(Alliance News) - 600 Group PLC on Wednesday said it expects to report its results the year to the end of March 2020 below expectations due to macro-economic and political uncertainties.
The stock was 27% lower on Wednesday in London at 13.81 pence a share.
The AIM-listed industrial engineering company said it has been experiencing certain macro-economic and political uncertainties across its end markets. As a result, it now expects its order intake for the fourth quarter of 2019 to be "significantly" below originally predicted levels.
600 Group said its orders for Germany and the far east, in particular, are suffering delays amid the global automotive slowdown.
More positively, the company said there has been "good" progress in the UK business, where orders remain doubled on the prior year. The newly acquired CMS business has also delivered a "good" performance, 600 Group said, driven by its focus on healthcare and pharmaceuticals.
"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," the company said in its statement Wednesday.
Looking ahead, 600 Group said it remains optimistic for the long-term future despite the short-term end-market weaknesses and macroeconomic uncertainty.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
