Ross Grp. Regulatory News (RGP)

27 Sep 2005 11:12

Ross Group PLC27 September 2005 Ross Group plc 27 September 2005 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 Chairman's statement The result for the Group for the six months ended 30 June 2005 was an operatingloss of £336,000 before tax (June 2004 profit £96,000). This result is extremelydisappointing following the upturn in the group's profitability in 2003 and2004. The substantial reduction in the level of output was due to delays in the awardof some large contracts that the company, GEL Engineering Ltd (GEL) wasexpecting. These potential orders have only been delayed and not lost, so themain shareholder has continued to back the Group as they consider the chance fora return to profitability is substantially increased in 2006. Business review GEL, has suffered a significant downturn in orders during the period underreview and this has led to the strengthening of the sales team and a change ofmanagement. One highlight of the first half of 2005 was the receipt of threetest rig orders from prime contractors in the aerospace industry. These were thefirst orders of this type for sometime and were a direct result of the changesin the sales team. The company is committed to satisfying these orders andsecuring repeat business. A reduction in demand for containerised solutions forthe MOD has seen this side of the business struggle for orders. The Company islooking to expand its activities in the supply of fully integrated modularsolutions and physical training mock-ups. A business plan has been implemented for GEL following the change of ManagingDirector which should help increase the level of business by directing thecompany towards expanding and profitable markets. The Company now has asignificant amount of bids out with its customers for decisions in late 2005 andthroughout 2006. Some small orders have been secured recently which will improvethe second half of the year and an export vehicle order is expected shortly. Alarge repeat order for a Hercules Loadmaster Training Simulator is undernegotiation and is expected around the end of this year. Whilst the currenttrading indicates that 2005 will probably not show a profit, 2006 should see thegroup back in the black. Business Outlook The Directors have more than one option available to them to supplement thecurrent business activity and thus strengthen the Group. These opportunities arebeing assessed and progress is being made towards potential significant changesin the structure and operation 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 (2004- £Nil). A C C Ma Chairman22 September 2005 GROUP INCOME STATEMENT UNAUDITED 6 Months 6 Months Year Ended Ended Ended 30 June 30 June 31 December 2005 2004 2004 £'000 £'000 £'000RevenueContinuing Operations 255 1124 2362Discontinued Operations 0 85 85 Operating (Loss)/ProfitContinuing Operations (336) 96 237 Discontinued Operations 0 6 6 (Loss)/Profit Before Finance Cost (336) 102 243 Finance Cost (129) (88) (228) (Loss)/Profit Before Taxation (465) 14 15 Taxation 0 0 0 (Loss)/Profit For The Period (465) 14 15 Earnings Per Share (0.3p) 0.01p 0.01pAdjusted Earnings Per Share (0.3p) 0.01p 0.01p GROUP BALANCE SHEET UNAUDITED 30 June 30 June 31 December 2005 2004 2004 £'000 £'000 £'000 Non Current Assets 35 41 45 Current AssetsInventories 199 394 382Trade and Other Receivables 556 396 752Cash and Cash Equivalents 11 84 12 -------- -------- -------- 766 874 1146 -------- -------- -------- Current LiabilitiesTrade and Other Payables (659) (695) (834)Financial Liabilities- Short Term Borrowings (Group) (550) (1,188) (300) -------- -------- -------- (1,209) (1,883) (1,134) -------- -------- -------- Net Current Assets/(Liabilities) (443) (1009) 12 Non-Current LiabilitiesFinancial Liabilities- Long Term Borrowings (Group) (2,374) (1,346) (2,374) -------- -------- --------Net Liabilities (2,782) (2,314) (2,317) ======== ======== ======== EquityShare Capital 11,136 11,136 11,136Share Premium Account 2,317 2,317 2,317Other Reserves 15,391 15,397 15,394Retained Earnings (31,626) (31,164) (31,164) -------- -------- --------Total Equity (2,782) (2,314) (2,317) ======== ======== ======== GROUP CASH FLOW STATEMENT UNAUDITED 6 Months 6 Months Year Ended Ended Ended 30 June 2005 30 June 2004 31Dec. 2004 £'000 £'000 £'000Cash Flows From OperatingActivitiesCash Generated From OperatingActivities (120) (90) (147)Interest Paid (129) (88) (228)Taxation 0 0 0 --------- --------- ---------Net Cash From Operating Activities (249) (178) (375) Cash Flows From InvestingActivitiesPurchase Of Plant and Machinery (2) 0 (17) --------- --------- ---------Net Cash Used In InvestingActivities (2) 0 (17) Cash Flows From FinancingActivitiesNet Increase In Borrowings 250 158 300Repayment of Obligations UnderFinance Leases 0 (2) (2) --------- --------- ---------Net Cash Flow From FinancingActivities 250 156 298 --------- --------- ---------Net (Decrease) In Cash And CashEquivalents (1) (22) (94) ========= ========= ========= 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 2004.The financial information contained in these statements for the six months ended30 June 2005 and 30 June 2004 is unaudited and does not constitute statutoryaccounts as defined in section 240 of the Companies Act 1985.(2) Reconciliation of Operating Profit to Cash Generated From Operations 6 Months 6 Months Year Ended Ended Ended 30 June 2005 30 June 2004 31Dec. 2004 £'000 £'000 £'000Operating (Loss)/Profit OnContinuing Activities (336) 96 237Operating Profit On DiscontinuedActivities 0 6 6Depreciation And Amortisation 12 11 24Decrease/(Increase) In Inventories 183 (105) (93)Decrease/(Increase) In Trade AndOther Receivables 196 150 (206)(Decrease) In Trade And OtherPayables (175) (248) (115) --------- --------- -------- Cash Generated From Operations (120) (90) (147) ========= ========= ======== (3) No ordinary interim dividend is proposed for 2005 (2004-£nil). Notes to the Interim Report (Continued)(4) The comparative cash flow for the year ended 31 December 2004 has beenextracted from the audited accounts. The cash flows for the six months ended 30June 2005 and 30 June 2004 are unaudited.(5) Reconciliation of Movements In Equity 6 Months 6 Months Year Ended Ended Ended 30 June 2005 30 June 2004 31 Dec 2004 £'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 15,394 15,400 15,400(Depreciation) (3) (3) (6)Carried Forward 15,391 15,397 15,394 Retained Earnings - BroughtForward (31,164) (31,181) (31,181)(Loss)/Profit for Period (465) 14 15(Loss) on Translation ofSubsidiary 0 0 (4)Transfer from Revaluation Reserve 3 3 6Carried Forward (31,626) (31,164) (31,164) (6) Both the Long Term and Short Term borrowings are by way of formalagreements with the main shareholder, The Grande Group or its subsidiarycompanies.(7) The Group has evaluated the effect of the requirement to report inaccordance with International Accounting Standards (IAS) and has concluded thatthe change does not materially affect any item disclosed in these statements.(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 copy will also be posted on theCompany's website www.ross-group.co.uk Ross Group plc Contact - P. Elliott, Executive DirectorRegistered Office Tel. - 02380 675500 Fax - 02380 67555535 Paul Street Email - p.elliott@ross-group.co.ukLondon EC2A 4UQ Website - www.ross-group.co.uk This information is provided by RNS The company news service from the London Stock Exchange