Half Yearly Report

RNS Number : 2800N

Ross Group PLC

30 August 2011

 



Ross Group Plc Half Yearly Financial Report  30th June 2011

HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2011 Financial Summary (6 months to  30 June 2011) 2011 2010    £'000   £'000   Change Group Revenue 100 65      54% Gross Profit/(Loss) 28 21 33% Profit/(Loss) before tax 28 21   33%    Basic earnings per share 0.02p  0.02p      25% Diluted earnings per share 0.02p 0.02p 25% Chairman's Statement It gives me great pleasure, as Chairman, to announce for the 6 months ending 30th 2011 that the Ross Group Plc has made a profit before tax of £28,000 (30th June 2010: £21,000).  This continues the profitable trend established since 2009 when the new management took over and, by comparison, it is a notable contrast to the Group's previous management's prior performance which had resulted in a full year loss of over  £ 1,000,000 in year ending 31st December 2008 I believe we have now demonstrated that the Group is in safe and steady hands.  We have been able to report profits in both 2009 and 2010 - whilst unspectacular perhaps - it is more than significant given the global economic turmoil of recent years and now, in addition to this, we have continued to produce a profitable result for the first half of 2011. During the last two years the Group has been actively seeking to explore new strategic business and acquisition opportunities within the consumer electronics, electrical and energy-related industries, whilst continuing to mind and maintain its existing business.  A great many projects have been carefully explored and most, if not all, of those have been rejected to date. However, as we contemplate the second half of 2011 and beyond, the Board is increasingly confident that perhaps one (or more) of these opportunities may be more actively pursued and hopefully concluded in the near future Business Outlook These last two or three years have been a difficult time for those in business. The Board is satisfied that, under these circumstances, the Group has performed well; reporting a consistent profitable trading record.  This has given management a measure of confidence in taking its time in approaching the task of trying to find a suitable strategic alliance and/or investor in order to take the Group forward with strength and certainty instead of simply embracing any semi-plausible deal put forth by prospective parties believing that the Group needs them. I am furthermore convinced that - in due course and after suitable deliberation - we will be able to offer our shareholders a worthwhile, profitable and exciting future, whilst securing the Group's continued prosperity and also enabling it to be able to take advantage of good asset-based business opportunities which are both undervalued and in need of a strong strategic partner. Dividend No ordinary interim dividend is proposed after considering the result for the first half of the year, and the existing deficiency of retained reserves (2010 - £Nil). I would very much like to thank the members of the Board of Directors, as well as our contractors, consultants and advisors for all their excellent support and hard work during this difficult, but ultimately rewarding, transitional stage of the Group's performance. Lastly, I would like to thank our extraordinarily loyal, long-suffering, shareholders for their continued patience and understanding. I sincerely hope that they will not have to wait too long before seeing a more dynamic development in the Group's future performance. Barry Richard Pettitt Chairman and Chief Executive Officer Approved 31 August 2011 CONDENSED CONSOLIDATED INCOME STATEMENT UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2011 2010 2010    £'000   £'000   £'000 Group Revenue Continuing Operations 100 65 113 Discontinuing Operations 0 0 0 Operating Profit / (Loss) Continuing Operations 29 27 127 Discontinuing Operations 0    0 0 Profit  before Finance Cost 29 27 127 Finance Cost (1) (6) (13) Profit before Taxation 28 21 114 Taxation 0 0 0 Profit for the Period 28 21 114 Earnings per share (pence) 0.02 0.02 0.08 Adjusted earnings per share (pence) 0.02 0.02 0.08 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY UNAUDITED Share Capital Accumulated Losses Other Reserves Total £'000 £'000 £'000 £'000 Balance at 1 Jan 2010 11,136 (35,307) 17,701 (6,470) Profit for the period 21 21 Total recognised income 21 21 Balance at 30 June 2010 11,136 (35,286) 17,701 (6,449) Balance at 1 July 2010 11,136 (35,286) 17,701 (6,449) Profit for the period 93 93 Total recognised income 93 93 Balance at 31 Dec 2010 11,136 (35,193) 17,701 (6,356) Balance at 1 Jan 2010 11,136 (35,193) 17,701 (6,356) Profit for the period 28 28 Total recognised income 28 28 Issue of New Share Capital 13 218 231 Balance at 30 June 2011 11,149 (35,165) 17,919 (6,097) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2011 2010 2010 £'000 £'000 £'000 Non Current Assets 0 0 0 Current Assets Inventories 0 0 0 Trade and Other Receivables 424 166 190 Cash and Cash Equivalents 2 78 5 426 244 195 Total Assets 426 244 195 Equity and Liabilities Shareholders' Equity Share Capital 11,149 11,136 11,136 Share Premium Account  2,535  2,317  2,317 Other Reserves 15,384 15,384 15,384 Retained Earnings   (35,165)   (35,286)    (35,193) Total Equity (6,097) (6,449) (6,356) Non-Current Liabilities Long Term Borrowings (Group) 6,288 6,288 6,288 Current Liabilities Trade and Other Payables 235 405 263 Bank Overdraft and Loans 0 0 0 Total Liabilities 6,523 6,693 6,551 Total Equity and Liabilities 426 244 195 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2011 2010 2010    £'000   £'000   £'000 Net Cash From/(Used In) Operating Activities (234) 66 (7) Net Cash Used In Investing Activities 0 0 0 Cash Flows From Financing Activities        231        0 0 Net Increase/(Decrease) In Borrowings 0 0 0 Net Cash Flow Used In Financing Activities 231 0 0 Net Increase/(Decrease) In Cash and Cash Equivalents (3)    66 (7) Cash and Cash Equivalent at Beginning of Period 5 12 12 Cash and Cash Equivalent at End of Period 2 78 5 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 2010. The financial information contained in these statements for the six months ended 30 June 2011 and 30 June 2010 is unaudited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. (2)      Reconciliation of Operating Profit to Net Cash Flows From Operating Activities 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2011 2010 2010    £'000   £'000   £'000 Operating Profit/(Loss) On Continuing Activities 28 21 114 Depreciation and Amortisation 0 0 0 Decrease/(Increase) In Inventories 0 0 0 Decrease/(Increase) In Trade and Other Receivables (234) 50 26 Increase/(Decrease) In Trade and Other Payables (28) (5) (147) Net Cash Generated From Operations (234) 66 (7) (3)       No ordinary interim dividend is proposed for 2011 (2010 - £Nil). (4)       The comparative cash flow for the year ended 31 December 2010 has been extracted from the audited accounts. The cash flows for the six months ended 30 June 2011 and 30 June 2010 are unaudited. (5)       Reconciliation of Movements In Equity 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2011 2010 2010    £'000   £'000   £'000 Share Premium Account Brought Forward 2,317 2,317 2,317 Movement 218 0 0 Carried Forward 2,535 2,317 2,317 Other Reserves Brought Forward 15,384 15,384 15,384 Movement 0 0 0 Carried Forward 15,384    15,384 15,384 Retained Earnings Brought Forward (35,193) (35,307) (35,307) Profit/(Loss) for the Period 28 21       114 Carried Forward (35,165) (35,286) (35,193) (6)       The Group is supported by short term borrowings from its larger shareholders and supporters by way of formal agreements. At 30 June 2011 total borrowings from Keniworth Capital Ltd were £4,020,000 and £2,278,172 from the Group's supporters. Keniworth Capital Ltd holds 27% of the issued ordinary share capital. (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 Responsibility statement:     The Directors confirm that, to the best of their knowledge:- a)    the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting'; b)    the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and c)    the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein). On behalf of the Board B Pettitt                           Chief Executive Officer                         Ross Group plc Registered Office 35 Paul Street London EC2A 4UQ Contact - M Simon, Non Executive Director Tel. - 07561 091699 Email - [e-mail] Website - www.ross-group.co.uk

 

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