Pandemic inflicts 20% revenue fall at engineering group

Industrial engineering company The 600 Group has reported its summarised unaudited FY21 results, with revenues of $53.5m/£39.2m (2020: $67.2m/£49.2m), down by just over 20% due to the impact of Covid-19.

The Elland-based company has also recorded underlying EBIT of $2.5m/£1.8m and underlying pre-tax profits (excluding adjusted items) in line with previous year at $1.1m/£805,000.

Its group order book was worth $14.1m/£10.3m as at 31 March 2021, which has since increased to $22.5m/£16.5m as at 15 July 2021.

600 Group Strong says it has a strong pipeline of opportunities across all operating divisions, in particular in Industrial Laser Systems.

The update adds: “Trading in the first quarter of the current financial year has been strong, with orderbooks seeing a marked improvement since 31 March 2021 and increased levels of activity across the Group.

“In particular, the pipeline in the Group’s higher margin, growth market Industrial Laser Division is very encouraging – with CMS taking a number of large new orders in the current year, including a $4.3m order earlier this month – the largest in its history.

“The Group’s management teams continue to respond exceptionally well in difficult conditions and, having successfully restructured the Groups’ loan notes to provide financial flexibility, the Group is now positioned as a leaner and more efficient organisation which can take advantage of the operational gearing in our activities as volumes continue to increase.

“Whilst there still remains some uncertainty created by the Covid-19 pandemic, the Board continues to believe in the long-term fundamentals of the Group, in brand promotion, investment in new, higher end product capabilities and diversification into new markets and selective acquisitions.”

600 Group now expects to report its audited FY21 results by 30 September 2021, as a result of Covid-19 related restrictions and delays.

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