2nd Dec 2019 10:43
(Alliance News) - Engineering company 600 Group PLC on Monday said revenue growth and improved margins led to a 77% jump in first half pretax profit despite a difficult trading period dominated by Brexit issues, trade tariff wars and a global slowdown.
600 Group shares were up 2.2% at 18.30 pence each on Monday morning.
For the six months to September 28, the company recorded pretax profit of USD1.5 million, up from USD846,000 in the year ago period. Revenue increased 13% year-on-year to USD35.7 million from USD31.6 million.
The company said both its divisions saw an improvement in operating margins during the first half.
The Machine Tools division saw margins improve to 7.3% from 6.2%, while Industrial Laser unit's margins jumped to 14.0% from 11.6%.
Paul Dupee, executive chairman of 600 Group, said: "This period has seen further progress in our strategy to build a global industrial business. The de-risking of the group, both operationally and financially, has created a platform from which we are now beginning to leverage the strength of the group's brands and grow the business into increasingly diversified niche markets worldwide both organically and by acquisition."
"The group has made headway despite certain macro-economic and political uncertainties across our end markets and although these may still create some short term disruption, the board believes in the long term fundamentals of our businesses and the strategy they are now enacting and is optimistic for the long- term future," Dupee added.
600 Group declared an unchanged interim dividend of 0.25 pence per share.
By Tapan Panchal; [email protected]
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