Interim Results

600 Group PLC
19 November 2002


                                                              19th November 2002

                              THE 600 GROUP PLC


            INTERIM RESULTS FOR THE 26 WEEKS TO 28th SEPTEMBER 2002





Chairman's statement



Results



As anticipated in our preliminary announcement in June, all major international
machine tool markets have remained at the depressed levels seen during the
second half of last year. Although there were some signs of improvements in
manufacturing activity in the first quarter, they were offset by the effects of
increasing worldwide uncertainty during the summer months.



The Group's performance during the first half reflected these market conditions.
Order levels have been generally flat over the last 12 months and the underlying
loss before tax (before pension credit, goodwill and reorganisation costs) was
maintained at the level reported for the second half of last year.



Year-on-year comparisons show turnover dropping from £43.7m to £33.4m,
illustrating the impact of the severe market downturn experienced during the
first half of last year. Although profit before tax declined from £1.6m to a
loss of £0.9m, operating loss before the pension credit was maintained at last
year's level, with the benefits of the major restructuring exercise carried out
in the second half of last year offsetting the impact of the reduced activity.



The SSAP24 calculation of pension cost for the period, based on the March 2002
actuarial revaluation, generated a credit of £0.5m (2001:credit £2.8m).



Net cash at the period end was £7.9m, maintaining the level reported at the last
half year despite the difficult trading conditions, reorganisation costs and the
maintained dividend.



Dividend



The interim dividend is maintained at 1.5p per share.



Outlook



We do not anticipate any recovery in the capital goods cycle until well into the
next financial year. Therefore, we are continuing our cost reduction programme
to make the Group profitable at the current level of activity, whilst
maintaining substantial expenditure on product and market development. A major
component of this programme is the previously announced consolidation of
Crawford Collets and Pratt Burnerd International onto the Pratt Burnerd site in
Halifax. The cost of the move will be absorbed by the ongoing cost savings and
the disposal of redundant assets.



The remaining parts of the programme will be completed during the second half of
the year and we anticipate that this restructuring will have a positive effect
on the ongoing performance of the Group by the end of the financial year.




Michael Wright
Chairman
19 November 2002




Enquiries:


Tony Sweeten, Group Chief Executive
John Fussey, Group Finance Director
Tel: [phone] on Tuesday, 19th November 2002
Thereafter Tel: [phone]



Nick Lyon
Hudson Sandler
Tel: [phone]





Consolidated profit and loss account (unaudited)

 
                                                                      26 weeks to   26 weeks to   52 weeks to
                                                                        28.09.02      29.09.01      30.03.02
                                                                          £000          £000          £000

Turnover                                                                  33,395        43,731        80,451

Operating (Loss) before pension credit                                   (1,480)       (1,433)       (3,486)
Pension credit                                                               498         2,838         5,853

Operating (Loss)/Profit                                                    (982)         1,405         2,367

Net interest receivable                                                      128           178           299
(Loss)/Profit on ordinary activities before taxation                       (854)         1,583         2,666

Taxation                                                                     139         (735)       (1,210)
(Loss)/Profit for the period                                               (715)           848         1,456

Dividend
 - Equity                                                                  (841)         (841)       (3,084)
 - Non-equity                                                                  -          (60)          (60)
Transferred from reserves                                                (1,556)          (53)       (1,688)

Basic and diluted earnings  per share                                     (1.3)p          1.4p          2.5p
Dividend per ordinary share                                                 1.5p          1.5p          5.5p



Notes

1      The charge for corporation tax comprises UK taxation £nil (2001:credit
£299,000), overseas taxation credit of £49,000 (2001:charge £183,000) and
deferred taxation credit of £90,000 (2001:charge £851,000).

2      The basic earnings per share are based on the loss for the period of
£715,000 (2001:profit for the period of £788,000 after deducting non-equity
dividends of £60,000) and the weighted average number of shares outstanding of
56,095,189 (2001:56,049,778). For diluted earnings per share, the weighted
average number of ordinary shares in issue is adjusted to 56,277,301 (2001:
56,560,263) and assumes conversion of dilutive potential ordinary shares of
182,112 (2001:510,485).


Summarised consolidated balance sheet (unaudited)


                                                                                                       As restated*
                                                                      At 28.09.02     At 30.03.02       at 29.09.01
                                                                          £000             £000            £000

Fixed assets                                                              18,564          19,535          20,511

Working capital
Stocks                                                                    24,335          26,037          27,690
Pension fund prepayment                                                   30,517          30,019          27,004
Debtors                                                                   17,183          18,993          20,076
Deferred taxation                                                        (7,204)         (7,239)         (6,520)
Other creditors and provisions                                          (14,015)        (19,218)        (15,934)
                                                                          50,816          48,592          52,316

Net cash                                                                   7,940          11,518           8,014

Capital employed                                                          77,320          79,645          80,841

Capital and reserves
Called up share capital                                                   14,025          14,020          14,012
Reserves                                                                  63,295          65,625          66,829
                                                                          77,320          79,645          80,841


* Restated to incorporate the revision of the estimated deferred tax provision
made at the time of the last interim accounts.




Reconciliation of movement in shareholders' funds


                                                                                      As restated*
                                                                        26 weeks to    26 weeks to      52 weeks to
                                                                          28.09.02        29.09.01        30.03.02
                                                                            £000            £000            £000

(Loss)/Profit for the period                                               (715)             848           1,456
Dividends                                                                  (841)           (901)         (3,144)
                                                                         (1,556)            (53)         (1,688)
Currency translation differences                                           (778)           (727)           (303)
New share capital subscribed                                                   9               -              15
Repayment and cancellation of preference shares                                -         (2,738)         (2,738)
                                                                         (2,325)         (3,518)         (4,714)

Opening shareholders' funds as originally stated                          79,645          89,958          89,958
Prior year adjustment re deferred taxation                                     -         (5,599)         (5,599)
Opening shareholders' funds as restated                                   79,645          84,359          84,359
Closing shareholders' funds                                               77,320          80,841          79,645



* Restated to incorporate the revision of the estimated deferred tax provision
made at the time of the last interim accounts.



Summarised consolidated cash flow statement (unaudited)


                                                                       26 weeks to     26 weeks to     52 weeks to
                                                                         28.09.02        29.09.01        30.03.02
                                                                           £000            £000            £000

Operating (loss)/profit                                                    (982)           1,405           2,367
Depreciation less profit on sale of fixed assets                             979           1,177           2,356
Amortisation of goodwill                                                      94              93             193
Increase in pension prepayment                                             (498)         (2,838)         (5,853)
(Increase)/decrease in working capital                                     (980)         (3,169)           1,630
Exchange difference on transactions eliminated on consolidation             (48)           (375)           (331)
Net cash (outflow)/inflow from operations                                (1,435)         (3,707)             362
Net interest received                                                         76             148             166
Dividends paid                                                           (2,243)         (2,302)         (3,143)
Taxation (paid)/repaid                                                     (211)           (381)             202
Net purchase of tangible fixed assets                                      (352)           (744)         (1,027)
Acquisitions                                                                   -           (597)           (597)
Net cash outflow before use of liquid resources and financing            (4,165)         (7,583)         (4,037)

Management of liquid resources                                               213             (8)          14,081

Financing
Repayment and cancellation of preference shares                                -         (2,738)         (2,738)
Issue of ordinary shares                                                       9               -              15
Net repayment of external borrowing                                        (342)           (258)         (6,677)
Net cash outflow from financing                                            (333)         (2,996)         (9,400)

(Decrease)/increase in cash in the period                                (4,285)        (10,587)             644



Reconciliation of movement in cash flow to movement in net funds


                                                                      26 weeks to     26 weeks to     52 weeks to
                                                                        28.09.02        29.09.01        30.03.02
                                                                          £000            £000            £000

(Decrease)/increase in cash in the period                                (4,285)        (10,587)             644
Net repayment of external borrowing                                          342             258           6,677
Cash (inflow)/outflow from management of liquid resources                  (213)               8        (14,081)
Change in net funds resulting from cash flows                            (4,156)        (10,321)         (6,760)
New finance leases entered into                                                -               -             (2)
Exchange movement on opening net funds                                       578             440             385
Movement in net funds in the period                                      (3,578)         (9,881)         (6,377)
Net funds at the beginning of the period                                  11,518          17,895          17,895
Net funds at the end of the period                                         7,940           8,014          11,518








Notes to the financial information



The financial information set out in this interim report does not constitute
statutory accounts. Statutory accounts for the period ended 30 March 2002 have
been delivered to the Registrar of Companies. KPMG Audit Plc, The 600 Group
PLC's auditors, reported on those accounts under section 235 of the Companies
Act 1985. Their report was unqualified and did not contain a statement under
section 237(2) or (3) of that Act.



Copies of the interim report will be sent to all shareholders and will be
available to members of the public from the company's registered office at 600
House, Landmark Court, Revie Road, Leeds, LS11 8JT.



The 600 Group PLC is registered in England and Wales No. 196730.



Financial calendar



The interim ordinary dividend is payable on 10 January 2003 to shareholders on
the register at 13 December 2002.



Share price information



Information concerning the day-to-day movement of The 600 Group PLC share price
can be found by dialling 0906 003 4031 for the Financial Times share price
service.



The 600 Group PLC
600 House
Landmark Court
Revie Road
Leeds
LS11 8JT


Telephone: [phone]
Facsimile: 44 (0) 113 276 5600
www.600group.com



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