SIXH.L Regulatory News (SIXH)

The 600 Group PLC

 ("the Group" or "the Company")

Trading Update

The 600 Group PLC, the diversified engineering group, today announces an update on trading.

During the first half of the year, trading was adversely impacted by several issues which the Directors believe are one-off and included the temporary closure of the Johannesburg factory as a result of a national strike by the National Union of Metal Workers which is now over, supply disruption associated with transferring the European machine tools business to Poland and in the US, a significant rise in input costs reducing margins. As a result it is anticipated that the Group's underlying operating profits for the year will be ahead of the last year, but likely to be below current market expectations.

Trading in the second half is expected to be much stronger as the Group begins to see the benefits of the transition of the machine tools business to Poland and as a result volume and margin benefits.

The order book is currently 36% higher than the equivalent period last year and this includes the winning of a second contract from Eskom, the South African state utilitycompany.