Investors told of 600 Group's 'confidence'

Machine tools and laser systems designer, distributor and manufacturer 600 Group updated the market on its trading on Wednesday, as investors gathered for its annual general meeting.

The AIM-traded firm said trading in the current financial year continued to be in line with the board’s expectations.

Order and quote activity remained “good”, and current order books in machine tools were up 60% with industrial lasers ahead 36% on the same time last year.

“Whilst our markets always remain subject to world economic and political influences these levels of order books gives us confidence in our trading going into the second half of the financial year,” the board said in its statement.

“Additionally we are pleased to report that the group pension scheme continues to perform strongly and remains over 100% funded on a technical provisions valuation basis and various options for the scheme are being considered.”

The company said it was in the process of undertaking a direct subscription for approximately 8,615,384 new ordinary shares of 1p at a subscription price of 13p per ordinary share.

It confirmed the direct subscription would raise approximately £1.12m before expenses.

The company expected to make a further announcement later on Wednesday of the completion of this direct subscription.