Ross Group PLC29 April 2008
2008-04-29 17:18:36
Ross Group PLC - Preliminary Announcement
RNS Number:3831T
Ross Group PLC
29 April 2008
ROSS GROUP PLC & SUBSIDIARIES
CHAIRMAN'S STATEMENT
for the Year Ended 31 December 2007
--------------------------------------------------
RESULTS
The Group result, before tax, for the year ended 31 December 2007 was a loss of
1,080,000 (Year ended 31 December 2006: loss 915,000). The reason for this and
action taken to improve the situation are as described below. The turnover
improved to 1,702,000 (2006 1,152,000) due to additional activity in both the
engineering sector and consumer electronics division.
DIVISIONS OF THE GROUP
The Group trades through its two UK operating subsidiaries which concentrate on
the following activities:-
- The design and manufacturing of engineering projects through
GEL Engineering Ltd.
- The distribution of consumer electronic branded products through
Sansui (UK) Ltd.
STRATEGY
Whilst the engineering group, GEL, have secured firm repeat orders for 2008,
Ross Group could no longer continue to support this loss making operation.
Additional funding required to meet new orders was not considered a viable
return on investment in the short term and GEL went into administration 23 April
2008.
Sansui Electronics (UK) Ltd continued to push branded goods in both trading and
sales agency activities. The flat panel LCD TV market was particularly
aggressive in 2007, with the over supply of products driving prices and margins
down. Sansui focus was therefore on Barbie branded consumer electronic products,
such as boom box and radios, sold into Europe and UK.
Sansui (UK) Ltd will continue to push for Emerson branded white goods into UK
multiples, and for brown goods to sell through QVC shopping channel, leveraging
the buying power of Emerson US.
The Group is currently researching a number of new activities in which to expand
in order to increase revenues and profitability.
The Board cannot recommend a payment of a dividend.
APPRECIATION
I would like to take this opportunity to thank our Employees, Shareholders,
Bankers, Advisers, Suppliers and Customers for their continuing support in a
challenging year.
A C C Ma
Chairman
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
for the Year Ended 31 December 2007
--------------------------------------------------
31.12.07 31.12.06
'000 '000
CONTINUING OPERATIONS
Revenue 1,702 1,152
Cost of sales (1,098) (805)
-------- ------
GROSS PROFIT/(LOSS) 604 347
Other operating income 0 2
Administrative expenses (1,163) (1,110)
Litigation settlement - 230
Finance costs (521) (383)
------- ------
LOSS BEFORE TAX (1,080) (914)
Tax - -
------ ---------
LOSS FOR THE YEAR (1,080) (914)
======= =====
Attributable to:
Equity holders of the parent (1,080) (914)
======= ======
Earnings per share expressed
in pence per share:
Basic -0.79 -0.67
Diluted -0.79 -0.67
======= ======
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2007
--------------------------------------------------
Share capital Retained earnings Other reserves Total equity
'000 '000 '000 '000
Balance at 1
January 2006 11,136 (32,662) 17,705 (3,821)
Reserve
transfer 4 (4)
Exchange
(loss) on
retranslation
of subsidiary (8) (8)
Profit for the
year (914) (914)
------- ------- ------- --------
Total recognised
income for 2006 (922) (922)
------- ------- ------- --------
Balance at 31
December 2006 11,136 (33,580) 17,701 (4,743)
======= ======= ======= ========
Balance at 1
January 2007 11,136 (33,580) 17,701 (4,743)
Reserve transfer - - -
Exchange gain
on retranslation
of subsidiary (1) (1)
(Loss) for the
year (1,080) (1,080)
------- ------- ------- --------
Total recognised
income for 2007 (1,081) (1,081)
------- ------- ------- --------
Balance at 31
December 2007 11,136 (34,661) 17,701 (5,824)
======= ======= ======= ========
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
31 December 2007
--------------------------------------------------
31.12.07 31.12.06
'000 '000
ASSETS
NON-CURRENT ASSETS
Property, plant
and equipment 25 30
Trade & Other
Receivables 11 11
------- ------
36 41
------- ------
CURRENT ASSETS
Inventories 3 11
Trade and other
receivables 660 937
Cash and cash
equivalents 11 12
------- ------
674 960
TOTAL ASSETS 710 1,001
======= ======
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Called up share
capital 11,136 11,136
Share premium 2,317 2,317
Revaluation
reserve - 4
Other reserves 15,384 15,384
Profit and loss
account (34,661) (33,581)
------- ------
Total
shareholders'
equity (5,824) (4,744)
------- ------
TOTAL EQUITY (5,824) (4,744)
CURRENT LIABILITIES
Trade and other
payables 6,334 5,745
Financial liabilities - borrowing
Interest bearing loans and borrowings 200 -
------- ------
6,534 5,745
------- ------
TOTAL
LIABILITIES 6,534 5,745
------- ------
TOTAL EQUITY AND
LIABILITIES 710 1,001
======= ======
ROSS GROUP PLC & SUBSIDIARIES
CASH FLOW STATEMENT
for the Year Ended 31 December 2007
--------------------------------------------------
31.12.07 31.12.06
Notes '000 '000
Cash flows from operating activities
Cash generated from operations 1 328 39
Interest paid (521) (2)
Finance costs - (9)
------ ------
Net cash from operating activities (193) 28
------ ------
Cash flows from investing activities
Purchase of tangible fixed assets (8) (20)
------ ------
Net cash from investing activities (8) (20)
------ ------
Cash flows from financing activities
New Loans in Year 200 -
------ ------
Net cash from financing activities 200 -
------ ------
------ ------
Increase/(Decrease) in cash and cash
equivalents (1) 8
Cash and cash equivalents at beginning
of year 2 12 4
------ ------
Cash and cash equivalents at end of
year 2 11 12
====== ======
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CASH FLOW STATEMENT
for the Year Ended 31 December 2007
--------------------------------------------------
1. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING
ACTIVITIES
31.12.07 31.12.06
'000 '000
Operating loss (1,080) (1,145)
Depreciation charges 13 17
Foreign exchange profit on consolidation - -
Foreign exchange loss on consolidation - (8)
Finance Costs 521 383
Decrease/(Increase) in inventories 8 634
(Increase)/Decrease in trade and other
receivables 277 (127)
Increase in trade and other payables 589 285
------ ------
Net cash inflow from operating
activities 328 39
====== ======
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the cash flow statement in respect of cash and cash
equivalents are in respect of these balance sheet amounts:
Year ended 31 December 2007
31.12.07 01.01.07
'000 '000
Cash and cash equivalents 11 12
Bank overdrafts - -
------ ------
11 12
======= =========
Year ended 31 December 2006
31.12.06 01.01.06
'000 '000
Cash and cash equivalents 12 7
Bank overdrafts - (3)
------- -------
12 4
======= =======
ROSS GROUP PLC & SUBSIDIARIES
SECTION 240 STATEMENT
for the Year Ended 31 December 2007
--------------------------------------------------
1. The financial information set out above does not constitute the
company's statutory accounts for the year ended 31 December 2007 nor for the
comparative period, but is derived from those accounts. Statutory accounts
for the year ended 31 December 2006 have been delivered to the Registrar of
Companies and those for the year ended 31 December 2007 will be delivered
following the company's annual general meeting. The auditors have reported
on the accounts for 2006: their report was unqualified and did not contain
statements under s237 (2) or (3) Companies Act 1985.
2. The total number of shares in issue did not change during 2006 and 2007.
3. The figures for earnings per share and the adjusted earnings per share
are the same for 2007 (and 2006).
4. No ordinary interim or final dividend is proposed.
5. A nil liability to Corporation Tax has been assessed for the year due
to tax losses brought forward.
6. The Accounting Policies set out in the Financial Statements for the
Year Ended 31 December 2007 have been applied during the preparation of the
financial information contained in this statement.
7. A copy of the Financial Statements will be available on request from
Ross Group plc, Brunel Road, Totton, Southampton SO40 3YS.
This announcement has been agreed by the company's auditors, Everett and Son, 35
Paul Street, London, EC2A 4UQ and was approved by the Board of Directors of Ross
Group plc on 29 April 2008
Ross Group PLC
Registered office: 35 Paul Street, London. EC2A 4UQ
Telephone: 0207 258 0011 Michael Simon
This information is provided by RNS
The company news service from the London Stock Exchange
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