TIDMCTG
RNS Number : 4754J
Christie Group PLC
12 September 2016
12 September 2016
Christie Group plc
Interim Results for the six months ended 30 June 2016
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 Interim Results for the six
months ended 30 June 2016.
Key points:
-- Revenue for the first half marginally lower than prior year at GBP31.6m (2015: GBP31.7m)
-- Operating loss of GBP0.9m (2015: operating profit of GBP1.7m)
-- Negative earnings per share of 4.95p per share (2015: 4.18p per share)
-- Board expects a stronger and profitable second half
-- Interim dividend maintained at 1.0p per share (2015: 1.0p per share)
-- UK transactional pipelines at end of first half up 19% on H1 2015
-- Strong European Hotel transaction activity
-- Christie Finance's pipeline of loan transactions has grown by
almost 50% on a year ago, while the average loan value arranged for
clients has increased by 9%
-- Impact of living wage on UK retail stocktaking operations
offset by successful fee negotiations
-- Christie & Co recognised as a "Superbrand" within the real estate sector
Commenting on the results, David Rugg, Chief Executive of
Christie Group, said:
"After a difficult first half in the run up to the EU
referendum, progress has resumed. We have stepped up the margin in
our stocktaking division and are seeing increased activity in our
transactional business. We look forward to a stronger finish to the
year."
Enquiries:
Christie Group plc
David Rugg
Chief Executive 020 7227 0707
Daniel Prickett
Chief Financial Officer 020 7227 0700
Panmure Gordon (UK) Limited
Dominic Morley / Charles Leigh-Pemberton
Nominated Adviser & Broker 020 7886 2980
Notes to Editors:
Christie Group plc, quoted on AIM, is a leading professional
business services group with 46 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, Pinders, Christie Finance and
Christie Insurance: 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 to the
Group's core agency business.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
For more information, please go to www.christiegroup.com.
CHAIRMAN'S STATEMENT
As I envisaged in my AGM statement in June, reduced corporate
activity in the M & A market in the run-up to the EU Referendum
resulted in an operating loss of GBP0.9m (2015: GBP1.7m operating
profit) on revenue of GBP31.6m (2015: GBP31.7m).
The quantum of the first-half operating loss was compounded by
commissions foregone in a reaction to the EU referendum decision.
This subdued revenue, coupled with a higher operating cost base
which itself flowed from our decision to invest to drive further
growth following that achieved in 2014 and 2015, combined to move
our first-half performance back year-on-year. This investment has
augmented the capacity within our Professional Business Services
division.
Notwithstanding these factors, I am pleased to advise that
post-Brexit and the ensuing short period of political instability
which followed, business is returning towards more normal levels.
Our continental operations remain both integral and supportive of
what we do. European hotel transaction activity has been strong
from a number of the countries in which we are present, with
further territories expected to contribute as we move forwards.
The major UK banks which support our sectors have been
incentivised to lend by the Bank of England. We can also expect
strong inward UK investment based upon a rebased low sterling
exchange rate.
Across our sectors we expect that inbound tourism should boom,
whilst our hospitality businesses and petrol forecourts also
benefit from the staycation. An ageing population supports the Care
industry and even longer-working grandparents are boosting
occupancy for Children's Day Nurseries. Consumer staples will
ensure that convenience retailing continues to flourish.
Professional Business Services
Christie & Co has been identified by The Centre for Brand
Analysis as a "Superbrand" in a survey commissioned by The Estates
Gazette, a pleasing endorsement of its rebranding earlier this
year.
The introduction of the Living Wage in April increased the
operating costs of the businesses we sell where, in general, wage
costs are the largest variable operating cost. This will in many
cases have an effect on their short-term profitability. We have,
however, as yet seen no uptick in the level of distress-driven
sales mandates.
Volumes of UK business sales have remained subdued.
Notwithstanding this, we completed the sale of 6 regional Hilton
hotels on behalf of Oaktree Capital, Westmont and Paulsons to 6
individual buyers.
Across the Channel we have been busy selling the Radisson Sun
Gardens Dubrovnik to a group of Chinese investors, illustrating
once again our ability to close transactions outside of those
countries where we have physical locations.
Internationally, we have been provided with a number of key
instructions across Europe such as two Novotel hotels in Hungary,
Modlin Fortress in Warsaw and The Gresham in Dublin.
Christie & Co provided advisory services relating to one of
the largest hotel portfolio transactions completed in Q2 of this
year, continuing its trend of advising on a significant proportion
of the major UK hotel portfolio transactions that have taken place
in recent years.
Our valuers were also busy supporting the sale of Liberation
Group's owners LGV to Caledonia Group for GBP118m. A portfolio of
both UK and Channel Island pubs, as well as around 300 convenience
stores, were sold from Co-Op to McColls.
In the Medical sector, we continued to diversify and took
instructions on a major aesthetics dispensing business. We have
also been instructed to sell a portfolio of pharmacies on behalf of
Lloyds Pharmacy. Dental projects also included the sale of a
substantial pair of dental practices, Smile and Madeira Dental Care
in Dorset, for in excess of the asking price of GBP2.5m.
In the Care division, and more specifically our Childcare &
Education team, we successfully brokered the sale of Bush Babies
Children's Nurseries to Busy Bees Childcare as well as selling
First Class Child Care to Just Childcare in the first half. This
success has continued into the second half, where we recently
completed the sale of Positive Steps Children's Day Nurseries -
also to Busy Bees Childcare - in a deal believed to be the largest
in the sector this year.
Whilst corporate valuation instructions were lower, we saw an
overall net increase of 12.5% in the number of single asset
instructions received for SME owners, buyers and their banks.
Christie & Co's hotly anticipated research report entitled
Adult Social Care 2016: Funding, Staffing & The Bottom Line was
released in July 2016 at an event held at the Royal Nursing College
in London which was attended by over 70 key clients and industry
figures. It illustrates once again our skills and knowledge base
that stretches well beyond property.
Christie Finance's pipeline of loan transactions has grown by
almost 50% over the corresponding point last year, whilst the value
of Christie Insurance's renewals book increased by 9%.
Pinders, our business appraiser, undertook a significant volume
of business in the education sector, providing specialist advice
relating to assets with a combined value of some GBP100m, on behalf
of a number of lenders, who have increasingly targeted this
sector.
Stock & Inventory Systems & Services
In our hospitality stocktaking business, Venners, new client
wins have continued in 2016. Those we have added include Bravo Inns
and Arena Racing Company. Our Consultancy offering has been taken
on board by, amongst others, HQ Theatres, Lewis Partnership, Accor
and Macdonald Hotels and in Ireland by Rezidor Hotels.
Golf club additions in Ireland include Holywood, Banbridge, Fort
William and Lisburn, meaning that we now assist over 60 golf clubs
to maximise profit from their bars, dining rooms and shops across
the UK and Ireland.
In Retail stocktaking, new opportunities continue to arise for
Orridge, based upon quality of service. New work has been secured
with Englehorn, Habitat, Adidas and Hallhuber.
Our fee negotiations, triggered by the introduction of the
Living Wage, are now complete and we have been able to recover the
increased cost. Additionally, we have seen an encouraging response
from new counter and supervisor bonus schemes which have been
introduced alongside changes in working practices to increase
productivity. In Germany, we have invested in larger capacity
people carriers and more powerful technology to increase
efficiency.
Within Vennersys, VenPoS Cloud, our Visitor Attraction software
system, continues to attract new clients as we increase its wide
functionality. New functionality includes the new VenPoS handy
terminal which facilitates flexible stocktaking with linked
reporting in our site manager suite. Our third party ticket
generator allows our users to allocate tickets to the likes of
Amazon to sell tickets on the attraction operators' behalf.
We have introduced "My account" functionality to our consumer
site allowing visitor attractions to increase efficiency by
enabling their customers to self-manage their bookings as well as
allowing visitor attractions to tailor promotions and advance
purchase offers to members.
We have signed our first distillery at Glenmorangie, our first
cemetery at Highgate, our first Maze - The Wizard Maze - and
further stately homes, including Floors Castle.
Outlook
The EU Referendum inevitably disrupted our first half trading.
Our markets in the UK remain steady, if unspectacular. The banks we
work with have been freed to lend. Our UK markets are attracting
inward investment based, in part, on a lower value of sterling.
Our team hails from 23 countries, many naturalised or with
permit rights of residence abroad. We value the collaboration of
all of our colleagues which is intrinsic to the success of our
business. I thank each of them on your behalf for their continuing
contribution.
We continue to expect a stronger and profitable second half's
trading.
Cash flow in the first half of the year reflects the first half
trading performance combined with anticipated working capital
outflow. The latter is expected to unwind in the second half of the
year, with stronger second half trading improving cash
generation.
We work in a real economy. Our underlying financial covenant is
the millions of customers our clients' businesses serve, so our
markets are both strong and soundly-based. We are optimistic of the
prospects for our markets and our businesses.
Severe storms on the night of 22 June flooded our head office
power supply forcing us to relocate to temporary accommodation for
five weeks. On your behalf I thank our continuity planners and
those who implemented our plans which enabled us to continue to
trade with extremely limited disruption.
The Board has declared a maintained interim dividend of 1.0p
(2015: 1.0p per share) which will be paid on 14 October 2016 to
shareholders on the register on 23 September 2016.
Philip Gwyn
Chairman
Consolidated interim income
statement
Half year Half year
to 30 to 30
June June
2016 2015
Year ended
31 December
GBP'000 GBP'000 2015
Note (Unaudited) (Unaudited) GBP'000
------------------------------------ ------ ------------- ------------- -------------
Revenue 4 31,575 31,738 63,743
Employee benefit expenses (23,260) (21,329) (42,888)
---------------------------------------- ------ ------------- ------------- -------------
8,315 10,409 20,855
Depreciation and amortisation (352) (266) (576)
Impairment credit - - 143
Other operating expenses (8,867) (8,427) (16,659)
---------------------------------------- ------ ------------- ------------- -------------
Operating (loss) / profit 4 (904) 1,716 3,763
Finance costs (47) (49) (91)
Pension scheme finance costs (216) (256) (511)
Total finance charge (263) (305) (602)
---------------------------------------- ------ ------------- ------------- -------------
(Loss) / profit before tax (1,167) 1,411 3,161
Taxation 5 (202) (409) (614)
---------------------------------------- ------ ------------- ------------- -------------
(Loss) / profit for the period
after tax (1,369) 1,002 2,547
All amounts derive from continuing
operations.
(Loss) / profit for the period after tax attributable to:
Equity shareholders of the
parent (1,301) 1,091 2,712
Non-Controlling interest (68) (89) (165)
----------------------------- -------- ------ ------
(1,369) 1,002 2,547
---------------------------- -------- ------ ------
Earnings per share attributable to equity holders - pence
- Basic 6 (4.95) 4.18 9.73
- Fully diluted 6 (4.95) 4.06 9.47
----------------- ------- ----- -----
Consolidated interim statement of comprehensive income
Half year Half year
to 30 to 30
June June
2016 2015
Year ended
31 December
GBP'000 GBP'000 2015
(Unaudited) (Unaudited) GBP'000
------------------------------------- ---- ------------- ------------- ----------------------------
(Loss) / profit for the period
after tax (1,369) 1,002 2,547
------------------------------------------- ------------- ------------- ----------------------------
Other comprehensive (losses)
/ income:
Items that may be reclassified
subsequently to profit or
loss:
Exchange differences on translating
foreign operations 143 (67) (72)
------------------------------------------- ------------- ------------- ----------------------------
Net other comprehensive income
/ (losses) to be reclassified
to profit or loss in subsequent
periods 143 (67) (72)
------------------------------------------- ------------- ------------- ----------------------------
Items that will not be reclassified
to profit or loss:
Re-measurement (losses) /
gains on defined benefit plans (3,046) 57 1,676
Income tax effect 459 (11) (335)
------------------------------------------- ------------- ------------- ----------------------------
Net other comprehensive (losses)
/ income not being reclassified
to profit or loss in subsequent
periods (2,587) 46 1,341
------------------------------------------- ------------- ------------- ----------------------------
Other comprehensive (losses)
/ income for the period, net
of tax (2,444) (21) 1,269
------------------------------------------- ------------- ------------- ----------------------------
Total comprehensive (losses)
/ income for the period (3,813) 981 3,816
------------------------------------------- ------------- ------------- ----------------------------
Total comprehensive (losses) / income attributable to:
Equity shareholders of the
parent (3,745) 1,070 3,981
Non-Controlling interest (68) (89) (165)
----------------------------- -------- ------ --------
(3,813) 981 (3,816)
---------------------------- -------- ------ --------
Consolidated interim statement of changes in shareholders'
equity
Fair
value Cumulative Non -
Share and other translation Retained Controlling Total
capital reserves adjustments earnings interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Half year to 30 June 2015 (Unaudited)
Balance at 1 January
2015 531 4,954 544 (12,473) (289) (6,733)
Profit / (loss)
for the period after
tax - - - 1,091 (89) 1,002
Items that will
not be reclassified
subsequently to
profit or loss - - - 46 - 46
Items that may be
reclassified subsequently
to profit or loss - - (67) - - (67)
Total comprehensive
(losses) / income
for the period - - (67) 1,137 (89) 981
Movement in respect
of employee share
scheme - 144 - - - 144
Employee share option
scheme:
- value of services
provided - 91 - - - 91
Dividends paid - - - (392) - (392)
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Balance at 30 June
2015 531 5,189 477 (11,728) (378) (5,909)
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Year ended 31 December 2015 (Audited)
--------------------------------------------------------------------------------------------------------------
Balance at 1 January
2015 531 4,954 544 (12,473) (289) (6,733)
Profit / (loss)
for the year after
tax - - - 2,712 (165) 2,547
Items that will
not be reclassified
subsequently to
profit or loss - - - 1,341 - 1,341
Items that may be
reclassified subsequently
to profit or loss - - (72) - - (72)
Total comprehensive
(losses) / income
for the year - - (72) 4,053 (165) 3,816
Movement in respect
of employee share
scheme - 69 - - - 69
Employee share option
scheme:
-value of services
provided - 184 - - - 184
Dividends paid - - - (653) - (653)
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Balance at 31 December
2015 531 5,207 472 (9,073) (454) (3,317)
------------------------------- --------- ----------- ------------- ---------- ------------- -----------
Half year to 30 June
2016 (Unaudited)
Balance at 1 January
2016 531 5,207 472 (9,073) (454) (3,317)
Profit / (loss) for
the period after tax - - - (1,301) (68) (1,369)
Items that will not
be reclassified subsequently
to profit or loss - - - (2,587) - (2,587)
Items that may be
reclassified subsequently
to profit or loss - - 143 - - 143
Total comprehensive
(losses) / income
for the period - - 143 (3,888) (68) (3,813)
Movement in respect
of employee share
scheme - 117 - - - 117
Employee share option
scheme:
- value of services
provided - 2 - - - 2
Dividends payable - - - (394) - (394)
Balance at 30 June
2016 531 5,326 615 (13,355) (522) (7,405)
------------------------------- --------- ----------- ------------- ---------- ------------- ---------
Consolidated interim statement of financial position
At 30 At 30 June At 31
June 2016 2015 December
2015
GBP'000 GBP'000 GBP'000
(Unaudited) (Unaudited)
Note
------------------------------ ------ ------------- ------------- ----------
Assets
Non-current assets
Intangible assets -
Goodwill 1,790 1,674 1,703
Intangible assets -
Other 1,226 854 1,066
Property, plant and
equipment 1,251 994 1,095
Deferred tax assets 3,613 3,814 3,266
Available-for-sale
financial assets 635 635 635
Other receivables 451 465 451
------------------------------ ------ ------------- ------------- ----------
8,966 8,436 8,216
------------------------------ ------ ------------- ------------- ----------
Current assets
Inventories 8 4 6
Trade and other receivables 12,913 14,172 12,007
Current tax assets 243 12 45
Cash and cash equivalents 11 2,348 472 3,621
------------------------------ ------ ------------- ------------- ----------
15,512 14,660 15,679
------------------------------ ------ ------------- ------------- ----------
Total assets 24,478 23,096 23,895
------------------------------ ------ ------------- ------------- ----------
Equity
Capital and reserves attributable to
the Company's equity holders
Share capital 8 531 531 531
Fair value and other
reserves 5,326 5,189 5,207
Cumulative translation
reserve 615 477 472
Retained earnings (13,355) (11,728) (9,073)
------------------------------ ------ ------------- ------------- ----------
(6,883) (5,531) (2,863)
Non-Controlling interest (522) (378) (454)
------------------------------ ------ ------------- ------------- ----------
Total equity (7,405) (5,909) (3,317)
------------------------------ ------ ------------- ------------- ----------
Liabilities
Non-current liabilities
Retirement benefit
obligations 9 14,721 13,728 11,958
Borrowings 3 - 7
Provisions 281 313 155
------------------------------ ------ ------------- ------------- ----------
15,005 14,041 12,120
------------------------------ ------ ------------- ------------- ----------
Current liabilities
Trade and other payables 9,438 8,747 9,052
Current tax liabilities 73 808 -
Borrowings 6,479 3,397 4,288
Provisions 888 2,012 1,752
------------------------------ ------ ------------- ------------- ----------
16,878 14,964 15,092
------------------------------ ------ ------------- ------------- ----------
Total liabilities 31,883 29,005 27,212
------------------------------ ------ ------------- ------------- ----------
Total equity and liabilities 24,478 23,096 23,895
------------------------------ ------ ------------- ------------- ----------
Consolidated interim statement of cash flows
Half year
to 30
June 2016
GBP'000 Half Year ended
year to
30 June
2015
(Unaudited) GBP'000 31 December
2015
(Unaudited) GBP'000
Note
----------------------------------- ------ ------------- ------------- --------------
Cash flow from operating
activities
Cash (used in) / generated
from operations 10 (2,735) (1,274) 2,681
Interest paid (47) (49) (91)
Tax paid (129) (11) (831)
----------------------------------- ------ ------------- ------------- --------------
Net cash (used in) / generated
from operating activities (2,911) (1,334) 1,759
----------------------------------- ------ ------------- ------------- --------------
Cash flow from investing
activities
Purchase of property, plant
and equipment (PPE) (373) (291) (571)
Proceeds from sale of PPE 14 9 21
Intangible assets expenditure (297) (244) (574)
Net cash used in investing
activities (656) (526) (1,124)
----------------------------------- ------ ------------- ------------- --------------
Cash flow from financing
activities
Proceeds from invoice discounting 1,158 291 56
Payment of finance lease
liabilities (4) - (10)
Dividends paid - (392) (653)
Net cash generated from /
(used in) financing activities 1,154 (101) (607)
----------------------------------- ------ ------------- ------------- --------------
Net (decrease) / increase
in cash and cash equivalents (2,413) (1,961) 28
Cash and cash equivalents
at beginning of period 17 6 6
Exchange gain / (losses)
on Euro bank accounts 107 (58) (17)
----------------------------------- ------ ------------- ------------- --------------
Cash and cash equivalents
at end of period 11 (2,289) (2,013) 17
----------------------------------- ------ ------------- ------------- --------------
Notes to the consolidated interim financial statements
1. General information
Christie Group plc is the parent undertaking of a group of
companies covering a range of related activities. These fall into
two divisions - Professional Business Services and Stock &
Inventory Systems & Services. Professional Business Services
principally covers business valuation, consultancy and agency,
mortgage and insurance services, and business appraisal. Stock
& Inventory Systems & Services covers stock audit and
counting, compliance and food safety audits and inventory
preparation and valuation, hospitality and cinema software.
2. Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with IFRS as adopted
by the European Union. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board
(IASB) and the IFRS Interpretations Committee (IFRIC) and there is
an ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the
basis of IFRS that the Directors expect to be adopted by the
European Union and applicable as at 31 December 2016.
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 December 2015,
except for those noted below and except for the adoption of new
standards and interpretations effective as of 1 January 2016. Taxes
on income in the interim periods are accrued using the tax rate
that would be applicable to expected total annual earnings.
A number of amendments apply for the first time in 2016.
However, they do not materially impact the annual consolidated
financial statements of the Group or the interim condensed
consolidated financial statements of the Group.
Non-statutory accounts
These consolidated interim financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting'.
The financial information for the year ended 31 December 2015 set
out in this interim report does not constitute the Group's
statutory accounts for that period. The statutory accounts for the
year ended 31 December 2015 have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report
was unqualified, did not contain a statement under either section
498(2) or section 498(3) of the Companies Act 2006 and did not
include references to any matters to which the auditor drew
attention by way of emphasis. The financial information for the
periods ended 30 June 2016 and 30 June 2015 is unaudited.
3. 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.
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 consistent with those applied to the
consolidated financial statements for the year ended 31 December
2015.
4. Segment information
The Group is organised into two main business segments:
Professional Business Services and Stock & Inventory Systems
& Services.
The reportable segment results for continuing operations for the
period ended 30 June 2016 are as follows:
Professional Stock &
Business Inventory Other Group
Services Systems GBP'000 GBP'000
GBP'000 & Services
GBP'000
--------------------- --------------- ------------- ---------- ----------
Total gross segment
revenue 16,440 15,188 1,538 33,166
Inter-segment
revenue (53) - (1,538) (1,591)
--------------------- --------------- ------------- ---------- ----------
Revenue 16,387 15,188 - 31,575
--------------------- --------------- ------------- ---------- ----------
Operating loss (414) (116) (374) (904)
Net finance charge (263)
--------------------- --------------- ------------- ---------- ----------
Loss before tax (1,167)
Taxation (202)
--------------------- --------------- ------------- ---------- ----------
Loss for the period after
tax (1,369)
-------------------------------------- ------------- ---------- ----------
The reportable segment results for continuing operations for the
period ended 30 June 2015 are as follows:
Professional Stock &
Business Inventory Other Group
Services Systems GBP'000 GBP'000
GBP'000 & Services
GBP'000
--------------------- --------------- ------------- ---------- ----------
Total gross segment
revenue 17,574 14,216 1,520 33,310
Inter-segment
revenue (52) - (1,520) (1,572)
--------------------- --------------- ------------- ---------- ----------
Revenue 17,522 14,216 - 31,738
--------------------- --------------- ------------- ---------- ----------
Operating profit
/ (loss) 2,444 (394) (334) 1,716
Net finance charge (305)
--------------------- --------------- ------------- ---------- ----------
Profit before
tax 1,411
--------------------- --------------- ------------- ---------- ----------
Taxation (409)
--------------------- --------------- ------------- ---------- ----------
Profit for the period after
tax 1,002
-------------------------------------- ------------- ---------- ----------
The reportable segment results for continuing operations for the
year ended 31 December 2015 are as follows:
Professional Stock &
Business Inventory Other Group
Services Systems GBP'000 GBP'000
GBP'000 & Services
GBP'000
--------------------- --------------- ------------- ---------- ----------
Total gross segment
revenue 36,369 27,478 4,312 68,159
Inter-segment
revenue (104) - (4,312) (4,416)
--------------------- --------------- ------------- ---------- ----------
Revenue 36,265 27,478 - 63,743
--------------------- --------------- ------------- ---------- ----------
Operating profit
/ (loss) 4,646 (953) 70 3,763
Net finance charge (353) (179) (70) (602)
--------------------- --------------- ------------- ---------- ----------
Profit before
tax 3,161
Taxation (614)
--------------------- --------------- ------------- ---------- ----------
Profit for the
year after tax 2,547
--------------------- --------------- ------------- ---------- ----------
The Group is not reliant on any key customers.
5. Taxation
Deferred tax assets have been recognised in respect of tax
losses and other temporary differences giving rise to deferred tax
assets where it is probable that these assets will be
recovered.
The tax on the Group's profit before tax differs from the
theoretical amount that would arise using the standard rate of
corporation tax in the UK of 20%, based on the Group's profit
before tax and before pension scheme finance costs, due to
GBP44,000 arising from the reduction in the value of the brought
forward deferred tax asset and a further GBP259,000 arising from
other movements in the deferred tax asset.
6. 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 period, which
excludes the shares held in the Employee Share Ownership Plan
(ESOP) trust.
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 potential dilutive ordinary shares: share
options. Where a loss for the year has been recognised the share
options are considered anti-dilutive and so not included in the
calculation of diluted earnings per share.
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.
Half year Half year
to to Year ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ------------ --------------
(Loss) / profit from total
operations attributable to
equity holders of the Company (1,301) 1,091 2,712
-------------------------------- ----------- ------------ --------------
30 June 30 June 31 December
2016 2015 2015
Thousands Thousands Thousands
-------------------------------- ----------- ------------ --------------
Weighted average number of
ordinary shares in issue 26,279 26,113 26,171
Adjustment for share options - 716 714
-------------------------------- ----------- ------------ --------------
Weighted average number of
ordinary shares for diluted
earnings per share 26,279 26,829 26,885
-------------------------------- ----------- ------------ --------------
30 June 30 June 31 December
2016 2015 2015
Pence Pence Pence
-------------------------------- ----------- ------------ --------------
Basic earnings per share (4.95) 4.18 9.73
Fully diluted earnings per
share (4.95) 4.06 9.47
-------------------------------- ----------- ------------ --------------
7. Dividends
A final dividend in respect of the year ended 31 December 2015
of 1.5p per share, amounting to a total dividend of GBP394,000, was
approved and paid to the Christie Group plc registrar on 4 July
2016. The funds were transferred to shareholders on 8 July
2016.
An interim dividend in respect of 2016 of 1.0p per share,
amounting to a dividend of GBP265,000, was declared by the
directors at their meeting on 7 September 2016. These financial
statements do not reflect this dividend payable.
The dividend of 1.0p per share will be payable to shareholders
on the record on 23 September 2016. The ex-dividend date will be 22
September 2016. The dividend will be paid on 14 October 2016.
8. Share capital
30 June 2016 30 June 2015 31 December
2015
Ordinary shares of 2p Number GBP'000 Number GBP'000 Number GBP'000
each
-------------------------- ----------- -------- ----------- -------- ----------- --------
Allotted and fully paid:
At beginning and end
of period 26,526,729 531 26,526,729 531 26,526,729 531
-------------------------- ----------- -------- ----------- -------- ----------- --------
The Company has one class of ordinary shares which carry no
right to fixed income.
Investment in own shares
The Group has established an Employee Share Ownership Plan
(ESOP) trust in order to meet its future contingent obligations
under the Group's share option schemes. The ESOP purchases shares
in the market for distribution at a later date in accordance with
the terms of the Group's share option schemes. The rights to
dividend on the shares held have been waived.
At 30 June 2016 the total payments by the Group to the ESOP to
finance the purchase of ordinary shares were GBP2,639,000 (30 June
2015: GBP2,658,000; 31 December 2015: GBP2,643,000). This figure is
inclusive of shares purchased and subsequently issued to satisfy
employee share awards. The market value at 30 June 2016 of the
ordinary shares held in the ESOP was GBP203,000 (30 June 2015:
GBP487,000; 31 December 2015: GBP299,000). The investment in own
shares represents 247,000 shares (30 June 2015: 368,000; 31
December 2015: 235,000) with a nominal value of 2p each.
9. Retirement benefit obligations
The obligation outstanding of GBP14,721,000 (30 June 2015:
GBP13,728,000; 31 December 2015: GBP11,958,000) includes GBP962,000
(30 June 2015: GBP980,000; 31 December 2015: GBP986,000) relating
to David Rugg who transferred 80% of his accrued benefits out of
the Christie Group Pension and Assurance Scheme during 2014 leaving
the residual benefit payable to Mr Rugg under agreement of the
Christie Group plc Remuneration Committee.
The Group operates two defined benefit schemes (closed to new
members) providing pensions on final pensionable pay. The
contributions are determined by qualified actuaries on the basis of
triennial valuations using the projected unit method.
When a member retires, the pension and any spouse's pension is
either secured by an annuity contract or paid from the managed
fund. Assets of the schemes are reduced by the purchase price of
any annuity purchase and the benefits no longer regarded as
liabilities of the scheme.
The amounts recognised in the statement of comprehensive income
and the movement in the liability recognised in the statement of
financial position have been based on the forecast position for the
year ended 31 December 2016 after adjusting for the actual
contributions to be paid in the period.
The movement in the liability recognised in the statement of
financial position is as follows:
Half year
to Year ended
Half year to 30 June 31 December
30 June 2016 2015 2015
GBP'000 GBP'000 GBP'000
-------------------------------------------- ---------- -------------
Beginning of the period 11,958 13,970 13,970
Expenses included in the employee
benefit expense 303 314 657
Contributions paid (778) (743) (1,468)
Finance costs 216 256 511
Pension paid (24) (12) (36)
Actuarial losses / (gains)
recognised 3,046 (57) 1,676
End of the period 14,721 13,728 11,958
----------------------------------- ------- ---------- -------------
The amounts recognised in the income statement and statement of
comprehensive income are as follows:
Half year
to Year ended
Half year to 30 June 31 December
30 June 2016 2015 2015
GBP'000 GBP'000 GBP'000
-------------------------------------- ---------- -------------
Current service cost 303 314 657
---------------------------- -------- ---------- -------------
Total included in employee
benefit expenses 303 314 657
---------------------------- -------- ---------- -------------
Net interest cost 216 256 511
---------------------------- -------- ---------- -------------
Total included in finance
costs 216 256 511
---------------------------- -------- ---------- -------------
Actuarial (losses) / gains (3,046) 57 (1,676)
Total included in other
comprehensive (losses)
/ income (3,046) 57 (1,676)
---------------------------- -------- ---------- -------------
The principal actuarial assumptions used were as follows:
Half year to 30 June 2016 Half year to 30 June 2015 Year ended 31 December 2015
% % %
-------------------------- -------------------------- ---------------------------- ------------------------------
Inflation rate 2.70 3.00 3.00
Discount rate 3.10 4.00 4.00
Future salary increases 2.70 3.00 3.00 - 3.10
Future pension increases 1.90 - 2.70 2.20 - 3.40 2.20 - 3.40
-------------------------- -------------------------- ---------------------------- ------------------------------
Assumptions regarding future mortality experience were
consistent with those disclosed in the financial statements for the
year ended 31 December 2015.
10. Note to the cash flow statement
Cash (used in) / generated from operations
Half year Half year
to to Year ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Continuing operations
(Loss) / profit for the period (1,369) 1,002 2,547
Adjustments for:
- Taxation 202 409 614
- Finance costs 47 49 91
- Depreciation 216 179 371
- Amortisation of intangible
assets 136 87 205
- Profit on sale of property,
plant and equipment (9) (3) (6)
- Foreign currency translation (102) (44) (55)
- (Decrease) / increase in
provisions (738) 34 (384)
- Movement in share option
charge 117 91 184
- Retirement benefits (283) (185) (336)
- Decrease in non-current
other receivables - - 14
Changes in working capital
(excluding the effects of
exchange differences on consolidation):
- Increase in inventories (2) (2) (4)
- Increase in trade and other
receivables (919) (3,059) (970)
- (Decrease) / increase in
trade and other payables (31) 168 410
------------------------------------------ ---------- ---------- -------------
Cash (used in) / generated
from operations (2,735) (1,274) 2,681
------------------------------------------ ---------- ---------- -------------
11. Cash and cash equivalents include the following for the
purposes of the cash flow statement:
Half year Half year
to to Year ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- -------------
Cash and cash equivalents 2,348 472 3,621
Bank overdrafts (4,637) (2,485) (3,604)
--------------------------- ---------- ---------- -------------
(2,289) (2,013) 17
--------------------------- ---------- ---------- -------------
12. Related-party transactions
There is no controlling interest in the Group's shares.
During the period rentals of GBP164,000 (30 June 2015:
GBP162,000; 31 December 2015: GBP325,000) were paid to Carmelite
Property Limited, a company incorporated in England and Wales, and
jointly owned by The Christie Group Pension and Assurance Scheme,
The Venners Retirement Benefit Fund and The Fitzroy Square Pension
Fund, by Christie Group plc in accordance with the terms of a
long-term lease agreement.
13. Publication of Interim Report
The 2016 Interim Financial Statements are available on the
Company's website www.christiegroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLEAIIAIIR
(END) Dow Jones Newswires
September 12, 2016 02:00 ET (06:00 GMT)
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