Ross Grp. Regulatory News (RGP)

30 Apr 2007 17:16

Ross Group PLC30 April 2007 ROSS GROUP PLC & SUBSIDIARIES CHAIRMAN'S STATEMENTfor the Year Ended 31 December 2006 RESULTS The Group result, before tax, for the year ended 31 December 2006 was a loss of£914,000 (Year ended 31 December 2005: loss £1,507,000). The reason for this andthe steps taken to improve the situation are described below. The turnoverimproved (2006 £1,152,000; 2005 £586,000) due to an increase in activity in boththe engineering sector and consumer electronics division. LITIGATION SETTLEMENT The Directors have for several years been attempting to recover a substantialdebtor which was written off in the group accounts in a previous year. This wasconnected to a legal action brought by the Liquidator of VSI Automation(Technology) Limited against various parties. The Directors reported last yearan anticipated recovery of a sum between £150,000 and £500,000 includinginterest and excluding costs. £230,000 has now been legally agreed as the netsettlement and is expected to be received in April 2007. This amount has beentaken to the Profit and Loss Account. 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 Boards response to the lack of success in winning orders in the Engineeringbusiness in 2005 by changing the top level management has proved to be correct.The experienced Managing Director recruited at the end of 2005 is bidding forand winning profitable orders which are forecast by the end of 2007 to bring theDivision into profit. This is later than intended but is forecast to have longerterm benefits through the steady build up of successful repeat orders with majorcustomers. This was reflected in the repeat order of £1.4m for the trainingsimulator that was expected in the first half of 2006 but contracted for in thesecond half. To increase successful bid activity therefore both the sales andengineering teams have been strengthening in 2006 and this will continue into2007. Sansui Electronics (UK) Ltd presented a wider range of branded goods todistributors in 2006, TV shopping channels and major retail supermarket chainsacross UK and Europe. Branded products were successfully presented at IFA showBerlin September 2006 with high level of consumer interest. This indicated afavourable position going forward into 2007. The Company will aggressively pushfor market position in the lead up to sales peak in the latter half of 2007. 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 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 ROSS GROUP PLC & SUBSIDIARIES CONSOLIDATED INCOME STATEMENTfor the Year Ended 31 December 2006 31.12.06 31.12.05 £'000 £'000CONTINUING OPERATIONSRevenue 1,152 586 Cost of sales (809) (660) ------ ------ GROSS PROFIT/(LOSS) 343 (74) Other operating income 2 5Administrative expenses (1,106) (1,075) Litigation settlement 230 - Finance costs (383) (363) ------ ------ LOSS BEFORE TAX (914) (1,507) Tax - - ------ ------ LOSS FOR THE YEAR (914) (1,507) ====== ====== Attributable to:Equity holders of the parent (914) (1,507) ====== ====== Earnings per share expressedin pence per share:Basic -0.67 -1.11Diluted -0.67 -1.11 ====== ====== ROSS GROUP PLC & SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the Year Ended 31 December 2006 Share capital Retained earnings Other reserves Total equity £'000 £'000 £'000 £'000 Balance at 1January 2005 11,136 (31,164) 17,711 (2,317) Reservetransfer 6 (6) Exchange(loss) onretranslationof subsidiary 3 3Profit for theyear (1,507) (1,507) ------- ------- ------- --------Totalrecognisedincome for2005 (1,504) (1,504) ------- ------- ------- --------Balance at 31December 2005 11,136 (32,662) 17,705 (3,821) ======= ======= ======= ======== Balance at 1January 2006 11,136 (32,662) 17,705 (3,821) Reservetransfer 4 (4) Exchange gainonretranslationof subsidiary (8) (8)(Loss) for theyear (914) (914) ------- ------- ------- --------Totalrecognisedincome for2006 (922) (922) ------- ------- ------- --------Balance at 31December 2006 11,136 (33,580) 17,701 (4,743) ======= ======= ======= ======== ROSS GROUP PLC & SUBSIDIARIES CONSOLIDATED BALANCE SHEET31 December 2006 31.12.06 31.12.05 £'000 £'000ASSETSNON-CURRENT ASSETSProperty, plant and equipment 30 27 ------- ------ CURRENT ASSETSInventories 11 645Trade and other receivables 948 591Cash and cash equivalents 12 7 ------- ------ 971 1,243 TOTAL ASSETS 1,001 1,270 ======= ====== EQUITY AND LIABILITIES SHAREHOLDERS' EQUITYCalled up share capital 11,136 11,136Share premium 2,317 2,317Revaluation reserve - 4Other reserves 15,384 15,384Profit and loss account (33,580) (32,662) ------- ------ Total shareholders' equity (4,743) (3,821) ------- ------ TOTAL EQUITY (4,743) (3,821) CURRENT LIABILITIESTrade and other payables 5,744 5,088Financial liabilities - borrowing Bank overdrafts - 3 ------- ------ 5,744 5,091 ------- ------ TOTAL LIABILITIES 5,744 5,091 ------- ------ TOTAL EQUITY AND LIABILITIES 1,001 1,270 ======= ====== ROSS GROUP PLC & SUBSIDIARIES CASH FLOW STATEMENTfor the Year Ended 31 December 2006 31.12.06 31.12.05 Notes £'000 £'000Cash flows from operating activitiesCash generated from operations 1 39 81Interest paid (2) (3)Finance costs (9) (79) ------ ------- Net cash from operating activities 28 (1) ------ ------- Cash flows from investing activitiesPurchase of tangible fixed assets (20) (6) ------ ------- Net cash from investing activities (20) (6) ------ ------- Cash flows from financing activitiesCapital repayments in the year - (2) ------ ------- Net cash from financing activities - (2) ------ ------- ------ ------- Increase/(Decrease) in cash and cashequivalents 8 (9)Cash and cash equivalents at beginningof year 2 4 13 ------ ------- Cash and cash equivalents at end of year 2 12 4 ====== ======= ROSS GROUP PLC & SUBSIDIARIES NOTES TO THE CASH FLOW STATEMENTfor the Year Ended 31 December 2006 1. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES 31.12.06 31.12.05 £'000 £'000Operating loss (761) (1,144)Depreciation charges 17 23Foreign exchange profit onconsolidation - 1Foreign exchange loss on consolidation (8) -Decrease/(Increase) in inventories 634 (263)(Increase)/Decrease in trade and otherreceivables (127) 160Increase in trade and other payables 284 1,304 ------ ------ Net cash inflow from operatingactivities 39 81 ====== ====== 2. CASH AND CASH EQUIVALENTS The amounts disclosed on the cash flow statement in respect of cash and cashequivalents are in respect of these balance sheet amounts: Year ended 31 December 2006 31.12.06 01.01.06 £'000 £'000Cash and cash equivalents 12 7Bank overdrafts - (3) ------ ------ 12 4 ====== ======Year ended 31 December 2005 31.12.05 01.01.05 £'000 £'000Cash and cash equivalents 7 13Bank overdrafts (3) - ------ ------ 4 13 ====== ====== ROSS GROUP PLC & SUBSIDIARIES SECTION 240 STATEMENTfor the Year Ended 31 December 2006 1. The financial information set out above does not constitute thecompany's statutory accounts for the year ended 31 December 2006 nor for thecomparative period, but is derived from those accounts. Statutory accounts forthe year ended 31 December 2005 have been delivered to the Registrar ofCompanies and those for the year ended 31 December 2006 will be deliveredfollowing the company's annual general meeting. The auditors have reported onthe accounts for 2005: their report was unqualified and did not containstatements under s237 (2) or (3) Companies Act 1985. 2. The total number of shares in issue did not change during 2005 and2006. 3. The figures for earnings per share and the adjusted earnings per shareare the same for 2006 (and 2005). 4. No ordinary interim or final dividend is proposed. 5. A nil liability to Corporation Tax has been assessed for the year dueto tax losses brought forward. 6. The Accounting Policies set out in the Financial Statements for theYear Ended 31 December 2005 have been applied during the preparation of thefinancial information contained in this statement. 7. A copy of the Financial Statements will be available on request fromRoss 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 27th April 2007 Ross Group PLC Registered office: 35 Paul Street, London. EC2A 4UQ Email: Info@ross-group.co.ukWebsite: www.ross-group.co.ukTelephone: 02380 675500Fax: 02380 675555 This information is provided by RNS The company news service from the London Stock Exchange