20th Nov 2013 11:08
LONDON (Alliance News) - Machine tools and laser marking company 600 Group PLC Wednesday said it swung to a half-year pretax profit as a result of increased revenues, improved margins and lower interest expenses.
600 Group said it is still in discussions over a possible cash offer from Qingdao D&D Investment Group Co Ltd, with the deadline for an offer still set at December 4. Qingdao made an original approach regarding a possible offer for 600 Group in September.
600 Group said it made a GBP943,000 pretax profit for the 26 weeks to September 28, compared with a GBP659,000 pretax loss for the corresponding period the year prior, after revenue increased by 5.2% to GBP20.9 million.
Net operating expenses dropped to GBP6.2 million from GBP6.6 million, as the company reported an operating profit of GBP767,000, compared to last half-year's GBP404,000 operating loss.
The company also paid substantially less money in interest, which cost GBP184,000 versus last half-year's GBP523,000, meaning that 600 Group made a net financial profit. Financial income rose to GBP423,000 from GBP320,000, mostly due to an increase in interest on its pension surplus.
"It appears that business confidence is slowly returning in our major markets, and there is a renewed interest in manufacturing activity and investment in developed economies. With globally recognised brands and continued focus on developing our product range, we continue to look forward with optimism," Chairman Paul Dupee said in a statement.
600 Group did not declare an interim dividend.
600 Group shares were Wednesday quoted at 18.12 pence, up 2.1%.
By Samuel Agini; [email protected]; @samuelagini
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