30th May 2019 12:46
LONDON (Alliance News) - Industrial engineering firm 600 Group PLC said Thursday trading had continued to be "solid", whilst it also completed the buyout of its pension scheme resulting in a GBP4.1 million return of surplus funds to the company.
For the year ended March, 600 explained that trading had been "solid" in the second half of the year "despite the continuance of certain macro-economic and political uncertainties across our end markets."
The firm explained that enquiry and quotation activity had remained "good" with it making "progress" in its order book.
As a consequence, 600 expects to deliver full year results in line with its expectations.
600 also confirmed it had completed the buyout of its UK defined benefits pension scheme which was first announced last year.
In July 2018, the trustees of the scheme at 600 had agreed a buyout of the GBP201 million of liabilities held by the scheme by specialist insurer Pension Insurance Corp PLC. This had been in order to "better secure benefits" for the 2,000 pensioners and 800 deferred members of the scheme.
The buyout had resulted in GBP4.1 million in net surplus funds being returned to the firm. These funds will be used to "fund working capital, invest in product development and provide flexibility to supplement organic growth and value-enhancing bolt-on acquisition opportunities."
"The completion of the pension buyout significantly de-risks the group's balance sheet, providing greatly improved financial flexibility as we continue our strategy for growth and build a global industrials business", 600 Executive Chair Paul Dupee said.
Shares in 600 were 8.8% higher at 15.40 pence on Thursday.
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