Final Results
30 April 2003 - 10:30PM
UK Regulatory
RNS Number:5664K
Ross Group PLC
30 April 2003
ROSS GROUP PLC
Preliminary announcement by Ross Group PLC of the Audited Results for the year
ended 31 December 2002
CHAIRMAN'S STATEMENT
RESULTS
The result of the Group, before tax, for the year ended 31 December 2002 was a
loss of #808,000 (six months ended 31 December 2001: loss #372,000, year
ended 30 June 2001: loss #1,095,000). The loss for the
year was largely due to a decline in the Group's turnover (2002: #2.45m
compared to 6 months to December 2001: #1.94m and year ended 30 June
2001: #5.53m) which resulted in the contribution from the trading
companies being insufficient to cover the head office overhead and interest
charge. One other significant factor was a breakdown in one of the larger Test
Rigs manufactured by GEL Engineering Limited which caused a substantial delay in
completion of the project and additional costs. It resulted in a net
exceptional loss of about #260,000 in 2002; the project is expected to be
completed by June 2003.
The board is unable to recommend the payment of a dividend because of the
current financial position. However the board will endeavor to return the
company to a dividend paying position as soon as is practicable.
DIVISIONS OF THE GROUP
The restructuring of the business of the Group has been completed, with its
activities being concentrated on:
- The distribution of battery chargers and electrical adaptors through Tadmod
Ltd.
- The design and manufacturing of engineering projects through GEL Engineering
Ltd.
STRATEGY
To cope with the difficult economical environment with which the group
confronted in 2002 and to remedy the slowdown of its activities, the board has
approved an annual business plan which should boost the sales of the two
operating entities to a level where gross contribution should exceed the total
operating costs.
A reorganisation of Tadmod Limited is being implemented to cope with the present
trend of the market which has put significant downward pressure on turnover.
The main features of this reorganisation are:
- substantial reduction of its overheads;
- priority given to sales to major customers and high volume orders;
- development of new products; and
- reduced product cost by sourcing supplies from an important Chinese
manufacturer.
All these measures should increase Tadmod's competitiveness in a tough market
and thus should increase its sales and market share.
As for GEL Engineering Limited, an aggressive commercial policy implemented in
mid 2002 led the company to be represented in new markets in the U.K and abroad
resulting in the signing of significant contracts with major international
aerospace manufacturers. GEL is now recognised as a preferred supplier to these
new and prestigious customers.
In addition, GEL's recognized technical "know how" and professional credibility
has led to the company being awarded new contracts with both former and current
customers.
GEL has already proved to be successful during the last 6 months to date with
the total amount of orders received in that time having exceeded 50% of the
amount of contracts signed during the previous 18 months. The nature of these
contracts mean the contribution to the Group's turnover won't be shown here but
the financial effects of these orders will be reflected in the 2003 and 2004
results.
The directors believe that the trading of the two operating companies will
continue to improve through the implementation of the approved business plans.
OPEN OFFER
At the end of February 2003, the Company raised #1,340,941, net of
expenses, by way of an Open Offer, the proceeds of which have been used to repay
a #1.3 million term loan extended by the company's bankers, HSBC. At the
same time, the Grande Group has extended a long term facility of #1.295 million
to repay the inter-company loan and to provide working capital.
The directors believe that the strengthening of the Company's balance sheet,
together with the continued support of the Grande Group, will significantly
enhance the company's future prospects.
APPRECIATION
I would like to take this opportunity to thank our Employees, Shareholders,
Bankers, Advisers, Suppliers and Customers for their continuing support.
A C C Ma
Chairman
29 April 2003
Consolidated Profit and loss Account for the Year Ended 31 December 2002
Dec 2002 Dec 2001 June 2001
12 Months 6 Months 12 Months
#000's #000's #000's
Turnover
Continuing Operations 2,449 1,936 4,827
Discontinued Operations 0 0 704
Total Turnover 2,449 1,936 5,531
Operating (loss)
Continuing Operations (502) (187) (87)
Discontinued Operations 0 0 (225)
Total Operating (loss) (502) (187) (312)
(Losses) on sale of discontinued operations (26) (40) (465)
Net Interest (payable) (280) (145) (318)
(Loss) on ordinary activities before taxation (808) (372) (1,095)
Taxation 0 0 0
Retained (loss) in the period (808) (372) (1,095)
(Loss)/earnings per share - basic and diluted (1.21)p (0.55)p (1.63)p
Adjusted (Loss)/earnings per share - basic and diluted (1.17)p (0.50)p (0.94)p
Consolidated Balance Sheet as at 31 December 2002
As At 31 As At 31 As At 30
Dec 2002 Dec 2001 June 2001
#000's #000's #000's
Tangible Fixed Assets 63 80 46
Stock 833 630 385
Debtors 274 1,069 1,575
Creditors (2,307) (2,112) (1,892)
Net bank borrowings (2,609) (2,605) (2,708)
Deferred Taxation 0 0 0
Net (liabilities)/assets (3,746) (2,938) (2,594)
Shareholders funds (3,746) (2,938) (2,594)
Reconciliation in Movements in Shareholders Funds
As At 31 As At 31 As At 30
Dec 2002 Dec 2001 June 2001
#000's #000's #000's
(Loss) for the financial period (808) (372) (1,095)
Other recognised gains 0 28 0
Net movement (808) (344) (1,095)
Opening shareholders funds (2,938) (2,594) (1,499)
Closing shareholders funds (3,746) (2,938) (2,594)
Consolidated Cash Flow Statement for the Six Months ended 31 December 2002
Dec 2002 Dec 2001 June 2001
12 Months 6 Months 12 Months
#000's #000's #000's
Operating (Loss) from Continuing Activities (502) (187) (87)
Depreciation and loss on revaluation 33 10 49
(Increase)/Decrease in Stocks (203) (245) 408
Decrease in Debtors 795 506 576
Increase/(Decrease) in Creditors 131 220 (2,580)
Net Cash Inflow/(Outflow) from Continuing Operating Activities 254 304 (1,634)
Net Cash (Outflow) from Discontinued Activities (26) (40) (690)
Net Cash Inflow/(Outflow) from Operating Activities 228 264 (2,324)
Net Cash (Outflow) from Returns on Investments an Servicing of
Finance (216) (145) (318)
Taxation 0 0 0
Purchases of Tangible Fixed Assets (7) (21) (16)
Sales of Tangible Fixed Assts 0 5 1,143
Net Cash (Outflow)/Inflow from Capital Expenditure and Financial
Investment
(7) (16) 1,127
Capital Element of Finance Lease Rentals 0 0 (4)
Net Cash Inflow/(Outflow) from Financing (1) 0 (4)
(Decrease)/Increase in Cash
Cash Outflow from Finance Leases 4 103 (1,519)
Movement in Net Debt (8) 0 4
(4) 103 (1,515)
Net Debt at beginning of period (2,605) (2,708) (1,193)
Net Debt at end of period (2,609) (2,605) (2,708)
Notes
1. The financial information set out above does not constitute the company's
statutory accounts for the year ended 31 December 2002 nor for either of the
comparative periods, but is derived from those accounts. Statutory accounts
for the 6 months ended 31 December 2001 and the year ended 30 June 2001 have
been delivered to the Registrar of Companies and those for the year ended 31
December 2002 will be delivered following the company's annual general
meeting. The auditors have reported on those accounts: their reports were
unqualified and did not contain statements under s273(2) or (3) Companies
Act 1985.
2. The total number of shares in issue at the end of the period was 67,052,306
after taking account of the rights issue, capital re-organisation and
purchase of preference shares as agreed at the Extraordinary General Meeting
held on 27 March 2000.
3. An adjusted loss per share calculation is shown to highlight the effect of
excluding exceptional items (the effects of the group re-structuring and
business closures) from the earnings per share calculation.
4. No ordinary interim or final dividend is proposed.
5. The company changed it's accounting reference date in 2001 to 31 December
from 30 June and in consequence is reporting comparative results for the six
months to 31 December 2001 and the year to June 2001.
6. The comparative figures for the six months to 31 December 2001 and the year
to 30 June 2001 have been extracted from the company's Audited accounts.
This announcement has been agreed by the company's auditors, Messrs Everett and
Son,
Copies of the full statutory accounts will be despatched to shareholders in due
course. Copies of this announcement and the full statutory accounts will be
available, free of charge, from the registered office of the company at 35 Paul
Street, London, EC2A 4UQ.
Ross Group PLC
Registered office : 35 Paul Street,
London
EC2A 4UQ
Telephone : 02380 675500
Fax : 02380 675555
Contact : Alain Eman (Deputy Managing Director)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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