SIXH.L Regulatory News (SIXH)

5 Sep 2007 12:00

600 Group PLC05 September 2007 5 September 2007 The 600 Group PLC CHAIRMAN'S STATEMENT TO THE 2007 AGM As anticipated in the announcement of the Group's preliminary results in June,our UK, North American and South African machine tool markets continued thepositive trends seen over the last 2 years while our European and Far Easternmarkets showed more limited growth. Overall sales for the first 17 weeks of the current financial year increased by7% compared with the same period last year and, after adjustment for thedisposal of Eriickson Machine Tools Inc., underlying sales increased by 10%. The Group's total underlying order intake in the first 17 weeks increased by 17%compared to last year, with significant improvements from our UK, North Americanand South African businesses. Our outstanding order book is now 20% higher thanlast year and includes a major contract awarded for three Mitsui Seiki machinesto be supplied to a major UK aerospace company. The value of the contract isapproximately £2.5m and delivery is anticipated in the first half of the nextfinancial year when the profit on the contract will be recognised. Operating margins remain in line with our expectations with strict cost controlsbeing maintained. We continue to invest in product design and development aswell as sales, marketing and our distribution network. As anticipated, due toseasonal factors and increased activity levels, net cash balances have reducedin the first four periods of the current year. During the current financial year we have continued to focus our efforts onorganic growth with specific emphasis on product range improvements andexpansion of our technical support and distribution network. We have reached anagreement, in principle, to form a Joint Venture Company with our distributor inSlovakia to focus on developing our Eastern European market. We anticipate thatwe will commence operation in January 2008 but do not expect it to have asignificant impact on current year trading results. We will be exhibiting a range of new products at our stand at the major Europeanmachine tool exhibition in Hanover later this month. I am pleased to announce that Stephen Rutherford has agreed to join the Board asa non-executive director with effect from 1st October 2007. Stephen hasextensive International operational experience and is currently non-executiveChairman of The Bridon Group. There is no other information which requiresdisclosure under the Listing Rules (LR 9.6.13) concerning Stephen's appointment. To conclude, the Group is continuing to implement its strategic plan and I amconfident that it will maintain the growth and improvement in performance thatwas achieved in the last financial year. Enquiries: The 600 Group PLCAndrew Dick, Group Chief ExecutiveMartyn Wakeman, Group Finance Director Telephone: 0113 277 6100 Hudson SandlerNick Lyon Telephone: 020 7796 4133 Notes to Editors: The 600 Group PLC is an international group, manufacturing and marketing machinetools, machine tool accessories, lasers and other engineering products. The Group operate from some 35 locations world-wide and sell its products aroundthe world. Its international marketing and distribution network handles bothGroup products and those of other manufacturers. Website: www. 600group.com This information is provided by RNS The company news service from the London Stock Exchange