Continued losses at industrial engineering group
Diversified industrial engineering company, 600 Group, says trading conditions have remained difficult since its last update on 1 September 2023, with the group continuing to be loss making at an operating level.
The Elland-based business had been looking to sell its majority interest in its wholly owned TYKMA Electrox and Control Micro Systems industrial laser businesses to a US based mid-market private equity firm.
But today, 600 Group says that while discussions around this possible sale are still ongoing, both parties have agreed to terminate the binding period of exclusivity provided by the group to the potential buyer, which would otherwise have expired on 27 December 2023.
600 Group warns: “There cannot be any certainty that a potential disposal will be concluded and nor can there be any certainty as to the terms on which any transaction may be possible.”
The group’s existing US$5.5m fully drawn debt facilities matured on 30 November 2023. The business says it remains in discussions with its lender in respect of an extension and amendment to the facility, but no extension has yet been confirmed.
Meanwhile, the audit process in respect of the company’s 2023 Annual Report for the year ended 31 March 2023 remains ongoing.
The report is now not expected to be published before the end of 2023. The Board anticipates it will be published before the end of February 2024.
As a result, trading in 600 Group’s ordinary shares on AIM will continue to be suspended pending publication of the 2023 Annual Report.
