Second Interim Report

Ross Group PLC
29 June 2000

                     ROSS GROUP PLC
                            
                  SECOND INTERIM REPORT
                            
        For the six months ended 31 December 1999

Chairman's Statement

Introduction

At  an  Extraordinary General Meeting of Ross  Group  PLC
(the   'Company')  held  on  the  27  March   2000,   the
shareholders voted in favour of a rights issue  to  raise
approximately £2.3 million net of expenses. As  explained
in the circular issued to shareholders in preparation for
that  meeting (the 'Circular'), to allow the rights issue
to  proceed, it was also necessary to carry out a capital
re-organisation  and  purchase of  the  Company's  issued
preference  shares. The Circular also  indicated  to  the
shareholders that the Company was expecting to  suffer  a
significant loss in the twelve months to 31 December 1999
of greater than £3.9 million.

Results

The  six months ended 31 December 1999 resulted in a pre-
tax  loss  of   £3.0  million  (1998:  pre-tax  loss   of
£9,000).  The  turnover for the period was  £6.8  million
(1998: £10.5 million). When combined with the results for
the  prior  six  months to 30 June  1999,  this  gives  a
cumulative  pre-tax loss of £3.9 million  (1998:  pre-tax
profit  of  £354,000). The turnover for the twelve  month
period to 31 December 1999 was £15.1 million (1998: £21.3
million),  a  reduction  of 29% compared  with  the  same
period last year. Within the results is a one off loss of
£225,000 resulting from the settlement of the outstanding
litigation  against Compact Orbital Gears (1989)  Limited
(a  subsidiary  of  the  Company)  as  indicated  in  the
Circular.

The  results  for  the  period include  a  provision  for
diminution of value of the Company property portfolio  of
£350,000. Of this amount, £248,000 had been allocated for
a  diminution  in  the value of the Company  property  at
Totton,   the  sale  of  which  was  announced   to   the
shareholders  on  23 March 2000. The total  consideration
from this sale was £600,000.

The  Company  announced on 22 December 1999 that  it  had
reached  agreement  on  the sale  of  Giltpack  Packaging
Limited,   a  subsidiary  of  the  Company.   A   further
announcement was made on 29 March 2000, that the  Company
had  sold the business of GEL (Rhayader) Limited, also  a
subsidiary  of  the  Company. The results  of  these  two
businesses have been included as discontinued operations.


Strategy and change of year end to 30 June

In  light  of  the  significant changes to  the  Company,
resulting from the disposal of some of the businesses and
assets  of  the  group and the completion of  the  rights
issue  and  capital  re-organisation,  the  Company   has
decided  to  change the accounting reference date  to  30
June.  This  change  of accounting date  will  allow  the
Company to report on the 18 month period to 30 June  2000
so  as  to  provide  to  the shareholders  more  accurate
information on:

  The effect on the balance sheet of the rights issue,
  capital re-organisation and preference share purchase.

  The effect on the balance sheet of the disposal and
  transfer  of some of the businesses and assets  of  the
  Company.

  Any  impairment  of  goodwill  resulting  from  the
  disposal and transfer of some of the businesses of  the
  Company.

  The  strategy  of the company as a  result  of  the
  completion of the above.

The   Company   is  continuing  to  review  its   current
operations and is currently discussing the possible  sale
of  Foray  Control Systems Limited, a subsidiary  of  the
Company.  A  further announcement will  be  made  in  due
course.

Outlook

As  a  result of the ongoing restructuring of the Company
during  the period to June, the Company expects  to  make
further  operating losses during this period. The Company
will  also  perform an impairment review of goodwill,  as
part   of   the  overall  assessment  of  the   financial
statements for the 18-month period to 30 June  2000.  The
Company   has   no  intention  of  reinstating   goodwill
previously written off as intangible assets as  permitted
by FRS10. However, such review may conclude that goodwill
previously  written off against reserves has suffered  an
impairment.  In  those circumstances, any  such  impaired
goodwill  will be required to be written off on the  face
of  the profit and loss account. Net assets would not  be
diminished  by  any such write off, as  a  transfer  from
reserves  would  be made, reflecting the  elimination  of
goodwill  previously charged against reserves. As  at  31
December  1998, cumulative goodwill of £18.1 million  had
been  eliminated against reserves, of which £16.2 million
had been eliminated against a special reserve (set up for
that  purpose)  and £1.8 million against the  profit  and
loss account.

Upon  the  completion of the restructuring,  the  Company
expects  to  be  in an improved position to  develop  the
Company for the future. The Company expects to now  issue
full  consolidated results for the eighteen months to  30
June 2000 during the month of September.




Paul Binney
Managing Director
28th June 2000


Unaudited Consolidated Profit And Loss Account For The Six Months Ended 31st
December 1999

                              6 mths          6 mths        12 mths  12 mths 
                              ended           ended         ended    ended
                              31st            31st          31st     31st   
                              December        December      December December
                              1999            1998          1999     1998
                              £000's          £000's        £000's   £000's

Turnover
Continuing Operations         6,242           9,153        13,709    18,108
Discontinued Operations         511           1,310         1,422     3,193
Total Turnover                6,753          10,463        15,131    21,301

Operating (loss)/profit
Continuing Operations        (1,703)            361        (2,147)      898
Discontinued Operations        (817)           (148)       (1,099)     (131)
Total Operating (loss)/profit(2,520)            213        (3,246)      767

(Loss)/profit on sale/
diminution of properties(note2)(343)              0          (343)       29

(Loss)/profit on ordinary 
activities before interest   (2,863)            213        (3,589)      796

Net interest (payable)         (168)           (222)         (316)     (442)

(Loss)/profit on ordinary 
activities before taxation   (3,031)             (9)       (3,905)      354

Taxation                          0            (389)            0      (439)

(Loss)/profit on ordinary 
activities after taxation    (3,031)           (398)       (3,905)      (85)

Finance costs in respect of 
non-equity interest (note 5)     72             (72)            0      (144)

Retained (loss)/profit for    
the period                   (2,959)           (470)       (3,905)     (229)

(Loss)/earnings per share    
(note 3)                      (0.32)p         (0.05)p       (0.43)p   (0.02)p

Adjusted (loss)/earnings per 
share (note 4)                (0.29)p         (0.05)p       (0.39)p   (0.03)p




Unaudited Consolidated Balance Sheet as at 31st December 1999


                                 31st December   31st  December
                                 1999            1998
                                 £000's          £000's

Tangible fixed assets            2,357           3,402

Stock                            2,025           2,714
Debtors                          2,963           4,192
Creditors                       (4,309)         (4,403)

Net bank borrowings             (4,336)         (3,301)

Deferred taxation                  (17)            (16)

Net (liabilities)/assets        (1,317)          2,588

Shareholder's funds             (1,317)          2,588

Notes

1. The  results for the year ended 31st December  1998
   are extracts from the published accounts. The statutory
   accounts for the year ended 31st 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 during 1998, is
   the  net surplus on the sale of the two properties  at
   Worcester and Bolton. The loss on properties during 1999,
   relates to a diminution in value of the properties  at
   Maldon and Totton and a small profit on the sale of the
   combined land at Hetton-Le-Hole.

3. Loss per share is based upon the loss after taxation
   and finance costs in respect of non-equity interest (the
   retained loss) and the weighted number of shares during
   the period of 147,745,278, after adjusting for the bonus
   element of the rights issue on 27 March 2000. 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
   27 March 2000, was 67,052,306.

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

5. No  ordinary interim dividend is proposed  (1998  -
   £nil). At the EGM on 27th March 2000, it was agreed that
   the company could purchase the entire issued preference
   share capital. Such purchase was completed during May of
   this year and the company has therefore not provided for
   any  preference dividend during 1999. Accordingly  the
   finance  cost of £72,000, as reported in  our  interim
   report for the six months ended 30 June 1999, has been
   reversed in this period to reflect this.

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



Ross Group PLC

Registered Office: 8th Floor, Hayes Gate House
                   27 Uxbridge Road
                   Hayes
                   Middx UB4 0JN

Telephone:         [phone]
Fax:               020 8581 9154