the 600 group plc presentation to shareholders annual general meeting 29 th september 2010
TRANSCRIPT
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The 600 Group PLC
Presentation to ShareholdersAnnual General Meeting
29th September 2010
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Contents
• Key issues 2009/10
• Financial highlights
• Key tasks 2010/11
• Structure of the Group
• Prospects by division
• Future positioning of the Group
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2009/10 Key Issues
• Legacy Issues– Most of these have been dealt with or are in
process
• Supply Chain (Machine Tools)– A permanent solution is achievable this year
• Market conditions– A slow recovery is underway
• Availability of Finance– The Group has refinanced in the UK and US
including an investor loan
• Restructuring– This phase of the turnaround plan is nearly
complete
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Financial Highlights 2009/10
• H2 underlying operating profit £.6M (2009: -£2.5M)
• Sales reduction £76M to £45M
– Machine tool market down 54% (US) and 44% (Europe)
– Discontinuation of low margin activities
• Margin increase from 27% to 32%
• H2 overheads to H1 prior year showing a reduction of £13.1M
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2010/11 Key Tasks
• Repair revenue streams– Improve order fulfilment
• Supply Chain– Rebuild confidence with key suppliers
• Machine Tools Business Model– Development of manufacturing footprint– CEE co-operation– Manufacturing operation to service the group sales
organisation– Focus on group brands
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Structure of the Group
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Prospects by Division
• Machine Tools– Positive forecast for 2011 from Oxford Economics – Change to the business model
• Precision Engineered Components– Margin improvement with in-sourcing– Web based spares ordering in US now live
• Laser Marking– Strong order book– Pipeline of development projects– High speed marking
• Mechanical & Waste Handling– Positive forecast from IMF for South Africa– Eskom contract
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New Website & Annual Report
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Diversified Engineering Group
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Four Divisions
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Positioned for Growth