Final Results

Ross Group PLC
22 October 2001


                                ROSS GROUP PLC

      Preliminary announcement by Ross Group PLC of the Audited Results

                      For the year ended 30th June 2001



CHAIRMAN'S STATEMENT



RESULTS

The result of the group before tax for the year ended 30 June 2001 was a loss
of £1,095,000 (eighteen months ended 30th June 2000: loss £5,817,000). The
loss for this year was largely incurred as a result of further restructuring
which is now complete.

The group's total turnover for the period was £5,531,000, which shows a
decline when pro rated and compared to the previous eighteen month period.
This further decline was as a result of the completion of planned changes in
the group activities, which were commenced in the previous period, full
details of which are detailed elsewhere 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

Technical Services

The Board has decided to continue the business of GEL Engineering Limited. The
whole business has moved to new premises, substantially reduced the fixed
costs base and substituted this with variable and controllable costs whilst
controls over production and engineering efficiency continue to be monitored
and improved. The board obviously remains open to a possible disposal of GEL
Engineering Limited but only if a suitable purchaser and offer were to be
found.

Power

The San Gain factory in China has been closed and the business assets have
been transferred. This division, operating under the ''Tadmod'' name, will now
source both existing and compatible products competitively from all available
suppliers to enable it to seek a larger potential customer base throughout
Europe and to maximise the potential of it's Brands. A detailed business plan
covering the next three years has been prepared and approved by the board to
plan for, monitor and achieve these objectives.

Automotive electronics

During the year to 30 June 2001 the Division has been fully closed down. Legal
actions against a former Director of Ross Autotronics Limited for a 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 has been settled. The result of this is that the
company can now collect old debts outstanding on past sales as all warranty
claims have been guaranteed by Meta.



STRATEGY

The Board will continue to build and strengthen the Power business,
particularly in continental Europe, through the competitive sourcing of third
party and compatible products. The restructuring and relocation of the
Technical Services Division is now complete and the group will continue to
maximise high margin business contracts while rebuilding turnover to more
satisfactory and profitable levels.

Although the restructuring of the business has been completed the board
continues to reserve its decision to consider any suitable change in
direction. The board will continue to support the group's core business and
has negotiated adequate working capital finance to do so. At the same time the
directors remain open minded about new business ventures and directions which
may present themselves and which may provide suitable synergy with future
plans.

CURRENT TRADING AND PROSPECTS

Following the actions that have been taken to restructure the group its two
main operating businesses are now trading more efficiently and the directors
believe that this will continue to improve through future board actions. In
addition, management attention can be re-focussed on the longer term
objectives of the group to ensure the future expansion of the group.

The group retrenched its activity into higher margin businesses and has now
eliminated all 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 freehold property in Essex has now been sold and the proceeds realised
were materially close to the valuation previously placed on it by both the
directors and the group's bankers. One leasehold property at Droitwich remains
to be sold. A current offer is being considered.



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

19 October 2001



ROSS GROUP PLC

Preliminary announcement by Ross Group PLC of the Audited Results

for the Year Ended 30 June 2001


Consolidated Profit and loss Account for the Year ended 30 June 2001

                                                         June 2001   June 2000
                                                         12 Months   18 Months
                                                            £000's      £000's
Turnover
Continuing Operations                                        4,827      14,284
Discontinued Operations                                        704       5,296
Total Turnover                                               5,531      19,580

Operating (loss)/profit
Continuing Operations                                         (87)     (1,664)
Discontinued Operations                                      (225)     (2,038)
Total Operating (loss)/profit                                (312)     (3,702)

Reorganisation costs and losses                                  0     (1,043)
Losses on sale of discontinued operations                    (465)       (545)

Net Interest (payable)                                       (318)       (527)

(Loss)/profit on ordinary activities before taxation       (1,095)     (5,817)
Taxation                                                         0          34

(Loss)/profit on ordinary activities after taxation        (1,095)     (5,783)

Finance costs in respect of non equity interests                 0           0

Retained (loss) in the period                              (1,095)     (5,783)

(Loss)/earnings per share - basic and diluted              (1.63)p     (4.17)p

Adjusted (Loss)/earnings per share - basic and diluted     (1.41)p     (3.73)p




Consolidated Balance Sheet as at 30 June 2001
                                                           As At 30    As At 30
                                                          June 2001   June 2000
                                                             £000's      £000's

Tangible Fixed Assets                                            46       1,222

Stock                                                           385         793
Debtors                                                       1,575       2,151
Creditors                                                   (1,892)     (4,476)

Net bank borrowings                                         (2,708)     (1,189)

Deferred Taxation                                                 0           0

Net (liabilities)/assets                                    (2,594)     (1,499)

Shareholders funds                                          (2,594)     (1,499)


Reconciliation in Movements in Shareholders Funds

                                                           As At 30    As At 30
                                                          June 2001   June 2000
                                                             £000's      £000's

Loss for the financial period                               (1,095)     (5,783)
Other recognised gains                                            0           5
Net proceeds of share issues                                      0       1,691
Net movement                                                (1,095)     (4,087)

Opening shareholders funds                                  (1,499)       2,588

Closing shareholders funds                                  (2,594)     (1,499)



Consolidated Cash Flow Statement for the Year ended 30 June 2001

                                                        June 2001   June2000
                                                        12 Months  18 Months
                                                           £000's     £000's

Operating Loss from Continuing                               (87)    (1,664)
Activities
Depreciation and loss on                                       49      1,509
revaluation
Decrease in Stocks                                            408      1,921
Decrease/(Increase) in Debtors                                576      2,041
Increase/(Decrease) in Creditors                          (2,580)        660

Net Cash (Outflow)/Inflow from                            (1,634)      4,467

Continuing Operating Activities

Net Cash Outflow from                                       (690)    (3,626)

Discontinued Activities

Net Cash Outflow/Inflow from                              (2,324)        841

Operating Activities

Net Cash Outflow from Returns on
Investments and Servicing of Finance                        (318)       (527)

Taxation                                                        0         18

Purchases of Tangible Fixed                                  (16)      (132)
Assets
Sales of Tangible Fixed Assets                              1,143        803
Net Cash Inflow from Capital
Expenditure
and Financial Investment                                    1,127        671

Issue of Shares                                                 0      2,768
Expenses Paid in connection with                                0      (772)
Share Issues
Purchase of Own Shares                                          0      (300)
Capital Element of Finance Lease                              (4)      (101)
Rentals
Repayment of Loan Notes                                         0      (486)

Net Cash Inflow/(Outflow) from                                (4)      1,109
Financing

Increase in Cash                                          (1,519)      2,112
Cash Outflow from Financing                                     0        486
Cash Outflow from Finance Leases                                4        101
Movement in Net Debt                                      (1,515)      2,699

Net Debt at beginning of period                           (1,193)    (3,892)

Net Debt at end of period                                 (2,708)    (1,193)


Notes

1.     The financial information set out above does not constitute the
company's statutory accounts for the year ended 30 June 2001 nor for the
eighteen months ended 30 June2000, but is derived from those accounts.
Statutory accounts for June 2000 have been delivered to the Registrar of
Companies and those for June 2001 will be delivered following the company's
annual general meeting. The auditors have reported on 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 year the Group closed it's operations at San Gain Industrial
Company and the Group losses include £225,000 in respect of losses incurred by
that company up to the date of closure. The Group also terminated operations
at GEL (Rhayader) limited and the Group losses include £263,000 in respect of
this termination.

        In addition to the above the Group also incurred other exceptional
        losses which included further losses on the reorganisation of Tadmod
        Ltd of £167,000.


5.     No dividend is proposed.


Ross Group PLC

Registered office :

Unit 5, Wallbrook Business Centre,

Green Lane,

Hounslow,

Middlesex.

TW4 6NW



Telephone :     [phone]

Fax :           020 8538 2490