Preliminary Announcement

Ross Group PLC
26 April 2002



ROSS GROUP PLC

Preliminary announcement by Ross Group PLC ('the Company') of the Audited
Results for the Six Months ended 31 December 2001.




CHAIRMAN'S STATEMENT




ACCOUNTING PERIODS

As stated in the announcement dated 22 March 2002 the Company has changed its
accounting reference date from 30 June to 31 December. Accordingly the Company
is now making a preliminary announcement of the audited results for the six
month period ended 31st December 2001.

RESULTS


The result of the group before tax for the six months ended 31 December 2001 was
a loss of £372,000 (six months ended 31 December 2000: loss £628,000 and twelve
months ended 30 June 2001: loss £1,095,000). The loss for this period was
largely incurred as a result of head office overhead and interest charges not
covered by the trading divisions' profits.


The group's total turnover for the six months was £1,936,000 (six months ended
31 December 2000 £3,451,000 and twelve months ended 30 June 2001: £5,531,000)
which shows a decline when compared to the turnover for the previous periods.
This further decline was as a result of the completion of planned changes in the
group activities, which were commenced in the previous periods, details of which
are given in the full financial statements.


Because of the Balance Sheet position, the board is unable to recommend the
payment of a dividend. The board will continue to endeavour to return the
company to a dividend paying position as soon as is practicable.


DIVISIONS OF THE GROUP


Technical services


A new managing director has been appointed to implement the board approved
business plan and to build on the blue chip customer base in order to obtain
high value return on long term contracts with particular emphasis on margin and
cash flow. Resources will be strengthened and matched to individual contracts in
order to achieve these objectives.

The board remains open to a possible disposal of GEL Engineering Limited but
only if a suitable purchaser and offer were to be found.


Power


The board approved business plan is being implemented and monitored to achieve
the objectives of a larger customer base throughout Europe and maximise the
potential of its brands, whilst utilising third party supply from China.


Automotive electronics


Action is continuing on the recovery of old outstanding debts. Where necessary
legal action is being pursued where the net amount recoverable covers these
costs.



STRATEGY


The board has approved an annual business plan to build and strengthen the Power
business concentrating on increasing sales to targeted major customers,
particularly in continental Europe, through the competitive sourcing of third
party and compatible products. The Technical Services Division continues to
maximise high margin business contracts while rebuilding turnover to more
satisfactory and profitable levels. A new managing director has joined the
division and resources are being targeted at new business.


Although the restructuring of the business has been nearly completed the board
continues to reserve its decision to consider any suitable change in direction.
The board will continue to support and build on the group's core business and
has negotiated adequate working capital finance to do so. At the same time the
directors remain open minded about new business ventures and directions which
may present themselves and which may provide suitable synergy with future plans.

CURRENT TRADING AND PROSPECTS


The group's two main operating businesses continue to trade more efficiently and
the directors believe that this improvement will continue through the
implementation of the approved business plans. Management attention has been
re-focussed on longer term objectives to ensure the future expansion of the
group.


The group has reduced and eliminated all unnecessary head office overheads. Its
prospects are dependent on the future decisions as to its direction but the
directors are optimistic about the future potential of the group.

STAFF


I would like to take this opportunity to thank our Employees, Shareholders,
Bankers, Advisers, Suppliers and Customers for their continuing support.





A C C Ma

Chairman

26 April 2002





Consolidated Profit and loss Account for the Six Months ended 31 December 2001
                                                                   Audited       Unaudited        Audited
                                                                  Dec 2001        Dec 2000      June 2001
                                                                  6 Months        6 Months      12 Months
                                                                    £000's          £000's         £000's
Turnover
Continuing Operations                                                1,936           2,747          4,827
Discontinued Operations                                                  0             704            704
Total Turnover                                                       1,936           3,451          5,531
Operating (loss)/profit
Continuing Operations                                                (187)             243           (87)
Discontinued Operations                                                  0           (233)          (225)
Total Operating (loss)/profit                                        (187)              10          (312)
Reorganisation costs and losses                                          0               0              0
Losses on sale of discontinued operations                             (40)           (548)          (465)
Net Interest (payable)                                               (145)            (90)          (318)
(Loss)/profit on ordinary activities before taxation                 (372)           (628)        (1,095)
Taxation                                                                 0               0              0
(Loss)/profit on ordinary activities after taxation                  (372)           (628)        (1,095)
Finance costs in respect of non equity interests                         0               0              0
Retained (loss) in the period                                        (372)           (628)        (1,095)
(Loss)/earnings per share - basic and diluted                      (0.55)p         (0.93)p        (1.63)p
Adjusted (Loss)/earnings per share - basic and diluted             (0.50)p         (0.12)p        (0.94)p




Consolidated Balance Sheet as at 31 December 2001
                                                                    Audited       Unaudited       Audited
                                                                   As At 31        As At 31      As At 30
                                                                   Dec 2001        Dec 2000     June 2001
                                                                     £000's          £000's        £000's
Tangible Fixed Assets                                                    80           1,028            46
Stock                                                                   630             518           385
Debtors                                                               1,069           1,977         1,575
Creditors                                                           (2,112)         (3,158)       (1,892)
Net bank borrowings                                                 (2,605)         (2,492)       (2,708)
Deferred Taxation                                                         0               0             0
Net (liabilities)/assets                                            (2,938)         (2,127)       (2,594)
Shareholders funds                                                  (2,938)         (2,127)       (2,594)

Reconciliation in Movements in Shareholders Funds
                                                                Audited        Unaudited       Audited
                                                               As At 31        As At 31       As At 30
                                                               Dec 2001        Dec 2000      June 2001
                                                                 £000's          £000's         £000's
Loss for the financial period                                      (372)           (628)       (1,095)
Other recognised gains                                                28               0             0
Net movement                                                       (344)           (628)       (1,095)
Opening shareholders funds                                       (2,594)         (1,499)       (1,499)
Closing shareholders funds                                       (2,938)         (2,127)       (2,594)


Consolidated Cash Flow Statement for the Six Months ended 31 December 2001
                                                                          Audited      Unaudited        Audited
                                                                         Dec 2001       Dec 2000      June 2001
                                                                         6 Months       6 Months      12 Months
                                                                           £000's         £000's         £000's
Operating Loss from Continuing Activities                                   (187)            243           (87)
Depreciation and loss on revaluation                                           10            108             49
(Increase)/Decrease in Stocks                                               (245)            275            408
Decrease in Debtors                                                           506            174            576
Increase/(Decrease) in Creditors                                              220        (1,314)        (2,580)
Net Cash Inflow/(Outflow)from Continuing Operating Activities                 304          (514)        (1,634)
Net Cash Outflow from Discontinued Activities                                (40)          (695)          (690)
Net Cash Inflow/(Outflow) from Operating Activities                           264        (1,209)        (2,324)
Net Cash Outflow from Returns on Investments
and Servicing of Finance                                                    (145)           (90)          (318)
Taxation                                                                        0              0              0
Purchases of Tangible Fixed Assets                                           (21)              0           (16)
Sales of Tangible Fixed Assets                                                  5              0          1,143
Net Cash Inflow from Capital Expenditure
and Financial Investment                                                     (16)              0          1,127
Capital Element of Finance Lease Rentals                                        0            (4)            (4)
Net Cash Inflow/(Outflow) from Financing                                        0            (4)            (4)
Increase in Cash                                                              103        (1,303)        (1,519)
Cash Outflow from Finance Leases                                                0              4              4
Movement in Net Debt                                                          103        (1,299)        (1,515)
Net Debt at beginning of period                                           (2,708)        (1,193)        (1,193)
Net Debt at end of period                                                 (2,605)        (2,492)        (2,708)



Notes

 1. The financial information set out above does not constitute the company's
    statutory accounts for the six months ended 31 December 2001 nor for either
    of the comparative periods, but is derived from those accounts. Statutory
    accounts for the year to 30 June 2001 have been delivered to the Registrar
    of Companies and those for the six months to December 2001 will be delivered
    following the company's annual general meeting. The auditors have reported
    on those accounts; their reports were unqualified and did not contain
    statements under s273(2) or (3) Companies Act 1985.
 2. The total number of shares in issue at the end of the period was 67,052,306
    after taking account of the rights issue, capital re-organisation and
    purchase of preference shares as agreed at the Extraordinary General Meeting
    held on 27 March 2000.
 3. An adjusted loss per share calculation is shown to highlight the effect of
    excluding exceptional items (the effects of the group re-structuring and
    business closures) from the earnings per share calculation.
 4. No ordinary interim or final dividend is proposed.
 5. The company changed it's accounting reference date to 31 December from 30
    June and in consequence is reporting audited results for the six months from
    30 June 2001 to 31 December 2001.
 6. The comparative figures for the six months ended 31 December 2000 have been
    prepared from the management accounts and are unaudited.
 7. The comparative figures for the year to 30 June 2001 have been extracted from
    the Audited accounts.

Ross Group PLC

Registered office:          Unit 5, Wallbrook Business Centre,

               Green Lane,

               Hounslow,

               Middlesex

               TW4 6NW



Telephone :          [phone]

Fax :                020 8538 2490

Contact :            Alain Eman (Deputy Managing Director)




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