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The 600 Group swings to full-year loss amid pandemic disruption

Published: 19:27 20 Nov 2020 AEDT

600 Group - The 600 Group falls into loss amid pandemic disruption

The 600 Group PLC (LON:SIXH) has swung to a full year loss due to what it said was a “difficult trading environment”, reflecting the disruption caused by the coronavirus pandemic.

In its results for the year ended March 28, 2020, the industrial engineering group reported an adjusted pre-tax loss of US$630,000, down from a US$4.3mln profit in the previous year, despite a 3.1% increase in revenues from continuing operations to US$67.2mln.

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

The company also said that due to the current uncertainty it will not be recommending a dividend for the remainder of the year.

Looking at the current financial year, the firm said that despite activity continuing to be reduced, orders have returned to “acceptable levels” compared to the previous year and that it has opportunities to “grow and enhance customer offering through investment in new, higher-end product capabilities and diversification into new markets”.

"The group made significant strides forward in the first half of the year, eliminating the group's UK final salary pension scheme, significantly de-risking the group's balance sheet, opening of the new European Technology Centre and acquiring Control Micro Systems, a highly complementary business to the group's existing laser division, which brings ever more sophisticated, value-added and custom solutions in the use of industrial lasers”, executive chairman Paul Dupee said in the results statement.

"Despite the short-term end-market weaknesses and macroeconomic uncertainty, 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. We have taken decisive action to ensure that as market conditions improve, we can react quickly", he added.

Shares in The 600 Group dropped 6.1% to 7.8p in early deals on Friday.

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