Half Yearly Report

RNS Number : 2106L

Ross Group PLC

31 August 2012

 

Ross Group Plc Half Yearly Financial Report  30th June 2012

HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2012 Financial Summary (6 months to  30 June 2012) 2012 2011    £'000   £'000   Change Group Revenue 112 100      12% Gross Profit/(Loss) 11  28 -61% Profit/(Loss) before tax 11  28   -61%    Basic earnings per share 0.01p  0.02p     -65% Diluted earnings per share 0.01p 0.02p -65% Chairman's Statement It is my pleasure to announce that Ross Group is able to report continued operational profitability,  and  -  after the loss we reported in the December results  (resulting from the prudent write-down of certain trading project investments) - we  can also report a return to net  profitability in our half year figures at the end of June. For the 6 months ending 30th 2012 Ross Group Plc made a modest but pleasing profit before tax of £11,000 (30th June 2011: £28,000).  During the three years that the current management team has been in control of Ross,  we have been working hard to create and/or evaluate a number of  new potential  strategic alliances and seek out new business opportunities. I am confident that we are now moving in the right direction to conclude a significant and profitable proposal to recommend to our shareholders. But during this extensive period of research, consideration and negotiation, we have always been mindful that the Group should trade profitably and generate sufficient cash flow to adequately fund the all of these activities,  as well as ensuring that the Group's financial obligations are met in a timely manner.  The Group's specialist supply-chain management services presently  meet that need, enabling it to  continue to prosper. I also feel it is strategically significant that during the  period, Ross Group was able to attract more investment by means of two share placings,  in April and June,  which raised in total  £165,000 and which has strengthened our working capital position. More importantly,  I am delighted to welcome our new shareholders, who are both very experienced entrepreneurs. I duly thank them for their personal investments and confidence in our corporate abilities. Business Outlook As I have had cause to repeatedly reference in my previous reports, these last three to four years have been a very difficult time for most, if not all, mature companies in business. Nevertheless, your Board remains satisfied that, under such previous and current market conditions, the Group has been performing as well as can be expected under the circumstances. The need to wait patiently and perform diligently to find the right opportunities and partnerships - whether large or small - which can provide profit without unnecessary risk, alliance with added value to shareholders and progress with great potential, are things that take time, effort and a "great deal" of endeavor.  I shall, along with our management team, continue to work towards concluding an appropriate strategic alliance and/or investment transaction in order to take the Group forward as prospectively and profitably as possible.  Your Board is confident that we shall be able to provide our shareholders with a suitable opportunity in the forthcoming future, with a view to significantly securing and building upon the Group's continued prosperity. 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 (2011 - £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. And, as ever, I would extend my sincere thanks to  our extraordinarily loyal, long-suffering, shareholders for their continued patience and understanding. Barry Richard Pettitt Chairman and Chief Executive Officer Approved 30 August 2012 CONDENSED CONSOLIDATED INCOME STATEMENT UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2012 2011 2011    £'000   £'000   £'000 Group Revenue Continuing Operations 112 100 100 Discontinuing Operations 0 0 0 Operating Profit / (Loss) Continuing Operations 11 29 (357) Discontinuing Operations 0    0 0 Profit  before Finance Cost 11 29 (357) Finance Cost (1) 16 Profit before Taxation 11 28 (341) Taxation 0 0 0 Profit for the Period 11 28 (341) Earnings per share (pence) 0.01 0.02 (0.23) Adjusted earnings per share (pence) 0.01 0.02 (0.23) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY UNAUDITED Share Capital Accumulated Losses Other Reserves Total £'000 £'000 £'000 £'000 Balance at 1 Jan 2011 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) Profit/(loss) for the period (369) (369) Total recognised income (369) (369) Balance at 31 Dec 2011 11,149 (35,534) 17,919 (6,466) Balance at 1 Jan 2012 11,149 (35,534) 17,919 (6,466) Profit for the period 11 11 Total recognised income 11 11 Issue of New Share Capital 15 150 165 Balance at 30 June 2012 11,164 (35,523) 18,069 (6,290) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2012 2011 2011 £'000 £'000 £'000 Non Current Assets 0 0 0 Current Assets Inventories 0 0 0 Trade and Other Receivables 192 424 62 Cash and Cash Equivalents 18 2 2 210 426 64 Total Assets 210 426 64 Equity and Liabilities Shareholders' Equity Share Capital 11,164 11,149 11,149 Share Premium Account  2,685  2,535  2,535 Other Reserves 15,384 15,384 15,384 Retained Earnings   (35,523)   (35,165)    (35,534) Total Equity (6,290) (6,097) (6,466) Non-Current Liabilities Long Term Borrowings (Group) 6,288 6,288 6,288 Current Liabilities Trade and Other Payables 212 235 242 Bank Overdraft and Loans 0 0 0 Total Liabilities 6,500 6,523 6,530 Total Equity and Liabilities 210 426 64 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2012 2011 2011    £'000   £'000   £'000 Net Cash From/(Used In) Operating Activities (149) (234) (234) Net Cash Used In Investing Activities 0 0 0 Cash Flows From Financing Activities         165        231 231 Net Increase/(Decrease) In Borrowings 0 0 0 Net Cash Flow Used In Financing Activities 165 231 231 Net Increase/(Decrease) In Cash and Cash Equivalents 16    (3) (3) Cash and Cash Equivalent at Beginning of Period 2 5 5 Cash and Cash Equivalent at End of Period 18 2 2 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 2011. The financial information contained in these statements for the six months ended 30 June 2012 and 30 June 2011 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 2012 2011 2011    £'000   £'000   £'000 Operating Profit/(Loss) On Continuing Activities 11 28 (341) Depreciation and Amortisation 0 0 0 Decrease/(Increase) In Inventories 0 0 0 Decrease/(Increase) In Trade and Other Receivables (130) (234) 128 Increase/(Decrease) In Trade and Other Payables (30) (28) (21) Net Cash Generated From Operations (149) (234) (234) (3)       No ordinary interim dividend is proposed for 2012 (2011 - £Nil). (4)       The comparative cash flow for the year ended 31 December 2011 has been extracted from the audited accounts. The cash flows for the six months ended 30 June 2012 and 30 June 2011 are unaudited. (5)       Reconciliation of Movements In Equity 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2012 2011 2011    £'000   £'000   £'000 Share Premium Account Brought Forward 2,535 2,317 2,317 Movement 150 218 218 Carried Forward 2,685 2,535 2,535 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   (35,534) (35,193) (35,193) Profit/(Loss) for the Period 11 28       (341) Carried Forward (35,523) (35,165) (35,534) (6)       The Group is supported by short term borrowings from its larger shareholders and supporters by way of formal agreements. At 30 June 2012 total borrowings from Keniworth Capital Ltd were £4,020,000 and £2,278,172 from the Group's supporters. Keniworth Capital Ltd holds 24% 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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