RNS Number:5258P
Christie Group PLC
09 September 2003
CHRISTIE GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2003
Highlights
* Group turnover up by 47% to #31.6 million (2002: #21.5 million)
* Trading profit up to #1.1 million (2002: #147,000)
* Interim dividend maintained at 1p
Philip Gwyn, Chairman of Christie Group, said, "We are delighted to announce
such strong results in a challenging market with growth driven by existing
businesses as well by as our acquisition of Orridge at the end of 2002. "
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 Alison Howard
Chairman's Interim Statement to 30 June 2003
The half year saw Group turnover grow by 47% to #31.6 million as against the
previous comparable half year (#21.5 million). The trading profit amounted to
#1.1 million as against #147,000. The interim dividend is maintained at 1p per
share.
The components of the sales growth came as to 26% from organic growth and 21%
from our acquisition of the retail stocktaking business, Orridge.
Our Professional Business Services activities which embrace Christie & Co
(business sales and valuations), Christie First (financial services) and Pinders
(valuers to central lenders and the finance broker market) saw an overall 24%
sales growth with Christie First and Pinders showing a strong 54% and 45% sales
growth respectively. Our European offices traded with diminished losses
compared with the previous year, with the Spanish office moving into profit.
Both Germany and France have had management reorganisations and we expect to see
further improvement in the second half of the year.
The retail software solutions business, VcsTimeless, traded profitably in France
under its new management. As part of its expansion strategy, it has
established new offices in Italy and the UK in addition to those in France and
Spain. These will necessarily depress results in the short term but form an
essential part of future growth. VcsTimeless Hospitality, which is focused on
leisure and entertainment, saw diminished losses. Overall, the software
business saw 54% sales gains.
The retail stocktaking business of Orridge was acquired just before the start of
the year. As planned, we have invested in new radio-frequency stocktaking
systems and our proven proprietary software, removed surplus property overhead
and renegotiated operating leases, thereby reducing the costs. We have
strengthened the management team and improved efficiency: the business is now on
a sound footing. Taken together with Venners, which is principally involved in
licensed trade stocktaking, this represents a near doubling of the overall
business. Stock and Inventory Services can now be seen as a distinct Group
activity.
We continue to be committed to our strategy of developing these coherent
platforms and, subject to market conditions, feel confident of prospects for the
full year.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited Unaudited Audited
half year to half year to year to
30 June 2003 30 June 2002 31 Dec 2002
Notes #000 #000 #000
Turnover 2 31,617 21,472 46,473
Net operating charges (30,522) (21,325) (43,859)
Trading profit 1,095 147 2,614
Goodwill amortisation (267) (248) (497)
Operating profit/(loss) 828 (101) 2,117
Finance charges net (96) (76) (164)
Profit/(loss) on ordinary activities before taxation 732 (177) 1,953
Tax on profit/(loss) on ordinary activities 4 (397) (28) (1,182)
Profit/(loss) on ordinary activities after taxation 335 (205) 771
Dividends paid and proposed 5 (244) (250) (625)
Retained profit/(loss) for the period 91 (455) 146
Earnings/(loss) per share
- basic 6 1.37p (0.81p) 3.06p
- basic before goodwill amortisation 6 2.46p 0.17p 5.03p
- diluted 6 1.37p (0.81p) 3.08p
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Unaudited Unaudited Audited
half year to half year to year to
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
Profit/(loss) on ordinary activities after taxation 335 (205) 771
Loss on foreign currency translation (26) (157) (146)
Total gains and losses recognised 309 (362) 625
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
Fixed assets
Tangible assets 3,122 2,408 2,749
Investments 278 - 278
Intangible assets:
- goodwill 4,235 3,840 4,362
- other 42 44 38
7,677 6,292 7,427
Current assets
Stocks 241 350 336
Debtors - due within one year 14,655 9,329 10,148
- due after one year 283 324 283
Cash at bank and in hand 1,563 2,223 3,051
16,742 12,226 13,818
Creditors - amounts falling due within one year (12,980) (7,737) (10,098)
Net current assets 3,762 4,489 3,720
Total assets less current liabilities 11,439 10,781 11,147
Creditors - amounts falling due after more than one year (3,915) (3,716) (3,687)
Net assets 7,524 7,065 7,460
Capital and reserves
Called up share capital 490 500 490
Share premium 3,718 3,707 3,718
Merger reserve 945 945 945
Capital redemption reserve 10 - 10
Profit and loss account 2,354 1,913 2,289
7,517 7,065 7,452
Minority interest 7 - 8
Shareholders' funds - equity interests 7,524 7,065 7,460
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
Net cash (outflow)/inflow from operating activities (905) 856 4,309
Returns on investments and servicing of finance (96) (85) (216)
Taxation paid (795) (121) (686)
Capital expenditure (520) (294) (892)
Acquisition - - (569)
Equity dividends received/(paid) 1 (382) (633)
Cash (outflow)/inflow before financing (2,315) (26) 1,313
Financing (99) (3) (521)
(Decrease)/increase in cash in the period (2,414) (29) 792
Notes to the interim results
1. Basis of preparation
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
2002.
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 2002 upon which the auditors gave an
unqualified opinion, have been delivered to the Registrar of Companies.
2. Segmental information
Turnover and operating profit/(loss)
Unaudited half year to Unaudited half year to Audited year to
30 June 2003 30 June 2002 31 Dec 2002
Turnover Operating Turnover Operating Turnover Operating
Profit/(loss) Profit/(loss) Profit/(loss)
Division #000 #000 #000 #000 #000 #000
Professional Business 15,794 1,272 12,756 389 28,246 2,653
Services 8,554 *(80) 3,985 392 7,790 601
Stock & Inventory 7,269 **(364) 4,731 (882) 10,437 (1,137)
Services
Software Solutions
Total 31,617 828 21,472 (101) 46,473 2,117
* The operating loss for Stock & Inventory Services includes goodwill
amortisation of #19,000 (2002: nil).
** The operating loss for Software Solutions includes goodwill amortisation of
#248,000 (2002: #248,000).
Turnover by origin
Unaudited half year to
30 June 2003
Total Professional Stock & Software
Business Inventory Solutions
Services Services
#000 #000 #000 #000
Europe 31,357 15,794 8,554 7,009
Rest of the World 260 - - 260
Total 31,617 15,794 8,554 7,269
Unaudited half year to
30 June 2002
Total Professional Stock & Software
Business Inventory Solutions
Services Services
#000 #000 #000 #000
Europe 21,149 12,751 3,985 4,413
Rest of the World 323 5 - 318
Total 21,472 12,756 3,985 4,731
Audited year to
31 Dec 2002
Total Professional Stock & Software
Business Inventory Solutions
Services Services
#000 #000 #000 #000
Europe 45,958 28,246 7,790 9,922
Rest of the World 515 - - 515
Total 46,473 28,246 7,790 10,437
3. Particulars of employees and staff costs
Half year to Half year to Year to
30 June 2003 30 June 2002 31 Dec 2002
The average number of people employed by the Group (including 1,131 684 818
directors)
Their aggregate remuneration (#000) 16,861 11,148 23,865
4. Taxation
The tax charge for the six months has been based on the estimated effective tax
rate for the year to 31 December 2003 of 39%. A deferred tax asset of #283,000
was recognised at 31 December 2002 and there has been no material change in the
position at 30 June 2003 (30 June 2002: #324,000). There are no material
deferred tax liabilities in the current or preceding period and, as a result, no
provisions have been made.
5. Dividend
The dividend of 1p per share will be payable to shareholders on the record on 31
October 2003. The ex-dividend date will be 29 October 2003. The dividend will
be paid on 28 November 2003.
6. Earnings per share
Half year to Half year to Year to
30 June 2003 30 June 2002 31 Dec 2002
Earnings per share - basic
Profit/(loss) attributable to shareholders (#000) 335 (205) 771
Average number of ordinary shares of 2p each in issue during the 24,513,162 25,450,443 25,222,173
period
Earnings per share - basic before goodwill amortisation
Profit attributable to shareholders before goodwill amortisation (#000) 602 43 1,268
Average number of ordinary shares of 2p each in issue during the 24,513,162 25,450,443 25,222,173
period
Earnings per share - diluted
Profit/(loss) attributable to shareholders (#000) 335 (205) 771
Average number of ordinary shares of 2p each in issue during the
period after allowing for the exercise of outstanding share options 24,378,821 25,221,758 25,014,319
7. Interim report
Copies of the interim report are available from Christie Group plc, 50 Victoria
Street, London SW1H 0NW.
Professional Business Services
Christie & Co www.christie.com Christie First www.christiefirst.com Pinders www.pinders.co.uk and
www.pinderpack.com
The leading firm of independent The market leader in finance and insurance
surveyors, valuers and agents for the leisure, care and retail sectors. The UK's leading independent
specialising in the leisure, care and Services include finance for business specialist business appraisal
retail sectors. International purchase or re-financing arranged in company, undertaking valuations,
operations based in London, Paris, conjunction with major financial consultancy and professional
Frankfurt, and Barcelona. Offices institutions, and tailored insurance schemes. services for a broad range of
throughout the UK with valuation and clients in the leisure, care and
agency, development and investment teams retail sectors.
focused on its key sectors.
Stock & Inventory Services
Orridge www.orridge.co.uk Venners www.venners.com
Europe's oldest stocktaking company focused on the Leading supplier of stocktaking and inventory services to
high street retail sector and having a specialist the leisure sector. Proprietary software and up-to-date
pharmacy stocktaking division. Providing a full technology enables on-site problem investigation and
range of stocktaking and inventory management direct provision of data to clients' management
solutions in all operational environments for a information systems.
wide range of clients throughout the UK and Europe.
Software Solutions
VcsTimeless Hospitality www.vcstimeless.com VcsTimeless Retail
Specialists in software for leisure and hospitality www.vcstimeless.com
(including cinemas, hotels, pubs and restaurants) Leading specialists in integrated software solutions and
with particular emphasis on providing touchscreen related services for the retail industry (including
and kiosk solutions to customers internationally. fashion, sports and home improvements) dedicated to
Solutions include EPoS, stock control, head office, single and multi-channel retailers in Europe. Solutions
and ticketing software. include manufacturing, head office, in-store and retail
business intelligence software.
This information is provided by RNS
The company news service from the London Stock Exchange
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