RNS Number:7388K
Christie Group PLC
07 April 2005
CHRISTIE GROUP PLC
7th April 2005
Audited Preliminary Results for the year to 31 December 2004
Christie Group a leading business services and software group, today announces
its preliminary results for the year ended December 2004
Highlights
* Operating profit up 9% to #2.9 million (2003: #2.7 million)
* Turnover up 12% to #70.0 million (2003: #62.5 million)
* Gearing eliminated
* 17p increase in net assets per share
* Opened three additional Christie offices
* Orridge now fully integrated and records first profit as turnover increases
by 44%
* VcsTimeless reports record number of contract wins
Philip Gwyn, Chairman of Christie Group, said:
2004 was a year of continuing development for Christie Group. By investing
further in our operations, systems and people, we sustained the progress of
recent years and consolidated our position in our various markets. I am pleased
that all three divisions had a successful year, and we ended 2004 with a much-
strengthened balance sheet and with the prospect of good growth opportunities in
all divisions in the UK and internationally. We intend to continue our strategy
of growing our top line whilst re-investing for the long-term development of the
Group including, most recently, the January 2005 acquisition of West London
Estates.
Enquiries:
Christie Group 020 7227 0707 Philip Gwyn, Chairman
David Rugg, Chief Executive
Robert Zenker, Finance Director
Brunswick 020 7404 5959 Regina Kilfoyle or Ash Spiegelberg
Notes to Editors
Christie Group plc (CTG.L) is listed on the London Stock Exchange. A leading
business services and software group with three business divisions: Professional
Business Services, Software Solutions; and Stock and Inventory Services. The
three complementary businesses focus on the leisure, retail and care markets.
Christie Group has 31 offices across Europe - located in the UK as well as in
Belgium, France, Germany, Italy and Spain, and 1 office in Canada.
For more information, please go to: www.christiegroup.com
CHAIRMAN'S STATEMENT
I am pleased to be able to report that the Group continued to make progress
during the year under review. Turnover increased to #70.0 million (2003:
#62.5 million) and operating profit to #2.9 million (2003: #2.7 million). The
board proposes a final dividend of 2p per share, bringing the dividend for the
year to 3p per share, the same as in the previous year.
The UK Professional Services businesses (Christie & Co, Christie First and
Pinders) each enjoyed a solid year which has allowed us to open two further
Christie & Co offices in the UK. These are located to the north and south of
London and, when taken together with our central London office, will give us
much stronger representation in the Greater London and suburban areas generally.
The Christie & Co international business, with offices in France, Germany and
Spain, has continued to grow and we have opened a second office in Germany
(adding Berlin to Frankfurt) which gives some measure of our confidence in these
markets.
The two software solutions businesses, based in France and the UK, have been
successfully merged. This allows for more coherent management and we have been
able to attract more new customers to these businesses while the planned product
development continues through 2005.
In our Stock and Inventory division, Orridge increased sales by 44% and traded
profitably. This was our second full year of ownership. Venners, which has
formed part of the Group for many years, continued to trade successfully.
Two features have acted to improve our balance sheet. During the year, we
renegotiated loans made to one of our subsidiaries and, in addition, the tax
authorities accepted dual residence status for our European agency offices with
the result that start-up losses can be set against UK profits. The net effect
of these moves was to strengthen our balance sheet by #3.8 million.
At the profit level, agency expansion and the development of the software
business continues to depress results but we remain confident that they will
contribute to the results in years ahead.
I thank all our colleagues throughout our businesses which contributed to these
results.
PRELIMINARY STATEMENT OF AUDITED RESULTS
AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2004
Notes 2004 2003
#000 #000
Turnover 2 69,968 62,457
Staff costs (40,390) (34,933)
29,578 27,524
Other operating charges before goodwill amortisation (26,095) (24,279)
Goodwill amortisation (548) (551)
Total other operating charges (26,643) (24,830)
Operating profit 2 2,935 2,694
Finance costs net (176) (206)
Exceptional finance credit 3 2,455 -
Total finance credit/(costs) 2,279 (206)
Profit on ordinary activities before taxation 5,214 2,488
Tax on profit on ordinary activities 4 (240) (1,469)
Profit on ordinary activities after taxation 4,974 1,019
Minority interest (10) -
Profit for the financial year 4,964 1,019
Dividends 5 (710) (722)
Retained profit for the year 4,254 297
Earnings per share
- basic 6 20.09p 4.15p
- fully diluted 6 19.79p 4.14p
- basic before exceptional finance credit and credit for prior year tax
losses 6 6.04p 4.15p
All amounts derive from continuing activities.
AUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2004
2004 2003
#000 #000
Profit for the financial year 4,964 1,019
Gain/(loss) on foreign currency translation 11 (240)
Total recognised gains and losses relating to the year 4,975 779
AUDITED CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2004
2004 2003
Restated
(note 1)
#000 #000
Fixed assets
Intangible assets 3,951 3,953
Tangible assets 3,231 2,631
Investment 100 100
7,282 6,684
Current assets
Stocks 355 312
Debtors 13,991 13,080
Property held for resale 504 504
Cash at bank and in hand 3,499 4,346
18,349 18,242
Creditors - amounts falling due within one year (11,955) (17,518)
Net current assets 6,394 724
Total assets less current liabilities 13,676 7,408
Creditors - amounts falling due after more than one year (2,108) (152)
Net assets 11,568 7,256
Capital and reserves
Called up share capital 495 493
Share premium 3,826 3,780
Merger reserve 945 945
Own shares (Employee Share Ownership Plan) (335) (324)
Capital redemption reserve 10 10
Profit and loss account 6,611 2,346
Shareholders' funds - equity interests 11,552 7,250
Minority interest 16 6
11,568 7,256
AUDITED CONSOLIDATED CASHFLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004
2004 2003
#000 #000
Net cash inflow from operating activities 3,688 4,151
Returns on investments and servicing of finance (176) (206)
Taxation paid (1,439) (1,067)
Capital expenditure and financial investment (2,308) (1,262)
Equity dividends paid (721) (597)
Cash (outflow)/inflow before financing (956) 1,019
Financing 311 (170)
(Decrease)/increase in cash in the year (645) 849
2004 2003
#000 #000
Reconciliation of net cash flow to movement in net funds/(debt)
(Decrease)/increase in cash in the year (645) 849
Cash (outflow)/inflow from debt and lease financing (486) 185
Change in net funds/(debt) resulting from cash flows (1,131) 1,034
Finance leases (88) (278)
Exceptional finance credit 2,665 -
Foreign currency translation 21 (133)
Movement of net funds/(debt) in the year 1,467 623
Net debt at 1 January 2004 (350) (973)
Net funds/(debt) at 31 December 2004 1,117 (350)
NOTES TO THE PRELIMINARY STATEMENT OF AUDITED RESULTS
1. Accounting Policies
The preliminary announcement has been prepared using accounting policies
that are consistent with the policies detailed in the financial statements for
the year ended 31 December 2003 except as detailed below:
Changes in accounting policy and presentation
Software development costs
Development costs were previously charged to the profit and loss account when
incurred. Anticipating the adoption of International Financial Reporting
Standards the group changed its policy and now capitalises expenditure on
software development which will provide long term commercial benefits. Software
development costs capitalised in the period to 31 December 2004 amounted to
#581,000. This change in accounting policy has had no effect on the results for
the previous year.
UITF Abstracts adoption
The Group policy for accounting and presentation of share schemes was changed
during the year ended 31 December 2004 to comply with UITF Abstract 17 (Revised
2003) "Employee Share Schemes" and UITF Abstract 38 "Accounting for ESOP Trusts
". The impact was to reduce fixed assets investments and shareholders' funds by
#324,000 at 31 December 2003.
The consolidated profit and loss account for the year ended 31 December 2003 has
not been restated as the effect is not material.
2. Segmental information
2004 2004 2004 2003 2003 2003
Operating Operating Restated
Turnover Profit/(loss) Net assets Turnover Profit/(loss) assets net
#000 #000 #000 #000 #000 #000
Professional Business 37,269 3,801 4,810 34,122 4,595 3,259
Services
Software Solutions 12,976 *(1,717) 363 12,523 (1,527) (165)
Stock and Inventory 19,723 **851 1,332 15,812 (374) 1,328
Services
69,968 2,935 6,505 62,457 2,694 4,422
Cash 3,499 4,346
Proposed dividend (481) (492)
Other 2,045 (1,020)
Net assets 11,568 7,256
*The operating loss for Software Solutions includes goodwill amortisation of
#506,000 (2003: #506,000).
**The operating profit for Stock and Inventory Services includes goodwill
amortisation of #42,000 (2003: #45,000).
3. Exceptional Finance Credit
The finance credit of #2,455,000 (net of associated costs) has arisen on the
early renegotiation of the Group's third party borrowings in relation to the
acquisition of Timeless SA in 2000. The directors have no present intention of
selling the subsidiary, but if it were to be sold prior to 18 November 2007 a
payment of a share of the sale consideration to a maximum of Euro3,000,000 would
arise.
4. Tax on profit on ordinary activities
2004 2003
#000 #000
Current tax
UK corporation tax at 30% (2003: 30%) 897 1,490
Foreign tax 75 44
972 1,534
Adjustments in respect of prior years (970) 97
Total current tax 2 1,631
Deferred tax
Origination and reversal of timing differences 238 (162)
Total deferred tax 238 (162)
Total tax on profit on ordinary activities 240 1,469
The adjustments in respect of prior years of #970,000 includes #1,017,000 which
is the benefit of prior year dual residence tax losses.
5. Dividend
A final dividend of 2p (2003: 2p) per Ordinary Share has been proposed, which is
in addition to the interim dividend of 1p (2003: 1p). The ex-dividend date is
1 June 2005, the record date 3 June 2005 and the date payable 30 June 2005.
The Employee Share Ownership Plan (ESOP) has waived any entitlement to the
receipt of dividends in respect of its entire holding of the company's ordinary
shares. As at 31 December 2004 the ESOP held 700,271 shares (2003: 692,212)
with a nominal value of 2p each.
6. Earnings per share
2004 2003
Earnings per share - basic
Profit attributable to shareholders - #000 4,964 1,019
Average number of ordinary shares of 2p each in issue during the year 24,708,768 24,559,471
Earnings per share - fully diluted
Profit attributable to shareholders - #000 4,964 1,019
Average number of ordinary shares of 2p each in issue during the year after
allowing for the exercise of outstanding share options 25,077,304 24,595,162
Earnings per share - basic before exceptional finance credit and credit for
prior year tax losses
Profit attributable to shareholders - #000 1,492 1,019
Average number of ordinary shares of 2p each in issue during the year 24,708,768 24,559,471
7. The financial information does not constitute the statutory accounts
of the Company as defined by section 240 of the Companies Act 1985. It is an
extract from the accounts for the year ended 31 December 2004, which have not
yet been filed with the Registrar of Companies. The auditors' report was
unqualified. The auditors' report does not contain a statement under either
Section 237(2) or (3) of the Companies Act 1985. The group's auditors have
reported on the accounts as required by Section 235 of the Companies Act 1985.
The financial information in respect of the year ended 31 December 2003 has been
abridged from the published group accounts for which an unqualified audit report
was issued and did not contain any statements under Section 237(2) or (3) of the
Companies Act 1985 and which have been filed with the Registrar of Companies.
8. The Report and Accounts are scheduled to be posted to shareholders in
early May. The Annual General Meeting of the Company is scheduled to take
place at 10.00 am on Tuesday 28 June 2005 at:
39 Victoria Street
London SW1H 0EU
CHRISTIE GROUP PLC
Group Companies
Christie Group www.christiegroup.com
Christie Group plc, the holding company for the Group's trading businesses, is
listed on the International Stock Exchange, London.
PROFESSIONAL BUSINESS SERVICES
BUSINESS SALES AND VALUATIONS, CONSULTANCY, FINANCIAL SERVICES
The expertise offered by Christie & Co and Christie First covers all aspects of
valuing, buying, selling, financing and insuring a wide variety of businesses.
Its scope is complemented by the comprehensive appraisal and project management
services available from Pinders.
Christie & Co www.christie.com
The leading firm of surveyors, valuers, consultants and agents specialising in
the leisure, care and retail sectors. International operations based in
London, Paris, Frankfurt and Barcelona. Offices throughout the UK with
valuation, agency, development and investment teams focused on its key sectors.
Christie First www.christiefirst.com
The market leader in finance and insurance for the leisure, care and retail
sectors. Services include finance for business purchase or re-financing
arranged in conjunction with major financial institutions, and the provision of
tailored insurance schemes.
Pinders www.pinders.co.uk and www.pinderpack.com
The UK's leading independent specialist business appraisal company, undertaking
valuations, consultancy, building surveying, project management and professional
services for a broad range of clients in the leisure, care and retail sectors.
SOFTWARE SOLUTIONS
EPOS AND HEAD OFFICE SYSTEMS
The two arms of VcsTimeless specialise in sophisticated IT systems and solutions
designed to capture and control the complex sales data connected with the
management of cinemas, hotels, restaurants, leisure complexes, warehouses and
retail outlets internationally.
VcsTimeless (Hospitality) www.vcstimeless.com
Specialists in software for leisure and hospitality businesses internationally,
including cinemas, visitor attractions, pubs, hotels and restaurants. Solutions
include EPoS, chip and pin, stock control, back office, head office and
ticketing software.
VcsTimeless (Retail) www.vcstimeless.com
Leading specialist in integrated software solutions and related services for the
retail industry - including fashion, sports and home improvements - dedicated to
single and multi-channel retailers. Solutions include head office, in-store,
chip and pin, manufacturing and retail business intelligence software.
STOCK AND INVENTORY SERVICES
STOCK AND INVENTORY CONTROL
Orridge and Venners are the leading specialists in stock control and inventory
management systems. Employing state-of-the-art technologies and bespoke
software, the division is focused on Europe, where both companies have a major
share of the retail and leisure sectors.
Orridge www.orridge.co.uk
Europe's longest established stocktaking business specialising in all fields of
retail stocktaking including high street, warehousing and factory. In
addition, it has a specialised pharmacy division providing data capture
stocktaking services. A full range of stocktaking and inventory management
solutions is provided for a wide range of clients in the UK and Europe.
Venners www.venners.com
Leading supplier of stocktaking, inventory, control audit and related stock
management services to the hospitality and retail sectors. Bespoke software
and systems enable real time management reporting to its customer base using the
most up-to-date technology.
***
This information is provided by RNS
The company news service from the London Stock Exchange
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