Half-year Report
15/09/2021 14:32
RNS Number : 9007L Ross Group PLC 15 September 2021
| Ross Group Plc Half Yearly Financial Report 30th June 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2021
It is once again my pleasure to report to you on both the business activities and the financial interim results of the Ross Group PLC ("Group") for the six month period ended 30th June 2021. Throughout the COVID pandemic period, the Group has continued diligently researching and exploring specific supply chain management strategic opportunities; primarily involving potential start-ups, mergers, acquisitions and/or business alliances. Our existing Chitin investment is progressing in accordance with the expectation of RGP-525 and whilst RGP-525 is continuing its research and development into mass production of Chitin, your Board is confident that this has the potential to become a worthy business in the future. In addition, the Group is still deploying our specialist supply chain management services on a project-by-project basis. Since becoming Chairman, I have always been mindful - even while our Board of Directors were constantly conducting such exploratory and research work - that our operating businesses and Premium Listing Company status should always be capable of generating sufficient profit and/or cashflow from its traditional specialist supply chain management services, in order to primarily cover running costs of the business on a potentially worst-case scenario and/or to be able to finance due diligences of potentially feasible opportunities. Also, especially given the continuation of COVID into this exceptionally unusual year, we have had to rightfully continue to incur such significant restructuring expenses - all of which are considered to be reasonable given our previous years of careful and conservative costings - which throughout this particular period, we are also pleased to announce that the Board has responded as best as possible through taking diligent and prudent measures accordingly. In this respect, our 2021 interim result of a £267,000 loss (2020: £830,000 loss) is considered both understandable and justifiable. As the Group is still undergoing a research, development and exploratory mode, there has subsequently been no income during this period. Costs and overhead have progressively decreased over 2020 - Largely due to the implementation, effect and relative success of our various restructuring strategies. We continue to be prudent and focused in our supply chain management and also our Board remains conservatively confident that we will be progressively focusing in on identifying and being able to put forward an appropriate specialist supply chain strategy and/or appropriate acquisition for due consideration and to hopefully be able to then recommend to our Shareholders at some stage in the foreseeable future. As a result, your Board has recently also decided to place an additional amount of equity equal to 6% of its existing shareholding as per the Announcement released on the London Stock Exchange's RNS website on 10th September 2021 which we believe will be able to better support detailed discussions and due diligences; especially in the second half of this year. The Board and myself are satisfied with the progress that we have made over this period in identifying, initiating, and implementing our emergency short-term strategic plans; including, but not limited to, the ongoing restructuring of the Group and, in particular, specific businesses, in order to be able to both maintain running an efficient supply chain management operation, while also being capable of capturing any considered appropriate opportunity; as and when or if it is presented. Regarding the consequential subject of Brexit, given the departure from the EU, the timing, terms and impact of the United Kingdom's exit are still somewhat difficult to evaluate; especially with the combined confluence and continuation of COVID. Regardless of the time scale, terms and conditions of the United Kingdom's exit from the European Union, the result with regard to the political and economic outlook of the United Kingdom and the European Union, has been largely not resulted in any major volatility on the exchange rate between the Pound Sterling ("£") and the Euro ("€") and more generally, between the £/Pound and other international currencies such as the US Dollar ("US$") Because the operating subsidiaries of RGP are presently based both in the United States and also outside of Europe, they are therefore predominately in a US$ currency environment and while this could lead to adverse consequences in terms of US$/£ exchange rates, our respective subsidiaries and/or joint ventures are not yet fully trading or selling products, and therefore we do not anticipate any material negative impact and do not intend to take specific measures to cover fluctuations of the currency market at this stage. At this time, I would like to particularly personally thank our Board of Directors, our specialist contractors, consultants and advisors, for all their excellent support, commitment and hard work in helping the Group towards achieving its aims. Also, as always, I would also like to personally thank our extraordinary loyal shareholders for their continued patience and understanding. We would like to wish all of them and everyone else the very best of health during these continuing difficult and dangerous COVID times. Sincerely,
(1) The financial information contained in these statements for the six months ended 30 June 2021 and 30 June 2020 is unaudited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. These statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK. 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 2020. (2) Reconciliation of Operating (Loss) / Profit to Net Cash Flows From Operating Activities
(4) The comparative cash flow for the year ended 31 December 2020 has been extracted from the audited accounts. The cash flows for the six months ended 30 June 2020 and 30 June 2021 are unaudited. (5) Reconciliation of Movements In Equity
(9) Current Liabilities
The loan notes are convertible into Ordinary shares of the parent entity in three years after the date of issue. The convertible loan debenture will give right to a percentage of the issued share capital of the parent company at the date of conversion. Each tranche of £1 million debenture owed by the long term holders correspond to 4.925% of the issued share capital at the date of conversion, resulting in a fixed percentage of the issued share capital of the company to be allotted to the loan holders regardless of the value / amount of the share capital of the company.
(12) On 10 September 2021 the company made an announcement to the London Stock Exchange confirming the issue of 13,126,051 shares equivalent to 6% of its existing shareholding at a fixed price of 2.8 pence per new ordinary share. (13) As no revenue has been generated throughout the group in this period and the amount in the prior year was minimal and was through the subsidiary Ross Diversified Trading Limited, the Chief Operating Decision Maker believes the information already disclosed in the interim financial statements is adequate to fulfill the requirements of IFRS8 segmental reporting. This will be reconsidered at the year end and in future periods as the group begins to trade. (14) The Interim Report will be sent by mail to all registered shareholders and copies will be available from the Company's registered office at 71-75 Shelton Street, London, WC2H 9JQ. 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 International Financial Reporting Standards (IFRS) and IAS 34 'Interim Financial Reporting'; b) the financial statements give a true and fair view of the assets, liabilities, financial position and loss of the company: c) 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 d) 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 71 - 75 Shelton Street London WC2H 9JQ Contact - M Simon, Non Executive Director Tel. - 07887 628152 Email - michael@simonsilvermyer.com Website - www.ross-group.co.uk | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||