REG - 600 Group PLC - Trading Update and Update regarding Annual Report

600Announcement

19/03/2024 17:15

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RNS Number : 4863H  600 Group PLC  19 March 2024

 

 

19 March 2024

 

 

 

The 600 Group PLC

("600 Group", the "Group" of or the "Company")

 

Trading Update

 

Update regarding Debt Facilities and Annual Report

 

600 Group plc, the industrial laser systems manufacturer (AIM: SIXH),
announces a trading update for the financial year ended 31 March 2024 ("FY24")
and provides a further update in respect of the Company's currently defaulted
bank facilities.

Unaudited FY24 revenues for the 11 months ended 29 February 2024 were US$22.6
million, 19% and 24% below the comparative periods in FY23 and FY22
respectively, with an FY24 gross margin of 34.6% (2.0% lower than FY23 and
5.0% lower than FY22) and the Group expected to incur FY24 losses before tax
of more than US$5 million.

As announced on 6 October 2023, the Group has been in negotiations for the
sale of its operating businesses, all located in the United States, but has so
far been unable to conclude a satisfactory transaction. As a result, the
Group's US subsidiary, 600 Group, Inc, continues to be in default on the
Group's now expired and fully drawn US$5.5 million facility with Bank of
America (the "Facility"), in respect of which US$0.2 million of interest has
now accrued.

Whilst negotiations continue with potential acquirors for the operating
businesses, there can be no assurance that a satisfactory deal will be
concluded within a reasonable time frame or that the terms of any such
transaction would enable the Company to repay the Facility. As a result, the
Company is currently considering various alternatives including bankruptcy
and/or dissolution under US laws for its US subsidiaries.

The Board of Directors confirms that the Group will not be able to publish the
2023 Annual Report and/or unaudited interim results for the six months ended
30 September 2023 prior to 31 March 2024.

Pursuant to Rule 41 of the AIM Rules for Companies, the admission of the
Company's ordinary shares to trading on the AIM market of the London Stock
Exchange is due to be cancelled with effect from 2 April 2024, being the date
falling six months from the date of suspension of trading in the Company's
ordinary shares on 2 October 2023 ("Cancellation").

Prior to Cancellation, and notwithstanding the prevailing suspension of
trading in the Company's ordinary shares, the Company will continue to make
announcements as and when there are any developments that require announcement
in accordance with its obligations under the AIM Rules for Companies.

 

 

Enquiries:

 The 600 Group PLC                                             Tel: +1 407 818 1123

 Paul Dupee, Executive Chairman

 Cavendish Capital Markets Ltd (Nominated Adviser and Broker)  Tel: 020 7220 0500

 Ben Jeynes / Dan Hodkinson (Corporate Finance)

 Henry Nicol (Sales)

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation 596/2014 which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time. Upon the publication of this announcement, this inside information is
now considered to be in the public domain

 

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