30 May 2019 07:00
30 May 2019
The 600 Group Plc
("600 Group" or "the Group")
Pension scheme buyout completion and trading update
Pension scheme buyout
The 600 Group PLC, the diversified industrial engineering company (AIM: SIXH), today confirms the completion of the buyout of its UK pension scheme liabilities and subsequent scheme wind up. Following the completion of the transaction, all surplus funds totalling £6.3m/ $8m gross and £4.1/ $5.2m net of tax have now been returned to the Group.
On 17 July 2018 the Group announced that the Trustee of its UK defined benefits scheme had agreed to a buyout of the scheme's £201m/ $270m liabilities by Pension Insurance Corporation Plc, a specialist insurer. The buyout was undertaken to better secure benefits paid to the scheme's 2,000 pensioners and 800 deferred members whilst simultaneously relieving the Company of the disproportionate liability of such a large scheme.
The completion of the transaction provides the Group with significantly greater liquidity and financial flexibility. The £4.1m/ $5.2m post-tax cash surplus will be used to fund working capital, invest in product development and provide flexibility to supplement organic growth and value-enhancing bolt-on acquisition opportunities.
Trading update
Ahead of announcing full year results at the end of June/ early July 2019, the Group today also provides an update on trading for the year ended 30 March 2019. Despite the continuance of certain macro-economic and political uncertainties across our end markets, trading in the second half of the financial year has been solid and the Group expects to deliver an outcome for the full year in line with Directors' expectations. Enquiry and quotation activity have remained good with further progress in the Group's orderbook.
Paul Dupee, Executive Chairman, commented:
"The completion of the pension buyout significantly de-risks the Group's balance sheet, providing greatly improved financial flexibility as we continue our strategy for growth and build a global industrials business."
Enquiries:
The 600 Group PLC Paul Dupee, Executive Chairman Neil Carrick, Finance Director
| Tel: 01924 415000 |
Instinctif Partners Mark Garraway James Gray
| Tel: 0207 457 2020 |
Spark Advisory Partners Limited (NOMAD) Matt Davis Miriam Greenwood
| Tel: 020 3368 3553 |
WH Ireland (Broker) Adam Pollock
| Tel: 020 7220 1666 |
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About The 600 Group PLC
The 600 Group PLC is a distributor, designer and manufacturer of industrial products with three principle areas of activities:
Machine Tools
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 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 and taper roller bearings are sold via specialist distributors to OEMs, including other machine builders.
Industrial Laser Systems
Industrial laser systems are a technologically superior alternative to ink jet marking. It requires no consumables and can operate on a continuous high speed basis when integrated into customers' production lines. The business has its own technology and proprietary software. Customer applications are diverse and range from telecommunications to 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