Ross Grp. Regulatory News (RGP)

28 Sep 2007 12:17

Ross Group PLC28 September 2007 Ross Group plc Released 28 September 2007 INTERIM RESULTSFOR THE SIX MONTHS ENDED 30 JUNE 2007 Chairman's statement The result for the Group for the six months ended 30 June 2007 was an operatingloss of £427,000 before tax (June 2006 loss £541,000). Whilst the result for thehalf year is disappointing, we envisage that the second half of the year will beprofitable along with a good order book carried forward into 2008. Business review The engineering activities operated through GEL Engineering Ltd (GEL) have seena slower than expected start to 2007 partly due to delays caused by customerchanges and partly due to slower than expected order intake. The first half ofthe year saw activities centre around 3 major projects, including a highfidelity Hercules Loadmaster trainer and 2 export vehicle supply contracts forNorth Africa (both of which are due to be completed before the end of thefinancial year). GEL is also currently negotiating a repeat vehicle supplycontract for North Africa at a value of around £2.1m. All three of the currentcontracts will contribute towards a rising output figure in Q3 & Q4 2007, withthe Hercules trainer also giving flows of gross margin during 2008 along withthe repeat vehicle supply contract. The improved opening order book andsignificant ongoing prospects, especially with North Africa, is expected toresult in greatly improved turnover in 2008 compared to 2007. Sansui Electronics (UK) Ltd (Sansui) has seen a small number of sales in thehalf year under review. These are from stock of electronic consumer productacquired from an associated company. It is intended for the company to makefurther use of this relationship and grow the sales by expanding the range ofavailable products and increased market awareness. The Directors continue to pursue the development of other opportunities for theGroup with a view to bringing new activities into the business profile and theDirectors are confident that a suitable package of potential opportunities willbe put together to allow the re-generation of the Group. Business Outlook The output derived from the recent sales orders will not be sufficient to turnthe half year loss into a full year profit. However the increase in value of thesales order book and ongoing prospects carried into 2008 should, combined withthe activities of Sansui, push the Group back in to profit. This could beenhanced further by the potential significant changes in the structure andoperation of the Group. Dividend No ordinary interim dividend is proposed after considering the result for thefirst half of the year, and the continuing deficiency on retained reserves (2006- £Nil). A C C Ma Chairman Approved 28 September 2007 GROUP INCOME STATEMENT UNAUDITED 6 Months 6 Months Year Ended Ended Ended 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000Group RevenueContinuing Operations 1,009 592 1,152 Operating (Loss)Continuing Operations (199) (404) (531) (Loss) Before Finance Cost (199) (404) (531) Finance Cost (228) (137) (383) (Loss) Before Taxation (427) (541) (914) Taxation 0 0 0 (Loss) For The Period (427) (541) (914) Earnings Per Share (pence) (0.31) (0.39) (0.67)Adjusted Earnings Per Share (pence) (0.31) (0.39) (0.67) GROUP BALANCE SHEET UNAUDITED 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Non Current Assets 31 21 30 Current AssetsInventories 691 388 11Trade and Other Receivables 367 404 948Cash and Cash Equivalents 29 99 12 -------- -------- -------- 1,088 891 971 -------- -------- --------Total Assets 1,118 912 1.001 -------- -------- -------- Equity and LiabilitiesShareholders' EquityShare Capital 11,136 11,136 11,136Share Premium Account 2,317 2,317 2,317Other Reserves 15,384 15,387 15,384Retained Earnings (34,007) (33,203) (33,580) -------- -------- --------Total Equity (5,170) (4,363) (4,743) Non-Current LiabilitiesLong Term Borrowings (Group) 0 0 0 Current LiabilitiesTrade and Other Payables 6,288 5,275 5,744Bank Overdraft and Loans 0 0 0 -------- -------- -------- 6,288 5,275 5,744 Total Liabilities 6,288 5,275 5,744 -------- -------- --------Total Equity and Liabilities 1,118 912 1,001 -------- -------- -------- GROUP CASH FLOW STATEMENT UNAUDITED 6 Months 6 Months Year Ended Ended Ended 30 June 2007 30 June 2006 31Dec. 2006 £'000 £'000 £'000Net Cash (Used in) OperatingActivities 25 96 28 Cash Flows From Investing ActivitiesPurchase Of Plant and Machinery (8) (1) (20) --------- --------- ---------Net Cash Used In InvestingActivities (8) (1) (20) Cash Flows From Financing ActivitiesNet Increase In Borrowings 0 0 0Repayment of Capital Element ofFinance Lease 0 0 0 --------- --------- ---------Net Cash Flow Used In FinancingActivities 0 0 0 --------- --------- ---------Net Increase/(Decrease) In CashAnd Cash Equivalents 17 95 8 Cash and Cash Equivalents atbeginning of Period 12 4 4 --------- --------- ---------Cash and Cash Equivalents at endof Period 29 99 12 ========= ========= ========= Notes to the Interim Report (1) The interim financial statements have been prepared on the basis of theaccounting policies set out in the audited statutory accounts for the year ended31 December 2006.The financial information contained in these statements for the six months ended30 June 2007 and 30 June 2006 is unaudited and does not constitute statutoryaccounts as defined in section 240 of the Companies Act 1985. (2) Reconciliation of Operating Loss to Net Cash Flows From OperatingActivities 6 Months 6 Months Year Ended Ended Ended 30 June 2007 30 June 2006 31Dec. 2006 £'000 £'000 £'000Operating (Loss) On ContinuingActivities (199) (404) (761)Depreciation And Amortisation 7 8 17Decrease/(Increase) In Inventories (680) 256 634Decrease/(Increase) In Trade AndOther Receivables 581 187 (127)(Decrease) In Trade And OtherPayables 316 49 265 --------- --------- -------- Cash Generated From Operations 25 96 28 ========= ========= ======== (3) No ordinary interim dividend is proposed for 2007 (2006-£nil). Notes to the Interim Report (Continued) (4) The comparative cash flow for the year ended 31 December 2006 has beenextracted from the audited accounts. The cash flows for the six months ended 30June 2007 and 30 June 2006 are unaudited. (5) Reconciliation of Movements In Equity 6 Months 6 Months Year Ended Ended Ended 30 June 2007 30 June 2006 31 Dec 2006 £'000 £'000 £'000Share premium Account - BroughtForward 2,317 2,317 2,317Movement 0 0 0Carried Forward 2,317 2,317 2,317 Other Reserves - Brought Forward 15,384 15,388 15,388(Depreciation) 0 (1) (4)Carried Forward 15,384 15,387 15,384 Retained Earnings - BroughtForward (33,580) (32,663) (32,663)(Loss) for Period (427) (541) (914)Profit on Translation ofSubsidiary 0 0 3Transfer from Revaluation Reserve 0 1 4Carried Forward (34,007) (33,203) (33,580) (6) The Group is supported by short term borrowings from it's largershareholders by way of formal agreements. At 30 June 2007 total borrowings fromKeniworth Capital Ltd were £3,484k and £1,721k from The Grande Group and itssubsidiary companies. Keniworth Capital Ltd hold 29% of the issued ordinaryshare capital and The Grande Holding Ltd has direct or indirect control of41.4%.. (7) These Statements are prepared in accordance with InternationalFinancial Reporting Standards (IFRS) as adopted for use in the EU. (8) The Interim Report will be sent by mail to all registered shareholdersand copies will be available from the Company's head office at Ross Group PLC,Brunel Road, Totton, Hampshire, SO40 3YS. A downloadable copy will also beposted on the Company's website www.ross-group.co.uk Ross Group plc Registered Office 35 Paul Street London EC2A 4UQ Contact - P.Neal, Financial Controller Tel. - 02380 675500 Fax - 02380 675555 Email - p.neal@geleng.com Website - www.ross-group.co.uk This information is provided by RNS The company news service from the London Stock Exchange