DJ 600 Group PLC Trading Update
RNS Number : 2378X
600 Group PLC
18 December 2019
18 December 2019
The 600 Group PLC
The 600 Group PLC ("the Group"), the diversified industrial engineering company (AIM: SIXH), today announces a trading update.
As noted in our interim results, the Group has been experiencing certain macro-economic and political uncertainties across our end markets which it anticipated might create some short-term disruption to trading.
Consequently, order intake for the fourth quarter is now expected to be significantly below originally predicted levels, with orders for Germany and the Far East, in particular, suffering delays heavily influenced by the global automotive slowdown.
There has been good progress in the UK business, where orders remain over 100% up on the prior year as well as continued good performance at the newly acquired CMS business, driven by its focus on healthcare and pharmaceuticals. Gross margins across the Group are also holding up well.
However, these positive factors will not be sufficient to make up the shortfall from the likely revenue reduction and as a result, the outturn for the full year is expected to be significantly below the Board's previous expectations.
Despite the short-term end-market weaknesses and macroeconomic uncertainty, the Board continues to believe in the long-term fundamentals of the Group and the strategy in place to de-risk and diversify the business and remains optimistic for the long-term future.
The 600 Group PLC Tel: 01924 415000 Paul Dupee, Executive Chairman Neil Carrick, Finance Director Instinctif Partners Tel: 0207 457 2020 Mark Garraway James Gray Spark Advisory Partners Limited (NOMAD) Tel: 020 3368 3553 Matt Davis WH Ireland (Broker) Tel: 020 7220 1666 Harry Ansell
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014
About The 600 Group PLC
The 600 Group PLC is a distributor, designer and manufacturer of industrial products with three principle areas of activities:
The business has a strong reputation in the market for metal turning machines. Products range from small conventional machines for education markets, CNC workshop machines and CNC production machines. Selected outsourcing partners support the manufacturing of these machines and they are marketed through the Group's wholly owned international sales organisation and a global distribution network.
Precision Engineered Components
Machine spares are distributed to customers globally to help maintain the installed base of group machines which number in excess of 100,000. Additionally, work holding products are sold via specialist distributors to OEMs, including other machine builders.
Industrial Laser Systems
Industrial laser systems cover laser marking and processing including cutting, drilling, ablation and a host of other niche applications in the marking and micro machining sectors. They require no consumables, can operate on a continuous high speed basis and can be integrated into customers' production lines. The businesses have their own technology and proprietary software. Customer applications are diverse and range from aerospace to medical and pharmaceuticals. The requirement for increased product and component traceability is one of the market drivers.
More information on the Group can be viewed at: www.600group.com
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(END) Dow Jones Newswires
December 18, 2019 02:00 ET (07:00 GMT)