TIDMRGP
RNS Number : 1415L
Ross Group PLC
30 April 2010
?
Final Results
Ross Group plc are pleased to file final audited accounts for the year ended
31st December 2009.
A full review for the year is included within the accounts.
ROSS GROUP PLC
ANNUAL REPORT &
FINANCIAL STATEMENTS
31 DECEMBER 2009
ROSS GROUP PLC
FINANCIAL STATEMENTS
for the Year Ended 31 December 2009
+------------------------------+------------------------------+
| Company registration number: | 131902 |
+------------------------------+------------------------------+
| | |
| | |
+------------------------------+------------------------------+
| Registered Office: | 35 Paul Street |
| | London |
| | EC2A 4UQ |
+------------------------------+------------------------------+
| | |
| | |
+------------------------------+------------------------------+
| Directors: | B Pettitt |
| | M J Simon (Appointed 29 |
| | April 2009) |
| | W L Hopkins (Appointed 29 |
| | April 2009) |
| | S C Mehta (Appointed 22 |
| | December 2009) |
| | J C Broadley (Appointed 22 |
| | December 2009) |
| | A C C Ma (Resigned 28 April |
| | 2009) |
| | R Lee Yen Kee (Resigned 28 |
| | April 2009) |
| | M A B Binney(Resigned 28 |
| | April 2009) |
| | |
+------------------------------+------------------------------+
| | |
| Secretary: | M J Simon (Appointed 29 |
| | April 2009) |
| | R Lee Yen Kee (Resigned 29 |
| | April 2009) |
| | |
+------------------------------+------------------------------+
| | |
| Banker: | Coutts & Co |
| | 440 Strand |
| | London |
| | WC2R 0QS |
| | |
+------------------------------+------------------------------+
| | |
| Solicitors: | Charles M Crosthwaite |
| | 30 Thirsk Road |
| | London |
| | SW11 5SX |
+------------------------------+------------------------------+
| | |
| Brokers: | |
| | Capita Registrars |
| | The Registry |
| | 34 Beckenham Road |
| | Beckenham |
| | Kent |
| | BR3 4TU |
+------------------------------+------------------------------+
| | |
+------------------------------+------------------------------+
| | |
| Statutory Auditor: | Everett & Son |
| | Chartered Accountants & |
| | Statutory Auditors |
| | 35 Paul Street |
| | London |
| | EC2A 4UQ |
| | |
+------------------------------+------------------------------+
| | |
| Corporate Advisors: | Brewin Dolphin |
| | 12 Smithfield Street |
| | London |
| | EC1A 9BD |
+------------------------------+------------------------------+
ROSS GROUP PLC & SUBSIDIARIES
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
for the Year Ended 31 December 2009
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| |
+-----------------------------------------------------------------------+
Page
+--------------------------------------+--+
| Chairman's Statement |1 |
+--------------------------------------+--+
+--------------------------------------+--+
| Operating and Financial Review |2 |
+--------------------------------------+--+
+-----------------------------------+-------+
| Report of the Directors | 3-6 |
| | |
| Corporate Governance Statement | 7-9 |
| | |
| Directors' Remuneration Report | 10 |
| | |
| Corporate Social Responsibility | 11 |
| | |
| Report of the Independent | 12-13 |
| Auditors | |
+-----------------------------------+-------+
+--------------------------------------+--+
| Consolidated Income Statement |14 |
+--------------------------------------+--+
| | |
+--------------------------------------+--+
| Consolidated Statement of | 15|
| Comprehensive Income/(Deficit) | |
+--------------------------------------+--+
+--------------------------------------+--+
| Consolidated Statement of Changes in |16 |
| Equity | |
+--------------------------------------+--+
| | |
+--------------------------------------+--+
| Company Statement of Changes in |17 |
| Equity | |
+--------------------------------------+--+
+--------------------------------------+--+
| Consolidated Statement of Financial |18 |
| Position | |
+--------------------------------------+--+
+--------------------------------------+--+
| Company Statement of Financial |19 |
| Position | |
+--------------------------------------+--+
+--------------------------------------+--+
| Consolidated Statement of Cash Flows |20 |
| | |
+--------------------------------------+--+
| | |
+--------------------------------------+--+
| Company Statement of Cash Flows |21 |
+--------------------------------------+--+
+-----------------------------------+----+
| Notes to the Cash Flow Statement | 22 |
| | |
+-----------------------------------+----+
+-----------------------------------+-------+
| Notes to the Financial Statements | 23-34 |
| | |
+-----------------------------------+-------+
+-----------------------------------+----+
| | |
+-----------------------------------+----+
ROSS GROUP PLC & SUBSIDIARIES
CHAIRMAN'S STATEMENT
for the Year Ended 31 December 2009
+------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------+
RESULTS
It gives me great pleasure, as recently elected Chairman, to announce for the
year ending 31st December 2009 that the Ross Group Plc has made a profit before
tax of GBP51,665.23 (Year ended 31 December 2008: loss of GBP1,055,000).
This marks a notable change in the Group's previous performances and recent
results to date. For the first time in many years, the Group has made a profit;
all of which duly reflects the new management's strategy, focus and intention to
restructure and resolve all pre-existing and outstanding issues, endeavour to
eliminate previous management charges, expenses and exposures to prior
liabilities, albeit while equally trying to achieve an efficient and effective
operation at the lowest possible overhead.
At the same time, the Group has been - and still is - specifically seeking to
explore new core-business strategic and synergistic partnerships, alliances and
acquisition opportunities within the consumer electronics, electrical and
energy-related industries, while continuing to conduct its existing and any
future business, wherever possible, on a pre-sold, pre-financed and
pre-determined fixed profit basis.
The Group also anticipates concluding
further business of this nature in various countries during 2010 and is already
in detailed discussions with several suitable companies.
Whilst the
global economy is still facing a number of major challenges and continues to be
depressed in many areas, your Board of Directors are confident there are certain
opportunities, within its core business competency, that are worth exploring
with a view to expanding the Group as a whole into an orderly structured
organisation in the near future. During this period of expected transition, it
is considered that the Group will be able to continue to operate and gradually
grow its own organic business in accordance with its current strategy of being
risk adverse. This is to say, to forego large sales with little profits and lots
of risks, in favour of other smaller service-related businesses that provide
profitable income with little or limited risk.
I would very much like to
thank the recently elected Board of Directors, employees, contractors and
consultants for all their excellent support and hard work in helping turn the
Group into profit. I sincerely hope that during the forthcoming year the Group
will be able to continue to build on its present success and perhaps bring more
optimism to our extraordinarily loyal, long-suffering, shareholders who I would
also like to thank for their patience and understanding during this particular
period.
Barry Richard Pettitt
Chairman & Chief Executive Officer
29 April 2010
ROSS GROUP PLC & SUBSIDIARIES
OPERATING AND FINANCIAL REVIEW
for the Year Ended 31 December 2009
+-----------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------+
Business Review
As can be seen from the accounts, the Group engaged in only minimal trading in
2009, as the new Management Team set about restructuring the Group and began
working on various projects to bring new trading opportunities to it.
The Group at 31 December 2009 consisted of Ross Group plc, and two wholly owned
subsidiaries Sansui Electronics (UK) Ltd and San Gain Limited, a corporation
registered in Hong Kong. In 2010 it is planned to begin trading with a wholly
owned subsidiary that has been established in the USA Ross Group (USA)
Incorporated.
The Directors are satisfied with progress so far and look forward to greatly
increased profitable trading in the expanded Group during 2010.
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 2009
+-----------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------+
The directors present their report with the financial statements of the company
and the group for the year ended 31 December 2009.
PRINCIPAL ACTIVITY
The Group has two operating subsidiaries which concentrate on the following
activities:
- The distribution of consumer electronic branded products
through Sansui (UK) Ltd.
- The distribution of consumer electronic branded products through San Gain Ltd.
STRATEGY
Whilst the Group's loss-making engineering subsidiaries (namely, GEL and Ross
Autotronics) are now in liquidation, the remaining unencumbered subsidiaries,
Sansui Electronics (UK) Ltd and San Gain Ltd, have since continued conducting
and seeking business in both consumer electronics trading, sales agency and
supply chain management activities, however, the Board has deliberately
determined that any future business is to be limited to pre-selling of consumer
electronic products and supply chain management services on a secured and
preferably pre-financed basis whereby costs and profitability can be more
pre-determined.
The Group is also currently in the process of establishing two wholly-owned
subsidiaries in overseas countries, with a view to conducting business in these
particular countries in the future.
The new management of the Group is in the process of actively negotiating with
all its creditors so as to restructure all outstanding loans into a form of
rescheduling and/or equity conversion acceptable to both parties.
If such objectives can be satisfactorily achieved, it is the opinion of the
management that the Group will then be in a better position to consider
proceeding with certain opportunities which are currently being researched and
investigated. We are confident that these will lead to increased revenues,
profitability and shareholder value in the future.
The Board has increased its number of Directors (both executive and
non-executive) in keeping with its new management philosophy of wanting greater
Board supervision and involvement. For the time being no Director's salary will
be more than GBP1 per annum; although appropriate performance related
remuneration will be awarded, subject to Board approval.
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 2009.
DIRECTORS
B R Pettitt (Chief Executive Officer)
Barry Richard Pettitt, aged 50, was appointed to the board on 22 December 2008
as the CEO of the Group and elected as its Chairman and CEO on 28 April 2009. He
has more than 30 years experience within the consumer electronics industry,
during which time he successfully started a specialist supply chain management
services company, ISO International (Holdings) Ltd., which was subsequently
purchased by a Hong Kong Public Company for HK$ 155,000,000 in 2003. In
addition, he has managed a number of Public Company divisions (in the capacities
of President and Managing Director) and recently successfully relisted a Hong
Kong Public Company, Vision Tech Ltd., as its CEO in 2007. Through Premier
Consultants Ltd., a specialist consulting company, of which he was a founding
member and has specialised primarily in working with major consumer electronics
and electrical Public Companies, usually all being based in Hong Kong; where he
has resided since 1990. Prior to that, he was the joint Managing Director of
Ross Consumer International Ltd. and a main board director of the Ross Group
(formerly Ross Consumer Electronic plc) in 1988/89 after which he has continued
to be a shareholder in Ross Group for the last 20 years.
ROSS GROUP PLC & SUBSIDIARIES
REPORT OF THE DIRECTORS
for the Year Ended 31 December 2009
+------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------+
M J Simon (Non Executive Director)
Michael Jonathan Simon, aged 51, was reappointed to the board on 29 April 2009.
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 and a non-executive director of several other companies.
W L Hopkins (Executive Director)
Wade Lionel Hopkins, aged 61, was appointed to the board 22 December 2009. He
has over 35 years of experience in both Consumer Electronics and the Electronic
Components Industry. He has previously worked for the Ross Group as Managing
Director of a subsidiary, Britimpex, in 1988/90.
S C Mehta (Executive Director)
Shashi Mehta, aged 53, was appointed to the Board 22 December 2009. He holds a
BSc (Hons) in Manufacturing and has had a distinguished career in a variety of
industrial and manufacturing trouble-shooting roles. He brings a wealth of
experience and expertise to the Group. He spent many years working for the Ford
Motor Company, and was Operations Manager in Ross Consumer Electronics during
the 1980's.
J C Broadley (Non Executive Director)
Jack Broadley, aged 69, was appointed to the Board on 22 December 2009. Educated
at Rutherglen Academy, he qualified as a CA in 1967. He spent many years working
for Lowe Bingham Matthew in Hong Kong, becoming partner there in 1972 and was a
senior partner during their merger with Coopers (now Price Waterhouse Coopers)
He retired in 1990, and entered into a successful consulting career, taking up
several directorships with public companies in Hong Kong. He is now based in
the UK, and his exceptional breadth of business experience is welcomed within
the Group.
A C C Ma (Former Chairman)
Adrian Chi Chiu Ma, aged 65, 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. Mr
Ma resigned as a director on 28 April 2009.
M A B Binney (Former Chief Executive)
Michael Andrew Barclay Binney, aged 50, 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. Mr Binney resigned as a
director on 28 April 2009.
R Lee Yen Kee (Former Executive Director)
Ruby Lee Yen Kee, aged 48, 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 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. Ms Yen Kee resigned on 28 April 2009.
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.
ROSS GROUP PLC & SUBSIDIARIES
REPORT OF THE DIRECTORS
for the Year Ended 31 December 2009
+------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------+
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.
The total number of shares controlled by B. Pettitt, directly and indirectly
through Prime Growth Enterprises Limited and Vidacos Nominees, at the date of
this report was 34,431,154 (25.29%).
None of the other directors held any shares in the Group.
Substantial shareholdings
As at 31st December 2009 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 | | |
+------------------------------+-----------------+---+--------------------+--+-----------+
| Keniworth Capital Limited | | 40,000,000 | | 29.37% | |
| Prime Growth Enterprises | | 30,567,555 | | 22.45 % | |
| Limited | | | | | |
+----------------------------+-+-----------------+---+--------------------------------+--+
| Escalating Investments | | 22,200,720 | | 16.30 % | |
| Limited | | | | | |
+----------------------------+-+-----------------+---+--------------------------------+--+
| | | | | | |
+----------------------------+-+-----------------+---+--------------------------------+--+
| Barry Pettitt had the following interest through his nominees: | |
+-------------------------------------------------------------------------------------+--+
| Vidacos Nominees | | 3,636,359 | | 2.67% | |
+----------------------------+-+-----------------+---+--------------------------------+--+
| | | | | | |
+----------------------------+-+-----------------+---+--------------------------------+--+
| | | | | | | | |
+----------------------------+-+-----------------+---+--------------------+--+--------+--+
FINANCIAL INSTRUMENTS
Details of the financial instruments used by the Group can be found in note 16
of the accounts.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Annual Report and 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 are required to prepare the Group
the financial statements in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union and Article 4 of the IAS
Regulation and have chosen to prepare the parent company financial statements
under IFRSs as adopted by the EU. Under company law the directors must not
approve the financial statements unless they are satisfied that they 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, International Accounting Standard 1 requires the directors to:
ROSS GROUP PLC & SUBSIDIARIES
REPORT OF THE DIRECTORS
for the Year Ended 31 December 2009
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| |
+------------------------------------------------------------------------+
+--+-----------------------------------------------------------------+----+
| -| select suitable accounting policies and then apply them |
| | consistently; |
+--+----------------------------------------------------------------------+
| -| present information, including accounting policies, in a manner that |
| | provides relevant, reliable, comparable and understandable |
| | information; |
+--+----------------------------------------------------------------------+
| -| make judgements and accounting estimates that are reasonable and |
| | prudent; |
+--+----------------------------------------------------------------------+
| -| provide additional disclosures when compliance with the specific |
| | requirements in IFRSs are insufficient to enable users to understand |
| | the impact of particular transactions, other events and conditions |
| | on the entity's financial position and financial performance; and |
+--+----------------------------------------------------------------------+
| -| prepare the financial statements on the going concern basis | |
| | unless it is inappropriate to presume that the company will | |
| | continue in business. | |
+--+-----------------------------------------------------------------+----+
The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the company's and the group's transactions and
disclose with reasonable accuracy at any time the financial position of the
company and the group and enable them to ensure that the financial statements
comply with the Companies Act 2006. 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.
DIRECTORS' RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
1. the financial statements, prepared in accordance with International
Financial Reporting Standards as adopted by the European Union, give a true and
fair view of the assets, liabilities, financial position and profit or loss of
the Company and the undertakings included in the consolidation taken as a whole;
and
2. the management report, which is incorporated into the Directors' Report
together with the information provided in the Chairman's Statement, the
Operating and Financial Review, includes a fair review of the development and
performance of the business and the position of the Company and the undertakings
included in the consolidation as a whole, together with a description of the
principal risks and uncertainties that they face.
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 418 of the Companies Act 2006) of which the group's auditors
are unaware, and each director has taken all the steps that he ought to have
taken as a director in order to make himself 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:
Mr M J Simon - Secretary
29 April 2010
ROSS GROUP PLC & SUBSIDIARIES
CORPORATE GOVERNANCE STATEMENT
for the Year Ended 31 December 2009
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 currently
consists of five directors. During the year under review the CEO appointed at
the end of 2008, B R Pettitt, was joined by four new directors: W L Wade and M
J Simon, both appointed in April 2009, and J C Broadley and S C Mehta both
appointed in December 2009. Mr Simon was also appointed as Company Secretary in
April. Also in April, A C C Ma, M A B Binney and R Lee Yen Kee all resigned
as Directors, so the company has enjoyed a complete change of management during
2009.
The Chief Executive, Mr Pettitt is normally based overseas, and also serves as
Chairman.
The two non-executive directors, Mr Simon and Mr Broadley, are considered to be
independent as there are no circumstances or relationships as described by Code
provision A.3.1 which apply to their appointments. 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
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 has established separate committees for: Appointments (Chaired by Mr
Broadley); Audit (Chaired by Mr Simon) and Remuneration (Chaired by Mr Simon).
All of the 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.
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.
ROSS GROUP PLC & SUBSIDIARIES
CORPORATE GOVERNANCE STATEMENT
for the Year Ended 31 December 2009
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.
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 results are then reported regularly 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.
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.
ROSS GROUP PLC & SUBSIDIARIES
CORPORATE GOVERNANCE STATEMENT
for the Year Ended 31 December 2009
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 is comprised of the two non-executive directors, Mr Simon
and Mr Broadly, as well as one Executive Director Mr Mehta It 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
Barry Richard Pettitt
Chairman & Chief Executive Officer
29 April 2010
ROSS GROUP PLC & SUBSIDIARIES
DIRECTORS' REMUNERATION REPORT
for the Year Ended 31 December 2009
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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, Mr
Broadley, both non executive directors, and Mr B Pettitt, Chief Executive, to
determine the remuneration of the Board.
The Company policy during the restructuring period throughout 2009 was to pay
directors only a nominal GBP1 salary. This policy will be reconsidered as
occasion arises and as the new business opportunities open to the Group are
realised. The directors feel it would be inappropriate to take any reward until
then.
+----------+------------+--------+----------+--------+--------------+--------------+
| Name | Position | Gross |Benefits |Notice | Total | Total |
| | |Salary | | Pay |Remuneration |Remuneration |
| | | | | | 2009 | 2008 |
+----------+------------+--------+----------+--------+--------------+--------------+
| B R | Chairman/ | GBP1 | Nil | Nil | GBP1 | Nil |
| Pettitt | Chief | | | | | |
| | Executive | | | | | |
+----------+------------+--------+----------+--------+--------------+--------------+
| M J | Non | GBP1 | Nil | Nil | GBP1 | GBP8,000 |
| Simon | executive | | | | | |
| | director | | | | | |
+----------+------------+--------+----------+--------+--------------+--------------+
| W L | Executive | GBP1 | Nil | Nil | GBP1 | Nil |
| Hopkins | Director | | | | | |
+----------+------------+--------+----------+--------+--------------+--------------+
| S C | Executive | Nil | Nil | Nil | Nil | Nil |
| Mehta | Director | | | | | |
+----------+------------+--------+----------+--------+--------------+--------------+
| J C | Non | Nil | Nil | Nil | Nil | Nil |
| Broadley | executive | | | | | |
| | director | | | | | |
+----------+------------+--------+----------+--------+--------------+--------------+
| M A B | Chief | Nil | Nil | Nil | Nil | Nil |
| Binney | Executive | | | | | |
| |(Resigned) | | | | | |
+----------+------------+--------+----------+--------+--------------+--------------+
| R Lee | Executive | Nil | Nil | Nil | Nil | Nil |
| Yen | director | | | | | |
| Kee |(Resigned) | | | | | |
| | | | | | | |
+----------+------------+--------+----------+--------+--------------+--------------+
| A C C | Chairman | Nil | Nil | Nil | Nil | Nil |
| Ma |(Resigned) | | | | | |
| | | | | | | |
+----------+------------+--------+----------+--------+--------------+--------------+
| Total | | GBP3 | Nil | Nil | GBP3 | 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 contracts of the non-executive directors 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 currently 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.
.
ROSS GROUP PLC & SUBSIDIARIES
CORPORATE SOCIAL RESPONSIBILITY (CSR)
for the Year Ended 31 December 2009
+-----------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------+
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
During 2009 the only employees of the company were its directors. However, as
the new business opportunities planned in 2009 begin to be realised in 2010 and
beyond, this will not remain the case.
As a statement of principle, then, the company considers that employees
constitute a company's most valuable asset and therefore it is committed to
ensuring they will be rewarded with the best environment in which to perform
their duties. This environment will be one of equal opportunity and free from
discrimination and harassment. The company is keen to develop a culture which
suits the recruitment and retention of the highest calibre of staff and to
ensure that all staff will be 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 will
be issued with data sheets on the handling of any substances which might be
toxic and will be trained in the correct procedures to follow. The company has a
Health and Safety committee where any potential issues can be raised.
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
+------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------+
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROSS GROUP PLC
We have audited the financial statements of Ross Group Plc & Subsidiaries for
the year ended 31 December 2009 which comprise the Group and Parent Company
Statements of Financial Position, the Group Income Statement, the Group
Statement of Comprehensive Income, the Group and Parent Company Statements of
Cash Flow, the Group and Parent Company Statements of Changes in Equity and the
related notes 1 to 20. The financial reporting framework that has been applied
in their preparation is applicable law and International Financial Reporting
Standards (IFRSs) as adopted by the European Union and as regards the parent
company financial statements, as applied in accordance with the provisions of
the Companies Act 2006.
This report is made solely to the company's members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. 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 explained more fully in the Directors' Responsibilities Statement set out on
pages 5 and 6, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair
view. Our responsibility is to audit the financial statements in accordance with
applicable law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board's (APB's)
Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the
financial statements sufficient to give reasonable assurance that the financial
statements are free from material misstatement, whether caused by fraud or
error. This includes an assessment of: whether the accounting policies are
appropriate to the Group's and the parent company's circumstances and have been
consistently applied and adequately disclosed; the reasonableness of significant
accounting estimates made by the directors; and the overall presentation of the
financial statements.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state of the
Group's and of the parent company's affairs as at 31 December 2009 and of the
Group's profit for the year then ended;
the Group financial statements have been properly prepared in accordance
with IFRSs as adopted by the European Union;
the parent company financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union and as applied in
accordance with the provisions of the Companies Act 2006; and
the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006 and, as regards the group financial
statements, Article 4 of the IAS Regulation.
Emphasis of matter - Going concern
In forming our opinion on the financial statements, which is not qualified, we
have considered the adequacy of the disclosure made in note 1 to the financial
statements concerning the company's ability to continue as a going concern. The
Group's total liabilities exceeded its total assets by GBP6.47million. This
condition, along with the other matters explained in note 1 to the financial
statements, indicate the existence of a material uncertainty which may cast
significant doubt about the company's ability to continue as a going concern.
However, the Chairman has pledged his personal support to cover the overheads of
the Group up to 30th April 2011. The financial statements do not include the
adjustments that would result if the company was unable to continue as a going
concern.
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ROSS GROUP PLC & SUBSIDIARIES
Opinion on other matters prescribed by the Companies Act 2006
In our opinion:
the part of the Directors' Remuneration Report to be audited has been
properly prepared in accordance with the Companies Act 2006; and
the information given in the Directors' Report for the financial year for
which the financial statements are prepared is consistent with the financial
statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our
opinion:
adequate accounting records have not been kept by the parent company, or
returns adequate for our audit have not been received from branches not visited
by us; or
the parent company financial statements and the part of the Directors'
Remuneration Report to be audited are not in agreement with the accounting
records and returns; or
certain disclosures of directors' remuneration specified by law are not
made; or
we have not received all the information and explanations we require for
our audit.
Under the Listing Rules we are required to review:
the directors' statement, set out on page 5, in relation to going
concern; and
the part of the Corporate Governance Statement relating to the company's
compliance with the nine provisions of the June 2008 Combined Code specified for
our review.
Jack Barclay (Senior Statutory Auditor)
For and on behalf of Everett & Son
Chartered Accountants and Statutory Auditors
35 Paul Street
London
EC2A 4UQ
30 April 2010
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
for the Year Ended 31 December 2009
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| |Notes | | 31.12.09 | | 31.12.08 | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | GBP'000 | | GBP'000 | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| CONTINUING OPERATIONS | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Revenue | 2 | | 44 | | 42 | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Cost of sales | | | - | | - | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| GROSS PROFIT | | | 44 | | 42 | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Other operating income | 3 | | 87 | | - | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Administrative expenses | | | (76) | | (437) | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| OPERATING PROFIT/(LOSS) | | | 55 | | (395) | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Net finance costs | 5 | | (3) | | (660) | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| PROFIT/(LOSS) BEFORE | 6 | | 52 | | (1,055) | |
| TAX | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Income tax | 7 | | - | | - | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| PROFIT/(LOSS) FOR THE | | | 52 | | (1,055) | |
| YEAR | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Profit/(loss) | | | | | | |
| attributable to: | | | | | | |
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Equity holders of the | 9 | | 52 | | (1,055) | |
| parent | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Earnings per share | 9 | | | | | |
| expressed | | | | | | |
| in pence per share: | | | | | | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Basic | | | 0.04 | | (0.77) | |
+-------------------------+-------+----+---------------+-----------+----------+--+
| Diluted | | | 0.04 | | (0.77) | |
+-------------------------+-------+----+---------------+-----------+----------+--+
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(DEFICIT)
for the Year Ended 31 December 2009
+--------------------------+----+----+----------+-----------+----------+--+
| | | | 31.12.09 | | 31.12.08 | |
+--------------------------+----+----+----------+-----------+----------+--+
| | | | GBP'000 | | GBP'000 | |
+--------------------------+----+----+----------+-----------+----------+--+
| PROFIT/(LOSS) FOR THE | | | 52 | | (1,055) | |
| YEAR | | | | | | |
+--------------------------+----+----+----------+-----------+----------+--+
| | | | | | | |
+--------------------------+----+----+----------+-----------+----------+--+
| OTHER COMPREHENSIVE | | | - | | - | |
| INCOME | | | | | | |
+--------------------------+----+----+----------+-----------+----------+--+
| | | | | | | |
+--------------------------+----+----+----------+-----------+----------+--+
| TOTAL COMPREHENSIVE | | | | | | |
| INCOME FOR THE YEAR | | | 52 | | (1,055) | |
+--------------------------+----+----+----------+-----------+----------+--+
| | | | | | | |
+--------------------------+----+----+----------+-----------+----------+--+
| | | | | | | |
+--------------------------+----+----+----------+-----------+----------+--+
| Total comprehensive | | | | | | |
| income | | | | | | |
| attributable to: | | | | | | |
+--------------------------+----+----+----------+-----------+----------+--+
| Owners of the parent | 9 | | 52 | | (1,055) | |
+--------------------------+----+----+----------+-----------+----------+--+
+--------------------------+----+----+-------+-----------+-------+-------+
| | | | | | | |
| | | | | | | |
+--------------------------+----+----+-------+-----------+-------+-------+
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2009
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-+-----------+
| | Share | |Accumulated | | Other | | Share | | Total |
| | capital | | losses | | reserves | | premium | | equity |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| Balance at 1 January | 11,136 | | (31,600) | | 15,384 | | 2,317 | | (2,763) |
| 2008 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| Exchange (loss) on | - | | (2,704) | | - | | - | | (2,704) |
| retranslation of | | | | | | | | | |
| subsidiary | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| (Loss) for the year | - | | (1,055) | | - | | - | | (1,055) |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Total Recognised | - | | (3,759) | | - | | - | | (3,759) |
| income for 2008 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Balance at 31 | 11,136 | | (35,359) | | 15,384 | | 2,317 | | (6,522) |
| December 2008 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Balance at 1 January | 11,136 | | (35,359) | | 15,384 | | 2,317 | | (6,522) |
| 2009 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Profit for the year | - | | 52 | | - | | - | | 52 |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Total recognised | - | | 52 | | - | | - | | 52 |
| income for 2009 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Balance at 31 | 11,136 | | (35,307) | | 15,384 | | 2,317 | | (6,470) |
| December 2009 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-+-----------+
ROSS GROUP PLC & SUBSIDIARIES
COMPANY STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2009
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-+-----------+
| | Share | |Accumulated | | Other | | Share | | Total |
| | capital | | losses | | reserves | | premium | | equity |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| Balance at 1 January | 11,136 | | (49,577) | | 30,938 | | 2,317 | | (5,186) |
| 2008 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+---+-----------+
| (Loss) for the year | - | | (678) | | - | | - | | (678) |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Total Recognised | - | | (678) | | - | | - | | (678) |
| income for 2008 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Balance at 31 | 11,136 | | (50,255) | | 30,938 | | 2,317 | | (5,864) |
| December 2008 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Balance at 1 January | 11,136 | | (50,255) | | 30,938 | | 2,317 | | (5,864) |
| 2009 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Profit for the year | - | | 207 | | - | | - | | 207 |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Total recognised | - | | 207 | | - | | - | | 207 |
| income for 2009 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| Balance at 31 | 11,136 | | (50,048) | | 30,938 | | 2,317 | | (5,657) |
| December 2009 | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-------------+
| | | | | | | | | | | |
+-----------------------+----------+----------+-------------+----------+----------+----------+------------+-+-+-----------+
ROSS GROUP PLC & SUBSIDIARIES (REGISTERED NUMBER: 00131902)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 December 2009
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| |Notes | | 31.12.09 | | 31.12.08 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | GBP'000 | | GBP'000 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| ASSETS | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| CURRENT ASSETS | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Trade and other | 11 | | 216 | | 247 | |
| receivables | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash and cash | 12 | | 12 | | 5 | |
| equivalents | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | 228 | | 252 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| TOTAL ASSETS | | | 228 | | 252 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
| EQUITY | | | | | | |
| SHAREHOLDERS' EQUITY | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Called up share capital | 17 | | 11,136 | | 11,136 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Share premium | 18 | | 2,317 | | 2,317 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Other reserves | 18 | | 15,384 | | 15,384 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Retained earnings | 18 | | (35,307) | | (35,359) | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| TOTAL EQUITY | | | (6,470) | | (6,522) | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| LIABILITIES | | | | | | |
| NON-CURRENT LIABILITIES | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Trade and other | 13 | | 6,288 | | 4,010 | |
| payables | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| CURRENT LIABILITIES | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Trade and other | 13 | | 141 | | 2,564 | |
| payables | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Financial liabilities - | 14 | | 200 | | 200 | |
| borrowings | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Provisions | 15 | | 69 | | - | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | 410 | | 2,764 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| TOTAL LIABILITIES | | | 6,698 | | 6,774 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| TOTAL EQUITY AND | | | 228 | | 252 | |
| LIABILITIES | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
The financial statements were approved by the Board of Directors on 29 April
2010 and were signed on its behalf by:
B R Pettitt - Director
S C Mehta - Director
ROSS GROUP PLC & SUBSIDIARIES (REGISTERED NUMBER: 00131902)
COMPANY STATEMENT OF FINANCIAL POSITION
31 December 2009
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| |Notes | | 31.12.09 | | 31.12.08 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | GBP'000 | | GBP'000 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| ASSETS | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| NON-CURRENT ASSETS | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Trade and other | 11 | | 1,920 | | - | |
| receivables | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| CURRENT ASSETS | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Trade and other | 11 | | 175 | | 50 | |
| receivables | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash and cash | 12 | | 12 | | 5 | |
| equivalents | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | 187 | | 55 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| TOTAL ASSETS | | | 2,107 | | 55 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| EQUITY | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| SHAREHOLDERS EQUITY | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Called up share capital | 17 | | 11,136 | | 11,136 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Share premium | 18 | | 2,317 | | 2,317 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Other reserves | 18 | | 30,938 | | 30,938 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Retained earnings | 18 | | (50,047) | | (50,255) | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| TOTAL EQUITY | | | (5,656) | | (5,864) | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| LIABILITIES | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| NON-CURRENT LIABILITIES | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Trade and other | 13 | | 2,278 | | - | |
| payables | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| CURRENT LIABILITIES | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Trade and other | 13 | | 5,416 | | 5,919 | |
| payables | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Provisions | 15 | | 69 | | - | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | 5,485 | | 5,919 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| TOTAL LIABILITIES | | | 7,763 | | 5,919 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| TOTAL EQUITY AND | | | 2,107 | | 55 | |
| LIABILITIES | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
The financial statements were approved by the Board of Directors on 29 April
2010 and were signed on its behalf by:
B R Pettitt - Director
S C Mehta - Director
ROSS GROUP PLC & SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
for the Year Ended 31 December 2009
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| |Notes | | 31.12.09 | | 31.12.08 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | GBP'000 | | GBP'000 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash flows from | | | | | | |
| operating activities | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash generated from | 1 | | (56) | | 656 | |
| operations | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Interest paid | | | (3) | | (660) | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Net cash from operating | | | (59) | | (4) | |
| activities | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash flows from | | | | | | |
| financing activities | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| New loans in year | | | 177 | | - | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Amount lent to related | | | (111) | | - | |
| party | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Net cash from financing | | | 66 | | - | |
| activities | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Increase/(Decrease) in | | | 7 | | (4) | |
| cash and cash | | | | | | |
| equivalents | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash and cash | | | 5 | | 9 | |
| equivalents at | 2 | | | | | |
| beginning of year | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash and cash | | | 12 | | 5 | |
| equivalents at end of | 2 | | | | | |
| year | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
ROSS GROUP PLC & SUBSIDIARIES
COMPANY STATEMENT OF CASH FLOWS
for the Year Ended 31 December 2009
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| |Notes | | 31.12.09 | | 31.12.08 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | GBP'000 | | GBP'000 | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash flows from | | | | | | |
| operating activities | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash generated from | 1 | | (206) | | 485 | |
| operations | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Interest paid | | | (3) | | (481) | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Net cash from operating | | | (209) | | 4 | |
| activities | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash flows from | | | | | | |
| financing activities | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| New loans in year | | | 2,097 | | - | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Amounts lent to | | | (1,881) | | - | |
| subsidiaries | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Net cash from financing | | | 216 | | - | |
| activities | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Increase/(Decrease) in | | | 7 | | 4 | |
| cash and cash | | | | | | |
| equivalents | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash and cash | | | 5 | | 1 | |
| equivalents at | 2 | | | | | |
| beginning of year | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
| Cash and cash | | | 12 | | 5 | |
| equivalents at end of | 2 | | | | | |
| year | | | | | | |
+-------------------------+-------+----+----------+-----------+----------+--+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the Year Ended 31 December 2009
+-----------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------+
+----+------------------------------------------------------------------+
| 1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAX TO CASH GENERATED |
| | FROM OPERATIONS |
+----+------------------------------------------------------------------+
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Group | | | | | 31.12.09 | | 31.12.08 |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| | | | | | GBP'000 | | GBP'000 |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Profit/(Loss) before tax | | | | | 52 | | (1,055) |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Finance costs | | | | | 3 | | 660 |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Creditor balance written | | | | | (393) | | - |
| back | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Bad debt written off | | | | | 200 | | - |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| | | | | | (138) | | (395) |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Decrease in inventories | | | | | - | | 3 |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| (Increase)/Decrease in | | | | | (393) | | 424 |
| trade and other receivables | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Increase in trade and other | | | | | 200 | | 239 |
| payables | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Elimination of GEL 2007 | | | | | - | | 385 |
| closing balances | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| Cash generated from | | | | | (56) | | 656 |
| operations | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
| | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+--------------------------+
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| Company | | | | | 31.12.09 | | 31.12.08 |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| | | | | | GBP'000 | | GBP'000 |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| Profit/(Loss) before tax | | | | | 207 | | (678) |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| Finance costs | | | | | 3 | | 481 |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| Creditor balance written | | | | | (393) | | - |
| back | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| | | | | | (183) | | (197) |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| Decrease in inventories | | | | | - | | - |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| Increase in trade and | | | | | (163) | | - |
| other receivables | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| Increase in trade and other | | | | | 140 | | 682 |
| payables | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| Cash generated from | | | | | (206) | | 485 |
| operations | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | |
+-----------------------------+----------+----------+----------+----------+----------+----------+-----------+
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the statements of cash flows in respect of cash and
cash equivalents are in respect of these balance sheet amounts:
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | Group | | Company |
+-------------------------------+-----------------------+--+-----------------------+
| Year ended 31 December 2009 | | | | | | | |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | 31.12.09 | | 1.1.09 | | 31.12.09 | | 1.1.09 |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | | | | | | | |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| Cash and cash equivalents | 12 | | 5 | | 12 | | 5 |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | | | | | | | |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| Year ended 31 December 2008 | | | | | | | |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | 31.12.08 | | 1.1.08 | | 31.12.08 | | 1.1.08 |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | | | | | | | |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| Cash and cash equivalents | 5 | | 9 | | 5 | | 1 |
+-------------------------------+----------+--+---------+--+----------+--+---------+
| | | | | | | | |
+-------------------------------+----------+--+---------+--+----------+--+---------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the Year Ended 31 December 2009
+-----------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------+
1. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared in accordance with International
Accounting Standard on a going concern basis. In addition to complying IFRSs as
adopted by the European Union, IFRSs as issued by the International Accounting
Standards Board (IASB) have also applied.
The adoption of all relevant new Standards issued by the International
Accounting Standards Board in the current period has not led to any changes in
the Group's accounting policies or financial statements, apart from the adoption
of IAS 1 (Revised) and IFRS 8. The directors have adopted these policies to the
extent they feel is appropriate.
At the date of authorisation of these financial statements a number of
Standards, amendments and Interpretations, issued by the IASB and not applied in
these financial statements, were in issue but not yet effective (and in some
cases had not yet been adopted by the EU) none of which will have a significant
impact on the financial statements.
Going concern
Although the Group has incurred significant losses in the past resulting in
negative retained earnings and total liabilities exceed total assets the
Directors feel the going concern basis is appropriate. The change in management
structure that has taken place during the financial year has led to a new
strategy being adopted by the Group and will allow them to take advantage of
new, profitable business opportunities.
Basis of consolidation
The group financial statements consolidate those of the company and of its
subsidiary undertakings drawn up to 31 December 2009. Profits or losses on
intra-group transactions and intra-group balances 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.
Revenue recognition
Revenue is the total amount receivable by the group for goods supplied and
services provided to third parties, excluding VAT.
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.
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.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2009
+-----------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------+
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 or at an historical Sterling equivalent if more appropriate. 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.
Leased assets
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.
2. SEGMENTAL REPORTING
The directors feel that due to the small amount of trading that has taken place
during the year it is not possible to identify any segments and as a result
cannot follow IFRS 8. The entire turnover was generated overseas and relates to
the distribution of consumer electronic branded products. The directors will
review this assessment next year.
3. OTHER OPERATING INCOME
+---------------------------------------+----------+-----+----------+
| | 31.12.09 | | 31.12.08 |
+---------------------------------------+----------+-----+----------+
| | GBP'000 | | |
| | | | GBP'000 |
+---------------------------------------+----------+-----+----------+
| | | | |
+---------------------------------------+----------+-----+----------+
| Sale of trademark | 25 | | - |
+---------------------------------------+----------+-----+----------+
| Sundry receipts | 3 | | - |
+---------------------------------------+----------+-----+----------+
| Sale of contract | 59 | | - |
+---------------------------------------+----------+-----+----------+
| | | | |
+---------------------------------------+----------+-----+----------+
| | 87 | | - |
+---------------------------------------+----------+-----+----------+
| | | | |
| | | | |
+---------------------------------------+----------+-----+----------+
4. EMPLOYEES AND DIRECTORS
Directors' emoluments in the current year totalled GBP3 (2008: GBP8,000). There
were no other staff costs incurred in the current or previous year.
+-------------------------------------+
| |
+-------------------------------------+
The average number of employees during the year was as follows:
+---------------------------------------+----------+-----+----------+
| | 31.12.09 | | 31.12.08 |
+---------------------------------------+----------+-----+----------+
| | | | |
+---------------------------------------+----------+-----+----------+
| Management | 3 | | 4 |
+---------------------------------------+----------+-----+----------+
5. NET FINANCE COSTS
+---------------------------------------+----------+-----+----------+
| | 31.12.09 | | 31.12.08 |
+---------------------------------------+----------+-----+----------+
| | GBP'000 | | |
| | | | GBP'000 |
+---------------------------------------+----------+-----+----------+
| Finance costs: | | | |
+---------------------------------------+----------+-----+----------+
| Loan interest | 3 | | 660 |
+---------------------------------------+----------+-----+----------+
| | | | |
+---------------------------------------+----------+-----+----------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2009
+-----------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------+
6. (PROFIT)/LOSS BEFORE TAX
The profit/(loss) before tax is stated after charging:
+------------------------------------------+----------+--+-----------+
| | 31.12.09 | | 31.12.08 |
+------------------------------------------+----------+--+-----------+
| | GBP'000 | | |
| | | | GBP'000 |
+------------------------------------------+----------+--+-----------+
| | | | |
+------------------------------------------+----------+--+-----------+
| Operating lease - land and building | 53 | | 8 |
+------------------------------------------+----------+--+-----------+
| Auditors' remuneration: | | | |
+------------------------------------------+----------+--+-----------+
| Audit services | 45 | | 30 |
+------------------------------------------+----------+--+-----------+
| Professional advisory and statutory | 3 | | 30 |
| services | | | |
+------------------------------------------+----------+--+-----------+
| |
| The operating lease charge in the current year is the cost |
| involved in releasing the Group from its lease of the property in |
| Southampton. This matter has now been settled and the Group has |
| no other lease commitments. |
+------------------------------------------+----------+--+-----------+
+--------------------------------+---------------+-----------------+
| | | |
| | | |
+--------------------------------+---------------+-----------------+
7. TAX
Analysis of the tax charge
No liability for UK corporation tax arose on ordinary activities for the year
ended 31 December 2009 or for the year ended 31 December 2008. The Group's
profit for the financial year was offset against the trading losses brought
forward.
Subject to the agreement with HM Revenue and Customs, the Group has taxable
trading losses at 31 December 2009 for set-off against future trading profits of
GBP11.57m (2008: GBP13.37m).
A deferred tax asset of GBP3.47m (2008: GBP3.74m) arises due to the large
trading losses described above. As it is not known when the Group will be able
to make use of these losses the asset has not been recognised in the financial
statements.
8. RESULT OF PARENT COMPANY
As permitted by Section 408 of the Companies Act 2006, the profit and loss
account of the parent company is not presented as part of these financial
statements. The parent company's profit for the financial year was GBP206,864
(2008: GBP(677,688) loss).
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2009
+------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------+
9. 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.
+-------------------------------------+----------+-------------+-+-------+-+
| | | 31.12.09 | | |
+-------------------------------------+----------+-------------+---------+-+
| | | Weighted | Per | |
| | | | share | |
+-------------------------------------+----------+-------------+---------+-+
| | Earnings | Average | amount | |
| | | Number | | |
+-------------------------------------+----------+-------------+---------+-+
| | GBP'000 | Of Shares | Pence | |
+-------------------------------------+----------+-------------+---------+-+
| | | | | |
+-------------------------------------+----------+-------------+---------+-+
| Basic EPS | | | | |
+-------------------------------------+----------+-------------+---------+-+
| Earnings attributable to ordinary | 52 | 136,181,000 | 0.04 | |
| shareholders | | | | |
+-------------------------------------+----------+-------------+---------+-+
| Effect of dilutive securities | - | - | - | |
+-------------------------------------+----------+-------------+---------+-+
| | | | | |
+-------------------------------------+----------+-------------+---------+-+
| Diluted EPS | | | | |
+-------------------------------------+----------+-------------+---------+-+
| Adjusted earnings | 52 | 136,181,000 | 0.04 | |
+-------------------------------------+----------+-------------+---------+-+
| | | | | |
+-------------------------------------+----------+-------------+---------+-+
| | | | | |
+-------------------------------------+----------+-------------+---------+-+
| | | | |
+-------------------------------------+----------+---------------+---------+
| | | 31.12.08 | |
+-------------------------------------+----------+---------------+---------+
| | | Weighted | Per |
| | Earnings | Average | Share |
| | | Number | amount |
+-------------------------------------+----------+---------------+---------+
| | GBP'000 | Of Shares | Pence |
+-------------------------------------+----------+---------------+---------+
| Basic EPS | | | |
+-------------------------------------+----------+---------------+---------+
| Earnings attributable to ordinary | (1,055) | 136,181,000 | (0.77) |
| shareholders | | | |
+-------------------------------------+----------+---------------+---------+
| Effect of dilutive securities | - | - | - |
+-------------------------------------+----------+---------------+---------+
| | | | |
+-------------------------------------+----------+---------------+---------+
| Diluted EPS | | | |
+-------------------------------------+----------+---------------+---------+
| Adjusted earnings | (1,055) | 136,181,000 | (0.77) |
+-------------------------------------+----------+---------------+---------+
| | | | | | |
+-------------------------------------+----------+-------------+-+-------+-+
+-------------------------------------+---------+-------------+--------+
| | | | |
+-------------------------------------+---------+-------------+--------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2009
+------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------+
10. SUBSIDIARIES
At 31 December 2009 the company held 100% of the allotted equity share capital
of the following:-
+--------------------------+-+---------------+-+----------+-+--------------+-+
| Name of subsidiary | | Country of | | Class | | Nature of | |
| undertaking | | registration | | of | | business | |
| | | and | | share | | | |
| | | incorporation | | capital | | | |
| | | | | held | | | |
+--------------------------+-+---------------+-+----------+-+--------------+-+
| | | | | | | | |
+--------------------------+-+---------------+-+----------+-+--------------+-+
| Sansui Electronics (UK) | | England and | | Ordinary | | Distribution | |
| Limited | | Wales | | | | of consumer | |
| | | | | | | electronic | |
| | | | | | | branded | |
| | | | | | | products | |
+--------------------------+-+---------------+-+----------+-+--------------+-+
| San Gain Industrial | | Hong Kong | | Ordinary | | Distribution | |
| Company Limited | | | | | | of consumer | |
| | | | | | | electronic | |
| | | | | | | branded | |
| | | | | | | products | |
+--------------------------+-+---------------+-+----------+-+--------------+-+
The costs of the fixed asset investments have been written off over the previous
periods.
11. TRADE AND OTHER RECEIVABLES
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | Group | | Company |
+----------------------------+--------------------------------+----------+--------------------------------+
| | 31.12.09 | | 31.12.08 | | 31.12.09 | | 31.12.08 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Current: | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Amounts owed by group | - | | - | | 3 | | 3 |
| undertakings | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Amounts owed by | - | | 239 | | - | | 39 |
| participating interests | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Other debtors | 111 | | - | | 111 | | - |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| VAT | - | | 7 | | - | | 7 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Prepayments and accrued | 105 | | 1 | | 61 | | 1 |
| income | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | 216 | | 247 | | 175 | | 50 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Non current: | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Amount owed by group | - | | - | | 1,920 | | - |
| undertaking | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Aggregate amounts | 216 | | 247 | | 2,095 | | 50 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
12. CASH AND CASH EQUIVALENTS
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | Group | | Company |
+----------------------------+--------------------------------+----------+--------------------------------+
| | 31.12.09 | | 31.12.08 | | 31.12.09 | | 31.12.08 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Bank account | 12 | | 5 | | 12 | | 5 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2009
+-------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------+
13. TRADE AND OTHER PAYABLES
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | Group | | Company |
+----------------------------+--------------------------------+----------+--------------------------------+
| | 31.12.09 | | 31.12.08 | | 31.12.09 | | 31.12.08 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Current: | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Trade creditors | 48 | | - | | 47 | | - |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Amounts owed to group | - | | - | | 5,276 | | 5,276 |
| undertakings | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Amounts owed to | - | | 2,101 | | - | | 181 |
| participating interests | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Other creditors | 23 | | 393 | | 23 | | 393 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Accruals and deferred | 70 | | 70 | | 70 | | 69 |
| income | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | 141 | | 2,564 | | 5,416 | | 5,919 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Non current: | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Amounts owed to | 4,226 | | 4,010 | | 216 | | - |
| participating interests | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Other creditor | 2,062 | | - | | 2,062 | | - |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | 6,288 | | 4,010 | | 2,278 | | - |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Aggregate amounts | 6,429 | | 6,574 | | 7,694 | | 5,919 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
+-+-----+---+----------+-------------------------------+------------+--+------------+--------------+
| | 14. | FINANCIAL LIABILITIES - BORROWINGS |
+-+-----+------------------------------------------------------------------------------------------+
| | | | | |
| Group | | | | |
+------------------------------------------------------+------------+--+------------+--------------+
| | 31.12.09 | | 31.12.08 | |
+------------------------------------------------------+------------+--+------------+--------------+
| | GBP'000 | | | |
| | | | GBP'000 | |
+------------------------------------------------------+------------+--+------------+--------------+
| Current: | | | | |
+------------------------------------------------------+------------+--+------------+--------------+
| Other loans | 200 | | 200 | |
+------------------------------------------------------+------------+--+------------+--------------+
| | | | | |
+------------------------------------------------------+------------+--+------------+--------------+
| | | | | | | | | |
+-+-----+---+----------+-------------------------------+------------+--+------------+--------------+
Terms and debt repayment schedule:
Group
+-------------------------------------+-----------+----------+-----------+
| | | | 1 year or |
| | | | less |
+-------------------------------------+-----------+----------+-----------+
| | | | |
| | | | GBP'000 |
+-------------------------------------+-----------+----------+-----------+
| Other loans | | | 200 |
+-------------------------------------+-----------+----------+-----------+
| | | | |
+-------------------------------------+-----------+----------+-----------+
15. PROVISIONS
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | Group | | Company |
+----------------------------+--------------------------------+----------+--------------------------------+
| | 31.12.09 | | 31.12.08 | | 31.12.09 | | 31.12.08 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
| Provision for litigation | 69 | | - | | 69 | | - |
+----------------------------+----------+----------+----------+----------+----------+----------+----------+
This amount relates to an ongoing claim brought by a former employee of
Derbyshire Carriage and Wagon Company Limited (Ross Group plc's predecessor) who
claims exposure to asbestos between 1963 and 1964 caused his cancer. This is a
reliable estimate of the amount that will have to be paid out. This amount is
expected to be paid within one year.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2009
+-------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------+
16. FINANCIAL INSTRUMENTS
The Group uses financial instruments, 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's
exposure to interest rate fluctuations has been limited by the fact that the
loans now do not incur interest or they have a fixed interest rate.
The interest rate exposure of the financial liabilities of the group as at 31
December 2009 was:
+---------------------+--------+----------+--------+--------+
| | Interest | | |
| | rate | | |
| | | | |
+------------------------------+----------+--------+--------+
| | Fixed | Floating | Zero | Total |
+---------------------+--------+----------+--------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------+--------+----------+--------+--------+
| 31.12.09 | | | | |
+---------------------+--------+----------+--------+--------+
| Loans from | 216 | - | 4,010 | 4,226 |
| shareholder | | | | |
+---------------------+--------+----------+--------+--------+
| Loans from others | - | - | 2,200 | 2,200 |
+---------------------+--------+----------+--------+--------+
| | | | | |
+---------------------+--------+----------+--------+--------+
| | | | | |
+---------------------+--------+----------+--------+--------+
| | 216 | - | 6,210 | 6,426 |
+---------------------+--------+----------+--------+--------+
| 31.12.08 | | | | |
+---------------------+--------+----------+--------+--------+
| Loans from | - | 4,010 | - | 4,010 |
| shareholder | | | | |
+---------------------+--------+----------+--------+--------+
| Loans from others | - | 200 | - | 200 |
+---------------------+--------+----------+--------+--------+
| | | | | |
+---------------------+--------+----------+--------+--------+
| | - | 4,210 | - | 4,210 |
+---------------------+--------+----------+--------+--------+
| | | | | |
+---------------------+--------+----------+--------+--------+
The loan of GBP216,000 from Prime Growth Enterprises Limited bears interest at
6%.
The Group relies on a loan from its shareholders, Keniworth Capital Limited and
Prime Growth Enterprises 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 2009
+------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------+
Maturity of financial liabilities
The group financial liabilities analysis at 31 December 2009 was as follows:
+--------------------------+----------+------------------------------------+-----------+-+-------------+-----------+-+
| | Group | | Company | |
+-------------------------------------+------------------------------------------------+-+-------------------------+-+
| 31.12.09 | 31.12.08 | 31.12.09 | 31.12.08 |
+--------------------------------------------------------------------------+-------------+-------------+-------------+
| GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------------------------------------------------------------+-------------+-------------+-------------+
| In less than one year or on demand | | | |
+--------------------------------------------------------------------------+-------------+-------------+-------------+
| Trade payables | | 48 | - | 47 | - |
+--------------------------+----------+------------------------------------+-------------+-------------+-------------+
| Amounts owed to | | | 2,101 | 5,276 | 5,457 |
| associated and group | | | | | |
| undertakings | | | | | |
+--------------------------+----------+------------------------------------+-------------+-------------+-------------+
| Other financial | | 93 | 463 | 93 | 462 |
| liabilities | | | | | |
+--------------------------+----------+------------------------------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------+----------+------------------------------------+-------------+-------------+-------------+
| | | 141 | 2,564 | 5,416 | 5,919 |
+--------------------------+----------+------------------------------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------+----------+------------------------------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------------+----------+------------------------------------+-----------+-+-------------+-----------+-+
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
| In more than one year: | | | | | | | |
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
| Amounts owed to | 4,226 | | 4,010 | | 216 | | - |
| associated undertakings | | | | | | | |
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
| Loan from related party | 2,062 | | - | | 2,062 | | - |
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
| | | | | | | | |
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
| | 6,288 | | 4,010 | | 2,278 | | - |
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
| | | | | | | | |
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
| Aggregate amounts | 6,429 | | 6,574 | | 7,694 | | 5,919 |
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
| | | | | | | | |
+--------------------------+--------+----------+-------+----------+-------+----------+-------+
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% of the Group's worldwide income in the year was invoiced in Sterling. As a
result 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
The Board considers that the fair values of the Group's borrowings are equal to
their book values.
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2009
+------------------------------------------------------------------------+
| |
+------------------------------------------------------------------------+
17. CALLED UP SHARE CAPITAL
Group and Company
+---------------------------------------------+-+----------+----------+-+----------+-+
| | | | | |
+----------------------------------------------------------+----------+-+----------+-+
| |31.12.09 | |31.12.08 | |
+----------------------------------------------------------+----------+-+----------+-+
| Authorised share capital: | | GBP000 | | GBP000 | |
+---------------------------------------------+------------+----------+-+----------+-+
| 195,000,000 Deferred shares of 4.8p each | | 9,360 | 9,360 |
+---------------------------------------------+------------+------------+------------+
| Nil Ordinary shares of 1p each (2008: | | - | 3,000 |
| 300,000,000) | | | |
+---------------------------------------------+------------+------------+------------+
| 67,052,306 Deferred shares of 4p each | | 2,682 | 2,682 |
+---------------------------------------------+------------+------------+------------+
| 300,000,000 Ordinary shares of 0.1p each | | 300 | - |
| (2008: Nil) | | | |
+---------------------------------------------+------------+------------+------------+
| 2,700,000,000 Deferred shares of 0.1p each | | 2,700 | - |
| (2008: Nil) | | | |
+---------------------------------------------+------------+------------+------------+
| 15,042 | 15,042 |
+-----------------------------------------------------------------------+------------+
| | | |
+-----------------------------------------------+-----------------------+------------+
| | | | | | | |
+---------------------------------------------+-+----------+----------+-+----------+-+
Allotted, called up and fully paid:
+---------------------------------------------+-+----------+----------+
| 147,745,300 Deferred shares of 4.8p each | | 7,092 | 7,092 |
+---------------------------------------------+-+----------+----------+
| Nil Ordinary shares of 1p each (2008: | | - | 1,362 |
| 136,180,924) | | | |
+---------------------------------------------+-+----------+----------+
| 67,052,306 Deferred shares of 4p each | | 2,682 | 2,682 |
+---------------------------------------------+-+----------+----------+
| 136,180,924 Ordinary shares of 0.1p each | | 136 | - |
| (2008: Nil) | | | |
+---------------------------------------------+-+----------+----------+
| 1,225,628,316 Deferrred shares of 0.1p each | | 1,226 | - |
| (2008: Nil) | | | |
+---------------------------------------------+-+----------+----------+
| | | 11,136 | 11,136 |
+---------------------------------------------+-+----------+----------+
| | | | |
+---------------------------------------------+-+----------+----------+
The ordinary shares of 1p each were subdivided into ordinary shares of 0.1p each
and nine of the said resultant shares were re designated and classified as
deferred shares of 0.1p each by the passing of a resolution on 22nd December
2009.
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. On a winding up the holders of
deferred shares of 0.1p each shall be entitled to receive 0.1p per share after
the payment of GBP5,000 on each ordinary share for the time being in issue but
shall not confer the right to participate in any surplus.
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. The
deferred shares of 0.1p each are transferable at the company's option at any
time to any person at a total price of 1p for all of the shares held by a
shareholder. The deferred shares of 0.1p each are redeemable or cancellable at
the company's option at any time at a total price of 1p for all of the shares
held by a shareholder.
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 2009
+-------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------+
18. RESERVES
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| Group | | | |
+------------------------+----------------------------------+----------+--------------------------------+
| | Accumulated | | Share | | Other | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | Losses | | Premium | | Reserves | | Total |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | | | | | | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| At 1 January 2009 | (35,359) | | 2,317 | | 15,384 | | (17,658) |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| Profit for the year | 52 | | - | | - | | 52 |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | | | | | | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| At 31 December 2009 | (35,307) | | 2,317 | | 15,384 | | (17,606) |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | | | | | | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | | | | | | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| Company | | | | | | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | Accumulated | | Share | | Other | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | Losses | | Premium | | Reserves | | Total |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | | | | | | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| At 1 January 2009 | (50,255) | | 2,317 | | 30,938 | | (17,000) |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| Profit for the year | 207 | | - | | - | | 207 |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| | | | | | | | |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
| At 31 December 2009 | (50,048) | | 2,317 | | 30,938 | | (16,793) |
+------------------------+-------------+----------+---------+----------+----------+----------+----------+
Other reserves of the Group consist of a capital redemption reserve of GBP1.92m
(2008: GBP1.92m), a non-distributable capital reserve of GBP3.33m (2008:
GBP3.33m), and a special reserve of GBP10.13m (2008: GBP10.13m).
Other reserves of the company consist of a capital redemption reserve of
GBP1.92m (2008: GBP1.92m) and a special reserve of GBP29.02m (2008: GBP29.02m).
19. RELATED PARTY DISCLOSURES
The Group carried out the following transactions with related parties during the
year:
+---------------------------------------------+-+----------+----------+
| 31.12.09 | 31.12.08 |
+----------------------------------------------------------+----------+
| GBP000 | GBP000 |
+----------------------------------------------------------+----------+
| | |
+----------------------------------------------------------+----------+
| Sale of goods | | | |
+---------------------------------------------+-+----------+----------+
| Emerson Radio International | | - | 42 |
+---------------------------------------------+-+----------+----------+
| | |
+---------------------------------------------+-+----------+----------+
ROSS GROUP PLC & SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2009
+---------------------------------------------+-+----------+----------+-----+
| |
+---------------------------------------------------------------------------+
| 19. RELATED PARTY DISCLOSURES - continued | | |
| | | |
| The Group had the following balances with related | | |
| parties at the year end: | | |
+----------------------------------------------------------+----------+-----+
| | | |
+----------------------------------------------------------+----------+-----+
| 31.12.09 | 31.12.08 | |
+----------------------------------------------------------+----------+-----+
| GBP000 | GBP000 | |
+----------------------------------------------------------+----------+-----+
| | | |
+----------------------------------------------------------+----------+-----+
| Receivables | | | | |
+---------------------------------------------+-+----------+----------+-----+
| Ross Group (USA) Inc. | | 111 | - | |
+---------------------------------------------+-+----------+----------+-----+
| Sansui Enterprises (HK) Limited | | - | 200 | |
+---------------------------------------------+-+----------+----------+-----+
| The Grande Holdings Limited (Innovative | | - | 39 | |
| Capital) | | | | |
+---------------------------------------------+-+----------+----------+-----+
| | | | | |
+---------------------------------------------+-+----------+----------+-----+
| | | 111 | 239 | |
+---------------------------------------------+-+----------+----------+-----+
| | | |
+----------------------------------------------------------+----------+-----+
| Payables | | | | |
+---------------------------------------------+-+----------+----------+-----+
| Akai Sales PTE Limited | | - | 25 | |
| Innovative Capital | | - | 156 | |
+---------------------------------------------+-+----------+----------+-----+
| | | | | |
+---------------------------------------------+-+----------+----------+-----+
| | | - | 181 | |
+---------------------------------------------+-+----------+----------+-----+
| | | |
+----------------------------------------------------------+----------+-----+
| Loans from related parties | | |
+----------------------------------------------------------+----------+-----+
| Keniworth Capital Limited | | 4,010 | 4,010 | |
+---------------------------------------------+-+----------+----------+-----+
| Prime Growth Enterprises Limited | | 216 | - | |
+---------------------------------------------+-+----------+----------+-----+
| | | | | |
+---------------------------------------------+-+----------+----------+-----+
| | | 4,226 | 4,010 | |
+---------------------------------------------+-+----------+----------+-----+
| | | |
+---------------------------------------------+-+----------+----------+-----+
Barry Pettitt, the Chairman and Chief Exective Officer of Ross Group Plc, owns
Prime Growth Enterprises Limited and Ross Group (USA) Inc. Keniworth Capital
Limited own 29% of the ordinary share capital in Ross Group Plc. The remaining
companies are owned by The Grande Holdings Limited, the ultimate controlling
party at 31st December 2008.
Barry Pettitt has pledged to cover the overheads of the Group until 30th April
2011.
The above transactions were at normal commercial terms.
Wholly owed subsidiaries
At the year end Ross Group Plc had the following outstanding balances with it
subsidiaries:
+---------------------------------------------+-+----------+----------+
| 31.12.09 | 31.12.08 |
+----------------------------------------------------------+----------+
| GBP000 | GBP000 |
+----------------------------------------------------------+----------+
| Receivables | |
+----------------------------------------------------------+----------+
| San Gain Industrial Company Limited | | 1,920 | - |
+---------------------------------------------+-+----------+----------+
| Sansui Electronics (UK) Limited | | 3 | 3 |
+---------------------------------------------+-+----------+----------+
| | | | |
+---------------------------------------------+-+----------+----------+
| | | 1,923 | 3 |
+---------------------------------------------+-+----------+----------+
| | |
+----------------------------------------------------------+----------+
| Payables | |
+----------------------------------------------------------+----------+
| San Gain Industrial Co. Limited | | 5,276 | 5,276 |
+---------------------------------------------+-+----------+----------+
| | | | |
+---------------------------------------------+-+----------+----------+
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 2009
+-----------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------+
20. ULTIMATE CONTROLLING PARTY
The directors consider that there is no ultimate controlling party of Ross Group
Plc and subsidiaries for 2009; however Barry Pettitt, by virtue of his position
as CEO within the Group and his 25% shareholding, exerts a significant
influence.
The ultimate controlling party in 2008 was The Grande Holdings Limited, a
company which is incorporated in Bermuda. The Grande Holdings Limited held,
directly and indirectly, 41% of the issued share capital of the company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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