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The 600 Group sees first half profits slips amid “uncertain and challenging market conditions”

Published: 09:22 06 Dec 2016 GMT

DrillBits
The 600 Group has posted a drop in first half profits amid “uncertain and challenging market conditions”

Precision engineering firm The 600 Group has posted a drop in first half profits with both its main divisions operating in “uncertain and challenging market conditions.”

The firm, which manufactures and distributes machine tools, precision engineered components and industrial laser systems, saw its pretax profits fall to £1.4mln in the six months to October 1, down from £1.6mln a year earlier.

However, 600’s executive chairman Paul Dupee said: “Although both of our Divisions have been operating in uncertain and challenging market conditions they have still been able to deliver acceptable financial results for the six month period.”

He added: "The overall Group order book continues to improve and has risen from 20% above the prior year's level at the end of September 2016 to currently 30% above prior year and new quotation activity remains high.”

Dupee continued: "The anticipated infrastructure spending programmes outlined in both the UK and the USA should improve the market for capital goods, and the products we supply in particular, and the medium term market outlook therefore appears to be brighter.”

David Buxton, analyst at ‘house’ broker FinnCap, said: “The group’s half-year results are showing the first signs of an operating turnaround starting to bear fruit, particularly in Laser Marking.

“The increase in the level of enquiries and order book improvement bodes well for the second half, although order visibility remains limited. Nevertheless, enquiry levels are building momentum.

“As such, management have stated increased confidence in achieving full-year forecasts. The shares have substantial upside from the current levels.”

But In reaction to the profits fall, 600 Group shares shed nearly 4 per cent this morning, down 0.375p to 9.25p.

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