Ross Grp. Regulatory News (RGP)

28 Apr 2006 14:46

Ross Group PLC28 April 2006 ROSS GROUP PLC Preliminary Announcement by Ross Group PLC of the Results for the year ended 31December 2005 CHAIRMAN'S STATEMENT RESULTS The Group result, before tax, for the year ended 31 December 2005 was a loss of£1,503,000 (Year ended 31 December 2004: profit £15,000). The reason for thisand the steps taken to reverse the situation are described below. The turnoveralso fell considerably (2005 £581,000; 2004 £2,447,000) due to a fall off inactivities in the engineering sector. DIVISIONS OF THE GROUP The Group trades through its two UK operating subsidiaries which concentrate onthe following activities:- -The design and manufacturing of engineering projects through GEL EngineeringLtd. -The distribution of TVs and electrical branded products through SansuiElectronics (UK) Ltd. STRATEGY The Board responded to the lack of success in winning orders in the Engineeringbusiness by changing the top level management. The Company conducted a highprofile search to secure the services of an experienced Managing Director with aproven track record in this business sector. This took longer than expected, butthe Board believes that the investment in time will be rewarded by a turnaroundin the business by the end of 2006. The most significant factor in the lack ofactivity in 2005 was the postponement of an MOD order for high valuecontainerised training solutions. The Company is expecting to bid for theamended requirement during 2006. The strengthening of the sales team in 2005 andearly 2006 has resulted in an upturn in bid activity and effort is beingconcentrated on turning these opportunities into sales orders. A repeat order inthe region of £1.4m for a training simulator is expected in the first half of2006. Sansui Electronics (UK) Ltd acquired a significant amount of branded stock forresale towards the end of the year. The company is pleased to report it hassuccessfully sold over half of this during the first quarter of 2006. Thecompany is looking to expand its efforts with particular drive behind the saleof LCD TVs. The Group has used its Hong Kong based subsidiary, San Gain Industrial CompanyLtd, to handle the group financing from the main shareholder's financialservices company. The Directors will request that the main shareholder considersformally returning the financing to a long term basis as part of any potentialacquisition. The Board cannot recommend a payment of a dividend. APPRECIATION I would like to take this opportunity to thank our Employees, Shareholders,Bankers, Advisers, Suppliers and Customers for their continuing support in adifficult year. A C C Ma Chairman 28 April 2006 ROSS GROUP PLC Preliminary Announcement by Ross Group PLC of the Results for the year ended 31December 2005 Consolidated Income Statement for the Year Ended 31 December 2005 Year Ended Year Ended Dec 2005 Dec 2004 Unaudited Audited £000's £000'sRevenue Continuing Operations 581 2,362Discontinued Operations 0 85Total Revenue 581 2,447Operating (Loss)/Profit Continuing Operations (1,141) 237Discontinued Operations 0 6(Loss)/Profit Before Finance Cost (1,141) 243Finance Cost (362) (228)(Loss)/Profit before taxation (1,503) 15Taxation 0 0(Loss)/Profit for the Year (1,503) 15Earnings per share - basic and diluted (1.10p) 0.01pAdjusted earnings per share - basic and diluted (1.10)p 0.01p ROSS GROUP PLC Preliminary Announcement by Ross Group PLC of the Results for the year ended 31December 2005 Consolidated Balance Sheet as at 31 December 2005 As At 31 As At 31 Dec 2005 Dec 2004 Unaudited Audited £000's £000'sAssets Non Current Assets 28 45Current Assets Inventories 681 382Trade and Other Receivables 593 752Cash and Cash Equivalents 4 12TOTAL ASSETS 1,306 1,191EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY Share Capital 11,136 11,136Share premium Account 2,317 2,317Other Reserves 15,388 15,394Retained Earnings (32,667) (31,164) (3,826) (2,317)NON-CURRENT LIABILITIES Long Term Borrowings (Group) 2,374Current Liabilities Trade and Other Payables 1,439 834Finance Liabilities - Short Term Borrowings (Group) 3,693 300TOTAL LIABILITIES 5,132 3,508TOTAL EQUITY AND LIABILITIES 1,306 1,306 Reconciliation of Movements in Shareholders Funds As At 31 As At 31 Dec 2005 Dec 2004 Unaudited Audited £000's £000's (Loss)/Profit for the financial period (1,503) 15Exchange loss on retranslation of subsidiary (6) (4)Net additions to funds (1,509) 11Opening shareholders funds (2,317) (2,328)Closing shareholders funds (3,826) (2,317) ROSS GROUP PLC Preliminary Announcement by Ross Group PLC of the Results for the year ended 31December 2005 Consolidated Cash Flow Statement for the Year Ended 31 December 2005 Year Ended Year Ended Dec 2005 Dec 2004 Unaudited Audited £000's £000'sConsolidated Cash Flow Operating (Loss)/Profit from Continuing Activities (1,141) 237Depreciation and Amortisation 16 24(Increase) in Inventories (299) (6)Decrease/(Increase) in Trade and Other Receivables 159 (85)Increase/(Decrease) in Trade and Other Payables 605 (94)Net Cash Generated from Continuing OperatingActivities (660) 76Net Cash (Outflow) from Discontinued Activities 0 (223)Net Cash (Outflow) from Combined Activities (660) (147)Returns on Investments and Servicing of Finance Interest paid (362) (228)Net Cash (Outflow) from Returns on Investments andServicing of Finance (362) (228)Taxation 0 0Capital expenditure and financial Investment Net Purchases of Tangible Fixed Assets (5) (17)Financing Long Term Loans (2,374) 0Short Term Loans 3,393 300Capital Element of Finance Leases 0 (2)Net Cash Inflow/(Outflow) from Financing 1,019 298Increase/(Decrease) in Cash (8) (94)Analysis of Changes In Net Debt (Decrease)/Increase in Cash (8) (94)New Loans (net) (1,019) (300)Cash outflow from finance lease 2 3Movement In Debt for the Year (1,025) (391)Net Debt at beginning of period (2,664) (2,273)Net Debt at end of period (3,689) (2,664) ROSS GROUP PLC Preliminary announcement by Ross Group PLC of the Results for the year ended 31December 2005 Notes 1. The financial information set out above does not constitute the company's statutory accounts for the year ended 31 December 2005 nor for the comparative period, but is derived from those accounts. Statutory accounts for the year ended 31 December 2004 have been delivered to the Registrar of Companies and those for the year ended 31 December 2005 will be delivered following the company's annual general meeting. The auditors have reported on the accounts for 2004: their report was unqualified and did not contain statements under s237 (2) or (3) Companies Act 1985. 2. The total number of shares in issue did not change during 2004 and 2005 3. The figures for earnings per share and the adjusted earnings per share are the same for 2005 (and 2004). 4. No ordinary interim or final dividend is proposed. 5. A nil liability to Corporation Tax has been assessed for the year due to tax losses brought forward. 6. The Accounting Policies set out in the Financial Statements for the Year Ended 31 December 2004 have been applied during the preparation of the financial information contained in this statement. 7. A copy of the Financial Statements will be available on request from Ross Group plc, Brunel Road, Totton, Southampton SO40 3YS. This announcement has been agreed by the company's auditors, Everett and Son, 35Paul Street, London, EC2A 4UQ and was approved by the Board of Directors of RossGroup plc on 28 April 2006 Ross Group PLC Registered office: 35 Paul Street, London EC2A 4UQ Email: Info@ross-group.co.uk Website: www.ross-group.co.uk Telephone: 02380 675500 Fax: 02380 675555 This information is provided by RNS The company news service from the London Stock Exchange