Better than expected performance for listed engineering company
Industrial engineering business 600 Group expects to report revenues of approximately $53m/£38.5m down over 20% on the prior year.
The Elland-based business, which has issued a trading update for the financial year ended 31 March 2021, adds despite this drop in revenues it is forecasting underlying EBIT of approximately $2.5m/£1.8m for the full year due to operational cost savings and Government assistance programmes.
The Group adds its performance is above the Board’s post-pandemic expectations, and a strong increase in order activity in March improved its overall orderbook to approximately $14m/£10.2m as at 31 March 2021, almost 70% above the prior year.
Over the last few weeks, activity has significantly increased, with a further $4m/£2.9m of orders already received so far in April.
600 Group notes it has been able to largely maintain pre-pandemic employment levels, with assistance from Government furlough in the UK and Australia, and forgiveness of USA Government Paycheck Protection Program (“PPP”) loans.
Paul Dupee, group executive chairman, said: “The particularly strong order activity over the last two months, supported by a level of Government assistance, has enabled the business to maintain its skilled workforce during the pandemic.
“This has allowed us to respond quickly to recent demand and significantly improve the size and quality of the Group’s orderbook, leaving the business well placed as markets improve.”
