Results slip at manufacturer 600 Group

MANUFACTURER the 600 Group has faced an “uncertain and challenging” half year, with pre-tax profits and revenues slipping.

Revenues were £23.16m, down from £23.35m in the same half year period to 1 October 2016.

Pre-tax profits reached £1.38m, down from £1.61m in the same period last year.

However its Australian machine tools business moved back into profit during this period and the 600 Group board is optimistic.

In October 2016, the Heckmondwicke-based group also acquired the entire manual machine tools business of Kondia, formerly Spain’s largest manufacturer of milling machines which was placed into administration in 2015.

Paul Dupee, executive chairman of the group said: “Although both of our Divisions have been operating in uncertain and challenging market conditions they have still been able to deliver acceptable financial results for the six month period ended 1 October 2016.

“The overall Group order book continues to improve and has risen from 20% above the prior year’s level at the end of September 2016 to currently 30% above prior year and new quotation activity remains high.

“The anticipated infrastructure spending programmes outlined in both the UK and the USA should improve the market for capital goods, and the products we supply in particular, and the medium term market outlook therefore appears to be brighter.

“The actions taken to reduce overheads and become more efficient have yielded better margins and the Board remains of the view that the process of leveraging our industry recognised brands such as Colchester, Harrison, Clausing, TYKMA and Electrox through an increased worldwide distribution network will lead to revenue growth in the future.”