Manufacturer rides out US uncertainty bringing in £47m
Industrial manufacturer 600 Group has delivered a solid performance during a period of uncertainty both in the UK and USA, it said today.
It faced an “uncertain and challenging” second half last year following Brexit and the US election, but its full year results to 1 April 2017 showed a marked improvement.
Revenues increased to £47m from £45.3m the year before, whilst pre-tax profits came in at £3.2m,up from £1m in the previous period.
It said it had achieved cost reductions from the successful integration of the UK industrial laser manufacturing facilities into the USA, as well as strong order books for both businesses.
More than 60% of the Heckmondwike group’s activities are conducted in the USA and its businesses across the Atlantic are the main profit drivers of the group.
The 600 Group spent the year involved in the integration of its TYKMA and Electrox acquisitions, and its industrial laser systems division now accounts for 49% of the Group’s underlying operating profits.
Its machine tools division recovered from the US election last year which affected sales across the pond.
In the UK, uncertainty caused in the run up to the Brexit vote adversely impacted order activity, it said, and the subsequent fall in the value of Sterling had the effect of pushing up the cost of imported machine components and squeezing margins. It said it was forced to introduce a price increase as a result.
In October 2016 the 600 Group acquired the Spanish machine tool brand of Kondia and certain assets for a minimal consideration of €50,000. Kondia was formerly Spain’s largest manufacturer of milling machines and was placed into administration in 2015
Paul Dupee, executive chairman of The 600 Group, said: “Trading in the period since the FY17 financial year end has been in line with the Board’s expectations and order books in both divisions are much improved.
“Overall orders now stand 42% up on the same time last year which provides greater visibility of future trading. We are continuing to leverage our industry recognised brands through an increased worldwide distribution network and introducing new products to widen the customer base.
“Whilst industry forecasts of growth for both divisions remain at low levels for the coming year, we believe the investment in new products and new markets will lead to increased market share and position the Group’s businesses well for any increase in market activity.”
