Engineering firm puts loss down to supplies and cost inflation
Yorkshire-based engineering firm 600 Group announced a half-year pre-tax loss of £800,000 despite a 12% increase in revenues.
Chairman Paul Dupee said supply issues and cost inflation in the wake of the Covid pandemic and the war in Ukraine had impacted profitability.
The firm said it had completed the disposal of its machine tool division while it concentrated on its high-performing industrial laser division as it published its unaudited interim results on the London Stock Exchange.
Overall revenues were up from £15m in the first half of 2022 to £17m in the six months ending on September 30.
The firm’s TYKMA Electrox division performed particularly well, with revenues up 20%, while its industrial laser division saw revenues up 12%.
Paul Dupee said, “The 600 Group has now completed its transformation to target the high-margin, high-growth market of industrial laser systems. Our top-line results for the first six months of the year were encouraging with double-digit revenue growth and a particularly strong performance from TYKMA Electrox. This business is progressing well in its transition to high-specification products with improved margins, a key reason behind the Group’s revised strategy.
“Like many engineering businesses, our profitability has been impacted by supply issues and cost inflation resulting from the aftermath of the Covid pandemic and conflict in Ukraine. However, we have taken a proactive approach to manage our operations and expect the lingering issues from extended build times to clear the system by the end of the financial year.
“The 600 Group is a streamlined business with a low debt profile, agile operations and a large addressable market serving applications in key industries of the future. With highly trusted technology solutions and a strong order book, we remain well positioned to capture this market opportunity.”
The firm said it had a good forward order book and enquiry pipeline, and would continue R&D to development of new techniques and technology, including its proprietary software.