Half-year profits rise at 600 Group

19 November 2018

Half-year profits rise at 600 Group

Pre-tax tax profit has grown by more than a third in the half-year results for engineering business 600 Group.

The Heckmondwike-based group reported an underlying pre-tax profit of $1.46m (£1.14m), up 36 per cent from $1.07m (£832,000) in the same period of 2017.

Revenue also increased to $32.8m (£25.5m) from $32.2m (£25m) the previous year.

During the period, 600 Group undertook a pensions transaction which has freed it from the risks associated with $270m of scheme liabilities. It said this will de-risk the group's balance sheet and secure the UK scheme for its some 2,000 pensioners and 800 deferred members through a buy-in insurance policy with Pension Insurance Corporation Plc.

Paul Dupee, executive chairman of the 600 Group, said: "We are pursuing a strategy to build a global industrials business. In the period we made further progress in de-risking the Group, both operationally and financially, as we create a more flexible platform from which to leverage the strength of the Group's brands and grow the business into increasingly diversified niche markets worldwide."

"As previously announced, the buy-out of the group's $270m pension liabilities will significantly de-risk the group's balance sheet, with the expected $4m - $5m post-tax cash surplus providing improved financial flexibility.

"Despite certain macro-economic and political uncertainties across our end markets, enquiry and quotation activity remains good with revenue visibility underpinned by an improved orderbook. I am also pleased to announce an interim dividend of 25p per share, reflecting the board's confidence in the Group's prospects and the significant opportunity ahead."