23rd Jun 2016 06:31
LONDON (Alliance News) - Engineering business Weir Group PLC Thursday said it has sold two businesses operating within the renewables sector for up to GBP36.7 million and said it remains on track to deliver full results in line with expectations, despite orders and revenue falling.
Weir has agreed to sell American Hydro Corp and Ynfiniti Engineering Services for an initial combined consideration of GBP34.4 million, with the remainder being paid subject to certain conditions being satisfied.
Both businesses were part of Weir's Flow Control division and generated a combined revenue total of GBP38.0 million and an operating profit of GBP1.4 million in 2015.
Weir said it will book a loss on disposal of around GBP5.0 million as the company continues to progress it plans to sell GBP100.0 million worth of assets.
The company said net debt, on a constant currency basis, at the end of June should be lower than previous guidance due to the disposals and the uptake of the scrip dividend, it said.
Weir said trading in April and May was "consistent" with trends seen in the first quarter of 2016 and in line with expectations. However, Weir said orders for the first five months of 2016 are around 15% lower than the previous year and revenue from orders in April and May were "slightly lower" than a year ago.
"As a result, the group remains on track to meet its prior guidance for first half profits, ahead
of current market expectations," said Weir. "Underlying cash generation remains robust. There is no change to the group's prior full-year guidance as outlined on 28 April 2016."
By Joshua Warner; [email protected]; @JoshAlliance
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