Final Results

RNS Number : 3027J

Christie Group PLC

29 March 2010

 



29 March 2010

Christie Group plc

Final results for the twelve months ended 31 December 2009

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 final results for the twelve months ended 31 December 2009.

Key points:

·      Improved trading environment

·      Agency business seeing stabilisation of asset prices and re-engagement of purchasers

·      Resilient care business reflecting attraction of long-term Government revenue stream

·      Stock & Inventory Systems & Services increasingly called on to aid cash flow management through minimising cash tied up in stock

Commenting on the results, David Rugg, Chief Executive of Christie Group said:

"We entered 2010 in good shape with the upturn in activity maintained and with the full benefit of the cost reductions implemented during the first half of 2009. Time will tell whether the momentum of recovery will be sustained, but the outlook today is certainly a good deal more positive than at this time last year. We are well positioned to take full advantage of the recovery."

Enquiries:

David Rugg                                                                                                        020 7227 0707

Chief Executive

Christie Group plc

Russell Cook / Carl Holmes                                                                                020 7149 6000

Charles Stanley Securities

Nominated Adviser

Tom Cooper                                                                                                       0797 122 1972

Winningtons

Notes to Editors:

Christie Group plc (CTG.L), quoted on AIM, is a leading professional business services group with 31 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, Christie Finance, Christie Insurance and Pinders;

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 across the Group's business.

For more information, please go to www.christiegroup.com 

CHAIRMAN'S STATEMENT

Recovery in sight

I am pleased to present our full year results to 31 December 2009 against the backdrop of an economic outlook that is undoubtedly more buoyant than when I posted our Interim results in August 2009. The first quarter of 2010 has started positively and we expect to see that momentum building throughout the year.

As a result of prompt management action and cost management measures put in place by the Board, the operating loss for our second half to 31 December 2009 has reduced to £0.9m  against a first half loss of £2.7m. This makes a post tax loss for the year of £1.9m on turnover of £47.1m (2008: £63.4m for continuing businesses). The losses were funded from our own cash resources, as a result of which, we finished the year with no net borrowings and cash of £1.7m.

Our operating costs for the year amounted to £50.7m, (prior year £68.1m). Of this reduction, £15.1m was saved by our Professional Business Services Division which reduced costs by 35.7% over the prior year. Of the operating costs, £0.9m of the 2009 costs relate to depreciation (net of capital expenditure), amortisation, share schemes and other non-cash charges.

An achievement for which I think we can be justifiably proud is to have traded through the recession while incurring no net debt. There has been no requirement therefore for fund raising or other measures.

There are certain benefits to be gained from a recession, one of which is that other firms go back to their areas of traditional competence. Ours is the only firm with 24 offices specialising in business sales (hospitality, retail, care) and we now find that from a competitive view point we are trading in a less crowded marketplace. Our valuations benefit from an in-depth knowledge of market and price trends achieved through combining our extensive transaction data on completed sales with our visibility of current offers and acceptances in our transaction pipeline.

We believe that, for us, a year of recession bottomed in May 2009, since which point we have seen stable income. It is rare for transactions to be fully cash funded and therefore the availability of credit on commercial terms is a crucial driver for many of the transactions that we are engaged with. Initiatives are in place through a number of the commercial lenders to bolster the supply of credit to smaller businesses through the Enterprise Finance Guarantee scheme and by providing access to European Investment Bank funding.  

2010 has started positively. Activity levels have been good, since we emerged from the snow and ice early in the New Year, and margins have held up well. Our market position is strong as are our relationships with the banks and business introducers. 

I believe that once the general election is behind us, we will experience a continuing recovery supported by an improved broader economic sentiment. Reflecting our confidence in the future it is our intention to resume dividend payments assuming a sustained recovery.

I extend my thanks particularly to our Finance Director, Robert Zenker, who has been our capable financial steward for the past 16 years. We wish him well for the future.  I would like to thank all our staff who have risen magnificently to a challenging market.

Philip Gwyn

Chairman

CHIEF EXECUTIVE'S STATEMENT

We entered 2010 in good shape with the upturn in activity maintained and with the full benefit of the cost reductions implemented during the first half of 2009. Time will tell whether the momentum of recovery will be sustained, but the outlook today is certainly a good deal more positive than at this time last year. We are well positioned to take full advantage of the recovery.

Our markets

Our client base is largely the same across each of our sectors - leisure, retail and care - and our ability to take advantage of the synergy benefits of cross-selling more than one Group service to each of our businesses' clients has a marked positive effect on revenues and profitability. There are approximately a quarter of a million businesses in Christie Group's specialist sectors in the UK. Our aim is to create value for shareholders from each stage in the cycle of small and medium-sized enterprise (SME) ownership; represented by acquisition, funding, business development, stock control, insurance and disposal. The services offered by the Group touch each of these vital business disciplines and our success over the years is demonstrated by both the overall size of our client base and the substantial proportion of repeat business from entrepreneurs, funders and advisers.

We own perhaps the best known brands in our chosen sectors for the size of the businesses we target. This means that we are almost always considered for appointment when a suitable business requires one of the services we provide. The resulting active client base is diversified by geography, sector, stage of development and thus by risk.

Our businesses

Against the economic background outlined above, the Group's financial performance in 2009 represented a creditable achievement. Costs were contained or reduced across the board and a renewed emphasis on gaining new and realistic mandates instilled. Two of our three core sectors - leisure and retail - were hit hard by the downturn in consumer spending and it was only in the last quarter of the year that prices of businesses in these areas reduced sufficiently to tempt in opportunistic buyers. Our third sector, care, stood up much better in terms of prices as a result of its longer term revenues from government but even here, transaction levels reduced substantially, largely as a result of the restricted availability of bank financing, a factor which continues to affect SMEs in the UK economy.

Professional Business Services

This division had to cope with a precipitous fall in transaction prices. Depending on the sector, we calculate this to have been between 16% and 34% (average of 27% across our sectors) from peak to trough in early 2009 and an almost complete cessation of voluntary transactions; that is now beginning to recover. The first signs of this recovery became apparent at the end of 2009 when the first distressed sales of assets and businesses by corporates came on to the market. The response was surprisingly quick. Buyers with cash or access to cash took advantage of low prices and began to compete for assets, having apparently waited on the sidelines for purchases to become available at prices they considered reasonable.

The absence of pre-credit crunch levels of debt availability has led to a much stronger equity base - some 60% - behind property-based business acquisitions. We believe funding will remain in short supply as the heavy schedule of loan maturities for banks begins to bite. There are, however, new lenders beginning to take up some of the demand and this, together with an increase in the number of enquiries from potential buyers, is a positive sign.

Stock & Inventory Systems & Services

The trading environment has presented opportunities as well as issues for the businesses in this division. With working capital facilities under pressure, tight control of stock has become vital. Retailers now operate seven days a week on an efficient staff headcount. As a result, more and more functions are outsourced and our businesses in this area have benefited accordingly. Lower consumer spend, leading to pressure on margins, has also focused retailers' attention on 'just-in-time' availability counts to reduce stock levels and on the services we offer to control fraud, theft and shrinkage.

Consequently, we plan to raise capital expenditure in this division in 2010 to take advantage of these trends and to capitalise on the increased operating margins now available to us. We currently have a significant pipeline of new work and, given the current economic environment, a ready supply of potential staff.

With key software developments completed in 2009, including on-line ticketing, Vennersys now offers the leading system for visitor attractions in the UK.

Well positioned for the future

During what proved to be a difficult 2009, the business demonstrated both its resilience and financial strength. Resilience because of our volume of customers and clients across our markets and strength by the fact that we are one of the very few companies in the property services sector that has not had to call on its shareholders to provide additional equity funds.

The breadth, depth and longevity of the Group demonstrates to clients and potential clients that we represent a skilled and experienced practitioner that can be trusted to help them realise value from their businesses at every stage of the business cycle. We have reduced costs, improved efficiency and focused on our cross-selling activity during the last year.  Clients enjoy access to senior, experienced practitioners, which provides us with both a competitive advantage and client loyalty.

Distressed businesses are providing much of our current pipeline of activity and are creating almost unprecedented opportunities for entrepreneurs. We believe the normal cycle is restarting - but this time from a more financially sound base after business owners have deleveraged. We are confident that 2010 will mark a return to growth for the Group.

David Rugg

Chief Executive

Consolidated Statement of Comprehensive Income 

	Note	Year ended 31 December 2009 £'000	Year ended 31 December 2008 £'000
Continuing operations
Revenue		47,067	63,422
Employee benefit expenses*		(36,676)	(45,014)
		10,391	18,408
Depreciation and amortisation		(707)	(906)
Other operating expenses*		(13,338)	(22,140)
Operating loss		(3,654)	(4,638)
Finance costs	5	(148)	(162)
Finance income	5	101	227
Total finance (costs)/credit	5	(47)	65
Loss before tax		(3,701)	(4,573)
Taxation	6	1,752	1,173
Loss from continuing operations		(1,949)	(3,400)
Discontinued operations
- Loss from discontinued operations	7	-	(10,163)
Loss for the year after tax		(1,949)	(13,563)
Other comprehensive (losses)/income:
Exchange differences on translating foreign operations		(5)	1,102
Actuarial losses on defined benefit pension plans		(144)	-
Income tax relating to components of other		40	-
comprehensive income
Other comprehensive (losses)/income for the period, net of tax		(109)	1,102
Total comprehensive losses for the year		(2,058)	(12,461)
Earnings per share - pence
Loss attributable to the equity holders of the Company
-Basic	9	(8.30)	(55.39)
-Fully diluted	9	(8.30)	(55.39)
Loss from continuing operations attributable to the equity holders of the Company
-Basic	9	(8.30)	(13.88)
-Fully diluted	9	(8.30)	(13.88)

* These include £nil (2008: £1,964,000) of exceptional reorganisation costs.

The total loss for the year after tax and the total comprehensive loss for the year are entirely attributable to equity holders of the parent company.

Consolidated Statement of Changes in Shareholders' Equity as at 31 December 2009

Attributable to the Equity Holders of the Company
	Share capital £'000	Fair value and other reserves £'000	Cumulative translation reserve £'000	Retained earnings £'000	Total equity £'000
Balance at 1 January 2008	505	3,706	137	11,616	15,964
Exchange difference on repayment of foreign exchange loan	-	-	(758)	758	-
Movement in respect of employee share scheme	-	72	-	(28)	44
Employee share option scheme:
-value of services provided	-	98	-	-	98
Dividends paid				(794)	(794)
Release of merger reserve	-	(945)	-	945	-
Exchange differences on translating foreign operations			1,102	-	1,102
Loss for the year after tax	-	-	-	(13,563)	(13,563)
Balance at 1 January 2009	505	2,931	481	(1,066)	2,851
Movement in respect of employee share scheme	-	83	-	-	83
Employee share option scheme:
-value of services provided	-	92	-	-	92
Exchange differences on translating foreign operations	-	-	(5)	-	(5)
Actuarial losses on defined benefit pension plans	-	-	-	(144)	(144)
Tax relating to components of other comprehensive income				40	40
Loss for the year after tax	-	-	-	(1,949)	(1,949)
Balance at 31 December 2009	505	3,106	476	(3,119)	968

Consolidated Statement of Financial Position

		At 31 December 2009 £'000	At 31  December 2008 £'000
Assets
Non-current assets
Intangible assets - Goodwill		1,011	1,011
Intangible assets - Other		138	60
Property, plant and equipment		749	1,409
Deferred tax assets		3,067	2,063
Available-for-sale financial assets		300	300
Other receivables		1,192	1,108
		6,457	5,951
Current assets
Inventories		1	-
Trade and other receivables		8,524	9,506
Current tax assets		-	596
Cash and cash equivalents		3,536	2,328
		12,061	12,430
Total assets		18,518	18,381
Equity
Capital and reserves attributable to the Company's equity holders
Share capital		505	505
Fair value and other reserves		3,106	2,931
Cumulative translation reserve		476	481
Retained earnings		(3,119)	(1,066)
Total equity		968	2,851
Liabilities
Non-current liabilities
Retirement benefit obligations		3,594	3,225
Provisions for other liabilities and charges		1,720	1,751
		5,314	4,976
Current liabilities
Trade and other payables		8,631	9,289
Borrowings		2,694	706
Provisions for other liabilities and charges		911	559
		12,236	10,554
Total liabilities		17,550	15,530
Total equity and liabilities		18,518	18,381

These Consolidated financial statements have been approved for issue by the Board of Directors

on 26 March 2010.

D B Rugg

Chief Executive

D R Prickett

Chief Financial Officer

Consolidated Statement of Cash Flows for the year ended 31 December 2009

	Note	2009 £'000	2008 £'000
Cash flow from operating activities
Cash used in operations	10	(2,176)	(5,254)
Interest paid		(148)	(163)
Tax paid		1,384	(21)
Net cash used in operating activities		(940)	(5,438)
Cash flow from investing activities
Purchase of property, plant and equipment (PPE)		(80)	(1,103)
Proceeds from sale of PPE		5	204
Intangible asset expenditure		(59)	(1,590)
Proceeds from sale of Software businesses (net of costs)		-	1,797
Cash included in disposal of Software businesses		-	(749)
Investment in an available-for-sale asset		-	(19)
Proceeds from sale of available-for-sale financial asset		141	-
Interest received		101	227
Net cash generated from/(used in) investing activities		108	(1,233)
Cash flow from financing activities
Net payments to ESOP		201	(172)
Repayment of borrowings		-	(1,735)
Proceeds from invoice discounting		181	700
Payments of finance lease liabilities		(6)	(2)
Dividends paid		-	(794)
Net cash generated from/(used in) financing activities		376	(2,003)
Net decrease in net cash		(456)	(8,674)
Cash and cash equivalents at beginning of year		2,328	10,593
Exchange (losses)/gains on euro bank accounts		(149)	409
Cash and cash equivalents at end of year		1,723	2,328

Notes to the Consolidated Financial Statements

1. BASIS OF PREPARATION

The consolidated and Company financial statements of Christie Group plc have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (IFRSs as adopted by the EU), IFRIC Interpretations and the Companies Act 2006 applicable to Companies reporting under IFRS.  The consolidated and Company financial statements have been prepared under the historical cost convention with the exception of available for sale financial assets and defined benefit pension scheme, and on a going concern basis.

The financial statements have been prepared in accordance with IFRS and IFRIC interpretations issued and effective or issued and early adopted as at the time of preparing these statements (March 2010).

The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated and parent company financial statements are disclosed in Note 2.

New and amended standards adopted by the group

The Group and Company has adopted the following new and amended IFRSs as of 1 January 2009.

-     IAS 1 (revised). 'Presentation of financial statements' - effective 1 January 2009. The revised standard requires 'non-owner changes in equity' to be presented separately from owner changes in equity in a statement of comprehensive income. As a result the group presents in the consolidated statement of changes in equity all owner changes in equity, whereas all non-owner changes in equity are presented in the consolidated statement of comprehensive income. Comparative information has been re-presented so that it also is in conformity with the revised standard. As the change in accounting policy is only presentational there is no impact on earnings per share.

-     IFRS 2 (amendment), 'Share-based payment' (effective 1 January 2009) deals with vesting conditions and cancellations. It clarifies that vesting conditions are service conditions and performance conditions only. Other features of a share-based payment are not vesting conditions. These features would need to be included in the grant date fair value for transactions with employees and others providing similar services; they would not impact the number of awards expected to vest or valuation thereof subsequent to grant date. All cancellations, whether by the entity or by other parties, should receive the same accounting treatment. The amendment does not have a material impact on the group or company's financial statements.

Mandatory new standards or interpretations, effective for accounting periods beginning on or after 1 January 2009, not covered specifically above have no impact on the Group's financial statements.

Standards, interpretations and amendments to published standards that are not yet effective

Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for the Group or Company's accounting periods beginning on or after 1 January 2010 or later periods and have not been early adopted. It is anticipated that these new standards, amendments and interpretations, currently in issue at the time of preparing these financial statements (March 2010) will have no material impact on the Group or Company's financial statements.

2. 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.

2.1 Critical accounting estimates and assumptions

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 discussed below.

(a) Estimated impairment of goodwill

Goodwill is subject to an impairment review both annually and when there are indications that the carrying value may not be recoverable.  The recoverable amounts of cash-generating units have been determined based on value-in-use calculations.  These calculations require the use of estimates.

(b)  Retirement benefit obligations

The assumptions used to measure the expense and liabilities related to the Group's two defined benefit pension plans are reviewed annually by professionally qualified, independent actuaries, trustees and management as appropriate.  The measurement of the expense for a period requires judgement with respect to the following matters, among others:

-      the probable long-term rate of increase in pensionable pay;

-      the discount rate;

-      the expected return on plan assets; and

-      the estimated life expectancy of participating members.

The assumptions used by the Group, may differ materially from actual results, and these differences may result in a significant impact on the amount of pension expense recorded in future periods.  In accordance with IAS 19, the Group amortises actuarial gains and losses outside the 10% corridor, over the average future service lives of employees.  Under this method, major changes in assumptions, and variances between assumptions and actual results, may affect retained earnings over several future periods rather than one period, while more minor variances and assumption changes may be offset by other changes and have no direct effect on retained earnings.

(c) Deferred taxation

      Deferred tax assets are recognised to the extent that the Group believes it is probable that future taxable profit will be available against which temporary timing differences and losses from previous periods can be utilised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the statement of financial position date and are expected to apply when the related deferred tax asset is realised.

3. SEGMENT INFORMATION

The Group is organised into two main business segments:  Professional Business Services and Stock & Inventory Systems & Services.

The segment results for the year ended 31 December 2009 are as follows:

	Professional Business Services £'000	Stock & Inventory Systems &  Services £'000	Other £'000	Total continuing operations £'000	Discontinued operations £'000	Group £'000
Total gross segment sales	23,370	23,801	2,226	49,397	-	49,397
Inter-segment sales	(104)	-	(2,226)	(2,330)	-	(2,330)
Revenue	23,266	23,801	-	47,067	-	47,067
Operating (loss)/profit after exceptional items	(3,906)	470	(218)	(3,654)	-	(3,654)
Net finance (costs)/credit	(154)	(24)	131	(47)	-	(47)
Loss before tax	(4,060)	446	(87)	(3,701)	-	(3,701)
Taxation				1,752	-	1,752
Loss for the year after tax				(1,949)	-	(1,949)

The segment results for the year ended 31 December 2008 are as follows:

	Professional Business Services £'000	Stock & Inventory Systems &  Services £'000	Other £'000	Total continuing operations £'000	Discontinued operations £'000	Group £'000
Total gross segment sales	37,011	26,515	2,941	66,467	9,691	76,158
Inter-segment sales	(104)	-	(2,941)	(3,045)	-	(3,045)
Revenue	36,907	26,515	-	63,422	9,691	73,113
Operating (loss)/profit before exceptional items	(3,396)	564	158	(2,674)	(3,162)	(5,836)
Exceptional items	(1,964)	-	-	(1,964)	-	(1,964)
Net loss on disposal of Retail Software business	-	-	-	-	(6,193)	(6,193)
Operating (loss)/profit after exceptional items	(5,360)	564	158	(4,638)	(9,355)	(13,993)
Net finance credit/(costs)	127	(42)	(20)	65	(1)	64
Loss before tax	(5,233)	522	138	(4,573)	(9,356)	(13,929)
Taxation				1,173	(807)	366
Loss for the year after tax				(3,400)	(10,163)	(13,563)

Other segment items included in the statements of comprehensive income for the years ended 31 December 2009 and 2008 are as follows:

	Professional Business Services £'000	Stock & Inventory Systems &  Services £'000	Other £'000	Total continuing operations £'000	Discontinued operations £'000	Group £'000
31 December 2009
Depreciation and amortisation	313	365	29	707	-	707
Impairment of trade receivables	(501)	69	-	(432)	-	(432)
31 December 2008
Depreciation and amortisation	383	492	31	906	244	1,150
Impairment of trade receivables	856	36	-	892	43	935

The segment assets and liabilities at 31 December 2009 and capital expenditure for the year then ended are as follows:

	Professional Business Services £'000	Stock & Inventory Systems &  Services £'000	Other £'000	Total continuing operations £'000	Discontinued operations £'000	Group £'000
Assets	6,886	4,906	3,659	15,451	-	15,451
Deferred tax assets				3,067	-	3,067
				18,518	-	18,518
Liabilities	9,540	4,479	837	14,856	-	14,856
Borrowings (excluding finance leases)				2,694	-	2,694
				17,550	-	17,550
Capital expenditure	4	135	-	139	-	139

The segment assets and liabilities at 31 December 2008 and capital expenditure for the year are as follows;

	Professional Business Services £'000	Stock & Inventory Systems &  Services £'000	Other £'000	Total continuing operations £'000	Discontinued operations £'000	Group £'000
Assets	6,413	6,135	3,174	15,722	-	15,722
Deferred tax assets						2,063
Current tax assets						596
						18,381
Liabilities	8,721	5,144	965	14,830	-	14,830
Borrowings (excluding finance leases)						700
						15,530
Capital expenditure	532	363	8	903	1,790	2,693

Segment assets consist primarily of property, plant and equipment, intangible assets, inventories, receivables and operating cash.  They exclude taxation.

Segment liabilities comprise operating liabilities. They exclude items such as taxation and corporate borrowings.

Capital expenditure comprises additions to property, plant and equipment and intangible assets.

The Group manages its business segments on a global basis.  The UK is the home country of the parent. The Group's revenue is mainly in Europe.  Revenue is allocated based on the country in which the customer is located.

	31 December 2009			31 December 2008
	Continuing operations £'000	Discontinued operations £'000	Group £'000	Continuing operations £'000	Discontinued operations £'000	Group £'000
Revenue
Europe	46,577	-	46,577	62,508	9,691	72,199
Rest of the World	490	-	490	914	-	914
	47,067	-	47,067	63,422	9,691	73,113
Total segment assets are allocated based on where the assets are located.
	31 December 2009			31 December 2008
	Continuing operations £'000	Discontinued operations £'000	Group £'000	Continuing operations £'000	Discontinued operations £'000	Group £'000
Total segment assets
Europe	15,335	-	15,335	14,837	-	14,837
Rest of the World	116	-	116	885	-	885
	15,451	-	15,451	15,722	-	15,722

Capital expenditure is allocated based on where the assets are located.

	31 December 2009			31 December 2008
	Continuing operations £'000	Discontinued operations £'000	Group £'000	Continuing operations £'000	Discontinued operations £'000	Group £'000
Capital expenditure
Europe	139	-	139	903	1,790	2,693
Rest of World	-	-		-	-	-
	139	-	139	903	1,790	2,693

	31 December 2009			31 December 2008
	Continuing operations £'000	Discontinued operations £'000	Group £'000	Continuing operations £'000	Discontinued operations £'000	Group £'000
Analysis of revenue by category
Sale of goods	307	-	307	405	2,836	3,241
Revenue from services	46,760	-	46,760	63,017	6,855	69,872
	47,067	-	47,067	63,422	9,691	73,113

4. EXCEPTIONAL ITEMS

During the year the Group incurred £nil (2008: £1,964,000) of exceptional reorganisation costs.

5. FINANCE COSTS/(CREDIT)

	2009 £'000	2008 £'000
Interest payable on bank loans and overdrafts	80	127
Other interest payable	68	34
Interest payable on finance leases	-	1
Total finance costs	148	162
Bank interest receivable	(9)	(178)
Other interest receivable	(92)	(49)
Total finance credit	(101)	(227)
Net finance costs/(credit) - continuing operations	47	(65)
Discontinued operations interest payable	-	1
Net finance costs/(credit)	47	(64)

6. TAXATION

	2009 £'000	2008 £'000
Current tax
UK Corporation tax at 28% (2008: 28%)	29	(981)
Foreign tax	15	-
Adjustment in respect of prior periods	(832)	-
Total current tax credit	(788)	(981)
Deferred tax
Origination and reversal of timing differences	(1,004)	(192)
Unutilised losses surrendered on disposal	-	807
Total deferred tax (credit)/charge	(1,004)	615
Tax credit on loss on ordinary activities	(1,792)	(366)

The tax (credit)/charge is split between continuing and discontinued activities as follows:

	2009 £'000	2008 £'000
Continuing operations	(1,792)	(1,173)
Discontinued operations	-	807
	(1,792)	(366)

The tax on the Group's loss before tax differs from the theoretical amount that would arise using the standard rate of corporation tax in the UK of 28% as follows:

Tax on loss on ordinary activities

	2009 £'000	2008 £'000
Loss on ordinary activities before tax	(3,845)	(13,929)
Loss on ordinary activities at standard rate of UK corporation tax of 28% (2008: 28%)	(1,077)	(3,900)
Effects of:
- tax losses not yet utilised	747	648
- expenses not deductible for tax purposes	685	2,605
- taxable deductions	(362)	(393)
- utilisation of tax losses and other deductions	(384)	-
- adjustment to tax charge in respect of previous periods	(833)	-
- fixed asset timing differences	(328)	6
- other timing differences	(242)	119
- rate differential on certain tax losses	2	(66)
- origination and reversal of timing differences	-	(192)
- unutilised losses surrendered on disposal	-	807
Total tax credit	(1,792)	(366)

7.  DISCONTINUED OPERATIONS

The results of the discontinued operations are summarised below:

		2008 £'000
Profit on disposal of Retail Software business		2,135
Fair value adjustment of Retail Software business assets		(8,328)
Net loss on disposal of Retail Software business		(6,193)
Loss for the period after tax of the Retail Software business		(3,794)
Total loss of the Retail Software business		(9,987)
Loss for the period after tax of Christie Corporate Finance		(176)
		(10,163)

7A. RETAIL SOFTWARE BUSINESS

On 30 September 2008 the Group completed the disposal of its Retail Software business for consideration of €4,000,000 cash, translating to £3,164,000 on exchange. Associated costs of disposal were £1,367,000, with net liabilities on disposal amounting to £338,000, resulting in a profit on disposal of £2,135,000 as set out below:

		2008 £'000
Consideration received		3,164
Costs		(1,367)
Net liabilities at 30 September 2008		338
Profit on disposal		2,135

Prior to the completion of the disposal of the Software business an adjustment to fair values was recognised of £8,328,000 as follows:

		2008 £'000
Intangible assets - Goodwill		3,085
Intangible assets - Other		4,566
Current tax assets		677
		8,328

The results for the Retail Software business are presented below:

		2008 £'000
Revenue		9,671
Employee benefit expenses		(7,692)
		1,979
Depreciation, amortisation and impairment		(244)
Other operating expenses		(4,722)
Operating loss		(2,987)
Taxation		(807)
Loss for the period after tax		(3,794)

The net cash flows after tax of this discontinued operation are as follows:

		2008 £'000
Operating activities		(332)
Investing activities		(742)
Net cash outflow		(1,074)

7B. CHRISTIE CORPORATE FINANCE

On 1 August 2008 Christie Corporate Finance was closed.  This was previously included in the Professional Business Services segment.  From this date it has been classified as a discontinued operation. 

The results for Christie Corporate Finance are presented below:

		2008 £'000
Revenue		20
Employee benefit expenses		(168)
		(148)
Other operating expenses		(27)
Operating loss		(175)
Total finance costs		(1)
Loss for the period		(176)

8. DIVIDENDS

Group and Company	2009 £'000	2008 £'000
Interim
2008 interim, paid October 2008 (0.50p)	-	123
Final
2007 final, paid June 2008 (2.75p)	-	671
	-	794

9. 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 year, which excludes the shares held in the Employee Share Ownership Plan (ESOP) trust.

	31  December  2009 £'000	31 December 2008  £'000
Loss from continuing operations attributable to equity holders of the Company	(2,053)                          -	(3,400) (10,163)
Loss from discontinued operations attributable to equity holders of the Company
Loss from total operations attributable to equity holders of the Company	(2,053)	(13,563)
	31  December  2009 Thousands	31 December 2008 Thousands
Weighted average number of ordinary shares in issue	24,722 1	24,486 74
Adjustment for share options
Weighted average number of ordinary shares for diluted earnings per share	24,723	24,560

	31 December 2009 Pence	31 December 2008 Pence
Basic earnings per share
Continuing operations	(8.30) -	(13.88) (41.51)
Discontinued operations
Total operations	(8.30)	(55.39)
Fully diluted earnings per share
Continuing operations	(8.30)	(13.88)
Discontinued operations	-	(41.51)
Total operations	(8.30)	(55.39)

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 dilutive potential ordinary shares:  share options.  The basic and diluted loss per share is the same, as the exercise of share options would reduce the loss per share and is, therefore, anti-dilutive.

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.

10. NOTES TO THE CASH FLOW STATEMENT

Cash used in operations

			Group		Company
		2009	2008	2009	2008
		£'000	£'000	£'000	£'000
Continuing operations
(Loss)/profit for the year		(1,949)	(3,400)	392	(8,163)
Adjustments for:
-	Taxation	(1,752)	(1,173)	(779)	(189)
-	Finance costs/(credit)	47	(65)	(176)	(7,626)
-	Impairment of investments in subsidiaries	-	-	13	3,313
-	Depreciation	641	890	-	-
-	Amortisation of intangible assets	66	16	-	-
-	Loss/(profit) on sale of property, plant and equipment	5	(28)	-	-
-	Loss on sale of intangible assets	-	13	-	-
-	Foreign currency translation	30	279	-	(352)
-	Increase in provision for other liabilities and charges	321	1,861	-	-
-	Movement in available-for-sale financial asset	(141)	19	(141)	19
-	Movement in share option charge	92	98	1	1
-	Movement in retirement benefit obligation	225	(1,069)	9	(77)
-	Increase in non-current other receivables	(84)	-	-	-
Changes in working capital (excluding the effects exchange differences on consolidation):
-	Increase in inventories	(1)	-	-	-
-	Decrease/(increase) in trade and other receivables	982	1,260	(2,933)	1,021
-	(Decrease)/increase in trade and other payables	(658)	(3,473)	(667)	1,769
Cash used in continuing operations		(2,176)	(4,772)	(4,281)	(10,284)
Discontinued operations
Loss for the year		-	(10,163)	-	-
Adjustments for:
-	Taxation	-	807	-	-
-	Finance costs	-	1	-	-
-	Depreciation	-	211	-	-
-	Amortisation and impairment of intangible assets	-	33	-	-
-	Fair value adjustment of Retail Software business assets	-	8,328	-	-
-	Profit on sale of Retail Software business	-	(2,135)	-	-
-	Foreign currency translation	-	(529)	-	-
Changes in working capital (excluding the effects exchange differences on consolidation):
-	Increase in inventories	-	(145)	-	-
-	Increase in trade and other receivables	-	(837)	-	-
-	Increase in trade and other payables	-	3,947	-	-
Cash used in discontinued operations		-	(482)	-	-
Cash used in operations		(2,176)	(5,254)	(4,281)	(10,284)

11. RECONCILIATION OF MOVEMENT IN NET FUNDS

		As at 1 January 2009 £'000	Cash flow £'000	As at             31 December 2009 £'000
Cash and cash equivalents		2,328	1,208	3,536
Bank overdrafts		-	(1,813)	(1,813)
Invoice discounting		(700)	(181)	(881)
Finance leases due within one year		(6)	6	-
		1,622	(780)	842

Financial information

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2009 or 2008, but is derived from those accounts. Statutory accounts for 2008 have been delivered to the Registrar of Companies and those for 2009 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under either Section 498(2) or (3) of the Companies Act 2006.

Key dates

The Annual Report and Financial Statements are scheduled to be posted to shareholders in early May.  The Annual General Meeting of the Company is scheduled to take place at 10am on Wednesday 16 June 2010 at 39 Victoria Street, London, SW1H 0EU. 

Group Companies

Professional Business Services

Christie + Co

Christie + Co is the leading specialist firm providing business intelligence in the hospitality, leisure, retail and care sectors. With offices across the UK, it focuses on agency, valuation services, investment and consultancy activity in its key sectors. Internationally, it operates from offices in the UK, Finland, France, Germany and Spain.

www.christie.com

www.christiecorporate.com

Christie Finance

Christie Finance has over 30 years' experience in financing businesses in the hospitality, leisure, care and retail sectors. Its excellent relationships with the clearing banks, centralised lenders, finance houses and building societies make it the market leader in providing finance solutions for purchase or re-financing in its specialist sectors.

www.christiefinance.com

Christie Insurance

With over 30 years' experience arranging business insurance in the hospitality, leisure, care and retail sectors, Christie Insurance is a leading company in its markets. Its excellent contacts with the UK's leading insurers enable it to provide a premier service including tailored insurance schemes.

www.christieinsurance.com

Pinders

Pinders is the UK's leading specialist business appraisal, valuation and consultancy company, providing professional services to the licensed leisure, retail and care sectors, and also the commercial and corporate business sectors. Its Building Consultancy Division offers a full range of project management, building monitoring and building surveying services.

www.pinders.co.uk

www.pinderpack.com

Stock & Inventory Systems & Services

Orridge

Europe's longest established stocktaking business specialising in all fields of retail stocktaking including high street, warehousing and factory. It also has a specialised pharmacy division providing valuation and stocktaking services. A full range of stocktaking and inventory management solutions is provided for a wide range of clients in the UK and Europe.

www.orridge.co.uk

Venners

The leading supplier of stocktaking, inventory, control audit and related stock management services to the hospitality sector. Bespoke software and systems enable real time management reporting to its customer base using the most up-to-date technology.

www.venners.com

Vennersys

Vennersys provides software and systems to the leisure and hospitality sectors. It operates in the UK and North America and includes cinemas and visitor attractions among its clients.

www.vennersys.com

 

END

 

 

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