Interim Results

600 Group PLC
16 November 2004

                                                              16th November 2004


                               THE 600 GROUP PLC

             INTERIM RESULTS FOR THE 26 WEEKS TO 2nd OCTOBER 2004

CHAIRMAN'S STATEMENT

Market conditions

Since our preliminary results, announced in June, the UK and USA machine tool
markets have continued to improve steadily from the low levels experienced 12-18
months ago and markets in the Far East have continued to be buoyant.

Results

The Group's underlying order intake was up approximately 6% on last year, with
improvements in all geographic areas.

Turnover in the period was down £1.3m from £33.1m to £31.8m. Exchange rate
movements accounted for £0.5m of the movement, giving a real reduction of only
£0.8m. However, the Group's commission-only agency sales, which are excluded
from the headline turnover, increased by £2.4m from £0.4m to £2.8m, giving a
real overall increase in sales activity of approximately 5% compared with last
year.

The operating loss before pension credit and exceptional items reduced from
£1.3m to £0.8m as a result of an improved sales mix, an increase of £0.1m in
commissions received and the impact of cost reduction programmes carried out
last year.

With no restructuring costs in the period and improved net interest received,
the result before tax improved from a loss of £0.9m to a profit of £0.4m.

Net cash at the period end was £7.1m, a decrease of £2.8m from the year end. Net
working capital excluding the pension credit and dividend increased by £0.4m,
incorporating a stock increase of £2.5m reflecting an increase in work in
progress for current orders and a planned increase in finished machine stocks to
support the expected ongoing market recovery. Payment of the final dividend
absorbed £2.3m.

Dividend

The interim dividend is maintained at 1.5p per share.

People

Peter Bullock retired from the board after the Annual General Meeting. His
contribution to the Group has been significant over many years and I should like
to record the thanks of the board and our very best wishes for the future.

Outlook

Recent positive trends in manufacturing activity in western economies are
expected to be maintained into 2005, although they are likely to include
significant short-term fluctuations. With reducing levels of excess capacity,
demand for machine tools is likely to become more robust as the year progresses.
Far East markets are expected to remain strong.

Our consistent strategy of developing international strategic alliances, coupled
with constant enhancements to our product range and market coverage, is starting
to show results. I am confident that the maintenance of this strategy will lead
to improved performance in the medium term.

                                                                  Michael Wright
                                                                        Chairman
                                                                16 November 2004





Enquiries:

Tony Sweeten, Group Chief Executive                 Telephone:    [phone]
John Fussey, Group Finance Director

gcg hudson sandler                                  Telephone:    [phone]
Nick Lyon

Consolidated profit and loss account (unaudited)

                                                                          26 weeks           26 weeks         53 weeks
                                                                       to 02.10.04        to 27.09.03      to 03.04.04
                                                                              £000               £000             £000

Turnover                                                                   31,815             33,146           66,323

Operating loss before pension credit and exceptional items                   (838)            (1,285)          (1,436)
Pension credit                                                              1,149              1,061            2,160
Exceptional items - restructuring costs                                          -              (654)            (654)

Profit/(loss) on ordinary activities before interest and taxation             311               (878)              70
Net interest receivable/(payable)                                              96                 (9)             116
Profit/(loss) on ordinary activities before taxation                          407               (887)             186

Taxation (charge)/credit                                                     (108)               425              (20)
Profit/(loss) for the financial period                                        299               (462)             166

Dividends                                                                    (853)              (842)          (3,115)
Retained loss for the financial period                                       (554)            (1,304)          (2,949)


Earnings per share - basic and diluted                                        0.5p              (0.8)p            0.3p

Dividend per ordinary share                                                   1.5p               1.5p             5.5p



Notes

1.       The charge for corporation tax comprises UK taxation £nil (2003:£nil),
overseas taxation charge of £5,000 (2003:credit £168,000) and deferred taxation
charge of £103,000 (2003:credit £257,000).

2.       The basic earnings per share are based on the profit for the period of
£299,000 (2003:loss for the period of £462,000) and the weighted average number
of shares outstanding of 56,833,763 (2003:56,102,330). For diluted earnings per
share, the weighted average number of ordinary shares in issue is adjusted to
57,058,624 (2003:56,204,993) and assumes conversion of dilutive potential
ordinary shares of 224,861 (2003:102,663).


Summarised consolidated balance sheet (unaudited)

                                                                       At 02.10.04       At 03.04.04     At 27.09.03
                                                                              £000              £000            £000
Fixed assets                                                                15,276            15,953          16,773

Working capital
Stocks                                                                      22,867            20,346          23,121
Pension fund prepayment                                                     34,999            33,643          32,338
Debtors                                                                     14,333            16,281          16,417
Deferred taxation                                                           (8,221)           (8,132)         (7,371)
Other creditors and provisions                                             (14,720)          (16,021)        (15,314)
                                                                            49,258            46,117          49,191

Net funds                                                                    7,127             9,902           7,885

Capital employed                                                            71,661            71,972          73,849

Capital and reserves
Called-up share capital                                                     14,211            14,206          14,028
Reserves                                                                    57,450            57,766          59,821
                                                                            71,661            71,972          73,849

Reconciliation of movement in shareholders' funds (unaudited)


                                                                         26 weeks          26 weeks        53 weeks
                                                                      to 02.10.04       to 27.09.03     to 03.04.04

                                                                             £000              £000            £000
Profit/(loss) for the period                                                 299              (462)            166
Dividends                                                                   (853)             (842)         (3,115)
                                                                            (554)           (1,304)         (2,949)
Currency translation differences (net)                                       233                 2            (559)
New share capital subscribed                                                  10                 6             335
Net reduction in shareholders' funds                                        (311)           (1,296)         (3,173)

Opening shareholders' funds                                               71,972            75,145          75,145
Closing shareholders' funds                                               71,661            73,849          71,972


Summarised consolidated cash flow statement (unaudited)

                                                                               26 weeks        26 weeks        53 weeks
                                                                            to 02.10.04     to 27.09.03     to 03.04.04
                                                                                   £000            £000            £000
Operating profit/(loss)                                                            311            (878)             70

Depreciation less profit on sale of fixed assets                                   881           1,022           1,999
Amortisation of goodwill                                                            92              93             186
Increase in pension prepayment                                                  (1,356)         (1,273)         (2,578)
(Increase)/decrease in working capital                                            (177)          3,067           4,743
Net cash (outflow)/inflow from operations                                         (249)          2,031           4,420
Net interest received                                                               55              26              63
Dividends paid                                                                  (2,273)         (2,244)         (3,086)
Taxation (paid)/repaid                                                             (70)            695             544
Net purchase of tangible fixed assets                                             (248)           (434)           (752)
Net cash (outflow)/inflow before use of liquid resources and                    (2,785)             74           1,189
financing

Management of liquid resources                                                    (977)           (446)             30
                                                                                  
Financing
Issue of ordinary shares                                                            10               6             335
Net repayment of external borrowing                                               (154)         (1,728)         (2,875)
Net cash outflow from financing                                                   (144)         (1,722)         (2,540)

Decrease in cash in the period                                                  (3,906)         (2,094)         (1,321)





Reconciliation of movement in cash flow to movement in net funds (unaudited)


                                                                               26 weeks        26 weeks        53 weeks
                                                                            to 02.10.04     to 27.09.03     to 03.04.04

                                                                                   £000            £000            £000
Decrease in cash in the period                                                  (3,906)         (2,094)         (1,321)
Net repayment of external borrowing                                                154           1,728           2,875
Cash outflow/(inflow) from management of liquid resources                          977             446             (30)
(Decrease)/increase in net funds resulting from cash flows                      (2,775)             80           1,524
New finance leases entered into                                                      -               -             (77)
Exchange movement on opening net funds                                               -             365           1,015
(Decrease)/increase in net funds in the period                                  (2,775)            445           2,462
Net funds at the beginning of the period                                         9,902           7,440           7,440
Net funds at the end of the period                                               7,127           7,885           9,902


Notes to the financial information

The financial information set out in this interim report does not constitute
statutory accounts. Statutory accounts for the period ended 3 April 2004 have
been delivered to the Registrar of Companies. KPMG Audit Plc, The 600 Group
PLC's auditors, reported on those accounts under section 235 of the Companies
Act 1985. Their report was unqualified and did not contain a statement under
section 237(2) or (3) of that Act.

Copies of the interim report will be sent to all shareholders and will be
available to members of the public from the company's registered office at 600
House, Landmark Court, Revie Road, Leeds, LS11 8JT.

The 600 Group PLC is registered in England and Wales No. 196730.

Financial calendar

The interim ordinary dividend is payable on 10 January 2005 to shareholders on
the register at 10 December 2004.

Share price information

Information concerning the day-to-day movement of The 600 Group PLC share price
can be found by dialling 0906 003 4031 for the Financial Times share price
service.

The 600 Group PLC
600 House
Landmark Court
Revie Road
Leeds LS11 8JT

Telephone: [phone]
Facsimile: 44 (0) 113 276 5600
www.600group.com




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