600 Group Discussion Board http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion http://www.iii.co.uk/icons/logos/uk_logo.gif http://www.iii.co.uk tag:iii.co.uk,2003:tst.9584681 http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=9584681&action=detail Fri, 27 Apr 2012 11:38:00 GMT indexed tag:iii.co.uk,2003:tst.9028390 http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=9028390&action=detail Sat, 03 Dec 2011 11:03:00 GMT dave297 tag:iii.co.uk,2003:tst.8917499
A significantly stronger order book, improvements in product quality and continued rise in US manufacturing trends despite wider economic woes makes this a solid bounce back candidate over the next 6-12 months. Excluding a worldwide market collapse that is By KorWraith ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8917499&action=detail Sun, 06 Nov 2011 14:39:00 GMT KorWraith tag:iii.co.uk,2003:tst.8915977 As profit warnings go-I have heard much worse & there still remains scope for a substantial recovery in the SP if the underlying positive trend continues. By dave297 ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8915977&action=detail Sat, 05 Nov 2011 06:17:00 GMT dave297 tag:iii.co.uk,2003:tst.8913699 http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8913699&action=detail Fri, 04 Nov 2011 10:41:00 GMT The Dutchman tag:iii.co.uk,2003:tst.8912703 http://www.insidermedia.com/insider/yorkshire/61473-factory-strike-hurts-600-group/ By kellytheace ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8912703&action=detail Fri, 04 Nov 2011 07:43:00 GMT kellytheace tag:iii.co.uk,2003:tst.8866690 all the best,
pi By pi4 ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8866690&action=detail Fri, 21 Oct 2011 08:26:00 GMT pi4 tag:iii.co.uk,2003:tst.8865882 I appreciate Mr Normans rationale for moving to the Aim market,but unfortunately the move coincided with a collapse in the SP despite encouraging noises from the company.
I was forced to sell 4 tranches of shares held in my familys ISAs ,and I am not suggesting that forced ISA sales were responsible for the collapse in the SP,but it is unlikely to have helped.I have replaced my "sold" shares & I believe that it would help support our SP if the Board started buying some shares at these ridiculously low levels as their current holdings are very modest(excluding the Hadeo interest).
With view to the companys comments regrding trading recently our little company is seriously undervalued & it would be a pity if Hadeo broke with their apparent tradition & bought the balance of the company for a song.
I hope that Mr Norman has the interests of all shareholders in mind! By dave297 ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8865882&action=detail Thu, 20 Oct 2011 19:51:00 GMT dave297 tag:iii.co.uk,2003:tst.8854820 ')" target="_new" rel="nofollow">http://www.yorkshirepost.co.uk/business/business-news/far_east_outsourcing_losing_its_appeal_says_600_group_chief_1_3835438

By KorWraith ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8854820&action=detail Mon, 17 Oct 2011 22:13:00 GMT KorWraith tag:iii.co.uk,2003:tst.8854816

Last year 600 Group bought a factory in Poland to take a significant proportion of its manufacturing in-house. David Norman said the company plans to grow this share, aided with acquisitions.

Resuming manufacturing has boosted the Leeds-based company’s productivity, and it said orders are up on a year earlier.

However, Mr Norman, who has spearheaded 600 Group’s turnaround, added its decision to expand in Poland rather than Yorkshire was in part due to a skills shortage.

Mr Norman said it has found Far Eastern manufacturing unsuitable for making complex devices such as its machine tools.

“If it’s high volume and repetitive, China is quite a good place to do it,” said Mr Norman. “If you’ve got high logistics costs, low volume and high priority, it’s much better to do it in a CEE (central and eastern Europe) country.”

Mr Norman joined the company in August 2008, and shortly after the market for machine tools “absolutely collapsed”.

By then it was making only about five per cent of its products, relying on Chinese and more costly Taiwanese suppliers.

“From a cost point of view it was cheaper to manufacture out there (China). But with the switch to China came quality problems.”

Tools such as lathes and saws were arriving in the UK still needing significant work, he said.

“There were lights on and powered up and nothing would happen. It was clear in the end we were not able to produce in a consistent way.”

As well as the cost of warranties, outsourced manufacturing also tied up a significant amount of working capital, he said.

Mr Norman began searching for an alternative in central and eastern Europe. Late last year it sealed the purchase of a machine tool company in Tarnow, Poland.

600 Group bought the 100,000 square foot site from weapons group Bumar for 1m euros. With it came a workforce of almost 200 staff. In April it raised £1.76m through a share placing to increase production, allowing it to invest in modern, computer-controlled machines at the factory.

The site is next to the A4 autostrada – a motorway which once complete will span southern Poland, linking with the group’s major markets of Germany to the west and Russia to the east.

The company makes roughly 1,000 machines a year, and by April intends to be making around 60 per cent of these itself. Over the next year it also plans to transfer some work to Poland from the US and Australia.

Mr Norman said skills shortages meant it made more sense to expand in Poland than the UK.

“They have got the skills. We do everything there with the exception of casting the metal itself. It means that the material cost is going to keep reducing. Labour costs and establishing costs in Poland are relatively modest.”

He added it would be a challenge to find the 200 skilled engineers needed for a comparable factory in West Yorkshire.

“The trouble is that a lot of the skills base has already gone. Sadly we’ve got to a stage where a lot of our workforce have left the industry and we’ve not got this younger element coming through. This type of work is probably deemed to have not enough status in it.”

The company recently moved head office from its Heckmondwike factory to Leeds, and has been cutting jobs at the 120,000 sq ft site. A former wire-drawing factory, Mr Norman said it no longer suits the group’s needs.

However, Mr Norman said 600 Group will continue to make large chucks and CNC machines in Heckmondwike, and is working with Kirklees Council to find an alternative site.

“We want to maintain a presence in West Yorkshire,” he said. “We want to sell that site at some stage and in the short term we are compressing all operations into an area of the site.”

Mr Norman’s turnaround has shrunk the By KorWraith ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8854816&action=detail Mon, 17 Oct 2011 22:09:00 GMT KorWraith tag:iii.co.uk,2003:tst.8799002
Topping up at the start of next week. By KorWraith ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8799002&action=detail Thu, 29 Sep 2011 23:58:00 GMT KorWraith tag:iii.co.uk,2003:tst.8778044 Thanks,
Pi By pi4 ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8778044&action=detail Fri, 23 Sep 2011 08:09:00 GMT pi4 tag:iii.co.uk,2003:tst.8597904
The company is more focussed than it was in the past and assuming no worldwide catastrophe I suspect we'll see some satisfying growth in the next 18 months.

Like Dutchman I'd top up should we head closer to 25p but I don't think we'll be so lucky. By KorWraith ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8597904&action=detail Sun, 31 Jul 2011 13:15:00 GMT KorWraith tag:iii.co.uk,2003:tst.8591003 28/07/2011 Miles Nolan
http://www.growthcompany.co.uk/news/1644193/600-group-returns-to-black.thtml


Though engineering minnow 600 Group (SIXH) was founded in 1932, the last eighteen months have witnessed the most dramatic reshaping in its history.

Chief executive David Norman joined the group just under three years ago, and at the time he inherited an unwieldy group with 30 operating units - a huge number for a small listed engineer. This has since been whittled down to 12, and at the same time a massive £16 million of cost has been taken out. The recent move to AIM from the full list was also undertaken to save money. In an interview with Growth Company Investor Norman said 'we had to attack the cost base quickly, particularly in the UK and US'.

With machine tools its largest division this had largely been shifted to China, unfortunately the typically low cost country struggled with production and quality problems. This led 600 Group to look closer to home and last year it acquired a 100,000 square feet, former state owned facility in Poland, which should provide plenty of spare capacity. The business has enjoyed an improving order intake and has benefited from a recovery in the US, further market growth is expected in 2012.

In precision engineering components 600 Group has enjoyed good demand for spares, driven by the introduction of web-based ordering. Demand for bearings has also picked up after a savage downturn in demand. The laser marking arm provides an alternative to inkjet marking, it is trading well and has a number of new products in the pipeline. In South Africa its mechanical and waste handling arm was buoyed by a major contract with Eskom. Though possibly deemed as non-core, its net assets are in the region of £4 million so any sale would need to be of this order.

Sales in the year to 2 April increased 10 per cent to £50.6 million as the group reported a pre-tax profit of £3.3 million (2010: £8.7 million loss). Though a £2.57 million pension credit helped it also enjoyed much lower restructuring charges.

House broker finnCap expects 2012 adjusted pre-tax profits of £2 million and EPS of 3.1p. Since last November the shares have doubled to 29.5p, but this is still a massive discount to peers in its sector. With potential acquisitions on the agenda (possibly in the aerospace sector for example) the shares appear overlooked.

Tags: AIM market, David norman, Engineering minnow, Recovering markets

Sector: Industrial Engineering

Companies: 600 Group By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8591003&action=detail Thu, 28 Jul 2011 16:15:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8588158
Is the change of chairman a good thing? and an old partner of the auditors appointed to the board I don't like.

I may top up a bit (but not much !) if the price drops below 28. By The Dutchman ]]> http://www.iii.co.uk/investment/detail?code=cotn:SIXH.L&display=discussion&id=8588158&action=detail Thu, 28 Jul 2011 08:04:00 GMT The Dutchman