Ross Announces Half Year Resu

RNS Number : 8660R

Ross Group PLC

31 August 2010

 

Ross Group Plc Half Yearly Financial Report

HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2010 Financial Summary (6 months to  30 June 2010) 2010 2009    £'000   £'000   Change Group Revenue 65 25     160% Gross Profit/(Loss) 21 (143) 115% Profit/(Loss) before tax 21 (143)   115%    Basic earnings per share 0.02p  (0.11p)    115% Diluted earnings per share 0.02p (0.11p) 115% Chairman's Statement It gives me great pleasure, as Chairman, to announce for the 6 months ending 30th 2010 that the Ross Group Plc has made a profit before tax of  £21,000 (30th June 2009:  loss of £143,000). This continues to mark a notable change in the Group's previous performances and historic results to date.  Now, for the first time in many years, the Group has made consecutive reported profits; (Year ended 31st December 2009: Profit £52,000 - Year ended 31 December 2008: Loss of £1,055,000) all of which duly reflects the new management's strategy, focus and intention to continue to restructure and resolve all pre-existing and outstanding issues, endeavour to eliminate previous management charges, expenses and exposures to prior liabilities, albeit while equally trying to achieve an efficient and effective operation at the lowest possible overhead. At the same time, the Group has been - and still is - specifically seeking to explore new core-business strategic and synergistic partnerships, alliances and acquisition opportunities within the consumer electronics, electrical and energy-related industries, while continuing to conduct its existing and any future business, wherever possible, on a pre-sold, pre-financed and  pre-determined fixed profit basis. The Group also anticipates concluding further business of this nature in various countries during the second half of 2010 and is already in detailed discussions with several suitable companies. Business Outlook Whilst the global economy is still continuing to endure a number of major challenges and continues to be depressed in many areas, your Board of Directors is confident that there are certain opportunities, within its core business competencies, that are worth exploring with a view to expanding the Group as a whole into a more orderly structured organisation in the near future. During this period of anticipated transition, it is considered that the Group will be able to continue to operate and gradually grow its own organic business in accordance with its current strategy of being risk adverse. This is to say, to forego large sales with little profits and/or lots of risks; in favour of other, better-suited, smaller service-related businesses that provide profitable income with little or limited risk. Dividend No ordinary interim dividend is proposed after considering the result for the first half of the year, and the continuing deficiency on retained reserves (2009 - £Nil). I would very much like to thank the recently elected Board of Directors, staff, contractors and consultants for all their excellent support and hard work in helping turn the Group into sustained profit.  I sincerely hope that, during the forthcoming period, the Group will be able to continue to build on its present success and perhaps provide more optimism to our extraordinarily loyal, long-suffering, shareholders who I would also like to personally thank for their patience and understanding. Barry Richard Pettitt Chairman and Chief Executive Officer Approved 31 August 2010 CONDENSED CONSOLIDATED INCOME STATEMENT UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2010 2009 2009    £'000   £'000   £'000 Group Revenue Continuing Operations 65 25 44 Discontinuing Operations 0 0 0 Operating Profit / (Loss) Continuing Operations 27 (143) 55 Discontinuing Operations 0    0 0 Profit / (Loss) before Finance Cost 27 (143) 55 Finance Cost (6) 0 (3) (Loss) before Taxation 21 (143) 52 Taxation 0 0 0 (Loss) for the Period 21 (143) 52 Earnings per share (pence) 0.02 (0.11) 0.04 Adjusted earnings per share (pence) 0.02 (0.11) 0.04 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY UNAUDITED Share Capital Accumulated Losses Other Reserves Total £'000 £'000 £'000 £'000 Balance at 1 Jan 2009 11,136 (35,359) 17,701 (6,522) Exchange Profit/(loss) on retranslation of subsidiary       819   819 (Loss) for the period (143) (143) Total recognised income 676 (143) Balance at 30 June 2009 11,136 (34,683) 17,701 (5,846) Balance at 1 July 2009 11,136 (34,683) 17,701 (5,846) Exchange Profit/(loss) on retranslation of subsidiary (819) (819) Profit for the period 195 195 Total recognised income (624) (624) Balance at 31 Dec 2009 11,136 (35,307) 17,701 (6,470) Balance at 1 Jan 2010 11,136 (35,307) 17,701 (6,470) (Loss) for the period 21 21 Total recognised income 21 21 Balance at 30 June 2010 11,136 (35,286) 17,701 (6,449) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2010 2009 2009 £'000 £'000 £'000 Non Current Assets 0 0 0 Current Assets Inventories 0 0 0 Trade and Other Receivables 166 388 216 Cash and Cash Equivalents 78 0 12 244 388 228 Total Assets 244 388 228 Equity and Liabilities Shareholders' Equity Share Capital 11,136 11,136 11,136 Share Premium Account  2,317  2,317  2,317 Other Reserves 15,384 15,384 15,384 Retained Earnings   (35,286)   (34,683)    (35,307) Total Equity (6,449) (5,846) (6,470) Non-Current Liabilities Long Term Borrowings (Group) 0 0 0 Current Liabilities Trade and Other Payables 6,693 6,233 6,698 Bank Overdraft and Loans 0 1 0 Total Liabilities 6,693 6,234 6,698 Total Equity and Liabilities 244 388 228 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS UNAUDITED 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2010 2009 2009    £'000   £'000   £'000 Net Cash From/(Used In) Operating Activities 66 194 (59) Net Cash Used In Investing Activities 0 0 0 Cash Flows From Financing Activities 66 Net Increase/(Decrease) In Borrowings (200) 0 Net Cash Flow Used In Financing Activities (200) 66 Net Increase/(Decrease) In Cash and Cash Equivalents 66    (6) 7 Cash and Cash Equivalent at Beginning of Period 12 5 5 Cash and Cash Equivalent at End of Period 78 (1) 12 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 2009. The financial information contained in these statements for the six months ended 30 June 2010 and 30 June 2009 is unaudited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. (2)      Reconciliation of Operating Loss to Net Cash Flows From Operating Activities 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2010 2009 2009    £'000   £'000   £'000 Operating Profit/(Loss) On Continuing Activities 21 (143) 52 Depreciation and Amortisation 0 0 0 Decrease/(Increase) In Inventories 0 0 0 Decrease/(Increase) In Trade and Other Receivables 50 (141) 31 Increase/(Decrease) In Trade and Other Payables (5) (341) (76) Profit on translation of Subsidiary 819 Net Cash Generated From Operations 66 194 7 (3)       No ordinary interim dividend is proposed for 2010 (2009 - £Nil). (4)       The comparative cash flow for the year ended 31 December 2009 has been extracted from the audited accounts. The cash flows for the six months ended 30 June 2010 and 30 June 2009 are unaudited. (5)       Reconciliation of Movements In Equity 6 months 6 months Year Ended ended 30 June ended 30 June 31 Dec 2010 2009 2009    £'000   £'000   £'000 Share Premium Account Brought Forward 2,317 2,317 2,317 Movement 0 0 0 Carried Forward 2,317 2,317 2,317 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 (35,307) (35,359) (35,339) Profit/(Loss) for the Period 21 (143)       52 Profit/(Loss) on Translation of Subsidiary 819 Carried Forward (35,286) (34,683) (35,307) (6)       The Group is supported by short term borrowings from its larger shareholders and supporters by way of formal agreements. At 30 June 2010 total borrowings from Keniworth Capital Ltd were £4,020,000 and £2,478,172 from the Group's supporters. Keniworth Capital Ltd holds 29% 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. - 020 7628 0857 Email - [e-mail] Website - www.ross-group.co.uk

 

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