Ross Group PLC28 September 2007
2007-09-28 12:17:49
Ross Group PLC - Interim Results
RNS Number:7395E
Ross Group PLC
28 September 2007
Ross Group plc
Released 28 September 2007
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2007
Chairman's statement
The result for the Group for the six months ended 30 June 2007 was an operating
loss of 427,000 before tax (June 2006 loss 541,000). Whilst the result for the
half year is disappointing, we envisage that the second half of the year will be
profitable along with a good order book carried forward into 2008.
Business review
The engineering activities operated through GEL Engineering Ltd (GEL) have seen
a slower than expected start to 2007 partly due to delays caused by customer
changes and partly due to slower than expected order intake. The first half of
the year saw activities centre around 3 major projects, including a high
fidelity Hercules Loadmaster trainer and 2 export vehicle supply contracts for
North Africa (both of which are due to be completed before the end of the
financial year). GEL is also currently negotiating a repeat vehicle supply
contract for North Africa at a value of around 2.1m. All three of the current
contracts will contribute towards a rising output figure in Q3 & Q4 2007, with
the Hercules trainer also giving flows of gross margin during 2008 along with
the repeat vehicle supply contract. The improved opening order book and
significant ongoing prospects, especially with North Africa, is expected to
result in greatly improved turnover in 2008 compared to 2007.
Sansui Electronics (UK) Ltd (Sansui) has seen a small number of sales in the
half year under review. These are from stock of electronic consumer product
acquired from an associated company. It is intended for the company to make
further use of this relationship and grow the sales by expanding the range of
available products and increased market awareness.
The Directors continue to pursue the development of other opportunities for the
Group with a view to bringing new activities into the business profile and the
Directors are confident that a suitable package of potential opportunities will
be put together to allow the re-generation of the Group.
Business Outlook
The output derived from the recent sales orders will not be sufficient to turn
the half year loss into a full year profit. However the increase in value of the
sales order book and ongoing prospects carried into 2008 should, combined with
the activities of Sansui, push the Group back in to profit. This could be
enhanced further by the potential significant changes in the structure and
operation of the Group.
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 (2006
- Nil).
A C C Ma
Chairman
Approved 28 September 2007
GROUP INCOME STATEMENT UNAUDITED
6 Months 6 Months Year
Ended Ended Ended
30 June 30 June 31 December
2007 2006 2006
'000 '000 '000
Group Revenue
Continuing Operations 1,009 592 1,152
Operating (Loss)
Continuing Operations (199) (404) (531)
(Loss) Before Finance Cost (199) (404) (531)
Finance Cost (228) (137) (383)
(Loss) Before Taxation (427) (541) (914)
Taxation 0 0 0
(Loss) For The Period (427) (541) (914)
Earnings Per Share (pence) (0.31) (0.39) (0.67)
Adjusted Earnings Per Share (pence) (0.31) (0.39) (0.67)
GROUP BALANCE SHEET UNAUDITED
30 June 30 June 31 December
2007 2006 2006
'000 '000 '000
Non Current Assets 31 21 30
Current Assets
Inventories 691 388 11
Trade and Other Receivables 367 404 948
Cash and Cash Equivalents 29 99 12
-------- -------- --------
1,088 891 971
-------- -------- --------
Total Assets 1,118 912 1.001
-------- -------- --------
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 15,387 15,384
Retained Earnings (34,007) (33,203) (33,580)
-------- -------- --------
Total Equity (5,170) (4,363) (4,743)
Non-Current Liabilities
Long Term Borrowings (Group) 0 0 0
Current Liabilities
Trade and Other Payables 6,288 5,275 5,744
Bank Overdraft and Loans 0 0 0
-------- -------- --------
6,288 5,275 5,744
Total Liabilities 6,288 5,275 5,744
-------- -------- --------
Total Equity and Liabilities 1,118 912 1,001
-------- -------- --------
GROUP CASH FLOW STATEMENT UNAUDITED
6 Months 6 Months Year
Ended Ended Ended
30 June 2007 30 June 2006 31Dec. 2006
'000 '000 '000
Net Cash (Used in) Operating
Activities 25 96 28
Cash Flows From Investing Activities
Purchase Of Plant and Machinery (8) (1) (20)
--------- --------- ---------
Net Cash Used In Investing
Activities (8) (1) (20)
Cash Flows From Financing Activities
Net Increase In Borrowings 0 0 0
Repayment of Capital Element of
Finance Lease 0 0 0
--------- --------- ---------
Net Cash Flow Used In Financing
Activities 0 0 0
--------- --------- ---------
Net Increase/(Decrease) In Cash
And Cash Equivalents 17 95 8
Cash and Cash Equivalents at
beginning of Period 12 4 4
--------- --------- ---------
Cash and Cash Equivalents at end
of Period 29 99 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 2006.
The financial information contained in these statements for the six months ended
30 June 2007 and 30 June 2006 is unaudited and does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985.
(2) Reconciliation of Operating Loss to Net Cash Flows From Operating
Activities
6 Months 6 Months Year
Ended Ended Ended
30 June 2007 30 June 2006 31Dec. 2006
'000 '000 '000
Operating (Loss) On Continuing
Activities (199) (404) (761)
Depreciation And Amortisation 7 8 17
Decrease/(Increase) In Inventories (680) 256 634
Decrease/(Increase) In Trade And
Other Receivables 581 187 (127)
(Decrease) In Trade And Other
Payables 316 49 265
--------- --------- --------
Cash Generated From Operations 25 96 28
========= ========= ========
(3) No ordinary interim dividend is proposed for 2007 (2006-nil).
Notes to the Interim Report (Continued)
(4) The comparative cash flow for the year ended 31 December 2006 has been
extracted from the audited accounts. The cash flows for the six months ended 30
June 2007 and 30 June 2006 are unaudited.
(5) Reconciliation of Movements In Equity
6 Months 6 Months Year
Ended Ended Ended
30 June 2007 30 June 2006 31 Dec 2006
'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 15,388 15,388
(Depreciation) 0 (1) (4)
Carried Forward 15,384 15,387 15,384
Retained Earnings - Brought
Forward (33,580) (32,663) (32,663)
(Loss) for Period (427) (541) (914)
Profit on Translation of
Subsidiary 0 0 3
Transfer from Revaluation Reserve 0 1 4
Carried Forward (34,007) (33,203) (33,580)
(6) The Group is supported by short term borrowings from it's larger
shareholders by way of formal agreements. At 30 June 2007 total borrowings from
Keniworth Capital Ltd were 3,484k and 1,721k from The Grande Group and its
subsidiary companies. Keniworth Capital Ltd hold 29% of the issued ordinary
share capital and The Grande Holding Ltd has direct or indirect control of
41.4%..
(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 head office at Ross Group PLC,
Brunel Road, Totton, Hampshire, SO40 3YS. A downloadable copy will also be
posted on the Company's website www.ross-group.co.uk
Ross Group plc
Registered Office
35 Paul Street
London EC2A 4UQ
Contact - P.Neal, Financial Controller
Tel. - 02380 675500 Fax - 02380 675555
Email - p.neal@geleng.com
Website - www.ross-group.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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