600 Group second half outlook in line with expectations
600 Group, the AIM-listed machine tools and laser marking company, said its outlook for the second half of the year is in line with expectations.
Ahead of its AGM today, chairman Paul Dupee said revenues are slightly ahead of the corresponding period last year, and order intake is up by around 6%.
“These figures include the adverse impact of foreign exchange translation, without which revenues and order intake would be approximately 5% higher still. The net effect of currency on group operating profit is broadly neutral,” he said.
Dupee also said the company was “disappointed” by the action of US-based ProPhotonix, of which 600 Group became a shareholder in August, to adopt a rights agreement designed to discourage the purchase of further shares in the company without the approval of its board of directors.
ProPhotonix is based in Salem, New Hampshire and consists of two businesses which manufacture LED systems in Cork, Ireland and produce and distribute laser modules and diodes from Hatfield Broad Oak in the UK.
“Whilst we are disappointed with such action, we are actively engaging in constructive dialogue with the board and management of ProPhotonix with the intention of maximising shareholder value in both companies. Meanwhile, we consider that the acquisition of a substantial minority shareholding in Prophotonix, by an exchange of shares with major UK based institutional shareholders, offers potential value to our shareholders in the medium term,” Dupee said.
