TIDMCTG
RNS Number : 9608Q
Christie Group PLC
18 September 2017
18 September 2017
Christie Group plc
Interim Results for the six months ended 30 June 2017
Christie Group plc ('Christie' or the 'Group'), the leading
provider of Professional Business Services and Stock &
Inventory Systems & Services to the leisure, retail and care
markets, is pleased to announce its Interim Results for the six
months ended 30 June 2017.
Key points:
-- First half revenues up 10.6% to GBP34.9m (2016: GBP31.6m)
-- First-half operating profit before exceptional items of
GBP1.0m (2016: operating loss of GBP0.9m)
-- Basic earnings per share of 1.49p per share (2016: Negative 4.95p per share)
-- Interim dividend maintained at 1.0p per share (2016: 1.0p per share)
-- Professional Business Services revenues up 17.7% to GBP19.3m (2016: GBP16.4m)
-- Stocktaking and Inventory Systems and Services revenues up
2.9% to GBP15.6m (2016: GBP15.2m)
-- UK transactional activity has recovered, with contributions from across our sectors
-- Lender market remains positive and continues to diversify
Commenting on the results, David Rugg, Chief Executive of
Christie Group, said:
"We are pleased to report an encouraging first-half performance,
with strong growth. Business buyers have been undeterred by
political events and our sector-specialist knowledge and services
are in demand. We remain optimistic for our full year
prospects."
Enquiries:
Christie Group plc
David Rugg
Chief Executive 020 7227 0707
Daniel Prickett
Chief Financial Officer 020 7227 0700
Panmure Gordon (UK) Limited
Dominic Morley / Charles Leigh-Pemberton
Nominated Adviser & Broker 020 7886 2980
Notes to Editors:
Christie Group plc, quoted on AIM, is a leading professional
business services group with 42 offices across the UK, Europe and
Canada, catering to its specialist markets in the leisure, retail
and care sectors.
Christie Group operates in two complementary business divisions:
Professional Business Services (PBS) and Stock & Inventory
Systems & Services (SISS). These divisions trade under the
brand names: PBS - Christie & Co, Pinders, Christie Finance and
Christie Insurance: SISS - Orridge, Venners and Vennersys.
Tracing its origins back to 1846, the Group has a long
established reputation for offering essential services to client
companies in agency, valuation services, investment, consultancy,
project management, multi-functional trading systems and online
ticketing services, stock audit and inventory management. The
diversity of these services provides a natural balance to the
Group's core agency business.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
For more information, please go to www.christiegroup.com.
CHAIRMAN'S STATEMENT
As anticipated in my AGM statement in June, our first-half
result was a material improvement over the corresponding period in
2016, further supporting our view that last year was adversely
affected in the run up to the EU Referendum. Reflecting this
recovery, we achieved an operating profit before exceptional items
of GBP1.0 million (2016: GBP0.9m operating loss) from revenue of
GBP34.9 million (2016: GBP31.6m). In the UK, neither the EU
Referendum nor the General Election outcome have deterred business
buyers. Indeed, this first-half result coupled with the stronger
second-half we delivered in 2016, equates to an operating profit
before exceptional items over that twelve month period of
GBP3.0m.
Stock & Inventory Systems & Services
In Germany, our retail stocktaking operation Orridge, added
counts for Fressnapf, Hugo Boss and Amor. We have also agreed
trials for four additional retailers for work in 2018, while our
new sales initiative in France has been successful in securing work
for Fremaux Delorme and trials with six retailers for work both in
France and Belgium. Across our European operations, we are rolling
out our UK-style of bonus schemes to boost count rates whilst
maintaining accuracy.
In the UK we have welcomed Musto, Habitat, Tate Gallery, Goulds
Departments Stores and Trotters School Uniform Warehouse as
clients. We are working with two other major retailers to provide
our services, although with systems adaptation requirements these
should be to the benefit of next year. All high street client
contracts expiring in the period were successfully renewed.
Our Pharmacy division is achieving incremental gains in a sector
where ownership remains diversified. Our Supply Chain service,
whilst hitherto operating in distribution centres, has been
successful in adding "in good faith receiving" checks to food
retailers sites whilst we are concurrently on site for our routine
stocktaking operations. This creates an integrated and cost
effective solution. Evolving further from its origins and
reflecting our knowledge in the hospitality sector, our Supply
Chain work has also moved beyond pure retail with a new assignment
to focus on food and drink supplies.
Continuing in the licence sector with Venners, we won
stocktaking for Amber Taverns and for Milton Group, a portfolio of
73 pubs just purchased from Mitchell & Butlers. For our Health
& Safety services we added Cotswold Inns and Hotels and Yummy
Pub Company.
Early adoption of evolving and emerging third party software and
technology is vital. As Venners' Clients adopt newer more modern
systems that introduce a greater level of control and analysis into
their businesses, we too gain vital exposure to a working knowledge
of such systems. We adopt them into our working practices and
integrate them into our own technology infrastructure.
Trevor Heyburn, the Managing Director of Venners, has decided to
take a well-earned retirement after over forty years with the firm.
I am pleased to advise we have been able to appoint our current
Client Services Director, Steve Mayne, to the role of Managing
Director and have created a new role of Deputy M.D. to further
strengthen Venners' solid management team.
Vennersys, our cloud-based e-ticketing and customer management
system for visitor attractions, reports a healthy outlook for
growth. Scottish Seabird Centre, Greensand Trust, Dynamic Earth and
Active Tameside are all recently welcomed as users.
Professional Business Services
We have enjoyed a strong first-half performance by our existing
UK regional office network. Owning and operating one's own business
remains an aspiration for many. Our coordinated sector-specialist
teams were busy assisting corporate operators to either build or
rationalise their portfolios across both branded and unbranded
assets.
In Hotels, we've been busy on regional brokerage transactions.
Branded examples included the sale of Holiday Inn Expresses in
Tamworth and Ramsgate, the Holiday Inn Coventry South and a number
of Mercures including Hatfield, Hull and Bowdon, Cheshire. Most
recently we have sold on behalf of Principal Hotel Group, Project
Prime, a group of five regional hotels to be operated by a major
FTSE 100 Plc. Remaining in the UK hospitality arena in the Pub
sector, we have seen most of the activity coming from established
PubCos seeking to expand their estates.
Differing from the UK, hotel agency completions in our mainland
Europe operations were subdued in the period. However momentum has
begun to gather pace. Completions nonetheless included two branded
hotels - the Lindner Hotel Much in Cologne and the Steigenberger in
Linz - as well as the Best Western L'Artist Hotel in the Loire
Valley and the Hotel Live & Dream in Barcelona.
The Care team have been continuing with their ongoing work of
disposal of non-core assets for Four Seasons, including the sale of
six homes based across the North East and South Yorkshire to Hill
Care. We also acted on behalf of LRH to sell thirteen homes in a
deal worth over GBP70m and completed three deals for specialist
supported living provider National Care Group. In one of the
largest transactions of the year, Christie & Co sold the
Elderly Care Division of Embrace Group - consisting of thirty five
homes across England and Scotland - to Sanctuary Care Group.
Following on from an excellent 2016, our Childcare and Education
team facilitated multiple single-asset transactions including
providing buy-side advice to ICP Nurseries on their acquisition of
Little Monkeys Nurseries, helping them to add to their expanding
portfolio of six settings across London and the South East.
In the Medical sector, The Department of Health's funding cuts
to Pharmacy remuneration, introduced from September 2016, have to
date had little effect on market appetite. Sales activity increased
compared with the first half in 2016, and saw our Medical team
broker the sale of Patrick Dental Group in Glasgow, made up of two
high quality Dental Practices comprising nine surgeries in
total.
Active on the ground in fifteen European markets, the Valuations
and Consultancy team have undertaken a number of large (and small)
assignments across both the UK and Europe, leveraging the knowledge
and experience of our teams. The Care Consultancy Team launched its
renowned Adult Social Care Report in July which this year focused
on funding, staffing and bed blocking. The report has already
generated extensive interest and media coverage including The
Sunday Times, The Guardian and all key trade publications. The
Hotels Consultancy team is busy working on confidential due
diligence projects in the UK and across Europe.
Pinders' own excellence in service provision was recognised by
Lloyds Bank, with the award of 'South East Valuer of the Year'. As
well as valuing over GBP1bn worth of student accommodation in the
period, its Building Services division saw significant progression
in the learning difficulties sector, with portfolio instructions
relating to the G4S, Swanton Care and Danshell groups.
We have decided to create a Financial Services Division to focus
the provision of our existing Finance and Insurance services and to
seek to make available a wider product offering to our existing
client base, as well as the external inflows from our strengthening
Christie Finance and Christie Insurance brands. The new division
will come into effect once we have obtained the necessary
regulatory approvals.
There has been no let up in the continuing diversity of the
lender market - new entrants continue to appear. As a result, there
has been no detriment to the availability of Commercial Finance for
SME's seen post-Brexit or in the run up to the General Election.
Expanding its own product offering in light of this positive
lending landscape, Christie Finance will launch its new Unsecured
Finance option in Q4.
Dividend
The Board has declared an interim dividend of 1.0p per share
(2016: 1.0p per share) which will be paid on 20 October 2017 to
shareholders on the register on 29 September 2017.
Outlook
Assuming relatively benign conditions continue to prevail
overall, the Group is on track for the year with the prospect for
further growth into 2018.
Board changes
This is my last statement to you as Chairman, as I retire
today.
I have enjoyed enormously my 43 years with the business and I am
immensely proud to have seen it grow from a company in the South of
England into the international group of companies which it is
today. Growth within the Group has always been driven by the
quality of service provided to our customers and, in my view, this
has never been stronger than it is today. I would like to thank all
our talented staff, both current and past, for their unbridled
enthusiasm, energy and support over the years. I am very grateful
to you all.
It has been a great honour to serve as the first Chairman of our
Group since its flotation in 1988 and I am pleased to advise that
my long standing colleague and friend David Rugg has agreed to
become Chairman, as well as continuing his role as Chief Executive.
In support of this move our current Chief Financial Officer Daniel
Prickett has moved to Chief Operating Officer and Simon Hawkins,
currently finance director of Christie & Co, has been appointed
Group Finance Director.
My enthusiasm and belief in the companies within Christie Group
remains undiminished and I will be staying in close contact as both
the major shareholder and in my honorary role as Group President. I
am also pleased to announce that my son, Hwfa Gwyn, has been
invited to join your board, thereby ensuring our family's ongoing
involvement in the performance and direction of the Group.
Lastly I thank you, our shareholders, including many
longstanding holders, for their loyal support of our Group. I think
that the Group is excellently positioned within its various market
sectors and so trust that you will continue to support it on the
next phase of its journey.
Philip Gwyn
Chairman
Consolidated interim income
statement
Half year Half year
to 30 to 30
June June
2017 2016
Year ended
31 December
GBP'000 GBP'000 2016
Note (Unaudited) (Unaudited) GBP'000
-------------------------------- ------ ------------- ------------- -------------
Revenue 4 34,925 31,575 64,488
Employee benefit expenses (23,733) (23,260) (45,866)
------------------------------------ ------ ------------- ------------- -------------
11,192 8,315 18,622
Depreciation and amortisation (415) (352) (757)
Impairment charge - - (194)
Other operating expenses (9,749) (8,867) (16,651)
------------------------------------ ------ ------------- ------------- -------------
Operating profit / (loss)
before exceptional items 1,028 (904) 1,020
Exceptional items - - 1,328
Operating profit / (loss)
after exceptional items 4 1,028 (904) 2,348
Finance costs (63) (47) (111)
Finance income 2 - -
Pension scheme finance costs (235) (216) (432)
Total finance charge (296) (263) (543)
------------------------------------ ------ ------------- ------------- -------------
Profit / (loss) before tax 732 (1,167) 1,805
Taxation 5 (376) (202) (516)
------------------------------------ ------ ------------- ------------- -------------
Profit / (loss) for the period
after tax 356 (1,369) 1,289
All amounts derive from continuing operations.
Profit / (loss) for the period after tax attributable to:
Equity shareholders of the
parent 391 (1,301) 1,405
Non-Controlling interest (35) (68) (116)
----------------------------- ----- -------- ------
356 (1,369) 1,289
---------------------------- ----- -------- ------
Earnings per share attributable to equity holders - pence
- Basic 6 1.49 (4.95) 5.35
- Fully diluted 6 1.47 (4.95) 5.25
----------------- ----- ------- -----
Consolidated interim statement of comprehensive income
Half year Half year
to 30 to 30
June June
2017 2016
Year ended
31 December
GBP'000 GBP'000 2016
(Unaudited) (Unaudited) GBP'000
------------------------------------- ---- ------------- ------------- -------------------------
Profit / (loss) for the period
after tax 356 (1,369) 1,289
------------------------------------------- ------------- ------------- -------------------------
Other comprehensive (losses)
/ income:
Items that may be reclassified
subsequently to profit or
loss:
Exchange differences on translating
foreign operations 2 143 184
------------------------------------------- ------------- ------------- -------------------------
Net other comprehensive income
/ (losses) to be reclassified
to profit or loss in subsequent
periods 2 143 184
------------------------------------------- ------------- ------------- -------------------------
Items that will not be reclassified
to profit or loss:
Re-measurement (losses) /
gains on defined benefit plans (378) (3,046) (8,054)
Income tax effect 64 459 1,011
------------------------------------------- ------------- ------------- -------------------------
Net other comprehensive (losses)
/ income not being reclassified
to profit or loss in subsequent
periods (314) (2,587) (7,043)
------------------------------------------- ------------- ------------- -------------------------
Other comprehensive (losses)
/ income for the period, net
of tax (312) (2,444) (6,859)
------------------------------------------- ------------- ------------- -------------------------
Total comprehensive income
/ (losses) for the period 44 (3,813) (5,570)
------------------------------------------- ------------- ------------- -------------------------
Total comprehensive income / (losses) attributable to:
Equity shareholders of the
parent 79 (3,745) (5,454)
Non-Controlling interest (35) (68) (116)
----------------------------- ----- -------- --------
44 (3,813) (5,570)
---------------------------- ----- -------- --------
Consolidated interim statement of changes in shareholders'
equity
Fair
value Cumulative Non -
Share and other translation Retained Controlling Total
capital reserves adjustments earnings interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Half year to 30 June 2016 (Unaudited)
Balance at 1 January
2016 531 5,207 472 (9,073) (454) (3,317)
Profit / (loss)
for the period after
tax - - - (1,301) (68) (1,369)
Items that will
not be reclassified
subsequently to
profit or loss - - - (2,587) - (2,587)
Items that may be
reclassified subsequently
to profit or loss - - 143 - - 143
Total comprehensive
(losses) / income
for the period - - 143 (3,888) (68) (3,813)
Movement in respect
of employee share
scheme - 117 - - - 117
Employee share option
scheme:
- value of services
provided - 2 - - - 2
Dividends payable - - - (394) - (394)
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Balance at 30 June
2016 531 5,326 615 (13,355) (522) (7,405)
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Year ended 31 December 2016 (Audited)
--------------------------------------------------------------------------------------------------------------
Balance at 1 January
2016 531 5,207 472 (9,073) (454) (3,317)
Profit / (loss)
for the year after
tax - - - 1,405 (116) 1,289
Items that will
not be reclassified
subsequently to
profit or loss - - - (7,043) - (7,043)
Items that may be
reclassified subsequently
to profit or loss - - 184 - - 184
Total comprehensive
(losses) / income
for the year - - 184 (5,638) (116) (5,570)
Movement in respect
of employee share
scheme - 20 - - - 20
Employee share option
scheme:
-value of services
provided - 238 - - - 238
Acquisition of non
controlling interest - - - (241) 241 -
Dividends paid - - - (657) - (657)
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Balance at 31 December
2016 531 5,465 656 (15,609) (329) (9,286)
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Half year to 30 June
2017 (Unaudited)
Balance at 1 January
2017 531 5,465 656 (15,609) (329) (9,286)
Profit / (loss) for
the period after tax - - - 391 (35) 356
Items that will not
be reclassified subsequently
to profit or loss - - - (314) - (314)
Items that may be
reclassified subsequently
to profit or loss - - 2 - - 2
Total comprehensive
income / (losses)
for the period - - 2 77 (35) 44
Movement in respect
of employee share
scheme - 33 - - - 33
Employee share option
scheme:
- value of services
provided - 100 - - - 100
Dividends payable - - - (398) - (398)
Balance at 30 June
2017 531 5,598 658 (15,930) (364) (9,507)
------------------------------- --------- ----------- ------------- ---------- ------------- ---------
Consolidated interim statement of financial position
At 30 At 30 June At 31
June 2017 2016 December
2016
GBP'000 GBP'000 GBP'000
(Unaudited) (Unaudited)
Note
------------------------------ ------ ------------- ------------- ----------
Assets
Non-current assets
Intangible assets -
Goodwill 1,837 1,790 1,812
Intangible assets -
Other 1,353 1,226 1,241
Property, plant and
equipment 1,536 1,251 1,468
Deferred tax assets 3,781 3,613 3,901
Available-for-sale
financial assets 635 635 635
Other receivables 451 451 451
------------------------------ ------ ------------- ------------- ----------
9,593 8,966 9,508
------------------------------ ------ ------------- ------------- ----------
Current assets
Inventories 16 8 29
Trade and other receivables 14,568 12,913 13,226
Current tax assets 178 243 357
Cash and cash equivalents 11 3,385 2,348 1,637
------------------------------ ------ ------------- ------------- ----------
18,147 15,512 15,249
------------------------------ ------ ------------- ------------- ----------
Total assets 27,740 24,478 24,757
------------------------------ ------ ------------- ------------- ----------
Equity
Capital and reserves attributable to
the Company's equity holders
Share capital 8 531 531 531
Fair value and other
reserves 5,598 5,326 5,465
Cumulative translation
reserve 658 615 656
Retained earnings (15,930) (13,355) (15,609)
------------------------------ ------ ------------- ------------- ----------
(9,143) (6,883) (8,957)
Non-Controlling interest (364) (522) (329)
------------------------------ ------ ------------- ------------- ----------
Total equity (9,507) (7,405) (9,286)
------------------------------ ------ ------------- ------------- ----------
Liabilities
Non-current liabilities
Trade and other payables - - 249
Retirement benefit
obligations 9 18,167 14,721 18,106
Borrowings - 3 1
Provisions 218 281 167
------------------------------ ------ ------------- ------------- ----------
18,385 15,005 18,523
------------------------------ ------ ------------- ------------- ----------
Current liabilities
Trade and other payables 10,891 9,438 8,883
Current tax liabilities 335 73 152
Borrowings 6,807 6,479 5,624
Provisions 829 888 861
------------------------------ ------ ------------- ------------- ----------
18,862 16,878 15,520
------------------------------ ------ ------------- ------------- ----------
Total liabilities 37,247 31,883 34,043
------------------------------ ------ ------------- ------------- ----------
Total equity and liabilities 27,740 24,478 24,757
------------------------------ ------ ------------- ------------- ----------
Consolidated interim statement of cash flows
Half year Half year
to 30 to 30
June 2017 June 2016
GBP'000 GBP'000 Year ended
(Unaudited) (Unaudited) 31 December
2016
GBP'000
Note
----------------------------------- ------ ------------- ------------- --------------
Cash flow from operating
activities
Cash generated from / (used
in) operations 10 1,202 (2,735) (1,016)
Interest paid (63) (47) (111)
Tax paid (23) (129) (213)
----------------------------------- ------ ------------- ------------- --------------
Net cash generated from /
(used in) operating activities 1,116 (2,911) (1,340)
----------------------------------- ------ ------------- ------------- --------------
Cash flow from investing
activities
Purchase of property, plant
and equipment (PPE) (295) (373) (855)
Proceeds from sale of PPE - 14 16
Interest received 2 - -
Intangible assets expenditure (268) (297) (453)
Net cash used in investing
activities (561) (656) (1,292)
----------------------------------- ------ ------------- ------------- --------------
Cash flow from financing
activities
Proceeds from invoice discounting 779 1,158 363
Payment of finance lease
liabilities (1) (4) (6)
Dividends paid - - (657)
Net cash generated from /
(used in) financing activities 778 1,154 (300)
----------------------------------- ------ ------------- ------------- --------------
Net increase / (decrease)
in cash and cash equivalents 1,333 (2,413) (2,932)
Cash and cash equivalents
at beginning of period (2,933) 17 17
Exchange gain / (losses)
on Euro bank accounts 9 107 (18)
----------------------------------- ------ ------------- ------------- --------------
Cash and cash equivalents
at end of period 11 (1,591) (2,289) (2,933)
----------------------------------- ------ ------------- ------------- --------------
Notes to the consolidated interim financial statements
1. General information
Christie Group plc is the parent undertaking of a group of
companies covering a range of related activities. These fall into
two divisions - Professional Business Services and Stock &
Inventory Systems & Services. Professional Business Services
principally covers business valuation, consultancy and agency,
mortgage and insurance services, and business appraisal. Stock
& Inventory Systems & Services covers stock audit and
counting, compliance and food safety audits and inventory
preparation and valuation, hospitality and cinema software.
2. Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with IFRS as adopted
by the European Union. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board
(IASB) and the IFRS Interpretations Committee (IFRIC) and there is
an ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the
basis of IFRS that the Directors expect to be adopted by the
European Union and applicable as at 31 December 2017.
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 December 2016,
except for those noted below and except for the adoption of new
standards and interpretations effective as of 1 January 2017. Taxes
on income in the interim periods are accrued using the tax rate
that would be applicable to expected total annual earnings.
A number of amendments apply for the first time in 2016.
However, they do not materially impact the annual consolidated
financial statements of the Group or the interim condensed
consolidated financial statements of the Group.
Non-statutory accounts
These consolidated interim financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting'.
The financial information for the year ended 31 December 2016 set
out in this interim report does not constitute the Group's
statutory accounts for that period. The statutory accounts for the
year ended 31 December 2016 have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report
was unqualified, did not contain a statement under either section
498(2) or section 498(3) of the Companies Act 2006 and did not
include references to any matters to which the auditor drew
attention by way of emphasis. The financial information for the
periods ended 30 June 2017 and 30 June 2016 is unaudited.
3. Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances.
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom
equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year are consistent with those applied to the
consolidated financial statements for the year ended 31 December
2016.
4. Segment information
The Group is organised into two main business segments:
Professional Business Services and Stock & Inventory Systems
& Services.
The reportable segment results for continuing operations for the
period ended 30 June 2017 are as follows:
Professional Stock &
Business Inventory Other Group
Services Systems GBP'000 GBP'000
GBP'000 & Services
GBP'000
--------------------- --------------- ------------- ---------- ----------
Total gross segment
revenue 19,351 15,628 1,451 36,430
Inter-segment
revenue (54) - (1,451) (1,505)
--------------------- --------------- ------------- ---------- ----------
Revenue 19,297 15,628 - 34,925
--------------------- --------------- ------------- ---------- ----------
Operating profit
/ (loss) 1,408 (558) 178 1,028
Net finance charge (296)
--------------------- --------------- ------------- ---------- ----------
Profit before
tax 732
Taxation (376)
--------------------- --------------- ------------- ---------- ----------
Profit for the period after
tax 356
-------------------------------------- ------------- ---------- ----------
The reportable segment results for continuing operations for the
period ended 30 June 2016 are as follows:
Professional Stock &
Business Inventory Other Group
Services Systems GBP'000 GBP'000
GBP'000 & Services
GBP'000
--------------------- --------------- ------------- ---------- ----------
Total gross segment
revenue 16,440 15,188 1,538 33,166
Inter-segment
revenue (53) - (1,538) (1,591)
--------------------- --------------- ------------- ---------- ----------
Revenue 16,387 15,188 - 31,575
--------------------- --------------- ------------- ---------- ----------
Operating loss (414) (116) (374) (904)
Net finance charge (263)
--------------------- --------------- ------------- ---------- ----------
Loss before tax (1,167)
--------------------- --------------- ------------- ---------- ----------
Taxation (202)
--------------------- --------------- ------------- ---------- ----------
Loss for the period after
tax (1,369)
-------------------------------------- ------------- ---------- ----------
The reportable segment results for continuing operations for the
year ended 31 December 2016 are as follows:
Professional Stock & Other Group
Business Inventory GBP'000 GBP'000
Services Systems
GBP'000 & Services
GBP'000
------------------------- ------------- ------------ --------- ---------
Total gross segment
sales 35,139 29,455 3,533 68,127
Inter-segment
sales (106) - (3,533) (3,639)
------------------------- ------------- ------------ --------- ---------
Revenue 35,033 29,455 - 64,488
------------------------- ------------- ------------ --------- ---------
Operating profit/(loss)
before exceptional
items 1,407 (165) (222) 1,020
Exceptional items 973 286 69 1,328
------------------------- ------------- ------------ --------- ---------
Operating profit/(loss)
after exceptional
items 2,380 121 (153) 2,348
Finance costs (543)
------------------------- ------------- ------------ --------- ---------
Profit before
tax 1,805
------------------------- ------------- ------------ --------- ---------
Taxation (516)
------------------------- ------------- ------------ --------- ---------
Profit for the
year after tax 1,289
------------------------- ------------- ------------ --------- ---------
The Group is not reliant on any key customers.
5. Taxation
Deferred tax assets have been recognised in respect of tax
losses and other temporary differences giving rise to deferred tax
assets where it is probable that these assets will be
recovered.
The tax on the Group's profit before tax differs from the
theoretical amount that would arise using the standard rate of
corporation tax in the UK of 19%, based on the Group's profit
before tax and before pension scheme finance costs, due to
GBP87,000 arising from the reduction in the value of the brought
forward deferred tax asset and a further GBP85,000 arising from
other movements in the deferred tax asset.
6. Earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period, which
excludes the shares held in the Employee Share Ownership Plan
(ESOP) trust.
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. The Company
has only one category of potential dilutive ordinary shares: share
options. Where a loss for the year has been recognised the share
options are considered anti-dilutive and so not included in the
calculation of diluted earnings per share.
The calculation is performed for the share options to determine
the number of shares that could have been acquired at fair value
(determined as the average annual market share price of the
Company's shares) based on the monetary value of the subscription
rights attached to outstanding share options. The number of shares
calculated as above is compared with the number of shares that
would have been issued assuming the exercise of the share
options.
Half year Half year
to to Year ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ----------- -------------
Profit / (loss) from total
operations attributable to
equity holders of the Company 391 (1,301) 1,405
-------------------------------- ----------- ----------- -------------
30 June 30 June 31 December
2017 2016 2016
Thousands Thousands Thousands
-------------------------------- ----------- ----------- -------------
Weighted average number of
ordinary shares in issue 26,351 26,279 26,295
Adjustment for share options 344 - 472
-------------------------------- ----------- ----------- -------------
Weighted average number of
ordinary shares for diluted
earnings per share 26,695 26,279 26,767
-------------------------------- ----------- ----------- -------------
Pence
30 June 30 June
2017 2016
Pence Pence
-------------------------------- ----------- ----------- -------------
Basic earnings per share 1.49 (4.95) 5.35
Fully diluted earnings per
share 1.47 (4.95) 5.25
-------------------------------- ----------- ----------- -------------
7. Dividends
A final dividend in respect of the year ended 31 December 2016
of 1.5p per share, amounting to a total dividend of GBP398,000, was
approved and paid to the Christie Group plc registrar on 30 June
2017. The funds were transferred to shareholders on 7 July
2017.
An interim dividend in respect of 2017 of 1.0p per share,
amounting to a dividend of GBP265,000, was declared by the
directors at their meeting on 13 September 2017. These financial
statements do not reflect this dividend payable.
The dividend of 1.0p per share will be payable to shareholders
on the record on 29 September 2017. The ex-dividend date will be 28
September 2017. The dividend will be paid on 20 October 2017.
8. Share capital
30 June 2017 30 June 2016 31 December
2016
Ordinary shares of 2p Number GBP'000 Number GBP'000 Number GBP'000
each
-------------------------- ----------- -------- ----------- -------- ----------- --------
Allotted and fully paid:
At beginning and end
of period 26,526,729 531 26,526,729 531 26,526,729 531
-------------------------- ----------- -------- ----------- -------- ----------- --------
The Company has one class of ordinary shares which carry no
right to fixed income.
Investment in own shares
The Group has established an Employee Share Ownership Plan
(ESOP) trust in order to meet its future contingent obligations
under the Group's share option schemes. The ESOP purchases shares
in the market for distribution at a later date in accordance with
the terms of the Group's share option schemes. The rights to
dividend on the shares held have been waived.
At 30 June 2017 the total payments by the Group to the ESOP to
finance the purchase of ordinary shares were GBP2,639,000 (30 June
2016: GBP2,639,000; 31 December 2016: GBP2,639,000). This figure is
inclusive of shares purchased and subsequently issued to satisfy
employee share awards. The market value at 30 June 2017 of the
ordinary shares held in the ESOP was GBP129,000 (30 June 2016:
GBP203,000; 31 December 2016: GBP151,000). The investment in own
shares represents 139,000 shares (30 June 2016: 247,000; 31
December 2016: 182,000) with a nominal value of 2p each.
9. Retirement benefit obligations
The obligation outstanding of GBP18,167,000 (30 June 2016:
GBP14,721,000; 31 December 2016: GBP18,106,000) includes GBP965,000
(30 June 2016: GBP962,000; 31 December 2016: GBP990,000) payable to
David Rugg by Christie Group plc.
The Group operates two defined benefit schemes (closed to new
members) providing pensions on final pensionable pay. The
contributions are determined by qualified actuaries on the basis of
triennial valuations using the projected unit method.
When a member retires, the pension and any spouse's pension is
either secured by an annuity contract or paid from the managed
fund. Assets of the schemes are reduced by the purchase price of
any annuity purchase and the benefits no longer regarded as
liabilities of the scheme.
The amounts recognised in the statement of comprehensive income
and the movement in the liability recognised in the statement of
financial position have been based on the forecast position for the
year ended 31 December 2017 after adjusting for the actual
contributions to be paid in the period.
The movement in the liability recognised in the statement of
financial position is as follows:
Half year
to Year ended
Half year to 30 June 31 December
30 June 2017 2016 2016
GBP'000 GBP'000 GBP'000
-------------------------------------------- ---------- -------------
Beginning of the period 18,106 11,958 11,958
Expenses included in the employee
benefit expense 219 303 587
Contributions paid (746) (778) (1,547)
Finance costs 235 216 432
Pension paid (25) (24) (50)
Past service cost - - (1,328)
Actuarial losses / (gains)
recognised 378 3,046 8,054
End of the period 18,167 14,721 18,106
----------------------------------- ------- ---------- -------------
The amounts recognised in the income statement and statement of
comprehensive income are as follows:
Half year
to Year ended
Half year to 30 June 31 December
30 June 2017 2016 2016
GBP'000 GBP'000 GBP'000
--------------------------------------- ---------- -------------
Current service cost 219 303 587
------------------------------- ------ ---------- -------------
Total included in employee
benefit expenses 219 303 587
------------------------------- ------ ---------- -------------
Past service cost - - (1,328)
------------------------------- ------ ---------- -------------
Total included in exceptional
items - - (1,328)
------------------------------- ------ ---------- -------------
Net interest cost 235 216 432
------------------------------- ------ ---------- -------------
Total included in finance
costs 235 216 432
------------------------------- ------ ---------- -------------
Actuarial (losses) / gains (378) (3,046) (8,054)
Total included in other
comprehensive (losses)
/ income (378) (3,046) (8,054)
------------------------------- ------ ---------- -------------
The principal actuarial assumptions used were as follows:
Half year to 30 June 2017 Half year to 30 June 2016 Year ended 31 December 2016
% % %
-------------------------- -------------------------- ---------------------------- ------------------------------
Inflation rate 2.80 2.70 2.80
Discount rate 3.30 3.10 3.30
Future salary increases 1.00 - 2.00 2.70 1.00-2.00
Future pension increases 2.30 - 3.50 1.90 - 2.70 2.30-3.50
-------------------------- -------------------------- ---------------------------- ------------------------------
Assumptions regarding future mortality experience were
consistent with those disclosed in the financial statements for the
year ended 31 December 2016.
10. Note to the cash flow statement
Cash generated from / (used in) operations
Half year Half year
to to Year ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Continuing operations
Profit / (loss) for the period 356 (1,369) 1,289
Adjustments for:
- Taxation 376 202 516
- Finance costs 61 47 111
* Past services cost - - (1,328)
- Depreciation 258 216 480
- Amortisation of intangible
assets 157 136 277
- Profit on sale of property,
plant and equipment - (9) (10)
- Foreign currency translation (25) (102) 18
- Increase / (decrease) in
provisions 19 (738) (879)
- Movement in share option
charge 117 117 238
- Retirement benefits (317) (283) (578)
Changes in working capital
(excluding the effects of
exchange differences on consolidation):
- Increase in inventories 13 (2) (23)
- Increase in trade and other
receivables (1,322) (919) (1,203)
- Increase / (decrease) in
trade and other payables 1,509 (31) 76
------------------------------------------ ---------- ---------- -------------
Cash generated from / (used
in) operations 1,202 (2,735) (1,016)
------------------------------------------ ---------- ---------- -------------
11. Cash and cash equivalents include the following for the
purposes of the cash flow statement:
Half year Half year
to to Year ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- -------------
Cash and cash equivalents 3,385 2,348 1,637
Bank overdrafts (4,976) (4,637) (4,570)
--------------------------- ---------- ---------- -------------
(1,591) (2,289) (2,933)
--------------------------- ---------- ---------- -------------
12. Related-party transactions
There is no controlling interest in the Group's shares.
During the period rentals of GBP393,000 (30 June 2016:
GBP164,000; 31 December 2016: GBP287,000) were paid to Carmelite
Property Limited, a company incorporated in England and Wales, and
jointly owned by The Christie Group Pension and Assurance Scheme,
The Venners Retirement Benefit Fund and The Fitzroy Square Pension
Fund, by Christie Group plc in accordance with the terms of a
long-term lease agreement.
13. Publication of Interim Report
The 2017 Interim Financial Statements are available on the
Company's website www.christiegroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DMGMLGVDGNZM
(END) Dow Jones Newswires
September 18, 2017 02:00 ET (06:00 GMT)
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