600 Group reports positive results following strategy change
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Following the launch of a new Group strategy (see Machinery, November 2006, page 16), 600 Group has announced half-year results in line with its target figures, with a profit before tax of £0.3 million following improved sales and reduced operating costs.
Order intake for the first half of the Group's financial year (April 1 to Sept 30) increased compared with last year, particularly due to significant improvements in UK manufacturing operations and the Group’s South Africa operation, while it has an “outstanding order book for the second half of the year,” chief executive Andrew Dick (pictured).
“We are continuing to achieve positive trends in both the UK and in North America," he added. "This is in part due to the overall improvements in those markets, and in part due to the initial impact of our new strategy.”
The appointment in the summer of Don Haselton as president of 600 Inc, a new post, is already having a positive impact and this is expected to both continue and gather pace, said the Group statement. The effects of Mr Haselton's appointment are enhanced by the appointment of a vice president sales and marketing for Group laser specialist Electrox’s North Americas operation, which is also showing improved performance.
The initial implementation of the Group's new Strategy in the UK, in particular the creation of 600 Solutions to provide high technology systems to meet customer’s individual production requirements, is delivering positve results.
Recovery in other markets is beginning, with a particularly strong performance by the 600 Group East European operation. In conclusion, Mr Dick said: “We do not anticipate significant changes in the European market until we have initiated the new strategy for Europe, due to be announced at the end of the first quarter 2007. We are delighted to see such a positive and immediate response to the new Strategy in the areas in which it is now being implemented and anticipate a similar strong improvement in Europe during the second half of next year”.
In addition to a substantially improved and more customer-orientated sales policy, the new Strategy has also produced improvement in the supply chain.
In addition to the appointment of additional senior managers, the essence of the new strategy is that the Group has been divided into three distinct and complementary divisions, 600 Machine Tools, 600 Electrox Laser, and 600 Technologies. Globally, the focus of the Group’s efforts will be North America, Eastern and Central Europe as well as a continued strong presence in the mature Western Europe and UK markets.
“Our remit is to market a focused portfolio of branded machine tools, laser markers and technology solutions which provide quality, dependability, and service at their respective price positions through a customer-focused organisation," explained Mr Dick. "This portfolio will be marketed primarily to mature Western economies and the growing economies of Central and Eastern Europe. We developed the new strategy to translate this remit into practice and early results indicate that we are right in the actions we are taking”.
