2nd Dec 2015 11:28
LONDON (Alliance News) - 600 Group PLC on Wednesday said there is a possibility that results for the current financial year could come in lower than what it previously expected, due to "slower" trading in Europe and savings coming through less quickly in its laser business following the acquisition of US-based TYKMA in February.
600 Group said market conditions generally remain patchy, as the industrial products company reported that first-half pretax profit fell by about half, as higher revenue was more than offset by bigger operating expenses and a lower pensions credit thanks to actions taken to cut liabilities.
There were costs of about GBP490,000 due to integrating laser marking business TYKMA with its existing Electrox laser business, as well as the exit of former chief executive Nigel Rogers in April.
"Enquiry levels have in recent months picked up from the low of the summer months but customer confidence to commit to purchase remains a concern. Given the slower than expected trading in Europe and the efficiencies in the Laser Marking Division taking slightly longer than planned it is possible that the outcome for the full financial year may be less than the board's previous expectations," Executive Chairman Paul Dupee said in a statement.
Shares in 600 Group were down 6.0% at 13.16 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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