600 : AGM Statement and Update on Trading

The 600 Group Plc

AGM Statement and Update on Trading

At the Annual General Meeting to be held today Paul Dupee, Chairman, will make the following statement:

"Trading in the current year to date and the outlook for the second half of the year are in line with the Board's expectations.  Revenues are slightly ahead of the corresponding period last year, and order intake is up by approximately 6%. These figures include the adverse impact of foreign exchange translation, without which revenues and order intake would be approximately 5% higher still. The net effect of currency on Group operating profit is broadly neutral. 

Electrox, our laser marking division, continues to deliver above average growth and the Board is satisfied with progress in developing this business unit. 

In August 2014, the company acquired 26.3% of the issued share capital of ProPhotonix Limited ("ProPhotonix"), a manufacturer and distributor of LED and laser diode arrays for industrial, medical and security applications. ProPhotonix is an AIM listed company registered in Delaware, USA and accordingly is not subject to the Takeover Code.  Shareholders may be aware that ProPhotonix has subsequently announced the adoption of a rights agreement designed to discourage the purchase of further shares in the company without the approval of its board of directors.

Whilst we are disappointed with such action, we are actively engaging in constructive dialogue with the board and management of ProPhotonix with the intention of maximising shareholder value in both companies.  Meanwhile, we consider that the acquisition of a substantial minority shareholding in Prophotonix, by an exchange of shares with major UK based institutional shareholders, offers potential value to our shareholders in the medium term.

 There is growing need for the identification and traceability of products and components throughout the supply chain in many industry sectors, often resulting from more stringent regulatory requirements.  We expect this to increase convergence of permanent marking, scanning and automation processes, and to generate strong demand for integrated solutions in this arena.  Accordingly we continue to pursue opportunities to expand our business interests in laser marking and allied technologies.

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