600 Group maintains improvement in orders with 31pc rise

DIVERSIFIED engineer The 600 Group has seen a 31 per cent increase in orders in the first three months of its new financial year.

The Heckmondwike-based company said the improvement in orders seen earlier this year has been sustained over the past four months.

Last week the group announced plans to raise 2.5m, or 2m after expenses, through a loan from its biggest shareholder to expand the group through acquisitions as it completes the final stage of its turnaround.

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Investors will be asked to vote on the loan at a general meeting on August 27 at the company's headquarters in Heckmondwike, West Yorkshire. This is necessary because major shareholder Haddeo Partners and its affiliates would have a potential 38 per cent stake in the group if the loan gets approved.

This would take it above the 30 per cent threshold which means a mandatory offer must be made.

But Haddeo has no intention of taking over the company so a waiver has been granted by the Takeover Panel as long as shareholders approve the deal.

600 chief executive David Norman said he thought shareholders would be supportive of the fundraising.

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600 is Haddeo's first investment following its decision to buy a 28.2 per cent stake in the company in March.

Haddeo's is formed of a partnership between United States investor Paul Dupee and Rupert Hambro, part of the Hambro banking dynasty.

Haddeo is keen to develop 600 through acquisitions, which are likely to be UK-based and will enhance the group's diversification beyond machine tools into areas such as precision engineered components, laser marking, mechanical handling and waste management.