600 Group announces share placing and losses

Machine tools business 600 Group says it was hamstrung by the performance of its European operations in the full year to the end of March but has now cut the fat, and raised money to fund investment.

In the 12 months to March 31st continuing revenues increased 8.1% to £39.39m but the business turned a loss of £0.29m compared to a profit the previous year of £1.1m.

Since the year end, a new Chief Executive, Nigel Rogers, has been appointed while the loss-making manufacturing operation in Poland has been closed.

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Chairman Paul Dupee, who joined in September 2011, says the changes were forced because the financial performance of 600 last year was "unsatisfactory".

As well as its results announcement on Thursday, the group has also revealed an institutional share placing worth £1.47m which will be used to fund working capital and shorten the delivery lead times of products to customers.

This appears to have boosted the confidence of investors, with the stock up 7.3% by 9:57.

BS