Interim Results

Ross Group PLC
25 September 2006


Ross Group plc


Released 25 September 2006


INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2006


Chairman's statement


The result for the Group for the six months ended 30 June 2006 was an operating
loss of £541,000 before tax (June 2005 loss £336,000). Whilst this result is
extremely disappointing there are encouraging signs of a potential recovery
which indicate that 2007 should see a much improved result.


Business review


The engineering activities operated through GEL Engineering Ltd (GEL) have seen
a slow start to 2006 as the company was waiting for some budgeted large orders
to be awarded. The first half of the year saw activities restricted to container
work and the completion of three test rigs which were technically challenging.
The company has received a subcontract award of 40% of a repeat order for a high
fidelity Hercules Loadmaster trainer. Full contract award (USD 2.4m) is expected
shortly. GEL is also close to being awarded an export vehicle supply contract
for North Africa, pending the issue of an export licence, worth around £830,000
for delivery in Q2 2007. These two contracts will contribute towards a rising
output figure in Q4 2006, but the major flow of gross margin from these projects
will be in 2007. The company is concentrating on raising the quality of sales
enquiries to target the effort in areas that will give maximum rewards.


Sansui Electronics (UK) Ltd (Sansui) has seen a small number of sales in the
half year under review. These are from stock of electronic consumer product
acquired from an associated company. It is intended for the company to make
further use of this relationship and grow the sales by expanding the range of
available products and increased market awareness. These products have been
displayed at the prestigious Berlin trade fair in September 2006.


The Directors continue to pursue the development of other opportunities for the
Group with a view to bringing new activities into the business profile. The
first serious proposal was rejected by the UKLA, but the Directors are confident
that a suitable package of potential opportunities will be put together to allow
the re-generation of the Group.


Business Outlook


The output derived from the recent sales orders will not be sufficient to turn
the half year loss into a full year profit. However the increase in value of the
sales order book carried into 2007 should, combined with the activities of
Sansui, push the Group back in to profit. This could be enhanced further by the
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 (2005
- £Nil).


A C C Ma

Chairman

Approved 21 September 2006

GROUP INCOME STATEMENT UNAUDITED
                                       6 Months     6 Months              Year
                                          Ended        Ended             Ended
                                        30 June      30 June       31 December
                                           2006         2005              2005
                                          £'000        £'000             £'000
Group Revenue
Continuing Operations                       592          255               581

Operating (Loss)
Continuing Operations                      (404)        (336)           (1,146)

(Loss) Before Finance Cost                 (404)        (336)           (1,146)

Finance Cost                               (137)        (129)             (362)

(Loss) Before Taxation                     (541)        (465)           (1,508)

Taxation                                      0            0                 0

(Loss) For The Period                      (541)        (465)           (1,508)

Earnings Per Share (pence)                (0.39)       (0.34)            (1.11)
Adjusted Earnings Per Share (pence)       (0.39)       (0.34)            (1.11)


GROUP BALANCE SHEET UNAUDITED
                                     30 June        30 June        31 December
                                        2006           2005               2005
                                       £'000          £'000              £'000

Non Current Assets                        21             35                 28

Current Assets
Inventories                              388            199                644
Trade and Other Receivables              404            556                591
Cash and Cash Equivalents                 99             11                  7
                                      --------       --------           --------
                                         891            766              1,242
                                      --------       --------           --------
Total Assets                             912            801              1,270
                                      --------       --------           --------

Equity and Liabilities
Shareholders' Equity
Share Capital                         11,136         11,136             11,136
Share Premium Account                  2,317          2,317              2,317
Other Reserves                        15,387         15,391             15,388
Retained Earnings                    (33,203)       (31,626)           (32,663)
                                      --------       --------           --------
Total Equity                          (4,363)        (2,782)            (3,822)

Non-Current Liabilities
Long Term Borrowings (Group)               0          2,374                  0

Current Liabilities
Trade and Other Payables               5,275            659              5,089
Bank Overdraft and Loans                   0            550                  3
                                      --------       --------           --------
                                       5,275          1,209              5,092

Total Liabilities                      5,275          3,583              5,092
                                      --------       --------           --------
Total Equity and Liabilities             912            801              1,270
                                      --------       --------           --------


GROUP CASH FLOW STATEMENT UNAUDITED
 
                                           6 Months      6 Months        Year
                                              Ended         Ended       Ended
                                       30 June 2006  30 June 2005 31Dec. 2005
                                              £'000         £'000       £'000
Net Cash (Used in) Operating
Activities                                      96          (249)           0

Cash Flows From Investing Activities
Purchase Of Plant and Machinery                 (1)           (2)          (6)
                                           ---------     ---------    ---------
Net Cash Used In Investing
Activities                                      (1)           (2)          (6)

Cash Flows From Financing Activities
Net Increase In Borrowings                       0           250            0
Repayment of Capital Element of
Finance Lease                                    0             0           (2)
                                           ---------     ---------    ---------
Net Cash Flow Used In Financing
Activities                                       0           250           (2)
                                           ---------     ---------    ---------
Net Increase/(Decrease) In Cash
And Cash Equivalents                            95            (1)          (8)

Cash and Cash Equivalents at
beginning of Period                              4            12           12
                                           ---------     ---------    ---------
Cash and Cash Equivalents at end
of Period                                       99            11            4
                                           =========     =========    =========


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 2005.

The financial information contained in these statements for the six months ended
30 June 2006 and 30 June 2005 is unaudited and does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985.

(2) Reconciliation of Operating Loss to Net Cash Flows From Operating Activities

                                        6 Months       6 Months          Year
                                           Ended          Ended         Ended
                                    30 June 2006   30 June 2005   31Dec. 2005
                                           £'000          £'000         £'000
Operating (Loss) On Continuing
Activities                                  (541)          (465)       (1,508)
Depreciation And Amortisation                  8             12            23
Decrease/(Increase) In Inventories           256            183          (262)
Decrease/(Increase) In Trade And
Other Receivables                            187            196           161
(Decrease) In Trade And Other
Payables                                     186           (175)        1,586
                                         ---------      ---------      --------

Cash Generated From Operations                96           (249)            0
                                         =========      =========      ========


(3)       No ordinary interim dividend is proposed for 2006 (2005-£nil).



Notes to the Interim Report (Continued)

(4) The comparative cash flow for the year ended 31 December 2005 has been
extracted from the audited accounts. The cash flows for the six months ended 30
June 2006 and 30 June 2005 are unaudited.

(5)       Reconciliation of Movements In Equity

                                       6 Months        6 Months           Year
                                          Ended           Ended          Ended
                                   30 June 2006    30 June 2005    31 Dec 2005
                                         £'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        15,388           15,394         15,394
(Depreciation)                              (1)              (3)            (6)
Carried Forward                         15,387           15,391         15,388

Retained Earnings - Brought
Forward                                (32,663)         (31,164)       (31,164)
(Loss) for Period                         (541)            (465)        (1,508)
Profit on Translation of
Subsidiary                                   0                0              3
Transfer from Revaluation Reserve            1                3              6
Carried Forward                        (33,203)         (31,626)       (32,663)


(6)  The Group is supported by short term borrowings from it's larger
shareholders by way of formal agreements. At 30 June 2006 total borrowings from
Keniworth Capital Ltd were £4,132k and £91k from The Grande Group and its
subsidiary companies. Keniworth Capital Ltd hold 29% of the issued ordinary
share capital and The Grande Holding Ltd has direct or indirect control of 43%.

(7)  These Statements are prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted for use in the EU.

(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 downloadable copy will also be
posted on the Company's website www.ross-group.co.uk

Ross Group plc

Registered Office

35 Paul Street

London EC2A 4UQ

Contact - P. Elliott, Executive Director

Tel. - 02380 675500 Fax - 02380 675555

Email - [e-mail]


Website - www.ross-group.co.uk


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