INDUSTRIAL products business the 600 Group saw profits slide as it took measures to counter tough trading conditions and significantly reduced overheads.

The Heckmondwike-based machine tools and industrial laser marking and etching equipment maker saw pre-tax profits fall to £1.01 million in the year to April 2 from £3.68 million the previous year. Revenues increased by three per cent from £43.8 million to £45.3 million.

The group, which now earns more than 60 per cent of its revenues from the United States and 19 per cent in the UK, said market conditions in the machine tools business were challenging throughout the year in spite of improved trading in the US, reducing costs - including unspecified redundancies - and moves to expand markets in Asia.

The performance in the UK and Europe was weaker than expected.

The group acquired the remaining 20 per cent of laser business TYKMA which is being integrated with its Electrox operation whose manufacturing operation was transferred to the US. The Electrox site in Letchworth was sold for £2 million.

Redundancy and restructuring costs of the integration of Electrox and TYKMA, along with reducing overheads and the overhead and operating costs at the Heckmondwike head office and the UK machine tools business amounted to £1.72 million.

Paul Dupee, executive chairman, said: “Despite the difficult trading environment which we have experienced this past year we have taken the necessary actions to maintain, if not improve, the performance of the operating subsidiaries in the USA and UK as well as improve the financial strength of the company.

“We maintain a strong market position thanks to our industry recognised brands and are taking active steps to increase our worldwide distribution network to accelerate revenue growth.

“This we expect, coupled with the reduction in overheads, will yield better margins on increased sales in the future.”