Interim Results

Ross Group PLC
30 March 2001

                                ROSS GROUP PLC


                                INTERIM REPORT

                 For The Six Months Ended 31st December 2000

CHAIRMAN'S STATEMENT


Introduction


The Results for the period of Six Months to 31st December 2000 reflect the on
going restructuring of the Company and its business activities with the
reduction of unnecessary overheads and the closure of certain loss making
businesses.


The wholly owned Subsidiaries that continue to trade on an ongoing profitable
basis are in the United Kingdom, Tadmod Limited the distributor of
transformers and electrical adaptors and GEL Engineering Limited in
engineering design, project management and modular construction. Both
Companies traded during this period at profit. The Hong Kong wholly owned
subsidiary San Gain Industrial Company Limited manufacturing transformers and
electrical adaptors in China for Tadmod Limited traded at a loss and will be
closed down voluntarily by the Group. The interim Accounts of San Gain
Industrial Company Limited included in the results represents the realisation
value of San Gain Industrial Company Limited and the discontinuation of its
operations. Tadmod Limited will obtain continuous supply from third parties.




Results


The Six Months to 31st December 2000 resulted in a pre-tax loss of £628,000.
The Turnover on continuing operations for the period was £2.75 million (1999 :
£6.24 million). Within the Results is expenditure of £548,000 relating to
further restructuring and £233,000 relating to discontinued operations. The
Interim Results reflect the completion of the restructuring namely, the
closure of the Ross Autotronics Limited business of distribution of vehicle
security systems, the closure of GEL (Rhayader) Limited the manufacturer and
designer of gearbox and associated equipment and the disposal of both Foray
Control Systems Limited and Giltpack Packaging Limited.


No ordinary interim Dividend is proposed (1999-£'nil).


Current Trading And Prospects


As a result of the completion of the restructuring program the Directors are
optimistic about the Group's trading for the Six Months to 30th June 2001 with
the strategy of targeting higher margin business. The Board is now looking to
develop the Company for the future including utilisation of the Essex freehold
property that remains unsold. Any further expansion may require the raising of
future finance.


The Board is looking to appoint two additional Non-Executive Directors and
hopes to make an announcement in due course.


PAUL BINNEY

Managing Director

30th March 2001



UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 31
DECEMBER 2000
                                  6 Months    6 Months   18 Months      12
                                   Ended       Ended       Ended      Months
                                                                      Ended
                                    31st        31st     30th June     31st
                                  December    December               December
                                    2000        1999       2000        1999
                                   £'000       £'000       £'000      £'000
 Turnover
 Continuing Operations                2,747      6,242      14,284     13,709
 Discontinued Operations                704        511       5,296      1,422
 Total Turnover                       3,451      6,753      19,580     15,131
 Operating Profit/(Loss)
 Continuing Operations                  243    (1,703)     (1,664)    (2,147)
 Discontinued Operations (Note        (233)      (817)     (2,038)    (1,099)
 2)
 Total Operating (Loss)/Profit           10    (2,520)     (3,702)    (3,246)
 Loss On Sale/Termination Of          (548)      (343)     (1,588)      (343)
 Discontinued Business(s)
 (Loss)/Profit On Ordinary            (538)    (2,863)     (5,290)    (3,589)
 Activities Before Interest
 Net Interest (Payable)                (90)      (168)       (527)      (316)
 (Loss)/Profit On Ordinary            (628)    (3,031)     (5,817)    (3,905)
 Activities Before Taxation
 Taxation                                 0          0          34          0
 (Loss)/Profit On Ordinary            (628)    (3,031)     (5,783)    (3,905)
 Activities After Taxation
 Finance Costs In Respect Of              -         72           -          0
 Non-Equity Interest (Note 5)
 Retained (Loss)/Profit For The       (628)    (2,959)     (5,783)    (3,905)
 Period
 (Loss)/Earnings Per Share (Note     (0.93) p   (0.32) p    (4.17) p   (0.43) p
 3)
 Adjusted (Loss)/Earnings Per        (0.12) p   (0.29) p    (3.73) p   (0.39) p
 Share (Note 4)

UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 31ST DECEMBER 2000
                                         31st 30th June         31st
                                     December      2000     December
                                         2000                   1999
                                       £'000      £'000       £'000
 Tangible Fixed Assets                 1,028      1,222       2,357
 Stock                                   518        793       2,025
 Debtors                               1,977      2,151       2,963
 Creditors                           (3,158)    (4,476)     (4,309)
 Net Bank Borrowings                 (2,492)    (1,189)     (4,336)
 Deferred Taxation                         -          -        (17)
 Net (Liabilities)/Assets            (2,127)    (1,499)     (1,317)
 Shareholder's Funds                 (2,127)    (1,499)     (1,317)



UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31ST
DECEMBER 2000
                                                        (Note 7)      (Note 8)
                                      6 Months Ended 6 Months Ended  18 Months
                                                                       Ended
                                      31st December   31st December  30th June
                                           2000           1999          2000
                                          £'000          £'000         £'000
Net Cash Inflow From Operating              (1,209)           (579)         841
Activities (Note 6)
Returns On Investment And Servicing
Of Finance
Interest Received                                 0              10          32
Interest Paid                                  (88)           (178)       (536)
Finance Lease Interest Paid                     (2)             (6)        (23)
Net Cash Out Flow From Returns And             (90)           (174)       (527)
Servicing Of Finance
Taxation                                          0              18          18
Capital Expenditure And Financial                 0            (44)       (132)
Investment
Purchase Of Fixed Assets                          0             150         803
Sale Of Tangible Fixed Assets                     0             106         671
Financing
Issue Of Shares                                   0               0       2,768
Repayment Of Borrowings                           0               0       (486)
Purchase Of Own Shares                            0               0       (300)
Capital Element Of Finance Lease                (4)            (12)       (101)
Rentals
Expenses Paid In Connection With                  0               0       (772)
Share Issues
Net Cash Flow From Financing                    (4)            (12)       1,109
Increase/(Decrease) In Cash Flow            (1,303)           (641)       2,112

Notes


 1. The Results for the Six Months Ended 31st December 2000 are unaudited. The
    Statutory Accounts for the 18 Months to 30th June 2000, 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 loss on discontinued business relates to San Gain Industrial Company
    Limited.



 3. The total number of Shares in issue after completion of the Rights Issue,
    Capital Reorganisation and purchase of Preference Shares, as agreed at the
    Extraordinary General Meeting on 27th March 2000 was 67,052,306.



 4. An adjusted loss per Share has been shown to highlight the effect of
    excluding the Loss on sale/termination of discontinued business from the
    Earnings per Share calculation.



 5. No ordinary interim Dividend is proposed (1999-£nil).

(6)  Operating Profit/(Loss) On Continuing Activities      243   (1,847) (1,664)
Depreciation and loss on revaluation                       108       503    1509
Decrease In Stocks                                         275       503    1921
Decrease In Debtors                                        174       949   2,041
Increase/(Decrease) In Creditors                       (1,314)   (1,739)     660
Net Cash Outflow From Continued Operating                (514)   (1,631)   4,467
Activities
Net Cash Outflow In Respect Of                           (695)     1,052 (3,626)
Discontinued Activities And Termination
Costs
Net Cash Flow For Operating Activities                 (1,209)     (579)     841


 7. The comparative Cash Flow Statement for 6 months ended 31st December 1999
    has been prepared from the Management Accounts and is unaudited.


 8. The comparative Cash Flow Statement for the 18 months ended 30th June 2000
    has been extracted from the audited Accounts.


 9. The Interim Report will be sent by mail to all Registered Shareholders and
    copies will be available from the Company's Office.


Ross Group PLC


Registered Office

8th Floor Hayes Gate House

27 Uxbridge Road

Hayes

Middlesex UB4 0JN


Contact - Paul Binney Managing Director, Ross Group PLC


Tel No - 020 8581 9189

Fax No - 020 8581 9154