20 Mar 2024 11:36
REPLACEMENT: TRADING UPDATE AND UPDATE REGARDING ANNUAL REPORT
The following amendments have been made to the "Trading Update and Update regarding Annual Report" announcement released on 19 March 2024 at 17:15 under RNS No 4863H (the "Announcement").
The Announcement incorrectly stated that the pursuant to Rule 41 of the AIM Rules for Companies, the admission of the Company's ordinary shares to trading on the AIM market of the London Stock Exchange is due to be cancelled ("Cancellation") with effect from 2 April 2024. The correct date of Cancellation is 3 April 2024. All other details remain unchanged.
The full text of the amended announcement is set out below.
20 March 2024
The 600 Group PLC
("600 Group", the "Group" of or the "Company")
Trading Update
Update regarding Debt Facilities and Annual Report
600 Group plc, the industrial laser systems manufacturer (AIM: SIXH), announces a trading update for the financial year ended 31 March 2024 ("FY24") and provides a further update in respect of the Company's currently defaulted bank facilities.
Unaudited FY24 revenues for the 11 months ended 29 February 2024 were US$22.6 million, 19% and 24% below the comparative periods in FY23 and FY22 respectively, with an FY24 gross margin of 34.6% (2.0% lower than FY23 and 5.0% lower than FY22) and the Group expected to incur FY24 losses before tax of more than US$5 million.
As announced on 6 October 2023, the Group has been in negotiations for the sale of its operating businesses, all located in the United States, but has so far been unable to conclude a satisfactory transaction. As a result, the Group's US subsidiary, 600 Group, Inc, continues to be in default on the Group's now expired and fully drawn US$5.5 million facility with Bank of America (the "Facility"), in respect of which US$0.2 million of interest has now accrued.
Whilst negotiations continue with potential acquirors for the operating businesses, there can be no assurance that a satisfactory deal will be concluded within a reasonable time frame or that the terms of any such transaction would enable the Company to repay the Facility. As a result, the Company is currently considering various alternatives including bankruptcy and/or dissolution under US laws for its US subsidiaries.
The Board of Directors confirms that the Group will not be able to publish the 2023 Annual Report and/or unaudited interim results for the six months ended 30 September 2023 prior to 31 March 2024.
Pursuant to Rule 41 of the AIM Rules for Companies, the admission of the Company's ordinary shares to trading on the AIM market of the London Stock Exchange is due to be cancelled with effect from 3 April 2024, being the date falling six months from the date of suspension of trading in the Company's ordinary shares on 2 October 2023 ("Cancellation").
Prior to Cancellation, and notwithstanding the prevailing suspension of trading in the Company's ordinary shares, the Company will continue to make announcements as and when there are any developments that require announcement in accordance with its obligations under the AIM Rules for Companies.
Enquiries:
The 600 Group PLC Paul Dupee, Executive Chairman
| Tel: +1 407 818 1123 |
Cavendish Capital Markets Ltd (Nominated Adviser and Broker) Ben Jeynes / Dan Hodkinson (Corporate Finance) Henry Nicol (Sales)
| Tel: 020 7220 0500 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time. Upon the publication of this announcement, this inside information is now considered to be in the public domain