Weir Group has reported a 22% drop in profit before tax in its 2016 full year financial results.

With revenue also falling 2% to £1,845 million (2015: £1,880m), the company said it was impacted by a severe downturn in the North American oil and gas market.

However Jon Stanton, Chief Executive Officer, said despite a "challenging and prolonged downturn", the Group returned to growth in the last quarter of the year as its main markets "showed signs of improvement".

The company also announced plans to invest £15m in people and technology.


"Minerals increased revenues from both original equipment and aftermarket," Mr Stanton said.

"Oil & Gas extended its technology leadership amidst difficult end markets and Flow Control benefited from its recent restructuring which supported margins in challenging downstream energy markets. Our record of excellent cash generation continued.

"In recent months I have been encouraged by macro commodity trends and the signs in our mining and oil and gas markets that point to a cyclical upturn.

"Our new strategic priorities will strengthen our capabilities and enable us to fully capture opportunities presented by improving markets, although there is a range of views about the precise shape of the recovery in 2017.

"At a Group level, we expect to deliver strong cash generation and good growth in constant currency revenues.  Profit growth will be further supported by foreign currency translation benefits, partly offset by incremental investments in people and technology."

(LM/MH)