Final Results

Ross Group PLC
3 October 2000

                            FINAL RESULTS

Preliminary announcement by Ross Group PLC of the Audited Results
for the Eighteen Months Ended 30 June 2000

CHAIRMAN'S STATEMENT


RESULTS

The result of the group before tax for the eighteen month period
ended 30 June 2000 was a loss of £5,817,000 (year ended 31 December
1998: Profit of £354,000). The accounting reference period was
extended to 30 June 2000 from 31 December 1999 in order to capture
the majority of the effect of the group's reorganisation mentioned
below. This loss for the period was largely incurred as a result of
inadequate financing, poor engineering contract decisions, adverse
exchange rates, and a heavy overhead burden.

The group's total turnover for the period was £19,580,000, which
shows a decline when pro rated and compared to the previous period.
This decline was as a result of significant changes in the group
activities during the period, details of which have been given in
recent announcements and are fully explained in the financial
statements.

Because of the Balance Sheet position, the board is unable to
recommend the payment of a dividend. The board will continue to
endeavour to return the company to a dividend paying position as soon
as is practicable.


DIVISIONS OF THE GROUP

Automotive Electronics
Over the eighteen month period to 30 June 2000 the division
experienced severe cashflow difficulties and whilst good margins were
achieved turnover suffered a marked decline.  The administrative and
financial burden in carrying the division has caused a large
operating loss.  The new board are currently seeking a disposal of
the profitable part of the business and have commenced legal action
against the former directors of Ross Autotronics Limited for a
possible claim for loss of profits and against Meta for both
withdrawal of warranty support and working with the former directors,
whilst still directors, to terminate the Meta distribution contract.

Power
During the period, the division experienced severe pressure on
margins mainly as a result of competitive forces, high stock levels
and adverse exchange rates.  Cashflow difficulties have caused the
new board to take immediate measures to save the core business, which
remains profitable.  The manufacturing capacity in the UK was
transferred to China and operations will now continue in the UK on a
distributor basis.  Economies of scale advantages should bring the
Chinese operations back to profit in 2000/01.

The factory in China is already benefiting from links to the new
board's technical abilities.  Whilst there have been large one off
costs in this reorganisation, the planned expansion of the
distribution network into Europe should reap benefits as a result of
reduced overheads.

Technical Services
The division had mixed fortunes in the period.  Whilst turnover
showed strong improvement, the margins suffered, mainly as a result
of poor forward costing decisions.  The Foray Control Systems
Limited, Giltpack Packaging Limited and GEL (Rhayader) Limited
businesses were sold during the period, as they required high
management input, excessive administrative overhead and were regarded
by the Directors as non-core activities.

GEL Engineering Limited showed improved turnover mainly as a result
of the ongoing aerospace contract.  This division has been operating
on low margins and the financing impact has caused severe cashflow
difficulties.  However, the container, mechanical and electrical
departments are starting to show improved margins.  The board has
decided to continue this business and has strengthened purchasing and
production controls as wellas improving the engineering efficiency.
The board remains open to a possible disposal of GEL Engineering
Limited subject to receiving a suitable offer.

STRATEGY

The board will continue the restructuring of the Power Business at
the factory in China (through San Gain Industrial Holdings Limited).
While the UK operations will continue its existing business activity,
it will do so as a distributor for the products manufactured in
China. With regard to the Technical Services division, this will
continue to maximise its highest margin business in the light
container and mechanical and electrical sub divisions. The Aerospace
sub division has not performed to expectations and contract
renegotiations are being undertaken to improve margins.

It must be noted that the restructuring of the business has not yet
been completed and the new board reserves its decision to consider
any change in direction until the reorganisation is complete. The
board will continue to support the group's core business and has
negotiated adequate finance to do so. Substantial investment in new
product development and marketing strategies is also being made.


CURRENT TRADING AND PROSPECTS

The group has retrenched its activity into higher margin businesses
and eliminated unnecessary overheads. Its prospects are dependent on
the future decisions as to its direction but the Directors are
optimistic about the future potential of the group.


OTHER IMPORTANT MATTERS

The company is currently in dispute with Meta Systems, the main
supplier to the Autotronics division, in connection with withdrawal
of warranty support and the board is confident of a positive outcome.
With regard to the freehold property in Essex, this is now in the
process of being sold and the directors are expecting to receive
value shortly.


STAFF

I would like to take this opportunity to thank our employees,
shareholders, bankers, advisers, suppliers and customers for their
continuing support.


P. F. G. Binney
Chairman

3 October 2000


Consolidated Profit and loss Account for the Eighteen       
Months ended 30 June 2000
                                                                   
                                                                   
                                       June 2000      Dec  1998   
                                       18 Months      12 Months          
                                          £000's         £000's  
                                                                   
Turnover                                                           
Continuing Operations                     14,284          15,065 
Discontinued Operations                    5,296           6,236 
Total Turnover                            19,580          21,301 
                                                                    
Operating(loss)/profit
Continuing Operations                     (1,664)            784 
Discontinued Operations                   (2,038)            (17) 
Total Operating (loss)/profit             (3,702)            767 
                                                                   
Profit on sale of fixed assets in              0              29 
  continuing operations
Reorganisation costs and losses           (1,043)              0 
Losses on sale of                           (545)              0 
  discontinued operations
                                                                   
Net Interest                                (527)           (442) 
(payable)
                                                                   
(Loss)/profit on ordinary activities      (5,817)            354 
   before taxation
                                                                   
Taxation                                      34            (439) 
                                                                   
(Loss)/profit on ordinary                 (5,783)            (85) 
   activities after taxation
                                                                   
Finance costs in respect of                    0            (144) 
   non equity interests
                                                                   
Retained (loss) in the                    (5,783)           (229) 
   period
                                                                   
                                                                   
                                                                  
(Loss)/earnings per share -                (4.17)p         (0.15)p 
   basic and diluted
                                                                
Adjusted (Loss)/earnings per share -       (3.73)p         (0.17)p 
   basic and diluted
                                                                   

Consolidated Balance Sheet as at 30                            
June 2000
                                          June 2000        Dec 1998     
                                          18 Months       12 Months
                                             £000's          £000's  
                                                                   
Tangible Fixed Assets                         1,222           3,402 
                                                                   
Stock                                           793           2,714 
Debtors                                       2,151           4,192 
Creditors                                    (4,476)         (4,363) 
                                                                   
Net bank borrowings                          (1,189)         (3,301) 
                                                                  
Deferred Taxation                                 0             (56) 

                                                                   
Net (liabilities)/assets                     (1,499)           2,588 
                                                                   
Shareholders funds                           (1,499)           2,588 
                                                                   
                                                                   

Reconciliation in Movements in Shareholders Funds

                                          June 2000        Dec 1998
                                          18 Months       12 Months
                                             £000's          £000's  
                                                                   
Loss for the financial period                (5,783)           (229) 
Other recognised gains                            5             144 
Net proceeds of share issues                  1,691               0 
Net movement                                 (4,087)            (85) 
                                                                   
Opening shareholders funds                    2,588           2,673 

Closing shareholders funds                   (1,499)          2,588 

                                                                   

Consolidated Cash Flow Statement for the Eighteen Months    
ended 30 June 2000
                                                                   
                                       June 2000      Dec 1998     
                                       18 Months     12 Months                
                                          £000's        £000's  
                                                                     
Operating Loss from Continuing Activities  (1,664)         (85) 
Depreciation and loss on revaluation       1,509           576 
Decrease in Stocks                         1,921           733 
Decrease/(Increase) in Debtors             2,041          (530) 
Increase/(Decrease) in Creditors             660        (1,219) 

                                                                     
Net Cash Inflow from Continuing            4,467            344 
   Operating Activities
                                                                   
Net Cash Outflow from                     (3,626)           (17) 
   Discontinued Activities
                                                                   
Net Cash Inflow from                         841            327 
   Operating Activities
                                                                   
Net Cash Outflow from Returns on Investments
    and Servicing of Finance                (527)          (442) 
                                                                   
Taxation                                      18              0 
                                                                   
Purchases of Tangible Fixed Assets          (132)          (273) 
Sales of Tangible Fixed Assets               803          1,211 
Net Cash Inflow from Capital Expenditure
   and Financial Investment                  671            938 
                                                                   
Issue of Shares                            2,768              0 
Expenses Paid in connection                (772)              0 
   with Share Issues
Purchase of Own Shares                     (300)              0 
Capital Element of Finance                 (101)            (86) 
   Lease Rentals
Repayment of Loan Notes                    (486)                  
                                                                   
Net Cash Inflow/(Outflow)                 1,109             (86) 
   from Financing
                                                                   
Increase in Cash                          2,112             737 
Cash Outflow from Financing                 486               0 
Cash Outflow from Finance Leases            101              86 
Movement in Net Debt                      2,699             823 
                                                                   
Net Debt at beginning of period          (3,892)         (4,715) 
                                                                   
Net Debt at end of period                (1,193)         (3,892) 


Notes                                                             
                                                                   
   1.    The financial information set out above does not constitute the    
         company's statutory accounts for the eighteen months ended 30 June 
         2000 nor the year ended 31 December 1998, but is derived from those 
         accounts.  Statutory accounts for December 1998 have been delivered 
         to the Registrar of Companies and those for June 2000 will be        
         delivered following the company's annual general meeting.  The 
         auditors have reported those accounts; their reports were unqualified
         and did not contain statements under s273(2) or (3) Companies Act  
         1985.
                                                                   
   2.   The loss per share is based on the loss after taxation
        (the retained loss) and the weighted average number of shares in issue
        throughout the period of 137,779,058. The total number of shares in   
        issue at the end of the period was 67,052,306 after taking account of 
        the rights issue, capital re-organisation and purchase of preference  
        shares as agreed at the Extraordinary General Meeting held on 27 March
        2000.
                                                                   
   3.   An adjusted loss per share calculation is shown to highlight the   
        effect of excluding exceptional items (the effects of the group 
        re-structuring and business closures) from the earnings per share  
        calculation.
                                                                   
   4.   During the period the company disposed of its interests in Foray      
        Control Systems Limited and Giltpack Packaging Limited and the 
        business of GEL (Rhayader) Limited.
        The Group losses include £489,303 lost by Foray Control Systems 
        Limited up to its date of disposal on 31 May 2000 and £227,561 lost by
        Giltpack Packaging limited up to its date of disposal on 21 December  
        1999.
        
        Net Assets disposed of :
        Tangible fixed assets                                129
        Stocks                                               296 
        Debtors                                              356 
        Cash at bank and in hand                              72 
        Creditors                                           (494) 
        Goodwill                                             (68) 
        Loss on disposal (before goodwill write back)       (204) 
        Net cash consideration                                87 
        The Group losses include £867,434 lost by GEL (Rhayader)Limited up to 
        the date the business was sold on 29 February 2000.
                                                                   
   5.   No dividend is proposed.
                                                                              
                            

Ross Group PLC                                                    
                                                                   
Registered       8th Floor, Hayes                               
office :         Gate House
                 27 Uxbridge Road
                 Hayes                                            
                 Middlesex UB4 0JN
Telephone :      [phone]
Fax :            020 8581 9154