Interim Results

Ross Group PLC
27 September 2005


Ross Group plc

27 September 2005

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2005


Chairman's statement

The result for the Group for the six months ended 30 June 2005 was an operating
loss of £336,000 before tax (June 2004 profit £96,000). This result is extremely
disappointing following the upturn in the group's profitability in 2003 and
2004.

The substantial reduction in the level of output was due to delays in the award
of some large contracts that the company, GEL Engineering Ltd (GEL) was
expecting. These potential orders have only been delayed and not lost, so the
main shareholder has continued to back the Group as they consider the chance for
a return to profitability is substantially increased in 2006.

Business review

GEL, has suffered a significant downturn in orders during the period under
review and this has led to the strengthening of the sales team and a change of
management. One highlight of the first half of 2005 was the receipt of three
test rig orders from prime contractors in the aerospace industry. These were the
first orders of this type for sometime and were a direct result of the changes
in the sales team. The company is committed to satisfying these orders and
securing repeat business. A reduction in demand for containerised solutions for
the MOD has seen this side of the business struggle for orders. The Company is
looking to expand its activities in the supply of fully integrated modular
solutions and physical training mock-ups.

A business plan has been implemented for GEL following the change of Managing
Director which should help increase the level of business by directing the
company towards expanding and profitable markets. The Company now has a
significant amount of bids out with its customers for decisions in late 2005 and
throughout 2006. Some small orders have been secured recently which will improve
the second half of the year and an export vehicle order is expected shortly. A
large repeat order for a Hercules Loadmaster Training Simulator is under
negotiation and is expected around the end of this year. Whilst the current
trading indicates that 2005 will probably not show a profit, 2006 should see the
group back in the black.

Business Outlook

The Directors have more than one option available to them to supplement the
current business activity and thus strengthen the Group. These opportunities are
being assessed and progress is being made towards potential significant changes
in the structure and operation of the Group.

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 (2004
- £Nil).


A C C Ma

Chairman
22 September 2005





GROUP INCOME STATEMENT UNAUDITED
                                      6 Months        6 Months           Year
                                        Ended          Ended             Ended
                                       30 June        30 June        31 December
                                         2005           2004              2004
                                        £'000          £'000             £'000
Revenue
Continuing Operations                     255           1124              2362
Discontinued Operations                     0             85                85

Operating (Loss)/Profit
Continuing Operations                    (336)            96               237 
Discontinued Operations                     0              6                 6

(Loss)/Profit Before Finance Cost        (336)           102               243

Finance Cost                             (129)           (88)             (228)

(Loss)/Profit Before Taxation            (465)            14                15

Taxation                                    0              0                 0

(Loss)/Profit For The Period             (465)            14                15

Earnings Per Share                       (0.3p)         0.01p             0.01p
Adjusted Earnings Per Share              (0.3p)         0.01p             0.01p

GROUP BALANCE SHEET UNAUDITED
                                       30 June       30 June         31 December
                                         2005          2004               2004
                                        £'000         £'000              £'000

Non Current Assets                         35            41                 45

Current Assets
Inventories                               199           394                382
Trade and Other Receivables               556           396                752
Cash and Cash Equivalents                  11            84                 12
                                       --------      --------           --------
                                          766           874               1146
                                       --------      --------           --------

Current Liabilities
Trade and Other Payables                 (659)         (695)              (834)
Financial Liabilities
- Short Term Borrowings (Group)          (550)       (1,188)              (300)
                                       --------      --------           --------
                                       (1,209)       (1,883)            (1,134)
                                       --------      --------           --------

Net Current Assets/(Liabilities)         (443)        (1009)                12

Non-Current Liabilities
Financial Liabilities
- Long Term Borrowings (Group)         (2,374)       (1,346)            (2,374)
                                       --------      --------           --------
Net Liabilities                        (2,782)       (2,314)            (2,317)
                                       ========      ========           ========

Equity
Share Capital                          11,136        11,136             11,136
Share Premium Account                   2,317         2,317              2,317
Other Reserves                         15,391        15,397             15,394
Retained Earnings                     (31,626)      (31,164)           (31,164)
                                       --------      --------           --------
Total Equity                           (2,782)       (2,314)            (2,317)
                                       ========      ========           ========



GROUP CASH FLOW STATEMENT UNAUDITED

                                          6 Months      6 Months        Year
                                           Ended         Ended          Ended
                                        30 June 2005  30 June 2004  31Dec. 2004

                                            £'000         £'000         £'000
Cash Flows From Operating
Activities
Cash Generated From Operating
Activities                                   (120)          (90)         (147)
Interest Paid                                (129)          (88)         (228)
Taxation                                        0             0             0
                                          ---------     ---------     ---------
Net Cash From Operating Activities           (249)         (178)         (375)

Cash Flows From Investing
Activities
Purchase Of Plant and Machinery                (2)            0           (17)
                                          ---------     ---------     ---------
Net Cash Used In Investing
Activities                                     (2)            0           (17)

Cash Flows From Financing
Activities
Net Increase In Borrowings                    250           158           300
Repayment of Obligations Under
Finance Leases                                  0            (2)           (2)
                                          ---------     ---------     ---------
Net Cash Flow From Financing
Activities                                    250           156           298
                                          ---------     ---------     ---------
Net (Decrease) In Cash And Cash
Equivalents                                    (1)          (22)          (94)
                                          =========     =========     =========

Notes to the Interim Report

(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 2004.
The financial information contained in these statements for the six months ended
30 June 2005 and 30 June 2004 is unaudited and does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985.
(2)      Reconciliation of Operating Profit to Cash Generated From Operations
                                         6 Months       6 Months        Year
                                          Ended          Ended          Ended
                                       30 June 2005   30 June 2004   31Dec. 2004
                                           £'000          £'000         £'000
Operating (Loss)/Profit On
Continuing Activities                       (336)            96           237
Operating Profit On Discontinued
Activities                                     0              6             6
Depreciation And Amortisation                 12             11            24
Decrease/(Increase) In Inventories           183           (105)          (93)
Decrease/(Increase) In Trade And
Other Receivables                            196            150          (206)
(Decrease) In Trade And Other
Payables                                    (175)          (248)         (115)
                                         ---------      ---------      --------

Cash Generated From Operations              (120)           (90)         (147)
                                         =========      =========      ========

(3)       No ordinary interim dividend is proposed for 2005 (2004-£nil).

Notes to the Interim Report (Continued)
(4)       The comparative cash flow for the year ended 31 December 2004 has been
extracted from the audited accounts. The cash flows for the six months ended 30
June 2005 and 30 June 2004 are unaudited.
(5)       Reconciliation of Movements In Equity
                                         6 Months        6 Months         Year
                                          Ended           Ended           Ended
                                     30 June 2005    30 June 2004    31 Dec 2004
                                           £'000           £'000         £'000
Share premium Account - Brought
Forward                                    2,317           2,317         2,317
Movement                                       0               0             0
Carried Forward                            2,317           2,317         2,317

Other Reserves - Brought Forward          15,394          15,400        15,400
(Depreciation)                                (3)             (3)           (6)
Carried Forward                           15,391          15,397        15,394

Retained Earnings - Brought
Forward                                  (31,164)        (31,181)      (31,181)
(Loss)/Profit for Period                    (465)             14            15
(Loss) on Translation of
Subsidiary                                     0               0            (4)
Transfer from Revaluation Reserve              3               3             6
Carried Forward                          (31,626)        (31,164)      (31,164)

(6)       Both the Long Term and Short Term borrowings are by way of formal
agreements with the main shareholder, The Grande Group or its subsidiary
companies.
(7)       The Group has evaluated the effect of the requirement to report in
accordance with International Accounting Standards (IAS) and has concluded that
the change does not materially affect any item disclosed in these statements.
(8)       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 - P. Elliott, Executive Director
Registered Office                     Tel. - 02380 675500 Fax - 02380 675555
35 Paul Street                        Email - [e-mail]
London EC2A 4UQ                       Website - www.ross-group.co.uk



                      This information is provided by RNS
            The company news service from the London Stock Exchange