Interim Results

Ross Group PLC
27 September 2002

Ross Group PLC

26 September 2002

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2002

Chairman's statement

The result of the group for the six months ended 30 June 2002 was a loss of
£382,000 before tax, largely due to the fact that the profitability of the
trading divisions is not yet sufficient to finance head office expenses and
interest charges.

Nevertheless top management continues its policy of cutting unnecessary overhead
expenses and controlling more efficiently the operating expenses of the trading
companies, in order to restore the profitability of the Ross group as quickly as
possible.

The turnover of the group for the same period shows a decline compared to the
period ended 31 December 2001. This further decline was the result of a delay in
both expected orders and finalisation of new contracts during the period.

Business review

During the last months thanks to an aggressive commercial policy, Ross Group has
been able to enlarge the Group's client base, which should provide more
opportunity to develop new business. This policy has already met with some
success. GEL Engineering has become one of the preferred suppliers to some
important aircraft manufacturers and defence contractors. On the other hand
Tadmod, the distributor of battery chargers and electrical adaptors, has been
able to deal again with customers lost during previous years and to develop new
markets both in the UK and the EU.

Business Outlook

Top management is quite confident after considering the current prospects, that
the situation of the group will improve during the second half of 2002.

Dividend

No ordinary interim dividend is proposed considering the result for the first
half of the year (2001 - £Nil).

Board changes

Paul Binney resigned on 26th May 2002.


A C C Ma
Chairman

26 September 2002


CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                             6 Months       6 Months       6 Months       12 Months
                                                             Ended          Ended          Ended          Ended
                                                             30 June        31 Dec         30 June        30 June
                                                             2002           2001           2001           2001
                                                             £'000          £'000          £'000          £'000
                                                             Unaudited      Audited        Unaudited      Audited
Turnover

Continuing Operations                                        1,213          1,936          2,080          4,827
Discontinued Operations                                      0              0              0              704
Total Turnover                                               1,213          1,936          2,080          5,531

Operating (Loss)/Profit

Continuing Operations                                        (250)          (187)          (330)          (87)
Discontinued Operations                                      0              0              8              (225)
Total Operating Loss                                         (250)          (187)          (322)          (312)

Profit/(Loss) On Sale/Termination of Discontinued Business   0              (40)           83             (465)
(s)

Loss On Ordinary Activities Before Interest                  (250)          (227)          (239)          (777)

Net Interest Payable                                         (132)          (145)          (228)          (318)

Loss On Ordinary Activities Before Taxation                  (382)          (372)          (467)          (1,095)

Taxation                                                     0              0              0              0

Loss On Ordinary Activities After Taxation                   (382)          (372)          (467)          (1,095)

Retained Loss For The Period                                 (382)          (372)          (467)          (1,095)

Loss Per Share                                               (0.57)p        (0.55)p        (0.70)p        (1.63)p

Adjusted Loss Per Share                                      (0.57)p        (0.50)p        (0.82)p        (0.94)p


CONSOLIDATED BALANCE SHEET
                                                                      30 June       31 December      30 June
                                                                      2002          2001             2001
                                                                      £'000         £'000            £'000
                                                                      Unaudited     Audited          Audited

Tangible Fixed Assets                                                 71            80               46

Stock                                                                 715           630              385

Debtors                                                               674           1,069            1,575

Creditors                                                             (2,231)       (2,112)          (1,892)

Net Borrowings                                                        (2,551)       (2,605)          (2,708)

Net Liabilities                                                       (3,322)       (2,938)          (2,594)

Shareholder's Funds

Share Capital                                                         10,444        10,444           10,444

Share Premium Account                                                 1,647         1,647            1,647

Other Reserves                                                        15,410        15,412           15,384

Profit and Loss Account                                               (30,823)      (30,441)         (30,069)

                                                                      (3,322)       (2,938)          (2,594)


CONSOLIDATED CASH FLOW STATEMENT
                                                                      6 Months     6 Months          6 Months
                                                                      Ended        Ended             Ended
                                                                      30 June      31 December       30 June
                                                                      2002         2001              2001
                                                                      £'000        £'000             £'000
                                                                      Unaudited    Audited           Unaudited

Net Cash Inflow/(outflow) From Operating Activities                   190          264               (1,115)

Servicing Of Finance

Interest Received                                                     0            5                 1

Interest Paid                                                         (132)        (150)             (231)

Finance Lease Interest Paid                                           0            0                 2

                                                                      (132)        (145)             (228)

Taxation                                                              0            0                 0

Capital Expenditure And Financial Investment

Purchase Of Fixed Assets                                              (4)          (21)              (16)

Sale Of Tangible Assets                                               0            5                 1,143


                                                                      (4)          (16)              1,127


Financing

Cash Inflow From Financing                                            0            0                 2,460

Capital Element Of Finance Lease Rentals                              0            0                 0


Net Cash Flow From Financing                                          0            0                 2,460

Increase In Cash Flow                                                 54           103               2,244



Notes to the accounts

 1. The interim financial statements have been prepared on the basis of the
    accounting policies set out in the audited statutory accounts for the six
    months ended 31 December 2001.

    The financial information contained in these statements for the six months
    ended 30 June 2002 and 30 June 2001 is unaudited and does not constitute
    statutory accounts as defined in section 240 of the Companies Act 1985.
    However it has been reviewed by the Group's auditors, Everett & Son, and
    their report is set out herewith.

    The financial information for the six months ended 31 December 2001 and year
    ended 30 June 2001 has been extracted from the statutory accounts for those
    periods which have been filed with the Registrar of Companies and carry an
    unqualified audit report.

 2. 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.

 3. No ordinary interim dividend is proposed (2001-£nil).

 4. Net Cash Inflow

    Operating Loss On Continuing Activities             (250)           (187)           (330)

    Depreciation And Loss On Revaluation                11              10              (59)

    (Increase)/Decrease In Stocks                       (85)            (245)           133

    Decrease In Debtors                                 395             506             402

    (Decrease)/Increase In Creditors                    119             220             (1266)

    Net Cash Inflow/(Outflow) From Continued Operating  190             304             (1,120)
    Activities

    Net Cash Inflow/(Outflow) In Respect Of             0               (40)            5

    Discontinued Activities And Termination Costs

    Net Cash Inflow/(Outflow) From Operating Activities 190             264             (1,115)

 5. The comparative cash flow for the six months ended 31 December 2001 has been
    extracted from the audited accounts. The cash flow for the six months ended
    30 June 2001 is unaudited.

 6. The Interim Report will be sent by mail to all registered shareholders and
    copies will be available from the Company's head office at Ross Group PLC,
    Brunel Road, Totton, Hampshire, SO403YS.

 7. Statement Of Recognised Gains and Losses

Share premium Account - Brought Forward             1,647           1,647           1,647

Movement                                            0               0               0

Carried Forward                                     1,647           1,647           1,647

Other Reserves - Brought Forward                    15,412          15,384          15,384

(Depreciation)/Revaluation                          (2)             28              0

Carried Forward                                     15,410          15,412          15,384

Ross Group PLC
Registered Office
35 Paul Street
London EC2A 4UQ               

Contact - Alain Eman, Deputy Managing Director
          Tel. No. - 02380 675500       Fax No. - 02380 675555


Independent review report

by Everett & Son to Ross Group PLC


Introduction

We have been instructed by the company to review the financial information set
out in these accounts and we have read the other information in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.


Directors responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors
have decided in preparing this interim report that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding audited accounts, except where they are to be
changed in the next annual accounts in which case any changes, and the reasons
for them, are disclosed.


Review work performed

We conducted our review having regard to the guidance contained in Bulletin 
1994/4: Review of interim financial information issued by the Auditing Practices
Board for use in the United Kingdom. A review consist principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.

A review is substantially less in scope than an audit performed in accordance
with Auditing Standards and therefore provides a lower level of assurance than
an audit. Accordingly we do not express an audit opinion on the financial
information.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2002.


Everett & Son
Chartered Accountants
35 Paul Street
London EC2A 4UQ
26 September 2002


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