20 Jul 2021 07:00
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (as amended), which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018. Upon publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
20 July 2021
The 600 Group PLC
Trading Update and Notice of Results
The 600 Group PLC (the "Group"), the diversified industrial engineering company (AIM: SIXH), is pleased to provide an update in respect of current trading following the period ended 31 March 2021 ("FY21").
In doing so the Group re-confirms its expectations of FY21 performance announced by the Group on 15 April 2021 and announces that it now expects to report its audited FY21 results by 30 September 2021 as a result of COVID-19 related restrictions and delays.
Summary of Unaudited FY21 Results
· Revenue of $53.5 million (2020: $67.2 million), down by just over 20% due to the impact of COVID-19 on trading.
· Underlying EBIT of $2.5 million.
· Underlying profit before taxation (excluding adjusted items) in line with previous year at $1.1 million (2020: $1.1 million), due to management's swift response to the COVID-19 pandemic.
· Group net debt as at 31 March 2021 (excluding IFRS16 lease liabilities) was $12.8m, reduced from $14.2m as at 28 March 2020.
· $2.2m of 31 March 2021 Group net debt will be eligible for forgiveness from September 2021 as a US Paycheck Protection Program ("PPP") loan dependent on employment numbers, payroll expenditure and certain facility costs, with any amount not forgiven repayable over a two-year term with an all-in interest rate of 1.0%.
· Strong pipeline of opportunities across all operating divisions, in particular in Industrial Laser Systems where the integration of the sales operations and back-office functions of TYKMA and Control Micro Systems ("CMS") has progressed well.
· Group order book of $14.1m as at 31 March 2021 which has since increased to $22.5m as at 15 July 2021.
· Stable leadership and retention of key senior management teams.
Current Trading and Outlook
Trading in the first quarter of the current financial year has been strong, with orderbooks seeing a marked improvement since 31 March 2021 and increased levels of activity across the Group.
In particular, the pipeline in the Group's higher margin, growth market Industrial Laser Division is very encouraging - with CMS taking a number of large new orders in the current year, including a $4.3m order earlier this month - the largest in its history.
As at 15 July 2021 the Group's order book stood at $22.5m (31 March 2021: $14.1m). In addition to being a material increase over the Group's order book as at 31 March 2021, it is pleasing to note that $12.9m (57%) of the current order book relates to the Group's higher margin Industrial Laser Division.
The Group's management teams continue to respond exceptionally well in difficult conditions and, having successfully restructured the Groups' loan notes to provide financial flexibility, the Group is now positioned as a leaner and more efficient organisation which can take advantage of the operational gearing in our activities as volumes continue to increase.
Whilst there still remains some uncertainty created by the COVID-19 pandemic, the Board continues to believe in the long-term fundamentals of the Group, in brand promotion, investment in new, higher end product capabilities and diversification into new markets and selective acquisitions. The Board is excited about the possibilities that lie ahead.
Enquiries:
The 600 Group PLC Paul Dupee, Executive Chairman Neil Carrick, Company Secretary
| Tel: +1-407-818-1123 / 01924 415000 |
Instinctif Partners Tim McCall Rosie Driscoll
| Tel: 0207 457 2020 |
Cenkos Securities plc (Nominated Adviser and Broker) Ben Jeynes / Max Gould (Corporate Finance) Alex Pollen (Sales)
| Tel: 020 7397 8900 |
About The 600 Group PLC
The 600 Group PLC is a distributor, designer and manufacturer of industrial products with three principal areas of activities:
Industrial Laser Systems
Industrial laser systems cover laser marking and processing including cutting, drilling, ablation and a host of other niche applications in the marking and micro machining sectors. They require no consumables and can operate on a continuous high speed basis and can be integrated into customers' production lines. The businesses have their own technology and proprietary software. Customer applications are diverse and range from aerospace to medical and pharmaceuticals. The requirement for increased product and component traceability is one of the market drivers.
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 a 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 are sold via specialist distributors to OEMs, including other machine builders.
More information on the Group can be viewed at: www.600group.com