Interim Results

Ross Group PLC 23 September 2004 Ross Group plc 23 September 2004 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2004 Chairman's statement The result of the group for the six months ended 30 June 2004 was a profit of £14,000 before tax (June 2003 loss £120,000). This result re-enforces the turnaround of the group's trading position following the profit of £57,000 declared for the year ended 31 December 2003. The turnover for the group decreased by £454,000 compared to the same period in the preceding year. This can be attributed to the sale of the Tadmod battery charger brands and the concentration by GEL Engineering Ltd (GEL) on projects with higher margins, but lower revenue. It is anticipated that the Group will return another modest profit for the current financial year. Business review The battery charger and adaptor brands of Tadmod Ltd were sold with an effective transfer date of 1 May 2004. The profit on the part disposal of the business undertaking of £7,000 has been reported in the Profit on Ordinary Activities for the half year. This company has been renamed Sansui Electronics (UK) Ltd which reflects the intention to sell consumer electronic products, bearing that brand name. GEL, which operates the group's engineering business, has generated the majority of the half-year profit. The company has recently been involved in producing a ground-based trainer for the US Air Force. GEL has also been awarded a prestigious contract to supply EADS Astrium with specialised temperature control enclosures for testing satellite communications. Business Outlook The Directors are actively investigating how new business areas may be introduced to the group and how current business initiatives can be expanded to generate additional income to boost turnover. The sales structure of GEL is being further strengthened to generate more growth in output for 2005 and to establish a trend of expansion through 2006 and beyond. The concentration on marketing activities in the first half of 2004 is expected to lead to an increase in order intake in the last quarter of the current year. Dividend No ordinary interim dividend is proposed after considering the result for the first half of the year, and the continuing deficiency on retained reserves (2003 - £Nil). A C C Ma Chairman 14 September 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT 6 Months 6 Months Year Ended Ended Ended 30 June 30 June 31 December 2004 2003 2003 £'000 £'000 £'000 Turnover Continuing Operations 1,209 1,663 2,855 Operating Profit/(Loss) Continuing Operations 102 (30) 105 Profit/(Loss) On Ordinary Activities Before Interest 102 (30) 105 Net Interest Payable (88) (90) (48) Profit/(Loss) On Ordinary Activities Before Taxation 14 (120) 57 Taxation 0 0 0 Profit/(Loss) On Ordinary Activities After Taxation 14 (120) 57 Retained Profit/Loss For The Period 14 (120) 57 Earnings Per Share 0.01p (0.07)p 0.04p Adjusted Earnings Per Share 0.01p (0.07)p 0.04p CONSOLIDATED BALANCE SHEET 30 June 30 June 31 December 2004 2003 2003 £'000 £'000 £'000 Tangible Fixed Assets 41 53 52 Stock 394 560 289 Debtors 396 577 546 Cash at Bank 84 0 106 Creditors (695) (2,357) (945) Short Term Borrowings (Group) (1,188) (1,335) (0) Total Assets less Current Liabilities (968) (2,502) 48 Long Term Borrowings (Group) (1,346) (0) (2,376) -------- -------- -------- Net Liabilities (2,314) (2,502) (2,328) ======== ======== ======== Shareholder's Funds Share Capital 11,136 11,136 11,136 Share Premium Account 2,317 2,317 2,317 Other Reserves 15,397 15,408 15,400 Profit and Loss Account (31,164) (31,363) (31,181) -------- -------- -------- (2,314) (2,502) (2,328) ======== ======== ======== CONSOLIDATED CASH FLOW STATEMENT 6 Months 6 Months Year Ended Ended Ended 30 June 30 June 31Dec. 2004 2003 2003 £'000 £'000 £'000 Net Cash Inflow/(Outflow) From Operating Activities (90) 75 (967) Servicing Of Finance Interest Received 0 0 0 Interest Paid (88) (90) (47) Finance Lease Interest Paid 0 0 (1) --------- --------- --------- (88) (90) (48) Taxation 0 0 0 Capital Expenditure And Financial Investment Purchase Of Fixed Assets 0 0 (11) Sale Of Tangible Assets 0 0 1 --------- --------- --------- 0 0 (10) Financing Cash Inflow from Issue of Share Capital 0 1,364 1,364 Cash Inflow/(Outflow) From Financing 158 (1,383) 2,371 Capital Element Of Finance Lease Rentals (2) (2) (3) --------- --------- --------- Net Cash Flow From Financing 156 (21) 3,732 --------- --------- --------- Increase In Cash Flow (22) (36) 2,707 ========= ========= ========= Notes to the accounts (1) The interim financial statements have been prepared on the basis of the accounting policies set out in the audited statutory accounts for the year ended 31 December 2003. The financial information contained in these statements for the six months ended 30 June 2004 and 30 June 2003 is unaudited and does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. (2) Net Cash Inflow 6 Months 6 Months Year Ended Ended Ended 30 June 2004 30 June 2003 31Dec. 2003 £'000 £'000 £'000 Operating Profit/(Loss) On Continuing Activities 102 (30) 105 Depreciation And Loss On Revaluation 11 7 22 Profit on Disposal of Fixed Assets 0 0 (1) Decrease/(Increase) In Stocks (105) 273 545 (Increase)/Decrease In Debtors 150 (217) (272) Increase/(Decrease) In Creditors (248) 42 (1,366) --------- --------- -------- Net Cash Inflow/(Outflow) From Operating Activities (90) 75 (967) ========= ========= ======== Notes to the accounts (continued) (3) No ordinary interim dividend is proposed (2003-£nil). (4) The comparative cash flow for the year ended 31 December 2003 has been extracted from the audited accounts. The cash flows for the six months ended 30 June 2004 and 30 June 2003 are unaudited. (5) Statement Of Recognised Gains and Losses 6 Months 6 Months Year Ended Ended Ended 30 June 2004 30 June 2003 31 Dec 2003 £'000 £'000 £'000 Share premium Account - Brought Forward 2,317 1,647 1,647 Movement 0 670 670 Carried Forward 2,317 2,317 2,317 Other Reserves - Brought Forward 15,400 15,406 15,406 (Depreciation) (3) (3) (6) Carried Forward 15,397 15,403 15,400 (6) Both the Long Term and Short Term borrowings are by way of formal agreements with the main shareholder, The Grande Group. (7) The Interim Report will be sent by mail to all registered shareholders and copies will be available from the Company's head office at Ross Group PLC, Brunel Road, Totton, Hampshire, SO40 3YS. A copy will also be posted on the Company's website www.ross-group.co.uk Ross Group plc Contact - T. Wilkinson, Deputy Managing Director Registered Office 35 Paul Street London EC2A 4UQ Tel. - 02380 675500 Fax - 02380 675555 Website - www.ross-group.co.uk Email - t.wilkinson@ross-group.co.uk This information is provided by RNS The company news service from the London Stock Exchange

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