Ross Grp. Regulatory News (RGP)

Ross Group Plc Half Yearly Financial Report

HALF YEARLY FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2009

Chairman's Statement

The result for the Group for the six months ended 30 June 2009 was an operating loss of £143,000 before tax (June 2008: loss £262,000). Turnover from continuing operations decreased to £25,000 (June 2008: £42,000) due to the Board's decision to restructure the consumer electronics division.

Business Review

Whilst the Group's engineering subsidiary GEL Engineering Limited (GEL) went into administration on 23 April 2008, Sansui Electronics (UK) Limited (Sansui) and San Gain Industrial Company Limited (San Gain) continue to operate in the business of both consumer electronics trading and sales agency activities. 

During the period under review, apart from the sale of the "Ross" brand to Nexus Industries Limited for £25,000, the Directors temporarily limited the business of Sansui and San Gain whilst the restructuring of the Group and its respective businesses is being finalised and a more positive global business outlook is perceived.

The Board has deliberately determined that any present or future activities are to be limited to pre-selling of consumer electronic products and supply chain management services on a secured and preferably pre-financed basis.

Business Outlook

The Group is currently in the process of incorporating two wholly-owned subsidiaries in overseas countries, with a view to conducting business in these countries in the future.

The Group is also in the process of actively negotiating with its major financial supporters so as to restructure outstanding debt into a form acceptable to all parties.

If these objectives are achieved to the satisfaction of the Board, the Group will then be in a better position to consider certain opportunities, which are currently being investigated and researched, in order to increase revenues and provide profitability.

It is the intention of the Board to continue to increase the number of directors (both executive and non-executive) in keeping with its new management approach of wanting greater Board supervision and involvement. All Directors' salaries will not be more than £1 per annum, although appropriate performance-related remuneration will be awarded, subject to Board approval.

Dividend

No ordinary interim dividend is proposed after considering the result for the first half of the year, and the continuing deficiency on retained reserves (2008 - £Nil).

Barry Richard Pettitt

Chairman and Chief Executive Officer

Approved 28 August 2009

The six months ending 30 June 2008 include GEL's results as a discontinued operation, however they are not included in the year ending 31 December 2008 as they were not consolidated.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY UNAUDITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION UNAUDITED

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS UNAUDITED

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 2008.

The financial information contained in these statements for the six months ended

30 June 2009 and 30 June 2008 is unaudited and does not constitute statutory

accounts as defined in section 240 of the Companies Act 1985.

 (2) Reconciliation of Operating Loss to Net Cash Flows From Operating

Activities

(3) No ordinary interim dividend is proposed for 2009 (2008-£Nil).

(4) The comparative cash flow for the year ended 31 December 2008 has been

extracted from the audited accounts. The cash flows for the six months ended 30

June 2009 and 30 June 2008 are unaudited.

(5) Reconciliation of Movements In Equity

The retained earnings carried forward from 31 December 2007 included a deficit of £(3,049,819) from GEL Engineering Ltd. Since their results were not consolidated in 2008, nor this year, this figure was excluded from the retained earnings brought forward at 1 January 2008.

(6) The Group is supported by short term borrowings from its larger

shareholders and supporters by way of formal agreements. At 30 June 2009 total borrowings from Keniworth Capital Ltd were £3,554,316 and £1,883,141 from the Group's supporters. Keniworth Capital Ltd holds 29% of the issued ordinary share capital.

(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 Everett and Son,

35 Paul Street, London, EC2A 4UQ. 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

35 Paul Street

London EC2A 4UQ

Contact - M Simon, Non Executive Director

Tel. - 020 7628 0857

Email - michael@simonsilvermyer.com

Website - www.ross-group.co.uk