Improved financial strength for listed engineering business

Elland-headquartered industrial engineering firm 600 Group said steps taken to shore up its financial position have worked well, despite global economic and political uncertainty.

In a trading update released ahead of its AGM today, the Group cited work done to eliminate its UK pension scheme completed in May 2019, resulting in the return of a $5.2m (£4.2m) surplus to the Group and elimination of $270m (£217m) of liabilities.

It said the restructuring of its operations in the UK, had also helped to significantly de-risk the Group, reduced capital expenditure requirements and improving its financial strength.

The update added: “Trading in the current financial year continues to be in line with the Board’s expectations.

“Control Micro Systems (‘CMS’), acquired towards the end of June 2019, has integrated well with the Group’s existing laser activities.

“As part of the integration process,  the management team has been strengthened and its sales and marketing functions significantly enhanced through combination with the Group’s established sales and marketing platform. 

“The acquisition of CMS is highly complementary to the Group’s existing laser business, adding significant engineering expertise as well as providing industry-leading positions in a range of high-growth sectors.

“The Group expects to announce results for the half year ending 28 September in early December 2019.”