SIXH.L Regulatory News (SIXH)

22 Nov 2006 07:00

600 Group PLC22 November 2006 22 November 2006 THE 600 GROUP PLC INTERIM RESULTS FOR THE 26 WEEKS TO 30th SEPTEMBER 2006 CHAIRMAN'S STATEMENT Market conditions During the first half of our financial year, our UK and USA markets continuedthe positive trends seen at the end of last year while other European marketsexperienced varying degrees of recovery. Results The Group's underlying order intake in the first half was ahead of last yearwith significant improvements from our operations in the UK and South Africa.The outstanding order book for the second half is very strong due principally tothe major contracts received last year to supply Mitsui Seiki machines to the UKaerospace industry. Revenue grew by 8% from £34.4m to £37.2m with increases in most geographicareas. Notwithstanding the increased sales and marketing expenses associated with thedevelopment of the Group (as outlined by Andrew Dick in our last Annual Report),the Group was able to reduce its operating loss from £1.0m to £0.6m as themargin benefits resulting from the increased turnover started to come through. Net financing income (principally related to the Group's pension scheme) wasstable at £0.9m, generating a profit before tax of £0.3m compared with a loss of£0.1m last year. Net funds at the period end were £3.5m compared with £4.0m for the correspondingperiod end last year and £5.8m at the end of the financial year. The cashoutflow during the first half was due principally to the phasing of workingcapital movements. Dividend The board does not yet consider that the results allow the payment of adividend. People John Fussey will be retiring as Group Finance Director at the end of Decemberwhen he will be succeeded by Martyn Wakeman who joined the board at thebeginning of October. As I have been Chairman for 14 years and with the transition from Tony Sweetento Andrew Dick as Group Chief Executive successfully accomplished, my fellowdirectors are now in the process of appointing my successor, with the intentionthat I should retire from the board on his appointment as Chairman. Outlook In the likely absence of any major changes in our principal markets, the mediumterm outlook for the Group is dependent on the implementation of our developmentplans coupled with further improvements in our machine tool supply chains. During the first half of the year we have made significant improvements to ourmachine tool selling organisations in North America and the UK and furtherimprovements are planned during the second half of the year in continentalEurope. Additional outsourced supply of lathes is now in place with deliveriesdue to commence within the next few months. Our laser marking business has alsostrengthened its USA selling operation and has continued the expansion andimprovement of its product range with the launch of new technologically advancedproducts. These actions will start to have a positive impact on the Group's performanceduring the second half of the year. Michael WrightChairman22 November 2006 Enquiries: The 600 Group PLCAndrew Dick, Group Chief ExecutiveJohn Fussey, Group Finance Director Telephone: 0113 277 6100 Hudson SandlerNick Lyon Telephone: 020 7796 4133 Consolidated income statement (unaudited) 26 weeks to 26 weeks 52 weeks 30.09.06 to 01.10.05 to 01.04.06 £000 £000 £000Revenue 37,158 34,435 70,993 Operating loss before restructuring costs (622) (992) (1,410)Restructuring costs - - (1,876) Operating loss before financing costs (622) (992) (3,286) Net financing income 877 854 1,567 Profit/(loss) before tax 255 (138) (1,719) Income tax (charge)/credit (note 2) (97) 22 (429)Profit/(loss) for the period 158 (116) (2,148) Attributable to: Equity holders of the parent 89 (150) (2,196)Minority interest 69 34 48Profit/(loss) for the period 158 (116) (2,148) Earnings per share - basic and diluted (note 3) 0.2p (0.3)p (3.9)p Consolidated statement of recognised income and expense (unaudited) 26 weeks to 26 weeks to 52 weeks to 30.09.06 01.10.05 01.04.06 £000 £000 £000Foreign exchange translation differences (1,039) 693 893Net actuarial (losses)/gains on employee benefit schemes (1,280) 1,200 9,244Revaluation of properties - - 3,397Deferred tax on above items 384 - (3,010) Net (expense)/income recognised directly in equity (1,935) 1,893 10,524 Profit/(loss) for the period 158 (116) (2,148) Total recognised (expense)/income for the period (1,777) 1,777 8,376 Attributable to:Equity holders of the parent (1,756) 1,741 8,295Minority interest (21) 36 81Total recognised (expense)/income for the period (1,777) 1,777 8,376 Summarised consolidated balance sheet (unaudited) At 30.09.06 At 01.04.06 At 01.10.05 £000 £000 £000Non-current assetsProperty, plant and equipment 13,477 14,203 11,476Intangible assets 2,174 2,072 2,764Investments 84 84 84Employee benefits 7,060 7,400 -Deferred tax assets 303 303 681 23,098 24,062 15,005Current assetsInventory 21,573 21,147 22,725Trade and other receivables 17,054 15,740 14,273Cash and cash equivalents 5,557 7,657 5,785 44,184 44,544 42,783 Total assets 67,282 68,606 57,788 Non-current liabilitiesEmployee benefits (2,146) (2,281) (3,626)Deferred tax liability (2,715) (3,003) (945) (4,861) (5,284) (4,571)Current liabilitiesTrade and other payables (15,226) (14,633) (12,202)Income tax payable (83) (134) (26)Provisions (465) (388) (438)Loans and other borrowings (2,057) (1,809) (1,758) (17,831) (16,964) (14,424) Total liabilities (22,692) (22,248) (18,995) Net assets 44,590 46,358 38,793 Shareholders' equityCalled-up share capital 14,212 14,212 14,212Reserves 30,006 31,753 24,222Total equity attributable to equity holders of the parent 44,218 45,965 38,434 Minority interest 372 393 359 Total equity 44,590 46,358 38,793 Summarised consolidated cash flow statement (unaudited) 26 weeks 26 weeks 52 weeks to 30.09.06 to 01.10.05 to 01.04.06 £000 £000 £000Cash flows from operating activities Profit/(loss) for the period 158 (116) (2,148) Adjustments for: Amortisation of development expenditure 54 - 67Depreciation 622 832 1,640Impairment of goodwill - - 1,254Net financial income (877) (854) (1,567)Profit on disposal of plant and equipment - - (26)Equity share option expense 9 16 31Income tax expense/(income) 97 (22) 429Operating profit/(loss) before changes in working capital andprovisions 63 (144) (320)(Increase)/decrease in working capital (1,976) 946 3,699Decrease/(increase) in employee benefits 20 (970) (1,006)Cash generated from the operations (1,893) (168) 2,373Interest paid (56) - (170)Income tax (paid)/received (56) 86 (66)Net cash from operating activities (2,005) (82) 2,137 Cash flows from investing activitiesInterest received - 39 199Proceeds from sale of plant and equipment - 14 168Purchase of plant and equipment (192) (261) (520)Development expenditure capitalised (182) - (402)Net cash from investing activities (374) (208) (555) Cash flows from financing activitiesNet receipt of external borrowing 1,191 5 (305)Equity dividends paid - (2,274) (2,274)Reduction in current asset investments - 346 580Net cash from financing activities 1,191 (1,923) (1,999) Net decrease in cash and cash equivalents (1,188) (2,213) (417)Reduction in current asset investments - (346) (580)(Increase)/decrease in debt and finance leases (1,191) (5) 305Decrease in net funds (2,379) (2,564) (692)Net funds at beginning of period 5,848 6,617 6,617Exchange effects on net funds 31 (26) (77)Net funds at end of period 3,500 4,027 5,848 Notes to the financial information 1. Basis of preparation The 600 Group PLC (the "Company") is a public limited company incorporated anddomiciled in England and Wales. The Company's ordinary shares are traded on theLondon Stock Exchange. The Consolidated Interim Financial Statements of theCompany for the 26-week period ended 30 September 2006 comprise the Company andits subsidiaries (together referred to as the "Group"). The Consolidated Interim Financial Statements have been prepared on the basis ofthe recognition and measurement requirements of International FinancialReporting Standards ("IFRSs") in issue and endorsed by the EU and effective at30 September 2006 but do not include all the information required for fullFinancial Statements. The Statements have been prepared using the accounting policies and presentationthat were applied in the Company's published Consolidated Financial Statementsfor the 52-week period ended 1 April 2006, copies of which can be obtained fromthe Company's website. The Consolidated Interim Financial Statements do not constitute statutoryaccounts and are unaudited. Statutory accounts for the 52-week period ended 1April 2006 have been delivered to the Registrar of Companies. KPMG Audit Plc,The 600 Group PLC's auditors, reported on those accounts under section 235 ofthe Companies Act 1985. Their report was unqualified and did not contain astatement under section 237(2) or (3) of that Act. 2. Taxation The charge for corporation tax comprises UK taxation £nil (2005: £nil), overseastaxation charge of £1,000 (2005: credit £17,000) and deferred taxation charge of£96,000 (2005: credit £5,000). 3. Earnings per share The basic earnings per share is based on the profit for the period of £89,000(2005: loss £150,000) and the weighted average number of shares outstanding of56,847,149 (2005: 56,846,137). For diluted earnings per share, the weightedaverage number of ordinary shares in issue is adjusted to 56,921,107 and assumesconversion of dilutive potential ordinary shares of 73,958. In determining thediluted earnings per share for 2005, no adjustments were required from the basicearnings per share as all potential ordinary shares were anti-dilutive. 4. Interim report Copies of the interim report will be sent to all shareholders and will beavailable to members of the public from the company's registered office at 600House, Landmark Court, Revie Road, Leeds, LS11 8JT. The 600 Group PLC is registered in England and Wales No. 196730. 5. Share price information Information concerning the day-to-day movement of The 600 Group PLC share pricecan be found by dialling 0906 003 4031 for the Financial Times share priceservice. The 600 Group PLC600 HouseLandmark CourtRevie RoadLeedsLS11 8JT Telephone: 44 (0) 113 277 6100Facsimile: 44 (0) 113 276 5600www.600group.com This information is provided by RNS The company news service from the London Stock Exchange