1 / 12

600 Group PLC

600 Group PLC. Annual General Meeting 14 September 2011. Highlights. Revenue up by 11% to £50.6M Underlying operating profit £1.2M (£1.1M) Net operating expenses reduced by £7.3M Net pension credit of £2.6M with the change to CPI Good order book and lower breakeven point

lyris
Télécharger la présentation

600 Group PLC

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 600 Group PLC Annual General Meeting 14 September 2011

  2. Highlights • Revenue up by 11% to £50.6M • Underlying operating profit £1.2M (£1.1M) • Net operating expenses reduced by £7.3M • Net pension credit of £2.6M with the change to CPI • Good order book and lower breakeven point • Acquisition in Poland for production of the Group’s machine tools • Successful share placement to finance Poland • Change of bank in the UK to Santander • Move to AIM completed

  3. Operating Profit Trend

  4. Structure of the Group 39% of Sales 20% of Sales 14% of Sales 27% of Sales

  5. Machine Tools (39% sales) • Metal turning machines • Conventional (non CNC) • Workshop CNC • Production CNC • Brands: Colchester and Clausing • Oxford Economics positive market forecast • Double digit growth next 3 years • Pre recession levels by 2012 • Increasing vertical integration following acquisition in Poland

  6. Machine Tools New Business Model • Manufacturing Footprint • EMEA sales organisation relocated • Shorter lead times • Increased margins and earnings • Higher quality • Better market rating as a bona fide engineering operation • Sales Organisation EMEA Leeds Poland Production UK Components North America Michigan Australia Sydney/Brisbane UK Machines South Africa Johannesburg

  7. Poland Benefits • Lower material costs • Skilled workers capable of being trained on CNC machines • Vertically integrated production with low cost foundries in close proximity • Good transport links to main markets plus new highway • Low level of corruption • Access to other CEE markets • Poland latest GDP 4.4%

  8. Precision Engineered Components (20% sales) • Spares for installed base of machines • Bearings and tool holding equipment • High precision tolerances up to 0.5 micron • Poland machining capability • Good recovery for bearings

  9. Laser Marking (14% sales) • Alternative to inkjet marking • Global trend towards traceability • Proprietary software & laser technology • Diverse customer base • Automotive • Aerospace • IT • Solar • Pharmaceutical • Pipeline of development projects

  10. Mechanical & Waste Handling (27% sales) • Sub Saharan Africa • Main drivers: • Infrastructure • Electrification • Mineral extraction • Positive GDP growth forecasts • Contract with Eskom completed in 2011

  11. Major Issues and Response 2009/11

  12. Outlook • More flexibility with the move to AIM • Poland is a medium term solution to the Group’s long term strategic issue on machine tools • Volume of transferred machines is increasing • Integration costs will reduce towards the end of the year • Margin benefits will be visible towards the end of the year • Upside potential over the next two years • The shift from distribution to manufacturing should be well received by the market • Good organic prospects offset by the uncertain macroeconomic environment • Board changes

More Related