14 Aug 2009 11:18
The 600 Group PLC
Interim Management Statement & Restructuring Update
The 600 Group PLC ("600 Group" or the "Group"), the manufacturer and distributor of precision engineering products to international markets, today announces its Interim Management Statement for the period from 29 March 2009 to 13 August 2009 (the "Period") and an update on its restructuring programme.
As highlighted in the preliminary results announcement on 23 June 2009, the Group has been facing major challenges in its markets that have impacted sales revenue. Whilst these challenging conditions continue, Group revenues, after adjustment for currency movements, stabilised during the Period at around the same level as revenues for the final quarter of the previous financial year.
It is pleasing to note that overall gross margins improved during the Period, as action taken under the management team's turnaround strategy began to deliver benefits.
As previously notified, the first phase of the turnaround strategy was implemented ahead of schedule and estimated annualised cost-savings of £10 million are now being realised. The second phase of the turnaround strategy is proceeding to plan and the board anticipates that all major actions will be completed by the half year end.
Overall, 600 Group is performing in line with management expectations under the Group's well advanced turnaround strategy.
| Enquiries: | |
| The 600 Group PLC | Tel: 01924 415 000 |
| David Norman, Group Chief Executive | www.600Group.com |
| Martyn Wakeman, Group Finance Director | |
| Rawlings Financial PR Limited | Tel: 01653 618 016 |
| Catriona Valentine | |
| Keeley Clarke |
Notes to Editors:
The 600 Group PLC is the UK's largest machine tool company operating from a number of locations worldwide and sells its products into more than 180 countries. The Group has two core areas of business activity centred on machine tools and laser marking excellence:
| Machine Tool Division: 600 Group is one of the world's leading names in the manufacture and global distribution of state-of-the-art machine tools. Principal products within the internationally renowned Colchester-Harrison range include Tornado CNC turning centres, Alpha CNC combination lathes, Storm vertical machining centres and conventional centre lathes. Important parts of this division are: | ||
| - | The 600 Europe operations in West Yorkshire and Stuttgart, Germany, distribute 600 Group products throughout the UK, Continental Western and Central Europe. Additionally, it distributes workholding accessories under the Parat brand. | |
| - | 600 North America, based in Michigan, supplies Group products throughout the USA and Canada, including the Clausing range of machine tools. | |
| - | The Group's international distribution centres also stock and ship a wide range of workholding accessories manufactured for other machine builders, most of which are manufactured in the Group's UK facilities. These accessories include manual and power chucking products from Pratt Burnerd, workholding products from Crawford Collets and precision machine tool bearings from Gamet Bearings. | |
| - | To support these comprehensive product ranges, a complete technical support service is available for all customers, including on-site service engineering and extensive spare parts stockholding for the installed base of existing machines. | |
| Laser Marking Division: Electrox provides laser marking solutions for a huge range of materials and applications, through its operations in the UK and USA. Electrox is one of the few truly integrated manufacturers of laser marking systems in the world, taking end-to-end responsibility for every aspect of design, development and production of both hardware and software technologies. | ||