TIDMSIXH
RNS Number : 7414F
600 Group PLC
20 July 2021
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (as amended), which forms
part of domestic UK law pursuant to the European Union (Withdrawal)
Act 2018. Upon publication of this announcement via a Regulatory
Information Service, this inside information is now considered to
be in the public domain.
20 July 2021
The 600 Group PLC
Trading Update and Notice of Results
The 600 Group PLC (the "Group"), the diversified industrial
engineering company (AIM: SIXH), is pleased to provide an update in
respect of current trading following the period ended 31 March 2021
("FY21").
In doing so the Group re-confirms its expectations of FY21
performance announced by the Group on 15 April 2021 and announces
that it now expects to report its audited FY21 results by 30
September 2021 as a result of COVID-19 related restrictions and
delays.
Summary of Unaudited FY21 Results
-- Revenue of $53.5 million (2020: $67.2 million), down by just
over 20% due to the impact of COVID-19 on trading.
-- Underlying EBIT of $2.5 million.
-- Underlying profit before taxation (excluding adjusted items)
in line with previous year at $1.1 million (2020: $1.1 million),
due to management's swift response to the COVID-19 pandemic.
-- Group net debt as at 31 March 2021 (excluding IFRS16 lease
liabilities) was $12.8m, reduced from $14.2m as at 28 March
2020.
-- $2.2m of 31 March 2021 Group net debt will be eligible for
forgiveness from September 2021 as a US Paycheck Protection Program
("PPP") loan 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%.
-- Strong pipeline of opportunities across all operating
divisions, in particular in Industrial Laser Systems where the
integration of the sales operations and back-office functions of
TYKMA and Control Micro Systems ("CMS") has progressed well.
-- Group order book of $14.1m as at 31 March 2021 which has
since increased to $22.5m as at 15 July 2021.
-- Stable leadership and retention of key senior management teams.
Current Trading and Outlook
Trading in the first quarter of the current financial year has
been strong, with orderbooks seeing a marked improvement since 31
March 2021 and increased levels of activity across the Group.
In particular, the pipeline in the Group's higher margin, growth
market Industrial Laser Division is very encouraging - with CMS
taking a number of large new orders in the current year, including
a $4.3m order earlier this month - the largest in its history.
As at 15 July 2021 the Group's order book stood at $22.5m (31
March 2021: $14.1m). In addition to being a material increase over
the Group's order book as at 31 March 2021, it is pleasing to note
that $12.9m (57%) of the current order book relates to the Group's
higher margin Industrial Laser Division.
The Group's management teams continue to respond exceptionally
well in difficult conditions and, having successfully restructured
the Groups' loan notes to provide financial flexibility, the Group
is now positioned as a leaner and more efficient organisation which
can take advantage of the operational gearing in our activities as
volumes continue to increase.
Whilst there still remains some uncertainty created by the
COVID-19 pandemic, the Board continues to believe in the long-term
fundamentals of the Group, in brand promotion, investment in new,
higher end product capabilities and diversification into new
markets and selective acquisitions. The Board is excited about the
possibilities that lie ahead.
Enquiries:
The 600 Group PLC Tel: +1-407-818-1123 / 01924
Paul Dupee, Executive Chairman 415000
Neil Carrick, Company Secretary
Instinctif Partners Tel: 0207 457 2020
Tim McCall
Rosie Driscoll
Cenkos Securities plc (Nominated Tel: 020 7397 8900
Adviser 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 principal areas of activities:
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.
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.
More information on the Group can be viewed at:
www.600group.com
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