600 Group PLC
05 September 2007
5 September 2007
The 600 Group PLC
CHAIRMAN'S STATEMENT TO THE 2007 AGM
As anticipated in the announcement of the Group's preliminary results in June,
our UK, North American and South African machine tool markets continued the
positive trends seen over the last 2 years while our European and Far Eastern
markets showed more limited growth.
Overall sales for the first 17 weeks of the current financial year increased by
7% compared with the same period last year and, after adjustment for the
disposal of Eriickson Machine Tools Inc., underlying sales increased by 10%.
The Group's total underlying order intake in the first 17 weeks increased by 17%
compared to last year, with significant improvements from our UK, North American
and South African businesses. Our outstanding order book is now 20% higher than
last year and includes a major contract awarded for three Mitsui Seiki machines
to be supplied to a major UK aerospace company. The value of the contract is
approximately £2.5m and delivery is anticipated in the first half of the next
financial year when the profit on the contract will be recognised.
Operating margins remain in line with our expectations with strict cost controls
being maintained. We continue to invest in product design and development as
well as sales, marketing and our distribution network. As anticipated, due to
seasonal factors and increased activity levels, net cash balances have reduced
in the first four periods of the current year.
During the current financial year we have continued to focus our efforts on
organic growth with specific emphasis on product range improvements and
expansion of our technical support and distribution network. We have reached an
agreement, in principle, to form a Joint Venture Company with our distributor in
Slovakia to focus on developing our Eastern European market. We anticipate that
we will commence operation in January 2008 but do not expect it to have a
significant impact on current year trading results.
We will be exhibiting a range of new products at our stand at the major European
machine tool exhibition in Hanover later this month.
I am pleased to announce that Stephen Rutherford has agreed to join the Board as
a non-executive director with effect from 1st October 2007. Stephen has
extensive International operational experience and is currently non-executive
Chairman of The Bridon Group. There is no other information which requires
disclosure under the Listing Rules (LR 9.6.13) concerning Stephen's appointment.
To conclude, the Group is continuing to implement its strategic plan and I am
confident that it will maintain the growth and improvement in performance that
was achieved in the last financial year.
Enquiries:
The 600 Group PLC
Andrew Dick, Group Chief Executive
Martyn Wakeman, Group Finance Director Telephone: 0113 277 6100
Hudson Sandler
Nick Lyon Telephone: 020 7796 4133
Notes to Editors:
The 600 Group PLC is an international group, manufacturing and marketing machine
tools, machine tool accessories, lasers and other engineering products.
The Group operate from some 35 locations world-wide and sell its products around
the world. Its international marketing and distribution network handles both
Group products and those of other manufacturers.
Website: www. 600group.com
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