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(Alliance News) - Supply chain management and distribution company Ross Group PLC on Thursday reported that it swung to a loss in the first half of 2019 on no revenue but remained buoyed by the acquisition it completed in January.
In the six months to June 30, the company made a pretax loss of GBP3.2 million on no revenue, in the same period last year it generated a profit of GBP10,000 on a revenue of GBP68,000.
The company said the loss was in line with its expectations as the company is pursuing its "investment strategy".
During the interim, it acquired chitin supply chain management firm Archipelago Aquaculture Group Ltd for an equity consideration of GBP202,731.
Chair Barry Pettitt said: "The board in the first half 2019 has already started the process of integrating the respective start-up businesses acquired within Archipelago's existing operations. This is in order to put in place a vertically integrated organisation that will be in a position to provide a forecast in the foreseeable future of being able to produce high quality Chitin in the years to come."
"In addition, we are also continuing to explore synergistic opportunities to further grow our overall business; both horizontally and vertically - so as to try to become the best in our chosen specialist industry," he added.
The group is supported by short-term borrowings from its larger shareholders, One World Ltd and Excite Enterprises Ltd. In 2018, One World and Excite Enterprises issued Ross Group with convertible loan debentures totalling GBP4.0 million and GBP2.1 million respectively
Like last year, Ross proposed no interim dividend.
Shares in Ross Group were 4.8% higher at 2.20 pence each in London on Thursday afternoon.