600 Group in £1.1m sale and lease back deal

MACHINE tool maker 600 Group yesterday revealed that it had achieved a sale and partial lease back of its property as part of a strategy to improve its performance.

The 600 Group has completed the sale of its freehold site in Heckmondwike, West Yorkshire, to a privately owned company. In a statement issued to investors, the 600 Group said yesterday: “The net proceeds from the sale of £1.1m will be used to repay bank borrowings and provide additional working capital for the UK operations.

“The machine tools and precision engineering businesses will remain on the same site, in a newly refurbished leasehold factory and offices complex.”

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In November last year, 600 Group said it had turned a corner after returning to profitability and achieving underlying sales growth.

At the time, the firm said it was now considering acquisitions after making half-year post-tax profits of £189,000 and sales of £20m. The company makes products including high-tech lathes for car manufacturers, and giant chucks for the oil and gas sector.

600 Group formed its first machine tool company in 1932 and became the UK’s leading lathe manufacturer through the acquisition of Colchester Lathes in 1954 and TS Harrison in 1971.

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