TIDMRGP
RNS Number : 4230R
Ross Group PLC
29 April 2009
?
Final Results
Ross Group plc are pleased to file final audited accounts for the year ended
31st December 2008.
A full review for the year is included within the accounts.
ROSS GROUP PLC
FINANCIAL STATEMENTS
31 DECEMBER 2008
EVERETT & SON
Chartered Accountants & Registered Auditors
35 Paul Street
London
EC2A 4UQ
ROSS GROUP PLC
FINANCIAL STATEMENTS
for the Year Ended 31 December 2008
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| Company registration number: | 131902 |
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| | |
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| Registered Office: | 35 Paul Street |
| | London |
| | EC2A 4UQ |
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| | |
+------------------------------------+------------------------------------+
| Directors: | A C C Ma |
| | R Lee Yen Kee |
| | M A B Binney |
| | M J Simon (Resigned 22 December |
| | 2008) |
| | B Pettitt (Appointed 22 December |
| | 2008) |
| | T Wilkinson T Wil T Wilkinson |
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| Secretary: | R Lee Yen Kee |
| | |
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| Banker: | HSBC Bank plc |
| | Corporate, Investment Banking |
| | And Markets Industrials |
| | Level 19, 8 Canada Square |
| | London |
| | E14 5HQ |
| | London London |
+------------------------------------+------------------------------------+
| Solicitors: | K & L Gates LLP |
| | 110 Cannon Street |
| | London |
| | EC4N 6AR |
| | Lond |
+------------------------------------+------------------------------------+
| Brokers: | Capita Registrars |
| | The Registry |
| | 34 Beckenham Road |
| | Beckenham |
| | Kent |
| | BR3 4TU |
+------------------------------------+------------------------------------+
| | |
+------------------------------------+------------------------------------+
| Auditors: | Everett & Son |
| | Chartered Accountants & |
| | Registered Auditors |
| | 35 Paul Street |
| | London |
| | EC2A 4UQ |
| | London |
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ROSS GROUP PLC & SUBSIDIARIES
CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2008
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Page
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| Chairman's Statement |1 |
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| Operating and Financial Review |2 |
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| Report of the Directors | 3-5 |
| Corporate Governance Statement | 6-8 |
| Directors' Remuneration Report | 9 |
| Corporate Social Responsibility | 10 |
| Report of the Independent Auditors | 11-12 |
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| Consolidated Income Statement |13 |
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| Consolidated Statement of Changes in |14 |
| Equity | |
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| Consolidated Balance Sheet |15 |
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| Company Balance Sheet |16 |
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| Consolidated Cash Flow Statement |17 |
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| Notes to the Cash Flow Statement | 18 |
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| Notes to the Financial Statements | 19-34 |
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ROSS GROUP PLC & SUBSIDIARIES
CHAIRMAN'S STATEMENT
for the Year Ended 31 December 2008
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RESULTS
The Group result before tax, for the year ended 31 December 2008 was a loss of
GBP1,055,000 (Year ended 31 December 2007: GBP1,068,000).
The result for the year is disappointing however the Directors consider that it
is consistent with the action that had to be taken to prevent and stop the
continuing drain on resources caused by GEL Engineering Ltd.
STRATEGY
The appointment of a new Group CEO, Barry Pettitt, which was approved at the
Group AGM on 22 December 2008, should enable the Group to continue in its
efforts to reduce expenses, increase efficiencies and provide a new strategy for
the future benefit of shareholders, even during this time of global economic
adversity and uncertainty.
The Board cannot recommend a payment of a dividend.
APPRECIATION
I would like to take this opportunity to thank our Shareholders, Bankers,
Advisers, Suppliers and Customers for their continuing support in a challenging
year.
A C C Ma
Chairman
28 April 2009
ROSS GROUP PLC & SUBSIDIARIES
OPERATING AND FINANCIAL REVIEW
for the Year Ended 31 December 2008
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Business Review
Whilst Ross Group could no longer continue to support the loss making operation
of GEL Engineering Ltd which went into administration on 23 April 2008, Sansui
Electronics (UK) Ltd continued to earn a small amount of income during the
period under review and is presently looking at other licence opportunities in
consumer electronics.
The Directors have been continuing to investigate opportunities for the Group
with a view to bringing new management and activities into the business profile.
The Directors are confident that a suitable potential opportunity will be put
together to commence the re-generation of the Group next year.
Business Outlook
The outlook for the Group should be enhanced by the new and potential
significant changes in the structure and operation of the Group going forward.
ROSS GROUP PLC & SUBSIDIARIES
REPORT OF THE DIRECTORS
for the Year Ended 31 December 2008
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The directors present their report with the financial statements of the company
and the group for the year ended 31 December 2008.
PRINCIPAL ACTIVITY
The principal activities of the group are primarily the design and manufacture
of engineering projects and the sale and distribution of electronic products.
REVIEW OF BUSINESS
The results for the year and financial position of the company and the group are
as shown in the annexed financial statements and detailed in the Operating and
Financial Review.
DIVIDENDS
No dividends will be distributed for the year ended 31 December 2008.
There was a loss for the year after taxation amounting to GBP1,055,000 (2007:
GBP1,068,000). The directors do not recommend payment of a dividend and the loss
has been applied to reserves.
DIRECTORS
A C C Ma (Chairman)
Adrian Chi Chiu Ma, aged 64, was appointed to the board on 8 February 2000. He
is a commerce graduate from Birmingham University, England and a member of the
Institute of Chartered Accountants in England and Wales. Mr Ma has more than 20
years experience in the finance and operations of the computer peripheral and
electronics industry. He is also an executive director of The Grande Group.
M A B Binney (Chief Executive)
Michael Andrew Barclay Binney, aged 49, was appointed to the board on 11
February 2000. He studied at Coventry University, England and is a Fellow of the
Institute of Chartered Accountants in England and Wales and the Hong Kong
Society of Accountants. Mr Binney has extensive experience in manufacturing and
operations of the consumer and computer electronics industry. He is also a
non-executive director of The Grande Holdings Limited.
R Lee Yen Kee (Executive Director)
Ruby Lee Yen Kee, aged 47, was appointed to the board on 11 May 2001. She is a
law graduate from the University of Singapore, and is called to the Singapore
Bar. She also holds a masters in law from the London School of Economics,
University of London. Prior to joining The Grande Group, Ms Yen Kee was in legal
practice and she now leads the legal and company secretarial team of The Grande
Group.
M J Simon (Non Executive Director)
Michael Jonathan Simon, aged 50, was appointed to the board on 28 March 2000. He
is an economics graduate from the University of Cambridge and a fellow of the
Institute of Chartered Accountants in England and Wales and also of the
Association of Chartered Certified Accountants. Mr Simon is in a partnership in
public practice. Mr Simon resigned as a director on 22 December 2008.
B R Pettitt (Chief Executive Officer - Designate - Subject to Contract)
Barry Richard Pettitt, aged 49, was appointed to the board on 22 December 2008
to become the CEO of the Group subject to contract. In the interim period,
subject to his contract approval, he has agreed to be a non executive director.
He has more than 30 years experience in the consumer electronics industry and
has successfully started several privately owned companies covering a broad
spectrum of supply chain management services, managed a number of Public Company
divisions (in the capacities of President and Managing Director) and also is a
founding partner in a specialist consulting company. He was a main board
director of the Ross Group (formerly Ross Consumer Electronic plc) in 1988/89.
ROSS GROUP PLC & SUBSIDIARIES
REPORT OF THE DIRECTORS
for the Year Ended 31 December 2008
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GROUP'S POLICY ON PAYMENT OF CREDITORS
It is the policy of the company that it and each of its subsidiaries should
agree appropriate terms and conditions for its transactions with suppliers (by
means ranging from standard written terms to individually negotiated contracts)
and that payment should be made in accordance with those terms and conditions,
provided that the supplier has also complied with them. There were no cost of
sales in the year, therefore there are no trade creditors at the year end. At
the previous period end the average number of day's purchases in trade creditors
was 126 days.
EMPLOYEE INVOLVEMENT
Currently the directors are the only employees.
Directors
The directors had no interests in contracts of significance with the company.
In accordance with the Articles of Association members will be asked to confirm
the appointment of all directors.
None of the directors at the year end held any shares in the Group.
Substantial shareholdings
As at 31st December 2008 the following were registered as being materially
interested in 3% or more of the company's issued share capital, or being a
related shareholder:
+-------------------------------+-----+-------------------+---+----------------------+--+----+--+
| | No. of Ordinary | | % of issued share | |
| | Shares | | capital | |
+-------------------------------------+-------------------+---+----------------------+--+
| The Grande Holdings Limited | | 7,272,718 | | 5.34 % | |
| | | | | | |
+-------------------------------+-----+-------------------+---+------------------------------+--+
| The Grande Holdings Limited also had the following interests through its nominees: |
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| The Alpha Capital Limited | | 23,294,837 | | 17.11 % | |
+-------------------------------+-----+-------------------+---+------------------------------+--+
| Escalating Investments | | 22,200,720 | | 16.3 % | |
| Limited | | | | | |
+-------------------------------+-----+-------------------+---+------------------------------+--+
| Vidacos Nominees Limited | | 3,636,359 | | 2.67 % | |
+-------------------------------+-----+-------------------+---+----------------------+--+----+--+
The total number of shares controlled by The Grande Holdings Limited, directly
and indirectly, at the date of this report was 56,404,634 (41%).
FINANCIAL INSTRUMENTS
Details of the financial instruments used by the Group can be found in note 17
of the accounts.
ROSS GROUP PLC & SUBSIDIARIES
REPORT OF THE DIRECTORS
for the Year Ended 31 December 2008
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STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the financial statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each
financial year. Under that law the directors have elected to prepare the
financial statements in accordance with International Financial Reporting
Standards as adopted for use in the European Union. The financial statements are
required by law to give a true and fair view of the state of affairs of the
company and the group and of the profit or loss of the group for that period. In
preparing these financial statements, the directors are required to
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| -| make judgements and estimates that are reasonable and prudent; |
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| -| prepare the financial statements on the going concern basis unless it is |
| | inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping proper accounting records which
disclose with reasonable accuracy at any time the financial position of the
company and the group and to enable them to ensure that the financial statements
comply with the Companies Act 1985. They are also responsible for safeguarding
the assets of the company and the group and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate
and financial information included on the company website. Legislation in the
United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as
defined by Section 234ZA of the Companies Act 1985) of which the group's
auditors are unaware, and each director has taken all the steps that he or she
ought to have taken as a director in order to make himself or herself aware of
any relevant audit information and to establish that the group's auditors are
aware of that information.
AUDITORS
The auditors, Everett & Son, will be proposed for re-appointment at the
forthcoming Annual General Meeting.
ON BEHALF OF THE BOARD:
Ms R Y K Lee - Secretary
28 April 2009
ROSS GROUP PLC & SUBSIDIARIES
CORPORATE GOVERNANCE STATEMENT
for the Year Ended 31 December 2008
The company is pleased to present its report on Corporate Governance the
Combined Code. The Board strives to comply with the high standards set by The
Combined Code as incorporated in the UK Listing Rules of the Financial Services
Authority. The Code on Corporate Governance requires the company to make a two
part disclosure statement, firstly on how the principles of the code are applied
and secondly confirmation of compliance or explanation of any reason for
deviation from the Code.
Application Of The Principles Of The Combined Code
The Board
There is an effective and appropriately constituted board which consists of four
directors. During the year under review this comprised the Chairman (A C C Ma),
the Chief Executive (M A B Binney), one independent non-executive director (M J
Simon resigned 22 December 2008) and one executive director (R Lee Yen Kee).
Details of the experience and qualifications of the directors are contained
within the Annual Report.
The Chief Executive, Mr Binney is normally based overseas.
The non-executive director, Mr Simon, is considered to be independent as there
are no circumstances or relationships as described by Code provision A.3.1 which
apply to his appointment.
The Chairman, Mr. Ma, is also a director of The Grande Holdings Limited which
has a controlling interest in Ross Group due to its shareholding directly and by
nominee and subsidiary companies. Mr. Binney is a director of The Grande
Holdings Limited. Mr. Ma has other management commitments to companies within
The Grande Group.
Board Procedure
The Board is responsible for decisions concerning strategic and financial
planning and matters involving the overall direction of the company. Management
will seek Board approval of the annual budget and rolling business plan.
Reforecasts are presented as updates to the budget throughout the year to
account for variances and provide forward vision. The operational business
decisions are taken by local management with reference to the Board where
necessary.
The Board is of the opinion that taking into account the number of members on
the Board a separate Nomination Committee is currently not required. This
function is covered by the full Board.
As mentioned above the Board has one non-executive director who is a member of
the Audit and Remuneration Committees. As an ongoing part of the reorganisation
process the Group is committed to re-examine the constitution of the board and
to recruit at the earliest opportunity non-executive directors as necessary. The
Group's definition of a non-executive director is one who considers the interest
of all the shareholders and this is demonstrated during the board meetings.
Except for the non-executive director who is on a one-year appointment at a
fixed fee, all of the other directors are subject to periodic re-election and
the full board considers all appointments. A director will require re-election
within a maximum period of three years.
Biographies of the Board are included in the Financial Statements. These
indicate a wealth of experience, which is essential in effectively managing the
activities of the Group. In addition to this the board members, where
appropriate, attend seminars and courses of their respective professional
organisations.
ROSS GROUP PLC & SUBSIDIARIES
CORPORATE GOVERNANCE STATEMENT
for the Year Ended 31 December 2008
Attendance
Board meetings are held regularly throughout the year. Due to the location of
the directors, the meetings are often held electronically.
The Board has now established procedures in respect of access to the Company
Secretary and the Directors have access to consult the Company Secretary when
required.
All Shareholders have the opportunity to put forward questions to the Board
during the Company's Annual General Meeting and the Board communicates with the
Shareholders via the notices and other papers relating to the Annual General
Meeting. The Company also welcomes and responds to written communication from
its shareholders. The Company website allows shareholders to contact the
directors by email.
The Board has carried out a formal and rigorous annual evaluation of its
performance and of its committees and individual directors. This evaluation
covers contribution, commitment and the manner in which board related duties
have been completed. The chairman has discussed the review with individual
directors where necessary to ensure the Board operates as an effective unit. The
performance review was conducted using recognised evaluation processes. The
independent non-executive director has conducted a performance review on the
chairman which included the consideration of the views expressed by the
executive directors.
Statement of Compliance with the Combined Code
The Group has complied with the Combined Code apart from provision A.3.2 which
requires that the Board should include at least two independent non-executive
directors. Since Michael Simon resigned on 22 December 2008, the Group has no
non-executive directors. However the Group is currently in negotiations with
executive and non-executive directors with a view to strengthening the board in
the near future.
The Group continues to actively seek to appoint additional non-executive
directors of the correct experience and calibre. Furthermore whilst the future
strategy of the Group continues to develop, the Board feels that it is essential
that any additional non-executive director be brought on board with the correct
skill-sets to enhance the overall abilities of the Board. The improvement in the
results and financial standing of the Group should assist with appointing
additional non executive directors and thus strengthening the board.
Internal audit and control
The respective responsibilities of the directors and the auditors in connection
with the Financial Statements are set out in the audit report. The directors
have overall responsibility of the effectiveness of the Group's whole system of
internal control, including financial and other controls, which are designed to
provide reasonable but not absolute assurance against material misstatement or
loss. The key procedures that the directors have established to provide
effective internal financial control are as follows:
Financial Reporting
There is a comprehensive system for reporting performance. During the course of
the year, a one year rolling budget is prepared for each company within the
Group and a consolidated budget is prepared for the whole Group. The Board then
formally approves the budgets. The monthly results are then reported to the
Board for their consideration and forecasts are revised accordingly.
Quality and Integrity of Personnel
The integrity of the Group is maintained through the appointment of experienced
and professional staff and the application of appropriate policies and
procedures.
ROSS GROUP PLC & SUBSIDIARIES
CORPORATE GOVERNANCE STATEMENT
for the Year Ended 31 December 2008
Capital Investment
The Group has set procedures for capital expenditure. These include annual
budgets, appraisals and review of the required expenditure, approvals at the
right levels of authority and the commissioning of independent professional
advice where appropriate.
Professional Advice
Professional advice is usually sought on contentious and disclosure issues, this
being as a result of discussions during the Board Meetings. During the year the
Chairman can seek independent professional advice in relation to matters
affecting the Group.
The Group has an on going system for identifying, evaluating and managing the
significant risks faced by the Group which has been in place for the whole of
the year under review up to the date of approval of the annual report and
accounts and which is regularly reviewed by the Board to ensure it continues to
accord with the "Turnbull Guidance". The directors have reviewed the
effectiveness of the system of internal financial control during the year from
information provided by the management and the Group's external auditors. It
must be recognised that such a system can only provide reasonable and not
absolute assurance, and in that context, the review revealed nothing which, in
the opinion of the directors, indicates that the system was inappropriate or
unsatisfactory.
The Group has no formal internal audit function and the Board has determined
that there is no need for one. The Board considers that internal audit is dealt
with in other ways and the situation is regularly reviewed.
Going Concern
The directors confirm that after making the appropriate enquires, they are of
the opinion that the Group as a whole has adequate resources to continue in
operational existence for the foreseeable future and therefore have prepared the
Financial Statements on a going concern basis.
External Audit and Audit Committee
The Audit Committee comprises the non-executive director and an executive
director. Although this does not meet the provision of code C.3.1, the spirit of
the provision is in force and as stated above the Board is seeking to recruit
additional non-executive directors.
The Audit Committee meets periodically to review the adequacy of the Group's
internal control systems, accounting policies, corporate governance policies and
compliance with applicable accounting standards and to consider the appointment
of the external auditors and to review their fees. Everett & Son is invited to
attend these meetings. The Audit Committee is authorised by the Board to
investigate any activity within its terms of reference and obtain external
professional advice as is necessary.
By order of the Board
A C C Ma
Chairman
28 April 2009
ROSS GROUP PLC & SUBSIDIARIES
DIRECTORS' REMUNERATION REPORT
for the Year Ended 31 December 2008
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The Board is pleased to present its Remuneration Report in accordance with
section 12.43A(c) of The Listing Rules.
The Board has in place a Remuneration Committee, comprising Mr Michael Simon,
the non executive director, and Mr Michael Binney, Chief Executive, to determine
the remuneration of the Board.
The Company policy on Executive Directors is to award those involved in the day
to day running of the company with an annual salary which may be enhanced, at
the Board's discretion, by a bonus in successful years. The Chairman and the
other Executive Directors resident outside the UK are not currently rewarded by
the company, but this could be reconsidered when the company enjoys more
success. These directors feel it would be inappropriate to take any reward until
a complete turnaround of the company can be demonstrated and the conditions
exist for the restoration of dividend payments to the shareholders.
+------------+------------+---------+----------+---------+--------------+--------------+
| Name | Position | Gross |Benefits | Notice | Total | Total |
| | | Salary | | Pay |Remuneration |Remuneration |
| | | | | | 2008 | 2007 |
+------------+------------+---------+----------+---------+--------------+--------------+
| A C C Ma | Chairman | Nil | Nil | Nil | Nil | Nil |
| | | | | | | |
+------------+------------+---------+----------+---------+--------------+--------------+
| R Lee Yen | Executive | Nil | Nil | Nil | Nil | Nil |
| Kee | director | | | | | |
| | | | | | | |
+------------+------------+---------+----------+---------+--------------+--------------+
| M A B | Chief | Nil | Nil | Nil | Nil | Nil |
| Binney | Executive | | | | | |
| | | | | | | |
+------------+------------+---------+----------+---------+--------------+--------------+
| M J Simon | Non | Nil | Nil | Nil | GBP8,000 | GBP8,000 |
| | executive | | | | | |
| | director | | | | | |
+------------+------------+---------+----------+---------+--------------+--------------+
| Total | | Nil | Nil | Nil | GBP8,000 | GBP8,000 |
+------------+------------+---------+----------+---------+--------------+--------------+
No director has a service contract with a notice period in excess of 12 months.
All executive directors have contracts that require a notice period of one
month. The contract of the non-executive director falls due for renewal in March
and would normally be renewed for a period of one year. All directors are
presented for re-election by the members at the Annual General Meeting on a
maximum cycle of three years.
The Group does not operate a director's share option scheme or a long-term
incentive scheme. The Group also does not currently have an employees share
scheme or other long-term incentive scheme. None of the Directors take advantage
of the Company's Group Personal Pension Scheme to which the company contributes
on behalf of employees.
ROSS GROUP PLC & SUBSIDIARIES
CORPORATE SOCIAL RESPONSIBILITY (CSR)
for the Year Ended 31 December 2008
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The Board is fully aware of its responsibilities and fully supports the drive
for ongoing improvement in this area. The impact the group's activities on the
environment are regularly assessed to enable action to be directed at areas
where any harmful impact could be reduced.
The Board has instructed local management to ensure the companies address those
corporate social responsibilities which are recognised as being of prime
importance. The responsibility for CSR rests with the UK based executive
director, Michael Binney, who will bring to the Board's attention any major
issues which require their approval and regularly updates the Board on CSR
matters. The views of shareholders and interested external parties are
considered when developing the ongoing policy to CSR.
Figures are available for the board to review to enable them to assess the trend
towards improvement in CSR matters and to direct the policy towards those areas
that require further attention.
Employees
The company considers its employees to be its most valuable asset and therefore
is committed to ensuring they are rewarded with the best environment in which to
perform their duties. This environment is one of equal opportunity and free from
discrimination and harassment. The company is keen to development a culture
which suits the recruitment and retention of the highest calibre of staff and to
ensure the all staff are trained to the appropriate standard required to fully
meet their job specifications.
The health and safety of the employees is paramount to the company. Staff are
issued with data sheets on the handling of any substances which might be toxic
and trained in the correct procedures to follow. The company has a Health and
Safety committee where any potential issues can be raised. During the calendar
year 2008 there were no reportable injuries, diseases or dangerous occurrences
under the RIDDOR regulations 1995. This is the fourth year we have been able to
report that no instances have occurred.
Environment
The Company has worked with its suppliers during the year to ensure the products
used in manufacturing and any waste arising from the use of those products has a
minimal impact on the environment. The use of energy is closely monitored and
the available controls are used to good effect to reduce consumption where
possible.
Customers
Customer satisfaction is one of the main targets for the company and this is
aided by a rigorous quality policy. The Quality procedures adopted by the
company require the recording of customer feedback and measures our performance
against customer expectation. The company strives to meet the demands of its
customers, but also ensures that solutions to their requirements are designed
with efficiency.
Local Community
The company seeks to inter act with the local community and develop close
relationships within its area of operation. It has established links with the
local schools and colleges.
Commitment
The Group will continue to enhance its approach to CSR to ensure that it
supports the principles as it expands its range of activities and welcomes any
suggestions on how it can improve in this area.
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ROSS GROUP PLC & SUBSIDIARIES
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We have audited the financial statements of Ross Group Plc & Subsidiaries for
the year ended 31 December 2008, that is, the primary statements and the notes.
These financial statements have been prepared under the accounting policies set
out therein.
This report is made solely to the company's members, as a body, in accordance
with Section 235 of the Companies Act 1985. Our audit work has been undertaken
so that we might state to the company's members those matters we are required to
state to them in an auditors' report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company and the company's members as a body, for our audit work,
for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
As described in the statement of directors' responsibilities, the company's
directors are responsible for the preparation of the financial statements in
accordance with applicable law and International Financial reporting Standards
(IFRSs) as adopted for use in the European Union. The Directors are also
responsible for preparing the report on Directors' remuneration.
Our responsibility is to audit the financial statements and the auditable part
of the report on Directors' remuneration in accordance with relevant legal and
regulatory requirements and International Standards on auditing (UK and
Ireland).
We report to you our opinion as to whether the financial statements and the
auditable part of the report on Directors' remuneration give a true and fair
view and are properly prepared in accordance with the Companies Act 1985 and
Article 4 of the IAS regulation. We also report to you if, in our opinion, the
directors' report is not consistent with the financial statements, if the
company has not kept proper accounting records, if we have not received all the
information and explanations we require for our audit, or if information
specified by law or the Listing Rules of the Financial Services Authority
regarding the directors' remuneration report and transactions with the company
is not disclosed.
We review whether the corporate governance statement reflects the company's
compliance with the nine provisions of the combined code specified for our
review by the Listing Rules, and we report if it does not. We are not required
to form an opinion on the effectiveness of the group's corporate governance
procedures or its risk and control procedures.
We read the other information contained in the annual report and consider
whether it is consistent with the audited financial statements. This information
comprises only the Chairman's statement, Operating and financial review, Report
of the Directors, Corporate governance statement, Directors' remuneration report
and the Corporate social responsibility statement. We consider the implications
on our report if we become aware of any apparent misstatements or material
inconsistencies with the financial statements. Our responsibilities do not
extend to any other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an assessment of the
significant estimates and judgements made by the directors in the preparation of
the financial statements, and of whether the accounting policies are appropriate
to the company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ROSS GROUP PLC & SUBSIDIARIES
OPINION
In our opinion:
+--+------------------------------------------------------------------------------+
| * | the financial statements give a true and fair view, in accordance with |
| | International Financial Reporting Standards as adopted for use in the |
| | European Union, of the state of affairs of the company and the group as at |
| | 31 December 2008 and of the loss and cash flows of the group for the year |
| | then ended; |
| | |
+--+------------------------------------------------------------------------------+
| * | the financial statements have been properly prepared in accordance with the |
| | Companies Act 1985 and Article 4 of the IAS regulation; |
| | |
+--+------------------------------------------------------------------------------+
| * | those parts of the report on Directors' remuneration required by part 3 of |
| | Schedule 7A to the Companies Act 1985 have been properly prepared in |
| | accordance with the Companies Act 1985; and |
| | |
+--+------------------------------------------------------------------------------+
| * | the information given in the Report of the Directors is consistent with the |
| | financial statements. |
+--+------------------------------------------------------------------------------+
EVERETT & SON
REGISTERED AUDITORS
35 Paul Street
London
EC2A 4UQ
29 April 2009
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
for the Year Ended 31 December 2008
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| |Notes | | 31.12.08 | | 31.12.07 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | GBP'000 | | GBP'000 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| CONTINUING OPERATIONS | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Revenue | 2 | | 42 | | 1,702 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | - | | (1,098) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Cost of sales | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| GROSS PROFIT | | | 42 | | 604 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Administrative expenses | | | (437) | | (1,151) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| OPERATING LOSS | | | (395) | | (547) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Net finance costs | 4 | | (660) | | (521) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| LOSS BEFORE TAX | | | (1,055) | | (1,068) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Tax | 6 | | - | | - | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| LOSS FOR THE YEAR | | | (1,055) | | (1,068) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| CONTINUING OPERATIONS | | | | | | |
| LOSS FOR THE YEAR | | | | | | |
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| DISCONTINUED OPERATIONS | | | | | | |
| LOSS FOR THE YEAR | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Attributable to: | | | | | | |
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Equity holders of the | 8 | | (1,055) | | (1,068) | |
| parent | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Earnings per share | 8 | | | | | |
| expressed | | | | | | |
| in pence per share: | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | (0.77) | | (0.78) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | (0.77) | | (0.78) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2008
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | Share | | Accumulated | | Other | | Total |
| | capital | | losses | | reserves | | equity |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| Balance at 1 January 2007 | 11,136 | | (33,580) | | 17,701 | | (4,743) |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| Exchange (loss) on | - | | (1) | | - | | (1) |
| retranslation of Subsidiary | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| (Loss) for the year | - | | (1,068) | | - | | (1,068) |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| Total Recognised income for | - | | (1,069) | | - | | (1,069) |
| 2007 | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| Balance at 31 December 2007 | 11,136 | | (34,649) | | 17,701 | | (5,812) |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| Balance at 1 January 2008 | 11,136 | | (31,600) | | 17,701 | | (2,763) |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| Exchange (loss) on | - | | (2,704) | | - | | (2,704) |
| retranslation of Subsidiary | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| (Loss) for the year | - | | (1,055) | | - | | (1,055) |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| Total recognised income for | - | | (3,759) | | - | | (3,759) |
| 2008 | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
| Balance at 31 December 2008 | 11,316 | | (35,359) | | 17,701 | | (6,522) |
+---------------------------------+------------+-+-------------+-+------------+-+------------+
The retained earnings at 31 December 2007 included a deficit of GBP(3,049,819)
from GEL Engineering Ltd. Since their results are not being consolidated this
year, this figure must be excluded from the accumulated losses and total equity
brought forward at 1 January 2008.
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
31 December 2008
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| |Notes | | 31.12.08 | | 31.12.07 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | GBP'000 | | GBP'000 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| NON-CURRENT ASSETS | | | | | | |
| HELD FOR SALE | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Property, plant and | 11 | | - | | 38 | |
| equipment | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Trade and other | 12 | | - | | 11 | |
| receivables | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| CURRENT ASSETS | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Inventories | | | - | | 3 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Trade and other | 12 | | 247 | | 660 | |
| receivables | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Cash and cash equivalents | 13 | | 5 | | 11 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | 252 | | 674 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| LIABILITIES | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| CURRENT LIABILITIES | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Trade and other payables | 14 | | 6,574 | | 6,335 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Financial liabilities - | | | | | | |
| borrowings | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Interest bearing loans and | | | 200 | | 200 | |
| borrowings | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | 6,774 | | 6,535 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| NET CURRENT LIABILITIES | | | (6,522) | | (5,861) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| NET LIABILITIES | | | (6,522) | | (5,812) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| SHAREHOLDERS' EQUITY | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Called up share capital | 18 | | 11,136 | | 11,136 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Share premium | 19 | | 2,317 | | 2,317 | |
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Other reserves | 19 | | 15,384 | | 15,384 | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Accumulated losses | 19 | | (35,359) | | (34,649) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| Total equity | | | (6,522) | | (5,812) | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
| TOTAL EQUITY | | | (6,522) | | (5,812) | |
| | | | | | | |
+----------------------------+-------+-----+----------+--------------+----------+----+
The financial statements were approved by the Board of Directors on 28 April
2009 and were signed on its behalf by:
A C C Ma - Director
M A B Binney - Director
ROSS GROUP PLC & SUBSIDIARIES
COMPANY BALANCE SHEET
31 December 2008
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| |Notes | | 31.12.08 | | 31.12.07 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | GBP'000 | | GBP'000 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| ASSETS | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| CURRENT ASSETS | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Trade and other receivables | 12 | | 50 | | 47 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Cash and cash equivalents | 13 | | 5 | | 1 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | 55 | | 48 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| LIABILITIES | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| CURRENT LIABILITIES | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Trade and other payables | 14 | | 5,919 | | 5,234 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| NET CURRENT LIABILITIES | | | (5,864) | | (5,186) | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| NET LIABILITIES | | | (5,864) | | (5,186) | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| SHAREHOLDERS' EQUITY | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Called up share capital | 18 | | 11,136 | | 11,136 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Share premium | 19 | | 2,317 | | 2,317 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Other reserves | 19 | | 30,938 | | 30,938 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Accumulated losses | 19 | | (50,255) | | (49,577) | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Total equity | | | (5,864) | | (5,186) | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| TOTAL EQUITY | | | (5,864) | | (5,186) | |
+------------------------------+-------+------+----------+--------------+----------+----+
The financial statements were approved by the Board of Directors on 28 April
2009 and were signed on its behalf by:
A C C Ma - Director
M A B Binney - Director
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENT
for the Year Ended 31 December 2008
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| |Notes | | 31.12.08 | | 31.12.07 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | GBP'000 | | GBP'000 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Cash flows from operating | | | | | | |
| activities | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Cash generated from | | | 656 | | 328 | |
| operations | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Interest paid | | | (660) | | (521) | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Net cash from operating | | | (4) | | (193) | |
| activities | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Cash flows from investing | | | | | | |
| activities | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Purchase of tangible fixed | | | - | | (8) | |
| assets | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Net cash from investing | | | - | | (8) | |
| activities | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Cash flows from financing | | | | | | |
| activities | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| New loans in year | | | - | | 200 | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Net cash from financing | | | - | | 200 | |
| activities | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Decrease in cash and cash | | | (4) | | (1) | |
| equivalents | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Cash and cash equivalents at | | | 9 | | 12 | |
| beginning of year | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
| Cash and cash equivalents at | | | 5 | | 11 | |
| end of year | | | | | | |
+------------------------------+-------+------+----------+--------------+----------+----+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
+-----+--------------------------------------------------------------------------+
| 1. | RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS |
+-----+--------------------------------------------------------------------------+
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | 31.12.08 | | 31.12.07 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | GBP'000 | | GBP'000 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Loss before tax | | | | | (1,055) | | (1,068) |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Finance costs | | | | | 660 | | 521 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | (395) | | (547) |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Decrease in inventories | | | | | 3 | | 8 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Decrease in trade and other | | | | | 424 | | 276 |
| receivables | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Increase in trade and other | | | | | 239 | | 591 |
| payables | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Elimination of GEL 2007 closing | | | | | 385 | | - |
| balances | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Cash generated from operations | | | | | 656 | | 328 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
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 2008 | | | | | |
+---------------------------------+------------+-+-----------+-+---------------------------+
| | | | | | 31.12.08 | | 1.1.08 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | GBP'000 | | GBP'000 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Cash and cash equivalents | | | | | 5 | | 9 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Year ended 31 December 2007 | | | | | |
+---------------------------------+------------+-+-----------+-+---------------------------+
| | | | | | 31.12.07 | | 1.1.07 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | GBP'000 | | GBP'000 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| Cash and cash equivalents | | | | | 11 | | 12 |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
| | | | | | | | |
+---------------------------------+------------+-+-----------+-+------------+-+------------+
The difference between the 2007 closing cash balance and the 2008 opening cash
balance is the GEL bank
account. The 2007 GEL closing inventory, receivables and payables balances have
been eliminated in note 1
above.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
1.ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared in accordance with International
Accounting Standards under the historical cost convention, as modified for the
revaluation of certain fixed assets.
Basis of consolidation
The group financial statements consolidate those of the company and of its
subsidiary undertakings drawn up to 31 December 2008. The results of GEL
Engineering Ltd (GEL) have not been consolidated due to the fact they are in
liquidation. Any amounts arising between 1 January 2008 and the date GEL went
into administration, 23 April 2008, have not been included because they are
immaterial. Profits or losses on intra-group transactions are eliminated in
full. On acquisition of a subsidiary, all of the subsidiary's assets and
liabilities which exist at the date of acquisition are recorded at their fair
values reflecting their condition at that date.
Goodwill arising on consolidation represents the excess of the fair value of the
consideration given over the fair values of the identifiable net assets
acquired. Goodwill arising subsequent to the adoption of International
Accounting Standard No. 38 is capitalised and is subject to an annual impairment
review. Such goodwill will be charged or credited to the income statement on the
subsequent disposal of the business to which it relates. Goodwill previously
charged to the special reserve has now been charged to the income statement in
relation to subsidiaries disposed of.
Revenue recognition
Revenue is the total amount receivable by the group for goods supplied and
services provided to third parties, excluding VAT.
Property, plant and equipment
Depreciation is calculated to write down the cost or valuation less estimated
residual value of all tangible fixed assets by equal annual instalments over
their expected useful lives. The rates generally applicable are:
+---+----------------------------+-+------------------------------------------+-+
| | Leasehold improvements | | - over the term of the lease | |
+---+----------------------------+-+------------------------------------------+-+
| | Plant, equipment and | | - 10% to 33% | |
| | vehicles | | | |
+---+----------------------------+-+------------------------------------------+-+
Per IFRS 5: Non-current Assets Held For Sale and Discontinued Operations, any
assets that are classified as "Held for Sale" are valued at the lower of
carrying value and fair value less costs to sell. These assets are also not
subject to any depreciation.
Financial instruments
Financial assets and liabilities are recognised on the balance sheet when the
entity becomes party to the contractual provisions of the instrument.
The Group's financial instruments consist primarily of cash and cash
equivalents, accounts receivable and accounts payable.
Cash and cash equivalents
Cash and cash equivalents comprise cash and short term deposits held with banks,
bank overdrafts are recorded under current liabilities on the balance sheet.
Trade and other receivables
Trade and other receivables are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts and included in
current assets, except for maturities greater than 12 months from the balance
sheet date.
Trade and other payables
Trade and other payables are stated at their nominal value and included in
current liabilities, except for maturities greater than 12 months from the
balance sheet date.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
Deferred taxation
Deferred tax is provided for if material, using the tax rates estimated to arise
when the timing differences reverse and is accounted for to the extent that it
is probable that an asset will crystallise.
Long term contracts
Long term contracts are defined as those contracts which straddle two or more
accounting periods.
Revenue from long term contracts is recognised as the sum of work performed at
the balance sheet date plus a proportion of estimated total contract profit.
This proportion is measured by reference to the stage of completion at the
balance sheet date, determined as the proportion that contract costs incurred
for work performed to date bear to the estimated total contract costs.
Amounts invoiced for work completed are deducted from long term contract revenue
and this value is included under 'Amounts recoverable on contracts' while
amounts invoiced in excess of recognised revenue are held as current liabilities
under 'Amounts payable on contracts'.
Full provision is made for losses on all contracts in the year in which the loss
is first foreseen.
Foreign currencies
Transactions denominated in foreign currencies are translated at the exchange
rate ruling at the date of the transaction. Monetary assets and liabilities in
foreign currencies are translated at the rates of exchange ruling at the balance
sheet date. These transaction differences are dealt with in the profit and loss
account. The financial statements of foreign subsidiaries are translated at the
rate of exchange ruling at the balance sheet date. The exchange differences
arising from the retranslation of the opening net investment in subsidiaries are
taken directly to reserves.
Contributions to pension funds
Money purchase scheme
The pension costs charged against profits represent the amount of the
contributions payable to the scheme in respect of the accounting period.
Leased assets
Assets held under finance leases and hire purchase contracts are capitalised at
their fair value at the inception of the lease and depreciated over the shorter
of the period of the lease and their expected useful lives. The capital element
of the future payments is treated as a liability and the interest is charged to
the profit and loss account on a sum of digits basis.
Rentals applicable to operating leases where substantially all of the benefits
and risks of ownership remain with the lessor are charged against profits on a
straight line basis over the period of the lease.
Non-current Assets Held for Sale and Discontinued Operations
In accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued
Operations", a company component is deemed to be a discontinued operation if it
has been sold or is classified as held for sale as at the balance sheet date and
represents a separate major line of business, whose activities and cash flows
can be clearly distinguished from continuing activities both operationally and
for accounting purposes. The assets of discontinued operations classified as
held for sale are measured at the lower of carrying amount and fair value less
costs to sell.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
2.SEGMENTAL REPORTING
Revenue and profit/(loss) on ordinary activities before tax are attributable to
the following classes of business.
The revenue and profit/(loss) before tax are attributable to the principal
activity of the group.
An analysis of revenue is given below:
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| Revenue by business segment: | | | |
+--------------------------------------------+--------------+--+--------------+
| Consumer electronics | 42 | | 62 |
+--------------------------------------------+--------------+--+--------------+
| Technical services | - | | 1,640 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | 42 | | 1,702 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| All consumer electronics sales were to a | | | |
| related party, see note 20. | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| Revenue by destination: | | | |
+--------------------------------------------+--------------+--+--------------+
| United Kingdom | - | | 38 |
+--------------------------------------------+--------------+--+--------------+
| Rest of the World | 42 | | 1,664 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | 42 | | 1,702 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
3.EMPLOYEES AND DIRECTORS
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| Wages and salaries | 8 | | 938 |
+--------------------------------------------+--------------+--+--------------+
| Social security costs | - | | 88 |
+--------------------------------------------+--------------+--+--------------+
| Other pension costs | - | | 17 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | 8 | | 1,043 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
3.EMPLOYEES AND DIRECTORS - continued
The average number of employees during the year was as follows:
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| Warehousing and manufacturing | - | | 15 |
+--------------------------------------------+--------------+--+--------------+
| Admin, distribution and management | 4 | | 9 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | 4 | | 24 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP | | GBP |
+--------------------------------------------+--------------+--+--------------+
| Directors' emoluments | 8000 | | 55,882 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
The number of directors to whom retirement benefits were accruing was as
follows:
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| Money purchase schemes | - | | 1 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
The amounts set out above include remuneration in respect of the highest paid
director as follows:
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| Salary and other emoluments | - | | 48 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
4.NET FINANCE COSTS
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| Finance costs: | | | |
+--------------------------------------------+--------------+--+--------------+
| Bank interest | 660 | | 521 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
5.LOSS BEFORE TAX
The loss before tax is stated after charging:
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| Cost of inventories recognised as expense | - | | 666 |
+--------------------------------------------+--------------+--+--------------+
| Operating lease - land and building | 8 | | 95 |
+--------------------------------------------+--------------+--+--------------+
| Auditors' remuneration: | | | |
+--------------------------------------------+--------------+--+--------------+
| Audit services | 30 | | 26 |
+--------------------------------------------+--------------+--+--------------+
| Professional advisory and statutory | 30 | | 20 |
| services | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
+---------------------------------+----------+-----------+-------------+----------+
| | Profit/(loss) before | Net |
| | tax | assets/(liabilities) |
+---------------------------------+----------------------+------------------------+
| | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.07 |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+----------+-----------+-------------+----------+
| By business segment: | | | | |
+---------------------------------+----------+-----------+-------------+----------+
| Consumer electronics | 46 | (25) | (409) | (54) |
+---------------------------------+----------+-----------+-------------+----------+
| Technical services | (441) | (522) | (249) | (3,154) |
+---------------------------------+----------+-----------+-------------+----------+
| Central assets/(liabilities) | - | - | (5,864) | (2,604) |
+---------------------------------+----------+-----------+-------------+----------+
| Net interest payable | (660) | (521) | - | - |
+---------------------------------+----------+-----------+-------------+----------+
| | | | | |
+---------------------------------+----------+-----------+-------------+----------+
| Group profit/(loss) before tax | (1,055) | (1,068) | (6,522) | (5,812) |
| and net liabilities | | | | |
+---------------------------------+----------+-----------+-------------+----------+
| | | | | |
+---------------------------------+----------+-----------+-------------+----------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
+--------+-------------------------------+
| 5. | LOSS BEFORE TAX - continued |
+--------+-------------------------------+
Profit/(loss) from operations:
+--------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| Revenue | 42 | | 1,702 |
+--------------------------------------------+--------------+--+--------------+
| Cost of sales | - | | (1,098) |
+--------------------------------------------+--------------+--+--------------+
| Administrative expenses | (437) | | (1,151) |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| Operating profit/(loss) | (395) | | (547) |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
6.TAX
Analysis of the tax charge
No liability to UK corporation tax arose on ordinary activities for the year
ended 31 December 2008 or for the year ended 31 December 2007.
No liability to corporation tax arose on ordinary activities for the year ended
31 December 2008. For the year ended 31 December 2007 no provision in respect of
corporation tax were made because the Group had sufficient taxable losses
brought forward.
Subject to the agreement with HM Revenue and Customs, the Group has taxable
trading losses at 31 December 2008 for set-off against future trading profits of
GBP13.37m (2007: GBP12.32m).
A deferred tax asset of GBPNil (2007: GBP28,000) arises due to timing
differences between depreciation of fixed assets and capital allowances. As the
Group has large trading losses the recoverability of this asset is uncertain,
therefore the asset is not recognised.
7.LOSS OF PARENT COMPANY
As permitted by Section 230 of the Companies Act 1985, the profit and loss
account of the parent company is not presented as part of these financial
statements. The parent company's loss for the financial year was GBP(677,668)
(2007 - GBP(275,536)).
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
8.EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of
shares adjusted to assume the conversion of all dilutive potential ordinary
shares.
Reconciliations are set out below.
+--------------+---------------+-------------+------------+
| | | 31.12.08 | |
+--------------+---------------+-------------+------------+
| | | Weighted | Per share |
+--------------+---------------+-------------+------------+
| | Earnings | Average | amount |
| | | Number | |
+--------------+---------------+-------------+------------+
| | GBP'000 | Of | Pence |
| | | Shares | |
+--------------+---------------+-------------+------------+
| | | | |
+--------------+---------------+-------------+------------+
| | | | |
+--------------+---------------+-------------+------------+
| Earnings | (1,055) | 136,181,000 | (0.77) |
| attributable | | | |
| to ordinary | | | |
| shareholders | | | |
+--------------+---------------+-------------+------------+
| Effect | - | - | - |
| of | | | |
| dilutive | | | |
| securities | | | |
+--------------+---------------+-------------+------------+
| | | | |
+--------------+---------------+-------------+------------+
| Diluted | | | |
| EPS | | | |
+--------------+---------------+-------------+------------+
| Adjusted | (1,055) | 136,181,000 | (0.77) |
| earnings | | | |
+--------------+---------------+-------------+------------+
| | | | |
+--------------+---------------+-------------+------------+
| | | | |
+--------------+---------------+-------------+------------+
+--------------+--------------+---------------+------------+
| | | | |
+--------------+--------------+---------------+------------+
| | | 31.12.07 | |
+--------------+--------------+---------------+------------+
| | Earnings | Weighted | Per Share |
| | | Average | amount |
| | | Number | |
+--------------+--------------+---------------+------------+
| | GBP'000 | Of Shares | Pence |
+--------------+--------------+---------------+------------+
| | | | |
+--------------+--------------+---------------+------------+
| Earnings | (1,068) | 136,181,000 | (0.78) |
| attributable | | | |
| to ordinary | | | |
| shareholders | | | |
+--------------+--------------+---------------+------------+
| Effect | - | - | - |
| of | | | |
| dilutive | | | |
| securities | | | |
+--------------+--------------+---------------+------------+
| | | | |
+--------------+--------------+---------------+------------+
| Diluted | | | |
| EPS | | | |
+--------------+--------------+---------------+------------+
| Adjusted | (1,068) | 136,181,000 | (0.78) |
| earnings | | | |
+--------------+--------------+---------------+------------+
| | | | |
+--------------+--------------+---------------+------------+
| | | | |
+--------------+--------------+---------------+------------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
9.SUBSIDIARIES
At 31 December 2008 the company held 100% of the allotted equity share capital
of the following:-
+-----------------------------+-+---------------+-+----------+-+----------------+-+
| Name of subsidiary | | Country of | | Class of | | Nature of | |
| undertaking | | registration | | share | | business | |
| | | and | | capital | | | |
| | | incorporation | | held | | | |
+-----------------------------+-+---------------+-+----------+-+----------------+-+
| | | | | | | | |
+-----------------------------+-+---------------+-+----------+-+----------------+-+
| Sansui Electronics (UK) | | England and | | Ordinary | | Distribution | |
| Limited | | Wales | | | | of electronic | |
| | | | | | | products. | |
| | | | | | | | |
+-----------------------------+-+---------------+-+----------+-+----------------+-+
| GEL Engineering Limited | | England and | | Ordinary | | In | |
| | | Wales | | | | liquidation. | |
| | | | | | | | |
+-----------------------------+-+---------------+-+----------+-+----------------+-+
| San Gain Industrial Company | | Hong Kong | | Ordinary | | Group | |
| Limited | | | | | | financing | |
| | | | | | | services. | |
+-----------------------------+-+---------------+-+----------+-+----------------+-+
The subsidiaries as identified above.
The costs of the fixed asset investments have been written off over the previous
periods.
10.LONG TERM CONTRACTS
Long term contracts in progress at the year end are described by the following:
+---------------------------------------------------+-+-----------+-----------+
| 31.12.08 | 31.12.07 |
+-----------------------------------------------------------------+-----------+
| GBP000 | GBP000 |
+-----------------------------------------------------------------+-----------+
| | |
+-----------------------------------------------------------------+-----------+
| Contract revenue recognised as revenue in the | | - | 1,585 |
| period | | | |
+---------------------------------------------------+-+-----------+-----------+
| Contract costs incurred and recognised profits | | - | 1,585 |
| (less recognised losses) to date | | | |
+---------------------------------------------------+-+-----------+-----------+
| Advances received | | - | - |
+---------------------------------------------------+-+-----------+-----------+
| Gross amounts due from customers for contract | | - | 79 |
| work | | | |
+---------------------------------------------------+-+-----------+-----------+
| Gross amounts due to customers for contract work | | - | - |
+---------------------------------------------------+-+-----------+-----------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
11.PROPERTY, PLANT AND EQUIPMENT
No depreciation was charged in the year ended 31 December 2007 as the assets
were classified as "held for sale" per IFRS 5. These assets were valued at the
lower of carrying value and fair value less costs to sell. There was no non
current assets held in the year ended 31 December 2008.
12.TRADE AND OTHER RECEIVABLES
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | Group | | Company |
+---------------------------------+---------------------------+--+----------------------------+
| | 31.12.08 | | 31.12.07 | | 31.12.08 | | 31.12.07 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Current: | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Trade debtors | - | | 237 | | - | | - |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Amounts owed by group | - | | - | | 3 | | 1 |
| undertakings | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Amounts owed by participating | 239 | | 243 | | 39 | | 39 |
| interests | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Amounts recoverable on contract | - | | 79 | | - | | - |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| VAT | 7 | | 30 | | 7 | | - |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Prepayments and accrued income | 1 | | 71 | | 1 | | 7 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | 247 | | 660 | | 50 | | 47 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Non current: | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Other debtors | - | | 11 | | - | | - |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Aggregate amounts | 247 | | 671 | | 50 | | 47 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
13.CASH AND CASH EQUIVALENTS
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | Group | | Company |
+---------------------------------+---------------------------+--+----------------------------+
| | 31.12.08 | | 31.12.07 | | 31.12.08 | | 31.12.07 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Bank deposit account | 5 | | 9 | | 5 | | 1 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Bank accounts | - | | 2 | | - | | - |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | 5 | | 11 | | 5 | | 1 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
Ross Group Plc and its subsidiaries have given an unlimited, multilateral
guarantee dated 27 April 2000 as security to HSBC Bank Plc. In addition HSBC
Bank Plc holds a debenture including fixed charge over all freehold and
leasehold property; first fixed charge over debts, chattels, goodwill and
uncalled capital, both present and future; and first floating charge over all
assets and undertakings both present and future dated 31 August 2001.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
14.TRADE AND OTHER PAYABLES
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | Group | | Company |
+---------------------------------+---------------------------+--+----------------------------+
| | 31.12.08 | | 31.12.07 | | 31.12.08 | | 31.12.07 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Current: | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Trade creditors | - | | 378 | | - | | 42 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Amounts owed to group | - | | - | | 5,276 | | 5,129 |
| undertakings | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Amounts owed to participating | 6,111 | | 5785 | | 181 | | 1 |
| interests | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Social security and other taxes | 2 | | 88 | | 2 | | 2 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Other creditors | 393 | | 7 | | 393 | | - |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| Accruals and deferred income | 68 | | 77 | | 67 | | 25 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| VAT | - | | - | | - | | 35 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | 6,574 | | 6,335 | | 5,919 | | 5,234 |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+------------+--+-----------+--+------------+--+------------+
+----------+----------+----------+----------+----------+--------------+--+--------------+
| 15. | FINANCIAL LIABILITIES - BORROWINGS |
+----------+----------------------------------------------------------------------------+
| | |
+----------+----------------------------------------------------------+
| Group | | | |
+------------------------------------------------------+--------------+--+--------------+
| | 31.12.08 | | 31.12.07 |
+------------------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+------------------------------------------------------+--------------+--+--------------+
| Current: | | | |
+------------------------------------------------------+--------------+--+--------------+
| Other loans | 200 | | 200 |
+------------------------------------------------------+--------------+--+--------------+
| | | | |
+----------+----------+----------+----------+----------+--------------+--+--------------+
Terms and debt repayment schedule
Group
+--------------------------------------------+--------------+--+--------------+
| | | | 1 year or |
| | | | less |
+--------------------------------------------+--------------+--+--------------+
| | | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| Other loans | | | 200 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
16.LEASING AGREEMENTS
+--------------------------------------------+--------------+--+--------------+
| Group | | | |
+--------------------------------------------+--------------+--+--------------+
| Operating leases | 31.12.08 | | 31.12.07 |
+--------------------------------------------+--------------+--+--------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
| Within one year | - | | 95 |
+--------------------------------------------+--------------+--+--------------+
| Between one and five years | - | | 380 |
+--------------------------------------------+--------------+--+--------------+
| In more than 5 years | - | | 190 |
+--------------------------------------------+--------------+--+--------------+
| Operating profit/(loss) | | | |
+--------------------------------------------+--------------+--+--------------+
| | - | | 665 |
+--------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------+--------------+--+--------------+
Due to the disposal of GEL Engineering Ltd's trade and assets on 23 April 2008,
the liability was passed onto
another entity.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
17.FINANCIAL INSTRUMENTS
The group uses financial instruments, other than derivatives, comprising
borrowings, cash, liquid resources and various items, such as trade debtors,
trade creditors etc., that arise directly from its operations. The main purpose
of these financial instruments is to raise finance for the group's operations.
The group did not enter into derivatives transactions such as interest rate
swaps, forward rate agreements and forward foreign currency contracts.
The board of the group considers that the interest rate risk, liquidity risk and
foreign currency risks arising from the group financial instruments are low.
However it reviews policies for managing each of these risks and they are
summarised below. These policies have remained unchanged from previous periods.
It is and has been throughout the year under review, the group policy that no
trading in financial instruments shall be undertaken.
Short-term debtors and creditors
Short-term debtors and creditors have been excluded from all the following
disclosures, other than the currency risk disclosures.
Interest rate risk
The group finances its operations through a mixture of borrowings. The group
exposure to interest rate fluctuations on its borrowings is managed by the use
of floating facilities.
The interest rate exposure of the financial liabilities of the group as at 31
December 2008 was:
+------------------------------+-+--------+--------+-+------------+----------+-----------+
| | | Interest | | |
| | | rate | | |
| | | | | |
+--------------------------------------------------+-+------------+----------+-----------+
| Fixed | | Floating | Zero | Total |
+--------------------------------------------------+-+------------+----------+-----------+
| GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------------------------------+------------+----------+-----------+
| 31.12.08 | | | | | |
+------------------------------+-+-------------------+------------+----------+-----------+
| Loans from shareholder | | - | 4,010 | - | 4,010 |
+------------------------------+-+-------------------+------------+----------+-----------+
| Loans from others | | - | 200 | - | 200 |
+------------------------------+-+-------------------+------------+----------+-----------+
| | | - | - | - | - |
+------------------------------+-+-------------------+------------+----------+-----------+
| | | | | | |
+------------------------------+-+-------------------+------------+----------+-----------+
| | - | 4,210 | - | 4,210 |
+--------------------------------+-------------------+------------+----------+-----------+
| 31.12.07 | | | | |
+--------------------------------+-------------------+------------+----------+-----------+
| Loans from shareholder | | - | 3,651 | - | 3,651 |
+------------------------------+----------+----------+------------+----------+-----------+
| Loans from others | | - | 200 | - | 200 |
+------------------------------+----------+----------+------------+----------+-----------+
| | | | | | |
+------------------------------+----------+----------+------------+----------+-----------+
| | | - | 3,851 | - | 3,851 |
+------------------------------+----------+----------+------------+----------+-----------+
| | | | | | |
+------------------------------+-+--------+--------+-+------------+----------+-----------+
The net bank borrowings bear interest at an average rate of 7% during the year
(2007: 7%).
The overdrawn current account with associates bears interest at rates that
varied in accordance with the rate charged by The Grande Capital Group Limited.
The average rate during 2008 was 6.6% (2007: 6.6%). All loans from this
associate were allocated to a third party, Keniworth Capital on 30th May 2007.
The group relies on a loan from one of its shareholders, Keniworth Capital as
well as support from its associate, The Grande Capital Group Limited, to ensure
sufficient liquidity is available to meet foreseeable needs.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
Maturity of financial liabilities
The group financial liabilities analysis at 31 December 2008 was as follows:
+-----------------------------+-+-----------+-------------+-+-----------+-------------+-+
| | Group | | Company | |
+-------------------------------+-------------------------+-+-------------------------+-+
| 31.12.08 | 31.12.07 | 31.12.08 | 31.12.07 |
+-------------------------------------------+---------------+-----------+---------------+
| GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------------------+---------------+-----------+---------------+
| In less than one year or on demand | | | |
+-------------------------------------------+---------------+-----------+---------------+
| Trade payables | | - | 378 | - | 43 |
+-----------------------------+-+-----------+---------------+-----------+---------------+
| Amounts owed to associated | | 6,111 | 5,785 | 5,457 | 5,129 |
| and group undertakings | | | | | |
+-----------------------------+-+-----------+---------------+-----------+---------------+
| Other financial liabilities | | 463 | 172 | 462 | 62 |
+-----------------------------+-+-----------+---------------+-----------+---------------+
| | | | | | |
+-----------------------------+-+-----------+---------------+-----------+---------------+
| | | 6,574 | 6,335 | 5,919 | 5,234 |
+-----------------------------+-+-----------+---------------+-----------+---------------+
| | | | | | |
+-----------------------------+-+-----------+-------------+-+-----------+-------------+-+
There are no borrowings repayable after one year.
Currency risk
The group does not have foreign investments held in foreign currencies.
The group's exposure to translation and transaction foreign exchange risk is
considered to be low by the board.
100% (2007: 97%) of sales by the group's UK businesses are to customers in
continental Europe and other foreign countries. These sales are invoiced in US
dollars. The board does not consider there is a need for group policy to manage
the currency risk as it considers the risk to be low.
Fair values
Set out below is a comparison of fair values and book values of the group
financial instrument.
+-------------------------------------+-------------------+-------------------+-------------------+-------------------+
| | 31.12.08 | 31.12.07 |
+-------------------------------------+---------------------------------------+---------------------------------------+
| | Book value | Fair value | Book value | Fair value |
+-------------------------------------+-------------------+-------------------+-------------------+-------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------------+-------------------+-------------------+-------------------+-------------------+
| | | | | |
+-------------------------------------+-------------------+-------------------+-------------------+-------------------+
| Primary financial instrument held | | | | |
| to finance the group operations: | | | | |
+-------------------------------------+-------------------+-------------------+-------------------+-------------------+
| Loans from associate | - | - | - | - |
+-------------------------------------+-------------------+-------------------+-------------------+-------------------+
| Loans from shareholder | 4,010 | 4,010 | 3,651 | 3,651 |
+-------------------------------------+-------------------+-------------------+-------------------+-------------------+
| | | | | |
+-------------------------------------+-------------------+-------------------+-------------------+-------------------+
Where available fair value is taken as the market value of similarly traded
financial instruments.
Where market prices are not available for a particular instrument, fair values
have been calculated by discounting cash flows at prevailing interest and
exchange rates.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
18.CALLED UP SHARE CAPITAL
Group and Company
+---------------------------------------------------+----+----+----------+-+----------+-+
| | | | | |
+-------------------------------------------------------------+----------+-+----------+-+
| | 31.12.08 | | 31.12.07 | |
+-------------------------------------------------------------+----------+-+----------+-+
| Authorised share capital: | | GBP000 | | GBP000 | |
+---------------------------------------------------+---------+----------+-+----------+-+
| 195,000,000 Deferred shares of 4.8p each | | 9,360 | 9,360 |
+---------------------------------------------------+---------+------------+------------+
| 300,000,000 Ordinary shares of 1p each | | 3,000 | 3,000 |
+---------------------------------------------------+---------+------------+------------+
| 67,052,306 Deferred shares of 4p each | | 2,682 | 2,682 |
+---------------------------------------------------+---------+------------+------------+
| 15,042 | 15,042 |
+--------------------------------------------------------------------------+------------+
| | | |
+---------------------------------------------------+----+----+----------+-+----------+-+
Allotted, called up and fully paid:
+---------------------------------------------------+-+-----------+-----------+
| 147,745,300 Deferred shares of 4.8p each | | 7,092 | 7,092 |
+---------------------------------------------------+-+-----------+-----------+
| 136,180,924 Ordinary shares of 1p each | | 1,362 | 1,362 |
+---------------------------------------------------+-+-----------+-----------+
| 67,052,306 Deferred shares of 4p each | | 2,682 | 2,682 |
+---------------------------------------------------+-+-----------+-----------+
| | | 11,136 | 11,136 |
+---------------------------------------------------+-+-----------+-----------+
| | | | |
+---------------------------------------------------+-+-----------+-----------+
The ordinary shares have both voting rights and the right to dividends.
The deferred shares have no rights to dividends and no voting rights. On a
winding up the holders of the deferred shares of 4.8p each shall be entitled to
receive 1p per share after the repayment of all amounts payable to the holders
of any other class of share and the payment of GBP5,000 on each ordinary share
for the time being in issue. The deferred shares of 4.8p each are redeemable at
the company's option any time at a price of 1p for each of the deferred shares
held by any member. As the deferred shares rank behind the ordinary shares,
they are recognised as equity.
Managing Capital
The Group's objectives when managing capital are:
* To safeguard the entity's ability to continue as a going concern, so that it can
continue to provide returns for shareholders and benefits for other
stakeholders.
* To provide an adequate return to shareholders by pricing products and services
at an appropriate level taking into account the level of risk.
The Group sets an amount of capital in proportion to risk. The Group manages the
capital structure and makes adjustments to it in the light of changes in
economic conditions and risk characteristics of the underlying assets.
The entity is not subject to any externally imposed capital requirements.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
19.RESERVES
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| Group | | | |
+---------------------------------+----------------------------+--+----------------------------+
| | Accumulated | | Share | | Other | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | Losses | | Premium | | Reserves | | Total |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| At 1 January 2008 | (31,600) | | 2,317 | | 15,384 | | (13,899) |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| Deficit for the year | (1,055) | | - | | - | | (1,055) |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| Foreign exchange loss on | (2,704) | | - | | - | | (2,704) |
| consolidation | | | | | | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| At 31 December 2008 | (35,359) | | 2,317 | | 15,384 | | (17,658) |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| Company | | | | | | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | Accumulated | | Share | | Other | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | Losses | | Premium | | Reserves | | Total |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| At 1 January 2008 | (49,577) | | 2,317 | | 30,938 | | (16,322) |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| Deficit for the year | (678) | | - | | - | | (678) |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| | | | | | | | |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
| At 31 December 2008 | (50,255) | | 2,317 | | 30,938 | | (17,000) |
+---------------------------------+-------------+--+-----------+--+------------+--+------------+
The retained earnings at 31 December 2007 included GBP(3,049,819) from GEL
Engineering Ltd. Since their results are not being consolidated this year, this
figure must be excluded from the retaining earnings and total reserves brought
forward at 1 January 2008.
Other reserves of the Group consist of a capital redemption reserve of GBP1.92m
(2007: GBP1.92m), a non-distributable capital reserve of GBP3.33m (2007:
GBP3.33m), and a special reserve of GBP10.13m (2007: GBP10.13m).
Other reserves of the company consist of a capital redemption reserve of
GBP1.92m (2007: GBP1.92m) and a special reserve of GBP29.02m (2007: GBP29.02m).
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
20.RELATED PARTY DISCLOSURES
The Group carried out the following transactions with related parties during the
year:
+---------------------------------------------------+-+-----------+-----------+
| 31.12.08 | 31.12.07 |
+-----------------------------------------------------------------+-----------+
| GBP000 | GBP000 |
+-----------------------------------------------------------------+-----------+
| | |
+-----------------------------------------------------------------+-----------+
| Sale of goods | | | |
+---------------------------------------------------+-+-----------+-----------+
| Emerson Radio International | | 42 | 48 |
+---------------------------------------------------+-+-----------+-----------+
| | |
+-----------------------------------------------------------------+-----------+
| Purchases of goods | |
+-----------------------------------------------------------------+-----------+
| Emerson Radio International | | - | 69 |
+---------------------------------------------------+-+-----------+-----------+
| | |
+-----------------------------------------------------------------+-----------+
| The Group had the following balances with related parties at | |
| the year end: | |
+-----------------------------------------------------------------+-----------+
| | |
+-----------------------------------------------------------------+-----------+
| 31.12.08 | 31.12.07 |
+-----------------------------------------------------------------+-----------+
| GBP000 | GBP000 |
+-----------------------------------------------------------------+-----------+
| | |
+-----------------------------------------------------------------+-----------+
| Receivables | | | |
+---------------------------------------------------+-+-----------+-----------+
| Sansui Enterprises (HK) Ltd | | 200 | 200 |
+---------------------------------------------------+-+-----------+-----------+
| Akai Europe Ltd | | - | 3 |
+---------------------------------------------------+-+-----------+-----------+
| The Grande Capital Group Ltd | | - | 4 |
+---------------------------------------------------+-+-----------+-----------+
| The Grande Holdings Ltd (Innovative Capital) | | 39 | 36 |
+---------------------------------------------------+-+-----------+-----------+
| 239 | 243 |
+-----------------------------------------------------------------+-----------+
| | |
+-----------------------------------------------------------------+-----------+
| Payables | | | |
+---------------------------------------------------+-+-----------+-----------+
| Akai Sales PTE Ltd | | 25 | - |
| Innovative Capital | | 156 | 1 |
+---------------------------------------------------+-+-----------+-----------+
| Akai Europe Ltd | | - | 7 |
+---------------------------------------------------+-+-----------+-----------+
| Emerson Radio International | | - | 50 |
+---------------------------------------------------+-+-----------+-----------+
| Sansui Sales PTE Ltd | | - | 2 |
+---------------------------------------------------+-+-----------+-----------+
| 181 | 60 |
+-----------------------------------------------------------------+-----------+
| Loans from related parties | |
+-----------------------------------------------------------------+-----------+
| The Grande Capital Group Ltd | | 1,920 | 2,074 |
+---------------------------------------------------+-+-----------+-----------+
| Keniworth Capital Ltd | | 4,010 | 3,651 |
+---------------------------------------------------+-+-----------+-----------+
| 5,930 | 5,725 |
+---------------------------------------------------+-+-----------+-----------+
The Grande Holdings Limited, the ultimate controlling party of Ross Group Plc,
owns all of the above companies with the exception of Keniworth Capital Ltd who
have a 29% holding in Ross Group Plc.
The above transactions were at normal commercial terms.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2008
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
Wholly owed subsidiaries
At the year end Ross Group Plc had the following outstanding balances with it
subsidiaries:
+---------------------------------------------------+-+-----------+-----------+
| 31.12.08 | 31.12.07 |
+-----------------------------------------------------------------+-----------+
| GBP000 | GBP000 |
+-----------------------------------------------------------------+-----------+
| Receivables | |
+-----------------------------------------------------------------+-----------+
| GEL Engineering Ltd | | - | 2,582 |
+---------------------------------------------------+-+-----------+-----------+
| Sansui Electronics (UK) Ltd | | 3 | 1 |
+---------------------------------------------------+-+-----------+-----------+
| 3 | 2,583 |
+-----------------------------------------------------------------+-----------+
| Payables | |
+-----------------------------------------------------------------+-----------+
| San Gain Industrial Co. Ltd | | 5,276 | 5,129 |
+---------------------------------------------------+-+-----------+-----------+
| 5,276 | 5,129 |
+---------------------------------------------------+-+-----------+-----------+
The above transactions were at normal commercial terms.
21.ULTIMATE CONTROLLING PARTY
The directors consider that the ultimate controlling party of Ross Group Plc and
Subsidiaries for 2008 and 2007 is The Grande Holdings Limited, a company which
is incorporated in Bermuda. The Grande Holdings Limited holds, directly and
indirectly, 41% (2007: 41%) of the issued share capital of the company and is
the major shareholder. Copies of the group accounts for The Grande Holdings
Limited can be obtained from its registered office at Bank of Bermuda Building,
6 Front Street, Hamilton HM11, Bermuda.
22.PENSIONS
Money purchase scheme
The group operated a money purchase pension scheme for the benefit of the
directors and employees. The assets of the scheme are administered by trustees
in a fund independent from those of the group. The amount recognised as an
expense for the year was GBPNil (2007: GBP17k).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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