600 Group PLC Trading Update (6781D)
21 Febrero 2020 - 1:00AM
UK Regulatory
TIDMSIXH
RNS Number : 6781D
600 Group PLC
21 February 2020
21 February 2020
The 600 Group PLC
Trading Update
The 600 Group PLC ("the Group"), the diversified industrial
engineering company (AIM: SIXH), today announces a trading update
in respect of the current year (FY 28 March 2020).
In December the Group reported that it had been experiencing
certain macro-economic and political uncertainties across its end
markets, particularly in the Far East and automotive markets, with
order intake for the fourth quarter expected to be significantly
below originally predicted levels.
Trading conditions have since become more challenging with the
combination of the General Motors strike in USA plants at the end
of last year and the suspension of manufacture by Boeing of its 737
MAX in January this year further impacting hundreds of thousands of
suppliers across our core industrial markets. Order intake in both
Machine Tools and Industrial Laser Systems therefore remains
volatile, including two significant projects that have been pushed
into the next financial year.
In addition, the Coronavirus is causing disruption to shipping
from the Far East. Whilst the Group has no significant volume of
sales and little direct sourcing from Mainland China, the effect of
delays to deliveries is pushing sales past the end of the March
financial year.
Across UK operations, there continues to be good progress with
orders up over 100% on the prior year. The Group is also pleased to
report that contracts have been exchanged for the sale of the Gamet
Colchester site for $0.5m. This sale is part of the Group's
rationalisation of the UK operations of its Machine Tools division
to reduce operational risk and capital expenditure requirements.
Completion is expected in the next few days with the proceeds used
to reduce bank debt.
As a result of the market volatility described above and the
expected resultant shortfall in revenue against a relatively fixed
cost base, the outturn for the full year is now expected to be
significantly below the Board's previously revised
expectations.
Despite these major headwinds, the Board continues to believe in
the long-term fundamentals of the Group, which benefits from a
significantly enhanced financial position, and remains optimistic
for the future as it continues to pursue its strategy of de-risking
and diversifying the business.
ENDS
Enquiries:
The 600 Group PLC Tel: 01924 415000
Paul Dupee, Executive Chairman
Neil Carrick, Finance Director
Instinctif Partners Tel: 0207 457 2020
Mark Garraway
James Gray
Spark Advisory Partners Limited (NOMAD) Tel: 020 3368 3553
Matt Davis
WH Ireland (Broker) Tel: 020 7220 1666
Harry Ansell
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
About The 600 Group PLC
The 600 Group PLC is a distributor, designer and manufacturer of
industrial products with three principle areas of activities:
Machine Tools
The business has a strong reputation in the market for metal
turning machines. Products range from small conventional machines
for education markets, CNC workshop machines and CNC production
machines. Selected outsourcing partners support the manufacturing
of these machines and they are marketed through the Group's wholly
owned international sales organisation and a global distribution
network.
Precision Engineered Components
Machine spares are distributed to customers globally to help
maintain the installed base of group machines which number in
excess of 100,000. Additionally, work holding products are sold via
specialist distributors to OEMs, including other machine
builders.
Industrial Laser Systems
Industrial laser systems cover laser marking and processing
including cutting, drilling, ablation and a host of other niche
applications in the marking and micro machining sectors. They
require no consumables, can operate on a continuous high speed
basis and can be integrated into customers' production lines. The
businesses have their own technology and proprietary software.
Customer applications are diverse and range from aerospace to
medical and pharmaceuticals. The requirement for increased product
and component traceability is one of the market drivers.
More information on the Group can be viewed at:
www.600group.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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