The 600 Group Plc
Interim Management Statement
The 600 Group is today publishing its first Interim Management Statement as required by the UK Listing Authority’s Disclosure and Transparency Rules relating to the period 1 April 2007 to 30 June 2007.
Overall sales for the first 13 weeks of the financial year increased 6% compared with the same period last year. On 2 April 2007 Erickson Machine Tools Inc. was sold and underlying sales, after adjustment for this disposal, increased by 9%.
Order intake activity across the Group has continued at an encouraging level. During the period, we were awarded a substantial contract by a major aerospace group for the supply of three Mitsui Seiki machining centres. The value of the contract is approximately £2.5m and delivery is anticipated in the first half of the next financial year when the majority of the profit on the contract will be recognised.
Operating margins are in line with our expectations with strict cost controls being maintained. We continue to invest in product design and development as well as sales and marketing. As anticipated, due to seasonal factors and increased activity levels, net cash balances reduced in the period.
On 1 May 2007 the UK parts and service business of Toyoda-Mitsui was acquired for a cash consideration of £390,000.
Subsequent to the period end, on 1 August 2007, Mr. Martin Temple CBE succeeded Professor Michael Wright as non-executive Chairman of the Group. Tony Sweeten also retired as a director at the same time, but will continue to be available to assist the Board in a consultancy capacity until 31 December 2008.
Outlook
Our trading outlook remains in line with the Board’s expectations. We continue to forecast overall growth in demand for machine tools and laser marking equipment. The medium term outlook is dependent upon the implementation of our strategic plans and further improvements in our machine tool supply chain.
Enquiries:
The 600 Group PLC
Andrew Dick, Group Chief Executive
Martyn Wakeman, Group Finance Director
Telephone: 0113 277 6100
Hudson Sandler
Wendy Baker
Telephone: 020 7796 4133
Notes to Editors:
The 600 Group PLC is an international group, manufacturing and marketing machine tools, machine tool accessories, lasers and other engineering products.
The Group operate from some 35 locations world-wide and sell its products around the world. Its international marketing and distribution network handles both Group products and those of other manufacturers.
Website: http://www.600group.com
