600 Group PLC Trading Update (5165V)
April 15 2021 - 1:00AM
UK Regulatory
TIDMSIXH
RNS Number : 5165V
600 Group PLC
15 April 2021
Prior to publication, the information contained within this
announcement was deemed by the Group to constitute inside
information. With the publication of this announcement, this
information is now considered to be in the public domain.
15 April 2021
The 600 Group plc
(the "Group")
Trading Update
The 600 Group plc, the diversified industrial engineering
company (AIM: SIXH), announces a trading update for the financial
year ended 31 March 2021.
Despite the exceptional impact of COVID-19 on the Group's
businesses and world economy, the Group is expected to report
revenues of approximately $53 million, down over 20% on the prior
year. Despite this reduction in revenues, the Group expects to
report underlying EBIT of approximately $2.5 million for the full
year due to the implementation of operational cost savings and
government assistance programmes.
The Group's performance is above the Board's post-pandemic
expectations, and the strong increase in order activity in March
improved the overall orderbook to approximately $14 million as at
31 March 2021, almost 70% above the prior year. Over the last few
weeks, activity has significantly increased, with a further $4
million of orders already received so far in April. This much
improved order book is particularly strong in the higher margin
custom laser side of the business, providing a strong platform for
the Group to grow in the current financial year and benefit from
operational gearing within the businesses.
The Group has pleasingly been able to largely maintain
pre-pandemic employment levels, with assistance from government
furlough in the UK and Australia, and forgiveness of USA Government
Paycheck Protection Program ("PPP") loans. This should enable to
the Group to ramp up operations sufficiently to match the increase
in order book.
Further to the update on 2 March 2021, the remaining $0.6
million of the $2.2 million applied for in new PPP loans was
received in late March 2021. These loans are on the same terms as
the initial PPP loans, and thus will be eligible for forgiveness
from September 2021 dependent on employment numbers, payroll
expenditure and certain facility costs, with any amount not
forgiven repayable over a two-year term with an all-in interest
rate of 1.0%.
Group net debt (excluding IFRS16 leases) and including the
second round $2.2 million of PPP funding loans was $13 million at
the 31 March 2021 financial year end, which compares to $14.2
million at the end of March 2020.
Paul Dupee, Group Executive Chairman, commented:
"The particularly strong order activity over the last two
months, supported by a level of government assistance, has enabled
the business to maintain its skilled workforce during the pandemic.
This has allowed us to respond quickly to recent demand and
significantly improve the size and quality of the Group's
orderbook, leaving the business well placed as markets
improve."
Enquiries:
The 600 Group PLC Tel: 01924 415000
Paul Dupee, Executive Chairman
Instinctif Partners Tel: 0207 457 2020
Mark Garraway
Rosie Driscoll
Cenkos Securities plc (Nominated Adviser Tel: 020 7397 8900
and Broker)
Ben Jeynes / Max Gould (Corporate Finance)
Alex Pollen (Sales)
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 and 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
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