Calderdale machine tool maker reports on impact from crisis

Machine tool maker The 600 Group said it has taken a hit from the international response to Covid-19, including Government restrictions on working and movement.
Executive chairman Paul Dupee and Terry Allison, chief operating officer, 600 GroupExecutive chairman Paul Dupee and Terry Allison, chief operating officer, 600 Group
Executive chairman Paul Dupee and Terry Allison, chief operating officer, 600 Group

The Elland-based firm said that deliveries in March were negatively affected across all regions where the group operates. The ongoing restrictions are also creating supply challenges, particularly in the general engineering sectors.

The group said trading conditions are more challenging, with volatile order intake in both machine tools and industrial laser systems, including a number of projects being delayed until the next financial year.

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600 said the health and wellbeing of its employees remains the key priority and steps have been taken to protect all employees at the company’s operating sites, in line with regulatory guidance.

Trading results for the year to March 28 are expected to be broadly in line with the board’s previously revised expectations. However, given the unprecedented uncertainty around the impact of Covid-19, the board is unable to provide any guidance for the current financial year to March 2021 until the group gets more clarity.

To help mitigate the impact of the pandemic, the group is taking advantage of Government schemes and stimulus packages, including loans under the US Government Paycheck Protection Program.

It has also taken action to reduce overheads wherever possible. The group has adopted short time working, furloughed staff and has adopted temporary salary reduction schemes for many employees across the group including the board and senior executives. The company has also deferred all non-critical capital expenditure.

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600’s executive chairman, Paul Dupee, said: “Despite the short-term end-market weaknesses and macroeconomic uncertainty, the board continues to believe in the long-term fundamentals of the group.

“The board has taken decisive action to reduce costs and to keep the workforce and technical competencies together to ensure the group is well placed to reap the immediate benefits when the markets return to normality.”