Interim Results

600 Group PLC
16 November 2007



                                                                16 November 2007


                               THE 600 GROUP PLC

             INTERIM RESULTS FOR THE 26 WEEKS TO 29 SEPTEMBER 2007


Interim Management Report


Market Conditions

During the first half of the current financial year our European markets,
including the UK, experienced significant growth. North America has shown some
softness in recent months reflecting current difficulties in financial markets
but the weakness of the US dollar should ultimately increase domestic
manufacturing activity as outsourcing decisions are being reversed. Our other
major market, South Africa, continues to reflect the generally positive trends
that have been seen over the last three years.


Results

Overall sales for the half year increased by 10% to £41m (2006: £37m). After
adjustment for the disposal of Erickson Machine Tools Inc. in April 2007
underlying sales increased by 14%. Underlying order intake increased by 15%
compared to last year, with substantial improvements in our UK, North American
and European businesses. Our outstanding order book is 18% higher than at this
time last year and includes the major contract, which was previously announced,
for three Mitsui Seiki machines that are to be supplied to a major UK aerospace
company in the next financial year. Subsequent to the half-year end we have
signed further contracts for in excess of £1m of Toyoda-Mitsui machines
benefiting from the total support package that we can now provide following the
acquisition of the Toyoda-Mitsui UK parts and service business earlier this
year.

Gross profit margins have improved to 31% (2006: 29%) and remain in line with
our expectations as we maintain strict cost controls. Net operating expenses
have increased by £1m as compared to the first half of 2006 as we continue to
invest in product design and development as well as in sales and marketing and
in our distribution network. Included in net operating expenses are one-off
costs of £0.3m associated with the highly successful EMO exhibition in Germany
where we launched a new range of machine tools for the European markets.

Operating profit before net financial income and tax was £0.6m (2006: loss of
£0.5m). Net financial income increased to £1.1m (2006: £0.9m) mainly due to the
non-cash impact of the UK pension scheme. This has resulted in profit before tax
increasing to £1.6m (2006: £0.3m). Costs of £0.2m relating to the closure of the
French operation were incurred in the period. The basic and diluted earnings per
share for continuing operations was 1.9p (2006: 0.3p) and for discontinued
operations is (0.3)p (2006: (0.1)p).

As anticipated, due to seasonal factors, new product introduction and increased
activity levels, net cash balances at 29 September 2007 were £2.4m (30 September
2006: £3.5m).


Strategy Update

Our strategy remains to develop a customer-focused business concentrating on the
North American, UK and European markets and based on our two strategic growth
platforms of machine tools and laser marking, supported by our technologies
business. The implementation of the strategy, which evolved from the strategic
review undertaken in 2006, is progressing positively and is ahead of plan.

The sourcing of product from China remains a vital part of our strategic plans.
The supply of machines from our partner, DMTG, continues to improve and their
newly branded Dalian machines were extremely well received at the EMO exhibition
in Germany. Our 600 China operation has been expanded considerably over the last
year to provide technical and logistical support to DMTG. We are confident that
the Dalian brand, which is being sold throughout Europe in partnership with us,
will enable us to accelerate our rate of market penetration during the next
financial year. In addition, preliminary discussions continue with other
potential strategic partners that have the product ranges and capabilities to
leverage both our machine tool and laser market brands and distribution network
further.

We are restructuring our Canadian operation to improve the efficiency of our
North American operations through the integration of our sales and service
support activities for conventional machine tools in the region. As a result, we
will be reducing the number of employees in Canada by 18 and selling the land
and buildings currently used by the operation. A new sales office will be opened
in Canada fully focused on supporting both our 600 solutions business and the
expanding third party distributor base.

We have sold a small piece of land in Letchworth for £0.6m that was not required
for our future growth plans. We intend, subject to any necessary approvals, to
realise further value from the Letchworth site through the sale and leaseback of
the remaining land and buildings.


Dividend

We have previously stated that future dividend payments will be directly related
to our results. Whilst further positive progress has been made in the half-year,
the Board does not consider it is appropriate to pay a dividend at the present
time.


Employee Benefits

As noted in our 2007 Annual Report the 600 Group Pension Scheme is significant
in terms of size and impact. The Group accounts for its pensions in accordance
with IAS 19 and their value is based on actuarial assumptions. At 29 September
2007 the IAS 19 asset recognised in respect of employee benefits was £16.2m
(2006: £7.1m). A full actuarial valuation is currently being finalised and this
will demonstrate the current funding position of the scheme.


People

In April 2007 the Board appointed Martin Temple CBE as a non-executive director
and he succeeded Michael Wright as non-executive Chairman of the Company at the
end of July 2007. Tony Sweeten also retired as a director at the same time, but
continues to be available to assist the Board in a consultancy capacity until 31
December 2008.

Stephen Rutherford joined the Board as a non-executive director on 1 October
2007. Stephen brings extensive international operational experience to the
Board, particularly in the Far East.


Principal Risks and Uncertainties

The principal risks and uncertainties remain as outlined in our 2007 Annual
Report.

Related Party Transactions

No transactions took place in the period that would materially affect the
financial position of the Group. Related party transactions for the year ended
31 March 2007 are as described in our Annual Report.


Indicative Approach from Precision Technologies Group Limited

Shareholders will recall that the Board wrote to them on 8 October 2007
confirming that the Board had rejected an indicative approach that had been made
by Precision Technologies Group Limited ("PTG") in relation to an offer for the
issued share capital of the Company.

PTG subsequently announced that it was considering its position following that
rejection of its approach.

The Board considers that the lack of clarity with regards to PTG's position is
unhelpful for 600 Group's shareholders and is therefore pleased to confirm that
the Takeover Panel has imposed a deadline of 5pm on 29 November 2007 by when PTG
must either announce a firm intention to make an offer for the Company or must
announce that it does not intend to make an offer for the Company.


Outlook

The continued investment in and introduction of new products across all the
Group's businesses combined with improved sales, marketing and distribution
networks has been reflected in the results achieved over the last 18 months.
Notwithstanding the current financial climate the Board is confident that the
Group will make further positive progress in the second half of the year.


Enquiries:

The 600 Group PLC                                Telephone: [phone]
Andrew Dick, Group Chief Executive
Martyn Wakeman, Group Finance Director

Altium Capital Limited                           Telephone: [phone]
Ben Thorne
Tim Richardson

Hudson Sandler                                   Telephone: [phone]
Nick Lyon
Wendy Baker


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 30 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


Consolidated income statement (unaudited)

                                       26 weeks      26 weeks           52 weeks 
                                    to 29.09.07   to 30.09.06        to 31.03.07      
                                           £000         £'000               £000
Revenue                                  40,507        36,872             78,666

Cost of sales                          (27,921)      (26,328)           (55,754)

Gross profit                             12,586        10,544             22,912
Net operating expenses                 (12,031)      (11,075)           (22,297)

Operating profit/(loss)                     555         (531)                615
before financing costs

Financial income                          5,589         5,078             10,373
Financial expense                       (4,518)       (4,202)            (8,561)

Profit before tax                         1,626           345              2,427

Income tax charge (note 5)                (480)          (97)              (696)
Profit for the period from                1,146           248              1,731
continuing operations

Post tax loss of                          (181)          (90)              (290)
discontinued business


Total profit for the                        965           158              1,441
financial period


Attributable to:

Equity holders of the                       930            89              1,382
parent
Minority interest                            35            69                 59
Profit for the period                       965           158              1,441

Earnings per share - basic
and diluted (note 6)
- continuing operations                    1.9p          0.3p               2.9p
- total                                    1.6p          0.2p               2.4p


Consolidated statement of recognised income and expense (unaudited)


                              26 weeks             26 weeks           52 weeks 
                           to 29.09.07          to 30.09.06        to 31.03.07
                                  £000                 £000               £000

Foreign exchange                   377              (1,039)            (1,241)
translation differences
Net actuarial                    (620)              (1,280)              5,375
(losses)/gains on
employee benefit schemes
Deferred tax on                    266                  384            (1,691)
above items

Net income/(expense)                23              (1,935)              2,443
recognised directly 
in equity

Profit for the period              965                  158              1,441

Total recognised                   988              (1,777)              3,884
income/(expense)
for the period

Attributable to:
Equity holders of                  949              (1,756)              3,930
the parent
Minority interest                   39                 (21)               (46)
Total recognised                   988              (1,777)              3,884
income/(expense)
for the period



Summarised consolidated balance sheet (unaudited)

                                             At 29.09.07 At 31.03.07 At 30.09.06
                                                    £000        £000        £000
Non-current assets
Property, plant and equipment                     12,784      13,034      13,477
Intangible assets                                  2,704       2,433       2,174
Investments                                            -           -          84
Employee benefits                                 16,180      15,570       7,060
Deferred tax assets                                  316         315         303
                                                  31,984      31,352      23,098
Current assets
Inventory                                         25,557      22,307      21,573
Trade and other receivables                       18,873      19,479      17,054
Cash and cash equivalents                          5,989       6,944       5,557
                                                  50,419      48,730      44,184

Total assets                                      82,403      80,082      67,282

Non-current liabilities
Employee benefits                                (2,844)     (2,915)     (2,146)
Deferred tax liability                           (5,705)     (5,498)     (2,715)
                                                 (8,549)     (8,413)     (4,861)
Current liabilities
Trade and other payables                        (18,199)    (18,227)    (15,226)
Income tax payable                                  (93)        (80)        (83)
Provisions                                         (490)       (417)       (465)
Loans and other borrowings                       (3,606)     (2,547)     (2,057)
                                                (22,388)    (21,271)    (17,831)

Total liabilities                               (30,937)    (29,684)    (22,692)

Net assets                                        51,466      50,398      44,590

Shareholders' equity
Called-up share capital                           14,307      14,287      14,212
Share premium account                             13,765      13,747      13,680
Revaluation reserve                                3,166       3,148       3,397
Capital redemption reserve                         2,500       2,500       2,500
Translation reserve                                  141       (172)       (106)
Retained earnings                                 17,201      16,541      10,535
Total equity attributable to equity holders of    51,080      50,051      44,218
the parent

Minority interest                                    386         347         372

Total equity                                      51,466      50,398      44,590



Summarised consolidated cash flow statement (unaudited)

                                                26 weeks    26 weeks    52 weeks
                                             to 29.09.07 to 30.09.06 to 31.03.07
                                                    £000        £000        £000
Cash flows from operating activities

Profit for the period                                965         158       1,441

Adjustments for:
Amortisation of development expenditure               87          54         120
Depreciation                                         532         622       1,218
Impairment of goodwill                                 -           -          24
Net financial income                             (1,071)       (877)     (1,812)
Profit on disposal of plant and equipment          (391)           -          40
Equity share option expense                           43           9          14
Income tax expense                                   480          97         696
Operating profit before changes in working           645          63       1,741
capital and provisions
Decrease/(increase) in trade and other               781     (4,184)     (4,602)
receivables
Increase in inventories                          (3,188)     (1,457)     (2,433)
(Decrease)/increase in trade and other              (91)       3,665       4,650
payables
Decrease in employee benefits                         41          20          30
Cash generated from the operations               (1,812)     (1,893)       (614)
Interest paid                                      (165)        (56)       (278)
Income tax received/(paid)                            11        (56)         (8)
Net cash from operating activities               (1,966)     (2,005)       (900)

Cash flows from investing activities
Interest received                                     41           0         157
Proceeds from sale of plant and equipment            704           0         236
Purchase of plant and equipment                    (486)       (192)       (680)
Development expenditure capitalised                (371)       (182)       (548)
Net cash from investing activities                 (112)       (374)       (835)

Cash flows from financing activities
Proceeds from the issue of ordinary shares            38           0         142
Net receipt of external borrowing                    871       1,191         151
Reduction in current asset investments                 -           -          64
Net cash from financing activities                   909       1,191         357

Net decrease in cash and cash equivalents        (1,169)     (1,188)     (1,378)
Cash and cash equivalents at beginning of          5,331       6,718       6,718
period
Effect of exchange rate fluctuations on cash          35          27         (9)
held

Cash and cash equivalents at end of the            4,197       5,557       5,331
period


Notes to the financial information


1. Basis of preparation

The 600 Group PLC (the "Company") is a public limited company incorporated and
domiciled in England and Wales. The Company's ordinary shares are traded on the
London Stock Exchange. The Consolidated Interim Financial Statements of the
Company for the 26-week period ended 29 September 2007 comprise the Company and
its subsidiaries (together referred to as the "Group").

This Half-yearly financial report is the condensed consolidated financial
information of the Group for the 26 weeks ended 29 September 2007. It has been
prepared in accordance with the Disclosure and Transparency Rules of the UK
Financial Services Authority and the requirements of IAS 34 Interim Financial
Reporting as adopted by the European Union.

The Half-yearly financial report 2007/08 was approved by the Board of Directors
on 15 November 2007.

The Half-yearly financial report 2007/08 does not constitute financial
statements as defined in section 240 of the Companies Act 1985 and does not
include all of the information and disclosures required for full annual
financial statements. It should be read in conjunction with the Annual report
and financial statements for the 52-week period ended 31 March 2007, copies of
which can be obtained from the Company's registered office or website.

The financial information contained in this half-yearly report in respect of the
52 weeks ended 31 March 2007 has been extracted from the Annual report and
financial statements 2007 which have been filed with the Registrar of Companies.
The auditors report on these financial statements was unqualified and did not
contain a statement under Section 237(2) or (3) of the Companies Act 1985.

The half-yearly results for the current and comparative period are neither
audited nor reviewed by the Company's auditors.


2. New IFRS and amendments to IAS

The financial statements for the year ended 29 March 2008 are impacted by the
following new standards and interpretations.

IFRS 7 Financial Instruments : Disclosure and IAS 1 Presentation of Financial
Statements - Capital Disclosures will increase the amount of disclosure in the
full financial statements. The accounting, income and net assets will remain
unchanged.


3. Significant accounting policies

The condensed consolidated financial statements in this Half-yearly financial
report for the 26 weeks ended 29 September 2007 have been prepared using
accounting policies and methods of computation consistent with those set out in
The 600 Group PLC's Annual report and financial statements for the 52-week
period ended 31 March 2007.

In preparing the condensed financial statements, management are required to make
accounting assumptions and estimates. The assumptions and estimation methods
were consistent with those applied to the Annual report and financial statements
for the 52-week period ended 31 March 2007.


4. Segment analysis


Geographical Segments

                                       26 weeks         26 weeks        52 weeks 
                                    to 29.09.07      to 30.09.06     to 31.03.07       
                                           £000            £'000            £000
Revenue based on
geographical origin

United Kingdom                           23,491           23,489          50,113
Other European Countries                  4,303            2,798           5,969
North America                             6,899            5,552          11,846
Africa and Australasia                   10,041            9,712          20,721
Inter-segment revenue                   (4,227)          (4,679)         (9,983)
Revenue from continuing                  40,507           36,872          78,666
operations
Revenue from discontinued                     0              286             259
operations
Revenue generated in the                 40,507           37,158          78,925
period


                                       26 weeks         26 weeks        52 weeks 
                                    to 29.09.07      to 30.09.06     to 31.03.07       
                                           £000            £'000            £000
Revenue based on
geographical destination

United Kingdom                           10,171           10,103          21,460
Other European Countries                  9,453            7,158          15,204
North America                            12,129           11,843          25,154
Africa and Australasia                    7,343            8,054          17,107
Far East                                  1,411                0               0
Revenue generated in the                 40,507           37,158          78,925
period


                                       26 weeks         26 weeks        52 weeks 
                                    to 29.09.07      to 30.09.06     to 31.03.07       
                                           £000            £'000            £000
Operating profit

United Kingdom                              360            (585)             678
Other European Countries                  (121)              219           (253)
North America                               161               48            (56)
Africa and Australasia                      155            (213)             246
Operating profit from                       555            (531)             615
continuing operations                                              
Operating loss from                       (181)             (90)           (290)
discontinued operations
Operating profit in the                     374            (621)             325
period


5. Taxation

The charge for corporation tax comprises UK taxation £nil (2006: £nil), overseas
taxation charge of £6,000 (2006: charge £1,000) and deferred taxation charge of
£474,000 (2006: charge £96,000).

On 21 March 2007, the Chancellor announced that with effect from 1 April 2008
the standard rate of UK corporation tax will reduce from 30% to 28%. This charge
has been adopted for deferred tax in the period and has led to an additional
credit of £36,000 being recognised in the income statement and £80,000 being
recognised in the SORIE in the 26-week period ended 29 September 2007.


6. Earnings per share

The basic earnings per share of 1.6p (2006: 0.2p) is based on the profit for the
period of £930,000 (2006: profit £89,000) and the weighted average number of
shares outstanding of 57,183,559 (2006: 56,847,149). In determining the diluted
earnings per share of 1.6p (2006: 0.2p), the earnings for the period
attributable to shareholders was divided by the weighted average number of
shares in the period plus 962,233 of potentially dilutive shares on option.


7. Interim report

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.


8. Responsibility Statement


We confirm that to the best of our knowledge:

   •the condensed set of financial statements has been prepared in accordance
    with IAS 34 Interim Financial Reporting as adopted by the EU;
   •the interim management report includes a fair review of the information
    required by:
     
   a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication 
      of important events that have occurred during the first six months of the 
      financial year and their impact on the condensed set of financial
      statements; and a description of the principal risks and uncertainties for 
      the remaining six months of the year; and

   b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party 
      transactions that have taken place in the first six months of the current
      financial year and that have materially affected the financial position or
      performance of the entity during that period; and any changes in the 
      related party transactions described in the last annual report that could 
      do so.


M J Temple, Chairman

A J Dick, Group Chief Executive

J A Kitchen, Non-Executive Director

S J Rutherford, Non-Executive Director

M G D Wakeman, Group Finance Director



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