A West Yorkshire-based international machine tool manufacturer, which last month reported second-half losses of £1.7 million, has seen order levels bounce back since September.

The 600 Group said order intake grew by 20 per cent, reflecting signs of recovery within its machine tools and laser markets.

The news came as statistics confirmed that the UK recession was officially over – but only just.

The country barely crawled out of recession in the final three months of 2009, with marginal 0.1 per cent growth ending a record six straight quarters of decline. But growth levels fell short of the expected 0.4 per cent.

The 600 Group, which has its European base in Heckmondwike and has global operations, said that while conditions remained tough, trading performance in the 14 weeks to January 25 improved. Sales were particularly strong in the United States and underlying revenue was also 25 per cent above the previous quarter.

600 Group said that its forward order book for the machine tools and laser markets remained stable and that order levels were expected to remain steady for the remainder of the financial year. Gross margins improved to 33 per cent and a successful transformation plan had achieved the expected cost savings.

David Norman, group chief executive, said: “The group’s performance during the period was in line with the board’s expectations and following the implementation of the cost reduction strategy, the group is well positioned to benefit from any further improvement in trading conditions.”

The UK’s struggle to recover from recession came as no surprise to Bradford business leaders. Sandy Needham, chief executive of Bradford Chamber of Commerce, said the lower-than-expected growth rate in the final quarter of 2009, confirmed that, although things were improving slowly, trading conditions remained difficult.

She said: “No-one expects a quick recovery and the official figures confirm that it will be a long haul back, in spite of encouraging signs of improvement in some sectors.

“Manufacturing is benefiting from firms upgrading their processes and focusing on greener production.”