Profits rise at 600 Group as pension deal cuts risks

19th Nov 2018 09:12

(Sharecast News) - Machine tools manufacturer 600 Group reported on Monday that its interim profit before tax enjoyed a healthy increase as revenues crept upward and its order book expanded.For the six-month period ended 29 September the company's profit before tax was $1.5m, up 36% from the same period last year, while revenue rose by 2% to reach $32.8m.The half-year period saw the AIM-listed company undertake a pensions transaction which has freed it from the risks associated with $270m of scheme liabilities.This de-risked the group's balance sheet and secured the UK scheme for its 2,000 pensioners and 800 deferred members through a buy-in insurance policy with Pension Insurance Corporation.Paul Dupee, executive chairman of 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."The group order book size was up by 5% while cash and cash equivalents stood at $0.8m at 29 September, up from $0.7m at the same point last year."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 0.25p per share, reflecting the board's confidence in the group's prospects and the significant opportunity ahead," said Dupee.600 Group's shares were unchanged at 17.50p at 0922 GMT.