Interim Results

ROSS GROUP PLC
2 September 1999

                           ROSS GROUP PLC

        INTERIM RESULTS FOR THE 6 MONTHS ENDED 30TH JUNE 1999

                        CHAIRMAN'S STATEMENT

Introduction

The  Board  announced  on  10th August 1999  that  it  proposed  to  raise
approximately  £800,000  net of expenses by way  of  a  rights  issue.  As
explained  in the circular issued to shareholders at that time,  to  allow
the  rights issue to proceed it was also necessary to carry out a  capital
reorganisation. The Extraordinary General Meeting to consider  the  rights
issue  and  capital  reorganisation will take place on  3  September  1999
following  the  Company's  Annual  General  Meeting.  The  circular   also
indicated that the Group had suffered a significant loss in the half  year
ended 30th June 1999.

Results

The  half-year ended 30th June 1999 resulted in a pre-tax loss of £874,000
(1998:  pre-tax  profit  of £363,000). The turnover  for  the  period  was
£8,378,000  (1998: £10,838,000), a reduction of over 20% compared  to  the
same  period  last  year.  The Group's interest burden  has  continued  to
decline and was £148,000 (1998: £220,000).

Working Capital

The  majority of the Group's borrowing facilities are in the form of  bank
overdrafts and as is normal for this type of facility, their terms include
repayment on demand and regular reviews.   The next such review is due  on
31  December 1999. A condition of the present facility arrangements is the
successful completion of the current fund raising proposal. In  the  event
that  the  bank  facilities  are withdrawn,  the  Group  would  experience
difficulties in continuing to trade and the Directors would be required to
seek alternative sources of funding.

Group Strategy

The  proposed fund-raising will provide the Group with sufficient  working
capital  for  its  current  requirements.  It  is  currently  the  Group's
intention  to  invest  up  to  £200,000 of the  funds  raised  in  product
development and marketing. The investment in these two areas should result
in an improvement in the long-term prospects for the businesses within the
Group.

The  Directors are continuing to review ways of reducing the Group's  debt
and are optimistic that further reductions are possible over the coming 12
months.   The Board believes that any reduction in funding should  not  be
carried  out  at the expense of reducing the working capital available  to
the Group.


Outlook

The  difficult trading conditions experienced in the latter part  of  1998
have  continued  and worsened in the first half of 1999  and  the  interim
results  of  the  Group are substantially below those  in  the  comparable
period in 1998. However, the outlook for the second half is more promising
and  the Board expects the Group, subject to the completion of the  rights
issue,  to  enter  the new millennium in a stronger position  than  it  is
currently experiencing.


                                                               
                  UNAUDITED CONSOLIDATED PROFIT
                         AND LOSS ACCOUNT
                   FOR THE SIX MONTHS ENDED 30
                           JUNE 1999
                                                                  
                                                                  
                                       Six months ending      Year ending
                                             30 June          31 December
                                      
                                        1999      1998       1998
                                        £000      £000       £000
                                                                
Turnover                               8,378    10,838     21,301
                                                                
Operating (loss)/profit                (726)       554        767
                                                                
Profit on sale of properties (note 2)     0         29         29
                                                                
(Loss)/profit on ordinary activities   (726)       583        796
before interest
                                                                
Net interest (payable)                 (148)      (220)      (442)
                                                                
(Loss)/profit on ordinary activities   (874)       363        354
before taxation
                                                                
Taxation                                  0        (50)      (439)
                                                                
(Loss)/profit on ordinary activities   (874)       313        (85)
after taxation
                                                                
Finance costs in respect of non-        (72)       (72)      (144)
equity interests (note 5)
                                                                
Retained (Loss)/profit for the         (946)       241       (229)
period
                                                                
Earnings per share (note 3)          (0.64)p      0.16p     (0.15)p
                                                                
Adjusted earnings per share (note 4) (0.64)p      0.16p     (0.17)p
                                  
                                                                

UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 1999
                                                      
                      As at       As at          As at
                    30 June     30 June    31 December
                       1999        1998           1998
                                     as               
                               restated
                       £000        £000           £000
                                                      
Tangible fixed assets 3,153       3,513          3,402
                                                      
Stocks                2,415       3,111          2,714
Debtors               4,105       4,971          4,192
Creditors            (4,042)     (4,806)        (4,403)
                                                      
Net bank borrowings  (3,901)     (3,787)        (3,301)
                                                      
Deferred taxation       (16)        (16)           (16)
                                                      
Net assets            1,714       2,986          2,588
                                                      
                                                      
Shareholders' funds   1,714       2,986          2,588
                                                      


Notes

1.   The results for the year ended 31 December 1998 are extracts from the
     published accounts.  The statutory accounts for the year ended 31        
     December 1998, which have been delivered to the Registrar of Companies,  
     carry an unqualified report by the auditors, and do not contain a        
     statement under Section 237(2) or Section 237(3) of the Companies Act    
     1985.

2.   The  profit on the sale of properties is the net surplus on the  sale
     of the two properties at Worcester and Bolton.

3.   Earnings  per share is based on the loss after taxation  and  finance
     costs in respect of  non-equity interests of £946,000 and the weighted
     average number of shares in issue of 147,745,278.

4.   An adjusted earnings per share has been shown to highlight the effect
     of excluding the profit on disposal of properties from the earnings per
     share calculation.

5.   No  ordinary interim dividend is proposed; (1998 - £nil).  An  amount
     equivalent to the preference dividend for the first half of 1999 has been
     accrued as finance costs in respect of non-equity interests but remains
     unpaid.  The arrears of preference dividend amount to £649,000 at 30 June
     1999 (1998 - £505,000).  In accordance with Financial Reporting Standard 
     4 - Capital Instruments, the amounts attributable to preference          
     shareholders are shown as an appropriation in the profit and loss account
     but are then added back to the profit and loss account within reserves.  
     These amounts are treated as being attributable to non-equity interests. 
     The 30 June 1998 balance sheet has been restated accordingly.

6.   The   interim  report  will  be  sent  by  mail  to  all   registered
     shareholders and copies will be available from the Company's offices.



Giltpack Building
Nutsey Lane
Totton
Southampton
SO40 3ZY

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