Chinese investor sets sights on 600

The 600 Group, which makes and distributes machine tools to customers in 180 countries, said the approach from Qingdao D&D Investment Group Co may or may not lead to a cash offer being made for the company.

The Heckmondwike-based group reported total profits of £3.9m in the year to March 30, up from a loss of £14.9m the previous year. Revenues rose 11.2 per cent to £41.8m and the group reduced debts from £8m to £5.4m.

The 600 Group’s share price has risen in recent weeks after City adviser and broker Finncap introduced the management team, led by Nigel Rogers, to new institutional investors.

The presentations were said to have been well received.

D&D, based in the Shandong province of eastern China, makes benchtop power tools, including air compressors and metalwork and woodwork machinery. It has annual sales of $100m, according to its website.

Profitable UK manufacturing companies with established customer bases are attractive takeover targets for international investors who see signs of economic recovery in key European markets.

Under City rules, D&D has until 5pm on October 9 to announce a firm intention to make an offer or walk away.

Shares in 600 Group closed at ???, up ?? per cent.