity.
– The Group’s ability to flex its cost base and preserve cash,
as demonstrated in 2020 with the swift actions taken in
response to Covid-19, and seen in earlier downturn years.
– While climate change actions may give rise to changes in
certain of the Group’s markets, our aftermarket-focused
and technology-differentiated business model, together
with a commodity mix biased to commodities critical to
supporting decarbonisation, gives the Group good
protection against downside risk and the ability to benefit
from opportunities in other markets.
– The Group’s ability to secure funding, most recently
demonstrated via securing the issuance of five-year
£300m Sustainability-Linked Notes in 2023, and its ability
to generate cash. In February 2024, the Group opted to
reduce the Revolving Credit Facility (RCF) from US$800m
to US$600m following strong cash generation in 2023 and
we have delivered another strong year of cash generation
in 2024. In March 2024, the Group exercised the option to
extend its RCF by one year to April 2029. The combination
of funding activity and strong cash generation provides
the Group with improved levels of liquidity over an
extended maturity profile.
Strategic Report
Governance
Financial Statements
Additional Information
These factors are considered critical in protecting the Group’s
viability in the face of adverse economic conditions and/or
the additional risks highlighted.
Review process
The Audit Committee, on behalf of the Board, have reviewed
the underlying processes and key assumptions underpinning
the viability statement. While this review does not consider all
of the risks that the Group may face, the Board considers that
this stress testing based assessment of the Group’s
prospects is reasonable in the circumstances of the inherent
uncertainty involved.
Confirmation of viability
Based on this assessment, the Directors confirm that they
have a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due
over the period to 31 December 2027.
The Strategic Report covering pages 1 to 72 of this
Annual Report and Financial Statements 2024, has been
approved by the Board of Directors in accordance with the
Companies Act 2006 (Strategic report and Directors’ report)
Regulations 2013.
On behalf of the Board of Directors
Jennifer Haddouk
Company Secretary
27 February 2025
The Weir Group PLC Annual Report and Financial Statements 2024
72
Viability statement
continued
Strategic Report
Governance
Financial Statements
Additional Information
Governance
The Weir Group PLC Annual Report and Financial Statements 2024
73
Introduction from the Chair
"
In 2024 our robust governance
framework supported delivery of
our strategic objectives through
consistent operational performance
by the business."
Barbara Jeremiah
Chair
Dear shareholder,
On behalf of the Board, I am pleased to present the
Corporate Governance report for the year ended
31 December 2024.
Strategic focus and our governance framework
This report provides details about the Board and its
Committees including our dedication to guiding our
management team in formulating and delivering on our
strategic plan and business model to drive growth and
secure the long-term success of the business. Our
governance framework, described in more detail on page 80,
promotes robust corporate governance processes and
ensures we have the right resources in place for the Group
to meet its key objectives and milestones and measure
performance against them. You can read more about some
of the Board's most important decisions in 2024, on page 82.
Stakeholder engagement
The Board is committed to understanding the views of the
Company’s stakeholders to inform our decision-making
process. This year, we held a range of investor and
shareholder meetings on a variety of different topics, and we
look forward to further dialogue at our Annual General
Meeting on 24 April 2025. The Board also maintains a variety
of effective engagement channels with our employees
around the world, as described in more detail on pages 84 to
86. We have also spent time engaging with other
stakeholders across our business. You can read more about
our stakeholder engagement on page 87, and how these
engagement processes informed our decision-making in
2024 on page 82.
Board changes
During the year, there were a number of changes to the
Board’s composition. As set out in our Annual Report last year,
Andy Agg was appointed in February 2024 and our new Chief
Financial Officer, Brian Puffer, joined on 1 March 2024. Their
technical expertise of leading transformation programmes
has been highly beneficial during this year particularly in
delivering on our strategic agenda. I was also delighted to
welcome Nick Anderson as a new Non-Executive Director in
May 2024.
Nick has a wealth of experience as a leader in international
engineering and manufacturing operations. His skills and
knowledge in growing global businesses have already been a
great asset. You can read more about Nick’s appointment
process in the Nomination Committee report on page 93.
We also said goodbye to Srinivasan Venkatakrishnan, Sir Jim
McDonald and Stephen Young during 2024. I would like to
thank each of them for their valuable contributions to the
Board over the course of their respective tenures.
Board effectiveness
At the end of 2024, the Board and its Committees were
evaluated with assistance from Lisa Thomas of Independent
Board Evaluation to ensure that we continue to operate as
effectively as possible and to provide opportunities for
further enhancements in 2025. You can read more about the
effectiveness review process, as well as an update on
progress against our objectives for 2024 and our points of
focus for the year ahead, on page 89.
On behalf of your Board, I confirm that we consider that this
Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary to
assess the Company’s position, performance, business
model and strategy.
Barbara Jeremiah
Chair
27 February 2025
Strategic Report
Governance
Financial Statements
Additional Information
Governance at a glance
Navigating our Corporate Governance disclosures
Pages
Chair’s statement on governance
73
UK Corporate Governance Code compliance statement
74
Our Board of Directors
75 to 78
Our Group Executive
79
Our governance framework
80
Board leadership and activities
81
Principal decisions
82
Shareholder engagement
83
Our culture and approach to employee engagement
84 to 86
External stakeholder engagement
87
Division of responsibilities
88
Board effectiveness
89
Risk management and internal controls
90
Nomination Committee report
91 to 96
Safety, Sustainability and Technology Committee report
97 to 98
Audit Committee report
99 to 112
Remuneration Committee report, including Directors'
Remuneration report
113 to 147
Compliance with the UK Corporate Governance Code
The Company is subject to the UK Corporate Governance Code, published by the
Financial Reporting Council in 2018. The UK Corporate Governance Code is available on
the FRC’s website: www.frc.org.uk. The Board considers that the Company has,
throughout the year ended 31 December 2024, applied all of the principles and
complied with all of the provisions of the Corporate Governance Code. This Annual
Report as a whole explains how the Company has applied the principles and complied
with the provisions of the Code. The table on the right is a guide as to where the most
relevant information can be found for each principle. From 1 January 2025, the 2024
edition of the UK Corporate Governance Code applies to the Company and we look
forward to reporting against this in our Annual Report next year.
Principles of the UK Corporate Governance Code
Pages
1. Board leadership and company purpose
A. Leadership and long-term sustainable success
75 to 78, 80 to 82
B. Purpose, values and culture
84
C. Resources and control framework
88, 90
D. Shareholder and stakeholder engagement
83, 87
E. Workforce policies and practices
84 to 86, 90
2. Division of responsibilities
F. Leadership of the Board
81 to 82
G. Board composition and division of responsibilities
88
H. Role and commitment of non-executive directors
88
I. Board support
88
3. Composition, succession and evaluation
J. Board appointments, succession and diversity
93 to 94
K. Board skills and experience
92
L. Board effectiveness review
89
4. Audit, risk and internal controls
M. Internal and external audit functions
90, 99 to 112
N. Fair, balanced and understandable assessment
73, 90, 99 to 112
O. Risk management and internal controls
90, 99 to 112
5. Remuneration
P. Remuneration policies and practices
113 to 147
Q. Development of remuneration policy
113 to 147
R. Judgement and discretion
113 to 147
The Weir Group PLC Annual Report and Financial Statements 2024
74
Strategic Report
Governance
Financial Statements
Additional Information
Board of Directors
Barbara Jeremiah (73)
Chair
Nationality: American
Independent: Yes
Date of appointment: Non-Executive Director since 1 August
2017, Senior Independent Director from 1 January 2020–28
April 2022, Chair Designate from 2 September 2021 and
Chair from 28 April 2022.
Barbara contributes considerable experience to the Board
having spent over 30 years in senior leadership roles within
Alcoa Inc., the global aluminium producer, and as the
Chairwoman of Boart Longyear Limited. She was previously a
Non-Executive Director and Remuneration Committee Chair
of Premier Oil plc and Aggreko plc and a Non-Executive
Director of Russel Metals Inc.
Barbara’s leadership and governance experience allows her
to effectively contribute to the Board. Barbara has a BA in
Political Science and is a qualified lawyer.
Key external appointments
– Senior Independent Director and member of the Audit
and Nominations Committees and Chair of the
Remuneration Committee of Senior Plc
– Senior Independent Director and member of the Audit,
Nomination and Societal Value Board Committees of
Johnson Matthey Plc
Jon Stanton (57)
Chief Executive Officer
Nationality: British
Independent: No
Date of appointment: Chief Executive Officer since 1 October
2016, Finance Director from April 2010–October 2016.
Jon became CEO in 2016 and contributes a wealth of
experience to the Board. Since becoming CEO, he has led the
Weir portfolio transformation and oversees the delivery of
the We are Weir strategic framework to create long-term
sustainable performance improvement.
He provides leadership to deliver the strategy and ensure it
aligns with our purpose and values and, in particular, our zero
harm commitments. Jon is committed to regular
engagement with stakeholders and to ensuring stakeholder
views and concerns are heard, understood and considered.
Jon joined the Board as Finance Director in 2010. Prior to that
he was a partner with Ernst & Young, where he led global
board-level relationships with a number of FTSE 100 multi-
national companies.
Jon is a Chartered Accountant and a member of the Institute
of Chartered Accountants in England and Wales.
Key external appointments
– Non-Executive Director and member of the Remuneration,
Audit and People, Governance & Sustainability
Committees of Imperial Brands Plc
Brian Puffer (55)
Chief Financial Officer
Nationality: British/
American
Independent: No
Date of appointment: 1 March 2024
Brian is an accomplished finance leader with a strong track
record. In addition, his extensive experience of business
transformation is helping the Group to execute on its
strategy and deliver the benefits of Performance Excellence.
Brian joined Weir from BP plc where he held the role of Chief
Financial and Risk Officer for BP Integrated Supply and
Trading. Prior to that, he was Senior Vice President of BP's
Global Business Services between 2012 and 2017, having
joined BP in 2009 as Senior Vice President of Group Finance.
Before joining BP, Brian spent 18 years at
PricewaterhouseCoopers, initially in various roles in the
US and UK before being appointed as partner in 2002.
Brian is both a Certified Public Accountant and a
Chartered Accountant.
Key external appointments
– None
The Weir Group PLC Annual Report and Financial Statements 2024
75
Committee membership key:
Committee Chair
Audit Committee member
Nomination Committee member
Remuneration Committee member
Safety, Sustainability and Technology Committee member
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
76
Dame Nicola Brewer (67)
Senior Independent Director,
Non-Executive Director
Nationality: British
Independent: Yes
Board of Directors
continued
Date of appointment: 21 July 2022
Dame Nicola brings deep experience of international
relations and external communications from a long and
distinguished diplomatic career. Most recently, she was Vice
Provost (international) of University College London, and prior
to that, held senior positions in the Foreign and
Commonwealth Office of the British Government. Dame
Nicola served as British High Commissioner to South Africa
between 2009 and 2013 and was the first Chief Executive
of the Equality and Human Rights Commission from 2007
to 2009.
Dame Nicola was a Non-Executive Director and Chair of the
Ethics and Corporate Responsibility Committee of Aggreko
plc from 2016 to 2021. She was also a Non-Executive Director
of London First and of Scottish Power Limited.
Key external appointments
– Non-Executive Director and member of the Sustainable
Development Committee at Iberdrola SA
– Co-Chair of the UK group of the Trilateral Commission
– Trustee of the Middle Temple Charity
Andrew Agg (55)
Non-Executive Director
Nationality: British
Independent: Yes
Date of appointment: 27 February 2024
Andy brings significant financial experience to the Board
from his role as Chief Financial Officer of National Grid plc.
Andy joined National Grid in 2008 and prior to his current
position, held several senior finance leadership roles across
the National Grid group, including as Group Financial
Controller, UK CFO and Group Tax and Treasury Director.
Andy started his career at PricewaterhouseCoopers and is a
member of the Institute of Chartered Accountants in England
and Wales.
Key external appointments
– Chief Financial Officer of National Grid plc
– Member of The 100 Group Main Committee and Chair of
the Tax Committee
Nick Anderson (64)
Non-Executive Director
Nationality: British/
American
Independent: Yes
Date of appointment: 15 May 2024
Nick brings a wealth of experience to the Board as a leader in
international engineering and manufacturing operations. Nick
was Group Chief Executive of Spirax-Sarco Engineering plc
between January 2014 and January 2024, having previously
served as Chief Operating Officer and Director EMEA for the
Group’s Steam Specialities business.
Prior to Spirax-Sarco, Nick worked for Smiths Group plc as
Vice-President of John Crane Asia Pacific based in Singapore
and President of John Crane Latin America, based in the US.
Nick also worked for Alcoa Aluminio in Brazil and Argentina,
and for the Foseco Minsep Group plc in Brazil.
Key external appointments
– Non-Executive Director of BAE Systems plc and member of
the Environmental, Social and Governance Committee, the
Innovation and Technology Committee and the
Nominations Committee
– Non-Executive Director of Spectris plc and member of the
Audit and Risk Committee and the Nomination and
Governance Committee
Committee membership key:
Committee Chair
Audit Committee member
Nomination Committee member
Remuneration Committee member
Safety, Sustainability and Technology Committee member
Dame Nicola Brewer (67)
Senior Independent Director,
Non-Executive Director
Nationality: British
Independent: Yes
Andrew Agg (55)
Non-Executive Director
Nationality: British
Independent: Yes
Nick Anderson (64)
Non-Executive Director
Nationality: British/
American
Independent: Yes
Date of appointment: 21 July 2022
Dame Nicola brings deep experience of international
relations and external communications from a long and
distinguished diplomatic career. Most recently, she was Vice
Provost (international) of University College London, and prior
to that, held senior positions in the Foreign and
Commonwealth Office of the British Government. Dame
Nicola served as British High Commissioner to South Africa
between 2009 and 2013 and was the first Chief Executive
of the Equality and Human Rights Commission from 2007
to 2009.
Dame Nicola was a Non-Executive Director and Chair of the
Ethics and Corporate Responsibility Committee of Aggreko
plc from 2016 to 2021. She was also a Non-Executive Director
of London First and of Scottish Power Limited.
Key external appointments
– Non-Executive Director and member of the Sustainable
Development Committee at Iberdrola SA
– Co-Chair of the UK group of the Trilateral Commission
– Trustee of the Middle Temple Charity
Date of appointment: 27 February 2024
Andy brings significant financial experience to the Board
from his role as Chief Financial Officer of National Grid plc.
Andy joined National Grid in 2008 and prior to his current
position, held several senior finance leadership roles across
the National Grid group, including as Group Financial
Controller, UK CFO and Group Tax and Treasury Director.
Andy started his career at PricewaterhouseCoopers and is a
member of the Institute of Chartered Accountants in England
and Wales.
Key external appointments
– Chief Financial Officer of National Grid plc
– Member of The 100 Group Main Committee and Chair of
the Tax Committee
Date of appointment: 15 May 2024
Nick brings a wealth of experience to the Board as a leader in
international engineering and manufacturing operations. Nick
was Group Chief Executive of Spirax-Sarco Engineering plc
between January 2014 and January 2024, having previously
served as Chief Operating Officer and Director EMEA for the
Group’s Steam Specialities business.
Prior to Spirax-Sarco, Nick worked for Smiths Group plc as
Vice-President of John Crane Asia Pacific based in Singapore
and President of John Crane Latin America, based in the US.
Nick also worked for Alcoa Aluminio in Brazil and Argentina,
and for the Foseco Minsep Group plc in Brazil.
Key external appointments
– Non-Executive Director of BAE Systems plc and member of
the Environmental, Social and Governance Committee, the
Innovation and Technology Committee and the
Nominations Committee
– Non-Executive Director of Spectris plc and member of the
Audit and Risk Committee and the Nomination and
Governance Committee
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
76
Board of Directors
continued
Committee membership key:
Committee Chair
Audit Committee member
Nomination Committee member
Remuneration Committee member
Safety, Sustainability and Technology Committee member
Strategic Report
Governance
Financial Statements
Additional Information
Penelope Freer (64)
Non-Executive Director
Nationality: British
Independent: Yes
The Weir Group PLC Annual Report and Financial Statements 2024
77
Board of Directors
continued
Date of appointment: 23 October 2023
Penny's extensive investment experience, as well as her
wide-ranging leadership skills across many businesses,
complement and strengthen the Board and contribute
to the delivery of the Group's strategic objectives.
Penny has a background in investment banking, having
worked for over 25 years in a wide range of roles. From 2000
to 2004, Penny led Robert W Baird's UK equities division and
prior to this she spent eight years at Credit Lyonnais
Securities where she headed the small and mid-cap
equities business.
Penny has held a number of non-executive director roles in
both public and private companies, including most recently
as Chair of Crown Place VCT Plc and as Senior Independent
Director and Chair of the Remuneration Committee of
Advanced Medical Solutions Group PLC.
Key external appointments
– Chair of AP Ventures LLP
– Non-Executive Director and Chair of The Henderson
Smaller Companies Investment Trust plc
– Non-Executive Director and Chair of Empresaria Group PLC
and Chair of the Nomination Committee
Tracey Kerr (60)
Non-Executive Director
Nationality: Australian/
British
Independent: Yes
Date of appointment: 21 July 2022
Tracey brings extensive experience in operations,
sustainability and safety in global mining businesses.
Tracey was Group Head of Sustainable Development at
Anglo American plc between 2020 and 2021. Prior to that,
she held accountability for safety, operational risk
management and sustainable development across the
Anglo American group from 2016 to 2020 and served as
Group Head of Exploration from 2011 to 2015. In her earlier
career, she held a variety of roles at Vale SA and BHP Pty Ltd.
Tracey was previously a Non-Executive Director at Polymetal
International Plc, where she chaired the Sustainability
Committee.
Key external appointments
– Non-Executive Director, member of the Nomination and
Remuneration Committees and Chair of the Sustainability
Committee of Hochschild Mining PLC
– Non-Executive Director, member of the Remuneration
Committee and Chair of the Sustainability Committee
of Jubilee Metals Group PLC
– Non-Executive Director and member of the Audit and Risk
Committee and the Sustainability and Stakeholder
Management Committee of Antofagasta PLC
Ben Magara (57)
Non-Executive Director
Nationality: Zimbabwean
Independent: Yes
Date of appointment: 19 January 2021
Ben is a seasoned mining industry leader. He contributes
extensive experience of leading global mining businesses,
which is critically important to the Board as the Group
delivers on its strategy as a focused, premium mining
technology business. Since 2019, Ben has run his own mining
advisory firm.
Prior to joining the Weir Board, Ben served from 2013 to 2019
as CEO of Lonmin Plc, the then third largest global platinum
mining company. He was a senior mining executive at Anglo
American plc, having served as Executive Vice President of
Engineering & Projects for Anglo Platinum from 2009 to 2013
and CEO of Anglo Coal SA from 2006 to 2009. Ben started his
career as a graduate with Anglo American plc after
completing his mining engineering degree at the University
of Zimbabwe.
Ben is our Designated Director responsible for employee
engagement.
Key external appointments
– Non-Executive Director, Chair of the Investment Committee
and member of the Risk and Business Resilience Committee
of Exxaro Resources Limited
– Non-Executive Director and Chair of the Remuneration
Committee of Grindrod Limited
– Member of the Advisory Board of Somika Sarlu
Committee membership key:
Committee Chair
Audit Committee member
Nomination Committee member
Remuneration Committee member
Safety, Sustainability and Technology Committee member
Penelope Freer (64)
Non-Executive Director
Nationality: British
Independent: Yes
Tracey Kerr (60)
Non-Executive Director
Nationality: Australian/
British
Independent: Yes
Ben Magara (57)
Non-Executive Director
Nationality: Zimbabwean
Independent: Yes
Date of appointment: 23 October 2023
Penny's extensive investment experience, as well as her
wide-ranging leadership skills across many businesses,
complement and strengthen the Board and contribute
to the delivery of the Group's strategic objectives.
Penny has a background in investment banking, having
worked for over 25 years in a wide range of roles. From 2000
to 2004, Penny led Robert W Baird's UK equities division and
prior to this she spent eight years at Credit Lyonnais
Securities where she headed the small and mid-cap
equities business.
Penny has held a number of non-executive director roles in
both public and private companies, including most recently
as Chair of Crown Place VCT Plc and as Senior Independent
Director and Chair of the Remuneration Committee of
Advanced Medical Solutions Group PLC.
Key external appointments
– Chair of AP Ventures LLP
– Non-Executive Director and Chair of The Henderson
Smaller Companies Investment Trust plc
– Non-Executive Director and Chair of Empresaria Group PLC
and Chair of the Nomination Committee
Date of appointment: 21 July 2022
Tracey brings extensive experience in operations,
sustainability and safety in global mining businesses.
Tracey was Group Head of Sustainable Development at
Anglo American plc between 2020 and 2021. Prior to that,
she held accountability for safety, operational risk
management and sustainable development across the
Anglo American group from 2016 to 2020 and served as
Group Head of Exploration from 2011 to 2015. In her earlier
career, she held a variety of roles at Vale SA and BHP Pty Ltd.
Tracey was previously a Non-Executive Director at Polymetal
International Plc, where she chaired the Sustainability
Committee.
Key external appointments
– Non-Executive Director, member of the Nomination and
Remuneration Committees and Chair of the Sustainability
Committee of Hochschild Mining PLC
– Non-Executive Director, member of the Remuneration
Committee and Chair of the Sustainability Committee
of Jubilee Metals Group PLC
– Non-Executive Director and member of the Audit and Risk
Committee and the Sustainability and Stakeholder
Management Committee of Antofagasta PLC
Date of appointment: 19 January 2021
Ben is a seasoned mining industry leader. He contributes
extensive experience of leading global mining businesses,
which is critically important to the Board as the Group
delivers on its strategy as a focused, premium mining
technology business. Since 2019, Ben has run his own mining
advisory firm.
Prior to joining the Weir Board, Ben served from 2013 to 2019
as CEO of Lonmin Plc, the then third largest global platinum
mining company. He was a senior mining executive at Anglo
American plc, having served as Executive Vice President of
Engineering & Projects for Anglo Platinum from 2009 to 2013
and CEO of Anglo Coal SA from 2006 to 2009. Ben started his
career as a graduate with Anglo American plc after
completing his mining engineering degree at the University
of Zimbabwe.
Ben is our Designated Director responsible for employee
engagement.
Key external appointments
– Non-Executive Director, Chair of the Investment Committee
and member of the Risk and Business Resilience Committee
of Exxaro Resources Limited
– Non-Executive Director and Chair of the Remuneration
Committee of Grindrod Limited
– Member of the Advisory Board of Somika Sarlu
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
77
Board of Directors
continued
Committee membership key:
Committee Chair
Audit Committee member
Nomination Committee member
Remuneration Committee member
Safety, Sustainability and Technology Committee member
Strategic Report
Governance
Financial Statements
Additional Information
Jennifer Haddouk (41)
Company Secretary
Nationality: French
Date of appointment: 6 January 2025
Jennifer brings strong experience in legal and corporate
services. She is a French qualified solicitor with a
background in UK, French, EU and international law having
worked in the biotechnology, pharmaceutical and
consumer sectors. Most recently, she was Group Legal
Counsel and Company Secretary at Benchmark Holdings
Plc, a UK AIM-listed biotechnology company operating in
27 countries.
Prior to the appointment of Jennifer Haddouk, and during
the 2024 financial year, Graham Vanhegan was the
Company Secretary. Graham's background and experience
can be found on page 79.
Gender diversity (full Board) as at 31 December 2024
¢ Women
4
¢ Men
5
Ethnic diversity (full Board) as at 31 December 2024
¢ White
8
¢ Black/African/Caribbean/
Black British
1
Non-Executive Director tenure as at 31 December 2024
¢ 0-3 years
5
¢ 3-6 years
1
¢ 6-9 years
1
The Weir Group PLC Annual Report and Financial Statements 2024
78
Board of Directors
continued
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
79
Group Executive
Paula Cousins (51)
Chief Strategy and
Sustainability Officer
Nationality: British
Date of appointment:
1 January 2020
Experience
Paula joined Weir in 2015 and before assuming
her current role was Group Head of Strategy and
Sustainability. Prior to Weir, Paula held a number of
strategy, commercial and engineering leadership
roles with Petrolneos, BP, McKinsey & Company,
ExxonMobil and Unilever. Paula has a BEng Hons
in Chemical and Process Engineering and an MPhil
in Chemical Engineering Research, both from the
University of Strathclyde.
Garry Fingland (60)
Chief Information Officer
Nationality: British
Date of appointment:
1 January 2020
Experience
Garry joined Weir in April 2019 and has more than
30 years' experience in leadership roles across
complex global technology organisations. Garry
was formerly Chief Information Officer (CIO) for
BUPA and served on its Executive Committee. Prior
to this, Garry was Global CIO at Serco and held
senior technology and transformation roles with
Diageo. Garry holds a BAcc from the University of
Glasgow and an MBA from the University of
Strathclyde, and is a qualified Chartered
Accountant.
Sean Fitzgerald (56)
President of Weir ESCO
Division
Nationality: American
Date of appointment:
1 December 2022
Experience
Sean joined Weir in 2022 from A.P. Moeller Maersk
where he was Chief Executive Officer of Maersk
Container Industry. Sean started his career as an
Officer in the US Army, following which he joined
Bain & Company. Sean spent nearly ten years with
General Electric as the GM of Onshore Wind
Turbines before joining Komatsu Mining
Corporation as Americas Regional VP for
Underground Mining and later as President for the
China Region. Sean holds a BS in Civil Engineering,
an MA in Economics and an MBA.
Rosemary McGinness
(61)
Chief People Officer
Nationality: British
Date of appointment:
31 July 2017
Experience
Rosemary joined Weir in 2017 from William Grant
& Sons, where she had been Group HR Director.
Having started her career in line management
with Forte Hotels, Rosemary has held a range of
positions covering all aspects of human resources
across the globe, including being based in New
York as Senior VP of HR for Bowne Business
Solutions. Rosemary is an Advisory Board Member
to the School for CEOs and the University of
Strathclyde Business School, as well as a Fellow
of the Chartered Institute of Personnel and
Development.
Andrew Neilson (49)
President of Weir Minerals
Division
Nationality: British
Date of appointment:
1 April 2020
Experience
Andrew joined Weir in 2010 as Head of Strategy
and has held a wide range of leadership roles at
Weir, including leading the integration of ESCO into
Weir and various positions within the Weir Minerals
Division. Prior to Weir, Andrew held a variety of roles
in banking, energy and professional services
companies, including HSBC, HBOS, Scottish Power
and KPMG. Andrew holds a Masters degree in
engineering from the University of Strathclyde and
is a qualified accountant.
Graham Vanhegan
(60)
Chief Legal Officer
Nationality: British/American
Date of appointment:
1 May 2018
Experience
Graham joined Weir in 2018 from international
exploration and production company
ConocoPhillips, where he held a number of senior
positions for the company across a 24-year
career. His roles included Deputy General Counsel
and VP of Business Development. A graduate of
the University of Glasgow, Graham is a solicitor
qualified to practise in both Scotland and England
and is an attorney-at-law before the State Bar of
New York, US.
Gender diversity as at 31 December 2024
■ Women
2
■ Men
6
Jon Stanton and Brian Puffer, are also
members of the Group Executive. Their
biographies can be found on page 75.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
80
Our governance framework
Below is an overview of our governance framework, showing a clear and effective division of responsibility between our Board, its Committees and operational management
(which is in turn supported by a series of management-led committees).
Board of Directors
Primary Board responsibilities
include:
–
Establishing Weir's purpose,
values and strategy
(including in relation to ESG
and cyber-related matters)
and ensuring appropriate
resourcing to meet
strategic objectives
(including oversight of
Group budget)
– Assessing and monitoring
culture, including ensuring
alignment with the Group’s
purpose, values and
strategy
– Establishing framework of
prudent and effective
controls that enable risk to
be assessed and managed
– Ensuring that workforce
policies and practices are
consistent with the Group’s
values and support long-
term sustainable success
– Approving significant M&A
transactions, capital and
other expenditure,
contractual commitments
and other corporate activity
– Approving Group dividend
policy, tax strategy and
underlying tax principles
– Overseeing the Group’s
overall corporate
governance framework
– Reviewing the means for
employees to raise
concerns in confidence
and, if they wish,
anonymously and ensuring
arrangements are in place
for proportionate and
independent investigation
of such matters
Board Committees
Nomination Committee
Leads the process for appointments, ensures plans
are in place for orderly succession to both Board and
senior management positions and oversees the
development of a diverse pipeline for succession.
à Read more
91
Audit Committee
Monitors integrity of financial statements, reviews risk
management and internal control frameworks, and
considers both effectiveness of internal audit function
and effectiveness, independence and objectivity of
external auditors.
à Read more
99
Remuneration Committee
Determines policy for Executive Director
remuneration, sets remuneration for Chair,
Executive Directors and senior management,
and considers potential application of discretion
to remuneration outcomes.
à Read more
113
Safety, Sustainability and Technology
Committee
Provides strategic and governance oversight to explore
the future of the mining industry and the implications for
the Group's fully integrated business model.
à Read more
97
Disclosure Committee
Assists with decision making on the assessment,
identification, handling and disclosure of inside
information and compliance with applicable legal
and regulatory requirements.
General Administration Committee
Undertakes day-to-day matters of a routine,
administrative or procedural nature on behalf
of the Board.
Group Executive
The Board delegates execution of the Group’s strategy and day-to-day management of the Group to the Group Executive. The Group Executive is, therefore, responsible for
ensuring that each of the Group’s Divisions and functions are managed effectively and monitoring and reporting on their performance against the Group’s key performance
indicators, as approved by the Board. The Group Executive is led by the Chief Executive Officer and comprises the CFO and the other individuals whose names and roles are
set out on page 79. The Group Executive had 12 scheduled meetings during 2024.
Management
Committees
The Group Executive is supported in its responsibilities by several management-led committees, some of which are known as Excellence Committees. These management-led
Committees cover a wide range of subject areas relevant to the Group and delivery of its strategic objectives, including safety, sustainability, technology, risk and inclusion,
diversity and equity. The Committees may also report to the Group Executive and the Board from time to time. Each Committee brings together other individuals from across
Weir with matter-specific expertise to promote coordinated delivery and information sharing.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
81
Board activities and principal decisions made in 2024
Board leadership
Weir’s success is dependent upon effective and
entrepreneurial leadership by the Board. The Board is
responsible for promoting the Company’s long-term
sustainable success, generating value for shareholders and
contributing to wider society. This includes setting the
Company’s purpose, values and strategy. Our purpose is
described on page 2 and page 84 , and a description of our
business model and strategy to support it is set out on pages
17 to 18 and 21. The Board leads the Group within a
framework of prudent and effective controls that enable the
assessment and management of risks, and seeks to ensure
that sufficient resources are available to meet the Group’s
strategic objectives.
There are a number of matters that are specifically reserved
to the Board for approval and these are set out on our
website at global.weir/investors/corporate-governance/
matters-reserved-to-the-board/. The Board delegates some
of its responsibilities to its Committees as described on page
80, all of which operate within clearly defined terms of
reference. Membership of these Committees, their
effectiveness and their remit are considered at least annually.
Board meetings
Six pre-scheduled meetings were held this year. All were held
in-person including one in Bangalore. An additional short,
virtual Board meeting was held this year to deal with an ad
hoc item arising. Board papers continue to be circulated well
in advance of meetings to allow Directors to give thorough
consideration of the issues prior to, and informed debate and
challenge at, Board meetings.
The Board continues to consider that it is meeting sufficiently
regularly to discharge its duties and consider all the matters
falling within its remit. On this basis, Board calendars for the
next four years reflect this approach and will be kept under
review for any desired evolution in approach.
The Chair seeks consensus on all items that come before the
Board but if there is a difference of opinion among Board
members, decisions are taken by majority. If any Director has
concerns about the operation of the Board or the
management of the Group that cannot be resolved through
discussion and debate, their concerns are recorded in the
Board minutes.
The Non-Executive Directors, led by the Chair, meet after
every Board meeting without the Executive Directors present.
The Senior Independent Director also ensures that meetings
are held at least annually without the Chair present to
appraise the Chair’s performance.
The table to the right sets out Director attendance at each of
the Board meetings held in 2024, and the tables in the
respective committee reports set out Director attendance
during the year at each of the Nomination, Audit,
Remuneration and the Safety, Sustainability and Technology
Committee meetings. Any Director unable to attend a
meeting still has the opportunity to review the associated
Board papers, receive an individual briefing from the
Company Secretary and provide any feedback in advance to
the Chair or the Company Secretary.
The Board agenda for each meeting is split between
strategic discussion topics, performance/reporting items
and standing/formal matters. Unless there is an agreed
change, the topics are considered in this order to ensure
there is adequate time to consider the most substantive,
strategic items.
Board meeting attendance 2024
Director
Scheduled
Ad hoc
Barbara Jeremiah (Chair)
6/6
1/1
Jon Stanton
6/6
1/1
Brian Puffer Note 1
5/5
1/1
Dame Nicola Brewer
6/6
1/1
Andy Agg Note 2
6/6
1/1
Nicholas Anderson Note 3
4/4
1/1
Penny Freer
6/6
1/1
Tracey Kerr
6/6
1/1
Ben Magara
6/6
1/1
Stephen Young Note 4
4/4
n/a
Srinivasan Venkatakrishnan Note 5
1/1
n/a
Sir Jim McDonald Note 6
2/2
n/a
Note 1. Brian Puffer joined the Board with effect from 1 March 2024.
Note 2. Andy Agg joined the Board with effect from 27 February 2024.
Note 3. Nick Anderson joined the Board with effect from 15 May 2024.
Note 4. Stephen Young resigned from the Board with effect from 31 July 2024.
Note 5. Srinivasan Venkatakrishnan resigned from the Board with effect from 31 March
2024.
Note 6. Sir Jim McDonald resigned from the Board with effect from 25 April 2024.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
82
Board activities and principal decisions made in 2024
continued
Key areas covered during 2024 by the Board
Strategy
– Annual strategy deep-dive, with sessions including
corporate finance, sustainable mining and adoption of
new technologies, Performance Excellence and
divisional strategy
– Technology and innovation strategy, including protect the
core product roadmaps, enterprise technology roadmap
and R&D input, pipeline and outcome KPIs
– IS&T digital strategy, including our work to accelerate
digitalisation, cyber security strategy and transformation
of our IS&T function
– People strategy, including our strategic priorities and
desired outcomes, and data relating to headcount,
retention, talent acquisition, and global trends across
various themes
– Corporate development opportunities
Financial and operational performance
– CEO’s business report (including safety update, Balanced
Scorecard and market analysis)
– CFO’s report (including Performance Excellence updates)
– Divisional deep-dives for Minerals and ESCO Divisions,
with sessions across the year focusing on transformation,
markets and customer experience
– Full year and half year dividend proposals, viability
scenarios and 2025 budget
Governance and risk
– Global insurance programme and risk dashboard reviews
including principle and emerging risks
– Corporate services report including governance matters
People
– Safety, health and wellbeing reports, plus employee
insight and survey reporting
– Inclusion, diversity and equity updates
When making decisions throughout the year, each Director is
aware of their duty under section 172 of the Companies Act
2006 to ensure they act in the way they consider, in good
faith, would be most likely to promote the success of the
Company for the benefit of its members as a whole. The
Board takes into account a range of relevant factors
including: the likely consequences of the decision in the long
term; perspectives from the Company’s stakeholders
(including employees, suppliers, customers and others); the
impact on the environment and the communities in which
we operate; the desirability of maintaining a reputation for
high standards of business conduct; and the need to act
fairly as between shareholders. The examples below describe
some of the principal decisions made by the Board during
the year, setting out which stakeholder groups were most
impacted by the decision and how their views were taken
into account.
Key stakeholders
Employees
Customers
Suppliers
Shareholders
Communities and
environment
Governments and NGOs
Addition of safety to the remit of the Sustainability
and Technology Committee
The Board approved adding safety to the remit of the
Sustainability and Technology Committee and a change of
name to reflect the wider remit. The decision was taken with
a long-term view to allow more time for scrutiny and
dialogue on safety matters to renew the emphasis on driving
a zero harm safety culture. In taking the decision, the Board
considered the regular safety updates received by the Board,
the tragic fatal accident suffered by one of Weir's colleagues
at work in 2024 and safety performance metrics. The Board
noted the feedback from employee engagement sessions
and surveys highlighting that safety is an essential element
of employees' wellbeing and a cornerstone of the Company's
culture. The Board also noted the importance of safety in
fostering long-term relationships with customers, suppliers
and communities.
A key safety and health-focused employee who reports to
the CEO will attend every meeting of the Committee to keep
them appraised of safety matters so that safety performance
and management can be overseen effectively by the
Committee. The Committee will report on its work in the
Annual Report next year.
Approval of maintaining the strategic plan
As part of its annual strategy review, the Board considered
the strategic plan (as described in more detail in the
Strategic Report) including assessing whether it was
appropriate to maintain the existing strategic plan. As a result
of this discussion, and after careful consideration of the
impact on its stakeholders, the Company’s financial
framework and the likely consequences of the decision in the
long term, the Board considered that the existing strategic
plan remained appropriate. Before making the decision, the
Board took into account positive shareholder sentiment on
progress to date against the strategy and the importance of
delivering consistently on performance targets for investor
confidence. The Board also considered updates from both
Divisions on customers, technology and the wider market
and a management analysis of wider political, economic,
sociological, technical, legal and environmental factors that
could impact the likelihood of, and pathways towards,
achieving the strategic plan.
In this Annual Report, and at our results days, we provide
updates on our performance against our targets and plan.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
83
Shareholder and investor engagement
Overview
The Board recognises that the continued success of the
Group depends on establishing, developing and maintaining
strong relationships with all our shareholders. Weir has a
dedicated investor relations team that runs a global
programme of engagement events across the year,
including formal presentations and events, investor
roadshows and conferences as well as individual investor
meetings.
In 2024, we engaged with more than 60% of our shareholder
base and a number of prospective investors. Meetings took
place with investors in the UK, North America, Australia and
Europe and covered a wide range of topics including
strategy, financial performance, our Performance Excellence
transformation programme, sustainability and remuneration-
related matters. Additionally, a number of investors also
attended the MINExpo industry event in September.
Throughout the year, engagement was led primarily by the
Chair and Executive Directors, with other Directors and
members of the Group Executive participating in discussions.
Our Remuneration Committee Chair, Penny Freer, has also
communicated with numerous shareholders during the year
to consult on Weir’s proposed remuneration policy, which will
be put forward at the 2025 AGM.
All Directors who participate in shareholder and investor
engagement provide regular updates to the Board on the
matters arising from those discussions. The Board also
receives periodic feedback from the Head of Investor
Relations and the Group’s brokers on share price
performance and shareholder expectations. The Board takes
the results of this engagement into account as part of
determining the Group’s strategy and making decisions on
key issues.
Annual General Meeting (AGM)
Our AGM is an important annual event, offering a constructive
opportunity to engage with shareholders in person, hear their
views and answer their questions about the Group and its
business. Last year’s AGM was held on Thursday 25 April 2024
and all items proposed were passed on a poll with well in
excess of the requisite majority for each resolution.
This year’s AGM will be held on Thursday 24 April 2025 at the
Company’s head office at 10th Floor, 1 West Regent Street,
Glasgow G2 1RW. As in previous years, we continue to
provide shareholders with the opportunity to pose their
questions to the Board in advance if desired, using a
dedicated email address: weirAGM@mail.weir
Further details are included in the Notice of Annual General
Meeting and associated proxy form.
Shareholder communications
Our website provides shareholders with regular updates on a
range of topics relevant to Weir. In addition to the information
provided in our Annual Report and periodic public
announcements, there is a dedicated investor section on our
website that includes our financial calendar, regulatory
newsfeed, information on our leadership and governance
framework, and copies of our recent publications and reports.
Shareholders can access this section at global.weir/investors
Shareholder event calendar 2024
Date
Events
February 2024
– Announcement of full year results
March/April 2024 – Post-full year results investor meetings
– In-person investor roadshows –
London and North America
– Pre-AGM meetings with shareholders
led by Chair
– Q1 interim management statement
– Annual General Meeting
May/June 2024
– In-person investor roadshows –
Australia
– JP Morgan investor conference –
London, UK
– Shareholder site visit – Todmorden, UK
July/August 2024 – Announcement of half-year results
– Post-half-year results investor
meetings
– In-person investor roadshow –
London, UK
– Bank of America Merrill Lynch
conference - virtual
September/
October 2024
– Morgan Stanley investor conference –
London
– In-person investor roadshow –
London, Europe, North America
– RBC Investor Conference –
Las Vegas, USA
– MINExpo investor booth tours –
Las Vegas, USA
November/
December 2024
– Q3 interim management statement
– Goldman Sachs Investor Conference –
London, UK
– In-person investor roadshow – Europe
– Bank of America Merrill Lynch
conference – virtual
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
84
Our culture and approach to employee engagement
Our purpose and strategy
We have a clear purpose: to enable the sustainable and
efficient delivery of the natural resources essential to create a
better future for the world. Our purpose statement addresses
the biggest challenges in our markets, from increasing
production that supports growing demand for commodities
like copper, to reducing the environmental impact of our
operations and those of our customers. Our purpose
recognises that a growing world depends on essential
resources and we believe that the sustainable delivery of
essential resources depends on Weir.
Our purpose is the driving force behind our strategy and
informs our We are Weir strategic framework.
à Read more about our purpose and strategy on pages 2
to 4 and 21
Our values and culture
Weir has always been a values-led business. Our values,
which align to our purpose and support strategic delivery, are
the guiding principles that apply across Weir to help define
the kind of business we are. Our values are:
– Thinking safety first
– Delighting your customer
– Doing the right thing
– Aiming high
– Respecting each other
Our values are supplemented by our culture statement:
– We care for, challenge and encourage each other
– We always seek to improve and innovate
– We speak up and take ownership for our shared successes
– We work together to enhance our global communities
– We are passionately, authentically ourselves
– We can’t wait
Our culture statement originated from insights generated
through extensive employee research and is used as a
touchpoint when Board and senior management review
behaviours and performance to confirm alignment between
actual and desired culture.
We seek opportunities to embed our values and culture
across our activities such as our people-related work
streams. These include our leadership development
framework, selection and assessment criteria, performance
management and development approach, employee
engagement approach and employee value proposition. All
are explicitly aligned to the expectations set out in our values
and culture statement.
As well as local implementation of We are Weir across our
sites, we issue a Group-wide weekly round-up
communication that features a wide range of global and
local achievements and other highlights that share successes
and bring to life the individual stories that collectively make
us who we are. In December 2024, we launched our Weir
values awards, a new global programme to recognise
colleagues who exemplify our values. The first awards will be
announced in April 2025.
How the Board assesses and monitors culture
The Board is ultimately responsible for ensuring that
Weir’s culture is aligned with the Group’s purpose, values
and strategy. The Board uses a range of different
methods to assess and monitor culture. These include
our Balanced Scorecard, which is considered by the Board
as a standing item at every meeting. It contains a wide
range of cultural metrics and indicators including our
safety total incident rate, our gender diversity at all job
role bands and our voluntary attrition rate.
Our Group-wide employee engagement survey is carried
out annually using a third-party survey provider. The
Board uses both qualitative and quantitative data to
review engagement trends and gain insights into the key
drivers across the broadest spectrum of employee
engagement and organisational culture. These in turn
inform strategic discussions on people-related matters.
Our 2024 survey once again saw an excellent
participation rate (88%) indicating that employees value
sharing their feedback, and providing us with rich insights
on where teams across the business can take action to
improve.
When reviewing our 2024 global survey feedback, we
used AI personas to synthesise direct employee feedback
based on key segments (such as gender, job family
group and location) to highlight intersectional trends
across the employee experience.
More information on the actions we have taken based on
our culture statement, and the associated outcomes, are
provided on page 85. The Board also receives an annual
employee insights report in which our Group Head of
Engagement consolidates findings from our wide range
of employee voice channels across the year. The insights
are specifically crafted to help shape Director decision
making and inform focus areas for the year ahead,
including the board/workforce engagement
programme led by our designated Non-Executive
Director, Ben Magara.
The Board also values its direct interactions with
employees, whether as part of site visits, Tell the Board
sessions, attendance at affinity group events, town halls
or our annual senior leadership conference. These
exchanges offer Board members the opportunity to hear
directly from employees on their experiences of our
culture and to actively reinforce and promote our culture.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
85
Our culture and approach to employee engagement
continued
Cultural actions and outcomes during 2024
Aspects of our culture
statement
Our actions
Associated outcomes
We always seek to
improve and innovate
We speak up and take
ownership for our shared
success
The Minerals Division site in Surrey, Canada adopted a ‘you said, we
heard’ approach to ensure employee feedback drives
improvement. Employees receive regular feedback on performance,
and leadership training was delivered to supervisors to improve
skills and team management. Site communications have been
enhanced with monthly town hall meetings that update all
employees on business performance, key metrics and facility news.
Leaders share audit, inspection and visits results, ensuring inclusivity
and awareness, and have worked to increase visible felt leadership
through their ‘Managers present on the floor’ programme, Gemba
walks (where leaders observe employees and ask questions to
identify areas for improvement) and regular leadership interaction.
The engagement score for our
Surrey site increased by 0.3
since the previous survey in
September 2023. In 2024, the
site had a 90% participation rate,
up12% from the previous round.
We care for, challenge
and encourage each
other
We’re passionate,
authentically ourselves
Recognition initiatives at the Minerals Division site in Perth, Australia
include standard agenda items at townhalls, monthly rewards,
appreciation lunches and team leader development. Strategy
improvements involve better communication of the Asia Pacific
region’s measures, increased leadership visibility and enhanced
employee updates. Health and wellbeing initiatives focus on
increased communication, wellness support, safety action plans,
education on reporting concerns, and encouraging constructive
feedback on safety behaviours.
The employee engagement
score at the Perth site increased
by 0.3 since September 2023
and by1 point since their first
survey in May 2020.
Overall, the site achieved 94%
participation rate, a 29%
increase since the first survey in
May 2020.
Our approach to employee engagement
We have a broad range of employee voice channels that
provide opportunities for employees to share their views and
for the Board to listen and take action based on that
feedback. For the purposes of the UK Corporate Governance
Code, we have a designated Non-Executive Director
responsible for employee engagement. We have used this
method of engagement for a number of years and continue
to consider it the most effective and appropriate method on
the basis that:
– it allows our designated Non-Executive Director to work
with our Group Head of Engagement to tailor an annual
programme of employee engagement events and
initiatives;
– it ensures all Board members are regularly updated on
employee engagement matters, while allowing our
designated Non-Executive Director to develop specific
knowledge of our employee-related opportunities and
challenges over time; and
– it provides unity and consistency of approach to employee
engagement across our complex and geographically
diverse structure.
Following the appointment of Dame Nicola Brewer as Senior
Independent Director at the end of our AGM in April 2024, Ben
Magara took over the role of Non-Executive Director
responsible for employee engagement.
The Nomination Committee recommended Ben for this role
on the basis of his global experience of working with, and
leading, mining teams and his strong commitment to our
ID&E agenda.
Employee engagement activities during 2024
Led by our designated Non-Executive Director, our Board
members undertake various types of direct employee
activities to enhance their understanding of the employee
experience at Weir and inform Board-level decision making.
The principal activities in 2024 are outlined below.
– Tell the Board discussions. These involve groups of 12-15
employees and up to four Board members. Overarching
topics relating to our culture are suggested in advance
based on employee survey feedback from the relevant site
as well as strategic priorities, but employees and Board
members are free to raise any matters they wish for
discussion. We held five Tell the Board sessions in 2024
(one virtually with members of our graduate/intern
population, three in India and one in the UK). Topics
discussed included Weir’s culture, safety and wellbeing,
ID&E and technology and innovation. During Tell the Board
sessions, employees reported positive experiences across
all of Weir’s cultural aspects and a strong feeling of
empowerment, contributing to overall job satisfaction.
Board Members noted that leadership was supportive and
committed to fostering a positive workplace culture
– Engagement with our affinity groups during site visits.
These involve individual Directors or several Board
members and often take the form of a panel/town hall
event, to allow affinity group members and allies to share
their views with the Board and ask questions. Dame Nicola
Brewer and Tracey Kerr met with the Weir Women’s
Network in India during their visit to the country in June.
They discussed gender diversity and listened to feedback
from local employees on progress and opportunities for
improvement.
The Weir Group PLC Annual Report and Financial Statements 2024
86
Our culture and approach to employee engagement
continued
– Engagement at the senior leadership conference in
Istanbul, Turkey in May 2024. Barbara Jeremiah, Ben
Magara and Penny Freer hosted a Board Q&A session with
all senior leaders at our conference in Turkey in May 2024.
Barbara and Penny also attended a breakfast with our
Senior ID&E Steering Committee to discuss our strategic
progress and ambitions relating to ID&E.
– Town halls or other large employee gatherings at a single
site. Sessions usually start with a verbal business update
from the CEO and introductory remarks from the Chair.
A straightforward hands-up approach is used to invite
questions from the floor with as many employee
participants as possible taking part. The Board hosted
a town halls at both sites visited during its visit to India
in June.
– Site visits and other 'walk the floor' activities. These are
conducted either individually, in small groups or as a full
Board. Board members enjoy the opportunity to engage
with employees ‘on the job’ and observe Weir’s culture in
action. It allows Directors to understand the local culture
and business priorities at a local level and employees are
able to ask questions and receive feedback in real time.
Nick Anderson, Penny Freer and Ben Magara undertook
individual site visits during the year.
– Informal networking between the Board and employees.
The Board looks to include networking events into as many
of its engagements as possible. In 2024, this included at
our senior leadership conference in Turkey and the Board
visit to India. Networking sessions are typically held
informally over refreshments with no particular structure
or topics pre-set for consideration.
– Access to employee communication channels. All Board
members have access to our communications channels
such as Viva Engage and attend various events online.
Direct engagement is supplemented by other periodic
reviews, reports and updates obtained through other
employee voice channels, which are provided to the Board
at regular intervals, primarily through reporting from our
Head of Engagement.
Strategic Report
Governance
Financial Statements
Additional Information
Building on employee feedback: launch of the
global mentoring programme
In response to ongoing employee feedback through our
channels, including Tell The Board sessions and Board
interactions with affinity groups, the Board has ensured
that we continued to prioritise the development of formal
mentoring programmes as a key tool in Weir.
We piloted a reverse mentoring programme in 2022 that
involved senior leaders, including our CEO and other
Group Executive members. The programme included
virtual workshops, monthly mentoring sessions and post-
completion reviews. It aimed to enhance senior
management’s understanding of ID&E-related challenges
and laid the foundation for further mentoring
interventions. The positive response from both mentors
and mentees highlighted the programme’s effectiveness
in building awareness at a senior level of employees
representing different dimensions of diversity.
Recognising the continued demand for, and value of,
mentoring, the Board has endorsed the expansion of our
mentoring efforts.
In October 2024, we launched a new global mentoring
framework to provide employees with access to internal
mentors from across Weir. The framework operates on a
self-service model facilitated through our HR
management system to allow mentees and mentors to
manage identifying and matching with each other.
The framework aims to empower employees to take
control of their development and grow in their own way,
while offering a flexible and inclusive approach to
mentoring that is accessible to all parts of the business
and hierarchy. In addition, mandatory learning
programmes and support materials help to ensure a
consistent experience.
The framework reinforces our commitment to listening to
employees and continuously improving our support for
their development. Building on the success of the reverse
mentoring programme, we are creating more
opportunities for colleagues to develop their skills, build
connections, and contribute to our culture...
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
87
Wider stakeholder engagement by the Board
Overview
The Board recognises the importance of a wide range of
stakeholders to the Group and stakeholder interests are
central to the We are Weir strategic framework. In order to
identify our stakeholders, we triangulate our purpose,
strategy and business model, as well as considering the
principal risks and uncertainties affecting the Group.
à Read more about the stakeholder groups we have
identified, the issues that matter most to them, the actions
we have taken to engage with them at a Group level and
the associated outcomes on pages 19 to 20
An overview of how the Board engaged with wider
stakeholders and maintained its understanding of their
interests during the year is set out below.
Customers
Customer proximity allows us to meet our customers’ needs
better, and creates higher barriers to entry for our competitors.
The Board receives customer insights at every scheduled
meeting as part of the CEO’s Business Report that covers
topics such as customer behaviour, localised and
macroeconomic trends, and expected and investment activity
by customers impacting the Group’s pipeline. Our Balanced
Scorecard also includes five customer-focused quantifiable
metrics, covering both strategic and ESG-related measures.
During the year, the Board also received a commercial deep-
dive briefing from each of the Divisional Presidents on
specific customer-related factors relevant to our Minerals
and ESCO businesses. Both sessions highlighted the
increasing importance of sustainability-related themes to
our customers.
As well as receiving briefings from senior management, our
Board seeks direct engagement with customers wherever
possible. During the year, our CEO visited a number of
customers at their operations to see Weir’s engineering and
digital technologies in action. He also met with customers at
the MINExpo industry event in September. All insights from
these visits are shared with the Board on a timely basis to
inform Board discussions and shape decision making.
à Read more about engagement with our customers on
page 19
Suppliers
Suppliers represent some of our most strategic relationships,
where all parties value the opportunity to collaborate and
innovate for the benefit of the broader value chain.
The Board receives updates on the supply chain as part of
the divisional deep-dive sessions from each of Minerals and
ESCO during the year. Direct engagement with suppliers is
primarily led by local management teams, with support from
the CEO and Group Executive team where appropriate.
During its visit to Bangalore, India in June, the Board visited
Accenture’s offices. Accenture is one of Weir’s key partners in
delivering our Performance Excellence programme. The
Board took the opportunity to tour the facility and engage
with management and employees at Accenture.
The Board is also aware that we source raw materials,
components and services across the globe, including in
countries and industries where the risk of modern slavery
may exist. The Board is fully committed to a zero tolerance
approach to any form of slavery and, therefore, takes
responsibility for approving the Group’s Human Rights Policy.
The Board considered and approved the Group’s Modern
Slavery Statement in February 2025.
à Read more about modern slavery at:
global.weir/siteassets/pdfs/weir-group-modern-
slavery-statement-2025.pdf
à Read more about engagement with suppliers on page 20
Communities and environment
Sustainability is central to our strategy. This means that our
impact on the communities and environments in which we
work, and their impact on us, is core to our stakeholder
engagement process. Our communities care deeply about
the safety and sustainability of our operations and Weir seeks
to be a good neighbour that operates safely and ethically.
Reinforcing our commitment to zero harm behaviours, safety
is front and centre within all Board discussions, is always
covered within the CEO’s Business Report and features in our
Balanced Scorecard. In line with our value of ‘thinking safety
first’, almost all divisional or functional reports presented to
the Board begin with a ‘safety moment’ or ‘safety share’ that
underlines the latest safety-related insights relevant to that
area of our business.
As part of its programme of regular visits to Weir sites across
the world, the Board receives updates from local teams on
ongoing community engagement. For example, in June the
Board visited Akshaya Patra Kitchen and gained a greater
understanding of associated community priorities in
Bangalore, India including the need to tackle child
malnutrition and educational inequality.
Our Balanced Scorecard contains a range of environment-
related quantifiable metrics, including reducing our own
carbon emissions against a 2019 baseline as well as
progressing research and development priority projects
aligned with our goals to move less rock, use less energy, use
water wisely, create less waste and boost with digital.
à Read more about our engagement with local communities
and environment on page 20
Governments and NGOs
The Group has a global footprint and is, therefore, impacted
by public policy and by developments in legal frameworks in
the countries in which it operates.
These issues are escalated to the Board as and when
appropriate, typically forming part of the CEO report,
divisional updates or the Corporate Services report that is
presented at every Board meeting. Political and social risk
remains one of our principal risks (see page 63 for more
detail) and the Board discusses geopolitical and
governmental considerations as part of its twice-yearly
discussion of the Group’s risk dashboard. From a UK
perspective, changes in the legal and regulatory environment
relevant to a listed company also form part of the Board’s
annual training schedule.
The Group also seeks to work with non-governmental
organisations (NGOs), often with a view to improving science,
technology, engineering and maths (STEM) education
opportunities around the world. These initiatives are typically
organised on a local or regional level to maximise the impact
and relevance of our work with NGOs for local communities.
à Read more about our engagement with governments
and NGOs on page 20
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
88
Division of responsibilities
Board composition
Details of the composition of the Board, together with their
biographies, skills, experience and knowledge, and specific
reasons why their contribution is, and continues to be, important
to the Company’s long-term sustainable success are set out on
pages 75 to78. There is a formal, rigorous and transparent
procedure for new appointments to the Board, details of which
are set out in the Nomination Committee report. As at the date of
this report, the Board comprises: one Non-Executive Chair; two
Executive Directors; and six Non-Executive Directors. We consider
the Board has an appropriate combination of Executive Directors
and independent Non-Executive Directors, and that it is of
sufficient size to ensure diversity with a combination of skills,
experience and knowledge, while still being small enough to
foster high-quality debate.
Roles and responsibilities
In accordance with the Corporate Governance Code, the
roles of Chair and Chief Executive are held separately. Full
details of the responsibilities of the Chair, the Chief Executive
Officer (CEO) and Senior Independent Director are set out in
writing and available on the Company’s website at:
global.weir/globalassets/investors/role-of-the-board/
weir-group---division-of-responsibilities---2022.pdf.
Board Committees
The written Terms of Reference of each of the Nomination
Committee, Audit Committee, Remuneration Committee
and Safety, Sustainability and Technology Committee are
available on the Company’s website at: global.weir/
investors/corporate-governance/board-committees/
Further details on the work of each of the Committees during
2024 is included later in this Corporate Governance report.
The Terms of Reference have been updated this year to
reflect changes to the Corporate Governance Code, which
are effective from 1 January 2025.
Board independence
We consider all Non-Executive Directors to be independent
for the purposes of the Corporate Governance Code. Our
Chair was also considered independent on appointment.
As a result, more than half the Board (excluding the Chair)
are independent Non-Executive Directors.
Director commitments and significant appointments
The letters of appointment for our Non-Executive Directors
set out the time commitment expected of them. All new
Directors are required to seek approval from the Board
before accepting any additional roles. When considering
whether to approve new external appointments for existing
Directors, the Board takes into account a range of factors
including: the Director’s pre-existing commitments outside
the Group; the Director’s attendance at Board and
Committee meetings; the expected time requirement of the
proposed position, factoring in the nature of the role and
associated responsibilities; and the benefits that the external
appointment may bring to both the individual Director and
the Board as a whole, by virtue of wider commercial
knowledge, expanded Board-level experience and a broader
perspective from working in a different environment. The
Company’s conflicts of interest procedure described below
is also followed.
Conflicts of interest
The Company has a formal procedure in place to manage
the disclosure, consideration and, if thought fit, authorisation
of potential conflicts of interest. Each Director is aware of the
requirement to notify the Board, via the Company Secretary,
as soon as they become aware of any potential future
conflict or any material change to a pre-existing
authorisation. Upon receipt of a notification, the Board
considers each conflict situation separately on its particular
facts, in conjunction with the rest of the potentially conflicted
Director’s duties under the Companies Act 2006. The Board
keeps records of any decisions taken, authorisations granted
and the scope of approvals given, and regularly reviews
conflict authorisations previously granted. None of the Non-
Executive Directors have any material business or other
relationship with the Company or its management.
Directors' information and advice
The Company Secretary manages the provision of accurate,
timely and clear information to the Board at appropriate
intervals in consultation with the Chair and the CEO, and
assists with ensuring that the Board has the policies,
processes, time and resources it needs in order to function
effectively. In addition to formal meetings, the Chair, CEO
and Company Secretary all maintain regular contact with
Directors and work together to ensure that the Board and
Committee governance processes remain fit for purpose.
All Directors have access to the Company Secretary, who
is responsible for advising the Board and Committees on
all governance matters. Additionally, all Directors have
access to independent professional advice at the Company’s
expense if they judge it necessary to discharge their
responsibilities as Directors.
Induction
Following the announcement of a new Directors appointment
to the Board a full, formal and tailored induction programme
is compiled with the programme of sessions personalised to
reflect the incoming Director’s skills, experience, knowledge
and role within the Board and its Committees.
Andy, Brian and Nick began their Director inductions following
their appointments in February, March and May respectively.
Sessions were conducted through both virtual and in-person
briefings to allow for efficient delivery. Meetings were held
with the Chair, Company Secretary, other members of the
Board and external advisers. As Non-Executive Directors, Nick
and Andy met with the Group Executive and other select
members of senior management who provided an overview
of their area of subject matter expertise. The programme
covered topics including safety, Group strategy, sustainability,
our approach to stakeholder engagement divisional deep-
dives, financial and treasury matters, risk, corporate
governance and directors’ duties. In addition, to aid his
understanding of the business, Nick Anderson visited Weir
sites in the UK and Netherlands.
Ongoing training and development
Under the direction of the Chair, the Company Secretary is
responsible for arranging Board training and assisting with
professional development as required. Training is built into
our annual Board agenda at regular intervals and is facilitated
by both internal specialists and external advisers. During the
year, the Board received a briefing on key legal and
regulatory developments from their external lawyers.
The Board also had a teach-in on technology and innovation at
the Weir Advanced Research Centre including a review of Weir’s
technology strategy alongside the divisional digital strategy.
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Board effectiveness
Board performance review
The Board is fully committed to conducting annual reviews in order to continuously improve its performance and overall effectiveness. During 2024, the Board has taken action in relation to a
number of the key recommendations arising from the review conducted in 2023, as described in more detail in the table below.
Key recommendations from 2023 review
Actions and outcomes during 2024
To consider carefully Board focus at each meeting and shape both agenda and
papers accordingly, including potentially allocating more time to discuss longer-term
(i.e. 5-10 year) questions around strategy, technology and sustainability.
The Sustainability and Technology Committee introduced a focus on reviewing questions around strategy,
technology and sustainability including a longer-term outlook through the leap agenda.
To capitalise further on Non-Executive Directors’ specialist knowledge and domain
expertise, including taking opportunities for Non-Executives to feed into external or
industry events or allocating individual Non-Executives to different areas of the business
to build deeper working relationships.
Non-Executives have shared their contacts, experience and industry knowledge with the Group Executive.
To ensure the Board has time for informal relationship building between Non-Executives
and the Group Executive.
The Group Executive and Non-Executives have met at both formal dinners, during the strategy day and the
technology training session. In addition, the Chair quarterly and, on an ad hoc basis, the other Non-
Executives have had one-on-one sessions with members of the Group Executive to build relationships.
Board performance review in 2024
A thorough external review was undertaken with assistance from
Lisa Thomas of Independent Board Evaluation (IBE) following IBE’s
light touch reviews in the previous two years and the last
triennial review in 2021. Lisa is a member of the International
Register of Board Reviewers. Full details of how IBE were originally
selected can be found in our 2021 Annual Report. Aside from
assistance on prior Board effectiveness reviews in 2021, 2022
and 2023, neither IBE nor Ms Thomas has any other connection
with the Group, any individual Directors or the Company
Secretary, nor do they provide any other services to the Group.
The sections of the report describing the process followed and
outcome of the review (including the recommendations for the
Board) have been agreed with IBE. In 2024, the Board
performance review process took the following approach:
– Brief: A comprehensive brief was given to IBE by the Chair
and support materials for briefing purposes were provided
by the Company.
– Process and views sought: IBE observed Board and
Committee meetings undertaken in Glasgow in October
2024. IBE also interviewed each of the Board members on
a one-to-one basis in November. IBE also had access to all
October Board papers. In addition to interviews with Board
members, IBE spoke with all members of the Group
Executive about their interactions with the Board over the
course of the year and other key Board contributors and
external advisers.
– Company involvement and oversight: The Chief Legal
Officer and Company Secretary was responsible for
providing IBE with all necessary access and support to
conduct the review. The Senior Independent Director was
identified as IBE’s independent escalation point if required.
Outcome and recommendations
A report containing feedback from all the input and making
recommendations was prepared and shared with the Chair, the
CEO and subsequently, the full Board. The draft conclusions were
discussed during the December Board with Lisa Thomas present.
The headline findings of the 2024 Board performance review
were extremely positive noting that interactions are productive
and relationships are going well at these early stages of a newly
formed Board. While newness is a feature of some of the
feedback, the report noted that the Board is adding value to the
Group Executive and discussions are productive. The
recommendations from the review including the following either
already have been, or will be, taken forward by the Board in 2025:
– To expand the remit of the previous Sustainability and
Technology Committee to include safety and give the
Committee, and subsequently the Board, further oversight
on safety.
– To encourage the Senior Independent Director and CEO to
each spend time one-to-one with newer Non-Executive
Directors to ensure familiarity and complete a review of
whether there remain any gaps in knowledge after the
induction programme.
Committee feedback was given in separate Committee reports
but the report noted that the transition to each new Committee
Chair has gone very smoothly. All the Committees are
productive, with positive feedback on how they meet their
Terms of Reference and assure the Board.
Individual Director performance was shared by the Chair with
individual Directors. Chair feedback was shared by the Senior
Independent Director with the Chair following feedback from
both the Board Performance review and a meeting led by the
Senior Independent Director in December 2024 with the Non-
Executive Directors without the Chair present to provide Board
members with an opportunity to provide any feedback
regarding her performance. The feedback for both the Chair and
Directors was favourable concluding that each of the Chair and
the Directors make a positive and effective contribution to the
Board and demonstrate commitment to the role.
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90
Risk management and internal controls
Risk management and internal controls
In accordance with the UK Corporate Governance Code, the
Group has an ongoing process for identifying, evaluating and
managing the significant risks through a comprehensive
internal control framework. This four-tier process has been in
place throughout 2024 and is described in more detail below.
The Board, in seeking to achieve the Group’s business
objectives, cannot offer an absolute guarantee that the
application of a risk management process will overcome,
eliminate or mitigate all significant risks. However, by further
developing and operating an annual and ongoing risk
management process to identify, report and manage
significant risks, the Board seeks to provide a reasonable
assurance against material misstatement or loss. More
information on how the Group seeks to manage risk can
be found on pages 59 to 70
The Audit Committee conducted a review of the
effectiveness of the Group’s systems of internal control and
risk management during 2024 on behalf of the Board, as set
out on page103. The Group’s internal control procedures
described on page100 of the Audit Committee report do not
cover joint venture interests. We have Board representation
on each of our joint venture companies, where separate,
albeit similar, internal control frameworks have been adopted.
Tier 1: Functional and front line controls
This includes a wide spectrum of controls common to many
organisations, including: standard operating procedures and
policies; a comprehensive financial planning and reporting
system, including quarterly forecasting; regular performance
appraisals and training for employees; restricted access to
financial systems and data; delegated authority matrices for
the review and approval of key transactions, arrangements
and other corporate actions; protective clothing and
equipment to protect our people from harm; IT and data and
cyber security controls; business continuity planning; and
assessment procedures for potential new recruits.
Tier 2: Monitoring and oversight controls
There is a clearly defined organisational structure within
which roles and responsibilities are articulated. There are
monitoring controls at operating company, regional,
divisional and Group level, including standard key
performance indicators, with action plans drawn up,
implemented and monitored to address any
underperforming areas.
A Compliance Scorecard self-assessment is completed
and reported by all operating companies twice a year.
The Scorecard assesses compliance with Group policies
and procedures, see page 104 for further details.
Financial monitoring includes comparing actual results
with the forecast and prior-year position on a monthly and
year-to-date basis. Significant variances are highlighted to
Directors on a timely basis, allowing appropriate action to
be taken.
Tier 3: Assurance activities
We obtain a wide range of both internal and external
assurances to provide comfort to management and the
Board that our controls are providing adequate protection
from risk and are operating as we would expect.
These sources of assurance were reviewed by the Board during
the year, and principally comprise external audit, internal audit,
SHE audits and IT audits. We have enhanced both our internal
capabilities around assurance and our external assurance on
ESG and non-financial reporting-related matters.
The various audit teams plan their activities on a risk basis,
ensuring resources are directed at the areas of greatest
need. Issues and recommendations to enhance controls are
reported to management to ensure timely action can be
taken, with oversight provided from the relevant governance
committees, including the Audit Committee and the
Excellence Committees.
Tier 4: Ethical and cultural environment
We are committed to doing business in an ethical and
transparent manner. This is supported by Weir’s values, which
are the core behaviours we expect our people to live by in
their working lives. The Weir Code of Conduct also
contributes to our culture, providing a high benchmark by
which we expect our business to be conducted.
Any examples of unethical behaviour are dealt with
appropriately and promptly. The Group has a combination of
formal and informal channels to raise concerns regarding
unethical behaviour, including the Weir Ethics Hotline, which
enables any member of the workforce to raise concerns in
confidence and, if they wish, anonymously. The Board reviews
the operation of the hotline on an annual basis, and is
provided with updates regarding the hotline routinely
through the Corporate Services report, which is presented at
every Board meeting. The Group's Compliance function
works closely with the business to ensure that any matters
raised via the Weir Ethics Hotline are investigated in a fair and
impartial manner consistent with the Group Investigation
Protocol. The Board is notified of follow-up actions taken
where appropriate to do so.
The Responsible Business Practices section on page 57
provides more details on the Group’s activities to promote
ethical behaviour and the Weir Ethics Hotline.
The Audit Committee, our internal audit function
and our external auditors
Details of the roles and responsibilities of the Audit
Committee and its members can be found in the Audit
Committee report on pages 99 to 112. Information on the
role of the Group's internal audit function, as well as that of
the Company’s external auditors, is also provided in the Audit
Committee report.
Our internal control framework has four key tiers:
1 -
Functional and front line controls
2 - Monitoring and oversight controls
3 - Assurance activities
4 - Ethical and cultural environment
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The
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91
Nomination Committee report
"
We are confident that our refreshed
Board has the appropriate size, skills,
and expertise among its Directors to
effectively support the Company in
executing its strategy."
Barbara Jeremiah
Chair of the Nomination Committee
Dear shareholder
I am pleased to present my report as Chair of the
Nomination Committee. In the past two years, the Board has
undergone significant changes. We are confident that our
refreshed Board has the appropriate size, skills, and expertise
among its Directors to effectively support the Company in
executing its strategy. In 2024, Sir Jim McDonald stepped
down at the conclusion of the AGM having served nine years
with us and Srinivasan Venkatakrishnan did not stand for re
election to the Board. In July 2024, Stephen Young retired
from the Board for personal reasons. I am very grateful to Sir
Jim, Venkat and Stephen for their insightful and important
-
contributions to the Board and its Committees during
their tenures and all leave with our best wishes for their
future endeavours.
In February and March 2024, we welcomed Andy Agg and
Brian Puffer respectively to the Board. In May 2024, Nick
Anderson was appointed to the Board and we were pleased
to welcome him at our Board meeting in Bangalore in June.
In addition to considering Board and Committee composition,
the Nomination Committee has also spent time this year
considering talent development and succession planning
among our Group Executive and their direct reports. You can
read more about our activities in this area on page 94.
As ever, the Nomination Committee remains dedicated to
recruiting globally recognised, industry-leading talent, so that
our Weir colleagues see great leaders – at both Board and
senior management level – who look and sound like them. In
the various roles I have been privileged to hold, including
serving as Weir's Chair, I have seen and embraced the value
and power of visible role models.
You can read more about how we continue to meet all of the
measurable objectives set out in our Board Diversity Policy, as
well as the gender and ethnic diversity-related targets set out in
the UK Listing Rules, on pages 94 and 95. We continue to support
both the FTSE Women Leaders’ Review and the Parker Review
and our associated disclosures are set out on page 96.
If you wish to discuss any aspects of the Nomination
Committee report, or our activities more generally, with me,
then please join our AGM on 24 April 2025 in Glasgow. You
can share your question with me in advance if you wish to do
so via our dedicated email address: weirAGM@mail.weir.
Barbara Jeremiah
Chair of the Nomination Committee
27 February 2025
Role of the Committee
The Nomination Committee has responsibility for:
considering the size, structure and composition of
the Board; reviewing Director and senior
management succession plans, and overseeing
the development of a diverse talent pipeline; and
making appropriate recommendations to the
Board on candidates, so as to maintain an
appropriate balance of skills, experience and
knowledge on the Board.
Nomination Committee meeting attendance
Members
Attendance
Barbara Jeremiah (Chair)
7/7
Dame Nicola Brewer
7/7
Ben Magara
7/7
Nick Anderson
4/4
Sir Jim McDonald Note *
3/3
Note * Sir Jim McDonald resigned following the 2024 AGM
Terms of Reference
– During 2024, the Nomination Committee
reviewed its Terms of Reference to reflect
changes from the Corporate Governance Code
2024.
à Read more
The full responsibilities of the Nomination
Committee are set out in its Terms of Reference,
which are reviewed annually and available at
global.weir/investors/corporate-governance/
board-committees/
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Nomination Committee report
continued
Board composition, skills and attributes
We recognise the importance of the Board and its
Committees having a combination of skills, experience and
knowledge. This ensures we have an effective and
entrepreneurial Board that is well-placed to promote the
long-term sustainable success of the Company, generating
value for shareholders and contributing to wider society.
The Nomination Committee reviews the skills, attributes and
diversity represented by the Directors on the Board and
determines whether the existing Board composition remains
appropriate to achieve the Group’s purpose and strategy.
The Nomination Committee does this by maintaining a skills
matrix that tracks both the skills and experience needed
currently, and those future-facing attributes the Board
intends to develop or acquire over the longer term as it
executes its strategy. This matrix is then reviewed in
conjunction with individual Director tenure to assist with
Board appointments and associated succession planning.
The most recently approved version of our Board skills matrix
is set out on the right. The charts that follow describe various
elements of diversity across the Board, and are
supplemented by our disclosures under the UK Listing Rules,
FTSE Women Leaders Review and Parker Review set out on
page 96.
The Nomination Committee is satisfied that the Board and its
Committees have the right combination of skills, experience
and knowledge among a group of individuals that embody
many aspects of diversity.
Board independence as at 31 December 2024
■ Non-Executive
7
■ Executive
2
Board gender balance as at 31 December 2024
■ Men
5
■ Women
4
Board ethnicity as at 31 December 2024
■ White British or other
8
White minority
■ Black/African/Caribbean/
1
Black British
Board nationality as at 31 December 2024
■ British
4
■ British/American
2
■ British/Australian
1
■ American
1
■ Zimbabwean
1
Board skills and attributes matrix
Director
Independence
Engineering
Technology
Digital & Cyber
Mining
Governance
Environment &
Sustainability
Banking &
Finance
International
Leadership
Barbara Jeremiah
●
●
●
●
●
●
Jon Stanton
●
●
●
●
●
●
Brian Puffer
●
●
●
●
●
Andy Agg
●
●
●
●
●
●
Dame Nicola Brewer
●
●
●
●
●
Penny Freer
●
●
●
●
●
●
Tracey Kerr
●
●
●
●
●
●
●
Ben Magara
●
●
●
●
●
●
●
Nick Anderson
●
●
●
●
●
●
●
continued
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Nomination Committee report
continued
Board appointments process
The Nomination Committee leads the process for
appointments to the Board, ensuring that there is a formal,
rigorous and transparent procedure in place for each
appointment.
All appointments are based on merit and objective criteria,
with candidates being evaluated to assess their suitability
across a number of areas, including (without limitation) skills,
education, experience, background and independence.
Within this context, due regard is also given to promoting
diversity of gender, social and ethnic backgrounds, and
cognitive and personal strengths, and the benefits that this
can bring to the Board and its Committees, in line with the
measurable objectives set out in our Board Diversity Policy.
The specific appointment processes followed during the
year in relation to the appointment of Nick Anderson is
described in more on the detail on the right. The process
relevant to the appointment of Andy Agg was set out in our
2023 Annual Report.
Non-Executive Director appointment process
Candidate
specification
The Nomination Committee began by considering the current Board composition, the existing skills and
attributes matrix, and tenure of individual Directors. On this basis, it was recognised that an additional
Director with specific experience as a strategic leader and with experience in growing global businesses
would provide strength to the board room.
Engagement of
professional
advisers and
candidate
review process
Leading executive search firm Korn Ferry was engaged to assist with profiling candidates for this
position. In addition to having a wide pool of potential candidates, Korn Ferry is also a signatory to the
Voluntary Code of Conduct for Executive Search Firms, and is accredited in the Enhanced Code of
Conduct for Executive Search Firms (in line with our Board Diversity Policy measurable objectives).
Except for its involvement in prior director searches and leadership insights assessments, Korn Ferry
does not have any connection with Weir or individual Directors.
Interviews and
associated
due diligence
Shortlisted candidates were interviewed by the Chair, with high potential candidates then being invited
to meet with other Board members (including the Chief Executive Officer, Senior Independent Director
and Chair of the Committees on which the successful candidate would ultimately sit).
Recommendation
and approval
In March 2024 , the Nomination Committee unanimously decided to recommend the appointment of
Nick Anderson to the Board and in May 2024 the Board approved the appointment. Nick was selected
on the basis that he had strong experience on listed company boards and committees, experience as a
leader including having been CEO of another significant public company in the highly relevant
industrials space and international experience in growing companies globally. Nick was considered an
ideal candidate to provide his experience to the Board and its Remuneration, Nomination and Audit
Committees.
Induction
Following his appointment, Nick has undertaken a comprehensive and tailored induction programme.
Further details on our induction process can be found on page 88.
continued
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Nomination Committee report
continued
Succession planning
Weir adopts a structured and formalised approach to
succession planning at both Board and senior management
level. Our succession planning processes encompass a range
of planning, communication and development activities
designed to:
– ensure individuals at Weir are developed to their
fullest potential;
– facilitate the orderly replacement of individuals who are
ready to move on from Weir;
– strengthen retention and avoid unforeseen or
regretted departures;
– ensure there is emergency cover in place for all key roles
at Group Executive level; and
– oversee the development of a diverse pipeline into both
the Board and the Group Executive and direct reports.
Succession planning was an agenda item at most of the
Nomination Committee’s substantive meetings this year, with
the key items under consideration including:
– Board composition, and Committee membership,
including the appointment of Nick Anderson to the
Remuneration, Audit and Nomination Committees; and
– Group Executive succession planning, to oversee a
strong and diverse pipeline for succession for all Group
Executive roles.
Board diversity policy and associated objectives
Weir has had a Board Diversity Policy for more than ten years
and a copy is available on our website at global.weir/
siteassets/pdfs/investors/board-committees/2025/weir-
group-board-diversity-policy-2025.pdf
Our Board Diversity Policy was updated in December 2024 to
reflect the 2024 Corporate Governance Code.
Our Board Diversity Policy is integral to achieving our
strategic objectives and we are fully committed to ensuring
our Board and all its Committees encompass all aspects of
diversity because:
– diversity is critical to our equity and equality obligations;
– it is important that the Board composition better reflects
the diversity of our people around the world;
– fundamentally, better business outcomes are achieved
when diversity is achieved in its broadest sense; and
– being able to draw on the individual and collective
contributions of a diverse Board will ultimately lead
to a competitive advantage and enhance delivery of
our strategy.
I am delighted to confirm that we have met all four objectives
(and, therefore, as at 31 December 2024, all three of the
targets on Board diversity set out in UKLR 6.6.6R(9)). Further
detail on our disclosures for the purposes of the UK Listing
Rules are set out on the following page.
Board Diversity Policy
measurable objective
Progress during 2024
At least 40% of the Directors
are women.
Objective achieved: As at
31 December 2024, four out
of nine Directors (44%) were
women.
At least one of the positions
of Chair, Chief Executive
Officer, Senior Independent
Director and Chief Financial
Officer to be held by
a woman.
Objective achieved: As at
31 December 2024, two
positions are held by a
woman (Chair and Senior
Independent Director).
At least one Director to be
from a minority ethnic
background.
Objective achieved: As at
31 December 2024, one out
of nine Directors (11%) was
from a minority ethnic
background.
Engage only executive search
firms who have signed up to
both the voluntary code of
conduct and enhanced
voluntary code of conduct
for executive search firms
in relation to Board
appointments.
Objective achieved: Korn
Ferry meet these
requirements.
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Additional Information
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95
Nomination Committee report
continued
Board and executive management diversity
In accordance with the UK Listing Rules, the tables below set out our gender and ethnic representation at Board and executive management level.
Gender representation: Board and executive management as at 31 December 2024
Description
Number of
Board members
Percentage
of the Board
Number of senior positions on the
Board (CEO, CFO, SID and Chair)
Number in
executive management Note *
Percentage of executive
management Note *
Men
5
56%
2
6
75%
Women
4
44%
2
2
25%
Other categories
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
Ethnic representation: Board and executive management as at 31 December 2024
Description
Number of
Board members
Percentage
of the Board
Number of senior positions on the
Board (CEO, CFO, SID and Chair)
Number in
executive management Note *
Percentage of executive
management Note *
White British or other White
(including minority-white ethnic groups)
8
89%
4
8
100%
Mixed/Multiple ethnic groups
–
–
–
–
–
Asian/Asian British
–
–
–
–
–
Black/African/Caribbean/Black British
1
11%
–
–
–
Other ethnic group
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
For the purposes of the tables set out above (and all disclosures in relation to Board and executive management diversity in this annual report, unless otherwise specified):
We continue to use 31 December as our reference date, given that this aligns with our financial year end and provides a consistent snapshot of our position on gender and ethnic diversity to allow for comparison across year's.
Note * Following Jennifer Haddouk’s appointment as Company Secretary with effect from 6 January 2025 (between the reference date of 31 December 2024 and the date of this Annual Report), the statistics set out in the previous table will be impacted as follows:
– Gender representation in executive management - Men 6 (66.7%) and Women 3 (33.3%).
– Ethnic representation in executive management - White British or other white 9 (100%)
– Executive management as defined in the UK Listing Rules means the executive committee or most senior executive or managerial body below the Board, including the company secretary but excluding administrative and support staff. At Weir, executive
management therefore comprises the Group Executive (which prior to 6 January 2025 included the Company Secretary). Following the appointment of a separate Company Secretary, from 6 January 2025 onwards, executive management comprises the
Group Executive and the Company Secretary.
Our approach to data collection
Gender and ethnicity data are collected on an annual basis applying a standardised process managed by the Company Secretariat team in conjunction with our HR function.
Each individual is requested to complete an identical questionnaire on a strictly confidential and voluntary basis, through which the individual self-reports their ethnicity and gender identity or
states that they do not wish to report the data. Consent is provided for data collection and processing of that data in accordance with the Group’s Privacy Statement.
The criteria of the standard form questionnaire are fully aligned to the definitions in the UK Listing Rules, with individuals required to specify:
a. Self-reported gender identity – selection from the following categories: (a) man; (b) woman; (c) other category (please specify); and (d) not specified/prefer not to say
b. Self-reported ethnic background – selection from the following categories, as designated by the UK Office of National Statistics: (a) White British or other White; (b) Mixed/Multiple ethnic
groups; (c) Asian/Asian British; (d) Black/African/Caribbean/Black British; (e) other ethnic group; and (f) not specified/prefer not to say
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The Weir Group PLC Annual Report and Financial Statements 2024
96
Nomination Committee report
continued
FTSE Women Leaders' Review
We continue to support the targets set out in the FTSE
Women Leaders Review, and include data from previous
years to allow for historic trend analysis. In line with the FTSE
Women Leaders Review reporting cycle, all data is shown at
the snapshot date of 31 October in each reporting year. Our
data on Board and Group Executive diversity as at 31
December 2024, can be found on page 95.
As at
31 October
2024
As at
31 October
2023
As at
31 October
2022
% of females
on Board
44%
(4 out of 9)
45%
(5 out of 11)
42%
(5 out of 12)
At least one
Chair/CEO/
SID/CFO to be
held by a
woman
Yes
(Chair &
SID)
Yes
(Chair)
Yes
(Chair)
% of females
in leadership
teams
31%
(17 out of 55)
25%
(13 out of 51)
24%
(13 out of 55)
The FTSE Women Leaders Review defines leadership teams as
members of the executive committee and their direct reports
(excluding administrative and support staff). At Weir,
leadership teams for the purposes of the FTSE Women
Leaders Review therefore comprise the Group Executive and
any roles at job role bands 4 or 5 which report to a member
of the Group Executive.
We use this same group of individuals to report on gender
diversity of senior management and their direct reports for
the purposes of Provision 23 of the UK Corporate Governance
Code. While progress at the leadership team level is being
made, we are seeking to accelerate this in spite of the
challenges we face as a result of operating in an historically
male-dominated industry. The Group Executive remains
committed to achieving an improved gender balance
among the leadership teams category over the next few
years, including through strengthened communication of our
gender diversity targets and increasing accountability for
their delivery.
Parker Review
In line with the Parker Review reporting cycle, all data for our
Board-level ethnicity disclosures is shown at the snapshot
date of 31 December in each reporting year.
As at
31 December
2024
As at
31 December
2023
As at
31 December
2022
Number of
directors from an
ethnic minority
background
1
2
2
The Parker Review defines senior management as members
of the executive committee (or equivalent) and those senior
managers who report directly to them – this is aligned with
the definition of leadership teams in the FTSE Women Leaders
Review. At Weir, senior management for the purposes of the
Parker Review therefore comprises the Group Executive and
their direct reports.
In line with the 2023 Parker Review recommendations we set
a target of 14% ethnic diversity among our Group Executive
and their senior direct reports to be achieved by the end of
2027. Currently, 4% of our Group Executive and their senior
direct reports have self-declared as being ethnically diverse
for the purposes of the Parker Review. We set a target that
sought to more than double our performance in this area
(based on our statistics in 2023), while recognising that there
may be scope to set a more stretching goal as we see
progress in both gender and ethnic diversity in due course.
Election and re-election of Directors
The Company will submit all eligible Directors for re-election,
and in the case of Nick Anderson, election for the first time, at
the Company’s Annual General Meeting in April 2025.
As part of making any recommendation to the Board in
respect of elections or re-elections, the Nomination
Committee assesses each Director, including considering:
their performance on the Board and its Committees; the
findings of the Board performance review; their attendance
record during the year and their other time commitments
outside Weir; and their contribution to the long-term
sustainable success of the Company. For Non-Executive
Directors, the Committee also considers whether each
individual Director continues to be considered independent
for the purposes of the UK Corporate Governance Code.
You can read more on our independence assessment on
page 88.
In accordance with the UK Corporate Governance Code,
the notice of Annual General Meeting sets out the
specific reasons why each Director’s contribution is,
and continues to be, important to the Company’s long-
term sustainable success.
à Read more
Inclusion, Diversity & Equity policies can be viewed on our
website: global.weir/sustainability/our-governance-and-
policies/
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Additional Information
The
Weir Group PLC Annual Report and Financial Statements 2024
97
Safety, Sustainability and Technology Committee report
"
I am looking forward to tackling the big
questions regarding the future of the
mining industry."
Tracey Kerr
Chair of the Safety, Sustainability and Technology Committee
Dear shareholder,
I am delighted to present my first report as Chair of the
Safety, Sustainability and Technology Committee (previously
called the Sustainability and Technology Committee).
During 2024, we provided both strategic and governance
oversight of our sustainability strategy – delivering
sustainable Weir and accelerating sustainable mining. The
structure of the meetings was split across the two parts of
the strategy. This provided us with a clear focus to evaluate
relevant risks and opportunities and oversee performance
against agreed technology and sustainability metrics. The
Committee benefited from the insights of external
attendees and detailed pre-read briefings to broaden and
inform the discussions.
Following discussion by the Board, the Committee's remit
was expanded to cover safety, which led to the change of
name of the Committee to become the Safety, Sustainability
and Technology Committee. From 1 January 2025, the
Committee will, alongside its existing remit, provide a
forum to:
– identify safety opportunities and risks relevant for the
long-term future success of the Group;
– oversee the future evolution of the Group safety strategy
and its integration with the Group's core business strategy;
– constructively review and discuss operational safety and
environmental performance trends and safety risk
management; and
– oversee the use of technology and innovation to reduce
operational risk and increase personal safety.
My focus for 2025 will be to ensure that safety matters are
embedded in the committee agenda.
I am looking forward to working with the management team
to tackle the big questions regarding the future of the mining
industry, identifying and managing opportunities and risks for
the long-term future success of Weir.
Tracey Kerr
Chair of the Safety, Sustainability and Technology Committee
27 February 2025
Role of the Committee
The role of the Committee is to provide both strategic
and governance oversight to explore the future of the
mining industry and the implications for the Group's
integrated business model. The focus of the
Committee is the ‘leap agenda’ in safety, sustainability
and technology. The Committee is intended to bring
together relevant experience from members and
external thought leaders to provide input on, and
governance in relation to, management’s response to
thematic long-term trends in the mining and metals
industry, considering the opportunities and risks for the
long-term future success of the Group.
Members have been selected with the aim of
providing the wide range of mining, safety,
sustainability, technology and commercial expertise
necessary to fulfil Committee responsibilities.
Individual biographies can be found on pages 75 to 78.
The Terms of Reference of the Committee were
updated from 1 January 2025 to reflect the addition
of safety.
à Read more about the full responsibilities of the
Safety, Sustainability and Technology Committee in
its Terms of Reference, which are reviewed annually
and available at global.weir/investors/corporate-
governance/board-committees/
Safety, Sustainability and Technology
Committee meeting attendance
Members
Attendance
Tracey Kerr (Chair)
3/3
Andy Agg
3/3
Dame Nicola Brewer
3/3
Ben Magara
3/3
-
–
-
-
–
-
–
-
-
–
–
–
-
’
‘
’
’
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Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
98
Safety, Sustainability and Technology Committee report
continued
Main activities of the Safety, Sustainability and
Technology Committee
(i) Deliver Sustainable Weir
The Committee discussed long-term sustainability issues
that included:
– a round table discussion on emerging thematic long-
term ESG trends, including climate change strategy and
net-zero transition planning together with a report on
scope 3 target and a recommendation to the Board;
– a review of progress and strategy on sustainability and an
update on the non-financial reporting regulatory
legislative landscape with recommendations to the Audit
Committee on the context for the ESG assurance
roadmap; and
– a review of the proposed sustainability and technology-
related key performance indicators for the 2025 Balanced
Scorecard leading to a recommendation to the
Remuneration Committee.
(ii) Accelerate Sustainable Mining
The Committee had three thematic deep-dives during
2024 covering some of the key sustainable mining
challenges for our customers:
– a discussion on the scale and scope of the tailings
challenge globally including external perspectives and
technology approaches;
– an analysis of the issues and consequences of low
precision ore characterisation and the benefits of the
technological solutions to use less energy, create less
waste and use water wisely; and
– a review of the Weir Enterprise Technology Roadmap.
In order to help facilitate technology discussions by increasing
the knowledge of the Non-Executive Directors, the full Board
and Group Executive team attended a technology training
session at Weir’s Advanced Research Centre (WARC). This was
a very useful opportunity for the Board members to learn more
about the technology structure and strategy, digital strategy,
the Enterprise Technology Roadmap and ‘blue sky’
technologies being developed by Weir’s engineers in
collaboration with leading engineering academics to support
both the development of new products and solutions, and our
core technology positions.
Our sustainability strategy
Strategic Report
Governance
Financial Statements
Additional Information
Audit Committee report
“
The Committee has fulfilled its key
objective of providing effective
governance over the Group’s financial
reporting during the year."
Andy Agg
Chair of the Audit Committee
Dear shareholder,
I am pleased to present our report for the year ended 31
December 2024, my first year as Committee Chair. This
outlines how the Committee has fulfilled its key objective of
providing effective governance over the Group's financial
reporting and also highlights our key priorities for 2025.
As highlighted in last year’s report, I joined the Committee
on 27 February 2024 and Srinivasan Venkatakrishnan stood
down on 31 March 2024. Stephen Young stood down on 31
July 2024, at which point I took over responsibilities of
Committee Chair. I would like to express thanks to Stephen
for his leadership of the Committee during his tenure and
also thank Venkat for his contributions. Nick Anderson joined
on 15 May 2024 and I would like to take this opportunity to
formally welcome Nick to the Committee.
2024 highlights
In addition to our routine business, we:
– Continued to monitor preparations and consider the Group’s
proposed approach to ensure compliance with the 2024
edition of the UK Corporate Governance Code.
– Reviewed steps taken by the Group in response to the new
failure to prevent fraud offence introduced by The
Economic Crime and Corporate Transparency Act 2023.
– Considered the adequacy of the control environment of
the newly established Weir Business Services.
– Reviewed the Group's ESG assurance roadmap, gaining
comfort that a framework is in place to meet emerging
regulatory requirements and enhance the governance
over non-financial metrics; reviewed the assurance results
across an expanded suite of ESG metrics.
– Initiated the audit tender process, which is required to be
concluded for the year ending 31 December 2026.
Areas of focus 2025
Key focus areas for the Committee in 2025 are expected to be:
– Monitoring progress to ensure we are prepared to comply
with new Provision 29 of the 2024 edition of the UK
Corporate Governance Code in due course.
– Monitoring activities to ensure we are prepared for the
entry into force of the new failure to prevent fraud offence
mentioned above.
– Ongoing review of transformation across Finance, which
may have an impact on financial reporting and audit.
– Ongoing review of activities from the Group's ESG
assurance roadmap as new areas of focus emerge.
– Concluding the audit tender process.
Andy Agg
Chair of the Audit Committee
27 February 2025
Role of the Committee
The Audit Committee is responsible for providing
effective governance over the Group’s financial
reporting and making appropriate recommendations
to the Board. This includes reviewing the effectiveness
of the risk management and internal control
frameworks, reviewing significant financial reporting
judgements and reviewing the activities of Internal
Audit. The Committee is also responsible for
appointing the external auditor, approving fees and
assessing audit quality and independence.
Audit Committee members and
meeting attendance
Members
Attendance
Stephen Young (Chair to 31 July 2024)
3/3
Andy Agg (Chair from 1 August 2024)
2/2
Nick Anderson (from 15 May 2024)
2/2
Penny Freer
4/4
Tracey Kerr
4/4
Srinivasan Venkatakrishnan
(to 31 March 2024)
2/2
Graham Vanhegan, Chief Legal Officer acted as
Secretary to the Committee through 2024 and
Jennifer Haddouk, Company Secretary effective from
6 January 2025, has taken on this responsibility.
Members have been selected with the aim of
providing the wide range of financial and commercial
expertise necessary to fulfil Committee
responsibilities. Individual biographies have been
presented on pages 75 to 78.
• Read more The full responsibilities of the Audit
Committee are set out in its Terms of Reference,
which are reviewed annually and available at:
global.weir/siteassets/pdfs/investors/board-
committees/2025/weir-group-audit-committee-
terms-of-reference-2025.pdf
The Weir Group PLC Annual Report and Financial Statements 2024
99
Strategic Report
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Financial Statements
Additional Information
Audit Committee report
continued
Main activities of the Audit Committee
The main activities of the Audit Committee are outlined
below. We meet four times during the year and have met
twice since the year end. Each Committee meeting normally
takes place prior to a Board meeting, at which an update
on Committee activities is provided. We have the ability to
call on Group employees to assist in our work and to obtain
any information required from Executive Directors in order
to carry out our roles and responsibilities. We are also able
to obtain outside legal or independent professional advice
if required.
(i) Financial reporting
Our principal responsibility in this area is the review and
challenge of the actions and judgements of management in
relation to the interim and annual financial statements before
submission to the Board, paying particular attention to:
– critical accounting policies and practices, and any changes
therein;
– decisions requiring significant judgements or estimates or
where there has been discussion with the external auditor;
– the existence of any errors, adjusted or unadjusted,
resulting from the audit;
– the clarity of the disclosures and compliance with
accounting standards and relevant financial and
governance reporting requirements;
– an assessment of the adoption of the going concern basis
of accounting and a review of the process and financial
modelling underpinning the Group’s Viability statement;
– how the impact of climate change is considered and
reflected in the financial statements and related
assessments; and
– the processes surrounding the compilation of the Annual
Report and Financial Statements with regard to presenting
a fair, balanced and understandable assessment of the
Group’s position and prospects.
(ii) Internal control and risk management
While overall responsibility for the Group’s risk management
and internal control frameworks rests with the Board, the
Audit Committee has a delegated responsibility to keep
under review the effectiveness of the systems supporting
these. Further details on accountability for Risk Management
are provided in the Corporate Governance report on page 90.
Our work in this area is supported by: reporting from the
Group Head of Internal Audit on the results of the
programme of internal audits completed; the overall
assessment of the internal control environment, with
reference to the results of their work and the results from
the self-assessed Compliance Scorecards; and in addition,
reporting, either verbal or written, from Senior Management
covering any investigations into known or suspected
fraudulent or inappropriate activities. We take comfort from
work undertaken for the Board on a review of the sources
of assurance, which are mapped against the principal risks
(see (iii) Internal audit). In addition, the Committee takes
comfort from the audit work performed and conclusions
reached by PwC over the controls environment of the
Group’s critical IT systems.
The Committee also receives regular reporting on the
Group’s ethics and compliance-related activities from the
Group Head of Internal Audit and Chief Compliance Officer.
This includes reviewing the Group’s Ethics Hotline
programme, which provides a mechanism for employees
with concerns about the conduct of the Group or its
employees to report their concerns. The Committee ensures
that appropriate arrangements are in place to receive and
act proportionately on any complaint about malpractice, in
financial reporting or otherwise.
The Committee also receives presentations from each
Divisional VP of Finance, Group Head of Tax, Group Treasurer,
Group Head of Risk and Insurance and Group Chief
Information Security Officer, all of which inform the
Committee's assessment of the internal control and risk
management framework and its effectiveness.
(iii) Internal audit
The Committee has a responsibility to monitor the
effectiveness of the Group’s Internal Audit function. During
the year, the Group Head of Internal Audit and Chief
Compliance Officer provides the Committee Chair with
copies of all internal audit reports, and presents the results of
audit visits and progress against the internal audit plan to the
Committee, with particular focus on high-priority findings
and the action plans, including management responses, to
address these areas. Private discussions between the
Committee Chair and the Group Head of Internal Audit and
Chief Compliance Officer are held during the year as
required and at least once a year with the full Committee.
These updates, combined with Compliance Scorecard
reporting, provide broad coverage of the Internal Audit
function and a good sense of the control environment. This
also allows the Committee to ensure the function is effective,
which includes assessing the independence of the function,
ensuring that it is adequately resourced and has appropriate
standing within the Company.
One of the main duties of the Committee is to review the
annual internal audit plan and to ensure that Internal Audit
remains focused on providing effective assurance. As part of
the Group’s risk management procedures, key sources of
assurance are mapped against the Group’s core processes
and this is used to ensure internal audit planning considers
wider internal assurance risk indicators.
The factors considered when deciding which businesses to
audit and the scope of each audit are, amongst other things,
critical system or Senior Management changes, financial
results, assessments from other assurance reviews
undertaken, whistleblower report instances and whether the
business is a recent acquisition. The timing of the most
recent visit and consideration of the number of visits to each
operating company in the Group on a cyclical basis are also
taken into account. In addition, the emergence of any
common themes or trends in the findings of recent internal
audits or Compliance Scorecard submissions is taken into
consideration. Planning is further assisted by a risk modelling
tool for dynamic risk prioritisation of audits.
The Weir Group PLC Annual Report and Financial Statements 2024
100
Strategic Report
Governance
Financial Statements
Additional Information
Audit Committee report
continued
(iv) External audit
The Committee is responsible for recommending to the
Board the appointment, re-appointment, remuneration
(including non-audit services) and removal of the external
auditor. The external auditors are PwC who were first
appointed for the financial year commencing 1 January 2016
following a competitive tender process. The Committee has
complied with the Competition and Markets Authority Order
‘The Statutory Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender
Processes and Audit Committee Responsibilities) Order 2014’
during the financial year ended 31 December 2024.
When considering whether to recommend the
re-appointment of the external auditor, the Committee
considers a range of factors, including the effectiveness of
the external audit, the period since the last audit tender was
conducted, and the ongoing independence and objectivity
of the external auditor.
In line with regulatory requirements to conduct a tender at
least every ten years, and rotate auditors after at least twenty
years, the next audit tender process has commenced for the
year ending 31 December 2026. The Committee considers
this timing to be in the best interests of the Company's
members given that this aligns with regulatory requirements.
The Committee initiated planning for the tender process at
its meeting in October 2024 and have formally invited firms
to participate in the process. As there is no requirement to
rotate auditors at this time, PwC have indicated their intention
to participate in the tender process. The anticipated
timetable for the tender process to be concluded is
June 2025.
Should the external auditor resign, the Committee would be
responsible for investigating the issues surrounding the
resignation and consider whether any action is required.
The Weir Group PLC Annual Report and Financial Statements 2024
101
(v) Non-financial reporting
The Committee Terms of Reference have been
updated to include responsibility to keep under review
the effectiveness of the internal controls and systems
for reporting non-financial data, and the related
assurance activity, where appropriate. The Committee
receives reporting in relation to ESG assurance activity
from the Group Financial Controller and the Group
Head of Sustainability attends as required.
Audit Committees and the External Audit:
Minimum Standard
The Company and its Audit Committee apply the
'Audit Committees and the External Audit: Minimum
Standard' (the Standard) published by the FRC in 2023.
This Committee report describes how, and the extent
to which the Company has complied with, the
provisions of the Standard during 2024.
There were no shareholder requests for certain
matters to be covered in the audit during the year and
there were no regulatory inspections of the quality of
the Company's audit. An explanation of the application
of the Group's accounting policies is provided in note
2 to the financial statements.
Audit Committee meeting calendar
The below calendar of activities sets out the matters
discussed and outcomes reached at each of the
Committee meetings. This reflects Committee
meetings where content relevant to the 2024 financial
year was discussed.
July 2024
– Reviewed the findings from the internal audits
performed to date and the results from the H1 2024
compliance scorecard.
– Reviewed the findings from a specific review
performed following a whistle-blower incident and
agreed to review management responses to the
recommendations at the next meeting.
– Reviewed and confirmed external auditor
effectiveness.
– Reviewed PwC's draft audit plan and agreed to
recommend approval of the plan to the Board.
– Reviewed the key judgemental issues, PwC's interim
review findings and the interim financial statements;
agreed to recommend approval of PwC's letter of
representation, key accounting judgements and the
financial statements to the Board.
– Received the annual update from the ESCO Division
VP of Finance & Accounting.
– Held private session with the external auditors.
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Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
102
Audit Committee report
continued
October 2024
– Reviewed the findings from further internal audits
performed. This included a follow up report with
regard to the specific review performed following a
whistle-blower incident initially reported on in July.
– Received an update to PwC's audit plan; agreed to
recommend approval of this and fees to the Board.
– Received annual updates in relation to Ethics &
Compliance, Crisis Management and Treasury
Strategy & Risk. Also, received the annual update
from the Minerals Division VP of Finance & IT.
– Received an update in respect of functional
transformation activity, part of the Group's
Performance Excellence programme.
– Received an update on activity in relation to
preparing for compliance with Provision 29 of the
2024 edition of the UK Corporate Governance Code.
– Reviewed the ESG assurance roadmap and received
an update on ESG assurance activity.
– Reviewed the Financial Reporting Council (FRC)
communication to the Company, following their
review of the 2023 Annual Report and Financial
Statements, and their findings.
– Agreed and initiated plans for the audit tender
process for year ending 31 December 2026.
– Reviewed the Committee's Terms of Reference and
agreed to recommend approval of the updated
terms to the Board.
January 2025
– Reviewed the findings from the remaining 2024
internal audits.
– Confirmed the independence of the Internal
Audit function.
– Approved the 2025 Internal Audit strategy, charter
and plan.
– Received an update in respect of activity underway
in light of the new failure to prevent fraud offence
introduced by The Economic Crime and Corporate
Transparency Act 2023 and agreed a further update
to the Committee later in the year.
– Considered the accounting judgements relating to
2024 and updates from PwC in relation to
management conclusions presented.
– Received confirmation of the final 2024 audit fees
and PwC's independence and approved both.
– Received an update on the status of the Annual
Report and Financial Statements preparation.
– Considered the risk management and internal
controls effectiveness review and agreed to
recommend to the Board that the Group's risk
management and internal control frameworks
remain effective.
– Noted the results of the committee
effectiveness review as part of the wider Board
performance review process.
– Received an update in respect of the audit tender
process for the year ending 31 December 2026 and
agreed next steps.
– Held private session with the Head of Internal Audit
and Chief Compliance Officer.
February 2025
– Reviewed the results of the H2 2024
compliance scorecard.
– Received a further update on activity in relation to
preparing for compliance with Provision 29 of the
2024 edition of the UK Corporate Governance Code.
Reviewed the Group’s proposed material controls,
related sources of assurance and testing
approaches. This incorporated an update on the
Group's overall risk management processes.
– Reviewed results from assurance activity over an
expanded set of ESG metrics; received an update on
other aspects of the ESG assurance roadmap.
– Received the annual update in relation to Tax
Strategy and Risk.
– Considered the remaining key judgements
relating to 2024 including a review of the going
concern assessment.
– Considered the conclusions reached by PwC in
relation to the key judgements and other audit
findings.
– Reviewed the draft financial statements with
particular focus on disclosures in relation to
judgemental issues.
– Agreed to recommend approval of PwC's letter of
representation, the key accounting judgements and
the financial statements to the Board.
– Reviewed the results of viability modelling;
considered the process supporting the fair,
balanced and understandable review; and reviewed
the Audit Committee Report for inclusion in the
Annual Report; agreeing recommendations for
approval to the Board in respect of each.
– Received a further progress update in respect of the
audit tender process for the year ending 31
December 2026 and agreed next steps.
– Held private session with the External Auditors.
Audit Committee report
continued
Strategic Report
Governance
Financial Statements
Additional Information
The following pages provide further detail of Committee
activity in relation to the current financial year.
(i) Financial reporting
Exceptional items, other adjusting items and provisions have
been the main areas of financial reporting focus in 2024. The
Committee received and reviewed details of exceptional and
other adjusting items, which include costs in relation to the
Group's Performance Excellence programme, an impairment
charge in relation to a separately identifiable intangible asset
and a charge in relation to the US subsidiary's legacy
asbestos-related liabilities.
The Committee also reviewed in detail the exceptional
deferred tax credit booked in the year which relates to
previously unrecognised deferred tax assets stemming from
the disposal of Seaboard International LLC as part of the Oil
and Gas Division disposal in 2021.
During its meetings, the Committee challenged
management assumptions, judgements and estimates. With
regard to the US subsidiary's asbestos-related liabilities, the
Committee received detailed reporting in respect of the
update to the provision based on the financial modelling
developed from the latest triennial actuarial review carried
out in 2023 and the movement in the related insurance asset.
The Committee also reviewed the claims experience in the
current year and gave careful consideration to the
disclosures within the Annual Report.
Further detail on these and other financial reporting matters
discussed in the current year and recurring agenda items
can be found on pages 106 to 112.
Engagement with external regulators
We are pleased to report that the Financial Reporting Council
(FRC) notified the Company that they had performed a
review of the 2023 Annual Report and Financial Statements.
Their letter confirmed that, based on their review, there were
no questions or queries that they wished to raise with us. The
FRC did note a number of matters where they believe that
users of the accounts would benefit from improvements to
our existing reporting. The matters raised were taken into
consideration in the preparation of the 2024 Annual Report
and Financial Statements.
The FRC supports continuous improvement in the quality of
corporate reporting. Their review is based solely on the
annual report and financial statements and does not benefit
from detailed knowledge of the business or an
understanding of the underlying transactions entered into.
The FRC's role is not to verify the information provided to it
but to consider compliance with reporting requirements.
(ii) Internal control and risk management
During 2024, the Committee were updated on the work
performed in the year by the Compliance team. This included
detailed reporting on the ethics hotline cases, compliance
training monitoring, for example in relation to the Group’s
Code of Conduct, anti-trust and anti-bribery policies,
improvements in human rights and modern slavery policies
and processes, assessing fraud analytics tools and rolling out
a fraud prevention training programme to 'at risk' employees.
The Committee received an annual update from each
Divisional VP of Finance. These presentations included a
review of the Divisional risk dashboards, significant findings
from internal audit visits and recent Compliance Scorecard
process results, control themes and areas of focus, as well as
an overview of their Divisional finance leadership teams. In
addition, the Committee were updated on progress of
strategic initiatives, including Performance Excellence
initiatives and the associated impacts in each Division.
Focus is given to the strength and depth of the finance
team’s capability; the quality and efficiency of responses to
findings of internal audit visits, including whether learning has
been shared more widely across the Group to mitigate the
risk of recurrence and to share good practice; the quality of
the discussion around Divisional risk dashboards; and,
progress against strategic initiatives.
The Committee also received annual updates on tax and
treasury strategy as well as crisis management from the
Group Chief Information Security Officer. This provided the
Committee with a progress update and confirmed there is
now a refreshed crisis management process following the
creation of a crisis management working group in 2022 and
the development of the new Crisis Management Plan. The
Committee noted the new process has been successfully
embedded across the organisation.
The Committee were also updated through 2024 on the
preparations to ensure compliance with the 2024 edition of
the UK Corporate Governance Code. The Committee
received an overview of the requirements of the newly
published Code in February 2024, and a further progress
update in October 2024, with an outline of the proposed
approach and roadmap.
The Committee also received an update from the Weir
Business Services VP with specific focus on operational
performance and preparations to ensure a smooth year end
process with no delays in reporting. This provided the
Committee with comfort that performance was being
monitored post the transition of activities to Weir Business
Services, and continued focus on the internal controls
aspects of the transition, risks and mitigations.
A review was undertaken during the year in respect of one of
the Group's operating companies following whistle-blower
claims. The results were shared with the Audit Committee
including management responses to recommendations. The
Committee were satisfied with the steps being taken to
address the issue and that the issue did not result in any
material misstatement of the Group's financial reporting, nor
did the issue extend beyond the operating company.
The Weir Group PLC Annual Report and Financial Statements 2024
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Additional Information
(iii) Internal audit
The results of internal audits and the compliance scorecard
process through 2024 have continued to be largely positive,
providing comfort over the control environment.
2024
2023
Completed internal audits
38
31
Compliance scorecard
The Compliance scorecard is a control mechanism
whereby each operating company undertakes self-
assessments every six months of their compliance
with Group policies and procedures, including key
internal controls across a range of categories including
finance, anti-bribery and corruption, tax, treasury, trade
and customs, HR, cybersecurity, IT and legal. As far as
the elements relating to finance are concerned, these
cover (but are not limited to) management accounts
and financial reporting, balance sheet controls and
employee costs. The scorecard process also covers
areas of non-financial reporting such as scope 1&2
emissions and Total Incident Rate reporting. Each
operating company is expected to prepare and
execute action plans to address any weaknesses
identified as part of the self-assessment process.
Operating companies are required to retain evidence
of their testing in support of their self-assessment
responses. Internal audit has responsibility for
confirming the self-assessment during planned audits.
Any significant variances are reported to local,
Divisional and Group management. Any companies
reporting low levels of compliance are required to
prepare improvement plans to demonstrate how they
will improve over a reasonable period of time.
The overall compliance scores (as a percentage) are
tracked over time and reported to the Audit
Committee twice a year, with the Committee paying
particular attention to the variances between self-
assessed and Internal Audit assessed scores
as well as trends and the performance of newly
acquired companies..
In addition to the results from internal audits, the Committee
was advised of the continued focus on driving operational
excellence through technology with advanced analytics and
continuous monitoring for revenue recognition tests.
Internal audit also increased their focus on ESG in the year,
carrying out a review of the governance frameworks, which
have been developed as part of the overall ESG assurance
roadmap.
Internal audit plan
The 2025 plan continues to focus the largest proportion of
resource on financial assurance reviews whilst incorporating
wider risk assurance coverage, both financial and non-
financial, as described below.
– Reviews are undertaken to assess compliance with Weir’s
Code of Conduct procedures including anti-bribery and
corruption; this includes areas, such as policy and
procedures, employee training, relationships with agents,
accounting for employee expenses and corporate
hospitality and gifts.
– The IT assurance programme for 2025 will focus on areas
such as cyber security and privileged access.
– ESG assurance will be a key feature of the 2025 plan,
including developing a robust ESG testing methodology,
assessing the risk controls matrix and reviewing key ESG
risks and controls as well as Internal Audit performing
assurance and assurance readiness reviews.
– Wider risk assurance projects including Performance
Excellence and transformation initiatives as well as material
controls identified in preparation to comply with the 2024
edition of the UK Corporate Governance Code and fraud
risks.
– An element of the Annual Plan is reserved for assurance
coverage of any emerging risk or regulatory changes.
The Committee considered and approved the 2025 Internal
Audit Strategy and Plan noting the inclusion of the wider risk
assurance projects and ESG assurance activity in particular.
(iv) External audit
2024 Audit
Audit risks identified by PwC have not changed from last year.
Key audit matters are included in their Audit Report on pages
153 to 160.
The Group audit team visited Australia, Chile and Brazil in
2024 and field work has been carried out on a hybrid basis by
component teams across the globe. Established procedures
exist for component team supervision and file reviews.
Auditor effectiveness
The assessment of the external audit process is highly
dependent on appropriate audit risk identification at the start
of the audit cycle and the quality of planning. PwC present a
detailed audit plan to the Committee each year, identifying
their assessment of the key risks, amongst other matters.
Our assessment of the effectiveness and quality of the audit
covers a number of other matters, including consideration of
the auditors' judgement, skills and culture, a review of the
reporting from the auditors to the Committee, a review of the
latest FRC Audit Quality Inspection & Supervision Report and
also by seeking feedback from management and Internal
Audit on the overall conduct and effectiveness of the audit
process and whether the agreed audit plan and any
commitments made during the tender process have been
met. This includes whether the auditors are considered to
have a good understanding of the Group's business and
sufficient knowledge of the industry, whether the level of
challenge provided by the auditors is deemed appropriate
and whether recommendations have been acted upon (and
if not, why not). Overall, management were satisfied that
there had been appropriate focus and challenge on the
primary areas of audit risk and assessed the quality of the
audit process as satisfactory.
In addition, during 2024, PwC provided the Committee with a
summary of the FRC’s Audit Quality Inspection and
Supervision Report. This showed results largely consistent
with the prior year from the FRC's review of all individual
audits and an improvement on the prior year for FTSE 350
audits reviewed. Consistent with recent years, no audits were
identified as requiring significant improvement.
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Additional Information
The Committee held two private meetings with the external
auditor in 2024. This provided opportunity for open dialogue
and feedback from the Committee and the auditor without
Executive management. Matters discussed included the
auditors' assessment of business risks and management
activity in relation to those risks, the key audit firm and
network level controls the auditors relied upon to address
any identified risks to audit quality, the transparency and
openness of management interactions, confirmation that
there has been no restriction in scope placed on them by
management and how they exercised professional
scepticism and challenged management assumptions.
The Audit Committee Chair also meets with the PwC Group
Engagement Leader outside the formal Committee process
as necessary through the year. Such interactions are also
important in the assessment of quality. Based on the work
carried out and the FRC Audit Quality Inspection and
Supervision Report, the Committee are of the view that the
quality of the audit process is satisfactory.
Independence policy and non-audit services
A formal policy exists which provides guidelines on any
non-audit services which may be provided and ensures
that the nature of the advice to be provided cannot impair
the objectivity of the auditor’s opinion on the Group's
Financial Statements.
The policy makes it clear that only certain types of service are
permitted to be carried out by the auditors. All permitted
non-audit services require the approval of the Chief Financial
Officer and, where the expected cost of the service is in
excess of £75,000, the approval of the Audit Committee Chair.
If non-audit fees approach £0.5m during a calendar year, the
Committee will consider imposing additional restrictions.
The auditor confirms their independence at least annually.
The independence rules allow a maximum of five years as
engagement leader of the Group. Kenneth Wilson is in his
fourth year as PwC Group Engagement Leader.
Fees payable to PwC in respect of audit services, as set out in
the table below, were approved by the Committee after a
review of the level and nature of work to be performed and
after being satisfied by PwC that the fees were appropriate
for the scope of work required.
2024
(£m)
2024
(% of total
fees)
2023
(£m)
2023
(% of total
fees)
Audit services
4.1
98%
4.0
93%
Audit-related
assurance services
0.1
2%
0.1
2%
Non-audit fee work
–
–%
0.2
5%
Total fees
4.2
100%
4.3
100%
The audit-related assurance work is primarily in relation to
PwC's review of the half year results. The non-audit fees in
2023 are primarily attributable to the appointment of PwC for
assistance in the Offering Memorandum required for the
five-year £300m Sustainability-Linked Notes.
We are of the view that the level and nature of non-audit
work does not compromise the independence of the external
auditor.
Having considered the relationship with PwC, their
qualifications, expertise, resources and effectiveness, the
Committee concluded that they remained independent and
effective for the purposes of the 2024 year end. As a result,
the Committee recommended to the Board that PwC should
be re-appointed as auditor at the next AGM.
(v) Non-financial reporting
In October, the Committee were presented with a general
progress update around ESG assurance activities as well as
the newly developed ESG Assurance Roadmap. This provided
the Committee with an overview of its development, the
execution plan and how it will be monitored over time as well
as evolve as new requirements emerge.
The Committee reviewed the results from the externally
assured ESG metrics.
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Financial Statements
Additional Information
Current year matters
Exceptional and adjusting items
The issue
Management exercises judgement on the classification of
certain items as exceptional or adjusting.
Role of the Committee
We have received detailed reporting covering the
following exceptional and other adjusting items:
i.
details of the costs incurred in relation to the Group’s
Performance Excellence programme, which includes
costs in relation to lean and capacity optimisation
initiatives primarily across the Minerals division, and
costs relating to the global transition to Weir Business
Services under the functional transformation pillar of
the programme;
ii.
details of the intangible asset impairment charge,
which relates to the write down of the Trio brand name;
iii. details of the charge in respect of the US subsidiary's
asbestos-related liabilities;
iv. details of the exceptional deferred tax credit booked in
the year which relates to previously unrecognised
deferred tax assets stemming from the disposal of
Seaboard International LLC as part of the Oil and Gas
Division disposal in 2021; and
v. disclosure of the amounts and related narrative
reporting.
Our work has focused on ensuring that exceptional items
met the criteria as such due to their size, nature and/ or
frequency, and, other adjusting items met the criteria
being legacy items not relatable to current and
ongoing trading.
We reviewed the charges in respect of the Group's
Performance Excellence programme and confirm we are
satisfied with their classification as exceptional items due
to size and nature. Lean and capacity optimisation
initiatives include service centre restructuring and the
relocation of various distribution, manufacturing and
production activities across the Minerals division with
costs largely related to severance. Costs in relation to
Weir Business Services primarily reflect consulting and
other costs associated with the establishment of Weir
Business Services.
We received reporting in respect of the intangible asset
impairment charge. We are satisfied that the Trio brand
name value is impaired following the management
decision to rebrand certain products. We are satisfied this
meets the definition of an exceptional item on account of
size, nature and infrequency of events that give rise to this.
We also received detailed reporting in respect of the US
asbestos-related provision and associated insurance
asset. This included reviewing the balance sheet provision
and movements from the prior year, based on the 2023
triennial actuarial model, and taking into consideration
actual experience in the year compared to the model. A
review of the balance sheet insurance asset was also
undertaken, taking into account utilisation in the year. We
are satisfied that the net balance sheet liability is
appropriate. We are also satisfied that the charge in the
Consolidated Income Statement and its classification as an
adjusting item is appropriate (see provisions section for
further details).
We received detailed reporting on the exceptional
deferred tax credit, which is discussed further in the tax
charge and provisioning section of this report.
We noted the exceptional and adjusting items reflected
the way in which we, as members of the Board, reviewed
the performance of the Group and were disclosed
appropriately and consistently.
PwC reviewed all exceptional and adjusting items, testing a
sample to supporting documentation and performing a
detailed review of the US asbestos-related provision and
associated financial modelling. Discussions were held with
management to understand and challenge the
assumptions and judgements, most notably with the US
asbestos-related provision and Performance Excellence
costs. PwC assessed the appropriateness of classification
of all items as exceptional or adjusting items and
confirmed the treatment and related disclosures were
appropriate.
Consideration was also given to the current balance sheet
position of all related provisions, including both new
provisions and those remaining from previous years, with
management providing details of the remaining liabilities
and expected utilisation.
Conclusion
The Committee agrees with the accounting treatment and
disclosure of these items in the Annual Report.
• Read more
See notes 6 and 22 of the Group Financial Statements
Audit Committee report
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Strategic Report
Governance
Financial Statements
Additional Information
Recurring agenda items
Acquisition accounting for
Motion Metrics
The issue
Management exercises judgement on the probability
of contingent consideration becoming payable.
Role of the Committee
We received an update on the assessment of
contingent consideration and the related disclosures
in the financial statements displayed in note 14.
The Committee were informed that the period of
review for contingent consideration ended on 30
November 2024 and the business had not reached
the required targets set out in the purchase
agreement. As such, no contingent consideration will
be payable and no further re-assessment is required.
PwC concurred with the treatment.
Conclusion
The Committee agrees with the conclusion reached
on Motion Metrics contingent consideration in this
Annual Report.
• Read more
See note 14 of the Group Financial Statements
Acquisition accounting for
Sentiantechnologies AB (SentianAI)
The issue
Management makes estimates in relation to
the provisional fair value of all assets and liabilities.
Management exercises judgement on the probability
of contingent consideration becoming payable.
Role of the Committee
We received a summary report from management
which concluded that the finalisation of the provisional
fair values resulted in an immaterial adjustment in
these financial statements. The exercise was
performed within the 12 month time period allowed
by IFRS3 'Business Combinations'.
The Committee were also informed that the
probability of SentianAI exceeding the targets which
would trigger a contingent payment are considered
remote. As a result, no contingent consideration has
been recorded at the balance sheet date, consistent
with the prior year.
The Committee reviewed the related disclosures in
the financial statements displayed in note 14.
PwC concurred with the treatment.
Conclusion
The Committee are satisfied with the finalisation of the
provisional fair values and agree with the conclusion
reached on contingent consideration, noting this will
be reassessed in future periods. The Committee are
satisfied with related disclosures in this Annual Report.
Inventory valuation
The issue
Management applies estimates on inventory valuation
and provisioning.
Role of the Committee
Given the significant investment in inventory, and
being cognisant of the impact of commodity cycles,
this remains a judgement for specific consideration.
Reporting has been received from management on
the business drivers behind movements in both gross
inventory and the related slow-moving and obsolete
provision.
PwC performed work on inventory and related
provision balances as part of their audit and identified
no findings to report.
Conclusion
Based on the information provided, the Committee
concluded that management action had been
effective and that the level of provisioning appeared
adequate.
• Read more
See note 17 of the Group Financial Statements
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Financial Statements
Additional Information
Impairment
The issue
Management undertakes an annual detailed, formal
impairment review of goodwill and other intangible
assets, with judgements made on the relevant
Cash Generating Units (CGUs) and estimates of
available headroom.
Role of the Committee
The Group has two CGUs: Minerals and ESCO.
The most significant estimates are in setting the
assumptions underpinning the calculation of
the value in use of the CGUs.
We specifically reviewed:
i.
the achievability of the long-term business plan
numbers and macroeconomic assumptions
underlying the valuation process; and
ii.
long-term growth rates and discount rates used
in the cash flow models for the CGUs.
Business plans and budgets were Board-approved
and underpin the cash flow forecasts.
We noted that the impairment testing results for
both CGUs produce significant headroom above
carrying value for each and, as such, no sensitivity
analysis was required.
We reviewed management's approach, the basis
for the impairment reviews and the assumptions in
relation to long-term growth rates and discount
rates. We concluded the methodology and rates
applied to be consistent and appropriate. We also
reviewed the disclosures in the financial statements
and the related narrative.
• Read more
See note 15 of the Group Financial Statements
We noted, as detailed in 'Exceptional and adjusting
items' above, an impairment charge was booked in
the year in respect of a separately identifiable
intangible asset, the Trio brand name, following the
management decision to rebrand certain products.
Further to their work benchmarking management's
assumptions against their independently determined
ranges and challenging underlying business plans, we
also received confirmation from PwC that they are in
agreement with management's conclusions.
Conclusion
We are satisfied that the impairment charge in relation
to the Trio brand name is appropriate. We are satisfied
that the impairment analysis supports the carrying
value of the underlying assets in the CGUs and that no
sensitivity disclosures are required.
Pensions
The issue
The valuation of pension liabilities can be materially
affected by the assumptions utilised by management
on areas such as discount and inflation rates.
Role of the Committee
We received details of the key assumptions
underpinning the valuation, taking assurance from the
fact that external advice had been taken by the
Company and that PwC had benchmarked these
assumptions to their own internal ranges and
consider them appropriate.
We continue to note the level of de-risking
undertaken over the past several years in respect of
the UK Main Scheme, with insurance policy assets now
covering 60% of the UK's total funded obligation,
reducing the Group's exposure to actuarial
movement.
We also continue to note the legal advice obtained
regarding the UK arrangements, which confirms the
recognition of the surplus is in line with IFRIC14.
The Committee are satisfied with the recognition of
the asset on the Consolidated Balance Sheet. PwC
concurred with this treatment.
Conclusion
The Committee is satisfied with the assumptions and
related pension disclosures, including the
appropriateness of continuing to recognise an asset
in respect of the UK Main Scheme.
• Read more
See note 24 of the Group Financial Statements
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Additional Information
Provisions
The issue
Significant balance sheet provisions are underpinned by
management’s key judgements on obligating events and
timeframes over which a reliable estimate for provision
values can be made.
Role of the Committee
As mentioned in the ‘Exceptional and adjusting items’
section above, we received detailed reporting in respect of
the US asbestos-related provision and corresponding
insurance asset.
This included details supporting the movement in the US
asbestos-related provision, based on the financial
modelling developed from the latest triennial actuarial
review undertaken in 2023. This also included details
supporting the movements in the corresponding
insurance asset and a review of actual claims experience
in the year.
The Committee’s focus was centred on gaining
an understanding of:
i.
actual claims and settlement data in the year;
ii.
their relation to the assumptions that underpin the
discounted cash flow model;
iii. the period over which the liability can be reasonably
estimated;
iv. the position with regard to availability of insurance
cover; and
v. the adequacy and transparency of the disclosures
in note 22.
This reporting highlighted the 2024 claims experience was
trending higher than that modelled as part of the 2023
triennial actuarial review. Historic settlement rates are lower
than modelled and average settlement values were lower
in the year than modelled for both mesothelioma and lung
cancer cases.
The Committee noted these lower settlement rates and
lower average settlement values provided natural offset to
the higher claims volumes.
The US asbestos-related provision reduced to £69.9m at
31 December 2024 (2023: £76.2m).
The reporting also considered the insurance coverage and
confirmed that, based on the updated financial modelling,
this is now expected to be sufficient to meet settlement
and associated costs until early 2025.
The insurance asset reduced to £4.1m at 31 December
2024 (2023: £14.9m).
The Committee considered the ongoing appropriateness
of basing the provision on ten years of projected claims
(16 years for cash flows) and concluded it continues to be
appropriate due to the inherent uncertainty resulting from
the changing nature of the US litigation environment.
Taking the observed claims experience under
consideration and having discussed and challenged
management assumptions and judgements, the
Committee are satisfied with the overall level of
provisioning, the related insurance asset and the charge to
the Consolidated Income Statement referred to in the
‘Exceptional and adjusting items’ section above.
The Committee also carefully reviewed the disclosures in
the Annual Report, including the sensitivity analysis, and
are comfortable that the disclosures presented by
management are appropriate, particularly in light of
continued inherent uncertainty in this area.
PwC's work in this area included a review of current year
experience, management's updated financial model and
the resulting impact on the financial statements. PwC
provided confirmation that management’s assumptions
were reasonable and disclosures were appropriate.
With regard to other provisions (other than inventory), we
received details of the nature of each provision and
explanations of the key movements between the opening
and closing balances. The Committee is satisfied with the
accounting treatment and related disclosures in respect of
other provisions in the financial statements.
Conclusion
We are satisfied that the current provisioning levels and
approach are appropriate, as is the recognition of an
insurance asset in relation to the US asbestos-related
provision.
We have reviewed the disclosures with respect to the US
asbestos-related provision, including sensitivity analysis
and are satisfied with the disclosures.
• Read more
See note 22 of the Group Financial Statements
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Additional Information
Tax charge and provisioning
The issue
The tax position is complex, with a number of international
jurisdictions requiring management’s judgement with
regard to effective tax rates, tax compliance and tax
provisioning.
Role of the Committee
The Committee receives a detailed report every six
months, which covers the following key areas:
i.
status of significant ongoing enquiries and tax audits
with local tax authorities;
ii.
the Group’s effective tax rate for the current year; and
iii. the level of provisioning for known and potential
liabilities, including significant movements on the
prior period.
The Committee also receives an annual presentation on
tax strategy and risk from the Group Head of Tax.
In recent years, significant tax focus has been in respect of
certain balance sheet deferred tax assets (DTA), which
arose from the disposal of the Oil & Gas Division and which
would remain available to the Group to offset future US
taxable income of the continuing operations. The
recognition of these assets in the future would depend on
the level of future US profitability and the US tax law in force
at that point in time.
The Committee were updated on the latest DTA modelling
undertaken, which was based on the Group’s latest
Strategic Plan to forecast levels of future US group taxable
income over a ten-year period. This concluded that
recognition of the closing balance sheet US DTA of
US$157.6m (£125.9m) is appropriate.
In arriving at this conclusion, a key judgement was the
completion during 2024 of the underlying US tax technical
analysis to a level required to enable recognition and
utilisation of certain US tax attributes with a net value of
US$104.5m (£81.8m) relating to the disposal of the Group’s
Seaboard operations as part of the 2021 Oil & Gas division
divestiture. The Committee took assurance from the
Company's engagement with external advisers in reaching
this conclusion.
In addition, modelling was undertaken which
demonstrated that these attributes, together with the
other net US DTA, would be fully utilised over the course of
the ten-year modelling period.
The Group will continue to monitor the US group’s levels of
taxable income and performance against the modelling
undertaken, together with the impact of any reforms to the
US tax code, in order to evaluate the appropriate ongoing
level of balance sheet DTA in future periods.
Having considered the current year tax charge and
provisions, the Committee are satisfied with the
appropriateness of these including the continued DTA
recognition. The Committee also takes comfort from the
work done and conclusions reached by PwC in this area.
PwC concurred with the appropriateness of the tax
accounting including the continued DTA recognition.
Conclusion
• Read more
See notes 8 and 23 of the Group Financial Statements
Based on the information reviewed, we are satisfied that
the tax charge and provisioning presented in these
financial statements, including the recognition of the DTA
is appropriate.
Fair, balanced and understandable
The issue
The Board is required to state that the Group’s
external reporting is fair, balanced and
understandable. The Committee is requested by the
Board to provide advice to support this.
Role of the Committee
The Committee received a report from management
summarising the approach taken to ensure that the
Group’s external reporting is fair, balanced and
understandable. This covered, but was not limited to:
i.
involvement of a cross section of management
during preparation of the external reporting,
including the Group Executive, Divisional VPs of
Finance, Group Communications, Sustainability,
Group Finance (including Group Tax and Group
Treasury) and Company Secretariat;
ii.
input from external advisers, including Company
brokers and a public relations agency;
iii. use of disclosure checklists for corporate
governance and financial statement reporting;
iv. regular research to identify emerging practice and
guidance from relevant regulatory bodies;
v. regular meetings of key contributors to the
document, during which specific consideration is
given to the requirement; and
vi. four ‘cold’ readers; three employees (two from
Senior Management) and an external proofreader,
all independent of the preparation process.
Conclusion
The successful completion of this work has been
reported to the Board.
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Financial Statements
Additional Information
Going concern
The issue
The Committee’s role, as delegated by the Board,
is to carry out an assessment of the adoption of the
going concern basis of accounting and report to the
Board accordingly.
Role of the Committee
We fulfilled our responsibilities in this area through the
review and discussion of reporting received from
management, which covered the following areas:
i.
assessment of borrowing facilities available to
the Group;
ii.
review of budget and latest forecast information,
including debt covenants, and associated
financial modelling;
iii. liquidity and credit risk; and
iv. the existence of contingent liabilities.
When considering going concern, we specifically noted the
Group completed the issue of £300m five-year
Sustainability-Linked Notes in June 2023 and the
Committee also noted the Group reduced its multi-
currency revolving credit facility (RCF) to US$600m in
February 2024 following strong cash generation in 2023.
Further to this, in March 2024, the Group exercised the
option to extend its RCF by one year which will now mature
in April 2029.
Following these actions, the Committee noted the Group
retained significant levels of liquidity over an extended
maturity profile.
We also reviewed the outputs from financial modelling of
future cash flows and the reverse stress testing performed
in addition to the base modelling. This stress testing
focused on the level of downside risk which would be
required for the Group to breach its current lending
facilities and related financial covenants. The review
indicated that the Group continues to have sufficient
headroom on both lending facilities and related financial
covenants. The circumstances that would lead to a breach
are not considered plausible.
We note the net debt to EBITDA on a lender covenant basis
improved to 0.7 times and is in line with the Group's capital
allocation policy. We note this is also significantly below the
lender covenant of 3.5 times.
Finally, we note the work performed by PwC in this area
and their conclusion that the Directors’ use of the going
concern basis of accounting in the preparation of the
financial statements is appropriate.
Conclusion
The successful completion of this work has been reported
to the Board. The Group’s statement on going concern is
included on page 151.
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Financial Statements
Additional Information
Viability statement
The issue
The Board approves the period of assessment, the stress
testing scenarios to be modelled and the basis of financial
modelling with respect to the Viability Statement. The
Committee’s role, as delegated by the Board, is to review
the output of the modelling underpinning the Viability
Statement and report to the Board accordingly.
Role of the Committee
We fulfilled our responsibilities in this area through the
review and discussion of reporting received from
management, which covered the following areas:
i.
overview of the construct of the financial model and
base case data underpinning the sensitivity and stress-
test scenarios;
ii.
results of financial modelling, which reflected the
crystallisation of those principal risks identified by the
Board as having the greatest potential impact on the
Group’s viability, both individually and when taken
together in a severe but plausible stress-test scenario;
iii. extent of mitigating actions included in the financial
modelling, relative to the population of such actions
that had been identified as within the control of
management and the Board; and
iv. banking covenant calculations and assessment of
facility headroom in each of the downside and stress-
test scenarios.
Notwithstanding the opportunities that climate change
presents to the business, we noted the specific
consideration of climate change downside risks in the
Group’s viability modelling.
The Committee also received confirmation from PwC that
they considered management’s assessment of the
Group’s longer-term viability was consistent with the
financial statements and their knowledge and
understanding of the Group.
Conclusion
The successful completion of this work has been reported
to the Board. The Group’s Viability Statement is reported on
pages 71 to 72.
The Weir Group PLC Annual Report and Financial Statements 2024
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Audit Committee report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Directors’ remuneration report
“
We are proposing a small number
of changes to our Remuneration Policy
in 2025, which continues to support
the delivery of the business strategy
and the creation of long-term value
for shareholders."
Penny Freer
Chair of the Remuneration Committee
Role of the Committee
The Remuneration Committee is responsible for
determining the remuneration policy for the Chair of the
Company, the Executive Directors and the members of
the Group Executive. The Directors’ Remuneration Policy is
designed to reflect best practice, align with our purpose
and values, incentivise performance and delivery of
strategy, and attract and retain senior talent in a
competitive labour market. The Committee actively
listens to stakeholders in its decision-making process,
including the voice of employees and our shareholders. It
also considers wider all-employee remuneration items,
such as pay equity and fairness, employee benefit
changes and employee share plan design.
Remuneration Committee members and
meeting attendance
Members
Attendance
Penny Freer (Chair)
5/5
Nick Anderson Note 1
4/4
Dame Nicola Brewer
5/5
Ben Magara
5/5
Stephen Young Note 2
3/3
Note 1. With effect from 15 May 2024, Nick Anderson was appointed as a
member of the Remuneration Committee.
Note 2. Stephen Young stepped down from the Board with effect from 31 July
2024.
• Read more
The full responsibilities of the Remuneration
Committee are set out in its Terms of Reference, which
are reviewed annually and available at:
global.weir/investors/corporate-governance/board-
committees
Dear shareholder,
I am pleased to introduce our Directors’ Remuneration report
for the year ended 31 December 2024. This is my first full year
as Chair of the Remuneration Committee having taken over
the role at the start of the year. I would like to begin by
thanking shareholders for their support of our Directors'
Remuneration report at the 2024 AGM.
2024 highlights
– Review of the Directors' Remuneration Policy ahead of the
Policy renewal at the AGM in 2025.
– Engagement with wider workforce remuneration activities,
including receiving certification as a global living wage
employer.
– Review of malus and clawback provisions and associated
governance in view of revised UK Corporate Governance
Code and the proposed changes to our Remuneration
Policy in 2025.
– Consideration of emergent market practice and executive
remuneration policy guidance.
– Approval of the buy-out awards for the new CFO
appointed on 1 March 2024.
Areas of focus 2025
– Approval and implementation of the 2025 Remuneration
Policy.
– Simplification of the strategic and ESG measures, which are
aligned to our We are Weir framework and form part of
annual bonus.
– Compliance with the revised UK Corporate Governance
Code, which applies to financial years beginning on or after
1 January 2025.
– Oversight of wider workforce fair reward themes
particularly in relation to global pay transparency, including
readiness for the EU Pay Transparency Directive.
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Financial Statements
Additional Information
Directors' Remuneration Policy review
In line with the regular three-year cycle, we are submitting
our Directors’ Remuneration Policy to shareholders for
approval at the 2025 AGM. Over the course of the last 12
months, the Remuneration Committee has undertaken a
detailed review of the current remuneration framework for
our Executive Directors, with a view to ensuring that it
continues to appropriately support our reward principles and
the delivery of our We are Weir strategy.
In doing so, the Committee took into account a number of
factors, including the growth of the business over the last
three years, with sustained positioning in the FTSE 100 after
re-joining the index in December 2022. The business has
performed strongly through this period, realising the benefits
of the Oil and Gas disposal and delivering on the compelling
value creation opportunity we set out as a focused mining
technology company, while investing for future growth
through the successful acquisition of Motion Metrics and
SentianAI. We have also continued to build strong
momentum in our Performance Excellence transformation
programme. In addition, the Committee factored in the
evolving thinking and developing market practice around
reward in the UK environment.
We consulted extensively with shareholders during the
process to hear their views. I would like to thank our major
shareholders and their representative bodies for their level of
engagement and overall positive feedback received as part
of our consultation process.
Ultimately, the Committee came to the view that the current
remuneration framework at Weir has worked well and
continues to support the delivery of the business strategy.
While a number of more innovative approaches were
explored, the Committee concluded that at present the
current restricted shares structure remains aligned to our
strategy and ensures strong focus on the creation of
long-term value for our end market customers and
shareholders. It has served Weir well since its implementation
in 2018, supporting strategic delivery by focusing the team
on long-term value creation, as well as having a positive
impact on engagement, motivation and retention.
We are proposing a small number of changes to the
framework, which are primarily focused on ensuring that the
overall remuneration and governance framework remains
appropriately competitive going forward. Further details on
these changes are set out below.
Moderate increase to package through annual bonus to
more fairly align total compensation opportunity with
market taking into account the sustained size and
complexity of the organisation.
The Committee considered the overall remuneration
opportunities for the CEO and CFO roles given the size, scale,
and geographical reach of the business, and the experience
and capability of the individuals. The Committee has
historically referenced FTSE 50–150 and FTSE 50–100 practice
when assessing competitiveness. Given our sustained
positioning well inside the FTSE 100 over the last two years
(between 70th and 80th), the Committee determined that the
FTSE 50–100 now represents the primary reference point for
comparative purposes.
Against this comparator group, there is a discount in the
remuneration opportunity for both Executive Director roles.
While the Committee is very mindful of not being driven by
benchmarking, it considered that the level of difference was
sufficiently material and that it was necessary to make a
focused increase to align total target remuneration
opportunity more closely with the middle of the market. The
Committee considered that an increase was appropriate to
more fairly align the positioning of the Executive Directors
taking into account their respective skills and experience as
well as the sustained size and complexity of the organisation.
After careful consideration, the Committee determined that
the increase should be delivered through an increase in the
annual bonus opportunity. There is clear alignment between
delivering strong performance for our shareholders and
annual bonus outcomes. It was also recognised that the
CEO’s current bonus opportunity was towards the lower end
of market practice compared to the FTSE 50–100 peer group,
with the Committee wishing to retain an appropriate level of
relativity between the CEO and CFO opportunities.
As such, the CEO’s maximum bonus opportunity will increase
from 150% to 200% of salary, while the CFO’s will increase from
125% to 150% of salary. As illustrated below, the Committee
notes that following these changes, the CEO’s total target
remuneration remains positioned around the market median
of the FTSE 50–100 peer group and the CFO remains
positioned around the lower quartile.
CEO
CFO
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Directors’ remuneration report
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Strategic Report
Governance
Financial Statements
Additional Information
Annual bonus deferral
The Committee also holistically reviewed the features within
the framework that support shareholder alignment. The
Committee noted that the primary mechanisms for ensuring
ongoing alignment are the shareholding guidelines – which
are at the upper end of market practice – and the long-term
nature of the restricted share awards with an aggregate
five-year vesting and holding period. The Committee
believes these features create strong long-term alignment
with shareholders and support sustainable long-term
decision making.
With this in mind, the Committee was of the view that the
requirement to defer part of the annual bonus into shares
was unnecessary once an individual had built up a sufficient
shareholding. As such, it determined that it was reasonable to
allow for deferral provisions to fall away once an individual
has exceeded their shareholding guideline by 25% or more
(i.e. 500% of salary for the CEO and 375% of salary for the
CFO). The current requirement to defer 30% of the bonus for
three years will remain in place for individuals that have yet to
exceed their guideline by 25%.
In summary, the Committee considers that the changes to
the Policy will ensure that the remuneration framework at
Weir remains competitive and best able to support delivery
of our We are Weir strategy. Once again, I would like to thank
shareholders for their valuable feedback and input during the
consultation process and for their support to the changes we
are putting forward.
Performance context
We have delivered strong performance in 2024. Adjusted
profit before tax is £428m, increasing by 4% from 2023.
Adjusted operating margin increased from 17.4% in 2023 to
18.8% in 2024, representing positive progression towards our
operating margin target of 20% in 2026. Free operating cash
conversion, which measures the Group's efficiency at
generating cash from its operating results, had an outcome
in 2024 of 102%, exceeding our target of between 90% and
100%. We continue to take advantage of the supportive
conditions in mining markets and you can read more about
our financial performance in the Financial review on pages 41
to 45.
We have also made good progress against our strategic
initiatives, aligned to our We are Weir framework.
– Our employee engagement score placed us in the top
quartile of the manufacturing benchmark group.
– Strong execution in our Performance Excellence
programme, and ahead of our ambitions for cumulative
absolute savings. We have upgraded our total Performance
Excellence saving target from £60m to £80m in 2026, with
£20m of incremental savings expected in 2025.
– We maintained a world class safety record in 2024, with a
Total Incident Rate (TIR) of 0.42. We continue to place
significant focus on our Zero Harm Behaviours Framework
as we strive for a zero harm workplace.
– Our continued focus is on sustainability and transition to
net zero. The inclusion of standalone ESG measures from
2022 onwards in our annual bonus plan transparently
illustrates our priorities and performance in this critical area,
including development of technology, which uses less
resources, reducing our own emissions aligned to SBTi, and
working closely with customers to provide new and
efficient solutions.
– More detail on progress against our strategic initiatives and
delivery against related 2024 targets can be found on
pages 133-136.
Reflecting the high levels of confidence in our strategy and
future prospects, the Board is recommending a final dividend
of 22.1p per share, resulting in a total dividend of 40.0p for
the year, representing 33% of adjusted EPS for the period. This
is in line with our capital allocation policy of returning to
shareholders a third of adjusted EPS through the cycle.
2024 outcomes
The remuneration outcomes for the Executive Directors
during 2024 reflects another year of strong business
performance. In reviewing the formulaic outcomes, the
Committee also took into account the wider stakeholder
experience when determining remuneration outcomes. The
Committee has also given careful consideration to the
annual bonus outcome in view of the workplace fatality,
which occurred in April 2024.
2024 annual bonus outcome
There was no change to our bonus framework for 2024. 60%
of the bonus was based on financial measures, being Group
PBTA (40% weighting) and cash conversion (20% weighting).
The remaining 40% was based on non-financial elements,
being strategic measures and ESG measures (20% weighting
each), directly aligned to our We are Weir strategic
framework.
For 2024, the formulaic outcome was a bonus of 88.6% of
maximum opportunity for the CEO and CFO.
As noted in interim results release on 30 July 2024, Weir
tragically lost a colleague in a work-related accident in April
2024. Irrespective of cause, Weir takes such matters very
seriously in all respects, and as such the Remuneration
Committee has determined that a discretionary downward
adjustment to the formulaic bonus outcome is appropriate.
After careful consideration, the Committee has decided to
apply a downward adjustment of 3% of maximum
opportunity to the formulaic outcome.
After application of this adjustment, the outcome is a bonus
of 85.6% of maximum opportunity, being 128.4% of salary for
the CEO and 89.1% of salary for the CFO. The CFO's 2024
bonus outcome is adjusted pro-rata to reflect his
appointment from 1 March 2024. Had the CFO received a
full year bonus, this would have been 107.0% of salary.
In line with our existing Directors' Remuneration Policy, 30% of
this bonus will be deferred into shares for three years.
Full details of achievement against targets are provided on
page 132 and reflect the strong progress we have made in
the year as outlined earlier in my letter.
The Weir Group PLC Annual Report and Financial Statements 2024
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Directors’ remuneration report
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Strategic Report
Governance
Financial Statements
Additional Information
Restricted share awards vesting in 2025
As discussed in last year’s report, the Committee has
determined that in line with the treatment applied to the
third tranche of the 2020 restricted share award, a 10%
downward adjustment will also be applied to the fourth and
final tranche of the award vesting in April 2025 to mitigate for
the potential for ‘windfall gains' based on the lower share
price used to grant the awards in March 2020 following the
outbreak of Covid-19. Further detail on the rationale is set out
in the 2023 Annual Report on pages 110 to 111. This
adjustment means an aggregate reduction to the 2020
restricted share award of 12.5%. As a result, the scaled back
final 25% tranche of the 2020 restricted share award, the next
25% of the 2021 restricted share award, and the full 2022
restricted share award will vest in April 2025 and be released
following their relevant holding periods.
2025 decisions
Subject to the approval of the proposed new Directors’
Remuneration Policy at the 2025 AGM, the implementation of the
Policy for the year ending 31 December 2025 is set out below.
Salaries
With effect from April 2025, the salary for both the CEO and
CFO will increase by 3.5%. This is in line with the average
increase for UK employees.
Pension contributions
Executive Directors will continue to receive a pension
provision of 12% of salary, in line with the rate available to the
wider UK workforce.
Annual bonus
In line with the proposed new Directors' Remuneration Policy,
the maximum bonus opportunity will be 200% of salary for
the CEO and 150% of salary for the CFO. Where the
shareholding guideline has been exceeded by 25% of more,
any amounts will be paid cash after the end of the
performance year. Where that is not the case, 70% will
continue to be paid in cash after the end of the performance
year, with 30% deferred into shares for three years.
There is no proposed change to the bonus measures and
weightings, which continue to be aligned to our reward
principles and the delivery of our We are Weir strategy:
– 40% PBTA;
– 20% cash conversion;
– 20% strategic measures; and
– 20% ESG measures.
The 2025 strategic measures will continue to focus on our
long-term goals in areas such as innovation and technology
and will also include ongoing measurement of progress
against our Performance Excellence programme. The ESG
measures will continue to focus on key people priorities, such
as safety and diversity as well as reducing both our own and
our customers' environmental impacts. Both the strategic
measures and ESG measures are captured within a balanced
scorecard, which is well embedded within the business and is
used to monitor and manage performance throughout the
organisation. The targets for 2025 will be fully disclosed in
next year’s report, although where the information is not
deemed to be commercially sensitive, the Committee has
provided prospective disclosure of 2025 targets in this year’s
report. The Committee continues to place strong emphasis
on developing the strategic measures to focus on output
based metrics and, where possible, to ensure that results can
be benchmarked externally.
Restricted share awards
The Committee is confident that the introduction of
restricted share awards to Executives and senior leaders
since 2018 has been a key enabler to driving long-term
orientation, value creation and alignment with shareholders.
New restricted share awards will be granted to the CEO (125%
of salary) and CFO (100% of salary) in April 2025. The
performance underpins are unchanged from the 2024
awards. Further details can be found on page 121. The
awards will vest after three years and be subject to a further
two-year holding period.
Summary
In line with the normal three-year renewal cycle, our
Directors’ Remuneration Policy will be presented to
shareholders for approval at the 2025 AGM.
As part of the Policy review, we have also undertaken a review
of our share plan rules to ensure that these remain
appropriate and reflect evolving market practice. To coincide
with the renewal of the Directors' Remuneration Policy, we will,
therefore, also be seeking shareholder approval of new share
plan rules for the Share Reward Plan, Deferred Bonus Plan and
ShareBuilder Plan at the 2025 AGM. The new share plans
largely replicate the existing share plans, which were
approved by shareholders in 2018. The proposed 2025 Share
Reward Plan replaces the existing Share Reward Plan (save
that the provisions relating to the deferral of annual bonuses
have been separated into a new Deferred Bonus Plan) and
the ShareBuilder replaces the existing All-Employee Share
Ownership Plan. A summary of the principle terms of the
amended plans will be included in the Notice of AGM.
The Remuneration Committee has engaged extensively with
shareholders and investor bodies in relation to the modest
changes, which are being proposed to the Remuneration
Policy in 2025, and overall there has been a supportive
response. I would like to thank all those shareholders who
engaged with us during this process.
This year, the Committee has again sought to take a simple
and responsible approach to executive pay, and decisions in
the year have been made taking into account the experience
of our employees, shareholders and key stakeholders in the
period. On behalf of the Committee, I look forward to
receiving your support for our new Directors’ Remuneration
Policy and this year’s Directors’ Remuneration report at the
2025 AGM.
Penny Freer
Chair of the Remuneration Committee
27 February 2025
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Directors’ remuneration report
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The Weir Group PLC Annual Report and Financial Statements 2024
117
Strategic Report
Governance
Financial Statements
Additional Information
Fair reward
Fair reward for employees
We believe in fair reward for all of our employees, regardless of
where in the world they live or which part of our business they
work in. This is reflected in our approach to reward as follows.
– Simple, transparent, effective and linked to business
success.
– Delivered in a way that rewards fairly and appropriately in
line with our culture.
– Enables attraction and retention, establishing us as an
employer of choice.
– Rewards individual contribution, while incorporating a focus
on team performance to create collective accountability.
– Brings focus to sustainable improvement in the underlying
business through linkage to our strategic framework.
– Encourages and enables long-term share ownership for all
employees, rewarding long-term value creation.
Over the last 12 months and going into 2025, we have
continued to progress a number of initiatives that are linked
to the above and the delivery of fair reward.
Global living wage employer certification
In the second half of 2023, we engaged the Fair Wage
Network to undertake a global benchmarking exercise to
assess our individual rates of employee pay in every country
in which we operate against the Fair Wage Network's living
wage references for those locations. Following a
comprehensive review process, with anonymised data for
c.12,000 employees being assessed by the Fair Wage
Network, we were delighted to receive certification in July
2024 from the Fair Wage Network of Weir being recognised
as a global living wage employer.
The certification serves as a guarantee that all of our
employees are paid at or above the various global living
wage thresholds as defined by the Fair Wage Network. The
Fair Wage Network uses extensive research to develop and
continuously update a comprehensive database of living
wage rates in more than 3,000 individual regions and cities.
The living wage typically differs from the statutory minimum
wage, which is often defined by local governments. The living
wage benchmark considers a broader range of factors to
determine a level of pay, which reflects a more realistic cost
of living.
Being a global living wage employer means that Weir is
committed to offering all of our employees, regardless of role
or location, a wage that provides a standard of living that
covers basic needs and allows for a decent quality of life for
employees and their dependents. This commitment is rooted
in the recognition of human rights and our approach to
sustainability and social responsibility. While many countries
have minimum wage laws, these often fall short of what is
needed for individuals and their families. A living wage
employer, therefore, takes a step further by focusing on what
is ethically right and sustainable for the long-term wellbeing
of its workforce.
Our relationship with the Fair Wage Network will continue in
the coming years to make sure that we retain the living wage
certification globally on an ongoing basis. This will see a
re-certification assessment process take place in mid-2025,
with further assessments by the Fair Wage Network taking
place every two years thereafter.
Listening to the voice of the employee
We continue to include a specific reward question in our
global employee engagement survey "I am fairly rewarded
(e.g. pay and benefits) for my contributions to Weir" and we
were delighted in 2024 to again achieve a scoring response,
which placed us in the top quartile of the manufacturing
sector for this particular metric, with the scores augmented
by over 2,200 comments left by individual employees in
response to the question, providing a rich source of feedback
and insight.
In addition to the insight received from the annual employee
engagement survey, we continue to provide employees with
other opportunities to provide feedback, including through
our 'Tell the Board' sessions, which are hosted by members of
the Board or the global town halls, which are hosted by the
Group Executive. Our Employee Engagement Director is also a
member of the Remuneration Committee, which provides
natural opportunity for remuneration matters to be a
discussion and feedback area.
Delivering free shares to employees globally
In 2019, we launched our global all-employee free shares
plan, ShareBuilder, which allows all of our employees,
regardless of role or geography to become shareholders in
Weir. Since its launch in 2019, we have made ShareBuilder
awards to over 18,000 individual employees, including in May
2024 when 1,500 new employees with the required 12
months’ service received the latest award of £300 of free
shares.
Operating pay equity and fairness
In addition to the new partnership with the Fair Wage
Network, we have also continued with our established
practices of undertaking both gender pay gap and equal pay
analysis on a global basis. Our latest published UK gender
pay report can be found on our website at global.weir/
investors/gender-pay/
Since its introduction in 2020, we have continued to develop
our use of Workday, the Group's global HR system, to
modernise, standardise and digitise many of our reward
processes. This, in turn, is a key enabler to operating pay
equity and fairness. We took another significant step forward
with this program of work with the implementation of the
Workday advanced compensation module in the second half
of 2024. This will be used to manage many of our key
reward-related processes in Weir, including the annual pay
review process in the first quarter of 2025, and will also
provide us with a platform that enables ongoing compliance
and reporting capability for the emergent and rapidly
developing pay related regulatory landscape, such as the EU
Pay Transparency Directive.
Strategic Report
Governance
Financial Statements
Additional Information
Remuneration at a glance
Directors’ Remuneration Policy
The key components of our remuneration framework are fixed pay, annual bonus and
restricted share awards as set out in the Remuneration Policy. Our objective is to
appropriately reward the continuous improvement of our value-drivers and the
delivery of sustained value over time.
Element
Performance year
Year 1
Year 2
Year 3
Year 4
Year 5
Fixed pay
Consists of salary, pensions and benefits
Annual bonus
Includes a core financial component and
an element based on the delivery of key
objectives aligned to the strategic
framework
Maximum: 150% (CEO) and 125% (CFO)
of salary
30% deferred into shares
for three years.
From 2025, where
shareholding guidelines are
exceeded by 25%, no annual
bonus deferral is required.
Restricted share
awards
Encourages substantial long-term share
ownership and increases emphasis on
the creation of long-term value for end
market customers and shareholders
Award size: 125% (CEO) and 100% (CFO)
of salary
Shares vest three years
from grant, subject to
underpin
Further two-year
holding period
after vest, released
five years after
grant
2024 CEO single total figure of remuneration
2023
£2,774,255
2024
£3,310,149
⬛ Fixed
pay
⬛ Annual
bonus
⬛ Restricted
shares
2023
2024
£912,209
£955,750
£1,022,519 £1,064,190
£839,527 £1,290,209
In 2023, the restricted shares value comprised the fourth and final 25% tranche of the 2018 award vesting, the third 25%
tranche of the 2019 award vesting and the second 25% tranche of the 2020 award vesting. The 2024 restricted shares
value comprises the fourth and final 25% tranche of the 2019 award vesting, the third 25% tranche of the 2020 award
vesting and the first 50% tranche of the 2021 award vesting. The vesting values from the 2020 award in the 2023 and
2024 single figures incorporate the respective discretionary 15% and 10% reductions applied by the Remuneration
Committee in view of ‘windfall gains’, and as disclosed in the 2022 and 2023 Directors’ Remuneration reports.
2024 annual bonus outcome
Further details, including information on the performance assessment of the strategic
measures and ESG measures are set out on pages 132 to 136 .
Executive Directors’ shareholding
⬛Shareholding requirement
(% of salary)
⬛Shareholding (% of salary)
CEO
CFO
400%
242%
933%
300%
933%
242%
300%
933%
242%
300%
933%
242%
Shareholdings include interests in unvested restricted share awards, which are not subject to performance measures.
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Financial Statements
Additional Information
Directors’ remuneration in 2025
Implementation of remuneration policy in 2025
The table below summarises the key components of our remuneration framework and indicates how we intend to operate the policy in 2025.
Operation
2025 implementation
Fixed
Salary
Fixed remuneration, which reflects role, skills,
and responsibilities.
– CEO – £858,000
– CFO – £518,000
Base salaries have been increased by 3.5% with effect from 1 April 2025. These increases are aligned to the average increase
for the wider UK workforce.
Pension
Executive Directors receive pension
contributions of 12% per annum.
No change for 2025. Aligned with wider UK workforce.
Benefits
Car allowance, healthcare and life assurance.
No change for 2025.
Variable
Annual bonus Maximum opportunity:
CEO 200% of base salary
CFO 150% of base salary
30% deferred into shares for three years, unless
shareholding guideline has been satisfied by
25% or more, in which case no annual bonus
deferral is required.
Annual bonus awards will also be subject to
malus and clawback provisions.
Maximum opportunity for the CEO increased from 150% of base salary to 200% of base salary from 2025.
Maximum opportunity for the CFO increased from 125% of base salary to 150% of base salary from 2025.
From 2025, where the CEO or CFO has satisfied their individual shareholding guideline by 25% or more (therefore, being
500% of salary for the CEO and 375% of salary for the CFO), no annual bonus deferral will be required.
No change to measures and weightings for 2025 as follows:
– 40% PBTA (defined as profit before tax and adjusting items from continuing operations)
– 20% Cash conversion (defined as free operating cash flow as a percentage of adjusted operating profit)
– 20% Strategic measures
– 20% ESG measures
Given their overall commercial sensitivity, underlying targets across the financial measures will be disclosed in next year’s
report provided they are no longer commercially sensitive at that point. Set out on the following page are details of the
target priorities for 2025 for both the strategic measures and the ESG measures. Where not commercially sensitive to do so,
we have provided prospective disclosure of the 2025 underlying targets for these. The results of performance against the
targets for all strategic measures and ESG measures will be disclosed in next year's report.
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Financial Statements
Additional Information
Strategic and ESG annual bonus measures 2025
People
Strategic measures:
Target performance:
Retain our talent.
Voluntary attrition rate of 9.5%.
Succession planning.
15% improvement in total number of roles
with appropriate succession planning
arrangements made.
Maintain our
engagement score in
top quartile of Peakon's
manufacturing
benchmark.
Maintain position in top quartile of Peakon’s
manufacturing benchmark.
ESG measures:
Target performance:
Safety Total Incident
Rate (TIR).
Improve on our 2024 TIR to 0.385.
Improve our diversity.
Improve our female gender diversity
across all job bands. For job bands 1–2,
a 1.25% increase and for job bands 3–5,
a 2.5% increase.
Improve our ethnic diversity across
leadership job bands by 2%.
Health and wellbeing.
Improve on our 2024 CCLA corporate
mental health benchmark score.
Technology
Strategic measures:
Target performance:
Revenue from new
products.
£m orders. Note 1
Boost with digital.
£m orders. Note 1
Enterprise Technology
Roadmap (ETR)
execution progress.
Progress of R&D portfolio against Weir
specific technology readiness levels. Note 1
ESG measures:
Target performance:
Progress priority R&D
projects.
Specific milestones for ETR themes: Note 1
– Move less rock
– Use less energy
– Use water wisely
– Create less waste
Customer
Strategic measures:
Target performance:
Execution of top growth
initiatives.
Minerals – £m orders. Note 1
ESCO – $m orders and number of specific
product conversions/upgrades. Note 1
Position Weir as a
mining technology
solutions partner.
Specific roadmap milestones. Note 1
Refresh key account
strategy.
Specific roadmap milestones. Note 1
ESG measures:
Target performance:
Customer Avoided
Emissions.
Tonnes CO subscript 2 e. Note 1
Customer water
optimisation and waste
impact.
Specific roadmap milestones. Note 1
Performance
Strategic measures:
Target performance:
Lean Processes.
£m run rate (Minerals) and production
targets (ESCO). Note 1
Capacity Optimisation.
£m run rate (Minerals) and production
targets (ESCO). Note 1
Functional
Transformation.
Savings achieved in relation to approved
value case. Note 1
ESG measures:
Target performance:
Reduce scope 1 and 2
CO subscript 2 e vs 2019 base
aligned to SBTi.
SBTi-aligned absolute reduction. Note 1
ESG data assurance
roadmap.
Specific roadmap milestones. Note 1
Note 1 Specific targets will be included in the 2025 Annual Report.
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Directors’ remuneration in 2025
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Strategic Report
Governance
Financial Statements
Additional Information
Operation
2025 implementation
Variable continued
Restricted
share awards
Maximum award size:
CEO 125% of base salary
CFO 100% of base salary
Awards subject to a three-year vesting period
and subsequent two-year holding period.
Vesting subject to the underpin. Prior to vesting,
if any of the thresholds have not been met,
it would trigger the Committee to consider
whether a discretionary reduction was required.
Restricted share awards will also be subject to
malus and clawback provisions.
The Remuneration Committee has the ability
to make adjustment at the time of grant to
address, if relevant, concerns about 'windfall
gains' and taking into account latest
shareholder guidance. The Committee
also retains discretion to review awards at
the point of vesting, in accordance with our
wider policy and principle of best practice.
No change to the award size or vesting schedule for 2025. No change to the underpin:
Balance sheet health
Breaching covenants – no breach of debt covenant or re-negotiation of covenant terms outside of a normal refinancing cycle.
Investor returns
Return on Capital Employed (ROCE) – maintain average ROCE over the vesting period above the average Weighted Average
Cost of Capital for that period.
Environmental, social and governance (ESG)
Sustainability Roadmap progress – awarded a B listing or better by CDP Note 1 through the vesting period in recognition of climate
change contribution.
Corporate governance
Major governance failure – no material failure in governance or an illegal act resulting in significant reputational damage and/
or material financial loss to the Group.
Note
Note 1. CDP is a global environmental impact non-profit organisation. Companies representing two-thirds of global market capitalisation – from 130 countries – disclose
critical environmental data through CDP https://www.cdp.net. It scores companies from D- to A based on the comprehensiveness of disclosure, awareness and
management of environmental risks and demonstration of environmental leadership. Weir’s score was A- in 2020 and 2021, A in 2022 and 2023 and B in 2024. In
accordance with the CDP appeals process, evidence exists that indicates our 2024 response has not been evaluated correctly according to CDP's scoring
methodology, so we have initiated a score appeal. CDP will provide a response to appeals only after the appeal window has closed on 20 March 2025. The underpin
for the 2025 award will be set such that if Weir’s score falls below a threshold of B for any year during the vesting period, this would trigger the Committee to
consider an adjustment to vesting. The CDP methodology requires continuous improvement even to maintain a level of scoring and therefore the Committee
believes this is an appropriate level at which to set the threshold for the underpin.
Other
Shareholding
guidelines
– CEO – 400% of base salary
– CFO – 300% of base salary
Shareholding guidelines continue after an
individual steps down from the Board. The
requirement falls to half the normal level on
stepping down from the Board and then
tapers down to zero after two years.
No change.
Chair and
Non-
Executive
Director (NED)
fees
Fees reflect responsibilities and time
commitments for the role.
Chair and NED base fees will increase by 3.5% effective 1 April 2025, which is aligned to the average increase for the wider UK
workforce. The Chair of Committee fee, the Senior Independent Director fee and the Employee Engagement Director fee are
being harmonised to a new rate of £20,000 from 1 April 2025 to align more closely with market practice and reflect the close
comparability of the breadth of the respective responsibilities and time commitments for these roles.
– Chair’s fee – £377,000 (+3.5%)
– NED base fee – £75,500 (+3.5%)
– Chair of Committee fee – £20,000 (+5.3%)
– Senior Independent Director fee – £20,000 (+30.7%)
– Employee Engagement Director fee – £20,000 (+5.3%)
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Directors’ remuneration in 2025
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Strategic Report
Governance
Financial Statements
Additional Information
Directors’ remuneration policy
Remuneration Policy
The Directors' Remuneration Policy will be put to shareholders for approval at the AGM to be held on 24 April 2025. Subject to approval, the Directors' Remuneration Policy is intended to apply for
three years from that date. In developing the proposed Directors' Remuneration Policy, input was received from the Chair of the Board and management, while ensuring that conflicts of interest
were suitably mitigated. Input was also provided by the Remuneration Committee's appointed independent advisers throughout the process. There are two main changes being proposed from
the current Directors' Remuneration Policy approved in April 2022 being i) an increase in the annual bonus opportunity for the CEO and CFO; and ii) a relaxation of the annual bonus deferral
requirement if the shareholding guideline has been met by 25% or more. The proposed Policy also creates consistent language in relation to the annual bonus and Share Reward Plan malus and
clawback triggers. Other minor changes have been made to the wording of the Directors' Remuneration Policy to reflect evolving market practice or to increase clarity.
Policy table
Change from current Directors'
Remuneration Policy
Base salary
Purpose
To provide a salary that takes into account an individual’s role, skills and
responsibilities and enables the Group to attract and retain talented
leaders.
Operation
Reviewed annually, with increases normally taking effect from 1 April.
Salaries are set by reference to market practice for similar roles in
companies of similar size and complexity. The Committee also takes into
account factors including personal performance, the wider employee
context, and economic and labour market conditions.
Maximum value
While there is no stipulated maximum salary increase, increases will not normally be
greater than the average salary increase for UK employees (or the relevant
jurisdiction if an Executive Director is based outside the UK). Different increases may
be awarded at the Committee’s discretion in instances such as where:
– there has been a significant increase in the size, complexity or value of the Group;
– there has been a change in role or responsibility;
– the individual is relatively new in the role and the salary level has been set to
reflect this;
– the individual is positioned below relevant market levels; and
– other exceptional circumstances.
No change.
Pension
Purpose
To encourage long-term saving and planning for retirement.
Operation
A contribution into the Company’s defined contribution pension plan or
an equivalent cash allowance, or any other arrangement the Committee
considers has the same economic benefit.
Maximum value
The maximum contribution rate is aligned to the maximum contribution rate for
the wider UK workforce which is currently 12%.
No change.
Benefits
Purpose
To provide cost-effective benefits valued by individuals.
Operation
Benefits include, but are not limited to, healthcare, car allowance, liability
insurance and death in service insurance.
Other benefits may be provided from time-to-time if considered
reasonable and appropriate, such as relocation costs or long-term
disability insurance.
Maximum value
– Car allowance – no greater than £20,000 per annum
– Life assurance – 5 x base salary
The cost of providing insurance and healthcare benefits varies according to
premium rates, so there is no formal maximum monetary value.
No change.
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Additional Information
Policy table
Change from current Directors'
Remuneration Policy
Annual bonus
Purpose
To incentivise the delivery of our strategic plan and to reward the
achievement of stretching performance on an annual basis.
To focus incentives on team performance to create collective
accountability.
Operation
Measures, targets and weightings are reviewed and determined annually
at the start of each financial year to ensure they are appropriate and
support the Company’s strategy.
30% of any bonus will be deferred into an award of Weir Group shares,
unless the CEO or CFO's shareholding guideline has been satisfied by
25% or more, in which case no annual bonus deferral is required and the
annual bonus will be paid fully in cash.
Any deferred bonus shares will normally be released after three years
and are not ordinarily subject to any further conditions.
Malus and clawback provisions (applicable for three years from the
payment of the cash element of the annual bonus and three years from
the award of the deferred bonus shares) may be applied in the event of:
– the discovery of a material misstatement in the audited consolidated
accounts of the Company or the audited accounts of any Group
Company;
– in the reasonable opinion of the Board any action or conduct of an
individual (alone or with others) amounts to gross misconduct;
– any event or the behaviour of an individual has, in the opinion of the
Board, a significant detrimental impact on the reputation of any Group
Company provided that the Board is satisfied that the relevant
individual was (alone or with others) responsible for the reputational
damage and that the reputational damage is attributable to the
individual (alone or with others);
– the information that is relied upon to determine the number of shares
over which an award was granted (or vested) is found to be materially
incorrect, mistaken or misrepresented to the advantage of the
individual; and
– a material corporate failure in any Group Company or a relevant
business unit.
Maximum value
The Committee will determine the bonus award level each year. The
maximum bonus award level that may be awarded in respect of a
financial year is:
– CEO 200% of base salary
– CFO 150% of base salary
Performance assessment
Annual bonuses will be subject to such targets as the Remuneration
Committee considers appropriate each year.
Financial measures will normally be used to calculate at least 50% of the
bonus, with the remainder being based on strategic, ESG and/or personal
objectives.
The performance targets for financial measures are set in the context of
the internal budget taking into account other relevant factors, such as
external forecasts.
All financial measures are calibrated with payment on a straight-line basis
between threshold (up to 20% of maximum bonus payable), stretch, and
any points in between.
Payment of any non-financial measures component will be subject to a
discretionary underpin (including individual performance).
In exceptional circumstances, the Committee has discretion to alter the
measures and/or targets during the performance period if it believes the
original measures and/or targets are no longer appropriate.
The Committee may in its discretion adjust annual bonus payout levels, if
it considers that the outcome does not reflect the underlying financial or
non-financial performance of the participant or the Group over the
relevant period or that such payout level is not appropriate in the context
of circumstances that were unexpected or unforeseen when the targets
were set. When making this judgement, the Committee may take into
account such factors as it considers relevant.
– CEO maximum bonus opportunity
increased from 150% of base salary to
200% of base salary.
– CFO maximum bonus opportunity
increased from 125% of base salary to
150% of base salary.
– Where the CEO or CFO's shareholding
guideline has been satisfied by 25% or
more, no annual bonus deferral is
required.
– Use of consistent language in relation
to the annual bonus and Share Reward
Plan malus and clawback triggers.
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Governance
Financial Statements
Additional Information
Policy table
Change from current Directors'
Remuneration Policy
Share reward plan (SRP)
Purpose
To encourage and enable substantial long-term share ownership.
To reward the delivery of sustainable value over time.
Operation
The Committee may grant awards under the SRP on an annual basis.
Awards will normally vest at the end of a three-year period, subject to
continued employment and assessment of the underpin.
Following vesting, an additional two-year holding period will also
normally apply, such that vested shares are released five years from
grant.
Awards will normally be in the form of conditional share awards, but may
be awarded in other forms if appropriate (e.g. as nil cost options).
Malus and clawback (applicable for three years from vesting) provisions
may be applied in the event of:
– the discovery of a material misstatement in the audited consolidated
accounts of the Company or the audited accounts of any Group
Company;
– in the reasonable opinion of the Board any action or conduct of an
individual (alone or with others) amounts to gross misconduct;
– any event or the behaviour of an individual has, in the opinion of the
Board, a significant detrimental impact on the reputation of any Group
Company provided that the Board is satisfied that the relevant
individual was (alone or with others) responsible for the reputational
damage and that the reputational damage is attributable to the
individual (alone or with others);
– the information that is relied upon to determine the number of shares
over which an award was granted (or vested) is found to be materially
incorrect, mistaken or misrepresented to the advantage of the
individual; and
– a material corporate failure in any Group Company or a relevant
business unit.
Maximum value
The Committee will determine the grant level each year. The maximum
value of award that may be granted in respect of a financial year is:
– CEO 125% of base salary
– CFO 100% of base salary
The Committee has the ability to adjust award levels at the time of grant
to address, if relevant, concerns about the potential for perceived
‘windfall gains’.
Performance assessment
No performance measures are associated with the awards.
The underpin will normally consist of a ‘basket’ of key metrics that will
best reflect overall business health over the vesting period. For each
metric, a clearly defined and, where relevant, quantifiable ‘threshold’ will
be set at the time of grant. Thresholds will normally be disclosed
on a prospective basis.
Prior to vesting, if any of the thresholds have not been met, it would
trigger the Committee to consider whether a discretionary downward
adjustment was required.
The Committee may in its discretion adjust SRP vesting levels, if it
considers that the outcome does not reflect the underlying financial or
non-financial performance of the participant or the Group over the
relevant period or that such payout level is not appropriate in the context
of circumstances that were unexpected or unforeseen when the
underpins were set. When making this judgement, the Committee may
take into account such factors as it considers relevant.
– Use of consistent language in relation
to the annual bonus and Share Reward
Plan malus and clawback triggers.
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Governance
Financial Statements
Additional Information
Policy table
Change from current Directors'
Remuneration Policy
Shareholding requirements
Purpose
To ensure Executive Directors build and hold a significant shareholding
long term.
To align Executive Directors’ interests with shareholders.
Operation
Executive Directors are required to build up a shareholding in the
Company over a five-year period.
All beneficially owned shares, deferred shares and unvested restricted
share awards count towards an individual’s shareholding (on a net of tax
basis where relevant).
Until the shareholding requirement is met an Executive Director normally
must retain 50% of net restricted share awards, performance share
awards, and deferred bonus award shares.
Shareholding guidelines continue after an individual steps down from
the Board.
– The requirement will fall to half the normal level on stepping down from
the Board.
– The requirement would then taper down to zero after two years.
Shareholding guidelines
– CEO 400% of base salary
– CFO 300% of base salary
No change.
All-employee share plans
Purpose
To enable long-term share ownership for all employees, and to increase
alignment with shareholders.
To provide one common benefit to all employees.
Operation
Executive Directors may be entitled to participate in all-employee share
plans on the same basis as all other employees.
Maximum value
The maximum value will be in line with the maximum value for all other
employees and where relevant in line with the governing legislation.
No change.
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Financial Statements
Additional Information
Policy table
Change from current Directors'
Remuneration Policy
Chair and Non-Executive Directors' fees
Purpose
To attract and retain experienced and skilled Non-Executive Directors and
to reflect the responsibilities and time commitment involved.
Fees are reviewed by reference to companies of similar size and
complexity, economic and labour market conditions.
Additional fees may be made available to Non-Executive Directors, where
appropriate, to reflect any additional time commitment or duties.
The Company may reimburse Non-Executive Directors for any
business-related costs (such as travel and accommodation costs
incurred in connection with their duties) and any associated tax on these
costs.
Maximum value
Fees as prescribed in the Articles of Association.
Planned increases in fees will take into account general increases across
the Group, along with market practice.
No change.
Choice of performance measures and targets
The performance measures selected for the annual bonus
awards and the underpins selected for the restricted share
awards are set on an annual basis by the Remuneration
Committee, to ensure that they remain appropriate to reflect
the priorities for the Company in the year ahead. The annual
bonus plan measures are chosen to align to our reward
principles and the delivery of our strategy. The restricted
shares underpins are chosen to align with our key
underlying drivers of value. The targets for the performance
measures are set taking into account a number of factors,
including the Company’s annual operating plan, strategic
priorities, the economic environment and market conditions
and expectations.
Dividends
Executive Directors are entitled to receive the value of
dividends payable on any deferred bonus awards under
the annual bonus or awards under the SRP up to the point
of vesting. This value may be calculated assuming that
the dividends were notionally reinvested in the
Company’s shares.
Common award terms
Awards granted under the share plans may be adjusted in
the event of any variation of the Company’s share capital or
any demerger, special dividend or other event that may
affect the current or future value of the awards.
Legacy arrangements
The Committee reserves the right to make any remuneration
payments and/or payments for loss of office, this includes
exercising any discretions available to it in connection with
such payments (notwithstanding that they are not in line with
this policy) where the terms of payment:
– came into effect before this policy was approved and
implemented (including where such payments are in line
with a previously approved policy); and
– were agreed at a time when the individual was not a
Director of the Company and, in the opinion of the
Committee, the payment is not in consideration for the
individual becoming a Director.
This includes the vesting of any awards granted under
the SRP.
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Governance
Financial Statements
Additional Information
Recruitment policy
The Remuneration Committee’s approach when considering the overall remuneration arrangements in the recruitment of an Executive Director is to take account of all relevant factors, such as
the individual’s remuneration package in their prior role and the market positioning of the package against the local market. We will not pay more than necessary to facilitate the recruitment.
Component
Policy
Remuneration
The salary level, benefits, pension, annual bonus and annual SRP participation will be in line with the policy table, including the maxima shown.
Buy-out awards
The Committee will consider whether any buy-out awards are reasonably necessary to facilitate the recruitment of an Executive Director, and if there are any
other compensation arrangements or contractual rights that would be forfeited on leaving the previous employer.
The Committee will seek to structure payments taking into account relevant factors, including any the quantum of the award, performance conditions, form in
which it is to be paid and the timeframe of the award.
Buy-out awards will generally be made on a like-for-like basis.
Other
The Committee may agree to meet certain mobility or relocation costs, including but not limited to, temporary living and transportation expenses. The
Committee may also agree to meet the costs of relevant professional fees.
Reasonable expenses and associated tax incurred as part of their recruitment will be reimbursed to the Executive Director.
Internal promotion to
Executive Director
The Committee will honour existing remuneration arrangements made prior to, and not in contemplation of, promotion. The arrangements will continue to pay
out in accordance with the respective rules and guidelines.
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Financial Statements
Additional Information
Service contracts and policy on payment of loss of office
It is the Committee’s policy that there should be no element of reward for failure. The Committee’s approach when considering payments in the event of termination is to take account of the
individual circumstances including the reason for termination, contractual obligations of both parties as well as incentive plan and pension scheme rules.
If an Executive Director’s service contract is terminated other than in accordance with its terms, the Committee will give full consideration to the obligation and ability of the individual to mitigate
any loss they may suffer as a result of the termination of their contract.
Service contracts and letters of appointment are available for inspection at the Company’s registered office.
Provision
Policy
Unexpired term
The unexpired term of Executive Directors’ contracts is 12 months.
Executive Directors have rolling contracts.
Change of control
No provisions in service contracts relate to a change of control.
Refer to the relevant sections below for annual bonus and share plans provisions.
Notice period
Executive Directors have 12 months’ notice by either the Company or the individual. This would be the normal policy for new appointments but shorter notice
periods may be applied.
Contractual payments
Termination with contractual notice or termination by way of payment in lieu of notice (PILON) at the Company’s discretion.
Neither notice nor PILON will be given in the event of gross misconduct.
The calculation of PILON will be at 1.2 x gross salary to reflect the value of salary and contractual benefits.
PILON will be made where circumstances dictate that Executive Directors’ services are not required for their full notice period. Contracts also allow for phased
payments on termination, which provides for mitigation, including remuneration from alternative employment.
The Committee may authorise:
– payments for statutory entitlements in the event of termination;
– reasonable settlement of potential legal claims;
– payment of reasonable reimbursement of professional fees in connection with such agreements; and
– payment of reasonable expenses in connection with the re-location of the individual if required.
Annual bonus and deferred
bonus awards
At the discretion of the Committee, where an individual leaves as a Good Leaver (as defined on page 129), a pro rated payment (payable in such proportions
of cash and shares as the Committee may determine) may be earned if employment ceases during the year. Any payment will be subject to the assessment
of bonus targets.
Dismissal for gross misconduct – all entitlements will be forfeited, including any unvested deferred bonus awards.
All other departure events – existing rights are normally retained in respect of any deferred bonus awards. Vesting will take place at the normal vesting date
unless the Committee determines otherwise.
Malus and clawback provisions will continue to apply.
Change in control – any bonus will normally be determined by the Committee up to the expected date of change in control taking into account both
performance and the period of the financial year which has elapsed. Deferred bonus awards will vest on change in control.
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Financial Statements
Additional Information
Provision
Policy
Outstanding share plan awards The treatment of awards will be governed by the rules of the relevant plan.
Where an individual leaves as a Good Leaver (which includes for reasons of death, retirement, ill-health, injury or disability, redundancy, the sale of employing
company or business, or other circumstances that the Committee determines) unvested awards will normally continue and vest on the normal vesting date,
taking into account the assessment of any applicable underpins and pro-rated to reflect the proportion of the vesting period that has elapsed.
The Committee may exercise its discretion to apply a different pro-rata methodology or to dis-apply time pro rating completely.
Awards subject to a holding period will continue to be subject to that holding period as if employment had not ceased, except in the case of death, or in such
other circumstances as the Committee may determine, when the holding period will end at such time as the Committee determines to be appropriate.
The rules provide flexibility that in the case of the participant’s death (or such other exceptional circumstances as the Committee considers appropriate),
awards will vest (and awards in the holding period will be released) at the time of death/leaving.
If an individual leaves for any reason other than as a Good Leaver, any unvested awards will lapse on termination.
Awards will remain subject to the operation of malus and clawback provisions.
Change in control – the extent to which unvested awards vest will be determined by the Committee, taking into account the performance conditions and/or
underpins as applicable and the proportion of the vesting period that has elapsed. Alternatively, awards may be exchanged for new equivalent awards in the
acquiring company. The holding period applicable to any awards will end at the time of change in control.
All-employee share plans
The rules of any all-employee share plans will apply in the event of termination of employment or change in control.
Relocation
The Committee may determine that share plan awards or deferred bonus awards should vest early if an Executive Director is relocated to a country where they
would suffer a tax or regulatory disadvantage by holding the award.
Chair and Non-Executive
Directors
Non-Executive Directors have letters of appointment. The letters do not contain any contractual entitlement to a termination payment and the Non-Executive
Directors can be removed in accordance with the Company’s Articles of Association.
Notice periods are six months from the Company and no notice from the individual.
There are no change in control provisions in the letters of appointment.
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Financial Statements
Additional Information
Service agreements and letters of appointment
The following table sets out the dates of each of the Executive Directors’ service agreements, the dates of the Non-Executive
Directors’ letters of appointment and the date on which the Non-Executive is subject to election or re-election. Directors are
required to retire at each Annual General Meeting and seek re-election by shareholders.
Executive Director
Contract commencement date
Unexpired term (months)
Jon Stanton
28 July 2016
12
Brian Puffer
1 March 2024
12
Non-Executive Director
Date of appointment
Date when next subject to election/re-election
Barbara Jeremiah
1 August 2017
24 April 2025
Andy Agg
27 February 2024
24 April 2025
Nick Anderson Note 1
15 May 2024
24 April 2025
Dame Nicola Brewer
21 July 2022
24 April 2025
Penny Freer
23 October 2023
24 April 2025
Tracey Kerr
21 July 2022
24 April 2025
Ben Magara
19 January 2021
24 April 2025
Note 1. Nick Anderson joined the Board with effect from 15 May 2024.
Consideration of conditions elsewhere in the Group
The reward principles set out earlier in the Directors’
Remuneration report reflect the reward principles that apply
to all employees across the Group. Although these principles
apply across the Group, given the size of the Group and the
geographical spread of its operations, the way in which the
principles are implemented in practice varies. For example,
annual bonus deferral applies at the more senior levels within
the Group and participation in restricted share awards is
typically limited to Senior Management and executives.
All employees are eligible to participate in our global
all-employee share plan, Weir ShareBuilder, and we offer
competitive and fair rates of pay across the organisation.
Consideration of employee engagement
Meaningful engagement with customers and employees
plays a crucial role in both innovation and the continuous
improvement of the Weir business.
The Board recognises the importance of culture and effective
employee relations in the creation of good work and good
workplaces. The role of the Board, therefore, is to ensure that
mechanisms are in place, and monitored, for effective
employee engagement and that there is governance of the
process for management standards and training to continue
to assure ourselves of the leadership skills required
to do engagement well. Given the multi-national nature of
our business, the management team also recognise that
their approaches to insight-gathering and dialogue need to
reflect country practices so that engagement can be led well
locally and be mindful of circumstances and culture.
As a Board, we recognise the importance of a Group-wide
framework for employee dialogue, which is why our
continued focus is to ensure that we broaden our
Group-wide practices for gathering workforce views and
engaging in meaningful dialogue and for measuring and
further strengthening employee engagement. Monitoring of
progress will take place at the Board in the form of an annual
employee insights report.
While the Committee does not directly consult with
employees when drafting the Remuneration Policy, we have
in place a variety of employee voice channels, such as our
global employee engagement survey and our ‘Tell the Board’
sessions, which provide employees with an opportunity to
provide feedback on any topics that interest or concern
them. Outputs from these channels are provided to the
Board, and any remuneration concerns would be flagged to
the Remuneration Committee for separate consideration. We
also include a specific reward question in our annual
employee engagement survey and the results we receive
help us shape our reward agenda and actions.
Consideration of shareholder engagement
Shareholders and their representative bodies play a very active
role in the continued development of our Remuneration Policy.
We have undertaken significant engagement with shareholders
in relation to the small number of amendments proposed to the
Remuneration Policy.
The Committee remains committed to ongoing dialogue and
will seek input from shareholders when considering any
further changes.
The Weir Group PLC Annual Report and Financial Statements 2024
130
Directors’ remuneration policy
continued
Strategic Report
Governance
Financial Statements
Additional Information
Pay at Weir
Application of remuneration policy
Jon Stanton
Note 1 Maximum +50% share price increase.
⬛Fixed pay
Annual bonus
SRP
⬛
⬛
⬛
Brian Puffer
Note 1 Maximum +50% share price increase.
⬛Fixed pay ⬛Annual bonus ⬛SRP
Notes to application of remuneration policy charts
The chart illustrates the potential total remuneration for the
Executive Directors in respect of the application of our
Remuneration Policy.
Element of
package
Assumptions used
Fixed Pay
Base salary: effective 1 April 2025
Benefits: benefits as disclosed in single
total figure of remuneration for 2024. For
Brian Puffer this includes an estimated 2025
benefits figure calculated as the annualised
value of the benefits provided in 2024 and
as disclosed in the single total figure of
remuneration
Pension: 12% pension contribution or cash
allowance, which is also the maximum rate
available to the wider UK workforce
Annual
Bonus
Minimum: no bonus is earned
Mid-point: 60% of maximum is earned
(being the mid-point under the annual
bonus between the threshold pay-out of
20% and maximum pay-out)
Maximum: 100% of maximum is earned
SRP
Minimum: no vesting
Mid-point: 100% vesting
Maximum: 100% vesting
Maximum +50%: As above for maximum
performance but includes share price
appreciation in respect of the SRP of 50%
The Weir Group PLC Annual Report and Financial Statements 2024
131
Directors’ remuneration policy
continued
£997,190
£997,190
£997,190
£997,190
£1,029,600
£1,716,000
£1,716,000
£1,072,500
£1,072,500
£1,608,750
£600,121
£600,121
£600,121
£600,121
£466,200
£777,000
£777,000
£518,000
£518,000
£777,000
Fixed Pay
100.0%
Mid-point
32.2%
Maximum
26.3%
Maximum1 +
23.1%
33.2%
45.3%
39.7%
Fixed Pay
100.0%
Mid-point
37.9%
Maximum
31.7%
Maximum1+
27.9%
29.4%
41.0%
36.1%
28.3%
37.2%
34.6%
27.3%
36.1%
32.7%
Total £3,099,290
Total £3,785,690
Total £4,321,940
Total £997,190
Total £600,121
Total £1,584,321
Total £1,895,121
Total £2,154,121
Strategic Report
Governance
Financial Statements
Additional Information
Directors’ remuneration report
Single total figure of remuneration for Executive Directors (audited)
This section sets out how the Remuneration Policy was applied for the year ended 31 December 2024.
Executive Director
Jon Stanton
Executive Director
Brian Puffer
2024 (£)
2023 (£)
2024 (£)
2023 (£)
Base salary Note 1
821,000
785,750
416,667
–
Benefits Note 2
36,230
32,169
16,634
–
Pension Note 3
98,520
94,290
50,000
–
Total fixed pay
955,750
912,209
483,301
–
Annual bonus
1,064,190
1,022,519
445,730
–
Restricted shares Note 4
1,290,209
839,527
–
–
Buy-out awards Note 5
–
–
1,466,253
–
Total variable pay
2,354,399
1,862,046
1,911,983
–
Total pay
3,310,149
2,774,255
2,395,284
–
Notes to the total figure of remuneration for the Executive Directors (audited)
Note 1. Base salary – Jon Stanton's annual salary was £797,000 in the period 1 January 2024 to 31 March 2024, and £829,000 in the
period 1 April 2024 to 31 December 2024. Brian Puffer joined Weir Group as CFO and was appointed to the Board from
1 March 2024 with an annual salary of £500,000 effective from that date.
Note 2. Benefits – corresponds to the value of benefits in respect of the year ended 31 December 2024, as set out in the further
table on this page.
Note 3. Pension – corresponds to the cash allowance provided to the Executive Directors during the year ended 31 December
2024. This equates to 12% of salary.
Note 4. The restricted share awards have been valued using the share price at the respective dates of vesting. For Jon Stanton, the
2024 restricted shares figure comprises the fourth and final 25% of the 2019 award vesting on 9 April 2024 (valued using a
share price of £20.54 at the vesting date), the third 25% of the 2020 on award vesting on 8 April 2024 (valued using a share
price of £20.36 at the vesting date) and the first 50% of the 2021 award vesting on 8 April 2024 (valued using a share price
of £20.36 at the vesting date). The total figure of £1,290,209 includes a value of £51,933 in respect of dividend equivalents.
The respective vestings in 2023 and 2024 of the second and third 25% tranches of the 2020 award incorporates the
downward discretion applied by the Remuneration Committee to reduce the number of shares vesting by 15% (2023) and
10% (2024) for 'windfall gains' as disclosed in the respective 2022 and 2023 Directors' Remuneration reports.
Of the 2024 restricted share value shown above for Jon Stanton, £387,939 reflects the share price appreciation in the period
since award. No discretion has been exercised in connection with share price appreciation.
As previously communicated to shareholders, the dividend underpin relating to the final tranche of the 2019 restricted
share award vesting in 2024 was not met following decisive action taken by the Board to withdraw the final dividend in 2019
and any dividend payments in 2020 in response to the outbreak of Covid-19. To recognise the breach of the dividend
underpin, the Committee made a downwards adjustment to the tranche of the 2019 award restricted share award vesting
in 2021. In line with the approach taken to the further tranches of the 2019 award vesting in 2022 and 2023, no further
adjustment has been made to the final tranche of the 2019 award, which vested in 2024. All other underpins for tranches of
the awards vesting in 2024 were met.
Note 5. For Brian Puffer, the 2024 restricted shares figure comprises the value of the buy-out awards made in April 2024, which are
not subject to any performance conditions. Further details of the buy-out awards are provided on pages 137 to 138.
Jon Stanton
Brian Puffer
Benefits
2024 (£)
2024 (£)
Car allowance
17,000
11,642
Healthcare Note 1
2,303
–
Life assurance
16,927
4,992
Total
36,230
16,634
Note 1. Brian Puffer did not join the Company healthcare plan in 2024.
2024 annual bonus (audited)
The table below details the performance achieved against the stretching targets set at the
beginning of the year. As a result, a bonus of 85.6% of maximum was payable to the Executive
Directors. Jon Stanton's bonus award is 128.4% of salary as at 31 December 2024, and Brian Puffer's
bonus award is 89.1% of salary as at 31 December 2024. Brian Puffer's bonus award has been
adjusted pro-rata to reflect his appointment from 1 March 2024. Had the CFO received a
full year bonus, this would have been 107.0% of salary. In accordance with our current
Remuneration Policy, 30% of the bonus for Executive Directors is deferred into shares for three years
and is not ordinarily subject to any further conditions. Malus and clawback may be applied in the
circumstances set out on page 123.
Weighting
Entry
Mid-point
Maximum Achievement
Pay-out (%)
Payout as % of
maximum
20%
60%
100%
PBTA Note 1
40%
£405.6m
£446.1m
£486.6m
£468.9m
33.0%
Cash conversion Note 2
20%
88.5%
93.5%
98.5%
102.6%
20.0%
Strategic measures
20%
See pages133 to134
18.6%
ESG measures
20%
See pages 135 to136
14.0%
Total bonus
100%
85.6%
Notes
Note 1. PBTA is defined as profit before tax and adjusting items. The performance targets and achievements are calculated using
September 2023 closing exchange rates.
Note 2. Cash conversion is defined as free operating cash flow as a percentage of adjusted operating profit. The performance
targets and achievements are calculated using September 2023 closing exchange rates.
The following pages detail the annual bonus achievement on the strategic measures (pages
133 to134) and ESG measures (pages 135 to 136) aligned to the pillars of our We are Weir
Framework of People, Customer, Technology and Performance.
The Weir Group PLC Annual Report and Financial Statements 2024
132
Strategic Report
Governance
Financial Statements
Additional Information
Rating key for strategic measures: ●Outcome achieved meets or exceeds on-target.
●Outcome achieved is between threshold and on-target.
●Outcome achieved is below threshold.
Strategic measures (audited)
The next two pages provide the detailed results for the 2024 strategic measures. The per cent bonus contribution for each measure is determined by the result relative to threshold, target and
maximum performance metrics, with the per cent bonus for a result between these points calculated on a straight-line basis.
Priority for 2024
Outcome required for on-target bonus achievement
Result
Rating
Bonus contribution
People
Retain our talent.
11% voluntary attrition rate.
7.9% voluntary attrition rate.
●
1.67% out of 1.67%
Succession planning.
8% improvement in total number of succession plans
that have at least one named successor in the
readiness pipeline.
24% improvement in total number of succession plans
that have at least one named successor in the
readiness pipeline.
●
1.67% out of 1.67%
Employee engagement.
Maintain our engagement score in top quartile of
Peakon manufacturing benchmark.
Engagement score placing us in the top 10% of Peakon’s
manufacturing benchmark.
●
1.67% out of 1.67%
Priority for 2024
Outcome required for on-target bonus achievement
Result
Rating
Bonus contribution
Customer
Execute top growth initiatives.
Minerals: £144.4m orders.
Minerals: £154.7m orders.
●
0.72% out of 0.83%
ESCO: US$45.3m capital bookings.
ESCO: US$38.5m capital bookings.
●
0% out of 0.42%
ESCO: Five booked conversions/upgrades to mining lip
and adapter system.
ESCO: Eight booked conversions/upgrades.
●
0.42% out of 0.42%
Capture value from new
strategic alliances.
Five orders originating from new strategic alliances.
Seven orders originating from new strategic alliances.
●
1.67% out of 1.67%
Position Weir as a mining technology
solutions partner.
Development and implementation of corporate brand
marketing strategy.
Refreshed brand marketing strategy deployed internally
across group and divisions. Work underway to establish
baseline measures and KPIs that will demonstrate
effectiveness of embedding of the new brand and
positioning across the business.
●
1.67% out of 1.67%
The Weir Group PLC Annual Report and Financial Statements 2024
133
Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Rating key for strategic measures: ●Outcome achieved meets or exceeds on-target.
●Outcome achieved is between threshold and on-target.
●Outcome achieved is below threshold.
Strategic measures continued (audited)
Priority for 2024
Outcome required for on-target bonus achievement
Result
Rating
Bonus contribution
Technology
Revenue from new products.
Minerals: £75m of revenue.
Minerals: £115m of revenue.
●
0.83% out of 0.83%
ESCO: US$22m of revenue.
ESCO: US$26.4m of revenue.
●
0.83% out of 0.83%
Digitise our current business model. Minerals: 75 NEXT connected sites/new installs.
Minerals: 102 NEXT connected sites/new installs.
●
0.83% out of 0.83%
ESCO: 75 Motion Metrics™ connected sites/new installs. ESCO: 70 Motion Metrics™ connected sites/new installs.
●
TM
0.39% out of 0.83%
Enterprise Technology Roadmap
(ETR) execution process.
Baseline our ETR technology portfolio against the Weir
Technology Readiness Levels (WTRL) and track our
success in improving their readiness.
The average WTRL across all 24 ETR technologies for the
full year was 5.2 versus a 2024 starting point of 4.45.
●
1.67% out of 1.67%
Priority for 2024
Outcome required for on-target bonus achievement
Result
Rating
Bonus contribution
Performance
Lean processes.
Minerals: Improve our process management scores
against the Weir Integrated Network Systems (WINS)
maturity levels. By year end, ten sites moved from
‘Readiness’ to ‘Foundational’ and eight sites from
‘Foundational’ to ‘Emerging’.
Minerals: Achieved target.
●
0.50% out of 0.83%
ESCO: achieve 36.6 labour hours/ton for North America
foundry optimisation.
ESCO: achieved 36.2 labour hours/ton for North America
foundry operations.
●
0.72% out of 0.83%
Capacity optimisation.
Minerals: run rate savings of £9m.
Minerals: run rate savings of £14.6m.
●
0.83% out of 0.83%
ESCO: Transfer moulding line to Xuzhou 2 by 31 July 2024. ESCO: Achieved target.
●
0.83% out of 0.83%
Functional transformation.
100% of approved value case savings achieved.
100% of approved value case savings achieved.
●
0.83% out of 0.83%
Delivery of key Target Enterprise Architecture (TEA)
projects enabling Weir Business Services.
Key TEA projects delivered.
●
0.83% out of 0.83%
Total bonus for strategic measures
(rounded sum of the individual bonus contributions in the table above)
18.6% out of 20% maximum
The Weir Group PLC Annual Report and Financial Statements 2024
134
Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Rating key for ESG measures:
●Outcome achieved meets or exceeds on-target.
●Outcome achieved is between threshold and on-target.
●Outcome achieved is below threshold.
ESG measures (audited)
The next two pages provide the detailed results for the 2024 ESG measures. The per cent bonus contribution for each measure is determined by the result relative to threshold, target and
maximum performance metrics, with the per cent bonus for a result between these points calculated on a straight-line basis.
Priority for 2024
Outcome required for on-target bonus achievement
Result
Rating
Bonus contribution
People
Safety Total Incident Rate (TIR).
Improve our TIR to 0.385.
TIR outcome of 0.42.
●
0% out of 1.67%
Improve our gender diversity.
Increase % of females in job bands 3–5 by 2.5%.
% of females in job bands 3–5 increased by 2.5%.
●
0.50% out of 0.83%
Increase % of females in job bands 1–2 by 1.25%.
No change in % of females in job bands 1–2.
●
0% out of 0.83%
Health and wellbeing.
Maintain our Tier 2 ranking and improve on our 2023
CCLA corporate mental health benchmark score.
Tier 2 ranking maintained and CCLA benchmark score
improved. Recognised by CCLA for making the biggest
overall improvement in managing workplace mental
health over the past two years.
●
1.67% out of 1.67%
Priority for 2024
Outcome required for on-target bonus achievement
Result
Rating
Bonus contribution
Customer
Customer Avoided Emissions.
Expand Avoided Emissions products/range.
GEHO joined HPGR in our AE range. Overall delivered
443kT of avoided CO subscript 2 e.
●
1.67% out of 1.67%
Customer water optimisation.
Develop KPI(s) to report water optimisation outcome
and measure baseline.
Development of mining archetypes to categorise
customer water use has delivered value beyond a
single KPI and will inform tailing flowsheet design work
and customer priorities.
●
1.67% out of 1.67%
Customer waste impact.
Develop KPI(s) to report waste impact outcome and
measure baseline.
Development of mining archetypes to categorise
customer waste outcomes has delivered value beyond
a single KPI and will inform tailing flowsheet design work
and customer priorities.
●
1.67% out of 1.67%
The Weir Group PLC Annual Report and Financial Statements 2024
135
Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Rating key for ESG measures:
●Outcome achieved meets or exceeds on-target.
●Outcome achieved is between threshold and on-target.
●Outcome achieved is below threshold.
ESG measures continued (audited)
Priority for 2024
Outcome required for on-target bonus achievement
Result
Rating
Bonus contribution
Technology
Progress priority R&D projects.
Move less rock – ESCO: Develop proof of concept
(POC) customer facing dashboard within Motion
Metrics™ Pro integrating ore monitoring capabilities.
TM
ESCO: POC delivered.
●
1.25% out of 1.25%
Use less energy – Minerals: Build in-house air classifier
systems sizing and flowsheet modelling capability.
Minerals: Coarse particle floatation (CPF) demonstrated
for iron and lead/zinc.
●
0.63% out of 0.63%
Use less energy – ESCO: Evaluate effectiveness of Rope
Shovel Payload monitoring system against
weighbridge key performance indicators (KPIs).
ESCO: Completed truck scale evaluation study.
l
0.38% out of 0.63%
Use water wisely – Minerals: Innovative cyclone mill
circuit test work completed at customer site.
Minerals: Commercial scale cluster design agreed with
customer for cyclone-based reduced water intensity.
●
1.25% out of 1.25%
Create less waste – Minerals: Performance of cyclones
for tailings dewatering fully quantified and practical
flowsheets developed.
Minerals: First trials on customer site successfully
completed.
●
0.63% out of 0.63%
Create less waste – complete proprietary material
composition for additive repair.
First product successfully shipped to customer.
●
0.63% out of 0.63%
Priority for 2024
Outcome required for on-target bonus achievement
Result
Rating
Bonus contribution
Performance
Reduce scope 1 and 2 CO subscript 2 e vs 2019
base aligned with SBTi.
24% absolute CO subscript 2 e reduction achieved.
27% absolute CO subscript 2 e reduction achieved and verified.
●
1.67% out of 1.67%
ESG data assurance roadmap.
Resource and execute initial set-up in Finance function
and Audit Committee to assure ESG data.
Assurance roadmap reviewed with Audit Committee
and 2024 assurance process underway.
●
1.67% out of 1.67%
Further integrate climate risk and
opportunity in strategic planning.
Assess physical climate exposure for strategic
customers.
Activity to identify customer physical risk parameters
well progressed.
●
1.67% out of 1.67%
Total bonus for ESG measures Note 1
(rounded sum of the individual bonus contributions in the table above, and incorporating
the downward adjustment detailed in Note 1 below).
14.0% out of 20% maximum
Note 1. Weir tragically lost a colleague in a work-related accident in April 2024. Irrespective of cause, Weir takes such matters very seriously in all respects, and as such the Remuneration Committee has determined that a discretionary downward adjustment to the
formulaic ESG measures bonus outcome is appropriate. After careful consideration, the Committee has decided to apply a downward adjustment of 3% of maximum opportunity to the formulaic ESG measures outcome. The ESG measures bonus has,
therefore, been reduced from the formulaic 2024 outcome of 17.0% to 14.0%.
The Weir Group PLC Annual Report and Financial Statements 2024
136
Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Share scheme interests awarded during 2024 (audited)
The following table sets out awards granted to the Executive Directors in the year ended 31 December 2024.
Share award
Award basis
Grant date
Face value of award Number of shares granted
Jon Stanton
Restricted Share (Conditional) Note 1
125% salary
11 April 2024
£1,036,250
50,516
Bonus (Deferred) Note 2
30% bonus
11 April 2024
£306,756
14,954
Brian Puffer
Restricted Share (Conditional) Note 1
100% salary
11 April 2024
£500,000
24,374
Notes
Note 1. There are no performance conditions associated with the restricted share awards. Awards will vest at the end of a three-year period and an additional two-year holding period will also apply, such that vested shares are released five years from grant. The
face value of the restricted share award is based on the average of the closing price for the three days prior to the date of grant, being £20.5133.
Note 2. There are no performance conditions associated with the deferred bonus share awards. Awards will vest at the end of a three-year deferral period. The face value of the deferred bonus share award is based on the average of the closing price for the three
days prior to the date of grant, being £20.5133.
As there are no performance conditions attached to the 2024 restricted share awards there can be no threshold or maximum outcomes. Vesting is subject to continued employment and
assessment of the underpin at the date of vesting in April 2027. Prior to vesting, if any of the thresholds set out below have not been met, it would trigger the Committee to consider whether a
discretionary reduction was required.
Balance sheet health
Breaching covenants. No breach of debt covenant or renegotiation of covenant terms outside a normal refinancing cycle.
Investor returns
Return on Capital Employed (ROCE). Maintain average ROCE over the vesting period above the average Weighted Average Cost of Capital for that period.
Environmental, Social and
Governance (ESG)
Sustainability roadmap progress. Awarded a B listing or better by CDP through the vesting period in recognition of climate change contribution.
Corporate governance
Major governance failure. No material failure in governance or an illegal act resulting in significant reputational damage and/or material financial loss to the Group.
Chief Financial Officer change
Buy-out awards
Brian Puffer joined Weir and was appointed to the Board of Directors as Chief Financial Officer and Executive Director on 1 March 2024. As noted on page 126 of the 2023 Annual Report, the
Remuneration Committee agreed to grant Brian restricted share awards to compensate him for awards forfeited due to leaving his previous employer. These awards were to be made on a
like-for-like basis to reflect as closely as possible the nature, timing and value of the equity awards being forfeited from his previous employer. Accordingly, Brian was granted six separate
restricted share awards in April 2024, each of them corresponding in value to individual grants from his previous employer, with the structure of the awards and vesting dates aligned as closely
as possible with the forfeited awards. The awards have been made in Weir Group PLC restricted shares under the Weir Share Reward Plan. The awards made to Brian are as follows:
– Two restricted share awards without performance conditions, granted on 11 April 2024, amounting to a total of 37,118 Weir shares and an award value of £680,373, representing a like-for-like
replacement of two restricted shares awards forfeited from the previous employer, which had no performance conditions. These awards vest on 28 February 2025 and 27 February 2026. The
value of these awards has been included in the single figure based on the value at the date of grant.
– Two restricted share awards with performance conditions, granted on 11 April 2024, amounting to a total of 45,368 Weir shares and an award value of £831,595, representing a like-for-like
replacement of two share awards forfeited from the previous employer which had performance conditions. The performance conditions on the replacement Weir awards are aligned to the
vesting performance conditions of the two forfeited share awards from his previous employer. The number of Weir shares granted represents the maximum possible outcome and the actual
number of shares that vest will reflect to what extent the performance conditions are satisfied under the former employer’s awards. These awards vest on 31 March 2025 and 31 March 2026
subject to the achievement of the performance conditions. The value of these awards will be included in the single figure at the time of vesting.
– A restricted share award, without performance conditions, granted on 11 April 2024, amounting to a total of 40,747 Weir shares and an award value £746,893, representing a like-for-like
replacement for the gain in respect of market value options forfeited from the previous employer, which had no performance conditions. This award vests on 31 March 2025. The value of these
awards has been included in the single figure based on the value at the date of grant.
The Weir Group PLC Annual Report and Financial Statements 2024
137
Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
– A restricted share award, without performance conditions, granted on 11 April 2024, amounting to 2,127 Weir shares and an award value of £38,988, to compensate for deferred bonus shares
that would have been awarded by the former employer in 2024 in relation to 2023 performance and which would have had no performance conditions. This award vests on 31 March 2027. The
value of this award has been included in the single figure based on the value at the date of grant
The total award value of the Weir buy-out grants on 11 April 2024 was £2,297,849. If the former employer’s performance share plan awards, which have been replaced at maximum potential
outcome ultimately vest at a lower level, then this value would be reduced. For example, if these awards vest at an on-target level, the buy-out award value of the grants on 11 April would be
calculated as £1,882,052. The difference in the buy-out grant values awarded relative to the estimated figures disclosed in the 2023 Directors' Remuneration report is due to changes in the share
price of the CFO's former employer, and the value of the award required to compensate for deferred bonus shares that would have been awarded by the former employer in 2024 in relation to
2023 being less than initially projected.
Buy-out share scheme interests awarded during 2024 (audited)
The following table sets out the buy-out awards granted to the new Chief Financial Officer on 11 April 2024. Those awards which do not include a performance condition totalling £1,466,253 are
included in the 2024 single total figure of remuneration for Executive Directors on page 132.
Buy-out award
Grant date
Vesting date
Vesting performance conditions
Buy-out value of
award Note 5
No of shares granted
Restricted Share (Conditional) Note 1
11 April 2024
28 February 2025
None
£374,684
20,441
Restricted Share (Conditional) Note 1
11 April 2024
31 March 2025
Subject to vesting performance of forfeited award from former employer Note 3
£457,975
24,985
Restricted Share (Conditional) Note 2
11 April 2024
31 March 2025
None
£746,893
40,747
Restricted Share (Conditional) Note 1
11 April 2024
27 February 2026
None
£305,689
16,677
Restricted Share (Conditional) Note 1
11 April 2024
31 March 2026
Subject to vesting performance of forfeited award from former employer Note 4
£373,620
20,383
Restricted Share (Conditional) Note 1
11 April 2024
31 March 2027
None
£38,988
2,127
TOTAL
£2,297,849
125,360
Notes
Note 1. The valuation of the share awards forfeited from the CFO’s former employer uses a BP PLC share price of £4.6070, which was the closing price on 29 February 2024 (the last date before his appointment on 1 March 2024). The number of Weir restricted
shares awarded was determined using a share price of £18.33, which was the closing price on 29 February 2024.
Note 2. The valuation of the market value options forfeited from the CFO’s former employer uses a BP PLC share price of £4.6438, which was the average closing price in the 90-day trading period to 29 February 2024 less the exercise price for these awards. The
number of Weir restricted shares awarded was determined using a share price of £18.33, which was the closing price on 29 February 2024.
Note 3. Vesting performance will be determined by the outcome of the BP PLC 2022–2024 performance shares, as disclosed in the BP PLC Annual Report 2024.
Note 4. Vesting performance will be determined by the outcome of the BP PLC 2023–2025 performance shares, as disclosed in the BP PLC Annual Report 2025.
Note 5. Individual value of each award rounded to nearest £1.
The Remuneration Committee is satisfied that the structure of the buy-out awards is consistent with our Remuneration Policy. Vesting of all of the buy-out awards is conditional on remaining in
employment at the vesting dates, not being under notice of termination of employment and satisfactory individual performance and conduct during the vesting period. Awards have been
granted subject to the terms of the Weir Share Reward Plan including malus and clawback.
The Weir Group PLC Annual Report and Financial Statements 2024
138
Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Single total figure of remuneration for Chair and Non-Executive Directors (audited)
Basic Fee (£)
Senior Independent Director/
Employee Engagement Non-
Executive Director/Committee
Chair Fee (£)
Taxable Benefits Note 9 (£)
Total Fees (£)
2024
2023
2024
2023
2024
2023
2024
2023
Barbara Jeremiah
360,500
346,750
–
–
15,864
24,138
376,364
370,888
Andy Agg Note 1
61,325
–
7,917
–
8,655
–
77,897
–
Nick Anderson Note 2
46,170
–
–
–
4,722
–
50,892
–
Dame Nicola Brewer Note 3
72,200
69,425
16,326
12,270
5,445
1,888
93,971
83,583
Penny Freer
72,200
13,641
18,825
–
5,949
2,982
96,974
16,623
Tracey Kerr Note 4
72,200
69,425
19,599
–
3,696
2,978
95,495
72,403
Ben Magara Note 5
72,200
69,425
12,959
–
21,604
2,578
106,763
72,003
Sir Jim McDonald Note 6
22,852
69,425
4,793
14,550
300
3,270
27,945
87,245
Srinivasan Venkatakrishnan Note 7
17,525
69,425
–
–
–
1,688
17,525
71,113
Stephen Young Note 8
41,825
69,425
10,908
18,125
2,456
5,431
55,189
92,981
Notes
Note 1. Andy Agg was appointed to the Board on 27 February 2024 and succeeded Stephen Young as Chair of the Audit Committee with effect from 31 July 2024.
Note 2. Nick Anderson was appointed to the Board on 15 May 2024.
Note 3. Dame Nicola Brewer succeeded Sir Jim McDonald as Senior Independent Director following the AGM on 25 April 2024 having previously been Employee Engagement Director.
Note 4. Tracey Kerr was appointed as Chair of the newly established Sustainability and Technology Committee on 19 December 2023 and her Committee Chair fees paid in 2024 include a back-dated payment for the period 19 December 2023 to 31 December 2023.
Note 5. Ben Magara succeeded Dame Nicola Brewer as Employee Engagement Director following the AGM on 25 April 2024.
Note 6. Sir Jim McDonald stepped down from the Board following the AGM on 25 April 2024.
Note 7. Srinivasan Venkatakrishnan stepped down from the Board with effect from 31 March 2024.
Note 8. Stephen Young stepped down from the Board with effect from 31 July 2024.
Note 9. Taxable benefits includes travel and accommodation to attend Board meetings. The amounts in the table include the grossed-up cost of the UK tax to be paid by the Company on behalf of the Directors.
Payments for loss of office (audited)
There were no payments made to Directors for loss of office.
Payments to past directors (audited)
No payments were made to past Directors.
The Weir Group PLC Annual Report and Financial Statements 2024
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Directors’ remuneration report
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Strategic Report
Governance
Financial Statements
Additional Information
Statement of Directors’ shareholdings and share interests (audited)
As at 31 December 2024
Shares
owned
outright
Scheme Interests
Unvested restricted
share awards with
underpin and no
performance
conditions
Unvested
recruitment buy-
out restricted share
awards with no
performance
conditions Note 1
Unvested
recruitment buy-
out restricted share
awards with
performance
conditions Note 2
Unvested deferred
bonus share
awards with no
performance
conditions
Shares
owned
outright (% of
salary) Note 3
Shares
owned
outright plus
scheme
interests
(% of salary) Note 4
Shareholding
requirement
(% of salary)
Jon Stanton
219,925
212,815
–
–
40,215
579%
933%
400%
Brian Puffer
–
24,374
79,992
45,368
–
–
242%
300%
Barbara Jeremiah
9,750
–
–
–
–
–
–
–
Andy Agg
–
–
–
–
–
–
–
–
Nick Anderson
3,100
–
–
–
–
–
–
–
Dame Nicola Brewer
500
–
–
–
–
–
–
–
Penny Freer
–
–
–
–
–
–
–
–
Tracey Kerr
–
–
–
–
–
–
–
–
Ben Magara
–
–
–
–
–
–
–
–
Sir Jim McDonald Note 5
500
–
–
–
–
–
–
–
Srinivasan Venkatakrishnan Note 6
500
–
–
–
–
–
–
–
Stephen Young Note 7
7,904
–
–
–
–
–
–
–
Notes
Note 1. Buy-out restricted share awards granted to Brian Puffer, which are not subject to performance conditions, as detailed on pages 137 to 138.
Note 2. Buy-out restricted share awards granted to Brian Puffer, which are subject to performance conditions, as detailed on pages 137 to138.
Note 3. The share price of £21.84 on 31 December 2024 has been used to calculate the value of shares owned outright as a percentage of salary.
Note 4. The share price of £21.84 on 31 December 2024 has been used to calculate the value of shares owned outright and scheme interests as a percentage of salary. The value of scheme interests is included in the percentage assessment against the
shareholding requirement where there are no performance conditions attached to the unvested awards. Accordingly, the 45,368 awarded to Brian Puffer, which are subject to performance conditions (see note 2 above and further detail on
pages
137 to138) are excluded from the calculation. The value of unvested scheme interests included in the calculation are on an estimated net-of-tax basis.
Note 5. Reflects the shares owned outright position when Sir Jim McDonald stepped down from the Board following the AGM on 25 April 2024.
Note 6. Reflects the shares owned outright position when Srinivasan Venkatakrishnan stepped down from the Board with effect from 31 March 2024.
Note 7. Reflects the shares owned outright position when Stephen Young stepped down from the Board with effect from 31 July 2024.
There have been no changes in the interests of each Director between 31 December 2024 and the date of this report.
External appointments
During the year, Jon Stanton was a Non-Executive Director of Imperial Brands PLC. He received £127,854 in fees. Brian Puffer had no external appointments.
The Weir Group PLC Annual Report and Financial Statements 2024
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Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
CEO pay ratio
The table below shows our CEO pay ratio at 25th, median and
75th percentile of our UK employees as at 31 December
2024. The 25th, median and 75th percentile employees were
determined by calculating total pay for the 2024 financial
year using payroll data from 1 January 2024 to 31 December
2024. The increase in the pay ratio from 2023 to 2024 is
primarily due to i) a higher total percentage value of tranches
from prior-year restricted share awards vesting in 2024 in
comparison to 2023; and ii) the share price growth between
April 2023 and April 2024, which is used to determine the
value of the restricted shares that vested on these dates. The
ratios for 2020 to 2024 have been determined using Option A
of the regulations given Option A is the most robust
approach and preferred by shareholders. We are satisfied
that the median pay ratio is consistent with the pay, reward
and progression policies for our UK employees.
Financial year
Calculation
method
25th
percentile
pay ratio
Median
pay ratio
75th
percentile
pay ratio
2024
Option A
80:1
61:1
39:1
2023
Option A
69:1
57:1
39:1
2022
Option A
67:1
53:1
39:1
2021
Option A
53:1
42:1
30:1
2020
Option A
27:1
22:1
17:1
2019
Option A
56:1
44:1
34:1
Jon Stanton
25th
percentile
Median
75th
percentile
Total pay
£3,310,149
£41,601
£54,502
£84,513
Base salary
£821,000
£28,602
£49,600
£73,573
Notes
Total pay for the percentile employees includes the following pay elements: base
salary, annual bonus, restricted shares, ShareBuilder, annual leave adjustment, shift
premium and allowance, sick pay, overtime pay, first aid allowance, living
allowances, employer pension contribution and the provision of private medical
and life assurance. We have uprated pay for part-time employees and new
joiners accordingly to calculate full-time equivalent total pay. For employees other
than the CEO, annual bonuses considered for the purposes of the calculation are
those which are paid in the financial year, as wider workforce bonuses related to
2024 performance remain to be determined at the time of the calculation. We
offer competitive and fair rates of pay across the organisation, and employees are
eligible to participate in our global all-employee share plan, Weir ShareBuilder.
Gender pay
For 2024, our mean gender pay gap has remained broadly
consistent as being in favour of females when compared to
2023, changing from -7% to -11%. Our median gender pay
gap in favour of females has changed from -18% to -30%.
While our outcomes show we are generally well positioned
on gender pay, we recognise that this is largely due to the
high number of males who are working in lower paid
production and field roles.
We continue to take action and set targets to appoint more
females across our workforce, albeit noting that our female
gender pay percentages can be influenced significantly by
only small changes in the female workforce. Nevertheless,
good progress has been made in the number of females in
the higher pay quartiles, with an increase from 30% in 2023 to
38% in 2024 of females in the upper pay quartile and an
increase from 21% in 2023 to 29% in 2024 of females in the
upper middle pay quartile.
The median gender bonus gap for 2024 is -24% in favour of
females due to female bonus participants generally being in
corporate roles rather than production and field roles.
Correspondingly, a higher proportion of females receive a
bonus relative to males.
A copy of the full Gender Pay report can be found on our
website global.weir/investors/gender-pay/
The requirements and our outcomes
The UK Government’s Gender Pay Gap Regulation requires
legal entities with 250 or more employees to publish details
of their gender pay and bonus gap. In Weir, there is one
employing entity required to publish this data, but we have
taken the opportunity to publish the consolidated data for
our UK employees as this is more representative of our UK
organisation.
Gender pay and equal pay
The gender pay gap is different from equal pay, which relates
to men and women being paid the same for similar roles or
work of equal value. Our pay policies are designed to ensure
equal pay for equal jobs and we have processes in place to
ensure pay levels are reviewed consistently.
Mean and median pay and bonus gap
Mean
Median
Gender pay gap
negative 11%
negative 30%
Gender bonus gap
20%
negative 24%
Proportion of males and females receiving a bonus
Male
38%
Female
63%
Proportion of males and females in each pay
quartile band
Male
Female
Upper
62%
38%
Upper middle
71%
29%
Lower middle
81%
19%
Lower
80%
20%
The Weir Group PLC Annual Report and Financial Statements 2024
141
Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
The graph on the right shows Weir’s TSR
performance against the performance of
the FTSE 350 over the ten-year period to
31 December 2024. The FTSE 350 was chosen
because it is a broad equity index of which
Weir is a constituent.
The further graph below shows Weir’s TSR
performance against the performance of
the FTSE 350 over the five-year period to
31 December 2024, providing a view of relative
performance which, is more closely aligned to
the tenure of the current Executive team.
Weir's 10 year TSR performance against the performance of the FTSE 350
Weir's 5 year TSR performance against the performance at the FTSE 350
The Weir Group PLC Annual Report and Financial Statements 2024
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Directors’ remuneration report
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Strategic Report
Governance
Financial Statements
Additional Information
Change in Chief Executive’s remuneration over ten years
The table below shows the total remuneration over the period 1 January 2015 to 31 December 2024, as well as outcomes under the annual bonus and long-term incentive plans.
Single total figure £000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Jon Stanton
–
281 Note 1
1,441
2,400
1,434
897
1,768
2,512
2,774
3,310
Keith Cochrane
1,065
1,012 Note 2
–
–
–
–
–
–
–
–
Annual bonus
(% of maximum)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Jon Stanton
–
38%
70%
62%
38%
0% Note 3
52%
83%
86%
86%
Keith Cochrane
20%
40%
–
–
–
–
–
–
–
–
Long-term incentive
(% of maximum) Note 4
2015
2016
2017
2018
2019
2020
2021 Note 5
2022 Note 6
2023 Note 6
2024 Note 7
Jon Stanton
–
–
–
75%
45%
100%
93%
92%
92%
96%
Keith Cochrane
–
–
–
–
–
–
–
–
–
–
Notes
Note 1. Relates to the period Jon Stanton was CEO from 1 October 2016.
Note 2. Relates to the period Keith Cochrane was on the Board to 30 September 2016.
Note 3. The formulaic annual bonus outcome for 2020 was 46%, however, this was waived by the Executive Directors.
Note 4. The final award under the Long-Term Incentive Plan was made in 2017 and which vested at 45% of maximum in 2019 as shown above. From 2018, restricted shares were awarded to the CEO, which have no performance conditions. Vesting of the restricted
shares commenced from 2020 onwards and will ordinarily be at 100% of the shares initially granted, subject to an underpin consisting of a basket of threshold metrics being met.
Note 5. The value of 93% in 2021 incorporates the respective 10% and 5% downwards adjustment to the tranches of the 2018 and 2019 restricted share awards vesting in 2021 to reflect the technical breach of the dividend underpin, as previously communicated to
shareholders.
Note 6. The value of 92% in each of 2022 and 2023 incorporates the 'windfall gains' related downwards adjustment of 15% to the first and second tranches of the 2020 restricted share award vesting in these years, as previously communicated to shareholders..
Note 7. The value of 96% in 2024 incorporates the 'windfall gains' related downwards adjustment of 10% to the third tranche of the 2020 restricted share award vesting in 2024, as previously communicated to shareholders.
The Weir Group PLC Annual Report and Financial Statements 2024
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Directors’ remuneration report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Percentage change in remuneration of Board Directors and wider employee population
The table below shows the percentage change in elements of remuneration for the Board Directors. The employee population comprises those employed by The Weir Group PLC.
% Change 2023–2024
% Change 2022–2023
% Change 2021–2022
% Change 2020–2021
% Change 2019–2020
Salary/
Fees Note 8
Taxable
Benefits Note 8
Bonus Note 8
Salary/
Fees Note 8
Taxable
Benefits Note 8
Bonus Note 8
Salary/
Fees Note 8
Taxable
Benefits Note 8
Bonus Note 8
Salary/
Fees Note 8
Taxable
Benefits Note 8
Bonus Note 8
Salary/
Fees Note 8
Taxable
Benefits Note 8
Bonus Note 8
Average UK Employee
(1.5%)
37.2%
0.1%
(0.3%)
52.6%
26.8%
9.1%
(34.2%)
69.3%
0.2%
26.6%
73.6%
(3.3%)
(36.6%)
(65.4%)
Jon Stanton (CEO)
4.5%
12.6%
4.1%
6.0%
10.7%
8.6%
5.4%
7.0%
71.4%
2.3%
0.5%
n/a
0.7%
28.3%
(100.0%)
Brian Puffer (CFO) Note 1
n/a
n/a
n/a
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
Barbara Jeremiah
4.0%
(34.3%)
–%
37.0%
51.9%
–%
225.3% 18813.1%
–%
2.3%
(87.8%)
–%
21.8%
n/a
–%
Andy Agg Note 2
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
Nick Anderson Note 3
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
Dame Nicola Brewer Note 4
8.4%
188.3%
–%
173.2%
(50.6%)
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
Penny Freer
567.3%
99.5%
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
Tracey Kerr
32.2%
24.0%
–%
132.2%
(45.2%)
–%
n/a
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
Ben Magara
22.7%
738.0%
–%
4.0%
(28.9%)
–%
9.0%
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
Sir Jim McDonald Note 5
(67.1%)
(90.8%)
–%
10.1%
398.5%
–%
18.6%
n/a
–%
2.3%
n/a
–%
0.7%
n/a
–%
Srinivasan
Venkatakrishnan Note 6
(74.8%)
(100.0%)
–%
4.0%
(37.0%)
–%
9.0%
n/a
–%
n/a
n/a
–%
n/a
n/a
–%
Stephen Young Note 7
(39.8%)
(54.8%)
–%
4.0%
(9.3%)
–%
3.8%
n/a
–%
2.3%
(100.0%)
–%
0.7%
n/a
–%
Notes
Note 1. Brian Puffer joined as CFO and was appointed to the Board from 1 March 2024.
Note 2. Andy Agg was appointed to the Board on 27 February 2024 and succeeded Stephen Young as Chair of the Audit Committee with effect from 31 July 2024.
Note 3. Nick Anderson was appointed to the Board on 15 May 2024.
Note 4. Dame Nicola Brewer succeeded Sir Jim McDonald as Senior Independent Director following the AGM on 25 April 2024 having previously been Employee Engagement Director.
Note 5. Sir Jim McDonald stepped down from the Board following the AGM on 25 April 2024.
Note 6. Srinivasan Venkatakrishnan stepped down from the Board with effect from 31 March 2024.
Note 7. Stephen Young stepped down from the Board with effect from 31 July 2024.
Note 8. The n/a values shown reflect that a percentage change cannot be calculated given the nil value in the previous year. The Single Total Figure of Remuneration for Executive Directors on page 132 and the Single Total Figure of Remuneration for Chair and
Non-Executive Directors on page 139 provide further detail.
Relative importance of spend on pay
The table below shows the change in total staff pay for continuing operations between 2024 and 2023, and dividends paid out in respect of 2024 and 2023.
Financial year
2024
£m
2023
£m
Percentage
Change
Overall spend on pay for employees
622.8
632.9
(1.6)%
Profit distributed by way of dividend
99.8
95.9
4.1 %
Details of the overall spend on pay for employees can be found in note 5 to the Group Financial Statements on page 182. Details of the dividends declared and paid are contained in note 11 to
the Group Financial Statements on page 188.
The Weir Group PLC Annual Report and Financial Statements 2024
144
Directors’ remuneration report
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Strategic Report
Governance
Financial Statements
Additional Information
Complying with UK Corporate Governance Code 2018
The following table summarises how our Remuneration Policy set out on pages 122 to 131 fulfils the factors set out in provision 40 of the UK Corporate Governance Code 2018.
Clarity
Remuneration arrangements should be
transparent and promote effective
engagement with shareholders and the
workforce.
The Committee is committed to providing open and transparent disclosures to shareholders and the workforce with
regards to executive remuneration arrangements.
The 2024 Directors’ Remuneration report sets out the remuneration arrangements for the Executive Directors in a
clear and transparent way.
There is also an AGM where shareholders can ask any questions on the remuneration arrangements.
Simplicity
Remuneration structures should avoid
complexity and their rationale and operation
should be easy to understand.
Our remuneration arrangements for Executive Directors, as well as those throughout the organisation, are simple in
nature and understood by all participants.
The structure for Executive Directors consists of fixed pay (salary, benefits, pension), annual bonus scheme and a
restricted share plan.
Risk
Remuneration arrangements should ensure
reputational and other risks from excessive
rewards, and behavioural risks that can arise
from target-based plans, are identified and
mitigated.
The Committee considers that the structure of incentive arrangements does not encourage inappropriate risk taking.
Under the annual bonus, discretion may be applied where formulaic outcomes are not considered reflective of
underlying Company performance. There are robust underpins in place for restricted share awards.
Malus and clawback provisions also apply to variable incentives.
Predictability
The range of possible values of rewards to
individual Directors and any other limits or
discretions should be identified and
explained at the time of approving the policy.
The annual bonus scheme is the only scheme currently in operation for Executive Directors where there is variability in
payouts depending on the performance of the Company. The restricted share awards are subject to share price
movements and, therefore, aligned with the shareholder experience.
The potential value and composition of the Executive Directors’ remuneration packages at below threshold,
mid-point, maximum and maximum including a 50% share price increase scenarios are provided in the Directors’
Remuneration Policy.
Proportionality
The link between individual awards, the
delivery of strategy and the long-term
performance of the Company should be
clear. Outcomes should not reward poor
performance.
Payments from annual bonus require robust performance against challenging conditions. Performance conditions
have been designed to link with Group strategy and consist of financial and non-financial metrics.
The Committee has discretion to override formulaic outturns to ensure that they are appropriate and reflective of
overall performance.
Alignment to culture
Incentive schemes should drive behaviours
consistent with Company purpose, values
and strategy.
We granted free shares under Weir ShareBuilder to all employees newly-attaining 12 months' service by the 2024
award date. ShareBuilder is our global all employee share plan, and is part of our ambition of making all Weir
colleagues shareholders.
The variable incentive schemes, performance measures and underpins are designed to be consistent with the
Company’s purpose, values and strategy.
The Weir Group PLC Annual Report and Financial Statements 2024
145
Directors’ remuneration report
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Strategic Report
Governance
Financial Statements
Additional Information
The Remuneration Committee in 2024
There were five Committee meetings during 2024.
Role
Name
Title
Chair and members
Penny Freer
Nick Anderson Note 1
Dame Nicola Brewer
Ben Magara
Stephen Young Note 2
Independent Non-Executive
Directors
Internal attendees
Barbara Jeremiah
Jon Stanton
Rosemary McGinness
Craig Gibson
Caroline Hagg Note 3
Elise Coleman-Bragg Note 4
Graham Vanhegan
Chair
Chief Executive Officer
Chief People Officer
Group Head of Reward
Corporate Lawyer
Corporate Lawyer
Chief Legal Officer and
Company Secretary and
Secretary to the Committee
Committee’s external adviser
Deloitte LLP
Adviser to Committee
Notes
Note 1. Nick Anderson was appointed to the Board and as a member of the Remuneration Committee on 15 May 2024.
Note 2. Stephen Young stepped down from the Board and as a member of the Remuneration Committee with effect from 31 July 2024.
Note 3. Until April 2024.
Note 4. From April 2024.
Internal advisers provided important information to the Committee and attended meetings. None of the individuals were involved in any decisions relating to their own remuneration.
Deloitte LLP was appointed by the Committee in 2016 following a competitive tender process, and provided services to the Committee for the year ended 31 December 2024. Fees paid to
Deloitte LLP for work that materially assisted the Committee were £147,100 charged on a time and material basis. Deloitte LLP also provided other services to the Weir Group in the year, principally
tax advisory and compliance services. Deloitte is a signatory to the Remuneration Consultants’ Group Voluntary Code of Conduct and the Committee is satisfied that Deloitte’s advice was
objective and independent. The Committee is comfortable that the Deloitte engagement partner and team that provides advice to the Committee do not have connections with the Company
or its Directors that may impair their independence.
The Weir Group PLC Annual Report and Financial Statements 2024
146
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Strategic Report
Governance
Financial Statements
Additional Information
Committee’s performance
The Committee’s Terms of Reference are reviewed on an annual basis and were last updated in January 2025. A copy can be found on our website: global.weir/siteassets/pdfs/investors/board-
committees/2025/weir-group-remuneration-committee-terms-of-reference-2025.pdf.
The Committee was evaluated as part of the 2024 Board Effectiveness Review (see page 89), and it was concluded that the Committee was fulfilling its Terms of Reference effectively.
Shareholder voting
The table below sets out the voting by shareholders on the resolution to approve the Directors’ Remuneration report at the AGM held in April 2024.
For
Against
Total
Votes Cast
Withheld
Remuneration report
206,948,262
(98.74%)
2,649,836
(1.26%)
209,598,098
(80.74%)
17,622
The table below sets out the voting by shareholders on the resolution to approve the current Directors’ Remuneration Policy at the AGM held in April 2022.
For
Against
Total
Votes Cast
Withheld
Remuneration Policy
193,938,328
(90.47%)
20,430,745
(9.53%)
214,369,073
(82.57%)
5,321,171
Annual General Meeting
This report will be submitted to shareholders for approval at the Annual General Meeting to be held on 24 April 2025.
Penny Freer
Chair of the Remuneration Committee
27 February 2025
The Weir Group PLC Annual Report and Financial Statements 2024
147
Directors’ remuneration report
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Strategic Report
Governance
Financial Statements
Additional Information
Directors’ report
The Directors present their report for the year ended 31
December 2024.
Disclosures set out elsewhere in this Annual Report
The following cross-referenced material, which would
otherwise be required to be disclosed in this Directors'
Report, is incorporated into the Director's Report.
Subject matter
Page reference
Particulars of any important events, if any,
affecting the Company which have occurred
since the end of the financial year
226
An indication of likely future developments in
the business of the Company
15 to16
An indication of the activities of the Company
in the field of research and development
26 to 28
Details of employee policy and involvement
19, 32 to 33
and 84 to 86
Details of engagement with other
stakeholders
19 to 20, 83
and 87
Greenhouse gas emissions and energy
consumption
55 and 56
Principal risks and uncertainties
59 to 70
Section 172 statement
20, 82
Corporate Governance Report
73 to 147
Disclosures required under UK Listing Rule 6.6.1
For the purposes of UK Listing Rule 6.6.4, the information to be
disclosed under the UK Listing Rule 6.6.1 is set out in the table
below.
Subject matter
Page reference
Shareholder waiver of dividends (LR 6.6.1(11)
and (12))
149
Paragraphs (1), (2), (3), (4), (5), (6), (7), (8), (9), (10) and (13) of UK Listing Rule 6.6.1
are not applicable.
Company number
The Weir Group PLC is registered in Scotland under company
number SC002934 with its registered address at 10th Floor,
1 West Regent Street, Glasgow, G2 1RW, Scotland.
2025 Annual General Meeting
The Annual General Meeting will be held on 24 April 2025 at
the Head Office, 1 West Regent Street, Glasgow, G2 1RW.
The Notice of Meeting, along with an explanation of the
proposed resolutions, are set out in a separate document
which accompanies this Annual Report and can be
downloaded from the Company’s website. The Company
conducts the vote at the AGM by poll and the result of the
votes, including proxies, is published on the Company’s
website after the meeting.
Dividend
The Directors have recommended a final dividend of 22.1p
per share for the year ended 31 December 2024. Payment of
this dividend is subject to shareholder approval at the Annual
General Meeting to be held on 24 April 2025.
Substantial shareholders
As at 31 December 2024, the following substantial interests in
the Company's ordinary share capital had been notified to
the Company in accordance with Disclosure Guidance and
Transparency Rule 5 (DTR 5). It should be noted that these
holdings may have changed since the Company was
notified. However, notification of any change is not required
until the next notifiable threshold under DTR 5 is crossed.
Shareholder
Number of
voting rights
Percentage of
voting rights
BlackRock, Inc
13,996,785
5.01
Massachusetts Financial
Services Company
12,955,326
4.99
Baillie Gifford & Co
12,917,453
4.98
Employee-related information
The average number of employees in the Group during the
year is given in note 5 to the Group Financial Statements on
page 183.
Group companies operate within a framework of HR policies,
practices and regulations appropriate to their market sector and
country of operation. Policies and procedures for recruitment,
training and career development promote equality of
opportunity regardless of gender, sexual orientation, age, marital
status, disability, race, religion or other beliefs and ethnic or
national origin. At Weir, we strive to build an inclusive culture in
which all employees have the opportunity to succeed and to be
able to do the best work of their lives. The Group remains
committed to the fair treatment of people with disabilities,
including: giving full and fair consideration to applications made
by people with disabilities, having regard to their particular
aptitudes and abilities; continuing the employment of, and
arranging training for, employees who have become disabled
during the course of their employment; and offering training,
career development and promotion opportunities for people
with disabilities. Meaningful dialogue with our employees is
actively encouraged. Further details on our employees can be
found on pages 32 to 34 and 84 to 86.
Use of financial instruments
The information required in respect of financial instruments
as required by Schedule 7 of The Large and Medium-sized
Companies and Groups (Accounts and Reports) Regulations
2008 is given in note 30 to the Group Financial Statements on
page 217.
Share capital and rights attaching to the
Company’s shares
Details of the issued share capital of the Company, which
comprises a single class of ordinary shares of 12.5p each are
set out in note 25 to the Group Financial Statements on page
212. The rights attaching to the shares are set out in the
Company’s Articles of Association. There are no special
control rights in relation to the Company’s shares and the
Company is not aware of any agreements between
shareholders that may result in restrictions on the transfer of
securities and/or voting rights.
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148
Strategic Report
Governance
Financial Statements
Additional Information
Voting rights
The Company’s Articles of Association provide that on a show
of hands at a general meeting of the Company, every holder
of ordinary shares present in person and by proxy and
entitled to vote shall have one vote and on a poll, every
member present in person or by proxy and entitled to vote
shall have one vote for every ordinary share held.
The Notice of the AGM specifies deadlines for exercising
voting rights and appointing a proxy or proxies to vote in
relation to resolutions to be passed at the AGM. The
Company conducts the vote at the AGM by poll and the
result of the poll will be released to the London Stock
Exchange and posted on the Company’s website as soon as
practicable after the meeting.
The Articles of Association may only be amended by a special
resolution passed at a general meeting of Shareholders.
Transfer of shares
There are no restrictions on the transfer of ordinary shares in
the Company, other than as contained in the Articles of
Association:
– The Directors may refuse to register any transfer of any
certificated share which is not fully paid up, provided that
this power will not be exercised so as to disturb the market
in the Company’s shares.
– The Directors may also refuse to register the transfer of a
certificated share unless it is delivered to the Registrar’s
office, or such other place as the Directors have specified,
accompanied by a certificate for the shares to be
transferred and such other evidence as the Directors may
reasonably require to prove title of the intending transferor.
Certain restrictions may from time to time be imposed by
laws and regulations, for example, insider trading laws, in
relation to the transfer of shares.
Employee benefit trust arrangements
(including waiver of dividends)
The Group has a nominee arrangement with Computershare
Investor Services PLC (the ‘Computershare Nominee’) and
employee benefit trusts with Estera Trust (Jersey) Limited
(the ‘Estera EBT’) and Computershare Trustees (Jersey)
Limited (the ‘Computershare EBT’).
The Computershare EBT purchased 646,239 shares in the market
at an aggregate value of £13,297,475 on behalf of the Company
for satisfaction of any future vesting of the awards granted
under the Share Reward Plan and the ShareBuilder plan.
During the period, the SRP vested and the trustees of the
Computershare EBT transferred 271,833 ordinary shares to
employees to satisfy the SRP awards and transferred 4,746
shares to Computershare Nominee to be held on behalf of
participants and subject to the rules of the SRP Deferred
Bonus Plan.
During the period, the ShareBuilder plan vested and the
trustees of the Computershare EBT transferred 9,764 ordinary
shares to employees to satisfy the ShareBuilder plan awards.
Both the Estera EBT and Computershare Nominee agreed to
waive any right to all dividend payments on shares held by
them with the exception of shares held in respect of awards
which have a dividend entitlement.
Details of the shares held by the Computershare Nominee,
the Computershare EBT and the Estera EBT are set out in note
25 to the Group Financial Statements on page 212.
The 930,249 shares held in the Computershare Nominee are
the shares in respect of which dividends have not been
waived. The 218,405 shares held in the Computershare
Nominee are subject to post vesting restrictions.
The Computershare Nominee held 0.36% of the issued share
capital of the Company as at 31 December 2024. The shares
are held on behalf of employees and former employees of
the Group.
The Computershare EBT held, through nominee account
Computershare Nominees (Channel Islands) Limited, 0.79%
of the issued share capital of the Company as at 31
December 2024. This is held in trust on behalf of the
Company for satisfaction of any future vesting of the awards
granted under the Share Reward and ShareBuilder Plans.
The voting rights in relation to these shares are exercised by
the trustees. The Computershare EBT may vote or abstain
from voting with the shares or accept or reject any offer
relating to shares, in any way they see fit, without incurring
any liability and without being required to give reasons for
their decision.
Authority to issue shares
At the 2024 Annual General Meeting, shareholders renewed
the directors' authority to allot shares in the Company up to
an aggregate nominal amount equivalent to two thirds of the
shares in issue (of which one third must be offered by way of
rights issue). No shares were issued under this authority
during the year ended 31 December 2024.
A further special resolution passed at the 2024 Annual
General Meeting granted authority to the directors to allot
equity securities in the Company for cash, without regard to
the pre-emption provisions of the Companies Act 2006 in
certain circumstances. No shares were issued under this
authority during the year ended 31 December 2024.
At the forthcoming Annual General Meeting, the Board will
again seek shareholder approval to renew these authorities
to allot shares.
The Weir Group PLC Annual Report and Financial Statements 2024
149
Directors’ report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Authority to purchase own shares
At the 2024 Annual General Meeting, shareholders renewed
the Company’s authority to make market purchases of
c.25.9m ordinary shares (representing approximately 10% of
the issued share capital excluding treasury shares). No shares
were purchased under this authority during the year ended
31 December 2024. At the forthcoming Annual General
Meeting, the Board will again seek shareholder approval to
renew the annual authority for the Company to make market
purchases at the same level.
Directors
The names of the persons who were Directors of the
Company as at the date of this report are set out on pages
75 to 78. During the financial year, the following individuals
also acted as Directors of the Company:
– Srinivasan Venkatakrishnan (resigned 31 March 2024)
– Sir Jim McDonald (resigned 25 April 2024)
– Stephen Young (resigned 31 July 2024)
Appointment and replacement of Directors
The provisions about the appointment and re-election of
Directors of the Company are contained in the Articles of
Association. Under the terms of reference of the Nomination
Committee, any appointment must be recommended by the
Nomination Committee for approval by the Board. All
Directors retire and seek election or re-election (as
applicable) at each annual general meeting in line with the
UK Corporate Governance Code.
Powers of Directors
The business of the Company is managed by the Directors,
who may exercise all the powers of the Company, subject to
the provisions of the Company’s Articles of Association, any
special resolution of the Company and any relevant
legislation.
Directors’ indemnities
The Company has granted indemnities to each of its
Directors in respect of all losses arising out of or in
connection with the execution of their powers, duties and
responsibilities as Directors to the extent permitted by the
Companies Act 2006 and the Company’s Articles
of Association. In addition, Directors and Officers of the
Company and its subsidiaries and trustees of its pension
schemes are covered by Directors’ and Officers’ liability
insurance.
Pension scheme indemnities
The Group operates a closed defined benefit pension
scheme in the UK which provides retirement and death
benefits for employees and former employees of the Group:
The Weir Group Pension and Retirement Savings Scheme. The
corporate trustee of the pension scheme is The Weir Group
Pension Trust Limited, a subsidiary of The Weir Group PLC.
Qualifying pension scheme indemnity provisions, as defined
in section 235 of the Companies Act 2006, were in force for
the financial year ended 31 December 2024 and remain in
force for the benefit of each of the Directors of The Weir
Group Pension Trust Limited. These indemnity provisions
cover, to the extent permitted by law, certain losses or
liabilities incurred as a Director or officer of the corporate
trustees of the pension schemes.
Directors' share interests
Details regarding the share interests of the directors (and the
persons closely associated with them) in the share capital of
the Company are set out in the Directors' Remuneration
Report on page 140.
Change of control – significant agreements
The following significant agreements contain provisions
entitling the counterparties to require prior approval, exercise
termination, alteration or similar rights in the event of a
change of control of the Company.
The Group has in place a US$600m multi-currency revolving
credit facility (the ‘Facility’) which is due to mature in April
2029. Under the terms of this Facility, if there is a change of
control of the Company, the Company has 30 days from the
date of the change of control to agree terms for continuing
the Facility. If at the end of the 30 days no agreement is
reached between the Company and the banks, then any
lender may request, by not less than 30 days’ notice to the
Company, that its commitment be cancelled and all
outstanding amounts be repaid to that lender at the expiry of
such notice period.
The Company has issued US$800m Sustainability-Linked Notes. If
a Change of Control Repurchase Event occurs, the Company will
be required to make an offer to each Holder of the Notes to
repurchase all or any part of the Notes of such Holders at a
repurchase price in cash equal to 101% of the aggregate
principal amount of the Notes repurchased, plus any accrued
and unpaid interest on the Notes repurchased to, but
not including, the date of repurchase. A Change of Control
Repurchase Event means the occurrence of both a Change of
Control and a Rating Event.
The Company has also issued £300m Sustainability-Linked
Notes. If a Change of Control Repurchase Event occurs, the
Company will be required to make an offer to each Holder of the
Notes to repurchase all or any part of the Notes of such Holders
at a repurchase price in cash equal to 101% of the aggregate
principal amount of the Notes repurchased, plus any accrued
and unpaid interest on the Notes repurchased to, but not
including, the date of repurchase. A Change of Control
Repurchase Event means the occurrence of both a Change of
Control and a Rating Event.
There are no agreements between the Company and its
Directors or employees providing for compensation for loss
of office or employment (whether through resignation,
purported redundancy or otherwise) that occurs because of
a takeover bid.
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150
Directors’ report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Political donations
The Group did not make any political donations or incur any
political expenditure, or make any contributions to a non-UK
political party, during the year.
Branches
The Company, through various subsidiaries, has established
branches in a number of different countries in which the
Group operates.
Disclaimer and forward-looking statements
This Annual Report has been prepared for, and only for, the
members of the Company, as a body, and no other persons.
The Company, its Directors, employees, agents and advisers,
do not accept or assume responsibility to any other person
to whom this document is shown or into whose hands it may
come, and any such responsibility or liability is expressly
disclaimed. This Annual Report may contain statements that
are not based on current or historical fact and/or that are
forward-looking in nature. Please refer to the cautionary
statement on page 1.
Disclosure of information to auditor
Each of the directors who held office at the date of approval
of this Directors' report confirms that:
– so far as each Director is aware, there is no relevant audit
information (as defined by section 418 of the Companies
Act 2006) of which the Company’s auditors are unaware;
and
– each Director has taken all of the steps that they ought to
have taken as a Director to make themselves aware of any
relevant audit information and to establish that the
Company’s auditors are aware of that information.
Going concern
These financial statements have been prepared on the going
concern basis.
As discussed in the Chief Executive Officer’s review, the Group
executed well against commitments to its stakeholders
delivering significant growth in operating profit, operating
margin and cash generation.
As discussed in the Financial review, as a result of strong cash
generation in 2023, the Group reduced its multi-currency
revolving credit facility (RCF) by US$200m to US$600m in
February 2024. In March 2024, the Group exercised the option
to extend its RCF by one year, which will now mature in April
2029. Following these financing actions, and supported by
another year of strong cash generation, the Group retains
substantial levels of liquidity over the medium term.
The Group has delivered strong financial results in the current
year and enters 2025 with a strong order book. Activity levels
in our mining markets are positive, supported by favourable
commodity prices, and we have a clear strategy to capitalise
on the attractive long-term structural trends in our markets,
including our technology strategy to accelerate sustainable
mining. However, macroeconomic and geopolitical
uncertainty persists. Therefore, recognising these
uncertainties, the Group performed financial modelling of
future cash flows, which cover a period of 12 months from
the approval of the 2024 Annual Report and Financial
Statements.
The financial modelling included reverse stress testing, which
focused on the level of downside risk that would be required
for the Group to breach its current lending facilities (note 20
to the Group Financial Statements) and related financial
covenants (note 31 to the Group Financial Statements). The
review indicated that the Group continues to have sufficient
headroom on both lending facilities and related financial
covenants. The circumstances, which would lead to a breach,
are not considered plausible.
The Directors, having considered all available relevant
information, have a reasonable expectation that the
Group has adequate resources to continue to operate
as a going concern.
The Directors’ report has been approved by the Board of
Directors in accordance with the Companies Act 2006.
On behalf of the Board of Directors
Jennifer Haddouk
Company Secretary
27 February 2025
The Weir Group PLC Annual Report and Financial Statements 2024
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Directors’ report
continued
Strategic Report
Governance
Financial Statements
Additional Information
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Annual Report
and the Financial Statements in accordance with applicable
law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law, the
Directors have prepared the Group Financial Statements in
accordance with both international accounting standards in
conformity with the requirements of the Companies Act 2006
and UK-adopted International Accounting Standards and the
Company Financial Statements in accordance with United
Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising FRS 101
‘Reduced Disclosure Framework’, and applicable law).
Under company law, the Directors must not approve the
financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Group and
Company and of the profit or loss of the Group for that
period. In preparing the financial statements, the Directors
are required to:
– select suitable accounting policies and then apply
them consistently;
– state whether applicable international accounting
standards in conformity with the requirements of the
Companies Act 2006 and the UK-adopted International
Accounting Standards, have been followed for the Group
Financial Statements and United Kingdom Accounting
Standards, comprising FRS 101 have been followed for
the Company Financial Statements, subject to any
material departures disclosed and explained in the
financial statements;
– make judgements and estimates that are reasonable
and prudent; and
– prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the Group
and Company will continue in business.
The Directors are also responsible for safeguarding the
assets of the Group and Company and hence for taking
reasonable steps for the prevention and detection of fraud
and other irregularities.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Group’s and Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the
Group and Company and enable them to ensure that the
financial statements comply with the Companies Act 2006.
The Directors are responsible for the maintenance and
integrity of the Company’s website. Legislation in the United
Kingdom governing the preparation and dissemination of
financial statements may differ from legislation in
other jurisdictions.
The Directors consider that the Annual Report and Financial
Statements, taken as a whole, are fair, balanced and
understandable and provide the information necessary for
Shareholders to assess the Group’s performance, business
model and strategy.
Each of the Directors, as at the date of this report, confirms to
the best of their knowledge that:
– the Group Financial Statements, which have been prepared
in accordance with international accounting standards in
conformity with the requirements of the Companies Act
2006 and the UK-adopted International Accounting
Standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Group;
– the Company Financial Statements, which have been
prepared in accordance with United Kingdom Accounting
Standards, comprising FRS 101, give a true and fair view of
the assets, liabilities, financial position and profit of the
Company; and
– the Strategic report and the Directors’ report include a fair
review of the development and performance of the
business and the position of the Group and Company,
together with a description of the principal risks and
uncertainties that it faces.
In the case of each Director in office at the date the Directors’
report is approved:
– so far as the Director is aware, there is no relevant audit
information of which the Group’s and Company’s auditors
are unaware; and
– they have taken all the steps that they ought to have taken
as a Director in order to make themselves aware of any
relevant audit information and to establish that the Group’s
and Company’s auditors are aware of that information.
On behalf of the Board of Directors
Jon Stanton
Chief Executive Officer
27 February 2025
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152
Strategic Report
Governance
Financial Statements
Additional Information
Financial Statements
Independent auditors’ report to the members of The Weir Group PLC
Report on the audit of the financial statements
Opinion
In our opinion:
– The Weir Group PLC’s group financial statements and company financial statements (the
“financial statements”) give a true and fair view of the state of the group’s and of the
company’s affairs as at 31 December 2024 and of the group’s profit and the group’s cash
flows for the year then ended;
– The group financial statements have been properly prepared in accordance with UK-
adopted international accounting standards as applied in accordance with the provisions of
the Companies Act 2006;
– The company financial statements have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards,
including FRS 101 “Reduced Disclosure Framework”, and applicable law); and
– The financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
We have audited the financial statements, included within the Annual Report and Financial
Statements 2024 (the “Annual Report”), which comprise: the Consolidated and Company
Balance Sheets as at 31 December 2024; the Consolidated Income Statement, the
Consolidated Statement of Comprehensive Income, the Consolidated Cash Flow Statement,
and the Consolidated and Company Statements of Changes in Equity for the year then
ended; and the notes to the financial statements, comprising material accounting policy
information and other explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs
(UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the
Auditors’ responsibilities for the audit of the financial statements section of our report. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical
Standard, as applicable to listed public interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the
FRC’s Ethical Standard were not provided.
Other than those disclosed in note 5 of Notes to the Group Financial Statements, we have
provided no non-audit services to the company or its controlled undertakings in the period
under audit.
Our audit approach
Context
The Group is organised into two continuing Divisions: Minerals and ESCO. On 1 February 2021,
the Group completed its disposal of the majority of the Oil & Gas Division, and the disposal of
the Group’s shareholding in the remaining joint venture in the Oil & Gas Division was
completed on 30 June 2021. The sale of the Oil & Gas Division has been disclosed as a
discontinued operation in the current and prior year. Each continuing division conducts its
business in a number of locations around the world. Many of the business locations (or
components) are of a similar size, so we scoped our audit to ensure we had appropriate
coverage of the Group. We included components that accounted for the largest share of the
Group’s results or where we considered there to be areas of significant risk.
Overview
Audit scope
– We conducted audit work on fourteen components in eight countries. We conducted full
scope audits on seven of these components, specified scope on three components and
specified procedures on the remaining four components.
– The 14 components where we performed audit work accounted for 70% of total Group
revenue and 63% of adjusted profit before tax from continuing operations.
Key audit matters
– Valuation of pension liabilities (group and parent)
– Accounting for asbestos related claims (group)
– Valuation of deferred tax assets (group)
Materiality
– Overall group materiality: £21,400,000 (2023: £20,300,000) based on 5% of profit before tax
and adjusting items from continuing operations.
– Overall company materiality: £17,956,000 (2023: £18,000,000) based on 1% of net assets.
– Performance materiality: £16,050,000 (2023: £15,251,000) (group) and £13,467,000 (2023:
£13,500,000) (company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements.
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153
Strategic Report
Governance
Financial Statements
Additional Information
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of
most significance in the audit of the financial statements of the current period and include
the most significant assessed risks of material misstatement (whether or not due to fraud)
identified by the auditors, including those which had the greatest effect on: the overall
audit strategy; the allocation of resources in the audit; and directing the efforts of the
engagement team.
These matters, and any comments we make on the results of our procedures thereon, were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
Valuation of deferred tax assets (group) is a new key audit matter this year. Otherwise, the key
audit matters below are consistent with last year.
Key audit matter
How our audit addressed the key audit matter
Valuation of pension liabilities (Group and parent)
Note 2 to the group financial statements - Accounting policies, Note 1 to the company
financial statements - Accounting policies, Note 24 to the group financial statements -
Pensions & other post-employment benefit plans, Note 8 to the company financial
statements - Retirement benefits, and Governance - Audit committee report.
The Group operates a number of defined benefit pension plans, giving rise to a defined
benefit obligation of £626.2m as at 31 December 2024 (2023: £712.9m). In respect of the
Company, there is a liability of £487.4m as at 31 December 2024 (2023: £563.4m).
These balances are significant in the context of the overall Balance Sheet of the Group and of
the Company. The valuation of pension liabilities requires judgement and technical expertise
in choosing appropriate assumptions such as discount rate, inflation and mortality.
Management engaged external actuarial experts to assist them in selecting appropriate
assumptions and to calculate the liabilities. Inappropriate selection of assumptions or
methodologies for calculating the pension liabilities could result in a material difference in the
value of the liabilities. The use of a regulated and qualified third party mitigates the risk to a
degree, however it remains a judgemental area with significant values involved.
We reviewed the independent actuary’s report on the assumptions and methodology used to
calculate the pension liabilities and compliance of management’s approach with the relevant
accounting standard IAS 19 ‘Employee Benefits’ (Revised).
We used our actuarial experts to assess whether the assumptions used in calculating the
pension liabilities are reasonable by:
– Assessing whether mortality assumptions are appropriate in line with the demographics of
each significant plan and, where applicable, with UK industry benchmarks;
– Verifying that the methodology of the discount and inflation rate assumptions is in line with
the accounting framework and the position of the assumptions are within our acceptable
ranges; and
– Performing independent testing of the roll-forward approach to calculate the liabilities for
the significant plans and compared against management’s actuary’s results.
Based on our procedures, we concluded management’s key assumptions individually and
collectively were acceptable.
We assessed the related disclosures included in the Group and Company financial statements
and consider them to be appropriate and in compliance with IAS 19.
The Weir Group PLC Annual Report and Financial Statements 2024
154
Independent auditors’ report to the members of The Weir Group PLC
continued
Strategic Report
Governance
Financial Statements
Additional Information
Key audit matter
How our audit addressed the key audit matter
Accounting for asbestos related claims (Group)
Note 2 to the group financial statements - Accounting policies, Note 22 to the group financial
statements - Provisions, and Governance - Audit Committee report.
Total asbestos related provisions as at 31 December 2024 amounted to £71.6m (2023:
£78.7m). This consists of a provision of £69.9m (2023: £76.2m) for the Group’s liabilities arising
from asbestos-related damages claims in the US and £1.7m (2023: £2.5m) in the UK.
Management estimates the US subsidiary's expected liability for US asbestos-related diseases
in conjunction with external advisers as part of a planned triennial actuarial review. The most
recent assessment was performed by external actuarial consultants in 2023. This review was
based on an industry standard epidemiological decay model, and the subsidiary's claims
settlement history. The provision in the financial statements is based on the mean actuarial
estimate, which is then adjusted each year to reflect expected settlements in the model,
discounting and restricting the timescale over which a liability can be reliably measured to
ten years plus cash flows over a further six years.
The valuation of the liability involves significant estimation. In arriving at the estimate of the
liability, management is required to make assumptions that include the number and value of
claims and the time period over which the liability can be reliably measured. As a result, there
is a high degree of uncertainty in this estimate and management uses an independent
actuary to assist with this assessment.
The Group has insurance cover in place to partially offset the US provision of £4.1m as at 31
December 2024 (2023: £14.9m) which is recognised within other receivables. After deduction
of the insurance asset there is a net provision for the estimated uninsured US liability of
£65.8m (2023: £61.3m).
We performed procedures on both the UK and US asbestos liabilities. The US provision is the
more significant and has a greater level of estimation uncertainty.
We involved our PwC actuarial experts to assess the 2023 valuation and the reasonableness of
the methodology used by the independent expert.
We evaluated management’s underlying assumptions used in its calculation which included
testing of:
– The mathematical accuracy of the underlying calculations in management’s model;
– The input data to management’s model, such as the average cost per claim and the
number of settled claims to source data, which we verified directly with the Group’s external
lawyers and to the independent actuarial assessment; and
– The reasonableness of forecast numbers and value of claims to be settled to the actuarial
assessment for the period of provision.
We considered the actual claims experience during 2024 and compared this to the actuarial
model to evaluate whether the 2023 model remained an appropriate basis. This included:
– Discussions with management, Weir’s General Counsel and Chief Risk Officer;
– Discussions with our internal actuarial experts to understand the latest developments in the
asbestos landscape; and
– An assessment of other factors that impacted the claims experience during 2024.
We evaluated the appropriateness of management’s assessment of the timescale over which
a liability can be reliably measured, which remains at 10 years plus cash flows for a further 6
years. We also examined the insurance cover held by the Group and recalculated the
expected date of insurance exhaustion to be in line with that disclosed by management. In
addition, we validated that the insurance cover remains active and currently continues to
settle claims as expected.
Based on our procedures, we concluded management’s key assumptions individually and
collectively were acceptable.
Finally, we tested the disclosures in the financial statements and checked for compliance with
IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and IAS 1 ‘Presentation of
Financial Statements’ and consider them to be appropriate.
The Weir Group PLC Annual Report and Financial Statements 2024
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continued
Strategic Report
Governance
Financial Statements
Additional Information
Key audit matter
How our audit addressed the key audit matter
Valuation of deferred tax assets (group)
Note 2 to the group financial statements - Accounting policies, Note 8 to the group financial
statements - Tax expense, Note 23 to the group financial statements - Deferred tax, and
Governance - Audit Committee report.
The disposal of the Oil & Gas Division has resulted in significant deferred tax assets due to
trading year losses and the impact of steps taken to prepare for the disposal. These are
available to the group to offset future US taxable income of the continuing operations. This
year, with the support of external tax management experts, the group has recognised an
additional £65.6m of deferred assets predominantly driven by the recognition of the
Seaboard worthless stock deduction.
At 31 December 2024, this resulted in the partial recognition of £125.6m (2023: £60m) of
deferred tax assets to the extent they are supported by management’s forecast of US taxable
profits.
We audited management’s forecasts which support the continued recognition of a portion of
the Group’s US deferred tax assets to confirm the quantum of deferred tax derecognised is
appropriate by:
– Verifying the inputs in management’s US taxable income forecasts are derived from the
Group’s five year strategic plan with forecasts for a further five years and appropriate risk
weightings applied;
– Assessing the assumptions made by management in determining the amount of deferred
tax which can be supported;
– Engaging a PwC US tax expert to review the conclusions reached by management in
relation to the Seaboard worthless stock deduction; and
– Performing sensitivity analysis on the assumptions used by management to confirm the
amount of deferred tax remaining on the balance sheet was within our calculated range of
possible outcomes.
Based on our procedures, we concluded the judgements taken by management and the key
assumptions used were acceptable.
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continued
Strategic Report
Governance
Financial Statements
Additional Information
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to
give an opinion on the financial statements as a whole, taking into account the structure of the
group and the company, the accounting processes and controls, and the industry in which
they operate.
The Group is organised into two continuing Divisions: Minerals and ESCO. On 1 February 2021,
the Group completed its disposal of the majority of the Oil & Gas Division, and the disposal of
the Group’s shareholding in the remaining joint venture in the Oil & Gas Division was
completed on 30 June 2021. The sale of the Oil & Gas Division has been disclosed as a
discontinued operation in the current and prior year. Each continuing division conducts its
business in a number of locations around the world. Many of the business locations (or
components) are of a similar size, so we scoped our audit to ensure we had appropriate
coverage of the Group. We included components that accounted for the largest share of the
Group’s results or where we considered there to be areas of significant risk.
The Group’s components vary significantly in size and we identified seven components that, in
our view, required an audit of their complete financial information due to their relative size or
risk characteristics. Of these full scope component audits, two were based in the UK and were
performed by members of the Group engagement team. These covered central functions and
Head Office managed balances, including the asbestos provision, treasury, uncertain tax
provisions, post-retirement benefits, goodwill, intangibles and the consolidation.
The remaining five full scope component audits were performed by other PwC network firms.
Other PwC network firms also performed specific scope audits over a further three
components, which covered all line items on the income statement and specified line items
on the balance sheet. Specified procedures audits were performed on the remaining four
components and this work was completed by a combination of the Group audit team and
other PwC network firms.
The scope of work at each component was determined by its contribution to the Group’s
overall financial performance or balance sheet and its risk profile. Where component audits
were performed by teams from other PwC network firms, members of the Group engagement
team were involved in their work throughout the audit. We maintained regular communication
and conducted formal planning, interim and year end video calls with all full and specified
scope component teams. The discussions during the audit also included divisional
management. Members of the group audit team visited three of our overseas locations during
the year.
The impact of climate risk on our audit
Our Group and component audits considered the impact of climate change. As part of our
audit, we made enquiries with management to understand the process adopted to assess the
extent of the potential impact of climate risk on the Group's financial statements and to
support the disclosures made in the Sustainability review in the Strategic report. We also read
the Group's governance process in response to climate risk and read additional reporting
made by the Group including its Carbon Disclosure Project ("CDP") public submission. Our
testing involved:
– Making enquiries with local and Group management and the Group sustainability team to
obtain their risk assessment and understand the governance processes in place to address
climate risk impacts;
– Reviewing the Group’s CDP submission made during 2024; and
– Obtaining an understanding of the carbon reduction commitments made by the Group and
the impact of these on the financial statements;
In 2023, the Group's scope 1, 2 and 3 emissions reduction targets were approved by the
Science Based Targets Initiative (SBTi). The targets include absolute reductions in scope 1 and
2 emissions of 30% and scope 3 emissions of 15% by 2030, versus a 2019 baseline.
Management does not consider the annual capital expenditure and operating costs required
to deliver the plan across the target period to be material to the financial plans of the Group.
Using our knowledge of the business, we focused our work on how the impact of climate
commitments made by the Group would impact the assumptions within the discounted cash
flows prepared by management that are used in the Group's goodwill and indefinite life asset
impairment tests. We also evaluated whether the impact of both physical and transitional risks
had been appropriately included in management's going concern and viability assessments.
We challenged the completeness of management's climate impact assessment by reading
the external reporting made by management, including the CDP submission in 2024, as well as
internal climate plans and board minutes. We also considered the completeness of the impact
on financial statement line items by comparing management’s assessment of the impact of
climate risk, including the potential impact on the underlying assumptions and estimates as
outlined in the basis of preparation in note 1 of the Notes to the Group Financial Statements.
Finally, we assessed the consistency of the information in the front half of the Annual Report
regarding Task Force on Climate-Related Financial Disclosures (TCFD) and the financial
statements.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain
quantitative thresholds for materiality. These, together with qualitative considerations, helped
us to determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statement line items and disclosures and in evaluating
the effect of misstatements, both individually and in aggregate on the financial statements as
a whole.
The Weir Group PLC Annual Report and Financial Statements 2024
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continued
Strategic Report
Governance
Financial Statements
Additional Information
Based on our professional judgement, we determined materiality for the financial statements
as a whole as follows:
Financial statements - Group
Financial statements - Company
Overall
materiality
£21,400,000 (2023: £20,300,000).
£17,956,000 (2023:
£18,000,000).
How we
determined it
5% of profit before tax and adjusting items
from continuing operations.
1% of net assets.
Rationale for
benchmark
applied
It is clear from the Annual Report that this
profit measure is used by shareholders in
evaluating the underlying business
performance. We applied a lower materiality
to the audit of exceptional items.
The nature of the Company’s
activities supports a net
asset basis for the
calculation of materiality.
For each component in the scope of our group audit, we allocated a materiality that is less
than our overall group materiality. The range of materiality allocated across components was
between £2,000,000 and £16,000,000. Certain components were audited to a local statutory
audit materiality that was also less than our overall group materiality.
We use performance materiality to reduce to an appropriately low level the probability that
the aggregate of uncorrected and undetected misstatements exceeds overall materiality.
Specifically, we use performance materiality in determining the scope of our audit and the
nature and extent of our testing of account balances, classes of transactions and disclosures,
for example in determining sample sizes. Our performance materiality was 75% (2023: 75%) of
overall materiality, amounting to £16,050,000 (2023: £15,251,000) for the group financial
statements and £13,467,000 (2023: £13,500,000) for the company financial statements.
In determining the performance materiality, we considered a number of factors - the history
of misstatements, risk assessment and aggregation risk and the effectiveness of controls -
and concluded that an amount at the upper end of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified
during our audit above £1,070,000 (group audit) (2023: £1,000,000) and £897,000 (company
audit) (2023: £900,000) as well as misstatements below those amounts that, in our view,
warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group's and the company’s ability to
continue to adopt the going concern basis of accounting included:
– Review and evaluation of management’s cash flow forecasts and the process by which they
were determined and approved, agreeing the forecasts with the latest Board approved
budgets and confirming the mathematical accuracy of underlying calculations;
– Assessment of management’s forecast assumptions for base case and severe but plausible
downside scenarios on the Group’s ability to continue as a going concern; and
– Consideration of the Group’s liquidity and availability of financing to support the going
concern basis of accounting.
Based on the work we have performed, we have not identified any material uncertainties
relating to events or conditions that, individually or collectively, may cast significant doubt on
the group's and the company’s ability to continue as a going concern for a period of at least
twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going
concern basis of accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a
guarantee as to the group's and the company's ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance
Code, we have nothing material to add or draw attention to in relation to the directors’
statement in the financial statements about whether the directors considered it appropriate to
adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are
described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the
financial statements and our auditors’ report thereon. The directors are responsible for the
other information. Our opinion on the financial statements does not cover the other
information and, accordingly, we do not express an audit opinion or, except to the extent
otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit, or otherwise appears to
be materially misstated. If we identify an apparent material inconsistency or material
misstatement, we are required to perform procedures to conclude whether there is a material
misstatement of the financial statements or a material misstatement of the other information.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report based
on these responsibilities.
With respect to the Strategic report and Directors' report, we also considered whether the
disclosures required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us
also to report certain opinions and matters as described below.
The Weir Group PLC Annual Report and Financial Statements 2024
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continued
Strategic Report
Governance
Financial Statements
Additional Information
Strategic report and Directors’ report
In our opinion, based on the work undertaken in the course of the audit, the information given
in the Strategic report and Directors' report for the year ended 31 December 2024 is consistent
with the financial statements and has been prepared in accordance with applicable legal
requirements.
In light of the knowledge and understanding of the group and company and their
environment obtained in the course of the audit, we did not identify any material
misstatements in the Strategic report and Directors' report.
Directors’ Remuneration
In our opinion, the part of the Directors' remuneration report to be audited has been properly
prepared in accordance with the Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern,
longer-term viability and that part of the corporate governance statement relating to the
company’s compliance with the provisions of the UK Corporate Governance Code specified
for our review. Our additional responsibilities with respect to the corporate governance
statement as other information are described in the Reporting on other information section of
this report.
Based on the work undertaken as part of our audit, we have concluded that each of the
following elements of the corporate governance statement is materially consistent with the
financial statements and our knowledge obtained during the audit, and we have nothing
material to add or draw attention to in relation to:
– The directors’ confirmation that they have carried out a robust assessment of the emerging
and principal risks;
– The disclosures in the Annual Report that describe those principal risks, what procedures are
in place to identify emerging risks and an explanation of how these are being managed or
mitigated;
– The directors’ statement in the financial statements about whether they considered it
appropriate to adopt the going concern basis of accounting in preparing them, and their
identification of any material uncertainties to the group’s and company’s ability to continue
to do so over a period of at least twelve months from the date of approval of the financial
statements;
– The directors’ explanation as to their assessment of the group's and company’s prospects,
the period this assessment covers and why the period is appropriate; and
– The directors’ statement as to whether they have a reasonable expectation that the
company will be able to continue in operation and meet its liabilities as they fall due over
the period of its assessment, including any related disclosures drawing attention to any
necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the group and
company was substantially less in scope than an audit and only consisted of making inquiries
and considering the directors’ process supporting their statement; checking that the
statement is in alignment with the relevant provisions of the UK Corporate Governance Code;
and considering whether the statement is consistent with the financial statements and our
knowledge and understanding of the group and company and their environment obtained in
the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each
of the following elements of the corporate governance statement is materially consistent with
the financial statements and our knowledge obtained during the audit:
– The directors’ statement that they consider the Annual Report, taken as a whole, is fair,
balanced and understandable, and provides the information necessary for the members to
assess the group’s and company's position, performance, business model and strategy;
– The section of the Annual Report that describes the review of effectiveness of risk
management and internal control systems; and
– The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’
statement relating to the company’s compliance with the Code does not properly disclose a
departure from a relevant provision of the Code specified under the Listing Rules for review by
the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the Directors for the financial statements
As explained more fully in the Statement of directors’ responsibilities, the directors are
responsible for the preparation of the financial statements in accordance with the applicable
framework and for being satisfied that they give a true and fair view. The directors are also
responsible for such internal control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are responsible for assessing the group’s
and the company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or the company or to cease operations, or have
no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are
The Weir Group PLC Annual Report and Financial Statements 2024
159
Independent auditors’ report to the members of The Weir Group PLC
continued
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
Strategic Report
Governance
Financial Statements
Additional Information
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We
design procedures in line with our responsibilities, outlined above, to detect material
misstatements in respect of irregularities, including fraud. The extent to which our procedures
are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the group and industry, we identified that the principal risks of
non-compliance with laws and regulations related to the Listing Rules, the Companies Act
2006 and UK and overseas tax legislation, and we considered the extent to which non-
compliance might have a material effect on the financial statements. We evaluated
management’s incentives and opportunities for fraudulent manipulation of the financial
statements (including the risk of override of controls), and determined that the principal risks
were related to posting manual journal entries to manipulate financial performance and
management bias through judgements and assumptions in significant accounting estimates.
The group engagement team shared this risk assessment with the component auditors so
that they could include appropriate audit procedures in response to such risks in their work.
Audit procedures performed by the group engagement team and/or component auditors
included:
– Discussions with management, internal audit and Group General Counsel, including
consideration of known or suspected instances of non compliance with laws and regulations
and fraud or matters reported on the Group’s Ethics Hotline;
– Evaluation of management’s controls designed to prevent and detect irregularities;
– Review of Board Minutes;
– Challenging assumptions and judgements made by management in its significant
accounting estimates, in particular in relation to the classification of costs as exceptional;
and
– Identifying and testing journal entries, in particular any journal entries posted by unexpected
users and unusual account combinations.
There are inherent limitations in the audit procedures described above. We are less likely to
become aware of instances of non-compliance with laws and regulations that are not closely
related to events and transactions reflected in the financial statements. Also, the risk of not
detecting a material misstatement due to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and
balances, possibly using data auditing techniques. However, it typically involves selecting a
limited number of items for testing, rather than testing complete populations. We will often
seek to target particular items for testing based on their size or risk characteristics. In other
cases, we will use audit sampling to enable us to draw a conclusion about the population from
which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located
on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of
our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s
members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and
for no other purpose. We do not, in giving these opinions, accept or assume responsibility for
any other purpose or to any other person to whom this report is shown or into whose hands it
may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
– We have not obtained all the information and explanations we require for our audit; or
– Adequate accounting records have not been kept by the Company, or returns adequate for
our audit have not been received from branches not visited by us; or
– Certain disclosures of directors’ remuneration specified by law are not made; or
– The Company financial statements and the part of the Directors' remuneration report to be
audited are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the members
on 28 April 2016 to audit the financial statements for the year ended 31 December 2016 and
subsequent financial periods. The period of total uninterrupted engagement is nine years,
covering the years ended 31 December 2016 to 31 December 2024.
Other matter
The company is required by the Financial Conduct Authority Disclosure Guidance and
Transparency Rules to include these financial statements in an annual financial report
prepared under the structured digital format required by DTR 4.1.15R - 4.1.18R and filed on the
National Storage Mechanism of the Financial Conduct Authority. This auditors’ report provides
no assurance over whether the structured digital format annual financial report has been
prepared in accordance with those requirements.
Kenneth Wilson (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants & Statutory Auditors
Glasgow
27 February 2025
The Weir Group PLC Annual Report and Financial Statements 2024
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Independent auditors’ report to the members of The Weir Group PLC
continued
Strategic Report
Governance
Financial Statements
Additional Information
Consolidated Income Statement
for the year ended 31 December 2024
Year ended 31 December 2024
Year ended 31 December 2023
Note
Adjusted
results
£m
Adjusting
items
(note 6)
£m
Statutory
results
£m
Adjusted
results
£m
Adjusting
items
(note 6)
£m
Statutory
results
£m
Continuing operations
Revenue
4
2,505.6
–
2,505.6
2,636.0
–
2,636.0
Continuing operations
Operating profit before share of results of joint ventures
470.2
(81.1)
389.1
456.3
(90.4)
365.9
Share of results of joint ventures
16
1.9
–
1.9
2.5
–
2.5
Operating profit
472.1
(81.1)
391.0
458.8
(90.4)
368.4
Finance costs
7
(65.9)
–
(65.9)
(66.4)
–
(66.4)
Finance income
7
22.0
–
22.0
18.7
–
18.7
Profit before tax from continuing operations
428.2
(81.1)
347.1
411.1
(90.4)
320.7
Tax (expense) credit
8
(118.6)
86.9
(31.7)
(110.9)
20.1
(90.8)
Profit for the year from continuing operations
309.6
5.8
315.4
300.2
(70.3)
229.9
Loss for the year from discontinued operations
9
–
(2.9)
(2.9)
–
(1.3)
(1.3)
Profit (loss) for the year
309.6
2.9
312.5
300.2
(71.6)
228.6
Attributable to:
Equity holders of the Company
309.3
2.9
312.2
299.5
(71.6)
227.9
Non-controlling interests
0.3
–
0.3
0.7
–
0.7
309.6
2.9
312.5
300.2
(71.6)
228.6
Earnings per share
10
Basic – total operations
121.1p
88.2p
Basic – continuing operations
120.0p
122.2p
115.9p
88.7p
Diluted – total operations
120.3p
87.7p
Diluted – continuing operations
119.2p
121.4p
115.3p
88.2p
The Weir Group PLC Annual Report and Financial Statements 2024
161
Strategic Report
Governance
Financial Statements
Additional Information
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024
Note
Year ended
31 December
2024
£m
Year ended
31 December
2023
£m
Profit for the year
312.5
228.6
Other comprehensive income (expense)
Gains (losses) taken to equity on cash flow hedges
0.8
(0.4)
Gain (cost) of hedging taken to equity on fair value hedges
0.5
(0.8)
Exchange losses on translation of foreign operations
(48.7)
(159.1)
Exchange (losses) gains on net investment hedges
(12.2)
27.6
Reclassification adjustments on cash flow hedges
(0.1)
0.5
Reclassification adjustments on fair value hedges
0.3
0.1
Tax (charge) credit relating to above items
8
(0.4)
0.1
Items that are or may be reclassified to profit or loss in subsequent periods
(59.8)
(132.0)
Other comprehensive income (expense) not to be reclassified to profit or loss in subsequent periods
Remeasurements on defined benefit plans
24
4.9
(28.2)
Tax (charge) credit relating to above item
8
(1.1)
7.1
Items that will not be reclassified to profit or loss in subsequent periods
3.8
(21.1)
Net other comprehensive expense
(56.0)
(153.1)
Total net comprehensive income for the year
256.5
75.5
Attributable to:
Equity holders of the Company
256.4
76.1
Non-controlling interests
0.1
(0.6)
256.5
75.5
Total net comprehensive income (expense) for the year attributable to equity holders of the Company
Continuing operations
259.3
77.4
Discontinued operations
9
(2.9)
(1.3)
256.4
76.1
The Weir Group PLC Annual Report and Financial Statements 2024
162
Strategic Report
Governance
Financial Statements
Additional Information
Consolidated Balance Sheet
at 31 December 2024
Note
31 December
2024
£m
31 December
2023
£m
ASSETS
Non-current assets
Property, plant & equipment
12
498.5
490.5
Intangible assets
13
1,270.3
1,316.0
Investments in joint ventures
16
12.8
12.2
Deferred tax assets
23
192.7
111.3
Other receivables
18
44.3
53.8
Retirement benefit plan assets
24
32.6
30.1
Total non-current assets
2,051.2
2,013.9
Current assets
Inventories
17
580.1
608.1
Trade & other receivables
18
546.7
526.2
Derivative financial instruments
30
10.7
7.9
Income tax receivable
39.9
29.4
Cash & short-term deposits
19
556.4
707.2
Total current assets
1,733.8
1,878.8
Total assets
3,785.0
3,892.7
LIABILITIES
Current liabilities
Interest-bearing loans & borrowings
20
55.2
286.2
Trade & other payables
21
618.7
581.3
Derivative financial instruments
30
10.1
6.4
Income tax payable
14.5
1.9
Provisions
22
48.3
47.6
Total current liabilities
746.8
923.4
Non-current liabilities
Interest-bearing loans & borrowings
20
1,035.8
1,111.1
Other payables
21
–
0.6
Derivative financial instruments
30
–
2.3
Provisions
22
77.7
80.7
Deferred tax liabilities
23
47.8
46.9
Retirement benefit plan deficits
24
23.3
28.0
Total non-current liabilities
1,184.6
1,269.6
Total liabilities
1,931.4
2,193.0
NET ASSETS
1,853.6
1,699.7
Note
£m
£m
CAPITAL & RESERVES
Share capital
25
32.5
32.5
Share premium
582.3
582.3
Merger reserve
332.6
332.6
Treasury shares
(37.3)
(29.0)
Capital redemption reserve
0.5
0.5
Foreign currency translation reserve
(299.4)
(238.7)
Hedge accounting reserve
2.5
1.4
Retained earnings
1,230.7
1,008.2
Equity attributable to owners of the Company
1,844.4
1,689.8
Non-controlling interests
9.2
9.9
TOTAL EQUITY
1,853.6
1,699.7
31 December
2024
31 December
2023
The financial statements were approved by the Board of Directors and authorised for issue on
27 February 2025. The financial statements also comprise the notes on pages 167 to 226.
Jon Stanton
Director
Brian Puffer
Director
The Weir Group PLC Annual Report and Financial Statements 2024
163
Strategic Report
Governance
Financial Statements
Additional Information
Consolidated Cash Flow Statement
for the year ended 31 December 2024
Note
Year ended
31 December
2024
£m
Year ended
31 December
2023
£m
Total operations
Cash flows from operating activities
26
Adjusted operating cash flow
591.1
525.5
Additional pension contributions paid
–
(9.3)
Exceptional and other adjusting cash items
(30.7)
(18.0)
Income tax paid
(110.5)
(103.9)
Net cash generated from operating activities
449.9
394.3
Cash flows from investing activities
Acquisitions of subsidiaries, net of cash acquired
26
(1.0)
(6.9)
Purchases of property, plant & equipment
(67.4)
(79.1)
Purchases of intangible assets
(5.1)
(7.6)
Other proceeds from sale of property, plant &
equipment and intangible assets
3.2
4.2
Disposals of discontinued operations, net of cash
disposed and disposal costs
9,26
(1.8)
(0.4)
Interest received
19.3
15.1
Dividends received from joint ventures
16
–
4.1
Net cash used in investing activities
(52.8)
(70.6)
Year ended
31 December
2024
Year ended
31 December
2023
Note
£m
£m
Cash flows from financing activities
Proceeds from borrowings
55.6
512.6
Repayments of borrowings
(155.3)
(627.6)
Lease payments
(24.8)
(31.0)
Settlement of external debt of subsidiary on acquisition
–
(0.2)
Settlement of derivative financial instruments
(1.7)
(0.5)
Interest paid
(61.9)
(55.0)
Dividends paid to equity holders of the Company
11
(99.8)
(95.9)
Dividends paid to non-controlling interests
(0.8)
(0.9)
Purchase of shares for employee share plans
(13.2)
(24.0)
Net cash used in financing activities
(301.9)
(322.5)
Net increase in cash & cash equivalents
95.2
1.2
Cash & cash equivalents at the beginning of the year
447.4
477.5
Foreign currency translation differences
(15.7)
(31.3)
Cash & cash equivalents at the end of the year
19
526.9
447.4
The cash flows from discontinued operations included above are disclosed separately in
note 9.
The Weir Group PLC Annual Report and Financial Statements 2024
164
Strategic Report
Governance
Financial Statements
Additional Information
Consolidated Statement of Changes in Equity
for the year ended 31 December 2024
Share
capital
£m
Share
premium
£m
Merger
reserve
£m
Treasury
shares
£m
Capital
redemption
reserve
£m
Foreign
currency
translation
reserve
£m
Hedge
accounting
reserve
£m
Retained
earnings
£m
Attributable
to equity
holders of
the
Company
£m
Non-
controlling
interests
£m
Total equity
£m
At 1 January 2023
32.5
582.3
332.6
(14.3)
0.5
(108.5)
1.9
899.5
1,726.5
11.4
1,737.9
Profit for the year
–
–
–
–
–
–
–
227.9
227.9
0.7
228.6
Losses taken to equity on cash flow hedges
–
–
–
–
–
–
(0.4)
–
(0.4)
–
(0.4)
Cost of hedging taken to equity on fair value
hedges
–
–
–
–
–
–
(0.8)
–
(0.8)
–
(0.8)
Exchange losses on translation of foreign operations
–
–
–
–
–
(157.8)
–
–
(157.8)
(1.3)
(159.1)
Exchange gains on net investment hedges
–
–
–
–
–
27.6
–
–
27.6
–
27.6
Reclassification adjustments on cash flow hedges
–
–
–
–
–
–
0.5
–
0.5
–
0.5
Reclassification adjustments on fair value hedges
–
–
–
–
–
–
0.1
–
0.1
–
0.1
Remeasurements on defined benefit plans
–
–
–
–
–
–
–
(28.2)
(28.2)
–
(28.2)
Tax credit relating to above items
–
–
–
–
–
–
0.1
7.1
7.2
–
7.2
Total net comprehensive (expense) income for the
year
–
–
–
–
–
(130.2)
(0.5)
206.8
76.1
(0.6)
75.5
Cost of share-based payments inclusive of tax
credit
–
–
–
–
–
–
–
7.1
7.1
–
7.1
Dividends
–
–
–
–
–
–
–
(95.9)
(95.9)
–
(95.9)
Purchase of shares for employee share plans
–
–
–
(24.0)
–
–
–
–
(24.0)
–
(24.0)
Dividends paid to non-controlling interests
–
–
–
–
–
–
–
–
–
(0.9)
(0.9)
Exercise of share-based payments
–
–
–
9.3
–
–
–
(9.3)
–
–
–
At 31 December 2023
32.5
582.3
332.6
(29.0)
0.5
(238.7)
1.4
1,008.2
1,689.8
9.9
1,699.7
The Weir Group PLC Annual Report and Financial Statements 2024
165
Strategic Report
Governance
Financial Statements
Additional Information
Share
capital
£m
Share
premium
£m
Merger
reserve
£m
Treasury
shares
£m
Capital
redemption
reserve
£m
Foreign
currency
translation
reserve
£m
Hedge
accounting
reserve
£m
Retained
earnings
£m
Attributable
to equity
holders of
the
Company
£m
Non-
controlling
interests
£m
Total equity
£m
At 1 January 2024
32.5
582.3
332.6
(29.0)
0.5
(238.7)
1.4
1,008.2
1,689.8
9.9
1,699.7
Profit for the year
–
–
–
–
–
–
–
312.2
312.2
0.3
312.5
Gains taken to equity on cash flow hedges
–
–
–
–
–
–
0.8
–
0.8
–
0.8
Gain of hedging taken to equity on fair value
hedges
–
–
–
–
–
–
0.5
–
0.5
–
0.5
Exchange losses on translation of foreign operations
–
–
–
–
–
(48.5)
–
–
(48.5)
(0.2)
(48.7)
Exchange losses on net investment hedges
–
–
–
–
–
(12.2)
–
–
(12.2)
–
(12.2)
Reclassification adjustments on cash flow hedges
–
–
–
–
–
–
(0.1)
–
(0.1)
–
(0.1)
Reclassification adjustments on fair value hedges
–
–
–
–
–
–
0.3
–
0.3
–
0.3
Remeasurements on defined benefit plans
–
–
–
–
–
–
–
4.9
4.9
–
4.9
Tax charge relating to above items
–
–
–
–
–
–
(0.4)
(1.1)
(1.5)
–
(1.5)
Total net comprehensive (expense) income for the
year
–
–
–
–
–
(60.7)
1.1
316.0
256.4
0.1
256.5
Cost of share-based payments inclusive of tax
credit
–
–
–
–
–
–
–
11.2
11.2
–
11.2
Dividends
–
–
–
–
–
–
–
(99.8)
(99.8)
–
(99.8)
Purchase of shares for employee share plans
–
–
–
(13.2)
–
–
–
–
(13.2)
–
(13.2)
Dividends paid to non-controlling interests
–
–
–
–
–
–
–
–
–
(0.8)
(0.8)
Exercise of share-based payments
–
–
–
4.9
–
–
–
(4.9)
–
–
–
At 31 December 2024
32.5
582.3
332.6
(37.3)
0.5
(299.4)
2.5
1,230.7
1,844.4
9.2
1,853.6
The Weir Group PLC Annual Report and Financial Statements 2024
166
Consolidated Statement of Changes in Equity
for the year ended 31 December 2024 continued
Strategic Report
Governance
Financial Statements
Additional Information
Notes to the Group Financial Statements
1. Authorisation of financial statements and statement of compliance
The Consolidated Financial Statements of The Weir Group PLC (the ‘Company’) and its
subsidiaries (together, the ‘Group’) for the year ended 31 December 2024 (‘2024’) were
approved and authorised for issue in accordance with a resolution of the Directors on
27 February 2025. The comparative information is presented for the year ended 31 December
2023 (‘2023’).
The Consolidated Financial Statements of The Weir Group PLC have been prepared in
accordance with UK-adopted International Accounting Standards and with the requirements
of the Companies Act 2006 as applicable to those companies reporting under those
standards.
The Weir Group PLC is a public limited company, limited by shares, incorporated in Scotland,
United Kingdom and is listed on the London Stock Exchange. The principal activities of the
Group are described in note 4.
2. Accounting policies
Material accounting policies
The Group’s material accounting policies are set out on pages 169 to 176. These accounting
policies have been applied consistently to all periods presented in these Consolidated
Financial Statements.
Basis of preparation
These financial statements are presented in Sterling. All values are rounded to the nearest 0.1
million pounds (£m) except where otherwise indicated.
The financial statements are also prepared on a historic cost basis except where measured at
fair value as outlined in the accounting policies.
Going concern
The Directors have a reasonable expectation that the Group has adequate resources to
continue to operate for a period of at least 12 months from the date of approval of the
financial statements. For this reason, they continue to adopt the going concern basis of
preparing the financial statements. In forming this view the Directors have reviewed the
Group's budget and sensitivity analysis as discussed further in the Directors' report on pages
148 to 151.
Basis of consolidation
The Consolidated Financial Statements include the results, cash flows and assets and liabilities
of The Weir Group PLC and its subsidiaries, and the Group’s share of results of its joint venture.
For consolidation purposes, subsidiaries and joint ventures prepare financial information for
the same reporting period as the Company using consistent accounting policies.
A subsidiary is an entity controlled, either directly or indirectly, by the Company, where control
is achieved when the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the
investee. The results of a subsidiary acquired during the period are included in the Group’s
results from the effective date on which control is transferred to the Group. The results of a
subsidiary sold during the period are included in the Group’s results up to the effective date
on which control is transferred out of the Group. All intra-group transactions, balances, income
and expenses are eliminated on consolidation.
Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries
that are not held by the Group and are presented within equity in the Consolidated Balance
Sheet, separately from the equity attributable to owners of the Company.
A full list of the Company’s related undertakings can be found on pages 239 to 245.
New accounting standards, amendments and interpretations
The accounting policies that follow are consistent with those of the previous period, with the
exception of the following standards, amendments and interpretations which are effective for
the year ended 31 December 2024:
– Classification of Liabilities as Current or Non-current liabilities with covenants - Amendments
to IAS 1;
– Lease Liability in Sale and Leaseback - Amendments to IFRS 16; and
– Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7.
The amendments listed above are not considered to have a material impact on the
Consolidated Financial Statements of the Group.
The following new accounting standards and interpretations have been published but are not
mandatory for 31 December 2024:
– IFRS18 Presentation and disclosure in the financial statements;
– Amendments to IAS 21 - Lack of exchangeability; and
– Amendments to IFRS 9 and IFRS 7 - Amendments to the classification and measurement of
financial instruments.
These amendments have not been early adopted by the Group. The impact assessment is
ongoing, however it is expected that IFRS 18 will have a significant impact on the presentation
of the financial statements. The new accounting standard does not impact the recognition
and measurement of the financial statements, however, it will significantly alter the income
statement and related disclosures. The Group is currently considering the requirements of the
new standard and the implications for the financial statements. The initial view is that the
following areas may be impacted.
– The line items presented in the income statement may change as a result of revised
aggregation and disaggregation of information. This will also impact the disclosures in
related notes.
– The presentation of the income statement, including the allocation of results from our joint
venture.
The Weir Group PLC Annual Report and Financial Statements 2024
167
– There will also be significant new disclosures for Management Performance Measures (MPM)
and a breakdown of the nature of expenses for line items presented in the income
statement. This disclosure will be dependent on the method of disclosure in the income
statement.
– For the first annual period of application of IFRS 18 a reconciliation will be provided between
the amounts previously presented under IAS 1 and the revised presentation under IFRS 18.
– Goodwill will be disaggregated from intangible assets on the face of the Balance Sheet.
From initial review, the amendments to IAS 21, IFRS 9 and IFRS 7 are not expected to have a
material impact on the Group in the current or future reporting periods.
Strategic Report
Governance
Financial Statements
Additional Information
Climate change
Climate change is considered to be a key element of our overall sustainability strategy. As well
as considering the impact of climate change across our business model, the Directors have
considered the impact on the financial statements in accordance with the Task Force on
Climate-related Financial Disclosures (TCFD) recommendations. Climate change is not
considered to have a material impact on the financial reporting judgements and estimates
arising from our considerations. Overall, sustainability is recognised in the market as a growth
driver for Weir and a key part of our investment case. This is consistent with our assessment
that climate change is not expected to have a detrimental impact on the viability of the Group
in the medium-term. Specifically we note the following:
– The impact of climate change has been included in the modelling to assess the viability and
going concern status of the Group, both in terms of the preparation of our Strategic Plan,
which underpins our viability statement modelling, and the modelling of our severe, but
plausible downside scenarios;
– Our assessment of the carrying value of goodwill and intangible assets included
consideration of scenario analysis of potential climate change on our end-markets and this
did not introduce a set of circumstances that were considered could reasonably lead to an
impairment;
– The impact on the carrying value and useful lives of tangible assets has been considered
and while we continue to invest in projects to reduce our carbon impact, the impact is not
considered to be material on our existing asset base;
– In May 2021, the Group successfully completed the issuance of five-year US$800m
Sustainability-Linked Notes. The cost of meeting our linked targets in 2024 has been
considered within the above modelling and the impact is not material; and
– In June 2023, the Group successfully completed the issuance of five-year £300m
Sustainability-Linked Notes. The cost of meeting our linked targets in 2026 has been
considered within the above modelling and the impact is not material.
Further detail on our science-based targets and performance against them is included in the
Emissions Strategy in the Strategic report.
Prior year restatement
Following the acquisition of Sentiantechnologies AB (SentianAI) during the year ended 31
December 2023, the Group has completed the review of the opening balance sheet position
acquired. As part of this process, the Group has identified that a £0.1m reduction is required to
purchased software within intangible assets on the opening balance sheet which was
reported in the 2023 Annual Report with a corresponding increase of £0.1m to goodwill.
In the 'Investments in joint ventures' note 16 in the 2023 Annual Report, tables were presented
that disclosed the Group's share of its joint venture's revenue, results and balance sheet. The
presentation of these tables has changed so that the total value of the joint venture's revenue,
results and balance sheet are disclosed.
Use of estimates and judgements
The Group’s material accounting policy information is set out below. The preparation of the
Consolidated Financial Statements, in conformity with IFRS, requires management to make
judgements that affect the application of accounting policies and estimates that impact the
reported amounts of assets, liabilities, income and expense.
Management bases these judgements on a combination of past experience, professional
expert advice and other evidence that is relevant to each individual circumstance. Actual
results may differ from these judgements and the resulting estimates, which are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised in the year in which the
estimate is revised.
Areas requiring significant judgement in the current year and on a recurring basis are
presented to the Audit Committee, as summarised on pages 106 to 112.
Critical judgements and estimates
The areas where management considers critical judgements and estimates to be required,
which are areas more likely to be materially adjusted within the next 12 months due to
inherent uncertainty regarding estimates and assumptions, are those in respect of the
following:
Retirement benefits (estimate)
The assumptions underlying the valuation of retirement benefit assets and liabilities include
discount rates, inflation rates and mortality assumptions, which are based on actuarial advice.
Changes in these assumptions could have a material impact on the measurement of the
Group’s retirement benefit obligations. Sensitivities to changes in key assumptions are
provided in note 24.
Provisions (judgement/estimate)
Management judgement is used to determine when a provision is recognised, taking into
account the commercial drivers that gave rise to it, the Group’s previous experience of similar
obligations and the progress of any associated legal proceedings. The calculation of
provisions typically involves management estimates of associated cash flows and discount
rates. The key provision, which currently requires a greater degree of management judgement
The Weir Group PLC Annual Report and Financial Statements 2024
168
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
and estimate is the US asbestos provision and associated insurance asset, details of which are
included in note 22.
Deferred taxation (judgement/estimate)
The level of current and deferred tax recognised in the financial statements is dependent on
subjective judgements as to the interpretation of complex international tax regulations and, in
some cases, the outcome of decisions by tax authorities in various jurisdictions around the
world, together with the ability of the Group to utilise tax attributes within the time limits
imposed by the relevant tax legislation. The value of the recognised US deferred tax asset in
relation to US tax attributes is based on expected future US taxable profits with reference to the
Group's ten-year forecast period and assumptions over the intended use of these tax
attributes during this period. The application of this model and its underlying assumptions
may result in future changes to the deferred tax asset recognised. Please refer to note 23 for
further detail.
Other estimates
Taxation (estimate)
The Group faces a variety of tax risks, which result from operating in a complex global
environment, including the ongoing reform of both international and domestic tax rules in
some of the Group’s larger markets and the challenge to fulfil ongoing tax compliance filing
and transfer pricing obligations given the scale and diversity of the Group’s global operations.
The Group makes provision for open tax issues where it is probable that an exposure will arise
including, in a number of jurisdictions transfer pricing positions which are by nature complex
and can take a number of years to resolve. In all cases, provisions are based on management’s
interpretation of tax law in each country, as supported where appropriate by discussion and
analysis undertaken by the Group’s external advisers, and reflect the single best estimate of
the likely outcome or the expected value for each liability. Provisions for uncertain tax positions
are included in current tax liabilities and total £5.1m at 31 December 2024 (2023: £5.4m).
The Group believes it has made adequate provision for such matters, although it is possible
that amounts ultimately paid will be different from the amounts provided, but not materially
within the next 12 months.
Accounting policies
Adjusting items
In order to provide the users of the Consolidated Financial Statements with a more relevant
presentation of the Group’s performance, statutory results for each year have been analysed
between:
– adjusted results; and
– the effect of adjusting items.
The principal adjusting items are summarised below. These specific items are presented on
the face of the Consolidated Income Statement, along with the related adjusting items'
taxation, to provide greater clarity and a better understanding of the impact of these items on
the Group’s financial performance. In doing so, it also facilitates greater comparison of the
Group’s underlying results with prior years and assessment of trends in financial performance.
This split is consistent with how business performance is measured internally. Adjusted results
and adjusting items are discussed in more detail in note 3.
Intangibles amortisation
Intangibles amortisation is expensed in line with the other intangible assets policy, with
separate disclosure provided to allow visibility of the impact of intangible assets recognised
via acquisition, which primarily relate to items that would not normally be capitalised unless
identified as part of an acquisition opening balance sheet. The ongoing costs associated with
these assets are expensed.
Exceptional items
Exceptional items are items of income and expense which, because of the nature, size and/or
infrequency of the events giving rise to them, merit separate presentation. Exceptional items
may include, but are not restricted to: profits or losses arising on disposal or closure of
businesses; the cost of significant business restructuring; significant impairments of intangible
or tangible assets; adjustments to the fair value of acquisition-related items such as
contingent consideration and inventory; and acquisitions and other items deemed exceptional
due to their significance, size or nature.
Other adjusting items
Other adjusting items are those that do not relate to the Group’s current ongoing trading and,
due to their nature, are treated as adjusting items. For example, these may include, but are not
restricted to, movements in the provision for asbestos-related claims or the associated
insurance assets, which relate to the Flow Control Division that was sold in 2019, but the
provision remains with the Group and is in run-off, or past service costs related to pension
liabilities.
Further analysis of the items included in the column ‘Adjusting items’ in the Consolidated
Income Statement is provided in notes 5 and 6 to the financial statements.
The Weir Group PLC Annual Report and Financial Statements 2024
169
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Discontinued operations
In compliance with IFRS 5 ‘Non-current assets held for sale and discontinued operations’,
when it is known that a significant component of the Group will be held for sale or disposed
of the results are disclosed within one line in the Consolidated Income Statement, with the
comparative periods also restated. In the Consolidated Balance Sheet, the assets and
liabilities of the component, in the current period only, are reported as current assets/liabilities
held for sale.
As a discontinued operation, the component is measured at the lower of its carrying amount
and fair value less costs to sell. At the time of disposal, the foreign currency translation reserve
will be recycled to the Consolidated Income Statement and included in the gain or loss
on disposal.
Business combinations
The Group applies the acquisition method in accounting for business combinations. The
consideration transferred by the Group to obtain control of a subsidiary is the sum of the fair
values of assets transferred, liabilities incurred and the equity interests issued by the Group,
which includes the fair value of any asset or liability arising from a contingent consideration
arrangement. Any goodwill arising from the business combination is accounted for in line
with the goodwill policy below.
Acquisition costs are expensed as incurred.
On the acquisition of a business, management assesses: (i) the Purchase Price Allocation (PPA)
in order to attribute fair values to separately identifiable intangible assets providing they meet
the recognition criteria; and (ii) the fair values of other assets and liabilities. The fair values of
these intangible assets are dependent on estimates of attributable future revenues, margins
and cash flows, as well as appropriate discount rates. In addition, the allocation of useful lives
to acquired intangible assets requires the application of judgement based on available
information and management expectations at the time of recognition. The valuation of other
tangible assets and liabilities involves aligning accounting policies with those of the Group,
reflecting appropriate external market valuations for property, plant and equipment, assessing
recoverability of receivables and inventory, and exposures to unrecorded liabilities.
Joint venture
The Group has a long-term contractual arrangement with another party, which represents a
joint venture. The Group’s interests in the results and assets and liabilities of its joint venture
are accounted for using the equity method.
This investment is carried in the Consolidated Balance Sheet at cost plus post-acquisition
changes in the Group’s share of net assets less any impairment in value. The Consolidated
Income Statement reflects the share of results of operations of the investment after tax. Where
there has been a change recognised directly in the investee’s equity, the Group recognises its
share of any changes and discloses this when applicable in the Consolidated Statement of
Comprehensive Income.
Any goodwill arising on the acquisition of a joint venture, representing the excess of the cost of
the investment over the Group’s share of the net fair value of the joint venture’s identifiable
assets, liabilities and contingent liabilities, is included in the carrying amount of the joint
venture and is not amortised. To the extent that the net fair value of the joint venture’s
identifiable assets, liabilities and contingent liabilities is greater than the cost of the investment,
a gain is recognised and added to the Group’s share of the joint venture’s profit or loss in the
year in which the investment is acquired.
Foreign currency translation
The financial statements for each of the Group’s subsidiaries and joint ventures are prepared
using their functional currency. The functional currency is the currency of the primary
economic environment in which an entity operates.
At the entity level, transactions denominated in foreign currencies are translated into the
entity’s functional currency at the exchange rate ruling on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the
exchange rate ruling on the balance sheet date. Currency translation differences are
recognised in the Consolidated Income Statement except when hedge accounting is applied
and for differences on monetary assets and liabilities that form part of the Group’s net
investment in a foreign operation. These are recognised in other comprehensive income until
the disposal of the net investment, at which time they are recognised in profit or loss.
On consolidation, the results of foreign operations are translated into Sterling at the average
exchange rate for the year and their assets and liabilities are translated into Sterling at the
exchange rate ruling on the balance sheet date. Currency translation differences, including
those on monetary items that form part of a net investment in a foreign operation, are
recognised in the foreign currency translation reserve and in other comprehensive income.
In the event that a foreign operation is sold, the gain or loss on disposal recognised in the
Consolidated Income Statement is determined after taking into account the cumulative
currency translation differences that are attributable to the operation. As permitted by IFRS 1,
the Group elected to deem cumulative currency translation differences to be £nil as at 27
December 2003. Accordingly, the gain or loss on disposal of a foreign operation does not
include currency translation differences arising before that date.
In the Consolidated Cash Flow Statement, the cash flows of foreign operations are translated
into Sterling at the average exchange rate for the year.
Revenue recognition
Revenue is the consideration the Group expects to receive from customers in exchange for
goods and services. Revenue is recognised in the Consolidated Income Statement when
control of goods and services is transferred to the customer. Transfer of control is deemed to
be over time where the following criteria are met:
– The customer concurrently receives and consumes the benefits from the Group’s
performance;
– The Group’s performance creates or enhances a customer-controlled asset; or
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170
Notes to the Group Financial Statements
continued
– The Group’s performance does not create an asset with an alternative use and the Group
has a right to payment for performance completed to date.
Where the above criteria are not met, then revenue is recognised at a point in time when
control is transferred to the customer.
Strategic Report
Governance
Financial Statements
Additional Information
Revenue is shown net of sales taxes, discounts and after eliminating sales within the Group.
No revenue is recognised where recovery of the consideration is not probable or there are
significant uncertainties regarding associated costs, or the possible return of goods. Variable
consideration is recognised only if it is highly probable that there will not be a significant
revenue reversal. The consideration is an estimation based on the terms of the contract and
other available information. Liquidated damages can result in variable consideration and will
only be recognised as a deduction from revenue where there is a history of recurring
liquidated damages, for example, for the same customer or product line with the value of the
reduction being the most likely amount from a range of possible outcomes. The adjustment
to revenue will be monitored throughout the contract and adjusted as liquidated damages
become more or less likely. Volume discounts are deducted from revenue based on the most
reliable estimates of volumes to be purchased. The timing of payment from customers is
generally aligned to revenue recognition, subject to agreed payment terms usually in line with
industry standards. Certain contracts may include milestone payments which do not
necessarily align to revenue recognition: a contract asset is recorded where revenue is
recognised in advance of customer invoicing, and a contract liability is recognised where cash
is received in advance of revenue recognition.
Sale of goods
This policy is applicable to the sale of both original equipment and spare parts whether sold
individually, in bulk or as part of a cross-selling marketing strategy. Contracts for the provision
of both original equipment and spare parts, and where required services, are combined if one
or more of the following is met:
– The contract achieves a single commercial objective and is negotiated as a package;
– The price or performance of one contract influences the amount of consideration to be paid
in the other contract; or
– The goods or services in the separate contracts represent a single performance obligation.
Each cross-selling contract is reviewed to identify the performance obligations in relation to
original equipment and spare parts with them only being combined if they are not capable of
being distinct and are not distinct in the context of the contract.
Revenue from the sale of goods is recognised in line with incoterms which in the majority of
transactions is at the point of despatch. This reflects when the customer obtains control of the
product and can determine its future use and location.
Where the sale of product requires customer inspection, this is deemed to be part of the main
performance obligation so revenue is not recognised until the inspection has been completed
and approved by the customer. In instances where commissioning is provided, the transfer of
control for the sale of goods is at the point of despatch where commissioning is a separate
performance obligation or once commissioning is complete where combined in the sale of
goods performance obligation. A separate performance obligation for commissioning is
identified where a customer could obtain the same service from a third-party supplier with
revenue in respect of commissioning being recognised once the commissioning is complete.
Provision of services
The revenue recognition of provision of services is dependent on the nature of the contracts.
Shorter-term contracts tend to be for ‘one-off’ service provision, which means the customer
only consumes the benefit from the Group’s performance when the work is complete.
Revenue is therefore recognised at a point in time for such contracts. For other contracts,
revenue from the rendering of services is generally recognised over time where the customer
concurrently receives and consumes a benefit from the Group’s performance over the period
of the contract duration. Revenue from services is recognised in proportion to the stage of
completion of the performance obligations at the balance sheet date. The stage of
completion is assessed by reference to the transfer of control over time, which usually
corresponds to the contractual agreement with each separate customer and the costs
incurred on the contract to date in comparison with the total forecast costs of the contract.
Construction contracts
Revenue for construction contracts is recognised over time as the contracts usually contain
discrete elements separately transferring control to customers over the life of the contract and
the Group’s performance does not create an asset with an alternative use.
The stage of completion of a contract is determined either by reference to the proportion that
contract costs incurred for work performed to date bear to the estimated total contract costs,
or by reference to the completion of a physical proportion of the contract work. Both these
methods are faithful depictions of the transfer of control given the Group has a right to
payment for performance completed to date. The basis used is dependent upon the nature
of the underlying contract. For instances where the work is subject to formal customer
acceptance procedures, revenue will only be recognised once the customer review has been
completed and approved by the customer as this is the point both parties are in agreement
that control has been transferred in line with contract terms. Losses on contracts are
recognised in the year when such losses become probable.
Property, plant & equipment
Property, plant and equipment comprises owned assets and right-of-use assets that do not
meet the definition of investment property.
Owned assets
Owned property, plant and equipment is stated at cost less accumulated depreciation and
any recognised impairment losses. Freehold land and assets under construction are not
depreciated. Depreciation of property, plant and equipment is provided on a straight-line
basis so as to charge the cost less residual value to the Consolidated Income Statement over
the expected useful life of the asset concerned, and is in the following ranges:
Freehold buildings, long leasehold land and buildings
10 – 40 years
Plant and equipment
3 – 20 years
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Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Right-of-use assets and lease liabilities
At inception of a contract, the Group assesses whether the contract is, or contains, a lease.
A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Group assesses
whether it has both the right to obtain substantially all of the economic benefits from use
of the identified asset and the right to direct the use of the identified asset throughout the
period of use.
The Group recognises a lease liability and right-of-use asset at the lease commencement
date. The lease liability is initially measured as the present value of the lease payments that are
not paid at the commencement date, discounted using the interest rate implicit in the lease,
or where the interest rate implicit in the lease cannot be readily determined, the Group’s
incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the
discount rate. The Group’s incremental borrowing rate is calculated by taking the government
borrowing rate in any given currency and adding the estimated Group credit spreads for a
variety of tenors. An interpolation is performed annually to obtain one rate for each of the
major lease currencies based on the weighted average life of the lease book.
Lease payments consist of the following components:
– fixed payments, including in-substance fixed payments, less any lease incentives receivable;
– variable lease payments that depend on an index or a rate;
– amounts expected to be payable by the lessee under residual value guarantees;
– the exercise price of a purchase option (if the lessee is reasonably certain to exercise that
option); and
– payments of penalties for terminating the lease (if the lease term reflects the lessee
exercising the option to terminate the lease).
The right-of-use asset is measured as equal to the lease liability and adjusted for:
– lease payments made to the lessor at or before the commencement date;
– lease incentives received;
– initial direct costs associated with the lease; and
– an initial estimate of restoration costs.
The right-of-use asset is depreciated using the straight-line method over the lease term.
In addition, the right-of-use asset is periodically reduced by any impairment losses.
The Group has adopted the exemption available for short-term leases, with payments being
recognised on a straight-line basis over the lease term. Short-term leases are defined as
leases with a lease term of 12 months or less.
The Group has adopted the exemption available for low value assets, with payments being
recognised on a straight-line basis over the lease term. Leases relating to laptops, desktop
computers, mobile phones, photocopiers, printers and other office equipment, where the
asset value is less than £3,500 or the local currency equivalent have been treated as low value.
Where the lease contract meets both short-term and low value exemptions, the annual cost
of the lease is reported within expenses relating to short-term leases.
For each lease, the lease term has been calculated as the non-cancellable period of the lease
contract, except where the Group is reasonably certain that it will exercise contractual
extension options. In assessing whether a lessee is reasonably certain to exercise an option to
extend a lease, or not to exercise an option to terminate a lease, the Group shall consider all
relevant facts and circumstances that create an economic incentive for the lessee to exercise
the option to extend the lease, or not to exercise the option to terminate the lease. In certain
circumstances, the Group will refer to the five-year Strategic Plan period as an appropriate
period to consider whether the ‘reasonably certain’ criteria are met.
Goodwill
Goodwill arises on the acquisition of businesses and represents any excess of the cost of the
acquired entity over the Group’s interest in the fair value of the entity’s identifiable assets,
liabilities and contingent liabilities determined at the date of acquisition. Acquisition costs are
recognised in the Consolidated Income Statement in the year in which they are incurred.
Goodwill in respect of an acquired business is recognised as an intangible asset. Goodwill is
carried at cost less any recognised impairment losses and is tested at least annually or where
there are indicators of impairment.
The carrying amount of goodwill allocated to a cash generating unit is taken into account
when determining the gain or loss on disposal of the unit.
An assessment of probable contingent consideration is recognised at the date of acquisition
or disposal. For acquisitions, subsequent changes to the fair value of the contingent
consideration are adjusted against the cost of acquisition where they qualify as measurement
period adjustments. The measurement period is the period from the date of acquisition to the
date that the Group obtains complete information about facts and circumstances that existed
as of the acquisition date, and is subject to a maximum of one year. If the change does not
qualify as a measurement period adjustment, it is reflected in the Consolidated Income
Statement as an adjusting item. For disposals, any subsequent change in contingent
consideration is adjusted against the disposal proceeds and the gain or loss on disposal.
Other intangible assets
Intangible assets acquired separately are measured at cost on initial recognition. An intangible
resource acquired in a business combination is recognised as an intangible asset if it is
separable from the acquired business or arises from contractual or legal rights and it is
expected to generate future economic benefits.
An intangible asset with a finite life is amortised on a straight-line basis so as to charge its cost,
which in respect of an acquired intangible asset represents its fair value at the acquisition
date, to the Consolidated Income Statement over its expected useful life. An intangible asset
with an indefinite life is not amortised but is tested at least annually for impairment and carried
at cost less any recognised impairment losses.
The Weir Group PLC Annual Report and Financial Statements 2024
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Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Brand names
Brands are recognised as a result of a business combination. The brand is recognised if it is
separable from the remaining business and is expected to generate future economic benefits.
Internally generated brands are not capitalised in accordance with IAS 38 'Intangible assets'.
Brands are fair valued at acquisition and subsequently measured at cost less any accumulated
impairment. All subsequent expenditure is expensed to the Consolidated Income Statement
as incurred.
Due to the long-term nature of the brands and there being no foreseeable limit to the period
over which they are determined to generate economic benefit, the Group has assessed that
they have indefinite useful lives, with the exception of Motion Metrics, which is amortised over
15 years. An annual impairment exercise is completed for brands with an indefinite useful life,
to confirm that the value in use, based on discounted cash flows, exceeds the carrying value.
Customer and distributor relationships
Customer and distributor relationships are recognised as part of a business combination if
they are separable from the acquired business or arise from contractual or legal rights. They
represent the relationships that the acquiree has built up over a significant period of time and
will provide repeat custom to the business which will generate future economic benefit.
The assets are initially recorded at fair value at acquisition and subsequently recognised at
cost less accumulated amortisation and impairment. All subsequent expenditure is charged to
the Consolidated Income Statement as incurred. Amortisation is charged to the Consolidated
Income Statement over the useful life of the asset. The useful life can vary depending on the
circumstances of each acquisition. The useful lives range from five to 30 years.
If there are any indicators of impairment an assessment of the value in use of the relationships
is completed. If the carrying value exceeds the value in use, the variance is accounted for as an
impairment to the asset with a corresponding charge to the Consolidated Income Statement.
Software
Software assets can be purchased, acquired or internally generated. Software that is not an
integral part of related hardware is recognised as an intangible asset.
Software is recognised at cost less accumulated amortisation and impairment. Amortisation is
spread over the estimated useful life of the software which can range from four to eight years.
Software as a Service (SaaS) arrangements provide the Group with the right to access cloud-based
software applications over a contractual period. The software remains the intellectual property of
the developer and as a result, the Group does not recognise an intangible asset in relation to
subscription fees and costs incurred to customise or configure the software. The related costs are
recognised in the Consolidated Income Statement when the service is received.
Costs incurred to enhance or develop an existing intangible asset or develop new software
code that meet the definition and recognition criteria of an intangible asset are capitalised
as intangible software assets. Amortisation is recognised over the expected useful life of
the software.
Trademarks and intellectual property
Trademarks and intellectual property are legally protected rights that are expected to
generate future revenues. On acquisition, they are measured at fair value based on
discounted expected cash flows. Assets are subsequently held at cost less accumulated
amortisation and impairment.
The assets are amortised based on the period in which the legal protection is in place or the
asset is expected to generate revenues. The amortisation period for the currently capitalised
trademarks ranges from six to 15 years.
Other
Other intangible assets are stated at cost less accumulated amortisation and any recognised
impairment losses. The expected useful life of other intangible assets is up to six years.
Research & development costs
All research expenditure is charged to the Consolidated Income Statement in the year in
which it is incurred.
Development expenditure is charged to the Consolidated Income Statement in the year in
which it is incurred unless it relates to the development of a new product or technology and
meets the following requirements:
– it is incurred after the technical feasibility and commercial viability of the product has been
proven;
– the development costs can be measured reliably;
– future economic benefits are probable; and
– the Group intends, and has sufficient resources, to complete the development and to use or
sell the asset.
Any such capitalised development expenditure is amortised on a straight-line basis so it is
charged to the Consolidated Income Statement over the expected life of the resulting product
or technology.
Government grants
Government grants are recognised at their fair value where it is certain that the grant will be
received and the Group will comply with all attached conditions. Government grants relating
to costs are deferred and recognised in the income statement over the period necessary to
match them with the costs they are intended to compensate. Government grants relating to
the purchase of property, plant and equipment are deducted in arriving at the carrying
amount of the related asset.
Impairment of non-current assets
All non-current assets are tested for impairment whenever events or circumstances indicate
that their carrying values might be impaired. Additionally, goodwill and intangible assets with
an indefinite life are subject to an annual impairment test.
The Weir Group PLC Annual Report and Financial Statements 2024
173
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
An impairment loss is recognised to the extent that an asset’s carrying value exceeds its
recoverable amount, which represents the higher of the asset’s fair value less costs to sell and
its value in use. An asset’s value in use represents the present value of the future cash flows
expected to be derived from the asset. Where it is not possible to estimate the recoverable
amount of an individual asset, the impairment test is conducted for the cash generating unit
to which it belongs. Similarly, the recoverable amount of goodwill is determined by reference
to the discounted future cash flows of the cash generating units to which it is allocated.
Impairment losses are recognised in the Consolidated Income Statement. Impairment losses
recognised in previous periods for an asset other than goodwill are reversed if there has been
a change in the estimates used to determine the asset’s recoverable amount. The carrying
amount of an asset shall not be increased above the carrying amount that would have been
determined had no impairment loss been recognised for the asset in prior periods.
Impairment losses recognised in respect of goodwill are not reversed.
Inventories
Inventories are valued at the lower of cost and net realisable value, with due allowance for any
obsolete or slow-moving items. Cost represents the expenditure incurred in bringing
inventories to their existing location and condition, and comprises the cost of raw materials,
direct labour costs, other direct costs and related production overheads. Raw material cost is
generally determined on a first-in, first-out basis. Net realisable value is the estimated selling
price less costs to complete and sell.
Financial assets & liabilities
The Group’s principal financial assets and liabilities, other than derivatives, comprise bank
overdrafts, short-term borrowings, loans and fixed-rate notes, cash and short-term deposits.
The Group also has other financial assets and liabilities such as trade receivables, trade
payables and leases which arise directly from its operations. Other receivables include non-
current assets in relation to an insurance policy held for a grantor trust. This Trust Owned Life
Insurance policy is held at fair value, which is equivalent to its surrender value.
A financial asset is generally derecognised when the contract that gives rise to it is settled,
sold, cancelled or expires.
A financial liability is derecognised when the obligation under the liability is discharged,
cancelled or expires. Where an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability, such that the difference in the respective carrying
amounts together with any costs or fees incurred are recognised in profit or loss. Under IFRS 9
'Financial instruments', where the modification is not substantial, the modified cash flows are
discounted at the original effective interest rate to determine a revised carrying amount of the
liability, with any difference in carrying amount recognised in the Income Statement.
Reimbursement asset
The Group has several insurance policies in place with regards to legal claims in relation to
alleged asbestos exposure as discussed in note 22. In accordance with IAS 37 ‘Provisions,
contingent liabilities and contingent assets’, a reimbursement asset is only recognised when it
is virtually certain that the asset will be received and there is a corresponding liability
recognised. The value recognised is the lower of the amount confirmed by the insurer under
the policy and the provision for the related liability. If receipt of the asset is probable the asset
is not recognised but disclosed.
Trade receivables
Trade receivables, which are generally of a short-term nature, are recognised at original
invoice amount where the consideration is unconditional. If they contain significant financing
components, trade receivables are instead recognised at fair value. The Group holds trade
receivables to collect the contractual cash flows and therefore measures them subsequently
at amortised cost using the effective interest method. Details of the Group’s impairment
policies and the calculation of the loss allowance are provided in note 18 and the policy
in respect of invoice discounting is included in note 30.
Cash & cash equivalents
Cash and cash equivalents comprise cash in hand, deposits available on demand and other
short-term highly liquid investments with a maturity on acquisition of three months or less
and bank overdrafts and short-term borrowings with a maturity on acquisition of three
months or less. Bank overdrafts are presented as current liabilities to the extent that there is no
right of offset with cash balances.
Trade payables
Trade payables are recognised and carried at original invoice amount. The Group’s supply
chain financing programme policy and assessment for the year is provided in note 21.
Interest-bearing loans & borrowings
Obligations for loans and borrowings are recognised when the Group becomes party to the
related contracts and are measured initially at fair value less directly attributable transaction
costs. After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the effective interest method. Amortised cost is calculated
by taking into account any issue costs and any discount or premium on settlement.
Borrowings are classified as current liabilities unless the Group has an unconditional right to
settle the liability at least 12 months after the balance sheet date.
The Group has Sustainability-Linked Notes with interest rates which are linked to the
achievement of Sustainability Performance Targets (SPT). After initial recognition, these
Sustainability-Linked Notes are measured at amortised cost using the effective interest rate
method. In the event that the SPTs are not expected to be achieved, consideration will be
given to the impact on cash flows on the Sustainability-Linked Notes. Under IFRS 9 'Financial
instruments', where the modification is not substantial, the modified cash flows are discounted
at the original effective interest rate to determine a revised carrying amount of the liability,
with any difference in carrying amount recognised in the Income Statement.
Provisions, contingent liabilities & contingent assets
A provision is recognised in the Consolidated Balance Sheet when the Group has a legal or
constructive obligation as a result of a past event, the obligation can be estimated reliably and
it is probable that an outflow of economic benefits will be required to settle the obligation. If
The Weir Group PLC Annual Report and Financial Statements 2024
174
Notes to the Group Financial Statements
continued
the effect is material, provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
Strategic Report
Governance
Financial Statements
Additional Information
A contingent liability is disclosed if there is a possible obligation as a result of a past event that
might, but will probably not, require an outflow of economic benefits; or there is a present
obligation as a result of a past event that probably requires an outflow of economic benefits,
but where the obligation cannot be measured reliably.
A contingent asset is disclosed if an inflow of economic benefits is probable arising from past
events and whose existence will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the entity.
Derivative financial instruments & hedge accounting
The Group uses derivative financial instruments, principally forward foreign currency contracts
and cross-currency swaps, to reduce its exposure to exchange rate movements. The Group also
uses foreign currency borrowings as a hedge of its exposure to foreign exchange risk on its
investments in foreign subsidiaries. Additionally, the Group periodically uses interest rate swaps
to manage its exposure to interest rate risk. The Group does not hold or issue derivatives for
speculative or trading purposes.
Derivative financial instruments are recognised as assets and liabilities measured at their fair values
at the balance sheet date. 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 and counterparty and the Group’s own credit risk. The fair value of interest rate swaps and
cross-currency swaps is calculated as the present value of the estimated future cash flows based
on interest rate curves, spot foreign exchange rates, and counterparty and own credit risk. Changes
in their fair values are recognised in the Consolidated Income Statement, except where hedge
accounting is used, provided the conditions specified by IFRS 9 are met. Hedge accounting is
applied in respect of hedge relationships where it is both permissible under IFRS 9 and practical
to do so. When hedge accounting is used, the relevant hedging relationships are classified as fair
value hedges, cash flow hedges or net investment hedges, as appropriate.
Where the hedging relationship is classified as a fair value hedge, the carrying amount of the
hedged asset or liability will be adjusted by the increase or decrease in its fair value attributable
to the hedged risk and the resulting gain or loss will be recognised in the Consolidated Income
Statement where, to the extent that the hedge is effective, it will be offset by the change in the fair
value of the hedging instrument.
For fair value hedges in which the spot element of the hedging instrument has been
designated to the hedge, the changes in the forward element of the hedging instrument is
recognised within other comprehensive income in the costs of hedging reserve within equity.
Where the hedging relationship is classified as a cash flow or net investment hedge, to the extent
that the hedge is effective, changes in the fair value of the hedging instrument will be recognised
directly in other comprehensive income. For the cash flow hedge, when the hedged asset or liability
is recognised in the financial statements, the accumulated gains and losses recognised in other
comprehensive income will be either recycled to the income statement or, if the hedged item
results in a non-financial asset, will be recognised as adjustments to its initial carrying amount. For
net investment hedges, gains and losses on hedging instruments designated as hedges of the net
investments in foreign operations are recognised in other comprehensive income to the extent
that the hedging relationship is effective. Gains and losses accumulated in the foreign currency
translation reserve are recycled to the income statement when the foreign operation is disposed of.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or
exercised, or no longer qualifies for hedge accounting. At that point in time, any cumulative gain or
loss on the hedging instrument recognised through other comprehensive income is kept in equity
until the forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the
net cumulative gain or loss that was reported in equity is immediately reclassified to the income
statement in the period.
Derivatives embedded in non-derivative host contracts, which are not already measured at fair
value through profit or loss, are recognised separately as derivative financial instruments when
their risks and characteristics are not closely related to those of the host contract and the host
contract is not stated at its fair value with changes in its fair value recognised in the Consolidated
Income Statement.
Where items are recognised in the Consolidated Income Statement, these are presented within
operating profit or finance costs dependent on their nature.
Share-based payments
Equity settled share-based incentives are provided to employees under the Group’s Share
Reward Plan (SRP), formerly the Long Term Incentive Plan (LTIP), the Weir ShareBuilder Plan
(WSBP) and as a consequence of occasional one-off conditional awards made to employees.
The fair value of SRP awards and one-off conditional awards at the date of the grant is
calculated using appropriate option pricing models and the cost is recognised on a straight-
line basis over the vesting period. Adjustments are made to reflect expected and actual
forfeitures during the vesting period due to failure to satisfy service or performance
conditions, where applicable. The conditions of the SRP for the Executive Directors, which took
effect in 2018, are summarised in the Directors’ Remuneration Policy, which can be found on
the Company’s website at corporategovernance.weir. The conditions of the SRP for Senior
Management are summarised in note 28.
The fair value of WSBP awards at grant date is calculated as the share price at the date of the
grant less an adjustment for loss of reinvestment return on the dividend equivalent. There are
no performance conditions attached to these awards, but participants who leave the
Company prior to vesting lose their right to the awards. The terms of the share awards
granted under the WSBP are set out on the plan’s website at sharebuilder.weir .
Treasury shares
The Weir Group PLC shares held by the Company, or those held in Trust, are classified in
Shareholders’ equity as treasury shares and are recognised at cost. Consideration received for the
sale of such shares is also recognised in equity, with any difference between the proceeds from
sale and the original cost being taken directly to retained earnings. No gain or loss is recognised in
total comprehensive income on the purchase, sale, issue or cancellation of equity shares.
The Weir Group PLC Annual Report and Financial Statements 2024
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Notes to the Group Financial Statements
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Strategic Report
Governance
Financial Statements
Additional Information
Post-employment benefits
Post-employment benefits comprise pension benefits provided to certain current and former
employees in the UK, US and Canada and post-retirement healthcare benefits provided to
certain employees in the US.
For defined benefit pension and post-retirement healthcare plans, the annual service cost is
calculated using the projected unit credit method and is recognised over the future service
lives of participating employees, in accordance with the advice of qualified actuaries. Current
service cost and administration expenses are recognised in operating costs and net interest
on the net pension liability is recognised in finance costs.
The finance cost recognised in the Consolidated Income Statement in the year reflects the net
interest on the net pension liability/asset. This represents the change in the net pension
liability/asset resulting from the passage of time, and is determined by applying the discount
rate to the opening net liability/asset, taking into account employer contributions paid into the
plan, and hence reducing or increasing the net liability/asset, during the year.
Past service costs resulting from enhanced benefits are recognised immediately in the
Consolidated Income Statement. Actuarial gains and losses, which represent differences
between interest on the plan assets, experience on the benefit obligation and the effect of
changes in actuarial assumptions, are recognised in full in other comprehensive income in the
year in which they occur.
The defined benefit liability or asset recognised in the Consolidated Balance Sheet comprises
the net total for each plan of the present value of the benefit obligation, using a discount rate
based on yields at the balance sheet date on appropriate high quality corporate bonds that
have maturity dates approximating the terms of the Group’s obligations and are denominated
in the currency in which the benefits are expected to be paid minus the fair value of the plan
assets, if any, at the balance sheet date. The balance sheet asset recognised is limited to the
present value of economic benefits which may be available for the Group to recover by way of
refunds or a reduction in future contributions. In order to calculate the present value of
economic benefits, consideration is also given to any minimum funding requirements.
For defined contribution plans, the cost represents the Group’s contributions to the plans and
these are charged to the Consolidated Income Statement in the year in which they fall due,
along with any associated administration costs.
Taxation
Current tax is the amount of tax payable or recoverable in respect of the taxable profit or loss for
the year.
Deferred tax liabilities represent tax payable in future years in respect of taxable temporary
differences. Deferred tax assets represent tax recoverable in future years in respect of deductible
temporary differences, the carry forward of unutilised tax losses and the carry forward of unused tax
credits. Deferred tax is measured on an undiscounted basis using the tax rates and laws that have
been enacted or substantively enacted at the balance sheet date and are expected to apply when
the deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax is recognised on temporary differences between the carrying amount of an asset or
liability in the balance sheet and its tax base with the following exceptions:
- Deferred tax arising from the initial recognition of goodwill, or of an asset or liability in a
transaction that is not a business combination, that, at the time of the transaction, affects neither
accounting nor taxable profit or loss, is not recognised;
- Deferred tax is provided on temporary differences arising on investments in subsidiaries and joint
ventures, except where the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future; and
- A deferred tax asset is recognised only to the extent that it is probable that future taxable profits
will be available against which the asset can be utilised.
Current and deferred tax is recognised in the Consolidated Income Statement except if it relates to
an item recognised directly in equity, in which case it is recognised directly in equity.
The Group also recognises provisions in the Consolidated Balance Sheet for uncertain tax positions
as disclosed above in other accounting estimates.
3. Alternative performance measures
The Consolidated Financial Statements of The Weir Group PLC have been prepared in
accordance with UK-adopted International Accounting Standards and with the requirements
of the Companies Act 2006 as applicable to those companies reporting under those
standards. In measuring our performance, the financial measures that we use include those
that have been derived from our reported results in order to eliminate factors which we
believe distort period-on-period comparisons. These are considered alternative performance
measures. This information, along with comparable GAAP measurements, is useful to investors
in providing a basis for measuring our operational performance. Our management uses these
financial measures, along with the most directly comparable GAAP financial measures, in
evaluating our performance and value creation. Alternative performance measures should not
be considered in isolation from, or as a substitute for, financial information in compliance with
GAAP. Alternative performance measures as reported by the Group may not be comparable
with similarly titled amounts reported by other companies.
Below we set out our definitions of alternative performance measures and provide
reconciliations to relevant GAAP measures.
Adjusted results and adjusting items
The Consolidated Income Statement presents Statutory results, which are provided on a GAAP
basis, and Adjusted results (non-GAAP), which are management’s primary area of focus when
reviewing the performance of the business. Adjusting items represent the difference between
Statutory results and Adjusted results and are defined within the accounting policies section
above. The accounting policy for Adjusting items should be read in conjunction with this note.
Details of each adjusting item are provided in note 6. We consider this presentation to be
helpful as it allows greater comparability of the underlying performance of the business from
year to year.
The Weir Group PLC Annual Report and Financial Statements 2024
176
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Adjusted EBITDA
EBITDA is operating profit from continuing operations, before exceptional items, other
adjusting items, intangibles amortisation, and excluding depreciation of owned assets and
right-of-use assets. EBITDA is a widely used measure of a company's profitability of its
operations before any effects of indebtedness, taxes or costs required to maintain its asset
base. EBITDA is used in conjunction with other GAAP and non-GAAP financial measures to
assess our operational performance. A reconciliation of EBITDA to the closest equivalent GAAP
measure, operating profit, is provided.
2024
£m
2023
£m
Continuing operations
Operating profit
391.0
368.4
Adjusted for:
Exceptional and other adjusting items (note 6)
60.4
64.9
Adjusting amortisation (note 6)
20.7
25.5
Adjusted operating profit
472.1
458.8
Non-adjusting amortisation (note 5)
12.0
12.2
Adjusted earnings before interest, tax and amortisation (EBITA)
484.1
471.0
Depreciation of owned property, plant & equipment (note 12)
45.9
39.9
Depreciation of right-of-use property, plant & equipment (note 12)
31.9
31.6
Adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA)
561.9
542.5
Adjusted operating cash flow
Adjusted operating cash flow is the equivalent of net cash generated from operations before
additional pension contributions, exceptional and other adjusting cash items and income tax
paid as shown in the cash flow statement and associated notes to the financial statements.
This is a useful measure to view or assess the underlying cash generation of the business from
its operating activities. A reconciliation to the GAAP measure ‘Net cash generated from
operating activities’ is provided in the Consolidated Cash Flow Statement.
Free operating cash flow and free cash flow
Free operating cash flow (FOCF) is defined as adjusted operating cash flow amended for net
capital expenditure, lease payments, dividends received from joint ventures and purchase of
shares for employee share plans. FOCF provides a useful measure of the cash flows generated
directly from the operational activities after taking into account other cash flows closely
associated with maintaining daily operations.
Free cash flow (FCF) is defined as FOCF further adjusted for net interest, income taxes,
settlement of derivative financial instruments, additional pension contributions and non-
controlling interest dividends. FCF reflects an additional way of viewing our available funds that
we believe is useful to investors as it represents cash flows that could be used for repayment
of debt, dividends, exceptional and other adjusting items, or to fund our strategic initiatives,
including acquisitions, if any.
The reconciliation of adjusted operating cash flows to FOCF and subsequently FCF is as follows.
The Weir Group PLC Annual Report and Financial Statements 2024
177
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
2024
£m
2023
£m
Adjusted operating cash flow
591.1
525.5
Net capital expenditure from purchase & disposal of property, plant
& equipment and intangibles
(69.3)
(82.5)
Lease payments
(24.8)
(31.0)
Dividends received from joint ventures
–
4.1
Purchase of shares for employee share plans
(13.2)
(24.0)
Free operating cash flow (FOCF)
483.8
392.1
Net interest paid
(42.6)
(39.9)
Income tax paid
(110.5)
(103.9)
Settlement of derivative financial instruments
(1.7)
(0.5)
Additional pension contributions paid
–
(9.3)
Dividends paid to non-controlling interests
(0.8)
(0.9)
Free cash flow (FCF)
328.2
237.6
Free operating cash conversion
Free operating cash conversion is a non-GAAP key performance measure defined as free
operating cash flow divided by adjusted operating profit on a total Group basis. The measure
is used by management to monitor the Group's ability to generate cash relative to operating
profits.
2024
£m
2023
£m
Adjusted operating profit
472.1
458.8
Free operating cash flow
483.8
392.1
Free operating cash conversion %
102%
85%
Working capital as a percentage of sales
Working capital as a percentage of sales is calculated based on working capital as reflected
below, divided by revenue, as included in the Consolidated Income Statement. It is a measure
used by management to monitor how efficiently the Group is managing its investment in
working capital relative to revenue growth.
2024
£m
2023
£m
Working capital as included in the Consolidated Balance Sheet
Other receivables
44.3
53.8
Inventories
580.1
608.1
Trade & other receivables
546.7
526.2
Derivative financial instruments (note 30)
0.6
(0.8)
Trade & other payables
(618.7)
(581.3)
Other payables
–
(0.6)
553.0
605.4
Adjusted for:
Insurance contract assets (note 18)
(46.8)
(57.5)
Interest accruals
12.6
12.3
Deferred consideration (note 21)
0.6
1.6
(33.6)
(43.6)
Working capital
519.4
561.8
Revenue
2,505.6
2,636.0
Working capital as a percentage of sales
20.7%
21.3%
Net debt
Net debt is a widely used liquidity metric calculated by taking cash and cash equivalents less
total current and non-current debt. A reconciliation of net debt to cash and short-term
deposits and interest-bearing loans and borrowings is provided in note 26. It is a useful
measure used by management and investors when monitoring the capital management of
the Group. Net debt, excluding lease liabilities and converted at the exchange rates used in the
preparation of the Consolidated Income Statement, is also the basis for covenant reporting as
included in note 31.
The Weir Group PLC Annual Report and Financial Statements 2024
178
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
179
Notes to the Group Financial Statements
continued
Return on Capital Employed (ROCE)
ROCE is a key metric which is used to analyse the Group’s profitability and capital efficiency.
ROCE is calculated as Adjusted Earnings Before Interest & Tax (Adjusted EBIT) from continuing
operations divided by the average capital employed. Adjusted EBIT represents the Group’s
statutory operating profit adjusted for exceptional and other adjusting items. Capital
employed represents the Group’s net assets adjusted for third party net debt, Trust Owned
Life Insurance policy investments and the IAS 19 pension asset net of deferred tax.
2024
£m
2023
£m
Continuing operations
Operating profit
391.0
368.4
Adjusted for:
Exceptional and other adjusting items (note 6)
60.4
64.9
Adjusted earnings before interest and tax (Adjusted EBIT)
451.4
433.3
Net assets
1,853.6
1,699.7
Adjusted for:
Third party net debt (note 26)
534.6
690.1
Trust Owned Life Insurance policy investments (note 18)
(42.7)
(42.6)
IAS 19 Pension asset (note 24)
(9.3)
(2.1)
Deferred tax on pension assets (note 23)
2.6
0.9
Capital employed
2,338.8
2,346.0
Average capital employed
2,342.4
2,412.1
ROCE
19.3%
18.0%
4. Segment information
Continuing operations includes two operating Divisions: Minerals and ESCO. These two
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 IFRS 8 'Operating
segments'. The operating and reportable segments were determined based on the reports
reviewed by the Chief Executive Officer, which are used to make operational decisions.
The Minerals segment is a global leader in engineering, manufacturing and service processing
technology used in abrasive, high-wear mining applications. Its differentiated technology is
also used in infrastructure and general industrial markets. The ESCO segment is a global leader
in the provision of Ground Engaging Tools (GET) for large mining machines. It operates
predominantly in mining and infrastructure markets where its highly engineered technology
improves productivity through extended wear life, increased safety and reduced energy
consumption.
Following the acquisition of Sentiantechnologies AB (SentianAI) on 21 November 2023, this
entity has been included in the Minerals segment. SentianAI is a developer of innovative
cloud-based Artificial Intelligence solutions to the mining industry.
The Chief Executive Officer assesses the performance of the operating segments based on
operating profit from continuing operations before exceptional and other adjusting items
(‘segment result’). Finance income and expenditure and associated interest-bearing liabilities
and financing 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 Officer with respect to assets and liabilities are measured in a manner
consistent with that of the financial statements. The assets are allocated based on the
operations of the segment and the physical location of the asset. The liabilities are allocated
based on the operations of the segment.
Transfer prices between business segments are set on an arm’s length basis, in a manner
similar to transactions with third parties.
The segment information for the reportable segments for 2024 and 2023 is disclosed below.
Information related to discontinued operations is included in note 9.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
180
Notes to the Group Financial Statements
continued
Minerals
ESCO
Total continuing
operations
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Revenue
Sales to external customers
1,817.5
1,937.4
688.1
698.6 2,505.6
2,636.0
Inter-segment sales
0.1
0.1
1.5
2.5
1.6
2.6
Segment revenue
1,817.6
1,937.5
689.6
701.1 2,507.2
2,638.6
Eliminations
(1.6)
(2.6)
2,505.6
2,636.0
Sales to external customers – 2023 at 2024 average exchange rates
Sales to external customers
1,817.5
1,848.1
688.1
679.5 2,505.6
2,527.6
Segment result
Segment result before share of results
of joint ventures
382.8
375.7
127.4
119.4
510.2
495.1
Share of results of joint ventures
–
–
1.9
2.5
1.9
2.5
Segment result
382.8
375.7
129.3
121.9
512.1
497.6
Corporate expenses
(40.0)
(38.8)
Adjusted operating profit
472.1
458.8
Adjusting items
(81.1)
(90.4)
Net finance costs
(43.9)
(47.7)
Profit before tax from continuing operations
347.1
320.7
Segment result – 2023 at 2024 average exchange rates
Segment result before share of results
of joint ventures
382.8
352.5
127.4
115.9
510.2
468.4
Share of results of joint ventures
–
–
1.9
2.5
1.9
2.5
Segment result
382.8
352.5
129.3
118.4
512.1
470.9
Corporate expenses
(40.0)
(37.9)
Adjusted operating profit
472.1
433.0
Minerals
ESCO
Total continuing
operations
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Timing of revenue recognition
At a point in time
1,724.1
1,825.2
669.0
685.3
2,393.1
2,510.5
Over time
93.5
112.3
20.6
15.8
114.1
128.1
Segment revenue
1,817.6
1,937.5
689.6
701.1
2,507.2
2,638.6
Eliminations
(1.6)
(2.6)
2,505.6
2,636.0
Revenues from any single external customer do not exceed 10% of Group revenue.
Geographical information
Geographical information in respect of revenue for 2024 and 2023 is disclosed below.
Revenues are allocated based on the location to which the product is shipped.
2024
£m
2023
£m
Revenue by geography
UK
17.7
23.9
US
402.5
412.4
Canada
386.5
420.8
Asia Pacific
306.3
347.4
Australasia
437.5
412.4
South America
535.1
576.3
Middle East & Africa
312.8
317.4
Europe
107.2
125.4
Revenue
2,505.6
2,636.0
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
181
Notes to the Group Financial Statements
continued
2024
£m
2023
£m
An analysis of the Group's revenue is as follows:
Original equipment
492.3
552.3
Aftermarket parts
1,797.7
1,864.3
Sales of goods
2,290.0
2,416.6
Provision of services – aftermarket
190.6
160.7
Construction contracts – original equipment
21.1
54.3
Subscription services
3.9
4.4
Revenue
2,505.6
2,636.0
Minerals
ESCO
Total Group
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Assets & liabilities
Intangible assets
532.6
567.9
737.7
748.0
1,270.3
1,315.9
Property, plant & equipment
309.8
312.3
179.9
168.4
489.7
480.7
Working capital assets
854.0
844.9
273.6
288.1
1,127.6
1,133.0
1,696.4
1,725.1
1,191.2
1,204.5
2,887.6
2,929.6
Investments in joint ventures
–
–
12.8
12.2
12.8
12.2
Segment assets
1,696.4
1,725.1
1,204.0
1,216.7
2,900.4
2,941.8
Corporate assets
884.6
950.9
Total assets
3,785.0
3,892.7
Working capital liabilities
507.0
476.6
126.8
129.9
633.8
606.5
Segment liabilities
507.0
476.6
126.8
129.9
633.8
606.5
Corporate liabilities
1,297.6
1,586.5
Total liabilities
1,931.4
2,193.0
Minerals
ESCO
Total Group
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Other segment information - total Group
Segment additions to non-
current assets
78.5
79.7
33.1
46.6
111.6
126.3
Corporate additions to non-current assets
0.2
1.3
Total additions to non-current assets
111.8
127.6
Other segment information - total Group
Segment depreciation &
amortisation
69.9
65.0
39.1
42.2
109.0
107.2
Segment impairment of
property, plant & equipment
7.2
1.4
–
–
7.2
1.4
Segment impairment of
intangible assets
18.6
–
–
–
18.6
–
Corporate depreciation & amortisation
1.5
2.0
Total depreciation, amortisation & impairment
136.3
110.6
Corporate assets primarily comprise cash and short-term deposits, asbestos-related
insurance asset, Trust Owned Life Insurance policy investments, derivative financial
instruments, income tax receivable, deferred tax assets and elimination of intercompany
assets as well as those assets which are used for general head office purposes. Corporate
liabilities primarily comprise interest-bearing loans and borrowings, and related interest
accruals, derivative financial instruments, income tax payable, provisions, deferred tax liabilities,
elimination of intercompany liabilities and retirement benefit deficits as well as liabilities
relating to general head office activities. Segment additions to non-current assets include
right-of-use assets.
Geographical information
Geographical information in respect of non-current assets for 2024 and 2023 is disclosed
below. Assets are allocated based on the location of the assets and operations. Non-current
assets consist of property, plant & equipment, intangible assets and investments in joint
ventures.
Strategic Report
Governance
Financial Statements
Additional Information
2024
£m
2023
£m
Non-current assets by geography
UK
299.4
308.8
US
697.9
707.6
Canada
155.5
168.8
Asia Pacific
204.2
195.1
Australasia
198.2
201.8
South America
69.5
81.4
Middle East & Africa
103.5
97.6
Europe
53.4
57.6
Non-current assets
1,781.6
1,818.7
5. Revenues & expenses
The following disclosures are given in relation to continuing operations.
Year ended 31 December 2024
Year ended 31 December 2023
Adjusted
results
£m
Adjusting
items
£m
Statutory
results
£m
Adjusted
results
£m
Adjusting
items
£m
Statutory
results
£m
A reconciliation of revenue to operating profit is as follows:
Revenue
2,505.6
–
2,505.6
2,636.0
–
2,636.0
Cost of sales
(1,485.2)
(12.4) (1,497.6) (1,641.1)
(1.6) (1,642.7)
Gross profit
1,020.4
(12.4) 1,008.0
994.9
(1.6)
993.3
Other operating income
7.4
–
7.4
5.9
–
5.9
Selling & distribution costs
(292.5)
(1.0)
(293.5)
(291.4)
(2.4)
(293.8)
Administrative expenses
(265.1)
(67.7)
(332.8)
(253.1)
(86.4)
(339.5)
Share of results of joint ventures
1.9
–
1.9
2.5
–
2.5
Operating profit
472.1
(81.1)
391.0
458.8
(90.4)
368.4
Year ended 31 December 2024
Year ended 31 December 2023
Adjusted
results
£m
Adjusting
items
£m
Statutory
results
£m
Adjusted
results
£m
Adjusting
items
£m
Statutory
results
£m
Operating profit from continuing operations is stated after charging (crediting):
Cost of inventories recognised
as an expense
1,485.2
–
1,485.2
1,641.1
–
1,641.1
Depreciation of property, plant &
equipment (note 12)
77.8
–
77.8
71.5
–
71.5
Lease expenses (note 12)
13.7
–
13.7
14.5
–
14.5
Amortisation of intangible assets
(note 13)
12.0
20.7
32.7
12.2
25.5
37.7
Research & development costs
46.5
–
46.5
46.4
–
46.4
Net foreign exchange losses
7.5
–
7.5
9.2
–
9.2
Net impairment charge of trade
receivables (note 18)
1.2
–
1.2
1.5
1.9
3.4
Government grants
(4.2)
–
(4.2)
(1.0)
–
(1.0)
Exceptional and other adjusting
items (note 6) Note 1
–
60.4
60.4
–
63.0
63.0
Note 1. Items not separately disclosed above.
2024
£m
2023
£m
Employee benefits expense
Wages & salaries
534.8
549.3
Social security costs
48.3
47.5
Other pension costs
Defined benefit plans
–
0.1
Defined contribution plans
29.3
29.0
Share-based payments – equity settled transactions (note 28)
10.4
7.0
622.8
632.9
Details of Directors’ remuneration is disclosed in note 29.
The Weir Group PLC Annual Report and Financial Statements 2024
182
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
2024
Number
2023
Number
The average monthly number of people employed by the Company and its subsidiaries is
as follows:
Minerals
8,677
9,185
ESCO
2,541
2,577
Group companies
433
301
11,651
12,063
At 31 December 2024, the total number of people employed by the Group, including
contingent workers, was 11,830 (2023: 12,391).
Auditors' remuneration
The total fees payable by the Group to our auditors for work performed in respect of the audit
and other services provided to the Company and its subsidiary companies during the year are
disclosed below.
2024
£m
2023
£m
Fees payable to the Company's auditors for the audit of the
Company and Consolidated Financial Statements
2.4
2.2
Fees payable to the Company's auditors for other services
The audit of the Company's subsidiaries
1.7
1.8
Audit-related assurance services
0.1
0.1
Other non-audit services
–
0.2
6. Adjusting items
2024
£m
2023
£m
Recognised in arriving at operating profit from continuing operations
Intangibles amortisation (note 5)
(20.7)
(25.5)
Exceptional items
Acquisition and integration related costs
(0.1)
(0.7)
Performance Excellence programme
(35.7)
(28.8)
Russian operations wind down
0.3
7.7
Impairment of intangibles
(18.6)
–
Legal claims
(0.5)
–
Other restructuring and rationalisation activities
–
0.1
(54.6)
(21.7)
Other adjusting items
Asbestos-related provision
(5.8)
(43.2)
Total adjusting items
(81.1)
(90.4)
Recognised in arriving at operating loss from discontinued operations
Exceptional items
Finalisation of Oil & Gas related tax assessment
(2.9)
(1.3)
Total adjusting items (note 9)
(2.9)
(1.3)
Continuing operations
Intangibles amortisation
Intangibles amortisation of £20.7m (2023: £25.5m) relates to acquisition related assets.
Exceptional items
Exceptional items in the year include £0.1m of acquisition and integration related costs (2023:
£0.7m). These costs were cash settled during the year.
Exceptional items in the year include a charge of £35.7m (2023: £28.8m) in relation to the
Group’s ongoing Performance Excellence programme. This three-year programme aims to
transform the way we work with more agile and efficient business processes, focused on
customer and service-delivery. The programme, as outlined in the Chief Executive Officer's
Strategic report, includes capacity optimisation, lean processes and functional transformation
pillars. Costs of £20.5m have been recognised under the functional transformation pillar as
The Weir Group PLC Annual Report and Financial Statements 2024
183
Notes to the Group Financial Statements
continued
costs associated with establishing Weir Business Services. Also within Performance Excellence,
£15.2m has been recognised under the capacity optimisation and lean processes pillars for
costs associated with the consolidation and optimisation of Minerals manufacturing facilities,
service centres and distribution footprints together with simplification and automation of our
product design and configuration. This has resulted in an exceptional cash outflow in the year,
in respect of the Performance Excellence programme, of £27.9m.
Strategic Report
Governance
Financial Statements
Additional Information
During the year, an exceptional credit of £0.3m (2023: £7.7m) has been recognised in relation
to previously impaired receivables balances relating to the wind down of Russia operations in
2022. The prior year exceptional credit related to previously impaired receivables and
inventory balances from the wind down of Russia operations.
A decision was taken in the year to rebrand certain products within the Minerals Division and
this has resulted in the write down of the Trio brand name to nil. An exceptional impairment
loss of £18.6m has been recognised in the year (note 13).
Also included within exceptional items is £0.5m relating to legacy legal claims (2023: £nil).
Other adjusting items
A charge of £5.8m (2023: £43.2m) has been recorded primarily in respect of movements in the
US asbestos-related liability and associated insurance asset that relate to legacy products sold
by a US-based subsidiary of the Group. Further details of this are included in note 22.
Adjusting items tax credit
The adjusting items tax credit of £86.9m (2023: £20.1m) is explained in note 8.
Discontinued operations
Exceptional items
A charge of £2.9m (2023: £1.3m) has been recognised in the year in relation to the finalisation
of certain tax indemnities under the sale and purchase agreement for the Oil & Gas Division,
which was disposed of in 2021 (note 9).
7. Finance (costs) income
Finance costs
2024
£m
2023
£m
Interest payable on financial liabilities
(55.1)
(54.1)
Interest and finance charges payable on lease liabilities
(5.9)
(4.8)
Change in fair value of forward points in cross-currency swaps and
forward contracts
(0.3)
(0.1)
Finance charges related to committed loan facilities
(3.0)
(5.2)
Finance charges related to discounting of trade receivables
(0.4)
(0.7)
Other finance costs – retirement benefits
(1.2)
(1.5)
(65.9)
(66.4)
Finance income
2024
£m
2023
£m
Interest receivable on financial assets
20.7
16.1
Other finance income – retirement benefits
1.3
2.6
22.0
18.7
The Weir Group PLC Annual Report and Financial Statements 2024
184
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
8. Tax expense
Income tax (expense) credit from total operations
2024
£m
2023
£m
Consolidated Income Statement
Current income tax
UK corporation tax
–
3.9
Adjustments in respect of previous years
(1.4)
(1.3)
Total UK corporation tax
(1.4)
2.6
Foreign tax
(114.0)
(115.3)
Adjustments in respect of previous years
2.6
1.9
Total current income tax
(112.8)
(110.8)
Deferred income tax
Origination & reversal of temporary differences
12.7
21.1
Adjustment to estimated recoverable deferred tax assets
67.6
0.2
Effect of changes in tax rates
–
(4.1)
Adjustments in respect of previous years
0.8
2.8
Total deferred tax Note 1
81.1
20.0
Total income tax expense in the Consolidated Income Statement
(31.7)
(90.8)
Total income tax expense is attributable to:
Profit from continuing operations
31.7
90.8
31.7
90.8
Note 1. Includes £64.8m of a deferred tax credit relating to foreign tax (2023: £10.5m credit).
The total income tax expense is disclosed in the Consolidated Income Statement, as follows.
2024
£m
2023
£m
Tax (expense) credit
– adjusted results
(118.6)
(110.9)
– adjusting items
86.9
20.1
Continuing operations income tax expense in the Consolidated
Income Statement
(31.7)
(90.8)
Total income tax expense in the Consolidated Income Statement
(31.7)
(90.8)
The tax credit of £86.9m (2023: £20.1m) which has been recognised in adjusting items
includes £4.2m (2023: £5.6m) in respect of adjusting intangibles amortisation and impairment,
and a credit of £1.3m (2023: £10.1m) which primarily relates to the US asbestos-related
provision. The remaining £81.4m (2023: £4.4m) relates to exceptional and other adjusting
items and includes a credit of £68.5m relating to the recognition of US deferred tax assets that
were previously unrecognised and which relate to the disposal of Seaboard International LLC
as part of the Group's divestiture of its Oil & Gas Division in 2021.
The total deferred tax included in the income tax expense is detailed in note 23.
Tax relating to items (charged) credited to equity from continuing operations
2024
£m
2023
£m
Consolidated Statement of Comprehensive Income
Deferred tax – origination & reversal of temporary differences
(1.1)
7.5
Deferred tax – effect of change in tax rates
–
(0.4)
Tax (charge) credit on actuarial gains/losses on retirement
benefits
(1.1)
7.1
Tax (charge) credit on hedge losses
(0.4)
0.1
Tax (charge) credit in the Consolidated Statement of
Comprehensive Income
(1.5)
7.2
Consolidated Statement of Changes in Equity
Deferred tax on share-based payments
0.8
0.1
Tax credit in the Consolidated Statement of Changes in Equity
0.8
0.1
The Weir Group PLC Annual Report and Financial Statements 2024
185
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Reconciliation of the total tax charge from total operations
The tax charge (2023: charge) in the Consolidated Income Statement for the year is lower
(2023: higher) than the weighted average of standard rates of corporation tax across the
Group of 27.5% (2023: 28.1%). The differences are reconciled below.
2024
£m
2023
£m
Profit before tax from continuing operations
347.1
320.7
Loss before tax from discontinued operations
(2.9)
(1.3)
Profit before tax
344.2
319.4
At the weighted average of standard rates of corporation tax
across the Group of 27.5% (2023: 28.1%)
94.7
89.6
Adjustments in respect of previous years
– current tax
(1.2)
(0.6)
– deferred tax
(0.8)
(2.8)
Joint ventures
(0.5)
(0.6)
Movement in unrecognised deferred tax assets
(67.6)
(0.2)
Overseas tax on unremitted earnings
(0.5)
(1.2)
Income not taxable and expenses not deductible
5.6
5.6
Effect of changes in tax rates
–
4.1
Exceptional and other adjusting items ineligible for tax
2.0
(3.1)
At effective tax rate of 9.2% (2023: 28.5%)
31.7
90.8
Exceptional and other adjusting items ineligible for tax have increased from a reduction of
£3.1m in 2023 to an increase of £2.0m in 2024. This relates to the finalisation of certain tax
indemnities under the sale and purchase agreement for the Oil & Gas Division, which was
disposed of in 2021.
Credit arising from movement in unrecognised deferred tax assets increased from a credit of
£0.2m in 2023 to a credit of £67.6m in 2024. The 2024 movement relates to a debit for non-
recognition of losses in China with a tax value of £0.9m and a credit for recognition of losses in
the US which were previously unrecognised. The losses arose on the disposal of Seaboard
International as part of the Group's divestiture of its Oil & Gas Division in 2021, and have been
recognised in the period following the finalisation of the supporting US tax technical analysis.
The net impact of this recognition is a credit of £68.5m.
The Group’s provision for overseas tax on unremitted earnings increased from a reduction of
£1.2m in 2023 to a reduction of £0.5m in 2024.
Income not taxable and expenses not deductible have remained in line with the £5.6m
increase to tax in 2023. This includes irrecoverable withholding tax on dividends and royalties,
and Research and Development tax credits.
9. Discontinued operations
In the year ended 31 December 2024, a charge of £2.9m (2023: £1.3m) has been recognised
in relation to the finalisation of certain tax indemnities under the sale and purchase agreement
for the Oil & Gas Division, which was disposed of in 2021. Total current year investing cash
outflows from discontinued operations related to the charge in the period are £1.8m (2023:
£0.4m).
For full disclosure of the disposal of the Oil & Gas Division refer to note 8 of the Group's 2021
Annual Report and Financial Statements.
Loss per share
Loss per share from discontinued operations were as follows.
2024
pence
2023
pence
Basic
(1.1)
(0.5)
Diluted
(1.1)
(0.5)
The loss per share figures were derived by dividing the net loss attributable to equity holders
of the Company from discontinued operations by the weighted average number of ordinary
shares, for both basic and diluted amounts, shown in note 10.
The Weir Group PLC Annual Report and Financial Statements 2024
186
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
10. Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable
to equity holders of the Company by the weighted average number of ordinary shares in
issue after deducting the own shares held by employee share ownership trusts and treasury
shares. Diluted earnings per share is calculated by dividing the net profit attributable to equity
holders of the Company by the weighted average number of ordinary shares outstanding
during the year, adjusted for the effect of dilutive share awards.
The following reflects the earnings used in the calculation of earnings per share.
2024
£m
2023
£m
Profit attributable to equity holders of the Company
Total operations Note 1
312.2
227.9
Continuing operations Note 1
315.1
229.2
Continuing operations before adjusting items Note 1
309.3
299.5
The following reflects the share numbers used in the calculation of earnings per share, and the
difference between the weighted average share capital for the purposes of the basic and the
diluted earnings per share calculations.
2024
Shares
million
2023
Shares
million
Weighted average number of ordinary shares for basic earnings per
share
257.8
258.4
Effect of dilution: employee share awards
1.7
1.4
Adjusted weighted average number of ordinary shares for diluted
earnings per share
259.5
259.8
The profit attributable to equity holders of the Company used in the calculation of both basic
and diluted earnings per share from continuing operations before adjusting items is
calculated as follows.
2024
£m
2023
£m
Net profit attributable to equity holders from continuing
operations Note 1
315.1
229.2
Adjusting items net of tax
(5.8)
70.3
Net profit attributable to equity holders from continuing
operations before adjusting items
309.3
299.5
2024
pence
2023
pence
Basic earnings per share
Total operations Note 1
121.1
88.2
Continuing operations Note 1
122.2
88.7
Continuing operations before adjusting items Note 1
120.0
115.9
Diluted earnings per share
Total operations Note 1
120.3
87.7
Continuing operations Note 1
121.4
88.2
Continuing operations before adjusting items Note 1
119.2
115.3
Note 1. Adjusted for a profit of £0.3m (2023: £0.7m) in respect of non-controlling interests for total operations.
There have been 20,768 share awards (2023: nil) vested between the reporting date and the
date of signing of these financial statements. They were settled out of existing shares held in
trust.
Loss per share from discontinued operations is disclosed in note 9.
The Weir Group PLC Annual Report and Financial Statements 2024
187
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
11. Dividends paid & proposed
2024
£m
2023
£m
Declared & paid during the year
Equity dividends on ordinary shares
Final dividend for 2023: 20.8p (2022: 19.3p)
53.7
49.9
Interim dividend for 2024: 17.9p (2023: 17.8p)
46.1
46.0
99.8
95.9
Proposed for approval by Shareholders at the
Annual General Meeting
Final dividend for 2024: 22.1p (2023: 20.8p)
56.9
53.6
The current year dividend is in line with the capital allocation policy announced in our 2020
Annual Report and Financial Statements, under which the Group intends to distribute 33% of
adjusted earnings by way of dividend. As a result, dividend cover in 2024 is 3.0 times.
The proposed dividend is based on the number of shares in issue, excluding treasury shares
held, at the date that the financial statements were approved and authorised for issue. The
final dividend may differ due to increases or decreases in the number of shares in issue
between the date of approval of this Annual Report and Financial Statements and the record
date for the final dividend.
The Weir Group PLC Annual Report and Financial Statements 2024
188
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
189
Notes to the Group Financial Statements
continued
12. Property, plant & equipment
Property, plant & equipment comprises owned and right-of-use assets that do not meet the definition of investment property.
Owned land &
buildings
£m
Owned plant &
equipment
£m
Total owned
property, plant
& equipment
£m
Right-of-use
land &
buildings
£m
Right-of-use
plant &
equipment
£m
Total right-of-
use property,
plant &
equipment
£m
Total property,
plant &
equipment
£m
Cost
At 1 January 2023
146.2
577.2
723.4
164.2
33.7
197.9
921.3
Additions
3.1
83.6
86.7
25.8
7.5
33.3
120.0
Disposals
(0.9)
(15.9)
(16.8)
(7.8)
(4.2)
(12.0)
(28.8)
Reclassifications to inventory
–
(0.2)
(0.2)
–
–
–
(0.2)
Reclassifications
5.9
(5.9)
–
(0.1)
0.1
–
–
Reassessments and modifications
–
–
–
3.0
0.5
3.5
3.5
Inflation adjustment
–
2.0
2.0
–
–
–
2.0
Exchange adjustment
(8.1)
(36.1)
(44.2)
(7.7)
(1.7)
(9.4)
(53.6)
At 31 December 2023
146.2
604.7
750.9
177.4
35.9
213.3
964.2
Additions
5.1
66.9
72.0
28.8
5.9
34.7
106.7
Disposals
(2.2)
(35.9)
(38.1)
(13.5)
(5.1)
(18.6)
(56.7)
Reclassifications to intangible assets (note 13)
–
(0.1)
(0.1)
–
–
–
(0.1)
Reclassifications between owned plant & equipment and right-of-use assets
–
0.9
0.9
–
(0.9)
(0.9)
–
Reclassifications to inventory
–
0.2
0.2
–
–
–
0.2
Reclassifications
28.9
(28.9)
–
2.2
(2.2)
–
–
Reassessments and modifications
–
–
–
0.6
0.2
0.8
0.8
Inflation adjustment
–
1.3
1.3
–
–
–
1.3
Exchange adjustment
(3.8)
(19.7)
(23.5)
(6.5)
(1.3)
(7.8)
(31.3)
At 31 December 2024
174.2
589.4
763.6
189.0
32.5
221.5
985.1
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
190
Notes to the Group Financial Statements
continued
Owned land &
buildings
£m
Owned plant &
equipment
£m
Total owned
property, plant
& equipment
£m
Right-of-use
land &
buildings
£m
Right-of-use
plant &
equipment
£m
Total right-of-
use property,
plant &
equipment
£m
Total property,
plant &
equipment
£m
Accumulated depreciation & impairment
At 1 January 2023
42.5
325.2
367.7
73.3
18.1
91.4
459.1
Depreciation charge for the year
4.8
35.1
39.9
24.0
7.6
31.6
71.5
Impairment during the year
0.9
0.5
1.4
–
–
–
1.4
Disposals
(0.8)
(14.9)
(15.7)
(7.1)
(4.1)
(11.2)
(26.9)
Reclassifications
(0.1)
0.1
–
–
–
–
–
Reassessments and modifications
–
–
–
(2.3)
(0.3)
(2.6)
(2.6)
Inflation adjustment
–
1.6
1.6
–
–
–
1.6
Exchange adjustment
(2.7)
(23.2)
(25.9)
(3.7)
(0.8)
(4.5)
(30.4)
At 31 December 2023
44.6
324.4
369.0
84.2
20.5
104.7
473.7
Depreciation charge for the year
5.8
40.1
45.9
24.3
7.6
31.9
77.8
Impairment during the year
5.1
2.1
7.2
–
–
–
7.2
Disposals
(1.6)
(32.7)
(34.3)
(12.3)
(5.1)
(17.4)
(51.7)
Reclassifications between owned plant & equipment and right-of-use assets
–
0.9
0.9
–
(0.9)
(0.9)
–
Reclassifications
4.5
(4.5)
–
(0.5)
0.5
–
–
Reassessments and modifications
–
–
–
(3.9)
–
(3.9)
(3.9)
Inflation adjustment
–
1.1
1.1
–
–
–
1.1
Exchange adjustment
(1.3)
(12.0)
(13.3)
(3.4)
(0.9)
(4.3)
(17.6)
At 31 December 2024
57.1
319.4
376.5
88.4
21.7
110.1
486.6
Net book value at 31 December 2022
103.7
252.0
355.7
90.9
15.6
106.5
462.2
Net book value at 31 December 2023
101.6
280.3
381.9
93.2
15.4
108.6
490.5
Net book value at 31 December 2024
117.1
270.0
387.1
100.6
10.8
111.4
498.5
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
191
Notes to the Group Financial Statements
continued
Owned property, plant & equipment
In 2024, an impairment of £7.2m (2023: £1.4m) has been recognised in relation to the capacity
optimisation pillar of Performance Excellence. Impairment in the prior year relates to the
cessation of capital expenditure projects in the United States and Australia totalling £0.9m
and £0.5m respectively.
In 2024, the inflation adjustment recorded was to increase cost by £1.3m (2023: £2.0m) and
increase accumulated depreciation by £1.1m (2023: £1.6m). The inflation adjustments relate
to owned plant and equipment assets located in Argentina, within the Minerals Division.
Inflation adjustments were recorded in accordance with IAS 29 'Financial Reporting in
Hyperinflationary Economies'.
The carrying amount of assets under construction included in plant and equipment is £48.9m
(2023: £64.7m).
Right-of-use assets
The Group leases many assets, including buildings, vehicles, forklifts, photocopiers and
printers, machinery and IT equipment. Building lease terms are negotiated on an individual
basis and contain a wide range of terms from one to 20 years. The average lease term is
approximately five years. Plant and equipment lease terms range from one to 16 years, with
an average lease term of approximately four years. The current and non-current lease
liabilities are disclosed in notes 20 and 30 respectively. The maturity analysis of contractual
undiscounted cash flows is included in note 30. The following table shows the breakdown
of the lease expense between amounts charged to operating profit and amounts charged
to finance costs in the Consolidated Income Statement in the year.
2024
£m
2023
£m
Depreciation of right-of-use assets
(31.9)
(31.6)
Expenses relating to short-term leases
(10.9)
(11.3)
Expenses relating to leases of low value assets, excluding short-
term leases of low value
(1.9)
(2.3)
Income from sub-leasing right-of-use assets
0.3
0.4
Expenses relating to variable lease payments not included in the
measurement of lease liabilities
(1.2)
(1.3)
Charge to operating profit
(45.6)
(46.1)
Finance cost - interest expense related to lease liabilities
(5.9)
(4.8)
Charge to profit before tax from continuing operations
(51.5)
(50.9)
The total cash outflow in the year, which includes right-of-use cash flows and associated
finance costs, as well as cash flows for the above expenses, is £44.5m (2023: £50.7m). Future
cash outflows from leases not yet commenced to which the Group is committed total £56.0m
(2023: £32.8m).
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
192
Notes to the Group Financial Statements
continued
13. Intangible assets
Goodwill
£m
Brand names
£m
Customer &
distributor
relationships
£m
Purchased
software
£m
Intellectual
property &
trademarks
£m
Development
costs
£m
Other
£m
Total
£m
Cost
At 1 January 2023
881.5
289.1
193.4
98.5
136.2
49.7
75.0
1,723.4
Additions
–
–
–
6.7
–
0.9
–
7.6
Acquisitions (restated note 2)
6.0
–
–
0.7
–
–
–
6.7
Disposals
–
–
–
(0.8)
–
(0.7)
(0.4)
(1.9)
Inflation adjustment
–
–
–
0.1
–
–
–
0.1
Exchange adjustment
(44.9)
(14.9)
(10.1)
(5.2)
(6.4)
(0.4)
(4.1)
(86.0)
Restated at 31 December 2023
842.6
274.2
183.3
100.0
129.8
49.5
70.5
1,649.9
Additions
–
–
–
3.0
–
2.1
–
5.1
Disposals
–
–
–
(5.0)
(53.3)
(1.1)
(1.9)
(61.3)
Reclassifications from property, plant & equipment (note 12)
–
–
–
0.1
–
–
–
0.1
Reclassifications
–
–
(0.1)
0.1
–
–
–
–
Inflation adjustment
–
–
–
0.1
–
–
–
0.1
Exchange adjustment
(2.1)
4.6
1.3
(2.6)
(4.7)
(0.5)
1.2
(2.8)
At 31 December 2024
840.5
278.8
184.5
95.7
71.8
50.0
69.8
1,591.1
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
193
Notes to the Group Financial Statements
continued
Goodwill
Brand names
Customer &
distributor
relationships
Purchased
software
Intellectual
property &
trademarks
Development
costs
Other
Total
£m
£m
£m
£m
£m
£m
£m
£m
Accumulated amortisation & impairment
At 1 January 2023
3.4
0.3
90.9
60.3
79.1
40.7
38.8
313.5
Charge for the year
–
0.2
6.1
10.3
12.9
1.8
6.4
37.7
Disposals
–
–
–
(0.7)
–
(0.7)
(0.2)
(1.6)
Inflation adjustment
–
–
–
0.1
–
–
–
0.1
Exchange adjustment
(0.3)
–
(5.0)
(3.2)
(4.6)
(0.3)
(2.4)
(15.8)
At 31 December 2023
3.1
0.5
92.0
66.8
87.4
41.5
42.6
333.9
Charge for the year
–
0.2
5.5
10.6
8.8
1.4
6.2
32.7
Impairment during the year
–
18.6
–
–
–
–
–
18.6
Disposals
–
–
–
(4.9)
(53.3)
(1.1)
(1.9)
(61.2)
Reclassifications
–
–
(0.1)
0.1
–
–
–
–
Inflation adjustment
–
–
–
0.1
–
–
–
0.1
Exchange adjustment
0.1
0.4
(0.1)
(2.9)
(1.4)
(0.2)
0.8
(3.3)
At 31 December 2024
3.2
19.7
97.3
69.8
41.5
41.6
47.7
320.8
Net book value at 31 December 2022
878.1
288.8
102.5
38.2
57.1
9.0
36.2
1,409.9
Net book value at 31 December 2023 (restated note 2)
839.5
273.7
91.3
33.2
42.4
8.0
27.9
1,316.0
Net book value at 31 December 2024
837.3
259.1
87.2
25.9
30.3
8.4
22.1
1,270.3
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
194
Notes to the Group Financial Statements
continued
Acquisitions in the prior year of £6.7m relate to the acquisition of Sentiantechnologies AB
(SentianAI), which was acquired on 21 November 2023.
In 2024, the inflation adjustment recorded was to increase cost by £0.1m (2023: £0.1m) and
increase accumulated amortisation by £0.1m (2023: £0.1m). The inflation adjustments related
to purchased software assets located in Argentina, within the Minerals Division. Inflation
adjustments were recorded in accordance with IAS 29 'Financial Reporting in Hyperinflationary
Economies'.
The carrying amount of assets under construction included in intangible assets is £2.1m
(2023: £3.9m).
Brand names, with the exception of the Motion Metrics™ brand name, have been assigned
an indefinite useful life and as such are not amortised, but are tested annually for impairment,
as detailed in note 15. A decision was taken in the year to rebrand certain products within
the Minerals Division and this has resulted in the write down of the Trio brand name to £nil.
An exceptional impairment loss of £18.6m has been recognised in the year (note 6).
At 31 December 2024 the carrying value of brand names with an indefinite life was £256.6m
(2023: £270.8m). The Motion Metrics™ brand name has an expected useful life of 15 years
and is being amortised over this period.
Brand names includes ESCO™, Linatex® and Warman®, all of which are considered to be leaders
in their respective markets. The allocation of significant brand names is as follows.
Brand names
2024
£m
2023
£m
ESCO
136.2
133.6
Warman
66.3
65.0
Linatex
45.5
44.7
Trio
–
18.6
Other Note 1
11.1
11.8
259.1
273.7
Note 1. Included within 'Other' is the Motion Metrics® brand name, which has a carrying value of £2.5m at 31 December 2024 (2023:
£2.9m), and is being amortised over an expected remaining useful life of 12 years (2023: 13 years).
The allocation of customer and distributor relationships, and the amortisation period of these assets is as
follows.
Remaining amortisation
period
Customer & distributor
relationships
2024
Years
2023
Years
2024
£m
2023
£m
ESCO
21-24
22-25
84.6
87.0
Carriere Industrial Supply
12
13
2.3
2.6
Trio
–
1
–
0.8
Other
Up to 1
Up to 2
0.3
0.9
87.2
91.3
14. Business combinations
Prior year business combinations
Sentiantechnologies AB
On 21 November 2023, the Group completed the acquisition of 100% of the voting rights of
Sentiantechnologies AB (SentianAI) for an enterprise value of SEK87.3m (£6.7m). SentianAI is a
Swedish-based developer of innovative cloud-based Artificial Intelligence (AI) solutions for the
mining industry. The acquisition has joined the Minerals Division and SentianAI's technology will
integrate with Minerals' existing product lines, and expand the Division's digital capabilities.
Initial consideration of £6.1m was paid on completion, with a further deferred consideration of
£0.6m recognised, payable 15 months after the date of acquisition.
The provisional fair values of the opening balance sheet acquired were finalised in November
2024, following a review over a 12 month period since the date of acquisition as permitted by
IFRS 3 ‘Business combinations’. A £0.1m adjustment was made to intangible assets with a
reallocation between purchased software and goodwill. The final acquisition balance sheet
consisted of intangible assets £0.7m, trade & other receivables £0.2m, cash & cash equivalents
£0.2m, trade & other payables £0.2m and external debt £0.2m, with resulting goodwill arising
on consolidation of £6.0m.
Carriere Industrial Supply Limited
On 8 April 2022, the Group completed the acquisition of 100% of the voting rights of Carriere
Industrial Supply Limited (CIS) for an enterprise value of CAD$32.5m (£20.2m). Initial
consideration of £16.2m was paid on completion, with a further deferred consideration of
£2.5m recognised reflecting indemnification and working capital hold backs to be paid in
instalments. The Group settled the final tranche of this deferred consideration during 2024.
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Notes to the Group Financial Statements
continued
Contingent consideration
SentianAI
Included in the sale and purchase agreement of SentianAI, a maximum of an additional
SEK23.7m (£1.7m) is payable by the Group contingent on SentianAI exceeding specific
revenue and EBITDA margin targets over the next two years and meeting non-financial targets
by the end of 2026. The entry point for any contingent payment would require significant
growth in terms of revenue and EBITDA margin by 2026. While the Group expects SentianAI to
grow as it leverages the benefits of being partnered with Minerals, and the opportunities
within ESCO, the entry targets are considered challenging. At present, the probability of
SentianAI exceeding the revenue and EBITDA margin targets in order to trigger a contingent
payment is considered uncertain, in part due to the relative infancy of the business. As a result,
no contingent consideration has been recorded at the balance sheet date in both the current
and prior periods. This will be reassessed in future periods as the business develops.
Motion Metrics
The Group completed the acquisition of 100% of the voting rights of Motion Metrics on 30
November 2021. As part of the purchase agreement a maximum of an additional CAD$100.0m
(£55.5m) was payable by the Group contingent on Motion Metrics exceeding specific revenue
and EBITDA targets over the first three years following acquisition. The required targets were
not met and, as a result, no additional consideration has been paid.
15. Impairment testing of goodwill & intangible assets with indefinite lives
Goodwill acquired through business combinations and intangible assets with indefinite lives
have been allocated at acquisition to Cash Generating Units (CGUs) that are expected to
benefit from the business combination. The Group tests goodwill and intangible assets (brand
names) with indefinite lives annually for impairment, or more frequently if there are indications
that these might be impaired.
The carrying amounts of goodwill and intangible assets with indefinite lives have been
allocated as per the table below.
Goodwill
2024
£m
Intangibles
2024
£m
Goodwill
Restated
(note 2)
2023
£m
Intangibles
2023
£m
Minerals
371.4
120.4
377.8
137.2
ESCO
465.9
136.2
461.7
133.6
Total Group
837.3
256.6
839.5
270.8
Description of CGUs
A description of each of the CGUs is provided below, along with a summary of the key drivers
of revenue growth and operating profit margin.
Minerals
Minerals includes the Weir Warman and Weir Linatex brands. Weir Minerals companies supply
pumps and associated equipment and services to all global mining markets. The key drivers
for revenues are: (i) levels of mining capital expenditure that drives demand for original
equipment; and (ii) levels of actual mining activity that drives demand for spare parts and
service. Independent forecasts of mining capital expenditure and activity have been used to
derive revenue growth assumptions. These independent forecasts were prepared during the
final quarter of 2024.
The goodwill and intangible assets arising from the acquisition of Sentiantechnologies AB
(SentianAI) in the prior year have been included within the Minerals CGU. At 31 December
2024, the purchase price is considered to reflect the fair value of the assets and therefore
the addition to the Minerals CGU is considered to have a neutral impact on the
impairment analysis.
ESCO
ESCO includes the ESCO and Bucyrus Blades brands. This CGU is a supplier of Ground
Engaging Tools (GET) and associated equipment and services to the mining and infrastructure
industries. The key drivers for revenues are: (i) levels of mining and infrastructure capital
expenditure that drives demand for original equipment; and (ii) levels of actual mining and
infrastructure activity that drives demand for spare parts and service. Independent forecasts
of expenditure in these sectors have been used to derive revenue growth assumptions.
These independent forecasts were prepared during the final quarter of 2024.
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196
Notes to the Group Financial Statements
continued
Impairment testing assumptions
Impairment testing requires an estimate of the value in use of the CGUs to which the goodwill
and intangible assets are allocated. To estimate the value in use, the Group estimates the
expected future cash flows from the CGU and discounts them to their present value at a
determined discount rate, which is appropriate for the geographic location of the CGU.
Forecasting expected cash flows and selecting an appropriate discount rate inherently
requires estimation. The forecasts reflect latest strategic plans, for each of the CGUs, covering
a period of five years, with cash flows beyond five years extrapolated using an estimated
growth rate. The strategic plans incorporate initial plans for achieving the Group’s long-term
sustainability goals, which are described more fully in the Strategic report.
The basis of the impairment tests for the two CGUs, including key assumptions, are set out in
the table below.
CGU
Basis of
valuation
Period of
forecast
Discount rate Note 1 Real growth Note 2
Key
assumptions Note 3 Source
Minerals
Value in use 5 years
12.8%
(2023: 12.2%)
0.0%
(2023: 0.0%)
Revenue
growth/
Adjusted
operating
profit
margins
External
forecast
Historic
experience
ESCO
Value in use 5 years
13.2%
(2023: 13.7%)
0.0%
(2023: 0.0%)
Revenue
growth/
Adjusted
operating
profit
margins
External
forecast
Historic
experience
Note 1. Discount rate
The pre-tax nominal weighted average cost of capital (WACC) is the basis for the discount rate, with adjustments made for
geographic risk. The WACC is the weighted average of the pre-tax cost of debt financing and the pre-tax cost of equity finance.
The discount rate has increased in Minerals, due to changes in country mix with mining asset betas remaining stable, and ESCO
has decreased also due to changes in country mix.
Note 2. Real growth
For both CGUs the real growth beyond the five-year forecast period typically reflects external International Monetary Fund
(IMF) forecast growth rates for the countries in which the CGU operates. While short-term inflation rates have eased in the
last 12 months, for modelling purposes we have continued to restrict the real growth to 0.0% in both CGUs to compensate
for current volatility in rates. We do not believe this reflects our outlook on real growth given the global nature of these
businesses, the long-term growth prospects in their end-markets and the fact that they sell a significant proportion of their
products to emerging markets which also have strong long-term growth prospects.
Note 3. Adjusted operating profit margins
Adjusted operating profit margins have been forecast based on historic levels taking cognisance of the likely impact of
changing economic environments and competitive landscapes on volumes and revenues, and the impact of associated
management actions.
Impairment testing and sensitivity analysis
The Directors consider that the assumptions made represent their best estimate of the future
cash flows generated by the CGU, and that the discount rate used is appropriate given the
risks associated with the specific cash flows. The resulting value in use model for the Minerals
and ESCO CGUs show significant headroom above carrying value.
While cash flow projections are subject to inherent uncertainty, sensitivity analysis has been
performed for these CGUs, the results of which shows there is no reasonably possible change
in key assumptions that would cause the carrying value amounts to exceed recoverable
amounts. A 1% increase in the pre-tax discount rate and 1% decrease in growth rate for each
CGU, also indicated significant headroom on the carrying value of the assets.
Additionally, the Directors have considered scenarios consistent with meeting the Paris goals
of limiting the global temperature increase to well below 2°C, which the Directors consider to
be a reasonably possible outcome. In these scenarios, assumptions have been made over the
price and production volumes of certain commodities, that are key to end customers, with
several of these commodities being vital globally in achieving the Paris goals. Under the
scenarios considered by the Directors, there are no indicators of impairment in relation to
either CGU.
16. Investments in joint ventures
At the year end, the Group held an investment in one joint venture, ESCO Elecmetal
Fundición Limitada.
£m
At 1 January 2023
15.1
Share of results
2.5
Share of dividends
(4.1)
Exchange adjustment
(1.3)
At 31 December 2023
12.2
Share of results
1.9
Exchange adjustment
(1.3)
At 31 December 2024
12.8
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Notes to the Group Financial Statements
continued
The balance sheet of the Group's joint venture is detailed below.
2024
£m
Restated
(note 2)
2023
£m
Current assets
15.1
16.2
Non-current assets
25.3
29.2
Current liabilities
(6.9)
(8.8)
Non-current liabilities
(2.3)
(5.8)
Net assets
31.2
30.8
The revenue and profit of the Group's joint venture is included below.
2024
£m
Restated
(note 2)
2023
£m
Revenue
26.6
31.2
Cost of sales
(21.7)
(25.2)
Income tax expense
(1.0)
(1.2)
Interest
(0.1)
0.1
Profit after tax
3.8
5.0
The Group’s investment in the joint venture is included in the list of subsidiaries on pages 239
to 245.
17. Inventories
2024
£m
2023
£m
Raw materials
32.2
38.8
Work in progress
59.2
61.9
Finished goods
488.7
507.4
580.1
608.1
In 2024, the cost of inventories recognised as an expense within cost of sales amounted to
£1,485.2m (2023: £1,641.1m). In 2024, the write down of inventories to net realisable value
amounted to £10.9m (2023: £5.5m), of which £nil (2023: £2.0m) was recognised as an
exceptional item (note 6). The reversal of previous write downs amounted to £7.1m (2023:
£9.7m), of which £nil (2023: £7.2m) was recognised as an exceptional item (note 6).
18. Trade & other receivables
Other receivables presented as non-current on the face of the Consolidated Balance Sheet of £44.3m
(2023: £53.8m) are primarily in respect of insurance contracts and Trust Owned Life Insurance policy
investments of £42.7m (2023: £42.6m) that provide a form of security for certain unfunded employee
benefit plans operated by ESCO. There were no non-current other receivables for insurance
contracts relating to asbestos-related claims in the US for 2024 (2023: £5.4m).
Current trade and other receivables are analysed in the following table.
2024
£m
2023
£m
Trade receivables
416.4
412.5
Loss allowance
(13.3)
(12.9)
403.1
399.6
Other debtors
33.7
30.9
Sales tax receivable
29.3
31.5
Prepayments
45.4
33.2
Contract assets
35.2
31.0
546.7
526.2
The average credit period on sales of goods is 59 days (2023: 55 days) on a continuing basis.
Other debtors includes £0.3m (2023: £0.4m) in respect of amounts due from joint ventures,
and £4.1m (2023: £9.5m) in respect of insurance contracts relating to asbestos-related claims
(note 22).
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The Weir Group PLC Annual Report and Financial Statements 2024
198
Notes to the Group Financial Statements
continued
Impairment of trade & other receivables
The Group has two types of financial assets that are subject to the IFRS 9 'Financial instruments'
expected credit loss model:
– trade receivables for sales of products and services; and
– contract assets.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses, which
uses a lifetime expected loss allowance for all trade receivables and contract assets. To
measure the expected credit losses, trade receivables and contract assets have been
grouped based on shared credit risk characteristics.
The contract assets relate to unbilled work in progress and have substantially the same risk
characteristics as the trade receivables for the same types of contracts. Due to the way in
which these contracts are managed, expected credit loss if recognised is included within the
loss allowance for trade receivables.
Due to the diverse end-markets and customer geographies within the Group, the
methodology applied to arrive at the expected loss rate is dictated by local circumstances.
For short-term trade receivables, historical loss rates might be an appropriate basis for the
estimate of expected future losses. They are then adjusted to reflect current and forward-
looking information on macroeconomic factors affecting the ability of the customers to settle
the receivables. As such, one methodology applied is the use of a provision matrix, where
different loss rates are applied depending on the number of days that a trade receivable is
past due. Alternatively, the expected credit loss is calculated on an individual customer basis
based on historical loss data for that customer, their receivables ageing, and any other
knowledge of the customer’s current and forecast financial position.
Trade receivables and contract assets are written off when there is no reasonable expectation
of recovery.
Impairment losses on trade receivables and contract assets are presented as net impairment
losses within operating profit (note 5). Subsequent recoveries of amounts previously written
off are credited against the same line item.
The gross carrying amount of trade receivables, for which the loss allowance is measured at
an amount equal to the lifetime expected credit losses under the simplified method, is
analysed as follows.
Analysis of gross carrying amount of trade receivables by days past due
2024
£m
2023
£m
Not past due
304.5
282.2
Up to 3 months past due
61.7
75.5
Between 3 & 6 months past due
16.8
16.9
More than 6 months past due
33.4
37.9
416.4
412.5
Reconciliation of opening to closing loss allowance for trade receivables
2024
£m
2023
£m
Balance at the beginning of the year
(12.9)
(26.9)
Impairment losses recognised on receivables
(4.0)
(6.4)
Amounts written off as uncollectable
0.5
12.6
Amounts recovered during the year
0.2
4.0
Impairment losses reversed
2.8
3.0
Exchange adjustment
0.1
0.8
Balance at the end of the year
(13.3)
(12.9)
Amounts recovered during the year includes an amount of £0.3m (2023: £3.9m) recognised as
an exceptional item. There were no impairment losses recognised on receivables reported as
an exceptional item in 2024 (2023: £1.9m).
The Group has recognised the following assets in relation to contracts with customers.
2024
£m
2023
£m
Construction contract assets
6.0
6.8
Accrued income
29.2
24.2
Total contract assets
35.2
31.0
The decrease in construction contract assets relates to a combination of the mix of contracts,
and the timing of billing partially offset by new contracts entered into in 2024.
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199
Notes to the Group Financial Statements
continued
19. Cash & short-term deposits
2024
£m
2023
£m
Cash at bank & in hand
528.1
654.4
Short-term deposits
28.3
52.8
556.4
707.2
For the purposes of the Consolidated Cash Flow Statement, cash & cash equivalents
comprise the following:
Cash & short-term deposits
556.4
707.2
Bank overdrafts (note 20)
(29.5)
(259.8)
526.9
447.4
Cash at bank and in hand earns interest at floating-rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and three months,
depending on the immediate cash requirements of the Group and earns interest at the
respective short-term deposit rates.
The Group operates a notional cash pooling arrangement in which individual balances are not
offset for reporting purposes as the Group does not intend to settle on a net basis. Cash and
short-term deposits at 31 December 2024 includes £29.5m (2023: £256.0m) that is part of this
arrangement and both cash and interest-bearing loans and borrowings are grossed up by
this amount.
20. Interest-bearing loans & borrowings
2024
£m
2023
£m
Current
Bank overdrafts
29.5
259.8
Lease liabilities
25.7
26.4
55.2
286.2
Non-current
Bank loans Note 1
(2.1)
97.7
Fixed-rate notes
936.6
922.3
Lease liabilities
101.3
91.1
1,035.8
1,111.1
Note 1. 2024 balance relates to unamortised issue costs.
The Group operates a notional cash pooling arrangement in which individual balances are not
offset for reporting purposes as the Group does not intend to settle on a net basis. Cash and
short-term deposits at 31 December 2024 includes £29.5m (2023: £256.0m) that is part of this
arrangement and both cash and interest-bearing loans and borrowings are grossed up by
this amount.
Bank loans
Weighted average interest rate
Maturity Interest basis
2024
%
2023
%
2024
£m
2023
£m
Sterling floating-rate
revolving credit facility
2029
£ SONIA
–
5.84
(2.1)
97.7
Non-current bank loans
(2.1)
97.7
The weighted average interest rates include an applicable margin over and above the interest
basis.
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Notes to the Group Financial Statements
continued
Fixed-rate notes
Fixed interest rate
Maturity Interest basis
2024
%
2023
%
2024
£m
2023
£m
United States Dollar
Sustainability-Linked
Notes
2026
FIXED
2.20
2.20
637.6
624.4
Sterling Sustainability-
Linked Notes
2028
FIXED
6.88
6.88
298.4
297.9
Other loans
2027
FIXED
5.00
–
0.6
–
Non-current fixed-rate notes
936.6
922.3
The disclosures above represent the interest profile and currency profile of financial liabilities before
the impact of derivative financial instruments.
The Group utilises a number of sources of funding including Sustainability-Linked Notes, revolving
credit facility, term loan and uncommitted facilities.
In June 2023, the Group completed the issue of £300m five-year Sustainability-Linked Notes due to
mature in June 2028. The notes include a Sustainability Performance Target (SPT) to reduce scope
1&2 CO subscript 2 emissions by 19.1% in absolute terms by 2026 from a 2019 baseline, consistent with the
Group’s SBTi approved target of 30% reduction by the end of 2030. The notes will initially bear
interest at a rate of 6.875% per annum to be paid annually in June. The interest on the notes will be
linked to achievement of the SPT with an interest rate increase of 0.75% to 7.625% per annum for the
last interest payment due on 14 June 2028 if the Group does not attain its SPT. These notes are in
addition to the US$800m Sustainability-Linked Notes drawn in May 2021, due to mature in May 2026,
which bear interest at a rate of 2.20% per annum.
In June 2023, the Group reduced its US$1bn commercial paper programme to US$800m and
subsequently in November 2024, the Group chose to withdraw from the programme.
In February 2024, the Group chose to reduce its US$800m multi-currency revolving credit facility
(RCF) by US$200m.
Subsequently, in March 2024, the Group exercised the option to extend its US$600m multi-currency
RCF by one year which will now mature in April 2029.
At 31 December 2024, £nil (2023: £97.7m) was drawn under the US$600m multi-currency RCF,
which is disclosed net of unamortised issue costs of £2.1m (2023: £2.3m).
At 31 December 2024, a total of £936.0m (2023: £922.3m) was outstanding under Sustainability-
Linked Notes, which is disclosed net of unamortised issue costs of £3.0m (2023: £4.5m).
21. Trade & other payables
2024
£m
2023
£m
Current
Trade payables
242.1
260.1
Other creditors
8.2
9.8
Other taxes & social security costs
6.2
11.4
Accruals
226.3
187.7
Deferred consideration payable
0.6
1.0
Contract liabilities
135.3
111.3
618.7
581.3
Non-current
Deferred consideration payable
–
0.6
–
0.6
Liabilities under supplier finance arrangements
Trade payables includes balances due to suppliers that have signed up to a supply chain
financing programme, under which all invoices are settled via a partner bank. Supplier finance
arrangements are characterised by one or more finance providers offering to pay amounts
that an entity owes its suppliers and the entity agreeing to pay according to the terms and
conditions of the arrangements at the same date, or a date later than, when suppliers are paid.
These arrangements provide the entity with extended payment terms, or the suppliers with
early payment terms, compared to the related invoice payment due date. The value of the
liability payable by the Group remains unchanged.
Range of payment due dates
2024
Liabilities under supplier finance arrangements
90–120 days after invoice
date
Comparable trade payables that are not part of the supplier finance
arrangements (same line of business)
0–90 days after invoice
date
Carrying amount of liabilities under supplier finance arrangement
£m
Liabilities under supplier finance arrangement
99.6
Of which the supplier has received payment from the finance
provider
34.0
There were no material business combinations or foreign exchange differences that would
affect the liabilities under supplier finance arrangements in the period. There were no non
cash transfers from trade payables to liabilities under the supplier finance arrangements.
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201
Notes to the Group Financial Statements
continued
The carrying amounts of liabilities under the supplier finance arrangement are considered to
be reasonable approximations of their fair values, due to their short-term nature.
The Group assesses the arrangement against indicators to assess if debts, which vendors
have sold to the partner bank under the supplier financing scheme, continue to meet the
definition of trade payables or should be classified as borrowings. At 31 December 2024 and
31 December 2023, the payables met the criteria of trade payables and the arrangement had
no impact on the results or the financial position of the Group. The Group presents the cash
outflows to settle the liabilities under supplier finance arrangements as arising from operating
activities in the statement of cash flows.
The Group has recognised the following liabilities in relation to contracts with customers.
2024
£m
2023
£m
Construction contract liabilities
14.8
10.7
Deferred income
120.5
100.6
Total contract liabilities
135.3
111.3
The increase in contract liabilities in the year relates to changes in the mix of contracts and
percentage of completion status of individual projects, together with a general increase in
project activity.
Revenue recognised in relation to contract liabilities
The following table shows the revenue recognised in the current reporting period related to
carried forward contract liabilities.
2024
£m
2023
£m
Revenue recognised that was included in the contract liability
balance at the beginning of the year
68.9
36.0
Transaction price allocated to unsatisfied performance obligations
The transaction price allocated to performance obligations unsatisfied at the year end is £100.5m
(2023: £106.9m). This relates only to performance obligations from contracts with a duration of over
a year as permitted by the practical expedient in paragraph 121 of IFRS 15 'Revenue from contracts
with customers'.
The following table shows when revenue is expected to be recognised for unsatisfied
performance obligations from contracts with a duration of over one year.
2024
£m
2023
£m
Less than one year
66.8
75.9
After one year, but not more than five years
3.4
5.0
After five years
30.3
26.0
Total value of performance obligations unsatisfied from contracts
with a duration over one year
100.5
106.9
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202
Notes to the Group Financial Statements
continued
22. Provisions
Warranties
& contract
claims
£m
Asbestos-
related
£m
Employee-
related
£m
Exceptional
items
£m
Other
£m
Total
£m
At 1 January 2024
9.6
78.7
12.1
15.7
12.2
128.3
Additions
8.2
4.1
18.0
30.6
2.8
63.7
Utilised
(4.9)
(11.2)
(13.7)
(28.4)
(3.2)
(61.4)
Unutilised
(1.2)
(1.3)
–
(1.4)
–
(3.9)
Exchange adjustment
(0.4)
1.3
(1.1)
(0.5)
–
(0.7)
At 31 December 2024
11.3
71.6
15.3
16.0
11.8
126.0
Current 2024
11.3
9.8
9.4
16.0
1.8
48.3
Non-current 2024
–
61.8
5.9
–
10.0
77.7
At 31 December 2024
11.3
71.6
15.3
16.0
11.8
126.0
Current 2023
9.6
11.2
8.4
15.7
2.7
47.6
Non-current 2023
–
67.5
3.7
–
9.5
80.7
At 31 December 2023
9.6
78.7
12.1
15.7
12.2
128.3
The impact of discounting is only material for the asbestos-related category of provision, with
higher discount rates at 31 December 2024, resulting in a £1.0m reduction in the provision,
which is reflected as unutilised above.
Warranties & contract claims
Provision has been made in respect of actual warranty claims on goods sold and services
provided, and allowance has been made for potential warranty claims based on past
experience for goods and services sold with a warranty guarantee. At 31 December 2024, the
warranties portion of the provision totalled £8.6m (2023: £7.2m). At 31 December 2024, all of
these costs relate to claims that fall due within one year of the balance sheet date.
Provision has been made in respect of sales contracts entered into for the sale of goods in the
normal course of business where the unavoidable costs of meeting the obligations under the
contracts exceed the economic benefits expected to be received from the contracts and
before allowing for future expected aftermarket revenue streams. Provision is made
immediately when it becomes apparent that expected costs will exceed the expected benefits
of the contract. At 31 December 2024, the contract claims element, which includes onerous
provision, was £2.7m (2023: £2.4m), all of which is expected to be incurred within one year of
the balance sheet date.
Asbestos-related claims
2024
£m
2023
£m
US asbestos-related provision – pre-1981 date of first exposure
61.3
67.4
US asbestos-related provision – post-1981 date of first exposure
8.6
8.8
US asbestos-related provision – total
69.9
76.2
UK asbestos-related provision
1.7
2.5
Total asbestos-related provision
71.6
78.7
US asbestos-related provision
A US-based subsidiary of the Group is co-defendant in lawsuits pending in the US in which
plaintiffs are claiming damages arising from alleged exposure to products previously
manufactured that contained asbestos. The dates of alleged exposure currently range from
the 1950s to the 1990s.
The Group has historically held comprehensive insurance cover for cases of this nature and its
subsidiary continues to do so for claims with a date of first exposure (dofe) pre-1981. The
expiration of one of the Group’s insurance policies in 2019 resulted in no further insurance
cover for claims with a post-1981 dofe. All claims are directly administered by National
Coordinating Counsel on behalf of the insurers who also meet associated defence costs. The
insurers, their legal advisers and in-house counsel agree and execute the defence strategy
between them.
A summary of the US subsidiary's asbestos-related claim activity is shown in the table below.
Number of open claims
2024
Number
2023
Number
Opening
1,788
1,716
New
828
664
Dismissed
(335)
(362)
Settled
(228)
(230)
Closing
2,053
1,788
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
203
Notes to the Group Financial Statements
continued
A review of the US subsidiary's expected liability for US asbestos-related diseases and the
adequacy of the insurance policies to meet future settlement and defence costs was
completed in conjunction with external advisers in 2023 as part of a planned triennial actuarial
review. This review was based on an industry standard epidemiological decay model, and the
subsidiary's claims settlement history. Consistent with recent claims experience, the 2023
review reflected a higher level of claims, particularly relating to the 1970s and 1980s.
The actuarial model incorporates claims, with a dofe pre- and post-1981, primarily relating to
Lung Cancer and Mesothelioma and includes estimates relating to:
– the number of future claims received through to 2064;
– settlement rates by disease type;
– mean settlement values by disease type;
– ratio of defence costs to indemnity value; and
– the profile of associated cash flows through to 2068.
The actuarial model in 2023 provided a range of potential liability based on levels of
probability from 10% to 90%, which, on an undiscounted basis, equates to £89m–£195m. The
mean actuarial estimate of £142m represents the expected undiscounted value over the
range of reasonably possible outcomes. The provision in the financial statements is based on
the mean actuarial estimate, which is then adjusted each year to reflect expected settlements
in the model, discounting and restricting the timescale over which a liability can be reliably
measured to ten years plus cash flows over a further six years.
2024
2023
Period of future claims provided
10 Years
10 Years
Discount rate
5.3 %
4.7 %
The period over which the provision can be reliably estimated is judged to be ten years, plus
cash flows for a further six years, due to the inherent uncertainty, resulting from the changing
nature of the US litigation environment detailed below, and cognisant of the broad range of
probability levels included within the actuarial model. While claims may extend past ten years
and may result in a further outflow of economic benefits, the Directors do not believe any
obligation that may arise beyond ten years can be reliably measured at this time. The effect of
extending the claims period by a further ten years is included in the sensitivities below. The
discount rate is set based on the corporate bond yield available at the balance sheet date
denominated in the same currency, and with a term broadly consistent to that of the liabilities
being provided for, with sensitivities to the discount rate also included below.
In 2023, confirmation was also received from external advisers of the insurance asset available,
which includes the estimated defence costs that would be met by the insurer. An update to
the insurance asset is obtained annually and totals £4.1m at 31 December 2024 (2023:
£14.9m). Based on the profile of the claims in the actuarial model, external advisers expect the
insurance cover and associated limits currently in place to become fully exhausted in the first
half of 2025. No cash flows to or from the US subsidiary, related to claims with an exposure
date pre-1981, are expected until the exhaustion of the insurance asset. Claims with an
exposure date post-1981 are estimated to incur cash outflows of less than £0.8m per annum
and are not insured currently or in the future.
The table below represents the Directors’ best estimate of the future liability and
corresponding insurance asset.
US asbestos-related provision
2024
£m
2023
£m
Gross provision
96.8
101.5
Effect of discounting
(26.9)
(25.3)
Discounted US asbestos-related provision
69.9
76.2
Insurance asset
4.1
14.9
Net US asbestos-related liability
65.8
61.3
The net provision and insurance asset are presented in the financial statements as follows.
2024
£m
2023
£m
Provisions – current
9.3
10.3
Provisions – non-current
60.6
65.9
Trade & other receivables
4.1
9.5
Non-current other receivables
–
5.4
There remains inherent uncertainty associated with estimating future costs in respect of
asbestos-related diseases. Actuarial estimates of future indemnity and defence costs
associated with asbestos-related diseases are subject to significantly greater uncertainty than
actuarial estimates for other types of exposures. This uncertainty results from factors that are
unique to the asbestos claims litigation and settlement process including but not limited to:
– the possibility of future state or federal legislation applying to claims for asbestos-related
diseases;
– the ability of the plaintiff’s bar to develop and sustain new legal theory and/or develop new
populations of claimants;
– changes in focus of the plaintiff’s bar;
– changes in defence strategy; and
– changes in the financial condition of other co-defendants in suits naming the US subsidiary.
As a result, there can be no guarantee that the assumptions used to estimate the provision will
result in an accurate prediction of the actual costs that may be incurred.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
204
Notes to the Group Financial Statements
continued
Since the previous triennial update completed in 2023, the US subsidiary has experienced a
higher number of claims received than modelled across both disease types. Historic
settlement rates are lower than modelled. Settlements largely occur within four years of a
claim being received. Average settlement values have been lower than modelled in 2024 for
both Mesothelioma and Lung Cancer cases.
As noted above, there are a number of uncertain factors involved in the estimation of the
provision and variations in case numbers and settlements are to be expected from period-to-
period. The trends witnessed in our recent claims experience have been reflected in the 2023
triennial actuarial review and provided the basis for the provision recognised at 31 December
2024.
Uncertainty regarding the timing and extent of variations year to year and whether they are
short or long-term in nature, mean it is not considered possible to provide reasonably
probable scenarios. The impact on the provision of incremental changes in key assumptions is
provided below for guidance.
Estimated impact on the discounted US asbestos-related provision of:
2024
£m
Increasing the number of projected future settled claims by 20%
13.1
Increasing the estimated settlement value by 10%
6.6
Increasing the basis of provision by ten years
8.3
Decreasing the discount rate by 50bps
2.0
Application of these sensitivities, on an individual basis, would not lead to a material change in
the provision.
The Group’s US subsidiary has been effective in managing the asbestos litigation, in part,
because it has access to historical project documents and other business records going back
more than 50 years, allowing it to defend itself by determining if legacy products were present
at the location of the alleged asbestos exposure and, if so, the timing and extent of their
presence. In addition, the US subsidiary has consistently and vigorously defended claims that
are without merit.
UK asbestos-related provision
In the UK, there are outstanding asbestos-related claims that are not the subject of insurance
cover. The extent of the UK asbestos exposure involves a series of legacy employer’s liability
claims that all relate to former UK operations and employment periods in the 1950s to 1970s.
In 1989, the Group’s employer’s liability insurer (Chester Street Employers Association Ltd) was
placed into run-off, which effectively generated an uninsured liability exposure for all future
long-tail disease claims with an exposure period pre-dating 1 January 1972. All claims with a
disease exposure post 1 January 1972 are fully compensated via the government-established
Financial Services Compensation Scheme. Any settlement to a former employee whose
service period straddles 1972 is calculated on a pro rata basis. The Group provides for these
claims based on management’s best estimate of the likely costs given past experience of the
volume and cost of similar claims brought against the Group.
The UK provision was reviewed and adjusted accordingly for claims experience in the year,
resulting in a provision of £1.7m (2023: £2.5m).
Employee-related
Employee-related provisions arise from legal obligations in a number of territories in which the
Group operates, the majority of which relate to compensation associated with periods of
service. A large proportion of the provision is for long service leave. The outflow is generally
dependent upon the timing of employees’ period of leave with the calculation of the majority
of the provision being based on criteria determined by the various jurisdictions.
Exceptional items
The exceptional items provision relates to certain exceptional charges included within note 6
where the cost is based on a reliable estimate of the obligation.
The opening balance of £15.7m includes £1.3m related to Russia, and £14.2m in relation to the
Performance Excellence programme, of which £7.1m relates to capacity optimisation costs
and £7.1m relates to functional transformation. Also included in the opening balance are
smaller balances of £0.2m.
Additions in the year of £30.6m includes £30.0m in relation to the Performance Excellence
programme. The remaining additions of £0.6m include amounts relating to legacy legal costs
and acquisition and integration costs. Performance Excellence costs of £27.9m have been
settled in the year.
The closing balance of £16.0m includes £14.4m in relation to the Performance Excellence
programme, of which £8.3m relates to capacity optimisation and lean processes costs and
£6.1m to functional transformation. Also included in the closing balance are £1.1m relating to
Russia and £0.5m of smaller balances mainly relating to legacy legal claims.
Other
Other provisions include environmental obligations, penalties, duties due, legal claims and
other exposures across the Group. These balances typically include estimates based on
multiple sources of information and reports from third-party advisers. The timing of outflows is
difficult to predict as many of them will ultimately rely on legal resolutions and the expected
conclusion is based on information currently available. Where certain outcomes are unknown,
a range of possible scenarios is calculated, with the most likely being reflected in the provision.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
205
Notes to the Group Financial Statements
continued
23. Deferred tax
2024
£m
2023
£m
Deferred income tax assets
Post-employment benefits
10.1
10.6
Decelerated depreciation for tax purposes
19.2
16.7
Intangible assets
12.1
13.9
Untaxed reserves
246.1
180.6
Offset against liabilities
(94.8)
(110.5)
Deferred income tax assets
192.7
111.3
Deferred income tax liabilities
Accelerated depreciation for tax purposes
(19.6)
(18.3)
Overseas tax on unremitted earnings
(2.6)
(3.3)
Intangible assets
(104.3)
(117.8)
Other temporary differences
(3.4)
(6.5)
Post-employment benefits
(12.7)
(11.5)
Offset against assets
94.8
110.5
Deferred income tax liabilities
(47.8)
(46.9)
Net deferred income tax asset
144.9
64.4
The movement in deferred income tax assets and liabilities during the year was as follows.
Post-
employment
benefits
£m
Accelerated
depreciation
for tax
purposes
£m
Overseas
tax on
unremitted
earnings
£m
Intangible
assets
£m
Untaxed
reserves, tax
losses & other
temporary
differences
£m
Total
£m
At 1 January 2023
(4.2)
(4.9)
(6.7)
(137.5)
194.4
41.1
Income Statement
(note 8)
(3.4)
3.2
2.9
27.9
(10.6)
20.0
Credited to equity
(note 8)
7.1
–
–
–
0.1
7.2
Exchange adjustment
(0.4)
0.1
0.5
5.7
(9.8)
(3.9)
At 31 December 2023
(0.9)
(1.6)
(3.3)
(103.9)
174.1
64.4
Income Statement
(note 8)
(0.7)
1.2
0.5
11.8
68.3
81.1
(Charged) credited
to equity (note 8)
(1.1)
–
–
–
0.8
(0.3)
Exchange adjustment
0.1
–
0.2
(0.1)
(0.5)
(0.3)
At 31 December 2024
(2.6)
(0.4)
(2.6)
(92.2)
242.7
144.9
Untaxed reserves primarily relate to accruals and provisions for liabilities where the tax
allowance is deferred until the cash expense occurs, and to temporarily disallowable
inventory/receivable provisions. Included in this balance is a deferred tax asset in relation to
tax losses of £78.6m (2023: £22.7m). This includes £53.2m (2023: £1.8m) relating to US Federal
and State tax losses and £20.2m (2023: £9.7m) relating to UK tax losses. The increase in the US
Federal and State tax losses relates to losses arising on the disposal of Seaboard International
as part of the Group's divestiture of its Oil & Gas Division in 2021. These losses have not been
recognised in previous periods while the group sought to gather the necessary historic data
to support the claim and associated tax technical analysis. Recognition in 2024 was
determined as appropriate on the basis of concluding the underlying US tax analysis and
supporting modelling of US taxable profits. A critical judgement in finalising the tax technical
analysis was the conclusion that the available historical tax data required for the analysis was
sufficient, and that the absence of further historical data which, having exhausted all
reasonable avenues to obtain it, remains unavailable for certain periods prior to the Group’s
ownership of Seaboard would not impact adversely on the validity of the claim. Accordingly,
the technical analysis was concluded on a more likely than not basis and the associated DTA
attributes were recognised. The increase in UK tax losses relates to prior period adjustments
and further losses generated in the current year.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
206
Notes to the Group Financial Statements
continued
Deferred tax assets of £20.2m (2023: £3.2m) have been recognised in respect of entities which
have suffered a tax loss in either the current or preceding period. Deferred tax assets have
been recognised in these territories on the basis of forecast future profitability. Of the
recognised deferred tax assets, £42.9m (2023: £nil) of US net operating losses have no time
expiry, £3.8m (2023: £19.4m) of US foreign tax credits have a ten-year time expiry with the
earliest expiration date being 2027, £10.4m (2023: £10.6m) of US research and development
tax credits have a 20-year time expiry with the earliest expiration date being 2038, and £10.2m
(2023: £2.8m) of US State attributes have varying expiries, between 2025 and 2040.
Deferred tax assets of £43.5m (2023: £37.6m) have been recognised in relation to deferred
deductions for intra-group interest in the US group.
Deferred tax asset balances for unused tax losses of £31.3m (2023: £22.9m) have not been
recognised on the grounds that there is insufficient evidence that these assets will be
recoverable. Composition of these unrecognised assets as at 31 December 2024 are set out
below.
Unrecognised tax attributes
2024
Gross
closing
balance
£m
2024
Net closing
balance
£m
2023
Net closing
balance
£m
Jurisdiction
Africa
0.9
0.2
0.2
Australia
1.6
0.5
0.5
Chile
2.1
0.6
0.6
China
26.0
6.5
8.3
Malaysia
1.2
0.3
0.3
Sweden
2.4
0.5
0.6
United Kingdom
2.4
0.6
0.6
United States
97.0
20.4
10.1
Other
7.4
1.7
1.7
Total
141.0
31.3
22.9
Deferred tax asset balances for capital losses amounting to £1.7m (2023: £1.7m) have not
been recognised, but would be available in the event of future taxable capital gains being
incurred by the Group. Composition of these unrecognised capital losses as at 31 December
2024 are set out in the following table.
Unrecognised capital losses
2024
Gross
closing
balance
£m
2024
Net closing
balance
£m
2023
Net closing
balance
£m
Jurisdiction
Australia
4.8
1.4
1.4
United Kingdom
1.2
0.3
0.3
Total
6.0
1.7
1.7
Unrecognised assets will be recovered when future tax charges are sufficient to absorb these
tax benefits.
The net deferred tax asset due after more than one year is £144.9m (2023: £64.4m).
Pillar Two
The Group has adopted the amendments to IAS 12 'Income taxes' for the first time in the current
year. The IASB amends the scope of IAS 12 to clarify that the Standard applies to income taxes
arising from tax law enacted or substantively enacted to implement the Pillar Two model rules
published by the OECD, including tax law that implements qualified domestic minimum top-up
taxes described in those rules.
The amendments introduce a temporary exception to the accounting requirements for
deferred taxes in IAS 12, so that an entity would neither recognise nor disclose information
about deferred tax assets and liabilities related to Pillar Two income taxes. Following the
amendments, the Group is required to disclose that it has applied the exception and to
disclose separately its current tax expense (income) related to Pillar Two income taxes. The
Group has applied the temporary exception issued by the IASB in May 2023 from the
accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither
recognises nor discloses information about deferred tax assets and liabilities related to Pillar
Two income taxes.
On 20 June 2023, the government of the United Kingdom, where The Weir Group PLC is
incorporated, substantively enacted the Pillar Two income taxes legislation effective from 1
January 2024. Under the legislation, the parent company will be required to pay, in the United
Kingdom, top-up tax on profits of its subsidiaries that are taxed at an effective tax rate of less
than 15%. The Weir Group PLC falls within the scope of Pillar Two legislation, therefore, these
rules applied to the Group from 1 January 2024.
During the year, the Group has analysed its eligibility for the Transitional Country By Country
Reporting Safe Harbours on a jurisdiction by jurisdiction basis, using 2024 data. Based on the
outcome of this analysis, the Group considers the main jurisdiction for which a higher risk of
exposure to Pillar Two may exist is the United States. The Group, therefore, conducted a more
in depth analysis of the application of Pillar Two to the United States, with a particular focus on
the available substance-based concessions, and have concluded that for this specific
jurisdiction, and the wider global group, we do not anticipate that a material Pillar Two top-up
tax is likely to arise in respect of the period ending 31 December 2024, and therefore, no
impact has been incorporated in the tax provision for the year. The Group is aware that the
rules and guidance in relation to Pillar Two continue to evolve and we are working alongside
tax specialists in order to continually assess the impact of the Pillar Two income taxes
legislation on future financial performance. As a result of this changing landscape, there is a
possibility that top-up taxes may arise at some point in the future.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
207
Notes to the Group Financial Statements
continued
Temporary differences associated with Group investments
A deferred tax liability of £4.1m (2023: £4.6m) has been recognised in respect of taxes on the
unremitted earnings of the South American subsidiaries. As at 31 December 2024, this is the
only recognised deferred tax liability in respect of taxes on unremitted earnings, as the Group
does not foresee a distribution of unremitted earnings from other subsidiaries or joint
ventures which would result in a reversal of deferred tax. The temporary differences associated
with investments in subsidiaries and joint ventures, for which a deferred tax liability has not
been recognised, aggregate to £2,649.5m (2023: £2,608.9m).
There are no income tax consequences attaching to the payment of dividends by the
Company to its shareholders.
UK corporation tax rate changes
An increase in the UK rate from 19% to 25% from April 2023 was substantively enacted as part
of Finance Bill 2021 (on 25 May 2021). As a result, at 31 December 2024, deferred tax balances
have been calculated at 25%.
24. Pensions & other post-employment benefit plans
The Group operates various defined benefit pension plans in the UK and North America. All
defined benefit plans are closed to new members. The most significant defined benefit plan is
the Main funded UK plan.
UK plans
At the balance sheet date, the Group has a funded defined benefit plan - the Main Plan and an
unfunded retirement benefit plan for retired Executive Directors. The Group also operates a
defined contribution plan, the contributions to which are in addition to those set out below,
and are charged directly to the Consolidated Income Statement.
For the defined benefit plans, benefits are related to service and final salary. The Main Plan
closed to future accrual of benefits effective from 30 June 2015.
The weighted average duration of the expected benefit payments from the Main Plan is
around 11 years.
The current funding target for the Main UK Plan is to maintain assets equal to the value of the
accrued benefits. The Main Plan holds three insurance policies which match the liabilities in
respect of a significant proportion of deferred and retired pensioners.
The regulatory framework in the UK requires the pension scheme Trustees and Group to agree
upon the assumptions underlying the funding target, and then to agree upon the necessary
contributions required to recover any deficit at the valuation date. There is a risk to the Group
that adverse experience against these assumptions could lead to a requirement for the Group
to make considerable contributions to recover any deficit. This risk is significantly reduced
through the insurance policies held.
North American plans
The Group also sponsors funded defined benefit pension plans in the US and Canada, and
certain unfunded arrangements (including post-employment healthcare benefits for senior
employees) in the US.
These plans combined make up 22% of the Group’s pension and other post-employment
benefit plan commitments and 18% of the Group’s total associated assets.
The weighted average duration of these plans is around eight years.
Plan risks
The defined benefit plans in the UK and North America expose the Group to a number of risks.
Uncertainty in benefit payments
The value of the Group's liabilities for the defined benefit plans will ultimately depend on the
amount of benefits paid out. This in turn will depend on the level of inflation (for those benefits
that are subject to some form of inflation protection) and how long individuals live. This risk is
significantly reduced through the insurance policies held in the UK.
Volatility in asset values
The Group is exposed to future movements in the values of assets held in the funded defined
benefit plans to meet future uninsured benefit payments.
Uncertainty in cash funding
Movements in the values of the obligations or assets may result in the Group being required
to provide higher levels of cash funding, although changes in the level of cash required can
often be spread over a number of years. This risk is significantly reduced through the
insurance policies held. In addition, the Group is also exposed to adverse changes in pension
regulation.
Exchange rate movements
Movements in exchange rates will affect the value in GBP of the assets and obligations of the
Group’s North American defined benefit plans.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
208
Notes to the Group Financial Statements
continued
Assumptions
The significant actuarial assumptions used for accounting purposes reflect prevailing market
conditions in the UK and North America and are as follows.
UK pensions
North American
pensions & post-
retirement healthcare
2024
2023
2024
2023
Significant actuarial assumptions:
Discount rate (% pa)
5.45
4.50
5.20
4.70
Retail Prices Inflation (RPI) assumption (% pa)
3.20
3.10
n/a
n/a
Post-retirement mortality (life expectancies in
years):
Current pensioners at 65 – male
20.5
21.0
20.7
20.6
Current pensioners at 65 – female
22.9
22.9
22.7
22.6
Future pensioners at 65 – male
21.4
22.3
22.2
22.1
Future pensioners at 65 – female
24.0
24.4
24.1
24.0
Other related actuarial assumptions:
Rate of increases for pensions in payment (% pa)
Pre 6 April 2006 service
3.05
3.00
n/a
n/a
Post 5 April 2006 service
2.10
2.10
n/a
n/a
Consumer Prices Inflation (CPI) assumption (% pa)
2.65
2.50
n/a
n/a
Rate of increase in healthcare costs
n/a
n/a
Note *
Note **
Note * Between 5.5% and 12.6% per annum decreasing to 4.5% (Weir)/4.0% (ESCO) per annum and remaining static at that level
from 2035 (Weir)/2042 (ESCO) onwards.
Note ** Between 5.2% and 11.75% per annum decreasing to 4.5% per annum and remaining static at that level from 2033
(Weir)/2037 (ESCO) onwards.
The assumptions used to determine end-of-year benefit obligations are also used to calculate
the following year’s cost. For North America, weighted average assumptions are shown above
where applicable.
The post-retirement mortality assumptions allow for expected increases in longevity. The
‘current’ disclosures above relate to assumptions based on longevity (in years) following
retirement at the balance sheet date, with ‘future’ being that relating to a member retiring in
2045 (in 20 years’ time).
The assets and liabilities of the plans are as follows.
UK pensions
North American
pensions &
post-retirement
healthcare
Total
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Plan assets at fair value
Equities (quoted)
–
–
9.1
9.1
9.1
9.1
Corporate bonds (quoted)
36.7
–
63.7
70.1
100.4
70.1
Government bonds (quoted)
106.8
170.8
34.2
38.7
141.0
209.5
Insurance policies (unquoted)
288.5
336.4
–
–
288.5
336.4
Property
–
–
1.9
4.0
1.9
4.0
Private debt (unquoted)
29.8
37.1
–
–
29.8
37.1
Multi Asset Credit Funds (quoted)
42.4
39.7
–
–
42.4
39.7
Cash (quoted)
15.1
8.7
7.3
2.2
22.4
10.9
Fair value of plan assets
519.3
592.7
116.2
124.1
635.5
716.8
Present value of funded obligations
(486.7)
(562.6) (119.0)
(125.6) (605.7)
(688.2)
Net asset (liability) for funded
obligations
32.6
30.1
(2.8)
(1.5)
29.8
28.6
Present value of unfunded
obligations
(0.7)
(0.8)
(19.8)
(23.9)
(20.5)
(24.7)
Effect of asset limit
–
–
–
(1.8)
–
(1.8)
Net asset (liability)
31.9
29.3
(22.6)
(27.2)
9.3
2.1
Plans in surplus
32.6
30.1
–
–
32.6
30.1
Plans in deficit
(0.7)
(0.8)
(22.6)
(27.2)
(23.3)
(28.0)
Of the government bonds held at 31 December 2024, 59% (2023: 75%) are fixed interest
bonds. The pension plans have not directly invested in any of the Group’s own financial
instruments, or in properties or other assets used by the Group.
In the UK, where the majority of the Group's pension assets are held, the investment strategy is
to primarily hold government bonds and corporate bonds to meet the assessed value of the
benefits promised for the non-insured members, along with holding private debt and multi-
asset credit funds. The insured members are backed by the insurance policies held within the
Scheme.
Strategic Report
Governance
Financial Statements
Additional Information
The value of the insurance policies is set equal to the estimated IAS 19 liability. The valuation
uses the same methodology as the associated liability based on the census data included in
the most recent triennial valuation, adjusted for movements in actuarial assumptions and
inflation experience. The Private Debt holdings reflect investments by the UK Main Plan. As
these funds are less frequently traded, the value shown reflects the 30 September 2024
valuations, adjusted for capital calls and distributions from this date to 31 December 2024.
The ESCO unfunded arrangements are backed by a grantor trust that contains Trust Owned
Life Insurance (TOLI) policy investments. These investments do not match the obligations of
the corresponding employee benefit plans, they are not used in practice to pay the benefits
as they fall due and they are available to the Group’s creditors in the event of insolvency. This
means the grantor trust does not qualify as a 'plan asset' for the purposes of IAS 19 'Employee
benefits' and is instead treated as a separate Group asset outside of this note. The value of
these assets was estimated at £42.7m as at 31 December 2024 and are recognised in note 18.
The change in the IAS 19 funding position recognised in the Consolidated Balance Sheet is
comprised as follows.
UK pension
North American
pensions &
post-retirement
healthcare
Total
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Opening net assets (liabilities)
29.3
50.0
(27.2)
(34.9)
2.1
15.1
Expense credited (charged) to
the Consolidated Income
Statement
0.9
2.0
(1.8)
(1.8)
(0.9)
0.2
Amount recognised in the
Consolidated Statement of
Comprehensive Income
1.6
(29.0)
3.3
0.8
4.9
(28.2)
Employer contributions
0.1
6.3
3.4
7.0
3.5
13.3
Exchange adjustment
–
–
(0.3)
1.7
(0.3)
1.7
Closing net assets (liabilities)
31.9
29.3
(22.6)
(27.2)
9.3
2.1
The amounts recognised for the Group in the Consolidated Income Statement and in the
Consolidated Statement of Comprehensive Income for the year are analysed as follows.
UK pension
North American
pensions &
post-retirement
healthcare
Total
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Recognised in the Consolidated Income Statement
Current service cost
–
–
–
(0.1)
–
(0.1)
Curtailment gain
–
–
–
0.5
–
0.5
Administrative expenses
(0.4)
(0.6)
(0.6)
(0.7)
(1.0)
(1.3)
Included in operating profit
(0.4)
(0.6)
(0.6)
(0.3)
(1.0)
(0.9)
Interest on net pension asset
(liability)
1.3
2.6
(1.2)
(1.5)
0.1
1.1
Total credit (expense) charged
to the Consolidated Income
Statement
0.9
2.0
(1.8)
(1.8)
(0.9)
0.2
Recognised in the Consolidated Statement of Comprehensive Income
Actual return on plan assets
(37.0)
12.5
1.2
10.3
(35.8)
22.8
Less: interest on plan assets
(25.9)
(28.7)
(5.5)
(6.1)
(31.4)
(34.8)
(62.9)
(16.2)
(4.3)
4.2
(67.2)
(12.0)
Other actuarial gains (losses) due to:
Changes in financial
assumptions
44.4
(10.1)
5.0
(2.7)
49.4
(12.8)
Changes in demographic
assumptions
11.5
7.2
0.2
–
11.7
7.2
Experience on benefit
obligations
8.6
(9.9)
0.6
(0.7)
9.2
(10.6)
Effect of asset limit
–
–
1.8
–
1.8
–
Actuarial gains (losses)
recognised in the Consolidated
Statement of Comprehensive
Income
1.6
(29.0)
3.3
0.8
4.9
(28.2)
Current service cost and administration expenses are recognised in operating costs and
interest on net pension liability is recognised in other finance costs.
The Weir Group PLC Annual Report and Financial Statements 2024
209
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
The Group’s largest North American plan is the US ESCO Corporation pension plan. The Group’s
current funding policy for this plan is to pay the minimum required contributions under US
regulation. However, in the event the plan’s funding level is projected to fall below significant
thresholds, the Group will consider funding more than the minimum required contribution.
Pension contributions are determined with the advice of independent qualified actuaries on
the basis of regular valuations using the projected unit method. The Group made no special
contributions in 2024 (2023: £9.3m).
The latest actuarial funding valuation of the UK Main Plan was completed in 2024. As the Plan
was in a funding surplus, no recovery plan was required and therefore no future deficit
reduction contributions are currently payable and the Scottish Limited Partnership previously
in place to fund pension contributions will be wound up.
The Group has taken legal advice regarding its UK arrangements to confirm the accounting
treatment under IFRIC 14 with regard to recognition of a surplus and also recognition of a
minimum funding requirement. This confirmed that there is no requirement to adjust the
balance sheet and that recognition of a current surplus is appropriate on the basis that the
Group has an unconditional right to a refund of a current (or projected future) surplus at some
point in the future. Having considered the position, taking account of the legal input received
and noting that the Trustees of the UK arrangements do not have discretionary powers to
unilaterally wind up the schemes without cause, the Directors of the Group have concluded
that the Group has an unconditional right to a refund of any surplus.
The Group is aware of a case involving Virgin Media and NTL Pension Trustee, which could
potentially lead to additional liabilities for some pension schemes and sponsors. The Group
has taken some initial legal advice and at this stage is not aware of any evidence to suggest
that the relevant legal requirements were not complied with, and therefore no further action
has been taken. No allowance has been made for any additional liabilities that may arise as a
result of this court ruling. The Group will continue to monitor any future developments.
The total Group contributions for 2025 are expected to be £3.0m.
UK pensions
North American
pensions &
post-retirement
benefits
Total
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Effect of asset limit at start of year
–
–
(1.8)
(1.8)
(1.8)
(1.8)
Interest on the asset limit
–
–
(0.1)
(0.2)
(0.1)
(0.2)
Change in the asset limit other
than interest
–
–
1.8
–
1.8
–
Exchange rate adjustment
–
–
0.1
0.2
0.1
0.2
Effect of asset limit at end of year
–
–
–
(1.8)
–
(1.8)
The Weir Group PLC Annual Report and Financial Statements 2024
210
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Changes in the present value of the defined benefit obligations are analysed as follows.
UK pensions
North American
pensions &
post-retirement
benefits
Total
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Opening defined benefit
obligations
(563.4)
(560.1)
(149.5)
(159.1)
(712.9)
(719.2)
Current service cost
–
–
–
(0.1)
–
(0.1)
Interest on benefit obligations
(24.6)
(26.1)
(6.6)
(7.4)
(31.2)
(33.5)
Benefits paid
36.1
35.6
11.8
12.5
47.9
48.1
Actuarial gains (losses) due to:
Changes in financial
assumptions
44.4
(10.1)
5.0
(2.7)
49.4
(12.8)
Changes in demographic
assumptions
11.5
7.2
0.2
–
11.7
7.2
Experience on benefit
obligations
8.6
(9.9)
0.6
(0.7)
9.2
(10.6)
Liabilities removed due to
curtailments/settlements
–
–
–
0.5
–
0.5
Exchange rate adjustment
–
–
(0.3)
7.5
(0.3)
7.5
Closing defined benefit
obligations
(487.4)
(563.4)
(138.8)
(149.5)
(626.2)
(712.9)
Changes in the fair value of plan assets are analysed as follows.
UK pensions
North American
pensions &
post-retirement
benefits
Total
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Opening plan assets
592.7
610.1
124.1
126.0
716.8
736.1
Interest on plan assets
25.9
28.7
5.5
6.1
31.4
34.8
Employer contributions
0.1
6.3
3.4
7.0
3.5
13.3
Administrative expenses
(0.4)
(0.6)
(0.6)
(0.7)
(1.0)
(1.3)
Benefits paid
(36.1)
(35.6)
(11.8)
(12.5)
(47.9)
(48.1)
Actual return on plan assets less
interest on plan assets
(62.9)
(16.2)
(4.3)
4.2
(67.2)
(12.0)
Exchange rate adjustment
–
–
(0.1)
(6.0)
(0.1)
(6.0)
Closing plan assets
519.3
592.7
116.2
124.1
635.5
716.8
The Weir Group PLC Annual Report and Financial Statements 2024
211
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Sensitivity analysis
Changes in key assumptions can have a significant effect on the reported retirement benefit
obligation and the Consolidated Income Statement expense for 2025. The effects of changes
in those assumptions on the reported retirement benefit obligation are set out in the table
below.
Increase Decrease
Increase
Decrease
2024
£m
2024
£m
2023
£m
2023
£m
Discount rate
Effect on defined benefit obligation of a 1.0%
change
54.9
(64.3)
68.7
(82.1)
Effect on net funding position of a 1.0% change
34.8
(41.3)
42.8
(52.2)
RPI inflation (and associated assumptions)
Effect on defined benefit obligation of a 1.0%
change
(31.8)
25.9
(29.1)
29.7
Effect on net funding position of a 1.0% change
(20.9)
14.0
(14.1)
14.3
Life expectancy
Effect on defined benefit obligation of a 1 year
change
(22.7)
22.7
(30.9)
30.9
Effect on net funding position of a 1 year change
(8.1)
8.1
(9.1)
9.1
The impact on the IAS 19 net funding position is significantly reduced as a result of the
insurance policies held. In the absence of such policies, the impact on the IAS 19 net funding
position would be much closer to the significantly higher impact on the defined benefit
obligation shown in the table.
These sensitivities have been calculated to show the movement in the defined benefit
obligation and IAS 19 net funding position in isolation and assume no other changes in market
conditions at the accounting date. In practice, for example, a change in discount rate is unlikely
to occur without any movement in the value of the invested (non-insurance policy) assets
held by the plans.
25. Share capital & reserves
2024
Number
million
2023
Number
million
Issued & fully paid share capital
At the beginning of the year
259.6
259.6
At the end of the year
259.6
259.6
Treasury shares
At the beginning of the year
1.7
0.9
Purchase of shares in respect of equity settled share-based
payments
0.6
1.2
Utilised during the year in respect of equity settled share-based
payments
(0.3)
(0.4)
At the end of the year
2.0
1.7
The Company has one class of ordinary share with a par value of 12.5p, which carries no rights
to fixed income.
As at 31 December 2024, Computershare Investor Services PLC held the following shares,
which are subject to restriction, on behalf of individuals.
– 218,405 shares (2023: 171,792) for restricted shares that have vested under the Share
Reward Plan. These shares have a market value of £4.8m.
– 8,428 shares (2023: 8,731) for bonus shares awarded under the Share Reward Plan. These
shares have a market value of £0.2m.
As at 31 December 2024, 2,046,084 shares (2023: 1,686,148) were unallocated and held by the
Computershare Trustees (Jersey) Limited with a market value of £44.7m.
The Weir Group PLC Annual Report and Financial Statements 2024
212
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Reserves
The period movements on the below reserves are summarised in the Consolidated Statement
of Changes in Equity.
Merger reserve
The merger reserve relates to the issue of new equity as part of the consideration paid for an
acquisition. Shares issued directly to ESCO Shareholders on 12 July 2018, as part of the total
acquisition consideration, qualified for merger relief under Section 612 of the Companies Act
2006 and resulted in an increase to the reserve of £323.2m. The remaining reserve balance of
£9.4m relates to shares issued in part consideration for the acquisition of Delta Industrial
Valves Inc. during 2015.
Capital redemption reserve
The capital redemption reserve was created by a repurchase and cancellation of own shares
during the 53 weeks ended 1 January 1999.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from
the translation of the financial statements of foreign operations and the Group’s hedge of its
net investment in foreign operations.
Hedge accounting reserve
This reserve records the portion of the gains or losses on hedging instruments used as cash
flow and fair value hedges that are determined to be effective. Net gains (losses) transferred
from equity during the year are included in the following line items in the Consolidated
Income Statement.
2024
£m
2023
£m
Revenue
0.1
(0.5)
Finance costs
(0.3)
(0.1)
(0.2)
(0.6)
26. Additional cash flow information
Notes
2024
£m
2023
£m
Total operations
Net cash generated from operating activities
Operating profit – continuing operations
391.0
368.4
Operating loss – discontinued operations
(2.9)
(1.3)
Operating profit – total operations
388.1
367.1
Exceptional and other adjusting items
6
63.3
66.2
Amortisation of intangible assets
13
32.7
37.7
Share of results of joint ventures
16
(1.9)
(2.5)
Depreciation of property, plant & equipment
12
45.9
39.9
Depreciation of right-of-use assets
12
31.9
31.6
Impairment of property, plant & equipment
12
0.1
0.9
Capital grants received
(0.4)
(0.5)
Loss (gain) on disposal of property, plant & equipment
0.9
(0.4)
Funding of pension & post-retirement costs
(0.4)
(1.1)
Employee share schemes
28
10.4
7.0
Transactional foreign exchange
7.5
9.2
Increase (decrease) in provisions
5.1
(1.5)
Cash generated from operations before working capital
cash flows
583.2
553.6
Decrease in inventories
2.0
42.0
(Increase) decrease in trade & other receivables & construction
contracts
(19.3)
15.2
Increase (decrease) in trade & other payables & construction
contracts
25.2
(85.3)
Adjusted operating cash flow
591.1
525.5
Additional pension contributions paid
24
–
(9.3)
Exceptional and other adjusting cash items
(30.7)
(18.0)
Income tax paid
(110.5)
(103.9)
Net cash generated from operating activities
449.9
394.3
The Weir Group PLC Annual Report and Financial Statements 2024
213
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Cash flows from discontinued operations included above are disclosed separately in note 9.
The following tables summarise the cash flows arising on acquisitions (note 14) and disposals
(notes 6 and 9).
2024
£m
2023
£m
Acquisitions of subsidiaries
Acquisition of subsidiaries – cash consideration paid
–
6.1
Cash & cash equivalents acquired
–
(0.2)
Total cash outflow on current period acquisitions
–
5.9
Prior period acquisitions - deferred consideration paid
1.0
1.0
Total cash outflow relating to acquisitions
1.0
6.9
Net cash outflow arising on disposals
Prior period disposals
1.8
0.4
Total cash outflow relating to disposals
1.8
0.4
2024
£m
2023
£m
Net debt comprises the following
Cash & short-term deposits (note 19)
556.4
707.2
Current interest-bearing loans & borrowings (note 20)
(55.2)
(286.2)
Non-current interest-bearing loans & borrowings (note 20)
(1,035.8)
(1,111.1)
(534.6)
(690.1)
Reconciliation of financing cash flows to movement in net debt
Opening
balance at
1 January
2024
£m
Cash
movements
£m
Additions/
acquisitions
£m
FX
£m
Non-cash
movements
£m
Closing
balance at
31
December
2024
£m
Cash & cash
equivalents
447.4
95.2
–
(15.7)
–
526.9
Third-party loans
(1,026.8)
99.4
–
(12.2)
–
(939.6)
Leases
(117.5)
24.8
(38.4)
4.1
–
(127.0)
Unamortised issue
costs
6.8
0.3
–
–
(2.0)
5.1
Amounts included in
gross debt
(1,137.5)
124.5
(38.4)
(8.1)
(2.0)
(1,061.5)
Amounts included in
net debt
(690.1)
219.7
(38.4)
(23.8)
(2.0)
(534.6)
Financing derivatives
(2.3)
1.7
–
–
2.9
2.3
Total financing
liabilities1
(1,139.8)
126.2
(38.4)
(8.1)
0.9
(1,059.2)
Note 1. Total financing liabilities comprise gross debt plus other liabilities relating to financing activities.
The Weir Group PLC Annual Report and Financial Statements 2024
214
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Opening
balance at 1
January
2023
£m
Cash
movements
£m
Additions/
acquisitions
£m
FX
£m
Non-cash
movements
£m
Closing
balance at
31
December
2023
£m
Cash & cash
equivalents
477.5
1.0
0.2
(31.3)
–
447.4
Third-party loans
(1,165.5)
111.2
(0.2)
27.7
–
(1,026.8)
Leases
(115.1)
31.0
(38.4)
5.3
(0.3)
(117.5)
Unamortised issue
costs
5.9
4.0
–
–
(3.1)
6.8
Amounts included in
gross debt
(1,274.7)
146.2
(38.6)
33.0
(3.4)
(1,137.5)
Amounts included in
net debt
(797.2)
147.2
(38.4)
1.7
(3.4)
(690.1)
Financing derivatives
(0.1)
0.5
–
–
(2.7)
(2.3)
Total financing
liabilities1
(1,274.8)
146.7
(38.6)
33.0
(6.1)
(1,139.8)
Note 1. Total financing liabilities comprise gross debt plus other liabilities relating to financing activities.
27. Commitments & legal claims
Capital commitments
2024
£m
2023
£m
Outstanding capital commitments contracted but not provided for
– property, plant & equipment
13.2
19.1
Legal claims
The Company and certain subsidiaries are, from time-to-time, party to legal proceedings and
claims that arise in the normal course of business. Provisions have been made where the
Directors have assessed that a cash outflow is probable. All other claims are believed to be
remote or are not yet ripe.
28. Equity settled share-based payments
Employee share plans
The Group’s 2018 Share Reward Plan (SRP) allows for Restricted shares and Bonus shares to be
awarded to employees under the Plan. Details of the SRP for Executive Directors are outlined in
the Remuneration report on pages 113 to 147. The vesting period varies with awards issued
between 2018–2020 vesting in four tranches for Group Executives and Executive Directors and
three tranches for all other participants on a pro rata basis, awards issued in 2021 vesting in
three tranches, while awards issued in 2022 and 2023 will vest in full at the end of three years.
Underpins and two and three-year holding periods are attached to the Executive Directors’
and Group Executives’ SRP awards. Dividend equivalents are added in the form of shares at
each vesting date.
In 2019, the Weir Group All-Employee Share Ownership Plan (Weir ShareBuilder) launched.
Awards granted under Weir ShareBuilder are free shares given to all employees who meet the
eligibility criteria. Awards vest in one tranche on the second anniversary of the grant date. The
2022 award vested on 10 May 2024. Dividend equivalents are added in the form of shares at
each vesting date. These awards are immaterial in both the number of shares and award
value.
In 2024, one-off performance share awards were issued to two senior employees. The awards
contain ‘non-market’ vesting conditions for IFRS 2 purposes and will vest at the end of April
2026. These awards are subject to an underpin, which consists of a ‘basket’ of pre-determined
key metrics that will reflect achievement of Performance Excellence targets over the vesting
period. For each metric, a clearly defined and, where relevant, quantifiable ‘threshold’ was set
at the time of grant. Dividend equivalents are added in the form of shares at each vesting
date. These awards are immaterial in both the number of shares and award value.
One-off conditional share awards are also occasionally granted to employees. These
transactions fall under the scope of IFRS 2 'Share-based payments' and are treated in line with
awards issued under the Group’s SRP in the year of award.
The Weir Group PLC Annual Report and Financial Statements 2024
215
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
The following tables illustrate the number and weighted average share prices (WASP) of
shares awarded.
Restricted shares
2024
Number
million
2024
WASP
2023
Number
million
2023
WASP
Outstanding at the beginning of the year
1.5
£16.04
1.6
£14.35
Awarded during the year
0.8
£19.83
0.6
£18.64
Vested during the year
(0.3)
£14.64
(0.4)
£12.46
Forfeited during the year
(0.2)
£18.18
(0.3)
£14.58
Outstanding at the end of the year
1.8
£17.62
1.5
£16.04
A total of 21,292 awards (2023: 26,098) were issued to new employees under the Weir
ShareBuilder Plan in the year.
In respect of awards issued in the year and revised estimates of previously issued awards,
under the SRP, Weir ShareBuilder and performance shares, an amount of £10.4m has been
charged (2023: £7.0m) to the Consolidated Income Statement in respect of the number of
awards that are expected to be made at the end of the vesting period.
The remaining contractual lives of the outstanding SRP, Weir ShareBuilder and one-off
conditional share awards at the end of the period are as follows.
Year of award
2024
Number
million
2024
Remaining
contractual
life Note 1
2023
Number
million
2023
Remaining
contractual
life Note 1
2020
0.1
3 months
0.1
8 months
2021
0.1
9 months
0.2
8 months
2022
0.5
3 months
0.6
14 months
2023
0.5
13 months
0.6
24 months
2024
0.6
21 months
–
–
1. Remaining contractual life reflects an average across awards with one to five-year vesting periods.
The fair value at date of grant of the conditional awards has been independently estimated for
both the Restricted shares and Weir ShareBuilder awards. The grant date fair value of these
awards is calculated as the share price at the date of grant less an adjustment for loss of
reinvestment return on the dividend equivalent. There are no performance conditions
attached to these awards.
The fair value of occasional one-off conditional awards at grant date is also estimated on
this basis.
Bonus shares
Under the Group’s annual bonus plan, Executive Directors and members of the Group
Executive defer 30% of any bonus received into an award of Weir Group shares, which will
normally be released after three years. These awards are entitled to receive the value of the
dividends paid by the Company during the three-year holding period or to have dividend
equivalents added in the form of shares at each vesting date.
The SRP bonus shares are administered by Computershare Trust Company, N.A., CPU Share
Plans Pty Ltd and Computershare Investor Services PLC. The shares are acquired on market at
the grant date and are held in Computershare Trust Company, N.A., CPU Share Plans Pty Ltd
and Computershare Investor Services PLC until such time as they are vested. Forfeited shares
are reallocated in subsequent grants. Under the terms of the Trust Deed, Weir Group is
required to provide the necessary funding for the acquisition of the shares at the time of the
grant.
The number of shares to be granted is determined based on the applicable annual bonus
divided by the average share price for the three days immediately prior to the date of the
grant or the number of shares purchased in the stock market with the applicable annual
bonus. In 2024, 37,278 shares were awarded (2023: 49,023).
The fair value of the rights at grant date was estimated by taking the market price of the
Company’s shares on that date.
29. Related party disclosure
The following table provides the total amount of significant transactions that have been
entered into by the Group with related parties for the relevant financial year and outstanding
balances at the year end.
Related party
Sales to
related
parties –
goods
£m
Sales to
related
parties –
services
£m
Purchases
from
related
parties –
goods
£m
Amounts
owed to
related
parties
£m
Amounts
owed by
related
parties
£m
Joint ventures
2024
1.0
0.1
17.3
4.8
0.3
2023
0.9
0.1
19.2
3.8
0.4
Group pension plans
2024
–
–
–
2.8
–
2023
–
–
–
1.6
–
Contributions to the Group pension plans are disclosed in note 24.
The Weir Group PLC Annual Report and Financial Statements 2024
216
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Terms & conditions of transactions with related parties
Sales to and from related parties are made at normal market prices. Outstanding balances at
the period end are unsecured and settlement occurs in cash. There have been no guarantees
provided or received for any related party balances. For 2024, the Group has not raised any
provision for doubtful debts relating to amounts owed by related parties (2023: £nil) as the
payment history has been excellent and there is no forward-looking information that suggests
there will be any issues affecting the ability for future settlement. This assessment is
undertaken each financial year through examining the financial position of the related party
and the market in which the related party operates.
Compensation of key management personnel
2024
£m
2023
£m
Short-term employee benefits
8.3
7.6
Share-based payments
4.4
2.3
Post-employment benefits
0.4
0.4
13.1
10.3
Emoluments paid to the Directors of The Weir Group PLC
2024
£m
2023
£m
Remuneration
3.9
3.5
Gains made on the exercise of Long Term Incentive Plan awards
1.3
1.3
5.2
4.8
Key management comprises the Board and the Group Executive. Further details of the
Directors’ remuneration are disclosed in the Directors’ Remuneration report on pages 113 to
147.
30. Financial instruments
Derivative financial instruments
The Group enters into derivative financial instruments in the normal course of business in
order to hedge its exposure to foreign exchange risk. Derivatives are only used for economic
hedging purposes and no speculative positions are taken. Derivatives are recognised as held
for trading and at fair value through profit and loss unless they are designated in IFRS 9
'Financial Instruments' compliant hedge relationships.
The following table below summarises the types of derivative financial instrument included
within each balance sheet category.
2024
£m
2023
£m
Included in current assets
Forward foreign currency contracts designated as cash flow hedges
1.1
0.6
Forward foreign currency contracts designated as fair value hedges
1.7
–
Other forward foreign currency contracts
7.9
7.3
10.7
7.9
Included in current liabilities
Forward foreign currency contracts designated as cash flow hedges
(0.3)
(0.5)
Forward foreign currency contracts designated as fair value hedges
(0.4)
–
Other forward foreign currency contracts
(9.4)
(5.9)
(10.1)
(6.4)
Included in non-current liabilities
Forward foreign currency contracts designated as fair value hedges
–
(2.3)
–
(2.3)
Net derivative financial assets (liabilities)
0.6
(0.8)
The Weir Group PLC Annual Report and Financial Statements 2024
217
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Financial assets and liabilities
Financial assets and liabilities (with the exception of derivative financial instruments) are
initially recognised at fair value net of transaction costs. Subsequently they are recognised at
either fair value or amortised cost. Derivative financial instruments are initially recognised at
fair value and subsequently remeasured at fair value. 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 that have a significant effect on the recorded
fair value are observable, either directly or indirectly; and
Level 3: Techniques that use inputs that have a significant effect on the recorded fair value
that are not based on observable market data.
During the year ended 31 December 2023, following the settlement of private placement debt
and the issue of further Sustainability-Linked Notes, the fair value of fixed-rate borrowings were
reassessed as a level 1 fair value measurement rather than level 2 as the full balance is now
calculated using quoted market prices.
During the year ended 31 December 2024, 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.
Offsetting
Financial assets and liabilities are offset and the net amount reported in the balance sheet
where the Group currently has a legal right to offset the recognised amounts, and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously.
As at 31 December 2024, cash and short-term deposits of £556.4m (2023: £707.2m) and
current interest-bearing loans and borrowings of £55.2m (2023: £286.2m) were presented
after elimination of debit and credit balances within individual pools of £0.1m (2023: £nil).
The Group operates a notional cash pooling arrangement in which individual balances are not
offset for reporting purposes as the Group does not intend to settle on a net basis. Cash and
short-term deposits at 31 December 2024 includes £29.5m (2023: £256.0m) that is part of this
arrangement and both cash and interest-bearing loans and borrowings are grossed up by
this amount.
The Group has also entered into arrangements that do not meet the criteria for offsetting, but
still allow for the related amounts to be offset in specific circumstances. As at 31 December
2024, the Group had derivative financial instruments of £1.6m (2023: £1.5m) which were
subject to master netting arrangements, but not offset.
Carrying amounts and fair values
The following tables show the carrying amounts and fair values of the Group’s financial
instruments that are reported in the financial statements.
Carrying
amount
2024
£m
Fair value
2024
£m
Fair value measurement using
Level 1
Quoted
prices in
active
markets
£m
Level 2
Significant
observable
inputs
£m
Level 3
Significant
unobservable
inputs
£m
Financial assets
Derivative financial instruments
recognised at fair value through
profit or loss
7.9
7.9
–
7.9
–
Derivative financial instruments
in designated hedge accounting
relationships
2.8
2.8
–
2.8
–
Trade & other receivables
excluding statutory assets,
prepayments & construction
contract assets
510.3
510.3
–
510.3
–
Cash & short-term deposits
556.4
556.4
–
556.4
–
1,077.4
Financial liabilities
Derivative financial instruments
recognised at fair value through
profit or loss
9.4
9.4
–
9.4
–
Derivative financial instruments
in designated hedge accounting
relationships
0.7
0.7
–
0.7
–
Deferred consideration payable
0.6
0.6
–
0.6
–
Amortised cost:
Fixed-rate borrowings
936.6
923.5
923.5
–
–
Floating-rate borrowings
(2.1)
(2.1)
–
(2.1)
–
Leases
127.0
n/a
n/a
n/a
n/a
Bank overdrafts
29.5
29.5
–
29.5
–
Trade & other payables
excluding statutory liabilities &
contract liabilities
476.6
476.6
–
476.6
–
1,578.3
The Weir Group PLC Annual Report and Financial Statements 2024
218
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Carrying
amount
2023
£m
Fair value
2023
£m
Fair value measurement using
Level 1
Quoted
prices in
active
markets
£m
Level 2
Significant
observable
inputs
£m
Level 3
Significant
unobservable
inputs
£m
Financial assets
Derivative financial instruments
recognised at fair value through profit
or loss
7.3
7.3
–
7.3
–
Derivative financial instruments in
designated hedge accounting
relationships
0.6
0.6
–
0.6
–
Trade & other receivables excluding
statutory assets, prepayments &
construction contract assets
508.5
508.5
–
508.5
–
Cash & short-term deposits
707.2
707.2
–
707.2
–
1,223.6
Financial liabilities
Derivative financial instruments
recognised at fair value through profit
or loss
5.9
5.9
–
5.9
–
Derivative financial instruments in
designated hedge accounting
relationships
2.8
2.8
–
2.8
–
Deferred consideration payable
1.6
1.6
–
1.6
–
Amortised cost:
Fixed-rate borrowings
922.3
895.9
895.9
–
–
Floating-rate borrowings
97.7
97.7
–
97.7
–
Leases
117.5
n/a
n/a
n/a
n/a
Bank overdrafts
259.8
259.8
–
259.8
–
Trade & other payables excluding
statutory liabilities & contract liabilities
457.6
457.6
–
457.6
–
1,865.2
Assets and liabilities recognised at amortised cost
The fair value of fixed-rate borrowings has been assessed as a level 1 fair value measurement
as the full balance is calculated using quoted market prices. All other financial assets and
liabilities carried at cost require level 2 fair value measurement for disclosure purposes. The fair
value of floating-rate borrowings approximates the carrying value due to the variable nature
of the interest terms. The carrying amount of lease liabilities is estimated by discounting future
cash flows using the rate implicit in the lease or the Group’s incremental borrowing rate. 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. As such, disclosure of the fair value hierarchy for these items is not required.
Assets and liabilities recognised at fair value
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 and forward 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.
Hedging activities
The Group designates certain derivative financial instruments in either cash flow hedging, net
investment hedging or fair value hedging relationships in accordance with IFRS 9.
Cash flow hedge
Net investment hedge
Fair value hedge
Hedge relationship
Cash flow hedge of
highly probable
forecast foreign
currency purchases
and sales
Net investment hedge
of foreign operations
Fair value hedge of
foreign currency debt
Hedged risk
Transactional foreign
exchange risk
Translational foreign
exchange risk
Transactional foreign
exchange risk
Hedging instruments Forward foreign
currency contracts
Foreign currency debt
Forward foreign
currency contracts
Forward foreign
currency contracts
The Weir Group PLC Annual Report and Financial Statements 2024
219
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
For each type of derivative financial instrument, the net carrying amount and maturity date
ranges are set out in the table below.
Year ended 31 December 2024
Net carrying
amount
£m
Maturity
dates
Forward foreign currency contracts designated as cash flow hedges
0.8
2025 to
2026
Forward foreign currency contracts designated as fair value hedges
1.3
2025
Other forward foreign currency contracts at fair value through profit
or loss
(1.5)
2025 to
2026
0.6
Year ended 31 December 2023
Net carrying
amount
£m
Maturity
dates
Forward foreign currency contracts designated as cash flow hedges
0.1
2024 to
2025
Forward foreign currency contracts designated as fair value hedges
(2.3)
2025
Other forward foreign currency contracts at fair value through profit
or loss
1.4
2024
(0.8)
For each type of derivative financial instrument, the amounts recognised for the year in profit
or loss and equity are set out in the table below. In the financial statements these amounts are
offset by the retranslation of foreign currency denominated receivables and payables, the
impact of which is also set out in the following tables.
Year ended 31 December 2024
Amounts recognised in
profit or loss
Amounts recognised in equity
Other
(losses)
gains in
operating
profit
£m
Total
amounts
recognised
in profit or
loss
£m
Cost of
hedging
reserve
£m
Cash flow
hedge
reserve
£m
Foreign
currency
translation
reserve
£m
Instruments measured at fair value
Designated in hedge accounting relationships
Forward foreign currency
contracts designated as cash
flow hedges
(0.1)
(0.1)
–
0.8
–
Forward foreign currency
contracts designated as fair
value hedges
0.3
0.3
0.5
–
–
Not designated in hedge accounting relationships
Other forward foreign
currency contracts at fair
value through profit or loss
4.2
4.2
–
–
–
Total gains on instruments
4.4
4.4
0.5
0.8
–
The Weir Group PLC Annual Report and Financial Statements 2024
220
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Year ended 31 December 2023
Amounts recognised in
profit or loss
Amounts recognised in equity
Other gains
in operating
profit
£m
Total
amounts
recognised
in profit or
loss
£m
Cost of
hedging
reserve
£m
Cash flow
hedge
reserve
£m
Foreign
currency
translation
reserve
£m
Instruments measured at fair value
Designated in hedge accounting relationships
Forward foreign currency
contracts designated as cash
flow hedges
0.5
0.5
–
(0.4)
–
Forward foreign currency
contracts designated as net
investment hedges
–
–
–
–
(2.7)
Forward foreign currency
contracts designated as fair
value hedges
0.1
0.1
(0.8)
–
–
Not designated in hedge accounting relationships
Other forward foreign
currency contracts at fair
value through profit or loss
–
–
–
–
–
Total gains (losses) on
instruments
0.6
0.6
(0.8)
(0.4)
(2.7)
Hedge ineffectiveness
Hedge effectiveness is determined at the inception of the hedge relationship and through
periodic prospective effectiveness assessments to ensure that an economic relationship exists
between the hedged item and hedging instrument.
For hedges of foreign currency revenue and cost of sales, the Group enters into hedge
relationships where the critical terms of the hedging instrument match exactly with the terms
of the hedged item. The Group therefore performs a qualitative assessment of effectiveness. If
changes in circumstances affect the terms of the hedged item such that the critical terms no
longer match exactly with the critical terms of the hedging instrument, the Group uses the
hypothetical derivative method to determine whether an economic relationship remains, and
so assess effectiveness. As all critical terms matched during the year, the economic
relationships were 100% effective.
Ineffectiveness may arise if the timing of the forecast transaction changes from what was
originally estimated, or if there are changes in the credit risk of the Group or the derivative
counterparty.
The Group utilises borrowings that are measured at amortised cost and denominated in the
currency of the hedged net assets, as hedging instruments in net investment hedges. The
Group does not hedge 100% of its net assets of foreign operations, therefore, the hedged item
is identified as a proportion of the net assets of the foreign operations up to the notional
amount of the foreign exchange forwards and principal amount of the borrowings. The Group
also utilises forward foreign currency contracts as hedging instruments in net investment
hedges. As all critical terms matched during the year, the economic relationships were 100%
effective.
There was no ineffectiveness during 2024 or 2023 in relation to hedge relationships.
The Weir Group PLC Annual Report and Financial Statements 2024
221
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Effects of hedge accounting on financial position and performance
The effects of the foreign currency related hedging instruments on the Group’s financial
position and performance are as follows.
Cash flow hedging: foreign currency forwards
2024
2023
Carrying amount (£m)
0.8
0.1
Assets
1.1
0.6
Liabilities
(0.3)
(0.5)
Notional amounts (m)
USD
21.0
39.8
GBP
–
0.1
NZD
–
0.5
EUR
29.3
13.7
Average exchange rates
EUR:AUD
1.65
1.66
USD:AUD
1.52
1.51
USD:CAD
–
1.33
GBP:AUD
–
1.88
GBP:EUR
–
1.13
GBP:USD
–
1.22
NZD:AUD
–
0.92
Maturity dates
01/2025 -
01/2026
01/2024 -
03/2025
Hedge ratios1
1:1
1:1
Change in fair value of outstanding hedging instruments since 1
January (£m)
0.7
(0.4)
Change in value of hedged item used to determine hedge
effectiveness (£m)
(0.7)
0.4
1. The foreign currency forwards are denominated in the same currency as the highly probable future transactions, therefore
the hedge ratio is 1:1.
Net investment hedging: foreign currency forwards and borrowings
2024
2023
Carrying amount (£m)
(639.0)
(626.8)
Liabilities – borrowings
(639.0)
(626.8)
Notional amounts (m)
USD
800.0
800.0
Average exchange rates
GBP:USD
1.28
1.24
Maturity dates
05/2026
05/2026
Hedge ratios
1:1
1:1
Change in fair value of outstanding hedging instruments since 1
January (£m)
(12.2)
27.6
Change in value of hedged item used to determine hedge
effectiveness (£m)
12.2
(27.6)
Fair value hedging: foreign currency forwards
2024
2023
Carrying amount (£m)
1.3
(2.3)
Assets – derivatives
1.7
–
Liabilities – derivatives
(0.4)
(2.3)
Notional amounts (m)
USD
230.0
110.0
Average exchange rates
GBP:USD
1.26
1.25
Maturity dates
05/2025
05/2025
Hedge ratios1
1:1
1:1
Change in fair value of outstanding hedging instruments since 1
January (£m)
2.6
(1.8)
Change in value of hedged item used to determine hedge
effectiveness (£m)
(2.6)
1.8
1. The derivatives are denominated in the same currency as the foreign currency debt, therefore the hedge ratio is 1:1.
The Weir Group PLC Annual Report and Financial Statements 2024
222
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Financial risk management
Financial risk management of the Group is carried out by Group Treasury in conjunction with
individual subsidiaries. The principal financial risks to which the Group is exposed are market
risk, liquidity risk and credit risk.
Market risk
The Group is exposed to foreign exchange risk and interest rate risk in the ordinary course of
business.
Foreign exchange risk
The Group is exposed to both transactional and translational foreign exchange risk.
Transactional risk arises when subsidiaries enter into transactions denominated in currencies
other than their functional currency for operational or financing purposes or when the Group’s
Treasury function enters into transactions for financing or risk management purposes.
Translational risk arises on the translation of overseas earnings and investments into Sterling
for consolidated reporting purposes. Foreign currency transactional and translational risk could
result in volatility in reported consolidated earnings and net assets.
In respect of transactional foreign currency risk, the Group maintains a policy that all operating
units eliminate exposures on committed foreign currency transactions, usually by entering into
forward foreign currency contracts through the Group’s Treasury function. Certain operating
units apply cash flow hedge accounting in accordance with IFRS 9. The Group does not
engage in any speculative foreign exchange transactions.
The Group has material foreign investments in the US, Australia, Canada, Europe, South
America and South Africa. In respect of translational risk, the Group has a policy of partially
hedging its net investment exposure to US Dollar (US$). This is achieved through designating
an element of US$ denominated borrowings and forward currency contracts as net
investment hedges against the Group’s investments. The Group does not hedge the
translational exposure arising from profit and loss items.
Sensitivity to foreign exchange rates
The Group considers the most significant transactional foreign exchange risk relates to the US
Dollar, Australian Dollar, Euro and Canadian Dollar. The table below shows the impact of
movements in derivative valuation as a result of a weakening of these currencies. In the
Consolidated Income Statement, these amounts are partially offset by the retranslation of
foreign currency denominated receivables and payables. The table also shows the impact of
movements in foreign currency debt designated in net investment hedges.
Transactional foreign exchange
Increase in
currency
rate
Effect on
profit
gain (loss)
£m
Effect on
equity
gain (loss)
£m
2024
US Dollar
+25%
(40.6)
127.8
Australian Dollar
+25%
9.5
–
Euro
+25%
(8.9)
–
Canadian Dollar
+25%
(16.5)
–
2023
US Dollar
+25%
6.2
125.4
Australian Dollar
+25%
6.8
–
Euro
+25%
(6.2)
–
Canadian Dollar
+25%
(12.6)
–
The Weir Group PLC Annual Report and Financial Statements 2024
223
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
The Group is also exposed to translational foreign exchange risk as a result of its global
operations and therefore the earnings of the Group will fluctuate due to changes in foreign
exchange rates in relation to Sterling. The Group’s operating profit before adjusting items was
denominated in the following currencies.
2024
£m
2023
£m
US Dollar
206.8
165.6
Australian Dollar
106.3
79.7
Chilean Peso
72.5
69.0
Canadian Dollar
71.8
78.8
Euro
33.0
34.6
South African Rand
16.6
24.8
Brazilian Real
14.9
18.8
Indian Rupee
8.1
6.8
Chinese Yuan
5.6
11.0
UK Sterling
(65.3)
(34.4)
Other
1.8
4.1
Adjusted operating profit
472.1
458.8
Interest rate risk
The Group is exposed to interest rate risk on its outstanding borrowings. Changes in interest
rates will affect future interest cash flows on floating-rate borrowings and the fair value of
fixed-rate borrowings.
The earnings of the Group are sensitive to changes in interest rates in respect of floating-rate
borrowings. As at 31 December 2024, none (2023: 10%) of the Group’s borrowings were at
floating interest rates. The interest rate profile of the Group’s interest-bearing borrowings were
as follows.
2024
2023
Floating-rate
£m
Fixed-rate
£m
Total
£m
Floating-rate
£m
Fixed-rate
£m
Total
£m
US Dollar
–
(639.6)
(639.6)
–
(626.8)
(626.8)
UK Sterling
–
(300.0)
(300.0)
(100.0)
(300.0)
(400.0)
Sensitivity to interest rates
Based on borrowings at 31 December 2024, a 1% increase in interest rates would have a £nil
(2023: £1.0m) impact on the profit before tax and amortisation of the Group. This assumes that
the change in interest rates is effective from the beginning of the period and that all other
variables are constant throughout the period.
Liquidity risk
Liquidity risk is the risk that the Group is unable to meet its financial liabilities as they fall due.
Liquidity risk is managed by monitoring forecast and actual cash flows and ensuring that
sufficient committed facilities are in place to meet possible downside scenarios. The Group’s
objective is to maintain a balance between continuity of funding and flexibility through the use
of fixed-rate notes, bank loans and bank overdrafts. Further details of the Group’s borrowing
facilities are disclosed in note 20.
The tables below show only the financial liabilities of the total Group by maturity. The amounts
disclosed in the table are undiscounted cash flows and may therefore not agree to the
amounts disclosed in the Consolidated Balance Sheet.
The Group manages its liquidity to ensure that it always has sufficient funding to grow the
business and is able to meet its obligations as they fall due.
Year ended 31 December 2024
Total Group
Less than 1
year
£m
1 to 2 years
£m
2 to 5 years
£m
More than 5
years
£m
Total
£m
Forward foreign currency
contracts - net outflow
0.1
–
–
–
0.1
Cash flows relating to
derivative financial liabilities
0.1
–
–
–
0.1
Trade & other payables
excluding statutory liabilities &
deferred income
(492.0)
–
–
–
(492.0)
Leases
(31.3)
(28.0)
(49.9)
(55.9)
(165.1)
Bank overdrafts
(29.5)
–
–
–
(29.5)
Fixed-rate notes
(34.7)
(666.7)
(341.3)
–
(1,042.7)
Cash flows relating to non-
derivative financial liabilities
(587.5)
(694.7)
(391.2)
(55.9)
(1,729.3)
(587.4)
(694.7)
(391.2)
(55.9)
(1,729.2)
The Weir Group PLC Annual Report and Financial Statements 2024
224
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Year ended 31 December 2023
Total Group
Less than 1
year
£m
1 to 2 years
£m
2 to 5 years
£m
More than 5
years
£m
Total
£m
Forward foreign currency
contracts - net outflow
(1.4)
2.4
–
–
1.0
Cash flows relating to
derivative financial liabilities
(1.4)
2.4
–
–
1.0
Trade & other payables
excluding statutory liabilities
& deferred income
(469.3)
(0.6)
–
–
(469.9)
Leases
(33.4)
(26.1)
(45.1)
(34.2)
(138.8)
Bank overdrafts
(259.8)
–
–
–
(259.8)
Bank loans
(5.8)
(5.8)
(113.4)
–
(125.0)
Fixed-rate notes
(34.4)
(34.4)
(995.6)
–
(1,064.4)
Cash flows relating to non-
derivative financial liabilities
(802.7)
(66.9)
(1,154.1)
(34.2)
(2,057.9)
(804.1)
(64.5)
(1,154.1)
(34.2)
(2,056.9)
Credit risk
The Group is exposed to credit risk to the extent of non-payment by either its customers or the
counterparties to its derivative financial instruments.
The Group’s credit risk is primarily attributable to its trade receivables with risk spread over a
large number of countries and customers, with no significant concentration of risk. Where
appropriate, the Group endeavours to minimise risk by the use of trade finance instruments
such as letters of credit and insurance. In addition, applicable credit worthiness checks are
undertaken with external credit rating agencies before entering into contracts with customers
and credit limits are set as appropriate and enforced. As shown in note 18, the trade
receivables presented in the balance sheet are net of the expected credit loss allowance. Refer
to note 18 for details of the loss allowance calculation.
In certain circumstances, operating entities are permitted to make use of invoice discounting
facilities, primarily customer supply chain financing arrangements, to reduce counterparty
credit risk. The arrangements are assessed to ensure the entity has transferred substantially all
the risks and rewards of ownership of the receivables, allowing the derecognition of the
receivables in their entirety. The cash when received is recognised as a working capital
movement and presented in cash generated from operations. The total amount of receivable
invoices discounted at the year end and therefore derecognised was £34.8m (2023: £33.0m)
and this is reflected in the working capital cash flows section of note 26. The fees incurred as
part of the invoice discounting programme are as shown in note 7.
The Group’s exposure to the credit risk of financial instruments is limited by the adherence to
counterparty credit limits, and by only trading with counterparties that have an investment
grade credit rating or better at contract inception, based upon ratings provided by the major
credit rating agencies. Exposures to those counterparties are regularly reviewed and, when the
market view of a counterparty’s credit quality changes, adjusted as considered appropriate.
The maximum exposure to credit risk is equal to the carrying value of the financial assets of
the Group.
31. Capital management
The primary objective of the Group’s capital management is to ensure that it maintains robust
capital ratios in order to support its business and maximise Shareholder value.
The Group manages its capital structure and makes adjustments in light of changes in
economic conditions. To maintain or adjust the capital structure, the Group may adjust the
dividend payment to Shareholders, return capital to Shareholders or issue new shares. The
Group’s banking arrangements include bi-annual financial covenants based on adjusted net
debt to EBITDA (not greater than 3.5) and adjusted interest cover (not less than 3.5). The Group
has complied with these covenants throughout the reporting period and monitors capital
using the following indicators.
Net debt to EBITDA cover – covenant basis
Net debt to EBITDA comprises net debt divided by operating profits from total operations
before exceptional and other adjusting items, intangibles amortisation, depreciation and
excluding the impact of IFRS 16 ‘Leases’.
For the purposes of the covenants required by the Group’s lenders, net debt is to be
converted at the exchange rate used in the preparation of the Group’s Consolidated Income
Statement and Consolidated Cash Flow Statement, i.e. average rate. In addition, results of
businesses acquired in the financial year have to be included as if the acquisitions occurred at
the start of the financial year, while the results of businesses disposed of in the year are to be
excluded.
The Group considers the ratio of net debt to EBITDA on a covenant basis to be the key metric
from a capital management perspective. The Group seeks to maintain the ratio between 0.5 to
1.5 times, with up to 2.0 times for acquisitions.
2024
2023
Net debt at average exchange rates (£m)
390.2
573.9
Adjusted EBITDA from continued operations (note 3) (£m)
561.9
542.5
Adjustment for IFRS 16 (£m)
(30.5)
(35.8)
Adjusted EBITDA – covenant basis (£m)
531.4
506.7
Net debt to adjusted EBITDA cover (ratio)
0.7
1.1
The Weir Group PLC Annual Report and Financial Statements 2024
225
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Interest cover – covenant basis
Interest cover comprises adjusted operating profit from total operations divided by adjusted
net finance costs (excluding other finance costs) and excluding the impact of IFRS 16 ‘Leases’.
2024
2023
Adjusted EBITA from continuing operations (note 3) (£m)
484.1
471.0
Adjustment to exclude the impact of IFRS 16 (£m)
1.4
(4.2)
Operating profit – covenant basis (£m)
485.5
466.8
Adjusted net finance costs (excluding other finance costs) –
covenant basis (£m)
38.1
44.0
Interest cover (ratio) – covenant basis
12.7
10.6
Gearing ratio
Gearing comprises net debt divided by total equity. Net debt comprises cash and short-term
deposits and interest-bearing loans and borrowings (note 26).
2024
2023
Net debt (£m)
534.6
690.1
Total equity (£m)
1,853.6
1,699.7
Gearing ratio (%)
28.8
40.6
32. Exchange rates
The principal exchange rates applied in the preparation of these financial statements were as
follows.
Average rate (per £)
2024
2023
US Dollar
1.28
1.24
Australian Dollar
1.94
1.87
Euro
1.18
1.15
Canadian Dollar
1.75
1.68
Chilean Peso
1,205.92
1,044.69
South African Rand
23.42
22.94
Brazilian Real
6.89
6.21
Chinese Yuan
9.20
8.81
Indian Rupee
106.94
102.66
Closing rate (per £)
2024
2023
US Dollar
1.25
1.28
Australian Dollar
2.02
1.87
Euro
1.21
1.15
Canadian Dollar
1.80
1.69
Chilean Peso
1,247.41
1,124.43
South African Rand
23.65
23.30
Brazilian Real
7.72
6.19
Chinese Yuan
9.14
9.06
Indian Rupee
107.17
105.96
33. Events after the balance sheet date
On 23 January 2025, the Group announced plans to optimise capacity across its Minerals
Division’s Europe, Middle East, and Africa (EMEA) region, with the objective of bringing the
business closer to its key customers and enhancing efficiency. As part of this, a consultation
process has been initiated with employees on a proposal regarding the closure of its
manufacturing site in Todmorden, UK. The consultation process is ongoing and is expected to
complete around the end of March 2025. If the proposal is implemented, this would result in
the closure of the Todmorden plant by the end of 2025 with production being relocated to
other facilities in the EMEA region. The associated financial impact cannot be fully determined
until the outcome of the consultation and other aspects of the proposed restructuring plan
are known.
The Weir Group PLC Annual Report and Financial Statements 2024
226
Notes to the Group Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Company Balance Sheet
at 31 December 2024
Note
31
December
2024
£m
31
December
2023
£m
ASSETS
Non-current assets
Intangible assets
3
–
0.1
Property, plant & equipment
4
8.7
9.7
Investments in subsidiaries & loans
5
3,970.2
4,062.4
Deferred tax assets
6
35.3
19.8
Trade & other receivables
7
30.0
34.2
Retirement benefit plan assets
8
32.6
30.1
Total non-current assets
4,076.8
4,156.3
Current assets
Trade & other receivables
7
276.7
194.8
Derivative financial instruments
9
20.4
14.3
Cash & short-term deposits
24.4
27.3
Total current assets
321.5
236.4
Total assets
4,398.3
4,392.7
LIABILITIES
Current liabilities
Interest-bearing loans & borrowings
11
1,394.4
1,237.9
Trade & other payables
10
88.3
56.5
Derivative financial instruments
9
18.1
14.3
Provisions
12
3.9
6.0
Total current liabilities
1,504.7
1,314.7
Non-current liabilities
Interest-bearing loans & borrowings
11
1,089.3
1,266.4
Derivative financial instruments
9
–
2.3
Deferred tax liabilities
6
8.0
7.3
Retirement benefit plan deficits
8
0.7
0.8
Total non-current liabilities
1,098.0
1,276.8
Total liabilities
2,602.7
2,591.5
NET ASSETS
1,795.6
1,801.2
Note
31
December
2024
£m
31
December
2023
£m
CAPITAL & RESERVES
Share capital
13
32.5
32.5
Share premium
582.3
582.3
Merger reserve
13
332.6
332.6
Treasury shares
13
(37.3)
(29.0)
Capital redemption reserve
13
0.5
0.5
Special reserve
13
1.8
1.8
Hedge accounting reserve
13
0.1
(0.5)
Retained earnings
883.1
881.0
TOTAL EQUITY
1,795.6
1,801.2
In accordance with the concession granted under section 408 of the Companies Act 2006, the
Income Statement and Statement of Comprehensive Income of the Company have not been
separately presented in these financial statements. The profit of the Company was £94.5m
(2023: £215.0m).
The financial statements on pages 227 to 238 were approved by the Board of Directors on
27 February 2025 and signed on its behalf by:
Jon Stanton
Director
Brian Puffer
Director
The Weir Group PLC Annual Report and Financial Statements 2024
227
Strategic Report
Governance
Financial Statements
Additional Information
Company Statement of Changes in Equity
for the year ended 31 December 2024
Share
capital
£m
Share
premium
£m
Merger
reserve
£m
Treasury
shares
£m
Capital
redemption
reserve
£m
Special
reserve
£m
Hedge
accounting
reserve
£m
Retained
earnings
£m
Total
equity
£m
At 1 January 2023
32.5
582.3
332.6
(14.3)
0.5
1.8
—
785.9
1,721.3
Profit for the year
—
—
—
—
—
—
—
215.0
215.0
Cost of hedging taken to equity on fair value hedges
—
—
—
—
—
—
(0.8)
—
(0.8)
Reclassification adjustments on fair value hedges
—
—
—
—
—
—
0.1
—
0.1
Remeasurements on defined benefit plans
—
—
—
—
—
—
—
(29.0)
(29.0)
Tax credit relating to above items
—
—
—
—
—
—
0.2
7.2
7.4
Total net comprehensive (expense) income for the year
—
—
—
—
—
—
(0.5)
193.2
192.7
Cost of share-based payments inclusive of tax credit
—
—
—
—
—
—
—
7.1
7.1
Dividends (note 2)
—
—
—
—
—
—
—
(95.9)
(95.9)
Purchase of shares for employee share plans
—
—
—
(24.0)
—
—
—
—
(24.0)
Exercise of share-based payments
—
—
—
9.3
—
—
—
(9.3)
—
At 31 December 2023
32.5
582.3
332.6
(29.0)
0.5
1.8
(0.5)
881.0
1,801.2
Profit for the year
—
—
—
—
—
—
—
94.5
94.5
Gain of hedging taken to equity on fair value hedges
—
—
—
—
—
—
0.5
—
0.5
Reclassification adjustments on fair value hedges
—
—
—
—
—
—
0.3
—
0.3
Remeasurements on defined benefit plans
—
—
—
—
—
—
—
1.6
1.6
Tax charge relating to above items
—
—
—
—
—
—
(0.2)
(0.5)
(0.7)
Total net comprehensive income for the year
—
—
—
—
—
—
0.6
95.6
96.2
Cost of share-based payments inclusive of tax credit
—
—
—
—
—
—
—
11.2
11.2
Dividends (note 2)
—
—
—
—
—
—
—
(99.8)
(99.8)
Purchase of shares for employee share plans
—
—
—
(13.2)
—
—
—
—
(13.2)
Exercise of share-based payments
—
—
—
4.9
—
—
—
(4.9)
—
At 31 December 2024
32.5
582.3
332.6
(37.3)
0.5
1.8
0.1
883.1
1,795.6
The Weir Group PLC Annual Report and Financial Statements 2024
228
The Weir Group PLC Annual Report and Financial Statements 2024
229
Strategic Report
Governance
Financial Statements
Additional Information
Notes to the Company Financial Statements
1. Accounting policies
Authorisation of financial statements and statement of compliance
The company financial statements of The Weir Group PLC (the ‘Company’) for the year ended
31 December 2024 (‘2024’) were approved and authorised for issue in accordance with a
resolution of the Directors on 27 February 2025. The comparative information is presented for
the year ended 31 December 2023 (‘2023’).
The Weir Group PLC is a public limited company limited by shares and incorporated in
Scotland, United Kingdom and is listed on the London Stock Exchange.
Basis of preparation
The company financial statements of The Weir Group PLC have been prepared on a going
concern basis under the historic cost convention and in accordance with FRS 101 and applied
in accordance with the provisions of the Companies Act 2006. These financial statements are
presented in Sterling. All values are rounded to the nearest 0.1 million pounds (£m) except
where otherwise indicated. The following disclosure exemptions from the requirements of IFRS
have been consistently applied in the preparation of these financial statements, in accordance
with FRS 101:
– Disclosures required by paragraphs 45(b) and 46-52 of IFRS 2 ‘Share-based payment’ can
be found in note 28 to the Group Financial statements;
– IFRS 7 ‘Financial instruments: disclosures’ exemption has been taken as a result of the
disclosures in note 30 to the Group Financial Statements;
– IAS 7 ‘Statement of cash flows’;
– Disclosure of key management compensation as required by paragraph 17 of IAS 24
‘Related party disclosures’;
– Disclosure of related party transactions with wholly owned subsidiaries as required by IAS 24
‘Related party disclosures’;
– Paragraph 38 of IAS 1 ‘Presentation of financial statements’ comparative information
requirements in respect of paragraph 79(a)(iv) of IAS 1; paragraph 73(e) of IAS 16 ‘Property,
plant and equipment’; and paragraph 118(e) of IAS 38 ‘Intangible assets’;
– Paragraph 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and paragraphs
134-136 of IAS 1 ‘Presentation of financial statements’; and
– Paragraphs 52 and 58 of IFRS 16 ‘Leases’.
The Company is the parent of the group of companies ultimately owned by the Company and
known as the Weir Group (the ‘Group’). Its principal activity is to act as a holding company for
the Group and perform the head office function.
The accounting policies which follow are consistent with those of the previous period with the
exception of the following standards, amendments and interpretations which are effective for
the year ended 31 December 2024:
– Classification of Liabilities as Current or Non-current liabilities with covenants - Amendments
to IAS 1;
– Lease Liability in Sale and Leaseback - Amendments to IFRS 16; and
– Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7.
The amendments listed above are not considered to have a material impact on the financial
statements.
The following new accounting standards and interpretations have been published but are not
mandatory for 31 December 2024:
– IFRS18 Presentation and disclosure in the financial statements;
– Amendments to IAS 21 - Lack of exchangeability;
– Amendments to IFRS 9 and IFRS 7 - Amendments to the classification and measurement of
financial instruments.
These amendments have not been early adopted by the Company. These standards are not
expected to have a material impact on the Company in the current or future reporting periods
or on foreseeable future transactions.
Use of estimates and judgements
The Company’s material accounting policy information is set out below. The preparation of the
Company Financial Statements, in conformity with FRS 101, requires management to make
judgements that affect the application of accounting policies and estimates that impact the
reported amounts of assets, liabilities, income and expense.
Management bases these judgements and estimates on a combination of past experience,
professional expert advice and other evidence that is relevant to each individual circumstance.
Actual results may differ from these judgements and estimates, which are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
Critical estimates
The area where management considers the more complex estimates are required is in
respect of retirement benefits. The assumptions underlying the valuation of retirement benefit
assets and liabilities include discount rates, inflation rates and mortality assumptions which are
based on actuarial advice. Changes in these assumptions could have a material impact on the
measurement of the Company’s retirement benefit obligations. Sensitivities to changes in key
assumptions are provided in note 8.
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
230
Notes to the Company Financial Statements
continued
Foreign currency translation
The presentational and functional currency of the Company is Sterling. Transactions
denominated in foreign currencies are translated into the Company’s functional currency
at the exchange rate ruling on the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the exchange rate ruling on the balance
sheet date. Currency translation differences are recognised in the Income Statement.
Revenue recognition
Revenue is the consideration received or receivable which reflects the amount expected to be
received, mainly the transaction price. Revenue will only be recognised when the fulfilment of
performance obligations is achieved. Revenue mainly relates to transactions with other entities
within the Group, primarily in relation to management recharges.
Property, plant & equipment
Property, plant and equipment comprises owned assets and right-of-use assets that do not
meet the definition of investment property.
Owned assets
Owned property, plant and equipment is stated at cost less accumulated depreciation and
any recognised impairment losses. Depreciation of property, plant and equipment is provided
on a straight-line basis so as to charge the cost less residual value, to the Income Statement
over the expected useful life of the asset concerned, and is in the following ranges:
Long leasehold land and buildings
20 years
Office and computer equipment
3 – 10 years
Investments
Investments in subsidiaries are held at cost less accumulated impairment losses.
Loans are carried at amortised cost using the effective interest method.
Applicable Group accounting policies
The following significant accounting policies are consistent with those applied to the Group
Financial Statements.
– Right-of-use asset and lease liability;
– Impairment of non-current assets;
– Post-employment benefits;
– Share-based payments;
– Financial assets & liabilities;
– Derivative financial instruments;
– Treasury shares; and
– Taxation.
2. Profit attributable to the Company
The profit dealt with in the financial statements of the Company was £94.5m (2023: £215.0m).
The corporate tax credit dealt with in the accounts of the Company was £31.7m (2023:
£26.5m).
Dividends
For details of dividends see note 11 to the Group Financial Statements.
Employee benefits expense
2024
£m
2023
£m
Wages & salaries
28.5
32.8
Social security costs
4.0
4.4
Defined contribution plans
1.0
1.0
Share-based payments – equity settled transactions
10.4
7.0
43.9
45.2
During 2024, the average number of people employed by the Company was 238 (2023: 301).
Directors
Details of Directors’ remuneration, benefits and SRP awards are included in the Remuneration
report on pages 113 to 147, and in note 29 to the Group Consolidated Financial Statements.
Auditors’ remuneration
The total fees payable by the Company to PricewaterhouseCoopers LLP (PwC) for work
performed in respect of the audit of the Company were £36,250 (2023: £35,000). Fees paid
to PwC for non-audit services to the Company itself are not disclosed in these financial
statements as the Group’s Consolidated Financial Statements, in which the Company is
included, are required to disclose such fees on a consolidated basis.
Fees payable by the Company to Ernst & Young LLP for work performed in respect of the audit
of the pension scheme were £48,500 (2023: £51,500).
The Weir Group PLC Annual Report and Financial Statements 2024
231
Notes to the Company Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
3. Intangible assets
Purchased
software
total
£m
Cost
At beginning and end of the year
0.7
Accumulated amortisation
At 1 January 2024
0.6
Charge for the year
0.1
At 31 December 2024
0.7
Net book value at 31 December 2023
0.1
Net book value at 31 December 2024
–
4. Property, plant & equipment
Owned long
leasehold
land &
buildings
£m
Owned
office &
computer
equipment
£m
Right-of-
use land &
buildings
£m
Right-of-
use plant &
equipment
£m
Total
£m
Cost
At 1 January 2024
3.7
4.1
8.1
0.2
16.1
Additions
–
0.3
–
–
0.3
Reclassifications between
categories
–
0.2
–
(0.2)
–
At 31 December 2024
3.7
4.6
8.1
–
16.4
Accumulated depreciation
At 1 January 2024
1.5
2.2
2.5
0.2
6.4
Charge for the year
0.2
0.6
0.5
–
1.3
Reclassifications between
categories
–
0.2
–
(0.2)
–
At 31 December 2024
1.7
3.0
3.0
–
7.7
Net book value at 31
December 2023
2.2
1.9
5.6
–
9.7
Net book value at 31
December 2024
2.0
1.6
5.1
–
8.7
Right-of-use assets
The Company leases buildings and IT equipment. The current and non-current lease
liabilities are disclosed in note 11. The following table shows the breakdown of the lease
expense between amounts charged to operating profit and amounts charged to finance costs
in the year.
2024
£m
2023
£m
Depreciation of right-of-use assets
0.5
0.6
Charge to operating profit
0.5
0.6
Finance cost – interest expense related to lease liabilities
0.2
0.2
Charge to profit before tax
0.7
0.8
The total cash outflow in the year is £0.8m (2023: £0.8m).
The Weir Group PLC Annual Report and Financial Statements 2024
232
Notes to the Company Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
5. Investments in subsidiaries & loans
Subsidiaries
shares
£m
Loans
£m
Total
£m
Cost
At 1 January 2024
4,960.3
863.8
5,824.1
At 31 December 2024
4,960.3
771.6
5,731.9
Impairment
At beginning and end of the year
1,757.2
4.5
1,761.7
Net book value at 31 December 2023
3,203.1
859.3
4,062.4
Net book value at 31 December 2024
3,203.1
767.1
3,970.2
The subsidiaries and joint ventures of the Company are listed on pages 239 to 245.
The loan balances above are amounts owed by subsidiaries and represent long-term funding
arrangements under term or cash management loans.
Over the term of the loans, the Company accounts for its credit risk by appropriately providing
for expected credit losses on a timely basis. The majority of the Company’s loans are
repayable on demand by the Company. In calculating the expected credit loss allowance of
repayable on demand loans, the Company considers the financial position and internal
forecasts of each subsidiary and their ability to repay on request, or over time. For those loans
repayable on maturity, expected credit losses are calculated using market-implied
probabilities of default and loss-given-default estimations.
The Company considers the probability of default upon initial recognition of an asset and
subsequently whether there has been a significant increase in credit risk on an ongoing basis
throughout each reporting year. To assess whether there is a significant increase in credit risk,
the Company compares the risk of a default occurring on the asset as at the reporting date
with the risk of default as at the date of initial recognition. The primary indicators considered
are actual or expected significant adverse changes in business and financial conditions that
are expected to cause a significant change to the borrower’s ability to meet its obligations.
Independent of the primary indicators above, a significant increase in credit risk is presumed
if a debtor is more than 30 days past due in making a contractual payment. A default on a
financial asset is considered to occur when the counterparty fails to make contractual
payments within 90 days of when they fall due. A write-off is considered to be required when
there is no reasonable expectation of recovery, or when a debtor fails to make contractual
payments greater than 120 days past due. Where loans or receivables have been written off,
the Company continues to engage in enforcement activity to attempt to recover the
receivable due. Where recoveries are made, these are recognised in the Income Statement.
As at 31 December 2024 and 31 December 2023, the loss allowances for all loans to
subsidiaries were measured at an amount equal to 12 month expected credit losses.
The carrying value of loans and investments is considered to be supported by the value in use
and market capitalisation of the Group.
6. Deferred tax
2024
£m
2023
£m
Deferred income tax assets
Other timing differences
35.3
19.8
35.3
19.8
Deferred income tax liabilities
Retirement benefits
(8.0)
(7.3)
(8.0)
(7.3)
Net deferred income tax
27.3
12.5
Deferred tax assets of £35.3m include £20.2m (2023: £9.7m) recognised in respect of losses
suffered in current and preceding periods. The movement in the year is a result of prior year
adjustments and losses in the current period. The deferred tax asset has been recognised on
the basis that the losses can be carried forward indefinitely and are available to surrender
against UK taxable profits of the UK group in the future.
Deferred tax liabilities of £8.0m (2023: £7.3m) relate entirely to retirement benefits. The
movement in the year is a direct result of the movement in the UK pension plan during 2024.
The Weir Group PLC Annual Report and Financial Statements 2024
233
Notes to the Company Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
7. Trade & other receivables
Trade and other receivables presented as non-current on the face of the Company Balance
Sheet of £30.0m (2023: £34.2m) are in respect of a prepayment recognised as a result of the
pension funding partnership structure. Further information pertaining to this arrangement can
be found in note 8.
2024
£m
2023
£m
Amounts recoverable within one year:
Amounts owed by subsidiaries
211.5
144.6
Tax receivable
52.2
38.4
Other debtors
5.3
6.5
Prepayments & accrued income
7.7
5.3
276.7
194.8
Amounts owed by subsidiaries relate to management recharges in respect of support
services provided. Intercompany balances are typically managed on a Group basis, and the
Company’s credit risk management practices reflect this. The Group applies the IFRS 9
'Financial instruments' simplified approach to measuring expected credit losses, which uses
a lifetime expected loss allowance for all such trade receivables.
The amounts owed by subsidiaries do not carry an interest charge, and it is the Company’s
expectation that materially all the amounts owed by subsidiaries are fully recoverable over
time. Expected credit losses at both 31 December 2024 and 31 December 2023 are therefore
immaterial, and there has been no material change to the expected loss allowance during
the year.
8. Retirement benefits
At the balance sheet date, the Company has a funded defined benefit plan (the Main Plan)
and an unfunded retirement benefit plan for retired Executive Directors. The Company also
operates a defined contribution plan, the contributions to which are in addition to those set
out below, and are charged directly to the Consolidated Income Statement.
For the defined benefit plans, benefits are related to service and final salary. The Main Plan closed to
future accrual of benefits effective from 30 June 2015.
The weighted average duration of the expected benefit payments from the Main Plan is
around 11 years.
The current funding target for the Main UK Plan is to maintain assets equal to the value of the
accrued benefits. The Main Plan holds three insurance policies which match the liabilities in
respect of a significant proportion of deferred and retired pensioners.
The defined benefit plans expose the Company to a number of risks:
Uncertainty in benefit payments
The value of the Company’s liabilities for the defined benefit plans will ultimately depend on
the amount of benefits paid out. This in turn will depend on the level of inflation (for those
benefits that are subject to some form of inflation protection) and how long individuals live.
This risk is significantly reduced through the insurance policies held.
Volatility in asset values
The Company is exposed to future movements in the values of assets held in the defined
benefit plans to meet future uninsured benefit payments.
Uncertainty in cash funding
The regulatory framework in the UK requires the Trustees and Company to agree upon
the assumptions underlying the funding target, and then to agree upon the necessary
contributions required to recover any deficit at the valuation date. There is a risk to the
Company that adverse experience could lead to a requirement for the Company to make
considerable contributions to recover any deficit. This risk is significantly reduced through
the insurance policies held. In addition, the Company is also exposed to adverse changes
in pension regulation.
Assumptions
The significant actuarial assumptions used for accounting purposes reflect prevailing market
conditions and are as follows.
2024
2023
Significant actuarial assumptions:
Discount rate (% pa)
5.45
4.50
Retail Prices Inflation (RPI) (% pa)
3.20
3.10
Post-retirement mortality (life expectancies in years):
Current pensioners at 65 – male
20.5
21.0
Current pensioners at 65 – female
22.9
22.9
Future pensioners at 65 – male
21.4
22.3
Future pensioners at 65 – female
24.0
24.4
Other related actuarial assumptions:
Rate of increases for pensions in payment (% pa)
Pre 6 April 2006 service
3.05
3.00
Post 5 April 2006 service
2.10
2.10
Consumer Prices Inflation (CPI) assumption (% pa)
2.65
2.50
The Weir Group PLC Annual Report and Financial Statements 2024
234
Notes to the Company Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
The assumptions used to determine end-of-year benefit obligations are also used to calculate
the following year’s cost.
The post-retirement mortality assumptions allow for expected increases in longevity. The
‘current’ disclosures above relate to assumptions based on longevity (in years) following
retirement at the balance sheet date, with ‘future’ being that relating to a member retiring
in 2045 (in 20 years' time).
The assets and liabilities of the plans are as follows.
2024
£m
2023
£m
Plan assets at fair value:
Corporate bonds (quoted)
36.7
–
Government bonds (quoted)
106.8
170.8
Insurance policies (unquoted)
288.5
336.4
Private debt (unquoted)
29.8
37.1
Multi Asset Credit Funds
42.4
39.7
Cash (quoted)
15.1
8.7
Fair value of plan assets
519.3
592.7
Present value of funded obligations
(486.7)
(562.6)
Net asset for funded obligations
32.6
30.1
Present value of unfunded obligations
(0.7)
(0.8)
Net asset
31.9
29.3
Plans in surplus
32.6
30.1
Plans in deficit
(0.7)
(0.8)
Of the government bonds held at 31 December 2024, 60% (2023: 75%) are fixed interest
bonds. The pension plans have not directly invested in any of the Company’s own financial
instruments, or in properties or other assets used by the Company.
The investment strategy for the UK is to primarily hold government bonds and corporate
bonds to meet the assessed value of the benefits promised for the non-insured members,
along with holding private debt and multi-asset credit funds. The insured members are
backed by the insurance policies held within the Scheme.
The value of the insurance policies is set equal to the estimated FRS101 liability. The valuation
uses the same methodology as the associated liability based on the census data included
in the most triennial valuation, adjusted for movements in actuarial assumptions and
inflation experience.
The Private Debt holdings reflect investments by the UK Main Plan. As these funds are less
frequently traded, the value shown reflects the 30 September 2024 valuations, adjusted for
capital calls and distributions from this date to 31 December 2024.
The change in net liabilities recognised in the Company Balance Sheet is comprised as follows.
2024
£m
2023
£m
Opening net assets
29.3
50.0
Expense charged to the Income Statement
0.9
2.0
Amount recognised in Statement of Comprehensive Income
1.6
(29.0)
Employer contributions
0.1
6.3
Closing net assets
31.9
29.3
The amounts recognised in the Income Statement and in the Statement of Comprehensive
Income for the year are analysed as follows.
2024
£m
2023
£m
Recognised in the Income Statement
Administrative expenses
(0.4)
(0.6)
Included in operating profit
(0.4)
(0.6)
Interest on net pension asset
1.3
2.6
Total credit charged to the Income Statement
0.9
2.0
Recognised in the Statement of Comprehensive Income
Actual return on plan assets
(37.0)
12.5
Less: interest on plan assets
(25.9)
(28.7)
(62.9)
(16.2)
Other actuarial gains (losses) due to:
Changes in financial assumptions
44.4
(10.1)
Changes in demographic assumptions
11.5
7.2
Experience on benefit obligations
8.6
(9.9)
Actuarial gains (losses) recognised in the Statement of
Comprehensive Income
1.6
(29.0)
The Weir Group PLC Annual Report and Financial Statements 2024
235
Notes to the Company Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Administration expenses are recognised in operating costs and interest on net pension liability
is recognised in other finance costs.
Pension contributions are determined with the advice of independent qualified actuaries on
the basis of regular valuations using the projected unit method. The Company made no
special contributions in 2024 (2023: £6.2m) in addition to the Company’s regular contributions.
The latest actuarial funding valuation of the Main Plan was completed in 2024. As the Plan was
in a funding surplus, no recovery plan was required and therefore no future deficit reduction
contributions are currently payable and the Scottish Limited Partnership previously in place to
fund pension contributions will be wound up.
The Company has taken legal advice regarding its UK arrangements to confirm the accounting
treatment under IFRIC 14 'IAS 19 - The limit on a defined benefit asset, minimum funding
requirements and their interaction' with regard to recognition of a surplus and also recognition
of a minimum funding requirement. This confirmed that there is no requirement to adjust the
balance sheet and that recognition of a current surplus is appropriate on the basis that the
Company has an unconditional right to a refund of a current (or projected future) surplus at
some point in the future. Having considered the position, taking account of the legal input
received and noting that the Trustees of the UK arrangements do not have discretionary
powers to unilaterally wind up the schemes without cause, the Directors of the Company have
concluded that the Company has an unconditional right to a refund of any surplus.
The Company is aware of a case involving Virgin Media and NTL Pension Trustee, which could
potentially lead to additional liabilities for some pension schemes and sponsors. The Company
has taken some initial legal advice and at this stage is not aware of any evidence to suggest
that the relevant legal requirements were not complied with, and therefore no further action
has been taken. No allowance has been made for any additional liabilities that may arise as a
result of this court ruling. The Company will continue to monitor any future developments.
The total Company contributions for 2025 are expected to be £0.1m.
Changes in the present value of the defined benefit obligations are analysed as follows.
2024
£m
2023
£m
Opening defined benefit obligations
(563.4)
(560.1)
Interest on benefit obligations
(24.6)
(26.1)
Benefits paid
36.1
35.6
Actuarial gains (losses) due to:
Changes in financial assumptions
44.4
(10.1)
Changes in demographic assumptions
11.5
7.2
Experience on benefit obligations
8.6
(9.9)
Closing defined benefit obligations
(487.4)
(563.4)
Changes in the fair value of plan assets are analysed as follows.
2024
£m
2023
£m
Opening plan assets
592.7
610.1
Interest on plan assets
25.9
28.7
Employer contributions
0.1
6.3
Administrative expenses
(0.4)
(0.6)
Benefits paid
(36.1)
(35.6)
Actual return on plan assets less interest on plan assets
(62.9)
(16.2)
Closing plan assets
519.3
592.7
The Weir Group PLC Annual Report and Financial Statements 2024
236
Notes to the Company Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
Sensitivity analysis
Changes in key assumptions can have a significant effect on the reported retirement benefit
obligation and the Income Statement expense for 2025. The effects of changes in those
assumptions are set out in the table below.
Increase
2024
£m
Decrease
2024
£m
Increase
2023
£m
Decrease
2023
£m
Discount rate
Effect on defined benefit obligation of a 1.0%
change
44.1
(52.5)
57.2
(69.5)
Effect on net funding position of a 1.0% change
24.0
(29.5)
31.3
(39.6)
RPI inflation (and associated assumptions)
Effect on defined benefit obligation of a 1.0%
change
(31.8)
25.9
(29.1)
29.7
Effect on net funding position of a 1.0% change
(20.9)
14.0
(14.1)
14.3
Life expectancy
Effect on defined benefit obligation of a 1 year
change
(19.2)
19.2
(26.5)
26.5
Effect on net funding position of a 1 year change
(4.6)
4.6
(4.7)
4.7
The impact on the net funding position is significantly reduced as a result of the insurance
policies held. In the absence of such policies, the impact on the net funding position would
be much closer to the significantly higher impact on the defined benefit obligation shown in
the table.
These sensitivities have been calculated to show the movement in the defined benefit
obligation and net funding position in isolation and assume no other changes in market
conditions at the accounting date. In practice, for example, a change in discount rate is unlikely
to occur without any movement in the value of the invested (non-insurance policy) assets
held by the plans.
9. Derivative financial instruments
2024
£m
2023
£m
Current assets
Forward foreign currency contracts designated as fair value hedges
1.7
–
Other forward foreign currency contracts
18.7
14.3
20.4
14.3
Current liabilities
Forward foreign currency contracts designated as fair value hedges
(0.4)
–
Other forward foreign currency contracts
(17.7)
(14.3)
(18.1)
(14.3)
Non-current liabilities
Forward foreign currency contracts designated as fair value hedges
–
(2.3)
–
(2.3)
The figures in the above table include derivative financial instruments where the counterparty
is a subsidiary of the Company.
Details of the hedging activities is provided in note 30 to the Group Financial Statements.
10. Trade & other payables
2024
£m
2023
£m
Amounts owed to subsidiaries
19.9
14.2
Tax payable
17.4
0.3
Other taxes & social security costs
2.6
2.4
Other creditors
17.0
9.1
Accruals & deferred income
31.4
30.5
88.3
56.5
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
237
Notes to the Company Financial Statements
continued
11. Interest-bearing loans & borrowings
2024
£m
2023
£m
Current
Bank overdrafts
3.0
240.4
Loans from subsidiaries
1,390.8
996.9
Lease liability
0.6
0.6
1,394.4
1,237.9
Non-current
Bank loans Note 1
(2.1)
97.7
Fixed-rate notes
936.0
922.3
Loans from subsidiaries
149.1
239.5
Lease liability
6.3
6.9
1,089.3
1,266.4
Note 1. 2024 balance relates to unamortised issue costs.
The loans from subsidiaries with a maturity date of less than one year are repayable in 2025
and have a weighted average interest rate of 4.92%. The loans for subsidiaries with a maturity
date greater than one year and less than two years are repayable in 2026 and have an interest
rate of 2.85%. The loans for subsidiaries with a maturity date greater than two years and less
than five years are repayable in 2029 and have an interest rate of 8.53%.
Details of the interest and repayment terms of the bank loans and fixed-rate notes can be
found in note 20 to the Group Financial Statements.
The table below shows the loans from subsidiaries by maturity. The amounts disclosed in the
table are the undiscounted cash flows and may therefore not agree to the amounts disclosed
in the Balance Sheet.
At 31 December 2024
Less than
1 year
£m
1 to 2 years
£m
2 to 5 years
£m
More than 5
years
£m
Total
£m
Loans from subsidiaries
1,422.8
59.0
112.9
—
1,594.7
At 31 December 2023
Less than
1 year
£m
1 to 2 years
£m
2 to 5 years
£m
More than 5
years
£m
Total
£m
Loans from subsidiaries
1,023.2
98.4
81.7
104.7
1,308.0
12. Provisions
Exceptional
items
£m
At 1 January 2024
6.0
Additions
16.7
Utilised
(18.8)
At 31 December 2024
3.9
Current 2024
3.9
Non-current 2024
–
At 31 December 2024
3.9
Current 2023
6.0
Non-current 2023
–
At 31 December 2023
6.0
The opening balance mainly relates to costs associated with the Performance Excellence
programme. Additions during the year were for the same purpose, therefore the closing
balance is predominantly costs related to the Performance Excellence programme.
The Weir Group PLC Annual Report and Financial Statements 2024
238
Notes to the Company Financial Statements
continued
Strategic Report
Governance
Financial Statements
Additional Information
13. Share capital & reserves
2024
£m
2023
£m
Allotted, called up & fully paid
Ordinary shares of 12.5p each
32.5
32.5
2024
Number
million
2023
Number
million
Treasury shares
At the beginning of the year
1.7
0.9
Purchase of shares in respect of equity settled share-based
payments
0.6
1.2
Utilised during the year in respect of equity settled share-based
payments
(0.3)
(0.4)
At the end of the year
2.0
1.7
Equity settled share-based payments
Share awards outstanding at the end of the year
1.8
1.5
Merger reserve
The merger reserve relates to the issue of new equity as part of the consideration paid for
an acquisition. Shares issued directly to ESCO shareholders on 12 July 2018, as part of the total
acquisition consideration, qualified for merger relief under Section 612 of the Companies
Act 2006 and resulted in an increase to the reserve of £323.2m. The remaining reserve balance
of £9.4m relates to shares issued in part consideration for the acquisition of Delta Industrial
Valves Inc. during 2015.
Capital redemption reserve
The capital redemption reserve was created by a repurchase and cancellation of own
shares during the 53 weeks ended 1 January 1999.
Special reserve
The premium of £1.8m arising on the issue of shares for the acquisition of the entire share
capital of Liquid Gas Equipment Limited in 1988 has been credited to a special reserve in
accordance with the merger relief provisions of the Companies Act 1985.
Hedge accounting reserve
This reserve records the portion of the gains or losses on hedging instruments used as
cash flow and fair value hedges that are determined to be effective.
14. Guarantees & legal claims
Guarantees
The Company has given guarantees in relation to the bank and other borrowings of
certain subsidiary companies amounting to £695.1m (2023: £754.8m) of which £174.7m
(2023: £175.3m) was utilised at 31 December 2024. These guarantees, recognised at fair value
under IFRS 9, do not have a material value at the balance sheet date and the likelihood of the
guarantees being called upon is considered remote.
Legal claims
The Company and certain subsidiaries are, from time-to-time, party to legal proceedings and
claims that arise in the normal course of business. Provisions have been made where the
Directors have assessed that a cash outflow is probable. All other claims are believed to be
remote or are not yet ripe.
15. Related party disclosures
The Company has taken advantage of the exemption under paragraph 8(k) of FRS 101 not
to disclose transactions with related parties that are wholly owned by a subsidiary of the
Company. The following table provides the total amount of transactions that have been
entered into with non-wholly owned related parties for the relevant financial year and
outstanding balances at the year end.
Related party
Group
charges
£m
Amounts
due by
£m
Weir ABF LP
2024
–
61.4
2023
–
57.3
Weir Minerals (India) Private Limited
2024
–
–
2023
(0.1)
–
Vulco S.A.
2024
0.3
0.1
2023
0.7
–
16. Financial risk management objectives and policies
The description of the Group’s financial risk management objectives and policies is provided
in note 30 to the Group Financial Statements. These financial risk management objectives and
policies also apply to the Company.
17. Events after the balance sheet date
Details of events occurring after the balance sheet date are provided in note 33 to the Group
Financial Statements.
The Weir Group PLC Annual Report and Financial Statements 2024
239
Strategic Report
Governance
Financial Statements
Additional Information
Additional Information
Subsidiary undertakings
The subsidiary undertakings of the Company as at 31 December 2024 are noted below. Unless otherwise indicated, the Company’s shareholdings are held indirectly.
Company Name
Country
Registered Office address
Class name
% of
class
Directly
Held By
PLC Note *
Alebras Aços e Peças
Ltda.
Brazil
2151 Avenida José Benassi, Sala
B, Parque Industrial, CEP
13.213-085., Brazil
Ordinary
100
Aspir Pty Ltd
Australia
1-5 Marden Street, Artarmon
NSW 2064, Australia
Ordinary
100
Bucyrus Blades de
Mexico S.A. DE C.V.
Mexico
Calle 14, Manzana 4, Lote 4,
Parque Industrial, Apartado
Postal 129, Atlacomulco, Mexico
Fixed Capital,
Variable
Capital
100
Bucyrus Blades Inc.
United States C T Corporation System, 4400
Easton Commons Way, Suite
125, Columbus OH 43219, United
States
Common
100
Bucyrus Blades of
Canada ULC
Canada
1800 – 510 West Georgia Street
Vancouver, BC V6B 0M3
Class A
Common
100
Carriere Industrial
Supply Limited
Canada
222 Bay Street, Suite 3000, P O
Box 53, Toronto ON M5K 1E7,
Canada
Common
100
CH Warman Asia
Limited
Malta
Level 2 West, Mercury Tower, The
Exchange Financial & Business
Centre, Elia Zammit Street, St.
Julian's, STJ 3155, Malta, STJ 3155,
Malta
Ordinary
100
CIS First Nations
Services Inc.
Canada
222 Bay Street, Suite 3000, P O
Box 53, Toronto ON M5K 1E7,
Canada
Common
100
Electric Steel Foundry
Company
United States 780 Commercial Street SE, Suite
100, Salem OR 97301, United
States
Fixed Capital 100
Envirotech (Pty)
Limited
South Africa 31 Isando Road, Isando, Gauteng,
1601, South Africa
A Ordinary,
Ordinary
100
ESCO - Bucyrus
Blades Canada
Canada
1800 – 510 West Georgia Street
Vancouver, BC V6B 0M3
Partnership
100
ESCO (UK) Holdings
Limited
England and
Wales
Ings Road, Doncaster, DN5 9SN
Ordinary
100
ESCO (UK) Limited
England and
Wales
Ings Road, Doncaster, DN5 9SN
Ordinary
100
% of
Directly
Held By
Company Name
Country
Registered Office address
Class name
class PLC*
ESCO (Xuzhou)
Trading Company
Limited
China
West of Dazhai Road, South of
Dazhai Road and Cui Zhuang
South Road, High-tech Industrial
Zone, Xuzhou City, Jiangsu
Province, China
Corporate
Relationship
100
ESCO (Xuzhou)
Wearparts Co., Ltd.
China
9 Huasheng Road, Xuzhou Hi-
Tech Industry Zone, Xuzhou City,
Jiangsu Province, China
Corporate
Relationship
100
ESCO Australia
Holdings Pty Limited
Australia
25 Trade Street, Lytton,
Queensland QLD 4178, Australia
Ordinary
100
ESCO Belgium SA
Belgium
Rue des Fours a Chaux 122,
Zoning Industriel, 7080 Frameries,
Belgium
Ordinary
100
ESCO Canada Finance
Company Inc.
Canada
1800 – 510 West Georgia Street
Vancouver, BC V6B 0M3
Common
100
ESCO Canada Ltd.
Canada
1800 – 510 West Georgia Street
Vancouver, BC V6B 0M3
Ordinary
100
ESCO Dunedin Pty Ltd Australia
25 Trade Street, Lytton,
Queensland QLD 4178, Australia
Ordinary
100
ESCO Elecmetal
Fundición Limitada
Chile
Calle Miraflores, Numero 222,
Piso veinticuatro, Santiago, Chile
Corporate
Relationship
50
ESCO Electric Steel
Foundry Company of
Africa (Pty) Ltd
South Africa Meadowview Business Estate
CNR Clulee and Meadowview
lane, Linbro Park, Johannesburg,
South Africa, 2090, South Africa
Ordinary
100
ESCO EMEA Holdings
(UK) Limited
England and
Wales
Ings Road, Doncaster, DN5 9SN
Ordinary
100
ESCO Engineering
Kingaroy Pty Ltd
Australia
25 Trade Street, Lytton,
Queensland QLD 4178, Australia
D-Ordinary,
F-Ordinary,
Ordinary
100
ESCO Engineering Pty.
Ltd.
Australia
25 Trade Street, Lytton, Queensland
QLD 4178, Australia
Ordinary
100
ESCO GmbH
Germany
Marie-Bernays Ring 1,
Moenchengladbach, 41199, Germany
Ordinary
100
ESCO GP Ltd.
Canada
1800 – 510 West Georgia Street,
Vancouver BC V6B 0M3 , Canada
Common
100
Directly
Subsidiary undertakings
continued
The Weir Group PLC Annual Report and Financial Statements 2024
240
% of
Held By
Company Name
Country
Registered Office address
Class name
class PLC*
Strategic Report
Governance
Financial Statements
Additional Information
Company Name
Country
Registered Office address
Class name
% of
class
Directly
Held By
PLC Note *
ESCO Group Holdings
Pty Ltd
Australia
25 Trade Street, Lytton, Queensland
QLD 4178, Australia
Ordinary
100
ESCO Group LLC
United States
1209 Orange Street, Wilmington DE
19801, United States
Membership
Units
100
ESCO Hydra (UK)
Limited
England and
Wales
Ings Road, Doncaster, DN5 9SN
Ordinary,
Ordinary-A
100
ESCO Indonesia
Investco No 1 Pty Ltd
Australia
25 Trade Street, Lytton, Queensland
QLD 4178, Australia
Ordinary
100
ESCO Indonesia
Investco No 2 Pty Ltd
Australia
25 Trade Street, Lytton, Queensland
QLD 4178, Australia
Ordinary
100
ESCO International
(H.K.) Holdings
Limited
Hong Kong
Suites 5801, 5804-06, Central Plaza,
18 Harbour Road, Wanchai, Hong
Kong
,
Ordinary
100
ESCO International
Holdings SRL
Belgium
122 Rue des Fours à Chaux, Zoning
Industriel, Frameries, 7080, Belgium
Ordinary
100
ESCO Japan, Inc.
Japan
Marunouchi Mitsui Building, 2-2-2
Marunouchi, Chiyoda-ku, Tokyo,
100-0005, Japan
Common
100
Esco Latin América
Comércio e Indústria
Ltda.
Brazil
Rua Engenheiro Gerhard Ett, nº 1.215,
Galpão 02, Distrito Industrial Paulo
Camilo Sul, Betim, 32668-110, Brazil
Ordinary
100
ESCO Limited
Canada
1800 – 510 West Georgia Street,
Vancouver BC V6B 0M3 , Canada
Class A
Common
100
ESCO Moçambique
S.A.
Mozambique
Avenida Kim IL Sung, no. 961, Maputo,
Mozambique
Ordinary
100
ESCO Northgate Pty
Ltd
Australia
25 Trade Street, Lytton, Queensland
QLD 4178, Australia
Ordinary
100
ESCO Peru S.R.L.
Peru
Av. Manuel Olguin 211, Suite 304,
Surco, Lima, Peru
Common
100
ESCO SAS
France
57 rue d’Amsterdam, 75008, Paris,
France
Ordinary
100
ESCO Servicios
Mineros S.A.
Argentina
Tucuman 1, Piso 4, C1049AAA, Buenos
Aires, Argentina
Ordinary
100
ESCO South Africa
Wearparts (Pty)
Limited
South Africa
Meadowview Business Estate CNR
Clulee and Meadowview lane, Linbro
Park, Johannesburg, South Africa,
2090, South Africa
Cumulative
redeem-able
preference,
Empower
ment
Ordinary,
Ordinary - A
99.36
-
ESCO Supply and
Service Kazakhstan
Kazakhstan
Seyfullina Avenue, 502, Almalinskiy
district, Almaty, 050012, Kazakhstan
Ordinary
100
Esco Supply Carajás
Indústria de Peças e
Equipamentos Ltda
Brazil
Rodovia PA-160, S/N, Sala B, Quadra
73, Lotes 1, 2, 3, 4, 5, 6, 7, 22, 23 e 24,
Parque dos Carajas Il, Parauapebas/
PA, 68515000, Brazil
Ordinary
100
ESCO Turbine
Components Europe
SRL
Belgium
122 Rue des Fours à Chaux, Zoning
Industriel, Frameries, 7080, Belgium
Ordinary
100
ESCO Wearparts
Supply and Services
(Namibia)
(Proprietary) Limited
Namibia
Unit 3, 2nd Floor, Ausspann Plaza, Dr
Agostinho Neto Road, Ausspannplatz,
Windhoek, Namibia
Ordinary
100
ESCO-Bucyrus Blades
Financing Limited
Partnership
Canada
1800 – 510 West Georgia Street
Vancouver, BC V6B 0M3
Partnership
100
ESCOSupply Ltd.
Canada
1800 – 510 West Georgia Street,
Vancouver BC V6B 0M3 , Canada
Class A
Common
100
Fabrica de Aisladores
Sismicos de Chile
Limitada
Chile
San José N° 0815, San Bernardo,
Santiago de Chile, Chile
Corporate
Relationship
%
99.23
Fundición Vulco Ltda
Chile
San José N° 0815, San Bernardo,
Santiago de Chile, Chile
Corporate
Relationship
%
99.23
G. & J. Weir, Limited
England and
Wales
C/o Weir Minerals Europe, Halifax
Road, Todmorden, OL14 5RT
Ordinary
100
Note *
Inversiones ESCO
Chile Limitada
Chile
Calle Miraflores, Numero 222, Piso
veinticuatro, Santiago, Chile
Corporate
Relationship
%
100
Inversiones Linatex
Chile (Holdings)
Limitada
Chile
San José N° 0815, San Bernardo,
Santiago de Chile, Chile
Corporate
Relationship
%
100
Linatex (H.K.) Limited Hong Kong
5/F Manulife Place, 348 Kwun Tong
Road, Kwun Tong, Kowloon, Hong
Kong
Ordinary
100
Linatex Asset
Holdings Malaysia
Sdn. Bhd.
Malaysia
2nd Floor, No 2-4 Jalan Manau,
Wilayah Persekutuan,Wilayah
Persekutuan, 50460 Kuala Lumpur,
Malaysia
Ordinary
100
Linatex Australia Pty.
Limited
Australia
1-5 Marden Street, Artarmon NSW
2064, Australia
Class A;
Class B
100
Linatex Chile Limitada Chile
San José N° 0815, San Bernardo,
Santiago de Chile, Chile
Corporate
Relationship
%
100
Company Name
Country
Registered Office address
Class name
% of
class
241
The Weir Group PLC Annual Report and Financial Statements 2024
Subsidiary undertakings
continued
Strategic Report
Governance
Financial Statements
Additional Information
Company Name
Country
Registered Office address
Class name
% of
class
Directly
Held By
PLC Note *
Linatex Chile SpA
Chile
Santa Catalina de Chena 850, San
Bernardo, Santiago de Chile, Chile
Ordinary
Nominative
Share
100
Linatex Consolidated
Holdings Ltd
British Virgin
Islands
Kingston Chambers, PO Box 173,
Tortola, Road Town, British Virgin
Islands
Ordinary
100
Linatex Limited
England and
Wales
C/o Weir Minerals Europe, Halifax
Road, Todmorden, OL14 5RT
Ordinary
100
Linatex Rubber
Limited
England and
Wales
C/o Weir Minerals Europe, Halifax
Road, Todmorden, OL14 5RT
Ordinary
100
Linatex Rubber
Products Sdn. Bhd.
Malaysia
2nd Floor, No 2-4 Jalan Manau,
Wilayah Persekutuan,Wilayah
Persekutuan, 50460 Kuala Lumpur,
Malaysia
Ordinary
100
Metalúrgica Vulco
Ltda
Chile
San José N° 0815, San Bernardo,
Santiago de Chile, Chile
Common
99.22
Motion Metrics
International Corp.
Canada
1800 – 510 West Georgia Street,
Vancouver BC V6B 0M3 , Canada
Class A
Common
100
Motion Metrics Latin
America SpA
Chile
Edificio Nueva Santa Maria, Los
Conquistadores 1730, Of. 2805
Providencia, Santiago, Chile
Ordinary
100
Multiflo Pumps Pty Ltd Australia
1-5 Marden Street, Artarmon NSW
2064, Australia
Ordinary
100
Overseas ESCO
Corporation Ltd.
Virgin Islands,
British
OMC Chambers, Wickhams Cay 1,
Road Town, Tortola, Virgin Islands,
British
Ordinary
100
PT ESCO Mining
Products
Indonesia
The Garden Centre #3-04, Cilandak
Commercial Estate, JL Raya Cilandak
KKO, Jakarta, 12075, Indonesia
Ordinary
100
PT Weir Minerals
Contract Services
Indonesia
Indonesia
Jl. Mulawarman Rt. 20 No. 20
Kelurahan Manggar, Kec, Balikpapan
Timur, Kota Balikpapan, 76116,
Indonesia
Ordinary
100
PT Weir Minerals
Indonesia
Indonesia
Jl. Mulawarman Rt. 20 No. 20
Kelurahan Manggar, Kec, Balikpapan
Timur, Kota Balikpapan, 76116,
Indonesia
Ordinary
100
PT Weir Oil & Gas
Indonesia
Indonesia
Jl. Mulawarman Rt. 20 No. 20
Kelurahan Manggar, Kec, Balikpapan
Timur, Kota Balikpapan, 76116,
Indonesia
Ordinary -
Class A,
Ordinary -
Class B
95
Seaboard Holdings,
LLC
United States
The Corporation Trust Company,
1209 Orange Street, Wilmington DE
19801, United States
Membership
Units
100
Sentiantechnologies
AB
Sweden
Bredgatan 4, 211 30, Malmo, Sweden Ordinary
100
Slurry Holdings
Limited
Malta
Level 2 West, Mercury Tower, The
Exchange Financial & Business Centre,
Elia Zammit Street, St. Julian's, STJ
3155, Malta, STJ 3155, Malta
Ordinary
100
Soldering Comercio e
Industria Ltda
Brazil
Rua Engenheiro Gerhard Ett, nº 1.215,
Distrito Industrial Paulo Camilo Sul,
CEP 32669-110, Brazil
Ordinary
100
Thandilwa Training
Centre (Pty) Ltd
South Africa
Meadowview Business Estate CNR
Clulee and Meadowview lane, Linbro
Park, Johannesburg, South Africa,
2090, South Africa
Ordinary
100
The Weir Group
International S.A.
Switzerland
Rue de Romont 35, c/o Daniel
Schneuwly, 1700 FRIBOURG, Fribourg,
Switzerland
Ordinary
100
The Weir Group Isle of
Man Limited
Isle of Man
1st Floor Goldie House 1-4 Goldie
Terrace, Upper Church Street,
Douglas, IM1 1EB, Isle of Man
Ordinary
100
The Weir Group
Pension Trust Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
N/A
100
Note *
Trio Engineered
Products (Hong
Kong) Limited
Hong Kong
5/F Manulife Place, 348 Kwun Tong
Road, Kwun Tong, Kowloon Hong
Kong
Ordinary
100
TWG Canada
Holdings Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
TWG Finance, Inc.
United States
The Corporation Trust Company,
1209 Orange Street, Wilmington DE
19801, United States
Common
100
TWG Investments
(No. 6) Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
TWG Investments
(No. 7) Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Note *
TWG Investments
(No. 8) Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
TWG Investments
(No.10) Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Note *
TWG Investments
(No.3) Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary;
Preference
100
Note *
Directly
Held By
PLC*
Strategic Report
Governance
Financial Statements
Additional Information
Subsidiary undertakings
continued
The Weir Group PLC Annual Report and Financial Statements 2024
242
Directly
% of
Held By
Company Name
Country
Registered Office address
Class name
class PLC*
Company Name
Country
Registered Office address
Class name
% of
class
Directly
Held By
PLC Note *
TWG Investments
(No.4) Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary;
Preference
100
TWG South America
Holdings Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary;
Preference
100
TWG UK Holdings
Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
TWG US Finance LLC
United States
The Corporation Trust Company,
1209 Orange Street, Wilmington DE
19801, United States
Membership
Units,
Preferred
Units
100
Note *
TWG US Holdings LLC United States
The Corporation Trust Company,
1209 Orange Street, Wilmington DE
19801, United States
Units
100
TWG Young Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Note *
Valves and Controls
DE, LLC
United States
Corporation Trust Company (CT
Corporation System) , 1209 Orange
Street, Corporation Trust Center,
Wilmington DE 19801, United States
Corporate
Relationship
100
Valves and Controls
US, Inc.
United States
Corporation Trust Company (CT
Corporation System) , 1209 Orange
Street, Corporation Trust Center,
Wilmington DE 19801, United States
Common
100
Vulco Peru SA
Peru
Av. Separadora Industrial, N° 2201 Urb
Vulcano Ate, Lima, Peru
Ordinary
99.22
Vulco S.A.
Chile
San José N° 0815, San Bernardo,
Santiago de Chile, Chile
Ordinary
Nominative
Share
99.22
Warman Pumps Ltd
Australia
1-3 Marden Street, Artarmon NSW
2064, Australia
Ordinary
100
Weir ABF LP
Scotland
1 West Regent Street, Glasgow, G2
1RW, Scotland
Partnership
100
Weir Australia Finance
Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Weir B.V.
Netherlands
PO Box 249, 5900 AE, Venlo,
Netherlands
Ordinary
100
Weir Brasil Comercio
Ltda
Brazil
Rodovia BR-101, KM 43, N° 43.000,
Galpão 10-C, Bairro Nova Brasília,
Joinville/SC, CEP 89213-125, Brazil
Ordinary
100
Weir Canada, Inc.
Canada
1800 – 510 West Georgia Street,
Vancouver BC V6B 0M3 , Canada
Common
100
Weir Canadian
Investments, Inc.
Canada
1800 – 510 West Georgia Street,
Vancouver BC V6B 0M3 , Canada
Common
100
Weir do Brasil Ltda
Brazil
Av Jose Benassi, 2151, Sala A,
Condominio Fazgran, Jundiaí/SP,
13.213-085, Brazil
Nominal
100
Weir Engineering
Products (Shanghai)
Co., Ltd
China
Room 318, Floor 3, No. 458, Fute North
Road, Shanghai, China
N/A
100
Weir Engineering
Services Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Weir ESCO Ground
Engaging Tools
Zambia Limited
Zambia
Plot 2810, Chingola Highway,
Vibhav Business Park , Chingola,
Copperbelt Province , Zambia
Ordinary
100
Weir Group
(Australian Holdings)
Pty Limited
Australia
1-5 Marden Street, Artarmon NSW
2064, Australia
Ordinary
100
Note *
Weir Group (Overseas
Holdings) Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Weir Group African IP
Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Weir Group
Engineering Hong
Kong Limited
Hong Kong
Level 54, Hopewell Centre, 183
Queen's Road East, Hong Kong
Ordinary
100
Weir Group Executive
SUURB Trustee
Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Note *
Weir Group General
Partner Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Note *
Weir Group Holdings
Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Note *
Weir Group Inc.
United States
The Corporation Trust Company,
1209 Orange Street, Wilmington DE
19801, United States
Common
100
Weir Group IP Limited Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Note *
Weir Group Machinery
Equipment
(Shanghai) Co. Ltd.
China
No.4918, Liuxiang Road, Xuxing Town,
Jiading District, Shanghai, China
Ordinary
100
Weir Group Machinery
Equipment (Wuxi)
Co., Ltd.
China
No. 9, Wenzhu Road, Hudai Town,
Binhu District, Wuxi City, China
Ordinary
100
continued
Subsidiary undertakings
Held By
The Weir Group PLC Annual Report and Financial Statements 2024
Strategic Report
Governance
Financial Statements
Additional Information
Company Name
Country
Registered Office address
Class name
% of
class
Directly
Held By
PLC Note *
Weir Group
Management Services
Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Note *
Weir Group Trading
Mexico, S.A. de C.V.
Mexico
Av. Nafta No. 775, Col. Parque
Industrial, Stiva Aeropuerto, Mexico
Ordinary
Nominative
Share
100
Weir HBF (Pty) Ltd
South Africa
50 Strudebaker Street, Markman
Industria, Port Elizabeth, South Africa
Ordinary
100
Weir Holdings B.V.
Netherlands
Egtenrayseweg 9, 5928PH Venlo,
Netherlands
Ordinary
100
Weir Investments Two
Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary A,
Preference
100
Note *
Weir Malaysia Sdn.
Bhd.
Malaysia
2nd Floor, No 2-4 Jalan Manau,
Wilayah Persekutuan,Wilayah
Persekutuan, 50460 Kuala Lumpur,
Malaysia
Ordinary -
Class A,
Ordinary -
Class B
100.
Weir Minerals (India)
Private Limited
India
NCC Urban Windsor, 1st Floor, New
Airport Road, Opp.Jakkur Aerodrome,
Yelahanka, Bangalore, Karnataka, 560
064, India
Ordinary
97.25
Weir Minerals Africa
(Proprietary) Limited
South Africa
5 Clarke Street South, Alrode,
Alberton, 1449, South Africa
Ordinary,
Ordinary A
100
Weir Minerals
Armenia LLC
Armenia
22 Hanrapetutyan Str, 5th Floor,
Yerevan Centre, 0010, Armenia
Ordinary
100
Weir Minerals
Australia Ltd
Australia
1-3 Marden Street, Artarmon NSW
2064, Australia
Ordinary
100
Weir Minerals Balkan
d.o.o. Beograd
Serbia
Bulevar Mihajla Pupina 6, Ušće Kula I,
Beograd - Novi Beograd, Belgrade,
11070, Serbia
Ordinary
100
Weir Minerals
Botswana
(Proprietary) Limited
Botswana
Plot 64518 Deloitte House
Fairgrounds, Gaborone, Botswana
Ordinary
100
Weir Minerals Caribe
SRL
Dominican
Republic
KK 22,5 Autopista Duarte, Parque
Industrial Duarte, Parque de Naves PID
4, Santo Domingo, Dominican
Republic
Ordinary
99.99
Weir Minerals Central
Africa Limited
Zambia
Plot No. 3655, Chibuluma Road, Light
Industrial Area,, Kitwe, Copperbelt
Province, Zambia
Ordinary
100
Weir Minerals China
Co., Limited
China
Factory #27, 158 Hua Shan Road,
Suzhou New District, Suzhou, 215011,
China
Corporate
Relationship
100
243
Directly
% of
Company Name
Country
Registered Office address
Class name
class PLC*
Weir Minerals
Colombia SAS
Colombia
Carrera 43 B # 16 41 Office 904,
Building Staff, Medellin Antioquia,
Colombia
Ordinary
100
Weir Minerals Czech &
Slovak, s.r.o.
Czech
Republic
Hlinky 118, 603 00 Brno, Czech Rep.,
Brno, Czech Republic
Ordinary
100
Weir Minerals DRC
SAS
Congo, The
Democratic
Republic of the
1222 Route Likasi, Quartier Musompo
- Mutshatsha, Kolwezi, Province de
Lualaba, Congo (the Democratic
Republic of the)
B-Shares
64.87
Weir Minerals Europe
Limited
England and
Wales
Halifax Road, Todmorden, OL14 5RT
Ordinary
100
Weir Minerals Finland
Oy
Finland
Levysepänkatu 4, 95450 Tornio,
Finland
Ordinary
100
Weir Minerals France
SAS
France
Parc Technoland, Baitment H, 6-8
Allee du Piemont, 69800, Saint-Priest,
France
Ordinary
100
Weir Minerals FZCO
United Arab
Emirates
Unit 2W M058, Dubai Airport Free Zone
Area, Dubai, United Arab Emirates
Ordinary
100
Weir Minerals
Germany GmbH
Germany
Lise-Meitner-Straße 12, 74074,
Heilbronn, Germany
Issued
Capital
100
Weir Minerals
Hungary Kft
Hungary
Teleki László utca 11 1/.3, Tatabánya,
2800-HU, Hungary
Issued
Capital
100
Weir Minerals Isando
(Pty) Ltd
South Africa
31 Isando Road, Isando, Gauteng,
1601, South Africa
Ordinary
100
Weir Minerals Italy
S.r.l.
Italy
Via Fratelli Cervi 1/D, Cernusco sul
Naviglio, 20063, Milan, Italy
Ordinary
100
Weir Minerals
Kazakhstan LLP
Kazakhstan
4th Floor, 192/2 Dostyk Avenue,
Almaty, 050051, Kazakhstan
Charter
Capital
100
Weir Minerals Kenya
Limited
Kenya
LR No. 1870/1/569, Ring Road
Parklands, P.O. Box 764 - 00606 - Sarit
Centre, Nairobi, Kenya
Ordinary
100
Weir Minerals
Madagascar Sarlu
Madagascar
Immcuble Mining Business Center sis
a Mamory Ivato, 10518 Ivato Aeroport,
Analamanga, Madagascar
Ordinary
100
Weir Minerals Mexico
Servicios, S.A. de C.V.
Mexico
Av. Nafta No. 775, Col. Parque
Industrial, Stiva Aeropuerto, Mexico
Ordinary
Nominative
Share
100
Weir Minerals Mexico,
SA de CV
Mexico
Av. Nafta No. 775, Col. Parque
Industrial, Stiva Aeropuerto, Mexico
Ordinary
Nominative
Share
100
Weir Minerals
Mongolia LLC
Mongolia
205, 2nd Khoroo, Bayangol District,
Ulaanbaatar, Mongolia
Ordinary
100
Strategic Report
Governance
Financial Statements
Additional Information
Company Name
Country
Registered Office address
Class name
% of
class
Directly
Held By
PLC Note *
Weir Minerals Mexico,
SA de CV
Mexico
Av. Nafta No. 775, Col. Parque
Industrial, Stiva Aeropuerto, Mexico
Ordinary
Nominative
Share
100
Weir Minerals
Mocambique
Limitada
Mozambique
Mozambique, Maputo Cidade, Distrito
urbano1, Bairro, Centrall, AV.
Zedequias, Manganhela, Mozambique
Ordinary
100
Weir Minerals
Mongolia LLC
Mongolia
205, 2nd Khoroo, Bayangol District,
Ulaanbaatar, Mongolia
Ordinary
100
Weir Minerals
Netherlands B.V.
Netherlands
Egtenrayseweg 9, Venlo, Limburg
5928 PH, Netherlands
Ordinary
100
Weir Minerals North
Africa SARL
Morocco
Boulevard Sidi Mohamed, Ben
Abdellah, Im B, 1er Etage N
29. ,Casablanca, 20160, Morocco
Ordinary
100
Weir Minerals Panama
S.A.
Panama
Urbanización Vista Alegre, Edificio
Parque Logístico Panawest Bodega 7
Autopista, Panama-Arraijan, Panamá
Ordinary
100
Weir Minerals Poland
Sp. z.o.o.
Poland
ul. Wilkowicka, nr 20, lok. ---, miejsc.
Leszno, kod 64-100,, Poland
Capital
100
Weir Minerals
Processing
Equipment & Services
LLC
United Arab
Emirates
EFCO Cement Products Factory, Plot
No 597901, Dubai Investment Park II,
Dubai, United Arab Emirates
Ordinary
49
Weir Minerals Pump &
Mining Solutions
Namibia (Proprietary)
Limited
Namibia
Erf 4877 Patrick Lungadha Street, Ext.
10, New Industrial, Swakopmund,
Namibia
Ordinary
100
Weir Minerals RFW LLC
(OOO)
Russian
Federation
Bolshaya Polyanka, Building 2, house
2, 119180, Moscow, Russian
Federation
Corporate
Relationship
100
Weir Minerals Senegal
SUARL
Senegal
Sacré Coeur Pyrotechnique
Residence, Les Signares, 1er Etage,
Dakar Ponty, F4B - BP 21378, Senegal
Ordinary
100
Weir Minerals Shared
Services Proprietary
Limited
South Africa
5 Clarke Street South, Alrode,
Alberton, 1449, South Africa
Ordinary
100
Weir Minerals South
Africa Proprietary
Limited
South Africa
5 Clarke Street, Alrode, Alberton,
Gauteng, 1449, South Africa
Ordinary
74.9
Weir Minerals Sweden
AB
Sweden
Polervägen 4, 774 41 Avesta, Sweden
Ordinary
100
Weir Minerals U.S. Inc. United States
Corporation Trust Company (CT
Corporation System) , 1209 Orange
Street, Corporation Trust Center,
Wilmington DE 19801, United States
Common,
Preferred
Stock
100
Weir Minerals Ukraine
LLC
Ukraine
2 Glinka str., letter Ƃ-18, б-1,
Dnipropetrovsk Reg, Dnipropetrovsk,
49000, Ukraine
Corporate
Relationship
100
Weir Minerals West
Africa Ltd Company
Ghana
Phase 31, WH 5 & 6, Plot A, Tema
Freezone Enclave, Agility Logistics
Park, Kpone-Katamanso, Greater
Accra, Ghana
Ordinary
100
Weir Oil & Gas
Australia Pty Limited
Australia
1-5 Marden Street, Artarmon NSW
2064, Australia
Ordinary
100
Weir Pump and Valve
Solutions, Inc
United States
The Corporation Company, 40600
Ann Arbour Road, Este, 201, Plymouth
Mi 48170 4675, United States
Common
100
Weir Pumps Limited
Scotland
10th Floor, 1 West Regent Street,
Glasgow, G2 1RW
Ordinary
100
Weir Services
Australia Pty Ltd
Australia
1-5 Marden Street, Artarmon NSW
2064, Australia
Ordinary
100
Weir Services
Tanzania Limited
Tanzania,
United
Republic of
Plot 84, Block G, Nyakato, Mwananchi
Area, 33205, Mwanza, Tanzania
Ordinary
100
Weir Sudamerica S.A. Chile
San José N° 0815, San Bernardo,
Santiago de Chile, Chile
Ordinary
Nominative
Share
99.99
Weir Turkey
Mineralleri Limited
Sirketi
Turkey
Tepeören Mah. Dervişpaşa Cad. Weir
Blok No:13 Tuzla, İstanbul, Turkey
Bearer
100
Weir US Holdings Inc. United States
The Corporation Trust Company,
1209 Orange Street, Wilmington DE
19801, United States
Common
100
Weir Vulco Argentina
S.A.
Argentina
Sarmiento 511 Sur 1°Piso A, San Juan,
CP 5400, Argentina
Ordinary
99.96
Weir Warman (U.K.)
Limited
England and
Wales
Halifax Road, Todmorden, OL14 5RT
Ordinary
100
Note *
WHW Group Inc.
United States
The Corporation Trust Company,
1209 Orange Street, Wilmington DE
19801, United States
Common
100
Company Name
Country
Registered Office address
Class name
% of
class
Directly
Held By
PLC*
The Weir Group PLC Annual Report and Financial Statements 2024
244
Subsidiary undertakings
continued
Strategic Report
Governance
Financial Statements
Additional Information
Company Name
Country
Registered Office address
Class name
% of
class
Directly
Held By
PLC Note *
Wuxi Weir Minerals
Equipments Co., Ltd.
China
Lot 265, Wuxi-Singapore Industrial
Park, Wuxi City, Jiangsu Province,
China
Ordinary
100
The Group has an interest in a partnership, the Weir ABF LP, which is fully consolidated into
these statements. The Group has taken advantage of the exemption conferred by Regulation
7 of the Partnerships (Accounts) Regulations 2008 and has, therefore, not appended the
accounts of this qualifying partnership to these financial statements. Separate accounts for the
partnership are not required to be, and have not been, filed at Companies House in the UK.
Statutory audit exemptions
The Weir Group PLC has issued guarantees over the liabilities of the following companies at 31
December 2024 under Section 479C of Companies Act 2006 and these entities are exempt
from the requirements of the Act relating to the audit of individual accounts by virtue
of Section 479A of the Act:
Company Name
Company number
ESCO (UK) Holdings Limited
04743623
ESCO EMEA Holdings (UK) Limited
08690169
Linatex Limited
00246713
TWG Canada Holdings Limited
SC288837
TWG Investments (No.3) Limited
SC197235
TWG Investments (No.4) Limited
SC197236
TWG Investments (No.6) Limited
SC292269
TWG Investments (No.7) Limited
SC292270
TWG Investments (No.8) Limited
SC292721
TWG South America Holdings Limited
SC380944
TWG UK Holdings Limited
SC311635
Weir Australia Finance Limited
SC706473
Weir Engineering Services Limited
SC033381
Weir Group (Overseas Holdings) Limited
SC054821
Weir Group African IP Limited
SC333781
Weir Group General Partner Limited
SC522808
Weir Group Holdings Limited
SC187227
Weir Group IP Limited
SC267963
Weir Warman (U.K.) Limited
01636530
The Weir Group PLC Annual Report and Financial Statements 2024
245
Subsidiary undertakings
continued
Strategic Report
Governance
Financial Statements
Additional Information
Shareholder information
Company Secretary & registered office
Jennifer Haddouk
The Weir Group PLC
1 West Regent Street
Glasgow
G2 1RW
Registered in Scotland.
Company No. SC002934
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
Website: www.investorcentre.co.uk
Telephone: 0370 707 1402
Shareholder enquiries relating to shareholding, dividend payments, change of name or
address, lost share certificates or transfer of shares etc. should be addressed to
Computershare.
Shareholder analysis
Online communications
Shareholders are encouraged to visit the Company’s corporate website (global.weir), which
contains a wealth of information about the Weir Group. The website includes information
about the markets in which we operate, our strategy and business performance, recent news
from the Group and product information. The investor section is a key source of information
for shareholders, containing details on the share price, our financial results, shareholder
meetings and dividends, as well as a ‘Shareholders FAQ’ section.
E-communications
We are encouraging our shareholders to receive their information by email and via our
website. Not only is this quick, it helps to reduce paper, printing and costs.
To register for e-communications, log on to www.investorcentre.co.uk
Follow us
Ordinary shareholder analysis at 31 December 2024
(excluding 1,465 treasury shares)
By country
⬛UK Shareholders
91.3%
⬛Overseas Shareholders
8.7%
By holding size
Range
No. of
Shareholders
%
Shares
%
1-1,000
1,829
56.16
682,399
0.26
1,001-5,000
784
24.07
1,692,962
0.65
5,001-10,000
169
5.19
1,211,906
0.47
10,001-100,000
250
7.68
9,472,393
3.65
100,001-500,000
150
4.61
35,676,716
13.74
500,001-1,000,000
30
0.92
20,655,628
7.96
1,000,001-999,999,999
45
1.38
190,220,048
73.27
Total
3,257
100%
259,612,052
100%
By shareholder category
Holdings
%
Shares
%
Individuals
2,492
76.51%
3,636,922
1.40%
Bank or Nominees
696
21.37%
255,262,289
98.32%
Investment Trust
11
0.34%
344,860
0.13%
Insurance Company
–
0.00%
–
0.00%
Other Company
42
1.29%
266,245
0.10%
Pension Trust
1
0.03%
1
0.00%
Other Corporate Body
15
0.46%
101,735
0.04%
Total
3,257
100%
259,612,052
100%
The Weir Group PLC Annual Report and Financial Statements 2024
246
Strategic Report
Governance
Financial Statements
Additional Information
Annual and interim reports
Our Annual Report is available online. You can view or download the full Annual Report and
Interim Report from our website at global.weir/investors/reporting-centre
Managing your shareholding online with Investor Centre is a free, secure online service run by
Computershare, giving you convenient access to information on your shareholdings. Manage
your shareholding online and take advantage of all these features and more:
– View share balances and market values for all of your Computershare-managed holdings
– Update dividend mandate bank instructions, including global payments and view dividend
payment history
– Register to receive company communications online
– Cast your Proxy Vote online for forthcoming General Meetings
– Update personal details, such as your address
Registration is quick and easy. Just visit www.investorcentre.co.uk with your Shareholder
Reference Number (SRN) to hand. After registering, you may be sent an activation code in the
post, used to validate your account.
Annual general meeting 2025
Our Annual General Meeting will be held at 2.30pm on Thursday 24 April 2025. Further details
are contained in the Notice of Annual General Meeting 2025, which is available to download
from our website at global.weir/shareholder-information/agm.
Voting
Information on how you can vote electronically on the resolutions that will be put forward at
our 2025 Annual General Meeting can be obtained through our Registrar by visiting
www.investorcentre.co.uk/eproxy. You will need details of the Control Number, your SRN and
PIN, which can be found on the Form of Proxy or email, if you have asked to be sent email
communications.
Dividends
The Directors have recommended a final dividend of 22.1p per share, for the year ended 31
December 2024. Payment of this dividend is subject to approval at the 2025 Annual General
Meeting. Key dates relating to this dividend are given below.
Annual General Meeting
24 April 2025
Ex-dividend date
17 April 2025
Record date
22 April 2025
Mandatory Direct Credit deadline
8 May 2025
Payment date
30 May 2025
Dividend history – (pence per share)
2017
2018
2019
2020
2021
2022
2023
2024
Interim
15.0
15.75
16.5
0.0
11.5
13.5
17.8
17.9
Final
29.0
30.45
0.0
0.0
12.3
19.3
20.8
22.1
Total
44.0
46.2
16.5
0.0
23.8
32.8
38.6
40.0
Important – payment of dividends by mandatory direct credit
In 2019, the Company simplified the way in which it pays dividends to Shareholders and now
pays cash dividends by direct credit only. If our Registrar Computershare does not have any
bank/building society details on record for you, future payments will remain unissued and you
may then be charged to have your payments issued at a later date.
Paying dividends into a bank or building society account is a quicker and more secure way for
your dividends to be paid directly to you. In order to receive your dividends directly into your
bank account, you will need to register your bank/building society details on our Registrars’
website at www.investorcentre.co.uk. You will need your ten digit Shareholder Reference
Number (SRN), which starts with the letter C or G to log in.
This can be found on your share certificate(s) and dividend confirmation. Alternatively, you can
call Computershare on the dedicated Shareholder helpline 0370 707 1402, should you have
any questions about registering your payment instruction.
An Annual Dividend Confirmation detailing all payments made throughout the tax year is sent
once a year either electronically or to your registered address.
The Weir Group PLC Annual Report and Financial Statements 2024
247
Shareholder information
continued
Strategic Report
Governance
Financial Statements
Additional Information
International Funds Transfers
If you live overseas, Computershare offers an International Funds Transfers service that is
available in certain countries. This may make it possible to receive dividends direct into your
bank account in your local currency. Please note that the fees applied for this service will be
automatically deducted from the proceeds before it is paid to you. For further details go to
www.investorcentre.co.uk/faq/payments.
American Depositary Receipt (ADR) programme
The Company has a sponsored level 1 ADR programme in the United States. Each ADR
represents 0.5 ordinary shares of 12.5 pence each, in the Company. The Company’s ADR
programme is administered by Citibank, who were appointed in February 2016.
ADR investor contact
Telephone: +1 781 575 4555 Citibank representatives are available from 8.30am to 6.00pm US
Eastern Standard Time (EST) Monday to Friday. Email: citibank@shareholders-online.com
In writing
Citibank Shareholder Services
P.O. Box 43077
Providence,
Rhode Island 02940-3077
ADR broker contact
Telephone: +1 212 723 5435 /
+44 207 500 2030
Email: citiadr@citi.com
Dividend tax allowance
With effect from 6 April 2024, the annual tax free allowance on dividend income was reduced
from £1,000 to £500.
Above this amount, individuals will pay tax on their dividend income at a rate dependent on
their income tax bracket and personal circumstances. We will continue to provide registered
Shareholders with confirmation of the dividends paid and this should be included with any
other dividend income received when calculating and reporting total dividend income
received. It is a Shareholder’s responsibility to include all dividend income when calculating
any tax liability.
This provision is enshrined in the Finance Act 2016. If you have any tax queries, please contact
a financial adviser.
United Kingdom capital gains tax
For the purpose of capital gains tax, the market value of an ordinary share of The Weir Group
PLC as at 31 March 1982 was 29.75p. This market value has been adjusted to take account of
the sub-Division of the share capital whereby each ordinary share of 25p was sub-divided into
two ordinary shares of 12.5p each on 28 June 1993. Rights issues of ordinary shares took place
in April 1987 at 157p per share on the basis of one new ordinary share for every seven ordinary
shares held, in July 1990 at 250p per share on the basis of one new ordinary share for every
five ordinary shares held and in September 1994 at 252p per share on the basis of one new
ordinary share for every four ordinary shares held.
Share dealing services
Shareholders have the opportunity to buy or sell The Weir Group PLC shares using a share
dealing facility operated by our Registrar, Computershare. You will need to register for this
service prior to using it. To access this service, go to www.computershare.com/dealing/uk.
Internet share dealing – commission is 1.4% of the value of each sale or purchase of shares,
subject to a minimum charge of £40. In addition, stamp duty, currently 0.5%, is payable on
purchases. Real time dealing is available during market hours (0800 to 1630 Monday to Friday
excluding bank holidays). In addition, there is a convenient facility to place your order outside
of market hours. Up to 90-day limit orders are available for sales. To access the service, go to
www.computershare.com/dealing/uk. Shareholders should have their SRN available. The SRN
appears on share certificates and dividend documentation.
Please note that, at present, this service is only available to Shareholders in certain jurisdictions.
Please refer to the Computershare website for an up-to-date list of these countries.
The Weir Group PLC Annual Report and Financial Statements 2024
248
Shareholder information
continued
Strategic Report
Governance
Financial Statements
Additional Information
Registry postal share dealing service – commission is 1.4% of the value of each sale or
purchase of shares, subject to a minimum of £40. In addition, stamp duty, currently 0.5%, is
payable on purchases. You can contact Computershare on 0370 703 0084. Shareholders
should have their SRN ready when making the call. The SRN appears on share certificates and
dividend documentation. Detailed terms and conditions are available at
www.investorcentre.co.uk or by contacting Computershare. Please note this service is, at
present, only available to Shareholders resident in certain jurisdictions. Please refer to the
Computershare website for an up-to-date list of these countries.
These services are offered on an execution only basis and subject to the applicable terms and
conditions. Computershare Investor Services PLC is authorised and regulated by the Financial
Conduct Authority.
This is not a recommendation to buy, sell or hold shares in The Weir Group PLC. Shareholders
who are unsure of what action to take should obtain independent financial advice. Share
values may go down as well as up which may result in a Shareholder receiving less than he/
she originally invested.
Shareholder warning alert: unsolicited investment advice and fraud
Many companies have become aware that their shareholders have received unsolicited
phone calls or correspondence concerning investment matters. Share scams are often run
from ‘boiler rooms’ where fraudsters cold-call investors offering them worthless, overpriced or
even non-existent shares.
These callers can be very persistent and extremely persuasive and their activities have
resulted in considerable losses for some investors. Whilst usually by telephone, the high
pressure sales tactics can also come by email, post, word of mouth or at a seminar.
Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a
discount, sell your shares at a premium or offers of free company reports.
If you receive any unsolicited investment advice:
– Make sure you get the correct name of the person and organisation and take a note of any
other details they provide, such as a telephone number or address.
– Check that the caller is properly authorised by the Financial Conduct Authority (FCA) by
visiting www.fca.org.uk.
– Report any approach from such organisations to the FCA using the share fraud reporting
form at www.fca.org.uk/consumers/report- scam-unauthorised-firm, where you can also
find out about the latest investment scams. You can also call the Consumer Helpline on
0800 111 6768.
– If calls persist, hang up.
The Weir Group PLC Annual Report and Financial Statements 2024
249
Shareholder information
continued
Strategic Report
Governance
Financial Statements
Additional Information
Glossary
AGM
Annual General Meeting
AI
Artificial intelligence
Avoided emissions
The comparative measure between the
lifecycle greenhouse gas emissions of an
improved technology versus the business as
usual alternative
Board
The Board of Directors of The Weir Group PLC
bps
Basis points
brownfield
A term used to describe existing mining
operations
capex
Capital expenditure
CGU
Cash generating unit
CSRD
EU Corporate Sustainability Reporting
Directive
Comminution
Crushing, screening and grinding of
materials in mining and sand and
aggregates markets
Company
The Weir Group PLC
Computershare EBT
Employee benefit trust (Computershare
Trustees (Jersey) Limited)
Constant currency
2023 restated at 2024 average exchange
rates.
Continuing operations
Continuing operations excludes the Oil &
Gas Division, which was sold to Caterpillar
Inc. in February 2021 and the Saudi Arabian
joint venture, which was sold to Olayan
Financing Company in June 2021
Director
A Director of The Weir Group PLC
EBIT
Earnings before interest and tax
EBITDA
Earnings before interest, tax, depreciation
and amortisation
eNPS
Employee net promoter score. A scoring
system designed to help employers
measure employee satisfaction and loyalty
within their organisations
EPS
Earnings per share
Estera EBT
Employee benefit trust (Estera Trust (Jersey)
Limited)
Excellence Committees
Management-level committees seeking to
promote best practice on a variety of
specialist topics
External Auditors
PricewaterhouseCoopers LLP
free cash flow
Operating cash flow (cash generated from
operations) adjusted for net capital
expenditure, lease payments, dividends
received from joint ventures, purchase of
shares for employee share plans, net
interest, income taxes, settlement of
derivative financial instruments, additional
pension contributions and non-controlling
interest dividends
GAAP
Generally Accepted Accounting Practice
Gender diversity
The percentage increase or decrease in
females at Weir, relative to the starting
baseline. The percentage is determined as
the number of female employees divided by
the total number of employees (all genders
inclusive), within any given period (less the
baseline figure)
GHG
Greenhouse gases
greenfield
A term used to describe new mine
developments
Group
The Company together with its subsidiaries
IAS
International Accounting Standards
ID&E
Inclusion, diversity and equity
IFRS
International Financial Reporting Standards
ISSB
International Sustainability Standards Board
ISO
International Organisation for
Standardisation
KPI
Key performance indicator
Like-for-like
On a consistent basis, excluding the impact
of acquisitions
LTIP
Long Term Incentive Plan
NGO
Non-governmental organisation
operating margin
Operating profit including our share of
results of joint ventures divided by revenue
2026 operating margin target
Adjusted operating profit margin for full year
ending 31 December 2026
ordinary shares
The ordinary shares in the capital of the
Company of 12.5p each
Performance Excellence
A transformation programme to optimise
the structure of our operations and drive
synergy across our processes
PILON
Payment in lieu of notice
Registrar
Computershare Investor Services PLC
R&D
Research and development
Retain our talent
The percentage of permanent employees
who have voluntarily chosen to leave Weir in
the reporting period. Voluntary is
determined as any employee who has
voluntarily chosen to leave the organisation,
and excludes any employee who has left by
way of an involuntary exit
RPI
UK Retail Prices Index
SASB
Sustainability Accounting Standards Board
The Weir Group PLC Annual Report and Financial Statements 2024
250
Strategic Report
Governance
Financial Statements
Additional Information
Scope 1 emissions
Direct GHG emissions occur from sources
that are owned or controlled by the
company, for example, emissions from
combustion in owned or controlled boilers,
furnaces, vehicles and process emissions.
Scope 2 emissions
Indirect GHG emissions. Scope 2 accounts
for GHG emissions from the generation of
purchased electricity, heat or steam
consumed by the company and is
purchased or otherwise brought into the
organisational boundary of the company
Scope 3 emissions
Other indirect GHG emissions across the
value chain Scope 3 emissions are a
consequence of the activities of the
company, but occur from sources not
owned or controlled by the company. Some
examples of scope 3 activities are extraction
and production of purchased materials;
transportation of purchased fuels; and use of
sold products and services
SHE
Safety, Health and Environment
SRP
Share Reward Plan
subsidiary
An entity that is controlled, either directly or
indirectly, by the Company
t CO subscript 2 e
Tonnes of carbon dioxide equivalent
TIR
Total incident rate is an industry standard
indicator that measures fatality, lost time and
medical treatment injuries per 200,000 hours
worked (employee, contractor and visitor
hours on site).
TSR
Total Shareholder Return comprising
dividends paid on ordinary shares and the
increase or decrease in the market price of
ordinary shares
WACC
Weighted average cost of capital
WBS
Weir Business Services
The Weir Group PLC Annual Report and Financial Statements 2024
251
Glossary
continued
Strategic Report
Governance
Financial Statements
Additional Information
The Weir Group PLC Annual Report and Financial Statements 2024
252
Photographic references:
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