Interim Results
Christie Group PLC
10 September 2004
CHRISTIE GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2004
Chairman's Interim Statement to 30 June 2004
I am pleased to report that our operating profit for the half year to 30 June
2004 has risen to £1.4 million (2003 - £0.8 million) on increased sales of £35.7
million (2003 - £31.6 million). This improvement has been reflected in our eps
of 2.41p (2003 - 1.37p). The Board have declared an interim dividend which
remains at 1p per share.
Some highlights are detailed below, but the mix includes 16% sales growth in our
Professional Business Services Division; a good performance from the recently
acquired retail stocktaking business, Orridge, but lower sales from the software
businesses which have faced difficult market conditions.
As reported at the time of releasing our figures for 2003, the integration and
revitalisation of the Orridge Retail Stocktaking business is proceeding well.
This is illustrated by the improvement in our Stock and Inventory Services
Division to a profit of £0.5 million from a loss of £0.1 million in the
corresponding period last year. Impressively, turnover has risen from £8.6
million to £11.3 million for the half year as we continue to add new contracts.
Our Software Solutions Business has seen an increase in retail exports through
our newly established offices in Italy and the UK with recent signings such as
Rangers Football Club and Sarah Lee (branded apparel) in Italy, and elsewhere in
territories such as Israel and China with the assistance of local distributors.
Our Hospitality business has been amalgamated in the UK with our Retail
business, which has facilitated a reduction in future costs through some
rationalisation of services.
The costs of our new software product development for this division for the 2004
year and subsequent periods are being capitalised as a precursor to the new
International Financial Reporting Standards being introduced in 2005. The
figure capitalised in the half year was £206,000 (2003 - nil). The development
programme will generate new income from 2006.
Our Professional Services business enjoyed a strong first half, with turnover up
16% and profits increased by 38%. For the first time, all branches of our newly
completed Financial Services UK network made a contribution.
Agency sales remained buoyant throughout the first half in all of our chosen
sectors of activity. Our corporate advisory teams were busy in the period
providing transactional, investment and valuation advice to clients including
QMH, Thistle Hotels, Network Rail and Travelodge.
During the period, we relocated both the Group and Christie & Co's head offices
to larger and more modern premises adjacent to our former Victoria Street
location. We believe that the Greater London agency business (where our Group
has its origins) offers scope for increased levels of profitable trade. To gain
further share of the London market, we will be opening two further London sales
offices under the Christie & Co brand and utilising the christie.com website.
These offices will be located 'North and South'.
Our International agency offices have increased turnover and moved closer to
profitability whilst remaining a long way from maturity.
The heralding of higher interest rates keeps us watchful of our weekly sales
indicators, but we are experiencing no weakening of our sales volumes.
Enquiries:
Christie Group +44 20 7227 0707 Philip Gwyn, Chairman
David Rugg, Chief Executive
Robert Zenker, Finance Director
www.christiegroup.com
Brunswick +44 20 7404 5959 Regina Kilfoyle
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited Unaudited Audited
half year to half year to year to
30 June 2004 30 June 2003 31 Dec 2003
Notes £000 £000 £000
Turnover 2 35,694 31,617 62,457
Staff costs 3 (19,969) (16,861) (34,933)
15,725 14,756 27,524
Other operating charges before goodwill amortisation (14,082) (13,661) (24,279)
Goodwill amortisation (269) (267) (551)
Total other operating charges (14,351) (13,928) (24,830)
Operating profit 1,374 828 2,694
Finance charges net (112) (96) (206)
Profit on ordinary activities before taxation 1,262 732 2,488
Tax on profit on ordinary activities 4 (668) (397) (1,469)
Profit on ordinary activities after taxation 594 335 1,019
Dividends 5 (228) (244) (722)
Retained profit for the period 366 91 297
Earnings per share
- basic 6 2.41p 1.37p 4.15p
- fully diluted 6 2.37p 1.37p 4.14p
- basic before goodwill amortisation 6 3.50p 2.46p 6.39p
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Unaudited Unaudited Audited
half year to half year to year to
30 June 2004 30 June 2003 31 Dec 2003
£000 £000 £000
Profit on ordinary activities after taxation 594 335 1,019
Gain/(loss) on foreign currency translation 39 (26) (240)
Total gains and losses recognised relating to the period 633 309 779
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
30 June 2004 30 June 2003 31 Dec 2003
£000 £000 £000
Fixed assets
Tangible assets 2,573 3,122 2,631
Investments 424 278 424
Intangible assets 3,874 4,277 3,953
6,871 7,677 7,008
Current assets
Stocks 272 241 312
Debtors - due within one year 16,391 14,655 12,635
- due after one year 445 283 445
Investment held for resale 504 - 504
Cash at bank and in hand 2,312 1,563 4,346
19,924 16,742 18,242
Creditors - amounts falling due within one year (18,692) (12,980) (17,518)
Net current assets 1,232 3,762 724
Total assets less current liabilities 8,103 11,439 7,732
Creditors - amounts falling due after more than one year (79) (3,915) (152)
Net assets 8,024 7,524 7,580
Capital and reserves
Called up share capital 495 490 493
Share premium 3,822 3,718 3,780
Merger reserve 945 945 945
Capital redemption reserve 10 10 10
Profit and loss account 2,749 2,354 2,346
Shareholders' funds - equity interests 8,021 7,517 7,574
Minority interest 3 7 6
8,024 7,524 7,580
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
30 June 2004 30 June 2003 31 Dec 2003
£000 £000 £000
Net cash (outflow)/inflow from operating activities (1,313) (905) 4,151
Returns on investments and servicing of finance (112) (96) (206)
Taxation paid (750) (795) (1,067)
Capital expenditure and financial investment (671) (520) (1,262)
Equity dividends (paid)/received (480) 1 (597)
Cash (outflow)/inflow before financing (3,326) (2,315) 1,019
Financing 62 (99) (170)
(Decrease)/increase in cash in the period (3,264) (2,414) 849
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
The financial information in this interim report does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. Statutory
accounts for the year ended 31 December 2003, upon which the auditors gave an
unqualified opinion, have been delivered to the Registrar of Companies.
With the exception of software development costs the unaudited results continue
to be prepared in accordance with the accounting policies set out in the
financial statements for the year ended 31 December 2003.
Anticipating the International Financial Reporting Standard the group has
capitalised software development costs. This represents a change of accounting
policy from prior periods when development costs were written off in the year in
which they arose. Software development costs capitalised in the period to 30
June 2004 amounted to £206,000. There is no impact on the results in respect of
prior periods.
A subsidiary company bank loan of £3,824,000, which is currently being
renegotiated, is included within current liabilities.
2. Segmental information
Turnover and operating profit/(loss)
Unaudited half year to Unaudited half year to Audited year to
30 June 2004 30 June 2003 31 Dec 2003
Turnover Operating Turnover Operating Turnover Operating
Profit/(loss) Profit/(loss) Profit/(loss)
Division £000 £000 £000 £000 £000 £000
Professional Business
Services 18,298 1,752 15,794 1,272 34,122 4,595
Software Solutions 6,131 *(843) 7,269 (364) 15,812 (374)
Stock and Inventory
Services 11,265 **465 8,554 (80) 12,523 (1,527)
Total 35,694 1,374 31,617 828 62,457 2,694
*The operating loss for Software Solutions includes goodwill amortisation of
£248,000 (2003: £248,000).
**The operating profit for Stock and Inventory Services includes goodwill
amortisation of £21,000 (2003: £19,000).
3. Particulars of employees and staff costs
Half year to Half year to Year to
30 June 2004 30 June 2003 31 Dec 2003
The average number of people employed by the Group (including 1,316 1,131 1,066
directors)
Their aggregate remuneration (£000) 19,969 16,861 34,933
4. Taxation
The tax charge for the six months has been based on the estimated effective tax
rate for the year to 31 December 2004 of 42%. A deferred tax asset of £445,000
was recognised at 31 December 2003 and there has been no material change in the
position at 30 June 2004 (30 June 2003: £283,000).
5. Dividend
The dividend of 1p per share will be payable to shareholders on the record on 29
October 2004. The ex-dividend date will be 27 October 2004. The dividend will be
paid on 26 November 2004.
6. Earnings per share
Half year to Half year to Year to
30 June 2004 30 June 2003 31 Dec 2003
Earnings per share - basic
Profit attributable to shareholders (£000) 594 335 1,019
Average number of ordinary shares of 2p each in issue during the period 24,677,307 24,513,162 24,559,471
Earnings per share - fully diluted
Profit attributable to shareholders (£000) 594 335 1,019
Average number of ordinary shares of 2p each in issue during the
period after allowing for the exercise of outstanding share options 25,114,770 24,378,821 24,595,162
Earnings per share - basic before goodwill amortisation
Profit attributable to shareholders before goodwill amortisation (£000) 863 602 1,570
Average number of ordinary shares of 2p each in issue during the period 24,677,307 24,513,162 24,559,471
7. Interim report
Copies of the interim report are available from Christie Group plc, 39 Victoria Street, London SW1H 0EU.
GROUP COMPANIES
PROFESSIONAL BUSINESS SERVICES SOFTWARE SOLUTIONS STOCK AND INVENTORY SERVICES
The expertise offered by Christie & Co The two arms of VcsTimeless Orridge and Venners are the
and Christie First covers all aspects specialise in sophisticated IT leading specialists in stock
of valuing, buying, selling, financing systems and solutions designed to control and inventory management
and insuring a wide variety of capture and control the complex sales services. Employing
businesses. Its scope is complemented and other data connected with the state-of-the-art technologies and
by the comprehensive appraisal and management of cinemas, hotels, bespoke software, the division is
project management services available restaurants, leisure complexes, focused on Europe, where both
from Pinders. warehouses and retail outlets companies have a major share of
internationally. the retail and leisure sectors.
CHRISTIE & CO www.christie.com VCSTIMELESS (HOSPITALITY) ORRIDGE www.orridge.co.uk
The leading firm of surveyors, valuers www.vcstimeless.com Europe's longest established
and agents specialising in the Specialists in software for leisure stocktaking business specialising
leisure, retail and care sectors. and hospitality businesses in all fields of retail
International operations based in internationally, including cinemas, stocktaking including high street,
Barcelona, Frankfurt and Paris. visitor attractions, hotels, bars and warehousing and factory. In
Offices throughout the UK with restaurants. Solutions include EPoS, addition, it has a specialised
valuation, agency, development and chip and pin, stock control, back pharmacy division providing
investment teams focused on its key office, head office and ticketing valuation and stocktaking
sectors. software. services. A full range of
stocktaking and inventory
management solutions is provided
for a wide range of clients in the
UK and Europe.
VCSTIMELESS (RETAIL)
CHRISTIE FIRST www.christiefirst.com www.vcstimeless.com VENNERS www.venners.com
The market leader in finance and Leading specialists in integrated Leading supplier of stocktaking,
insurance for the leisure, retail and software solutions and related inventory, control audit and
care sectors. Services include finance services for the non-food retail related stock management services
for business purchase or re-financing industry - including fashion, sports to the hospitality and retail
arranged in conjunction with major and home improvements - dedicated to sectors. Bespoke software and
financial institutions, and the single and multi-channel retailers. systems enable real time
provision of tailored insurance Solutions include head office, management reporting to its
schemes. in-store, chip and pin, manufacturing customer base using the most
and retail business intelligence up-to-date technology.
software.
PINDERS www.pinders.co.uk and
www.pinderpack.com
The UK's leading independent
specialist business appraisal company,
undertaking valuations, consultancy,
building surveying and professional
services for a broad range of clients
in the leisure, retail and care
sectors.
This information is provided by RNS
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