600 Group shares soar on Elland firm’s strong trading

Shares of Elland-based industrial engineering company The 600 Group plc rose about 15% on Tuesday as it published a trading update “in respect of current trading following the period ended 31 March 2021.”

The company said trading in the first quarter of the current financial year has been strong, with orderbooks seeing a marked improvement since March 31, 2021, and increased levels of activity across the group.

“In particular, the pipeline in the group’s higher margin, growth market Industrial Laser Division is very encouraging — with CMS (Control Micro Systems) taking a number of large new orders in the current year, including a $4.3m order earlier this month — the largest in its history,” said the firm.

“As at 15 July 2021 the group’s order book stood at $22.5m (31 March 2021: $14.1m).

“In addition to being a material increase over the group’s order book as at 31 March 2021, it is pleasing to note that $12.9m (57%) of the current order book relates to the group’s higher margin Industrial Laser Division.

“The group’s management teams continue to respond exceptionally well in difficult conditions and, having successfully restructured the groups’ loan notes to provide financial flexibility, the group is now positioned as a leaner and more efficient organisation which can take advantage of the operational gearing in our activities as volumes continue to increase.

“Whilst there still remains some uncertainty created by the COVID-19 pandemic, the board continues to believe in the long-term fundamentals of the group, in brand promotion, investment in new, higher end product capabilities and diversification into new markets and selective acquisitions.

“The board is excited about the possibilities that lie ahead.”

For the year ended March 31, 2021, The 600 Group anticipates revenue of $53.5 million, down by just over 20% due to the impact of Covid-19 on trading.

The firm now expects to report its audited FY21 results by September 30, 2021. 

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