The business, which sells and distributes machine tools, has a "strong order book" for deliveries this year and next, said chairman Michael Wright. Mr Wright was reporting a turnaround from a pre-tax loss of £1.7 million a year ago to a profit of £2.4 million this time. The placing of new orders has continued "at an encouraging level", he said. "New product launches, increased sales and marketing coverage and an improved supply chain performance have further contributed to the positive progress made by the group."

Chief executive Andrew Dick said the global market for machine tools had expanded for the fifth year running, driven by growing economies in the Far East, such as China, but markets closer to home, such as the UK, were also seeing favourable conditions, he said. Last October's merger of the group's Colchester and Harrison brands of computer-controlled lathes has been "well received" by customers, he said. It means the two brands are no longer competing for the same orders.

The UK machines tools business, based at the group's main UK sales and distribution centre in Shepshed's Gelders Hall Road, "has been transformed into one of the UK's leading providers", said Mr Dick. Last month, the group announced it had bought the UK parts and service business of manufacturer Toyoda-Mitsui for £390,000. The business, which was based next to the 600 Centre, has transferred in with three people moving across.

Earlier this year, the 600 Centre secured the rights to distribute automated lathes for Japanese giant Fuji Machine Tools. The group's machine tools are used in sectors such as medical, automotive and aerospace. It has recently completed a major installation of tools at the Airbus factory at Bristol. The group will be making a big pitch for new orders at the world's largest machine tool exhibition, EMO, which takes place in Hannover in September.

Source: Leicester Mercury
Source: Factiva