Ross Group Plc Interim June 2

RNS Number : 3745C

Ross Group PLC

29 August 2008

 



Ross Interim Results

Ross Group plc Released 29 August 2008 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008 Chairman's statement The results for the Group for the six months ended 30 June 2008 was an operating loss of £262,000 before tax (June 2007 loss £427,000). The result for the half year is disappointing but the Directors considered that action had to be taken to stop the continuing drain on resources caused by GEL Engineering Ltd ('GEL'). Business review Whilst the engineering group, GEL had secured firm repeat orders for 2008, Ross Group could no longer continue to support this loss making operation. Additional funding required to meet new orders was not considered a viable return on investment in the short term and GEL went into administration on 23 April 2008. Sansui Electronics (UK) Ltd (Sansui) earned a small amount of income during the period under review. It is presently looking at license opportunities so as to expand its activities in consumer electronics. The Directors have been looking at a couple of opportunities for the Group with a view to bringing new activities into the business profile and the Directors are confident that a suitable package of potential opportunities will be put together to commence the re-generation of the Group towards the end of this year.  Business Outlook The outlook for the Group could be enhanced by the potential significant changes in the structure and operation of the Group going forward. 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 (2007 - £Nil). A C C Ma Chairman Approved 29 August 2008 GROUP INCOME STATEMENT UNAUDITED 6 months 6 months Year Ended ended 30 June  ended 30 June  31-Dec 2008 2007 2007   £'000   £'000   £'000 Group Revenue Continuing Operations 42 158 62 Discontinuing Operations 624 851 1,640 Operating Profit / (Loss) Continuing Operations 34 75 (76) Discontinuing Operations (31)   (274) (471) Profit / (Loss) before Finance Cost 3 (199) (547) Finance Cost (265) (228) (521) (Loss) before Taxation (262) (427) (1,068) Taxation 0 0 0 (Loss) for the Period (262) (427) (1,068) Earnings per share (pence) (0.19) (0.31) (0.78) Adjusted earnings per share (pence) (0.19) (0.31) (0.78) GROUP BALANCE SHEET UNAUDITED 6 months 6 months Year Ended ended 30 June  ended 30 June  31-Dec 2008 2007 2007 £'000 £'000 £'000 Non Current Assets 0 31 38 Current Assets Inventories 0 691 3 Trade and Other Receivables 252 367 671 Cash and Cash Equivalents 9 29 11 261 1087 685 Total Assets 261 1118 723 Equity and Liabilities Shareholders' Equity Share Capital 11,136 11,136 11,136 Share Premium Account  2,317  2,317  2,317 Other Reserves 15,384 15,384 15,384 Retained Earnings   (34,911)   (34,007)    (34,649) Total Equity (6,074) (5,170) (5,812) Non-Current Liabilities Long Term Borrowings (Group) 0 0 0 Current Liabilities Trade and Other Payables 6,128 6,288 6,335 Bank Overdraft and Loans 207 0 200 Total Liabilities 6,335 6,288 6,535 Total Equity and Liabilities 261 1118 723 GROUP CASH FLOW STATEMENT UNAUDITED 6 months 6 months Year Ended Ended Ended 31 Dec. 2007 30 June 2008 30 June 2007 £'000 £'000 £'000 Net Cash (Used in) Operating Activities 30 25 (193) Cash Flows From Investing Activities Purchase of Plant and Machinery 0 (8) (8) Net Cash Used In Investing 0 (8) (200) Activities Cash Flows From Financing Activities Net Increase In Borrowings (32) 0 200 Repayment of Capital Element of Finance Lease 0 0 0 Net Cash Flow Used In Financing Activities 0 0 200 Net Increase/ (Decrease) In Cash And Cash Equivalents (2) 17 8 Cash and Cash Equivalents at Beginning of Period 11 12 4 Cash and Cash Equivalents at end of Period 9 29 12 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 2007. The financial information contained in these statements for the six months ended 30 June 2008 and 30 June 2007 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 31 Dec. 2007 30 June 2008 30 June 2007 £'000 £'000 £'000 Operating (Loss) On Continuing -34 -199 (548) Activities Depreciation and Amortisation 0 7 0 Decrease / (Increase) In Inventories 3 -680 8 Decrease / (Increase) In Trade And 419 581 277 Other Receivables Increase / (Decrease) In Trade And Other  -358 316 591 Payables Interest Paid (521) 30 25 (193) (3) No ordinary interim dividend is proposed for 2008 (2007-£nil). (4) The comparative cash flow for the year ended 31 December 2007 has been extracted from the audited accounts. The cash flows for the six months ended 30 June 2008 and 30 June 2007 are unaudited. (5) Reconciliation of Movements In Equity 6 months 6 months Ended Ended Year Ended  30 June 2008 30 June 2007 31 Dec 2007 £'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 15,384 15,384 15,384 (Depreciation) 0 0 0 Carried Forward 15,384 15,384 15,384 Retained Earnings - Brought Forward (34,649) (33,580) (33,580) (Loss) For Period (262) (427) (1,068) Profit on Translation of Subsidiary 0 0 (1) Transfer From Revaluation Reserve 0 0 0 Carried Forward (34,911) 0 (34,007) 0 (34,649) (6) The Group is supported by short term borrowings from it's larger shareholders by way of formal agreements. At 30 June 2008 total borrowings from Keniworth Capital Ltd were £3,836k and £1,840k 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 41.4%. (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 registered office at Everett and Son, 35 Paul Street, London, EC2A 4UQ. 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 - M Simon, Non Executive Director Tel. - 020 7258 0011 Email - [e-mail] Website - www.ross-group.co.uk

 

END

 

 

IR BUGDIUUDGGIC