RNS Number:8287Q
Christie Group PLC
13 September 2000
Christie Group plc
Interim results for the six months to 30 June 2000
Chairman's statement
In the six months to 30 June, Group turnover increased by 13.6% to
#18,502,000, including a three and a half month contribution from Timeless,
our French retail software company (June 1999: #16,284,000), with
like-for-like turnover flat at #16,153,000. Operating profit before goodwill
amortisation in the period was #345,000 (June 1999: #1,194,000). This result
was foreshadowed in my statement at the AGM and was substantially due to the
slowdown in our UK software business. In addition we spent #500,000 more than
in the corresponding period in 1999 investing in both Professional Business
Services, principally in further international development in Christie & Co,
and Information Systems and Services, increasing staff numbers to service the
rapid growth in our Venners stocktaking business.
We propose to pay a maintained interim dividend of 1p per share.
Professional Business Services
The division achieved turnover of #11,032,000 (June 1999: #10,762,000), and
operating profits of #509,000 (June 1999: #647,000). The total number of
businesses sold by Christie & Co increased over the prior period, but there
was an absence of larger transactions. Due to the well publicised
difficulties of healthcare operators in the sale and leaseback market and
uncertainty concerning future new mandatory standards for care, the sector
was slower in the first half. However, in late July the Government published
the Care Standards Bill setting out these guidelines, and since then we have
seen an improved level of confidence return to the healthcare market.
Christie.com has expanded to feature over 3,000 businesses in the UK and
internationally. Almost a third of our business buyers are actively using our
website as a preferred method of communication. Steady incremental use of the
website since its launch in July 1999 has confirmed it as one of the dynamics
of our future.
Our European office network was further strengthened by the opening of a
Barcelona office in July in addition to our presence in Paris (opened March
1998) and Frankfurt (opened February 1999). The Professional Business
Services division has been strengthened through specialist departments for
Leisure & Development, Investment and Rating services, and continued
development of Christie.com.
Information Systems and Services
Turnover increased by 35% to #7,470,000, including Timeless (June 1999:
#5,522,000), with like-for-like turnover down by 7% to #5,121,000. The loss
for the period before goodwill of #164,000 (June 1999: profit of #547,000)
includes a positive contribution from Timeless of #275,000, which is in line
with management expectations. The Y2K changeover adversely affected first
half performance at Venners Computer Systems (VCS) with some carry-over into
the second half.
However, I am now pleased to report that VCS has won a number of new
contracts, including the provision of EPoS for Cine UK and Ster Century
European. VCS has also signed an exclusive contract to supply the Vista
ticketing solution which allows ticket purchases over the internet, utilising
ATMs for on-site ticket collection and purchase. This has been taken up by
Spean Bridge Cinemas internationally. Orders are confirmed for our second
half with further business scheduled for 2001. Other successful installations
have included the 'West One' London fashion chain, while internet kiosk sales
included gadgetshop.com's flagship store on London's Oxford Street.
In March we completed the acquisition of Groupe Timeless SA, which expanded
our international software systems offering. Since then, it has moved to new
larger premises on the quai de Jemmapes in Paris. Timeless continues to win
business with its Colombus retail internet enabled software system. Euro
Sante Beaute (pharmaceuticals, cosmetics and health foods), La Compagnie des
Petits (childrenswear), Rodier (fashion) were among others signing up in the
period.
A joint European strategy for VCS and Timeless is now being implemented.
Our stock-auditing business, Venners, made significant business gains which
required an increase of 25% in operational staff in the first quarter of the
year, but suffered considerable disruption as a result. Since early summer,
Venners has been trading at record levels of licensed trade activity. In
addition to our strong licensed stocktaking business, we continue to gain
retail clients, which during the period included Comet.
Interest Charge
The interest charge at #52,000 compares with interest receivable of #29,000
in 1999 due to increased borrowings to fund the Timeless acquisition. Cash in
hand was #1,578,000 (June 1999: #1,571,000).
Tax Charge
The tax charge has increased from 36% to 39% (excluding goodwill
amortisation) principally due to a higher proportion of the group's earnings
being outside the UK as a result of the Timeless acquisition in France.
Current Trading
The second half of this year is difficult to predict with any certainty. 1999
benefited from a particularly strong final quarter which is unlikely to be
repeated this year. The Group has continued with its policy of selected
expansion - which is progressing well - to position it for success in the
developing European market.
Philip Gwyn Chairman
13 September 2000
Contacts :
Philip Gwyn, Chairman, Christie Group 020 7227 0707
David Rugg, Chief Executive, Christie Group 020 7227 0707
Robert Zenker, Finance Director, Christie Group 020 7227 0707
Charlotte Elston, Brunswick Group Limited 020 7404 5959
********
Consolidated profit and loss account
Continuing Acquisition
#000 #000
Notes
Turnover 2 16,153 2,349
Net operating costs (16,083) (2,074)
Goodwill amortisation (185) -
Operating profit/(loss) (115) 275
Net Interest (50) (2)
Profit/(loss) on ordinary activities before (165) 273
tax
Tax on profit on ordinary activities 4
Profit/(loss) on ordinary activities after tax
Dividends 5
Retained profit/(loss) for the period
Earnings per share excluding goodwill 6
Earnings per share excluding goodwill - fully
diluted
Earnings/(loss) per share after goodwill 6
Earnings/(loss) per share after goodwill -
fully diluted
Unaudited Unaudited Audited
Half year Half year Year
ended ended ended
30 June 30 June 31 December 1999
2000 1999
Notes Total #000
#000 #000
Turnover 2 18,502 16,284 35,161
Net operating costs (18,157) (15,090) (31,717)
Goodwill amortisation (185) - -
Operating profit/(loss) 160 1,194 3,444
Net Interest (52) 29 53
Profit/(loss) on ordinary 108 1,223 3,497
activities before tax
Tax on profit on ordinary (114) (443) (1,218)
activities 4
Profit/(loss) on ordinary (6) 780 2,279
activities after tax
Dividends 5 (264) (243) (608)
Retained profit/(loss) for (270) 537 1,671
the period
Earnings per share excluding 0.72p 3.24p 9.42p
goodwill 6
Earnings per share excluding 0.70p 3.22p 9.28p
goodwill - fully diluted
Earnings/(loss) per share (0.02)p 3.24p 9.42p
after goodwill 6
Earnings/(loss) per share (0.02)p 3.22p 9.28p
after goodwill - fully
diluted
Statement of Total Recognised Unaudited Unaudited Audited
Gains and Losses Half year Half year Year
ended ended ended
30 June 30 June 31 December
2000 1999 1999
#000 #000 #000
Profit/(loss) on ordinary (6) 780 2,279
activities after taxation
Gain/(loss) on foreign currency (21) 43 14
translation
Total Recognised Gains and (27) 823 2,293
(Losses)
Consolidated balance sheet
Unaudited Unaudited Audited
30 June 30 June 31 December
2000 1999 1999
#000 #000 #000
Fixed Assets
Tangible assets 3,109 2,656 2,778
Goodwill 5,837 - -
Intangible assets 524 - 247
Investment 54 - -
9,524 2,656 3,025
Current assets
Stock 522 378 207
Debtors 9,476 8,094 7,785
Cash at bank and in hand 1,578 1,571 3,318
11,576 10,043 11,310
Creditors - amounts falling due (9,487) (7,357) (7,969)
within one year
Net current assets 2,089 2,686 3,341
Total assets less current 11,613 5,342 6,366
liabilities
Creditors - amounts falling due (3,743) (262) (150)
after more than one year
Net assets 7,870 5,080 6,216
Capital and reserves
Called up equity share capital 509 486 487
Share premium account 3,681 3,623 3,653
Merger reserve 1,895 - -
Profit and loss account 1,785 971 2,076
Shareholders' funds - equity 7,870 5,080 6,216
interests
Consolidated cashflow statement
Unaudited Unaudited Audited
30 June 30 June 31 December
2000 1999 1999
#000 #000 #000
Net Cash inflow from operating 811 192 4,273
activities
Returns on investments and (52) 29 53
servicing of finance
Taxation paid (174) (104) (1,240)
Capital expenditure (549) (534) (1,094)
Acquisitions (7,288) - (331)
Equity dividends paid (368) (481) (601)
Cash inflow/(outflow) before (7,620) (898) 1,060
financing
Financing 5,828 53 (158)
Increase/(decrease) in cash in the (1,792) (845) 902
period
Notes to the interim report
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 1999.
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 1999, upon which the
auditors gave an unqualified opinion, have been delivered to the Registrar of
Companies.
Segmental information
Turnover and Operating Profit
Half year ended 30 June 2000 Half year ended 30 June
#000 1999
#000
DIVISION Turnover Operating Turnover Operating
(Unaudited) Profit (Unaudited) Profit
(Unaudited) (Unaudited)
Professional 11,032 509 10,762 647
Business
Services
Information 7,470 (349) 5,522 547
Systems and
Services
TOTAL 18,502 160 16,284 1,194
Year ended 31 December 1999
#000
DIVISION Turnover Operating Profit
(audited) (audited)
Professional Business 23,275 2,587
Services
Information Systems and 11,886 857
Services
TOTAL 35,161 3,444
The #349,000 operating loss under Information Systems and Services for the 6
months ended 30 June 2000 is after charging goodwill amortisation of
#185,000.
Turnover by Destination
Half year ended 30 June 2000
#000
Total Professional Information
Business Services Systems and
Services
Europe 17,966 11,032 6,934
Rest of World 536 - 536
TOTAL 18,502 11,032 7,470
Half year ended 30 June 1999
#000
Total Professional Information
Business Services Systems and
Services
Europe 15,534 10,762 4,772
Rest of World 750 - 750
TOTAL 16,284 10,762 5,522
Year ended 31 December 1999
#000
Total Professional Information
Business Services Systems and
Services
Europe 33,485 23,061 10,424
Rest of World 1,676 214 1,462
TOTAL 35,161 23,275 11,886
3.
Particulars of Employees and Staff Costs
Half year ended Half year ended Year ended
30 June 30 June 31 December
2000 1999 1999
The average number of
people employed by the 712 544 555
Group (including
Directors)
Their aggregate 8,886 6,646 14,625
remuneration - #000
4. Taxation
The tax charge for the six months has been based on the estimated effective
tax rate for the year to 31 December 2000 of 39%.
Dividend
The dividend of 1p per share will be payable to shareholders on record on 29
September 2000. The ex-dividend date will be 25 September 2000. The dividend
will be paid on 29 November 2000.
6. Earnings Per Share
Half year ended Half year ended Year ended
30 June 30 June 31 December
2000 1999 1999
Earnings per Share
Profit attributable to 179 780 2,279
shareholders before
goodwill - #000
Profit/(loss) (6) 780 2,279
attributable to
shareholders after
goodwill - #000
Average number of
ordinary shares of 2p
each in issue during
the period 24,985,964 24,076,306 24,195,511
Earnings per Share -
fully diluted
Profit attributable to 179 780 2,279
shareholders before
goodwill - #000
Profit/(loss)
attributable to
shareholders after
goodwill - #000 (6) 780 2,279
Average number of
ordinary shares of 2p
each in issue during
the period after
allowing for the
exercise of
outstanding share
options 25,621,249 24,206,191 24,558,493
Interim report
Copies of the interim report are available from Christie Group plc, 50
Victoria Street, London SW1H ONW.
Christie (LSE:CTG)
Historical Stock Chart
From Jul 2024 to Aug 2024
Christie (LSE:CTG)
Historical Stock Chart
From Aug 2023 to Aug 2024
