‘Disappointing’ results for engineering firm as virus takes its toll
“Significant disruption” inflicted by the pandemic hit the performance of listed industrial engineering business 600 Group, which has issued its unaudited interim results for the six months ended 30 September 2020.
The Elland-based company’s revenues have fallen 29% to $25.4m/£19m (FY20 H1: $35.7m/£26.7m), which it mainly attributes to the impact of Covid-19.
Pre-tax underlying loss for the Group before adjusting items was $0.6m/£450,000 (FY20 H1: profit $1.7m/£1.3m), with a loss of $1.2m/£900,000 (FY 20 H1: profit $1.5m/£1.1m) after adjusting items.
The company’s overview notes: “The six month period ended 30 September 2020 bore the brunt of the impact from the COVID-19 pandemic with the Group trading at a loss in May and June as all facilities were affected by local and national shutdowns and the UK factory operation closed completely for the month of May.
“Revenues and orders inevitably fell, but the Board and local management teams responded quickly, adopting short time and home working and furloughing some staff with others accepting temporary salary reductions.
“The Group took advantage of Government stimulus packages including loans under the USA Government Paycheck Protection Program (PPP) and the UK Coronavirus Large Business Interruption Scheme (CLBILS).”
“Whilst these results are disappointing the Group has continued to trade at a positive cash position with adjusted EBITDA, after allowing for property rentals, at $0.5m in the six months to September 2020 which compares to $2.7m in the previous half year.”
The Group notes its debt levels have stabilised as a result of significant steps taken in the prior year to de-risk the business.
Paul Dupee, executive chairman, added: “The reporting period has been heavily impacted by the Covid-19 pandemic.
“However, the Group responded quickly to the challenges, reducing costs and keeping our core competencies together.
“The de-risking of the Group, both operationally and financially, in the last year has created a platform from which we can leverage the strength of the Group’s brands and grow the business into increasingly diversified niche markets worldwide both organically and by acquisition once activity levels normalise.
“Whilst short-term macro-economic uncertainty remains, I am confident we will come out of this crisis a stronger and leaner business.”
