Final Results

600 Group PLC
19 June 2001


19 JUNE 2001

                           600 GROUP PRESS RELEASE


             PRELIMINARY RESULTS FOR THE PERIOD TO 31 MARCH 2001



CHAIRMAN'S STATEMENT



The Group's extensive international market coverage and broad product range
enabled it to continue to deliver a profitable performance. In addition, the
Group increased its net funds during a year of very mixed trading conditions
in all major markets.



Results

As anticipated in my interim statement, all our major international markets
experienced varying degrees of change and uncertainty during the year.
Continental Europe saw a steady increase in activity, the UK market showed
growth in some specific sectors but the North American economy suffered from a
reduced level of activity in the last quarter.



The laser and UK factored businesses had a very good year and 600 Lathes
started to benefit from its new product ranges towards the end of the period.
Total orders were up by 6% on last year, with the UK based businesses showing
a 14% improvement. The total order book grew by 22% during the year, with the
major increases being at our lathes, laser and continental European
businesses.



The resulting turnover from continuing operations showed a small overall
increase from £97m to £98m, with growth in the UK and South African businesses
being largely offset by reductions in our other overseas operations.



These trading conditions, together with ongoing cost and asset reduction
programmes, generated a profit before tax and goodwill transfer of £6.9m
(2000: £6.2m). Earnings per share were 9.5p (2000: 9.7p) and the Group's net
funds increased to £17.9m (2000: £15.5m).





Dividend

The board recommends a final dividend of 4.0p (2000: 4.0p). This maintains the
full year dividend of 5.5p (2000: 5.5p).



Strategy

The Group has maintained its focus on metal cutting and laser machine tool
businesses. Despite the current short-term market uncertainties, it has
continued its high level of investment in both new products and the
development of international markets.



People

On behalf of the board, I should like to repeat our appreciation of the
continued efforts of all our employees, which have resulted in the further
development of the Group in a generally unhelpful trading environment.



Outlook

Current short-term global economic uncertainties are likely to have a
dampening impact on levels of investment spending into the coming year,
although expenditure in the less cyclical sectors will continue to be more
robust. In these circumstances, we believe that there will be opportunities to
increase our market share and that our broad international presence, business
development programmes and strong financial position will enable us fully to
exploit them; our objective will continue to be the enhancement of shareholder
value.





Michael Wright

Chairman

19 June 2001





Enquiries:   Tony Sweeten, Group Chief Executive

                      John Fussey, Group Finance Director



Telephone:  [phone] on Tuesday 19 June 2001

                     thereafter  0113 277 6100





GROUP CHIEF EXECUTIVE'S REVIEW OF OPERATIONS



We have achieved improvements in both underlying profitability and net funds,
despite experiencing some short-term supply chain problems as we built up
volume production of our new product ranges. As a result of our extensive
product and market development programmes, we have continued to gain market
share and to improve our standing in the international league table of machine
tool manufacturers.



Market trends

This was a year of very mixed and varying trends in our major international
markets. Although most of our major markets remained generally nervous, there
were clear signs of recovery in the UK, but the US market eased towards the
end of the period. The main continental European markets showed consistent
growth, but some uncertainty was starting to affect the German market as the
period ended.



Strategic development

We have pursued a clear and consistent strategy over many years, the
objectives of which are to:

- focus on machine tool activities.  Through our programme of disposals and
rationalisation, we have achieved our objective of becoming an internationally
recognised machine tool specialist, with strong brands and an excellent
reputation for quality and value.



- maintain our market leadership through innovation, with product
introductions, for example the Harrison Alpha T and Alpha U lathe ranges, and
increased use of the internet as both a sales and a marketing channel.



- reduce our cost and asset base throughout the Group, with major
rationalisation and cost reduction exercises in prior years beginning to bear
fruit in both Australia and South Africa and more recent action in France
creating an improved platform for the future.



This clear business focus and our emphasis on innovation and cost reduction
have been the keys to our continued progress under testing market conditions
and to the growing international recognition of our capabilities.



United Kingdom operations

600 Lathes, our operation at Heckmondwike in West Yorkshire, is the largest
volume lathe factory in Europe, manufacturing machines under the
market-leading Colchester and Harrison brands.



Product development continued with the launch of the Harrison Alpha T and
Colchester Combi K ranges of computer-assisted lathes. These and the new
Harrison Alpha U slant bed lathe all received very positive receptions in the
market place. Both orders and sales increased significantly compared with the
previous year.



The business begins the new year with a strong order book, based on its
best-ever range of products. It has also significantly strengthened its
distribution channels in Europe, successfully launched new Web sites for
sales, spares and service support and embarked on a substantial cost reduction
programme under a strengthened management team.



600 Centre, our UK marketing operation for imported machine tools, had a good
year, following its successful participation in the major MACH 2000 machine
tool exhibition and two regional UK shows. It achieved particularly strong
sales of Fanuc products and added the well-regarded Bridgeport range of
machining centres to its portfolio.



Crawford Collets had a demanding year. Order levels were maintained, with
improved exports offsetting weaker UK demand but the relative strength of the
pound imposed pressure on margins.



Gamet Bearings continued to increase its worldwide market penetration,
particularly in the Far East. Successful product development included the
introduction of a new range of bearings for the Harrison Alpha range of
lathes. Export margins remained under pressure from currency factors but the
company's competitive position has been considerably enhanced by the
acquisition of the bearings business of Gamet Precision SA in France in April
2001. Design and manufacturing have now been consolidated at Colchester,
offering a more comprehensive and efficient service. The enlarged business is
a clear world market leader in its sector and is now strongly placed to
increase its presence in the major European markets.



Pratt Burnerd International, the leading producer of chucking systems and
advanced electric turrets, enjoyed a successful year. It received a very
favourable response to the launch of its new Radio Frequency Gripmeter, which
is the most advanced product of its kind, enabling manufacturers to monitor
accurately the gripping forces of any type of chuck whilst it is rotating.
During the year, the company also redeveloped its Setrite range of chucks
leading to substantially increased orders from North America.



Electrox, our manufacturer of laser systems and laser markers, had an
excellent year, with North American turnover showing particularly good growth.
  It launched a higher performance, lower cost version of its entry-level
marker, the Scriba E Plus, and marker sales overall advanced strongly. The
supply of CO2 lasers for Profile 600's Lazerblade profile cutting machines
generated continued growth in this product category. In addition, a 3KW laser
was successfully developed to extend Lazerblade's market appeal, giving it the
capability to process thicker materials.



Profile 600 appointed a major additional US distributor during the year.
Prospects for the current year are encouraging and substantial benefits will
also be achieved following our decision to integrate the Electrox and Profile
600 businesses under the proven Electrox management team.



600 Machinery International is our trading company operating in the Middle
East, China, Africa and South America.  The business achieved strong sales of
Group manufactured products and prospects for further major contracts during
the coming period are good.



600 Finance is our strategic alliance with Close Asset Finance and specialises
in offering innovative and flexible financing packages, especially to our
smaller customers. With the difficult business conditions experienced by our
UK customers during the year, this unique service has proved to be
increasingly valuable in closing many deals.



Overseas operations

Parat, our German distribution business, had a good year, restrained only by
the limited availability of products from both 600 Lathes and Fidia, its
Italian supplier of specialist mould-making machinery. The new Harrison Alpha
T and Alpha U products have stimulated significant interest in the German
market and sales prospects for the new year are encouraging.



600 France had a poor year due to both intense competition and exchange rate
pressures. We have responded with measures that will materially reduce our
overheads and the establishment of a more cost-effective dealership network.



Clausing Industrial is our North American manufacturing and distribution
operation. Despite a difficult economic environment, the business performed
reasonably well. Demand for standard products benefited from the substantial
increase in school and vocational training business. Clausing also extended
its product portfolio through the introduction of a new range of Kalamazoo
bandsaws, ensuring that it now offers the widest selection of metal sawing
machines available anywhere in North America.



We embarked on further consolidation of our directly owned regional
distribution network in the US and established Colchester CNC in Cincinnati as
a specialist distributor of our higher technology ranges.



600 International is our Prague office with responsibility for co-ordinating
the Group's sales activity in Central and Eastern Europe. These markets showed
encouraging demand through the year, with increased sales of Colchester and
Harrison lathes in the Czech Republic and Hungary.



600 Machine Tools in Australia has benefited from restructuring and cost
reduction initiatives. It has achieved a modest improvement in order intake,
despite the impact of the falling Australian dollar on the cost of imported
machine tools.



600SA, our operation in South Africa, has also been restructured and has
benefited from some stabilisation of its market place.



Outlook

The downturn in US machine tool demand in the last quarter of the year and the
associated impact on global economies mean that trading conditions look likely
to remain uncertain for some time. However, we have entered the new year with
a strong order book and have significantly improved the profit potential of
the Group. Furthermore, our new product development programme is bringing
forward ranges of more advanced, higher margin machines with good growth
potential. Therefore, I look forward to a year of growth based on increasing
market share.



Tony Sweeten

Group Chief Executive

19 June 2001




AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT

                              Period ended 31                      Period ended
                                   March 2001                      1 April 2000
                                         £000                              £000
Turnover
- Continuing operations                97,950                            97,176
- Discontinued operations              -                                  1,507
                                       97,950                            98,683
Cost of sales                        (72,064)                          (72,881)
Gross profit                           25,886                            25,802
Net operating expenses               (19,501)                          (19,598)
Operating profit
- Continuing operations                 6,385                             6,039
- Discontinued operations                 -                                 165
Total operating profit                  6,385                             6,204
Transfer of goodwill previously         (216)                               -
written off to reserves
Profit on ordinary activities before    6,169                             6,204
interest
Net interest receivable and similar       526                                21
income

Profit on ordinary activities before    6,695                             6,225
taxation

Taxation                              (1,237)                             (674)

Profit for the financial period         5,458                             5,551
Dividends
     - Equity                         (3,083)                           (3,083)
     - Non-equity                       (132)                             (132)
                                      (3,215)                           (3,215)
Retained profit for the financial       2,243                             2,336
period transferred to reserves
Goodwill reinstated previously written    216                               -
off
Net effect on reserves                  2,459                             2,336
Earnings per share - basic                9.5p                              9.7p
Earnings per share - diluted              9.5p                              9.7p





AUDITED CONSOLIDATED BALANCE SHEET

                                        At 31 March 2001        At 1 April 2000
                                                    £000                   £000
Fixed assets
Intangible assets - goodwill                       3,282                  3,392
Tangible assets                                   17,576                 20,254
Investments                                           84                     84
                                                  20,942                 23,730
Current assets
Stocks                                            27,898                 27,154
Debtors:
     - falling due within one year                20,708                 23,216
     - falling due after one year                 24,979                 19,703
                                                  45,687                 42,919
Investments                                        2,570                  3,197
Cash at bank and in hand                          28,179                 24,897
                                                 104,334                 98,167
Current liabilities
Creditors:  amounts falling due
within one year:
     - short-term borrowings                     (6,827)                (5,505)
     - other creditors                          (21,130)               (21,054)
                                                (27,957)               (26,559)
Net current assets                                76,377                 71,608
Total assets less current liabilities             97,319                 95,338
Creditors:  amounts falling due after
more than one year:
     - loans and other borrowings                (6,027)                (7,133)
     - other creditors                             (962)                  (750)
                                                 (6,989)                (7,883)
Provisions for liabilities and                     (372)                  (403)
charges
Net assets                                        89,958                 87,052

Capital and reserves
Called up share capital                           16,512                 16,512
Share premium account                             13,510                 13,510
Revaluation reserve                                1,762                  2,385
Profit and loss account                           58,174                 54,645
Shareholders' funds (including                    89,958                 87,052
non-equity)
                                            




AUDITED CONSOLIDATED CASH FLOW STATEMENT

                                            Period ended         Period ended
                                            31 March 2001        1 April 2000
                                             £000   £000     £000         £000

Net cash inflow from operating activities          6,095                  8,911
Returns on investments and servicing of
finance
Interest received                             1,625            1,209
Interest paid                               (1,050)          (1,018)
Interest element of finance lease rental      (110)            (180)
payments
Preference dividends paid                     (132)            (132)
Returns on investments and servicing of              333                  (121)
finance
Taxation paid                                      (789)                (1,439)
Capital expenditure
Purchase of tangible fixed assets           (1,532)          (1,034)
Net receipt from sale of tangible fixed       2,443            3,741
assets
Capital expenditure                                  911                  2,707
Acquisitions and disposals - acquisitions              -                  (570)
Equity dividends paid                            (3,083)                (1,401)
Net cash inflow before use of liquid               3,467                  8,087
resources and financing
Management of liquid resources
Withdrawal/(purchase) of term deposits       7,307          (6,640)
Reduction of current assets - investments      627              389
Management of liquid resources                     7,934                (6,251)
Financing
Issue of ordinary share capital                 -                 8
New bank loans                               1,055               -
Repayment of bank loans                    (1,087)          (1,345)
Capital element of finance lease rental      (691)            (813)
payments
Net cash outflow from financing                    (723)                (2,150)
Increase/(decrease) in cash in the period         10,678                  (314)
Cash outflow from decrease in debt and               723                  2,158
lease financing
Cash (inflow)/outflow from (decrease)/           (7,934)                  6,251
increase in liquid resources
Change in net funds resulting from cash            3,467                  8,095
flows
New finance leases entered into                     (68)                   (63)
Exchange movement                                  (960)                    111
Movement in net funds in the period                2,439                  8,143

Net funds brought forward                         15,456                  7,313
Net funds carried forward                         17,895                 15,456



Liquid resources are defined as term deposits and amounts held as current
assets-investments.



NOTES


1.      The financial information set out above does not constitute the
company's statutory accounts for the period ended 31 March 2001 or the period
ended 1 April 2000 but is derived from those accounts. Statutory accounts for
2000 have been delivered to the registrar of companies, whereas those for 2001
will be delivered following the company's Annual General Meeting. The auditor
has reported on the 2000 accounts; their report was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.


2.  The annual report will be posted to all shareholders in due course and
will be available on request from the Secretary, The 600 Group PLC, 600 House,
Landmark Court, Revie Road, Leeds LS11 8JT.


3.  The final dividend of 4.0p per share, if approved by shareholders at the
Annual General Meeting, will be paid on 10 September 2001 to shareholders
on the register at 10 August 2001.