Qingdao D&D Investment Group Co. Ltd has decided not to bid for machine tools supplier 600 Group but it may buy parts of the business instead.
There are no other potential bidders and Qingdao D&D cannot make a contested bid for six months. The original bid approach was announced nearly four months ago.
600 Group returned to profit in the six months to September 2013 as revenues rose 5% to £20.9m. This was against a background of lower demand for machine tools. The operating profit contribution from machine tools jumped from £454,000 to £1.21m. Laser marking profit improved from £110,000 to £144,000. A new range started to generate orders after the end of the half year.
At 16.5p a share, down 3p, 600 Group is valued at £13.9m. NAV is £21.8m, including a pension surplus of £18.6m - although the deferred tax liability of £7.58m appears to relate to this surplus. Net debt is £5.65m.
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