600 Group’s forward order book in good health
PRECISION engineering products manufacturer and distributor 600 Group has reported a 20% rise in orders reflecting signs of recovery within its machine tools and laser markets.
The Leeds-based group, which has operations across the globe, said today that while conditions in certain markets had remained difficult during the period September 27, 2009 to January 25, 2010 trading performance was improving.
Sales have been particularly strong in the US.
Order intake levels for the 14 weeks ended January 2 increased by 20% and underlying revenue was 25% higher when compared to the previous quarter.
600 Group said that its forward order book for the machine tool and laser markets remained stable and that order intake was expected to remain at existing levels for the remainder of the current financial year.
Overall gross margin improved to 33% and the overhead cost savings anticipated under the board’s turnaround strategy have been achieved.
Borrowing facilities currently total £6.5m and the board believes that this is sufficient for the group’s ongoing operational needs.
The group said that it was continuing to focus on further strengthening its cupply chain and developing its manufacturing footprint to increase capacity and reduce lead times.
The product range has been improved during the current financial year and has been focused on higher margin lines such that the improvement in gross margin can be sustained.
In a statement 600 Group said: “The group’s performance during the period was in line with the board’s expectations and, following the implementation of the cost reduction strategy and increase in EBITDA the group is well positioned to benefit from any further improvement in trading conditions.”
