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600 Group takes government loan, delays results as business orders down 15% on last year

The group's UK machine tool business has taken out a three-year loan under the Coronavirus Large Business Interruption Loan Scheme (CLBILS)

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600 Group PLC (LON:SIXH), the industrial engineer, said it has secured a £1.2mln new term loan under the UK government's business interruption scheme as the group’s operations continue to see reduced activity as a result of the coronavirus pandemic. 

The AIM-listed company, which was one of the first UK companies to report effects of the pandemic back in February, said it has been given permission by the stock listing authorities to delay the publication of its results for the year to end-March 2020 from the September 30 deadline for three months at most, due to the effects of the virus. 

Government restrictions on working and movement continue to impact the company in all regions where it operates, though it said the level of order backlog has returned to “acceptable levels, given the circumstances”, now down 15% on last year. 

All sites are operational, though, with operating procedures modified, PPE (personal protection equipment) usage increased and building changes made, while costs are being limited through the use of the government support schemes in the UK and US, with some staff still on furlough and salary reduction schemes in place for many employees.

The UK machine tool business has taken out a three-year loan under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) through HSBC, to “help provide headroom in funding the business”.

In a statement, 600 Group executive chairman Paul Dupee said: “These are unprecedented times. We have taken decisive action to ensure our workforce and technical competencies remain intact through this period of uncertainty so that the group can react quickly as markets improve.”

Quick facts: 600 Group

Price: 8.75 GBX

AIM:SIXH
Market: AIM
Market Cap: £10.28 m
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