600 Group PLC Sale of Property and impact of Brexit (0639D)
July 04 2016 - 2:00AM
UK Regulatory
TIDMSIXH
RNS Number : 0639D
600 Group PLC
04 July 2016
4 July 2016
The 600 Group Plc
Sale of property and impact of Brexit
The 600 Group PLC ("the Group"), the AIM listed distributor,
designer and manufacturer of industrial products (AIM: SIXH), is
pleased to announce the sale for cash of its Letchworth Garden City
long leasehold property for its book value of GBP2.0m net of
selling expenses.
Following the integration of the two industrial laser system
businesses TYKMA and Electrox, manufacturing activity has been
centered in the new purpose built facility in Ohio, USA and
consequently the existing UK site has become too large for the
European sales support and service operation which is moving to a
new leased site in Letchworth.
Contracts have been exchanged today, with completion expected in
the next two weeks, for the sale of the property for a net GBP2.0m
to the Kite Packaging Group.
The net proceeds after costs will be applied in reduction of the
UK senior bank facility.
Commenting on the impact of Brexit, Paul Dupee Executive
Chairman said:
"Although it is very early to speculate on the effect that
leaving the EU may have in the coming years, we would ask
shareholders to consider a number of important factors which we
believe reduce the risks for the Group associated with this new
trading environment. 60% of the Groups activity is currently
conducted in the USA and these businesses are the main profit
drivers of the Group. Furthermore, the dollar income we receive
gives us a natural hedge against the majority of our purchases
which are in dollars.
In the last year only 13% of Group sales were to EU countries
and we are firmly focused on developing new markets outside of this
area particularly in South East Asia. Over 15% of our total Group
revenues are derived from the supply of spares parts and services
and this is not dependent on achieving new sales but simply
servicing our existing client base and lastly, the growth of our
global industrial laser systems business is largely driven by
legislative changes and the requirement for traceability both of
which are increasing worldwide irrespective of the situation in the
UK."
Enquiries:
------------------------------ ---------------------------
The 600 Group PLC Tel: 01924 415000
------------------------------ ---------------------------
Paul Dupee, Executive
Chairman
------------------------------ ---------------------------
Neil Carrick, Finance
Director
------------------------------ ---------------------------
Spark Advisory Partners Tel: 020 3368 3553
Limited (NOMAD)
------------------------------ ---------------------------
Sean Wyndham-Quin/ Miriam
Greenwood
------------------------------ ---------------------------
Cadogan PR Limited (Financial Tel: 020 7499 5002 / 07771
PR) 713608
------------------------------ ---------------------------
Alex Walters
------------------------------ ---------------------------
FinnCap (Broker) Tel: 020 7600 1658
------------------------------ ---------------------------
Tony Quirke/Mia Gardiner
(Sales/Broking)
------------------------------ ---------------------------
More information on the Group can be viewed at:
www.600group.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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