HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2017 Financial Summary (6 months to 30 June 2017) | 2017 | | 2016 | | | | £'000 | | £'000 | | Change | | | | | | | Group Revenue | 95 | | 63 | | +51% | | | | | | | Gross Profit/(Loss) | 17 | | 14 | | +21% | | | | | | | Profit/(Loss) before tax | 17 | | 14 | | +21% | | | | | | | Basic earnings per share | 0.01p | | 0.008p | | | | | | | | | Diluted earnings per share | 0.01p | | 0.008p | | |
Chairman's Statement For the half year to 30th June 2017, I am pleased to report that the Ross Group has made a profit of £17,000 on revenues of £95,000. The Board in the first half 2017 has continued with its stringent strategy in maintaining strong cost controls with minimal expenditure, while also increasingly intensifying our extensive endeavours in trying to identify an appropriate merger, acquisition or exceptional business opportunity to be able to present to our loyal and supportive shareholders. Notwithstanding all our efforts to date, it is somewhat satisfying to be able to successfully report that our revenues this first half year are more than sufficient to cover our operating costs as well as any related transactional expenses. |
Business Outlook For the second half of 2017 the Board and myself will continue, along with our team of Advisors and Consultants, to work tirelessly towards trying to successfully search and hopefully conclude a beneficial, strategic business arrangement in order to take our Group into an exciting and new future. Dividend No ordinary interim dividend is proposed after considering the result for the first half of the year, and the existing deficiency of retained reserves (2016 - £Nil). I would very much like to thank the members of the Board of Directors, as well as our contractors, consultants and advisors for all their continued, and highly appreciated, support, expertise and hard work. Finally, as always, I would also like to personally extend my sincere thanks to our extraordinarily loyal shareholders for all their continued patience and understanding. Barry Richard Pettitt Chairman and Chief Executive Officer Approved 30 August 2017 CONDENSED CONSOLIDATED INCOME STATEMENT UNAUDITED | | | | | | | 6 months | | 6 months | | Year Ended | | ended 30 June | | ended 30 June | | 31 Dec | | 2017 | | 2016 | | 2016 | | £'000 | | £'000 | | £'000 | | | | | | | Group Revenue | | | | | | | | | | | | Continuing Operations | 95 | | 63 | | 59 | | | | | | | Discontinuing Operations | 0 | | 0 | | 0 | | | | | | | Operating Profit / (Loss) | | | | | | | | | | | | Continuing Operations | 17 | | 14 | | (62) | | | | | | | Discontinuing Operations | 0 | | 0 | | 0 | | | | | | | | | | | | | Profit before Finance Cost | 17 | | 14 | | (62) | | | | | | | | | | | | | Finance Cost | | | | | | | | | | | | Profit before Taxation | 17 | | 14 | | (62) | | | | | | | Taxation | 0 | | 0 | | 0 | | | | | | | Profit for the Period | 17 | | 14 | | (62) | | | | | | | | | | | | | Earnings per share (pence) | 0.010 | | 0.008 | | (0.030) | Adjusted earnings per share (pence) | 0.010 | | 0.008 | | (0.030) |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY UNAUDITED | | Share Capital | | Accumulated Losses | | Other Reserves | | Total | | | £'000 | | £'000 | | £'000 | | £'000 | Balance at 1 Jan 2016 | | 11,179 | | (35,629) | | 18,187 | | (6,263) | | | | | | | | | | Profit for the period | | | | 14 | | | | 14 | Total recognised income | | | | 14 | | | | 14 | | | | | | | | | | Balance at 30 June 2016 | | 11,179 | | (35,615) | | 18,187 | | (6,249) | | | | | | | | | | Profit/(loss) for the period | | | | (76) | | | | (76) | | | | | | | | | | Total recognised income | | | | (76) | | | | (76) | Balance at 31 Dec 2016 | | 11,179 | | (35,691) | | 18,187 | | (6,325) | | | | | | | | | | | | | | | | | | | Balance at 1 Jan 2017 | | 11,179 | | (35,691) | | 18,187 | | (6,325) | | | | | | | | | | Profit for the period | | | | 17 | | | | 17 | Total recognised income | | | | 17 | | | | 17 | | | | | | | | | | Balance at 30 June 2017 | | 11,179 | | (35,674) | | 18,187 | | (6,308) |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION UNAUDITED | 6 months | | 6 months | | Year Ended | | ended 30 June | | ended 30 June | | 31 Dec | | 2017 | | 2016 | | 2016 | | £'000 | | £'000 | | £'000 | | | | | | | Non Current Assets | 0 | | 0 | | 0 | | | | | | | Current Assets | | | | | | | | | | | | Inventories | 0 | | 0 | | 0 | Trade and Other Receivables | 9 | | 14 | | 13 | Cash and Cash Equivalents | 7 | | 0 | | 1 | | | | | | | | | | | | | | 16 | | 14 | | 14 | | | | | | | Total Assets | 16 | | 14 | | 14 | | | | | | | | | | | | | Equity and Liabilities | | | | | | | | | | | | Shareholders' Equity | | | | | | | | | | | | Share Capital | 11,179 | | 11,179 | | 11,179 | Share Premium Account | 2,803 | | 2,803 | | 2,803 | Other Reserves | 15,384 | | 15,384 | | 15,384 | Retained Earnings | (35,674) | | (35,615) | | (35,691) | | | | | | | | | | | | | Total Equity | (6,308) | | (6,249) | | (6,325) | | | | | | | Non-Current Liabilities | | | | | | Long Term Borrowings (Group) | 6,072 | | 6,072 | | 6,072 | | | | | | | Current Liabilities | | | | | | Trade and Other Payables | 242 | | 181 | | 257 | Bank Overdraft and Loans | 10 | | 10 | | 10 | | | | | | | | | | | | | Total Liabilities | 6,324 | | 6,263 | | 6,339 | | | | | | | Total Equity and Liabilities | 16 | | 14 | | 14 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS UNAUDITED | 6 months | | 6 months | | Year Ended | | ended 30 June | | ended 30 June | | 31 Dec | | 2017 | | 2016 | | 2016 | | £'000 | | £'000 | | £'000 | | | | | | | Net Cash From/(Used In) Operating Activities | 6 | | (4) | | (41) | | | | | | | Net Cash Used In Investing Activities | 0 | | 0 | | 0 | | | | | | | Cash Flows From Financing Activities: | | | | | | Amount introduced by Directors | 0 | | 0 | | 38 | | | | | | | Net Increase/(Decrease) In Borrowings | 0 | | 0 | | 0 | Net Cash Flow From Financing Activities | 6 | | 0 | | 38 | | | | | | | Net Increase/(Decrease) In Cash and Cash Equivalents | 6 | | (4) | | (3) | | | | | | | Cash and Cash Equivalent at Beginning of Period | 1 | | 4 | | 4 | | | | | | | Cash and Cash Equivalent at End of Period | 7 | | 0 | | 1 | | | | | | |
Notes to the Interim Report (1) The interim financial statements have been prepared on the basis of the accounting policies set out in the audited statutory accounts for the year ended 31 December 2016. The financial information contained in these statements for the six months ended 30 June 2017 and 30 June 2016 is unaudited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. (2) Reconciliation of Operating Profit to Net Cash Flows From Operating Activities | 6 months | | 6 months | | Year Ended | | ended 30 June | | ended 30 June | | 31 Dec | | 2017 | | 2016 | | 2016 | | £'000 | | £'000 | | £'000 | | | | | | | Operating Profit/(Loss) On Continuing Activities | 17 | | 14 | | (62) | | | | | | | Depreciation and Amortisation | 0 | | 0 | | 0 | Decrease/(Increase) In Inventories | 0 | | 0 | | 0 | Decrease/(Increase) In Trade and Other Receivables | 4 | | 7 | | 0 | Increase/(Decrease) In Trade and Other Payables | (15) | | (25) | | 21 | | | | | | | Net Cash Generated From/(Used In) Operations | 6 | | (4) | | (41) | | | | | | |
(3) No ordinary interim dividend is proposed for 2017 (2016 - £Nil). (4) The comparative cash flow for the year ended 31 December 2016 has been extracted from the audited accounts. The cash flows for the six months ended 30 June 2017 and 30 June 2016 are unaudited. (5) Reconciliation of Movements In Equity | 6 months | | 6 months | | Year Ended | | ended 30 June | | ended 30 June | | 31 Dec | | 2017 | | 2016 | | 2016 | | £'000 | | £'000 | | £'000 | Share Premium Account | | | | | | Brought Forward | 2,803 | | 2,803 | | 2,803 | Movement | 0 | | 0 | | 0 | Carried Forward | 2,803 | | 2,803 | | 2,803 | | | | | | | Other Reserves | | | | | | Brought Forward | 15,384 | | 15,384 | | 15,384 | Movement | 0 | | 0 | | 0 | Carried Forward | 15,384 | | 15,384 | | 15,384 | | | | | | | Retained Earnings | | | | | | Brought Forward | (35,691) | | (35,629) | | (35,629) | Profit for the Period | 17 | | 14 | | (62) | | | | | | | Carried Forward | (35,674) | | (35,615) | | (35,691) | | | | | | |
(6) The Group is supported by short term borrowings from its larger shareholders and supporters by way of formal agreements. At 30 June 2017 total borrowings from One World Limited were £4,010,000 and £2,062,172 from Excite Enterprises Limited, neither of which is a related party. (7) These Statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the EU. (8) The Interim Report will be sent by mail to all registered shareholders and copies will be available from the Company's registered office at 71-75 Shelton Street, London, WC2H 9JQ. A downloadable copy will also be posted on the Company's website www.ross-group.co.uk Responsibility statement: The Directors confirm that, to the best of their knowledge:- a) the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting'; b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein). On behalf of the Board B Pettitt Chief Executive Officer Ross Group plc Registered Office 71 - 75 Shelton Street London WC2H 9JQ Contact - M Simon, Non Executive Director Tel. - 07887 628152 Email - michael@simonsilvermyer.com Website - www.ross-group.co.uk |
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