TIDMCTG
RNS Number : 0964L
Christie Group PLC
17 April 2018
17 April 2018
Christie Group plc
Preliminary results for the 12 months ended 31 December 2017
Christie Group plc ('Christie Group' 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 preliminary results for the 12
months ended 31 December 2017.
Key points:
-- Revenue growth of 11.1% to GBP71.6m (2016: GBP64.5m)
-- Operating profit of GBP3.8m (2016: GBP1.1m before exceptional items)
-- Earnings per share of 9.47p per share (2016: 5.41p per share)
-- Total dividend for the year increased to 2.75p per share (2016: 2.50p per share)
-- Strong recovery in revenue and operating profit from the PBS
division, with revenue up 15.9% on the prior year
-- PBS operating profit up to GBP5.3m (2016: GBP1.7m before exceptional items)
-- Strong revenue from corporate M&A activity set to continue in 2018
-- Challenging year for retail stocktaking within the SISS division
-- Improved terms on a number of major contracts should have a
marked and positive impact on SISS performance in 2018
Commenting on the results, David Rugg, Chairman and Chief
Executive of Christie Group said:
"2017 saw an encouraging rebound in performance following a
disrupted 2016. Looking ahead, 2018 has started well. We have a
good volume of Client M&A transactions in progress. As a
result, we anticipate our first half performance will be
significantly ahead of last year's first half performance."
Enquiries:
Christie Group plc
David Rugg
Chairman and Chief Executive 020 7227 0707
Daniel Prickett
Chief Operating Officer 020 7227 0700
Simon Hawkins
Group Finance Director 020 7227 0700
Panmure Gordon (UK)
Limited
Dominic Morley / Charles
Leigh-Pemberton
Nominated Adviser &
Broker 020 7886 2906
Notes to Editors:
Christie Group plc (CTG.L), quoted on AIM, is a leading
professional business services group with 44 offices across the UK,
Europe and Canada, catering to its specialist markets in the
hospitality, leisure, healthcare, medical, childcare &
education and retail 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
Regulation (EU) No. 596/2014.
For more information, please go to www.christiegroup.com.
CHAIRMAN AND CHIEF EXECUTIVE'S REVIEW OF THE YEAR
Results for the year
We achieved full-year revenue of GBP71.6m in 2017, an increase
of 11% on the prior year (2016: GBP64.5m). Operating profit before
exceptional items, at GBP3.8m (2016: GBP1.1m), was broadly in line
with expectations and represented a solid recovery to 2015 levels.
Earnings per share rose to 9.47p per share (2016: 5.41p per share),
an encouraging rebound in performance following the previously
referred to disruption to our markets caused by the referendum on
the UK's continued membership of the European Union.
The increase in overall revenue was mainly attributable to
higher volumes in transaction-related business, but with
simultaneous growth in stocktaking revenue our two main divisions
continue to remain well balanced with 57% of our revenues generated
by Professional Business Services ("PBS") and 43% percent is
attributable to Stock and Inventory Systems and Services
("SISS").
The strong recovery in PBS revenues translated to a
much-improved operating profit from the division. Conversely, we
continued to deal with some challenges in our SISS division but,
having made significant progress in this division in recent months,
we are optimistic of its prospects for 2018.
Continuity and change
This is my first report to you since becoming your Chairman in
September 2017. Since then we have implemented a board refresh and,
whilst retaining continuity amongst the current executive
directors, we have sought to bring on board new non-executive
directors with appropriate business backgrounds and skills.
It was over 40 years ago that my predecessor as Chairman, Philip
Gwyn, assembled a small nucleus of colleagues at Christie & Co,
then a small business sales agency. Motivated by a desire to
provide clients with the high-quality services they required to
acquire and operate their businesses, we developed the diverse
international Group that our shareholders own today. The unique
nature of Christie Group stands as a tribute to Philip. We
appreciate the brilliance and fortitude with which Philip directed
our Group and grew the business through recurring business cycles.
It is fitting that he has agreed to become our Life President.
I would also like to place on record our gratitude to Pommy
Sarwal who has recently stepped down as an independent
non-executive director. His incisive advice has made an immense
contribution over the past 12 years.
Along with these changes, we have taken the opportunity to
refresh the make-up of the board. I now combine both the Chair and
Chief Executive functions. Dan Prickett has stepped into the new
role of Chief Operating Officer, while Simon Hawkins - formerly
Finance Director at Christie & Co, Christie Finance and
Christie Insurance - has been promoted to Group Finance
Director.
We were also delighted to welcome two new non-executive
directors to the board this year who will add fresh perspectives to
our deliberations. Hwfa Gwyn joined the board in September as an
advocate for shareholder interests. Laurie Benson joined the board
in November following an independent selection process. Laurie
brings the benefit of three decades in the communications, digital
media and technology sector.
The Group Board oversees its constituent businesses as a
cooperating portfolio of branded services. The trading businesses
operate within a framework set at Group level. The Group Board
formulates overall strategy; it seeks to maximise synergies and
pursue growth opportunities, as well as safeguard the Group's
commercial resilience by maintaining a balanced portfolio and
controlling centralised treasury operations.
The subsidiaries maintain strong operational structures, each
with their own managing directors, finance directors and senior
management.
We are also taking the opportunity to review our professional
advisors and in December announced the appointment of Grant
Thornton UK LLP as auditors.
We have initiated a strategy review to look afresh at our
businesses and our services. This encompasses looking at the niches
we dominate or have a strong presence in to ensure that operating
margins remain worthwhile, while also identifying available markets
that may warrant further investment. As part of this process we
have identified management succession in each of our trading
businesses.
People are key to our businesses and the services we provide. We
commissioned an external review of our recruitment processes. We
recognise that our future success lies in attracting and retaining
the best talent. Following on from this we will be taking the
opportunity to ensure we continue to develop the skills and
experiences of future leaders by circulating those throughout the
group both through a transfer of employment and on a project
basis.
On a related note, we have instigated a review of the training
which we carry out in our businesses and the accreditations and
qualifications we pursue to ensure that these are best aligned to
our business requirements. Equally important is to offer our staff
a visible opportunity for career development and progression. We
are taking the opportunity to evaluate what financial assistance
may be available to us through recouping the apprenticeship
levy.
Our outsourced services
Our stocktaking businesses provide an outsourced service for our
clients. Given recent press comment on revenue recognition of
contracting in the outsourced sector, I am pleased to be able to
take this opportunity to clarify that our revenue - whilst
invariably contracted - is provided on a per job or per diem basis.
We are entitled to invoice the full value of the services provided
as and when work has been carried out and this we do. We hold no
outsource contracts where it is necessary to calculate, estimate
and apportion revenue and profits across the lifespan of a several
years' contract.
Professional Business Services
Our PBS division drove revenue to a total of GBP40.6m (2016:
GBP35.0m) an increase of 15.9% over the previous year. The primary
drivers were an increase in regional transactional derived income
emanating from additional hires engaged in the proceeding 3 years,
as well as strong revenue from corporate M&A activity in
certain key and emerging markets. Our financial services income
also continues to grow.
Increases in the Living Wage have hit those labour-intensive
sectors we operate in. For example, Care Homes employ large numbers
of staff at the minimum wage. In Restaurants & Retail shops
this has been compounded by an increase in property rates. As a
result, our Agency business Christie & Co has seen some
increase in distress based transactions. Through the advent of
C.V.A.s some distress will transfer to landlords through increased
voids and the prospect of re-letting at reduced rents. Inevitably,
distress leads to increased business advisory & disposal
work.
Stock and Inventory Systems and Services
Notwithstanding a challenging year in retail stocktaking, we
nonetheless succeeded in growing total revenue by 5.3% to GBP31.0m
for (2016: GBP29.5m). A strong performance by our hospitality
stocktaking business was augmented by continued growth in our
European retail stocktaking activity.
Orridge negotiated a difficult trading period during 2017. The
company sharpened its focus by separating its activities into three
main areas - Retail, Supply Chain and Pharmacy - but it faced tough
trading conditions. The retail sector has proved particularly
challenging but growth in the supply chain services continued. The
pharmacy-related business continues to win accounts.
In the past, some of our competitors have tried to grow or
retain market share by agreeing contracts on uneconomic terms, but
the unsustainability of this policy is increasingly clear. Pricing
is at last beginning to return to more sensible levels. Orridge has
been able to negotiate improved terms for a series of major
contracts. This new pricing should have a marked and positive
impact on its profitability in 2018.
Outside of the UK, Orridge's German operation grew into profit
during the second half of 2017 and its Belgian business continues
to add profitable work in France.
In 2017, Venners faced unprecedented demand for its services and
we expect this strong level of demand to continue. This demand,
combined with an ability to efficiently train the skilled
stocktakers who are key to delivering its services, provide the
foundation for further growth in 2018.
Vennersys has broadly completed the development of its online
ticketing business as a cloud-based application offered via a SaaS
delivery model. The successful migration of existing major clients,
together with several client wins this year, creates a solid
platform for future profitable growth.
Business intelligence
Our 30-strong hotel consultancy team shares its expertise with a
growing roster of international investors. Its 2017 report,
European Travel Trends and Hotel Investment Hot Spots presented the
key factors most likely to affect hotel occupancy and revenue rates
in European destinations, such as airport capacity and
connectivity, average spend per day and the relative importance of
particular feeder markets for specific locations. This kind of
detailed business intelligence is highly prized by potential
investors.
We have again been reviewing the UK healthcare market in depth.
Our Adult Social Care 2017 report built on a 2016 report on nursing
staff. The 2017 report focused on the problem of bed-blocking and
the associated funding and staffing challenges. The report
highlighted a 96 percent drop in EU citizens taking up nursing
positions in the UK since the EU referendum. It identified the lack
of district and community nurses as a key contributory factor
perpetuating bed blocking and concluded that the UK urgently needs
to take steps globally to attract skilled nursing staff from
elsewhere.
European integration
We have looked at the implications of Brexit. These we believe,
so far, are operationally neutral. The property based businesses we
serve are immovable. Our staff serving these businesses are
primarily domestically-based in the countries concerned. Our
pan-European consulting team can be based in any convenient
hub.
As a service business, we are less likely to be directly
affected by the ultimate shape of the Brexit deal. Our
international network is founded not on regulatory harmonisation
but on the underlying forces driving globalisation.
The hotel sector, for example, which is an important European
market for us, is built on the internationalisation of brands.
Because demand is brand-driven, the underlying ownership of the
branded assets can be traded by us without effecting performance.
Brexit is, in our view, unlikely to affect demand for the
businesses we sell or the services we provide.
Looking ahead
Our core objective remains to initially regain previous profit
levels by continuing to provide a unique but deliberately
constructed combination of professional services for business
owners and operators in our sectors.
Looking ahead, 2018 has started well. We have a good volume of
Client M&A transactions in progress. As a result, we anticipate
our first half performance will be significantly ahead of last
year's first half performance. We have assumed no material adverse
impact from current events in Syria.
We are a Group with the scale, scope and ambition to broaden and
deepen its services and profit from its international footprint. We
approach the future with energy and enthusiasm.
Your directors recommend a final dividend of 1.75p per share
(2016: 1.5p per share), increasing the dividend to a total of 2.75p
for the year (2016: 2.5p). If approved the dividend will be paid on
6 July 2018 to those shareholders on the register on 8 June
2018.
David Rugg
Chairman and Chief Executive
Consolidated Income Statement
For the year ended 31 December 2017
Note Restated
(*)
2017 2016
Total Total
GBP'000 GBP'000
------------------------------------- ----- ---------- ---------
Revenue 3 71,635 64,488
Employee benefit expenses (48,978) (45,866)
------------------------------------- ----- ---------- ---------
22,657 18,622
Depreciation and amortisation (902) (798)
Impairment reversal/(charge) 61 (194)
Other operating expenses (18,048) (16,489)
------------------------------------- ----- ---------- ---------
Operating profit before exceptional
items 3,768 1,141
Exceptional items 2 - 1,328
Operating profit after exceptional
items 3,768 2,469
Finance costs (162) (193)
Pension scheme finance costs (463) (432)
Finance income 3 -
Total finance costs (622) (625)
------------------------------------- ----- ---------- ---------
Profit before tax 3,146 1,844
Taxation (699) (537)
------------------------------------- ----- ---------- ---------
Profit after tax 2,447 1,307
------------------------------------- ----- ---------- ---------
Profit for the period after
tax attributable to:
Equity shareholders of the
parent 2,496 1,423
Non-controlling interest (49) (116)
------------------------------------- ----- ---------- ---------
2,447 1,307
------------------------------------- ----- ---------- ---------
Earnings per share attributable to equity
holders - pence
Profit attributable to the equity holders
of the Company
-Basic 5 9.47 5.41
-Fully diluted 5 9.43 5.32
------------------------------------- ----- ---------- ---------
All amounts derive from continuing activities.
(*) Refer to note 7 for full details of the restatement of 2016
figures. This restatement has resulted in no change to the
previously reported revenue, an increase in operating profit before
and after exceptional items of GBP121,000, an GBP82,000 increase in
finance costs and a GBP39,000 increase in profit before tax. Profit
after tax has increased by GBP18,000. Basic earnings per share for
2016 are restated at 5.41 pence per share (previously 5.35 pence
per share).
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2017
Restated
2017 (*) 2016
Total Total
GBP'000 GBP'000
------------------------------------------- --------- ----------
Profit after tax 2,447 1,307
------------------------------------------- --------- ----------
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translating
foreign operations 3 184
------------------------------------------- --------- ----------
Net other comprehensive income
to be reclassified to profit
or loss in subsequent years 3 184
------------------------------------------- --------- ----------
Items that will not be reclassified
subsequently to profit or loss:
Actuarial gains/(losses) on defined
benefit plans 3,233 (8,054)
Income tax effect (548) 1,011
------------------------------------------- --------- ----------
Net other comprehensive income/(losses)
not being reclassified to profit
or loss in subsequent years 2,685 (7,043)
------------------------------------------- --------- ----------
Other comprehensive income/(losses)
for the year net of tax 2,688 (6,859)
------------------------------------------- --------- ----------
Total comprehensive income/(losses)
for the year 5,135 (5,552)
------------------------------------------- --------- ----------
Total comprehensive income/(losses) attributable to:
Equity shareholders of the parent 5,184 (5,436)
Non-controlling interest (49) (116)
------------------------------------ ------ --------
5,135 (5,552)
----------------------------------- ------ --------
(*) Refer to note 7 for full details of the restatement of 2016
figures.
Consolidated Statement of Changes in Shareholders' Equity
As at 31 December 2017
Attributable to the Equity Holders of the
Company
Fair
value
and
other
reserves Cumulative Non
Share (Note translation Retained - controlling Total
capital 23) reserve earnings interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- --------- ---------- ------------- ---------- --------------- ---------
Balance at 1 January
2016 (*) 531 5,207 472 (9,025) (454) (3,269)
-------------------------------- --------- ---------- ------------- ---------- --------------- ---------
Profit/(loss) for
the year after tax - - - 1,423 (116) 1,307
Items that will not
be reclassified subsequently
to profit or loss - - - (7,043) - (7,043)
Items that may be
reclassified subsequently
to profit or loss - - 184 - - 184
-------------------------------- --------- ---------- ------------- ---------- --------------- ---------
Total comprehensive
income/(losses) for
the year - - 184 (5,620) (116) (5,552)
Movement in respect
of employee share
scheme - 20 - - - 20
Employee share option
scheme:
-value of services
provided - 238 - - - 238
Acquisition of non-controlling
interest - - - (241) 241 -
Dividends paid - - - (657) - (657)
-------------------------------- --------- ---------- ------------- ---------- --------------- ---------
Balance at 31 December
2016 (*) 531 5,465 656 (15,543) (329) (9,220)
-------------------------------- --------- ---------- ------------- ---------- --------------- ---------
Balance at 1 January
2017 531 5,465 656 (15,543) (329) (9,220)
-------------------------------- --------- ---------- ------------- ---------- --------------- ---------
Profit/(loss) for
the year after tax - - - 2,496 (49) 2,447
Items that will not
be reclassified subsequently
to profit or loss - - - 2,685 - 2,685
Items that may be
reclassified subsequently
to profit or loss - - 3 - - 3
Total comprehensive
income/(losses) for
the year - - 3 5,181 (49) 5,135
Movement in respect
of employee share
scheme - (82) - - - (82)
Employee share option
scheme:
-value of services
provided - 229 - - - 229
Dividends paid - - - (657) - (657)
Balance at 31 December
2017 531 5,612 659 (11,019) (378) (4,595)
-------------------------------- --------- ---------- ------------- ---------- --------------- ---------
(*) Refer to note 7 for full details of the restatement of 2016
figures.
Consolidated Statement of Financial Position
At 31 December 2017
Restated
(*)
2016 Restated
(*)
2017 GBP'000 2015
GBP'000 GBP'000
--------------------------- --- ---- ---------- ------------------ ----------
Assets
Non-current assets
Intangible assets
- Goodwill 1,841 1,812 1,703
Intangible assets
- Other 1,368 1,241 1,066
Property, plant
and equipment 3,565 3,559 3,227
Deferred tax assets 3,142 3,901 3,266
Available-for-sale
financial assets 635 635 635
Other receivables 182 182 182
-------------------------------------- ---------- ------------------ ----------
10,733 11,330 10,079
------------------------------------ ---------- ------------------ ----------
Current assets
Inventories 25 29 6
Trade and other
receivables 14,873 13,226 12,027
Current tax assets 4 357 45
Cash and cash equivalents 4,692 1,638 3,621
-------------------------------------- ---------- ------------------ ----------
19,594 15,250 15,699
------------------------------------ ---------- ------------------ ----------
Total assets 30,327 26,580 25,778
-------------------------------------- ---------- ------------------ ----------
Equity
Share capital 531 531 531
Fair value and
other reserves 5,612 5,465 5,207
Cumulative translation
reserve 659 656 472
Retained earnings (11,019) (15,543) (9,025)
-------------------------------------- ---------- ------------------ ----------
(4,217) (8,891) (2,815)
------------------------------------ ---------- ------------------ ----------
Non-controlling
interest (378) (329) (454)
-------------------------------------- ---------- ------------------ ----------
Total equity (4,595) (9,220) (3,269)
-------------------------------------- ---------- ------------------ ----------
Liabilities
Non-current liabilities
Trade and other
payables 436 249 -
Retirement benefit
obligations 14,241 18,106 11,958
Borrowings 1,644 1,663 1,809
Provisions 188 167 155
-------------------------------------- ---------- ------------------ ----------
16,509 20,185 13,922
------------------------------------ ---------- ------------------ ----------
Current liabilities
Trade and other
payables 11,703 8,916 9,085
Current tax liabilities 230 152 -
Borrowings 5,616 5,686 4,288
Provisions 864 861 1,752
-------------------------------------- ---------- ------------------ ----------
18,413 15,615 15,125
------------------------------------ ---------- ------------------ ----------
Total liabilities 34,922 35,800 29,047
-------------------------------------- ---------- ------------------ ----------
Total equity and
liabilities 30,327 26,580 25,778
-------------------------------------- ---------- ------------------ ----------
(*) Refer to note 7 for full details of the restatement of 2016
figures.
Consolidated Statement of Cash Flows
For the year ended 31 December 2017
Restated
(*)
Note 2017 2016
GBP'000 GBP'000
------------------------------------- ------ ---------- ---------
Cash flow from operating activities
Cash generated from/(used
in) operations 6 5,171 (826)
Interest paid (162) (193)
Tax paid (160) (243)
------------------------------------- ------ ---------- ---------
Net cash generated from/(used
in) operating activities 4,849 (1,262)
------------------------------------- ------ ---------- ---------
Cash flow from investing activities
Purchase of property, plant
and equipment (PPE) (575) (855)
Proceeds from sale of PPE 3 16
Intangible asset expenditure
- software (460) (453)
Interest received 3 -
Net cash used in investing
activities (1,029) (1,292)
------------------------------------- ------ ---------- ---------
Cash flow from financing activities
Repayment of bank loan (17) (85)
(Repayments)/proceeds from
invoice finance (12) 371
Repayment of finance lease
liabilities (6) (6)
Dividends paid (657) (657)
Net cash used in financing
activities (692) (377)
------------------------------------- ------ ---------- ---------
Net increase/(decrease) in
cash 3,128 (2,931)
Cash and cash equivalents
at beginning of year (2,932) 17
Exchange losses on euro bank
accounts (20) (18)
Cash and cash equivalents
at end of year 176 (2,932)
------------------------------------- ------ ---------- ---------
The accompanying notes are an integral part of these financial
statements.
(*) Refer to note 7 for full details of the restatement of 2016
figures.
NOTES TO THE PRELIMINARY ANNOUNCEMENT
1. BASIS OF PREPARATION
The financial information set out in this announcement does not
comprise the Company's statutory accounts for the years ended 31
December 2017 or 31 December 2016.
The financial information has been extracted from the statutory
accounts of the Company for the years ended 31 December 2017 and 31
December 2016. The auditors reported on those accounts; their
reports were unqualified. The audit report for the year ended 31
December 2017 contains an emphasis of matter without qualifying the
report which draws attention to the prior year restatement, details
of which are set out in note 7.
The statutory accounts for the year ended 31 December 2016 have
been delivered to the Registrar of Companies, whereas those for the
year ended 31 December 2017 will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of International Financial Reporting
Standards (IFRSs), this announcement does not itself contain
sufficient information to comply with IFRSs. The Company expects to
publish full financial statements that comply with IFRSs in April
2018.
The accounting policies adopted are consistent with those
applied in the 2016 financial statements.
2. EXCEPTIONAL ITEMS
2017 2016
GBP'000 GBP'000
------------------------------------------ ---------- ---------
Reduction in past service costs relating
to defined benefit pension schemes - 1,328
- 1,328
----------------------------------------------------- ---------
In relation to both of its defined benefit pension schemes the
Group has completed consultations relating to the indexation
increases which may be applied to future increases in pensionable
salary for active members of both schemes. The result is a
reduction in aggregated scheme liabilities of GBPnil (2016
GBP1,328,000).
3. SEGMENT INFORMATION
The Group is organised into two main operating segments:
Professional Business Services and Stock & Inventory Systems
& Services.
The segment results for the year ended 31 December 2017 are as
follows:
Stock & Inventory Systems &
Professional Business Services
Services GBP'000
GBP'000 Other Group
GBP'000 GBP'000
------------------------------- ------------------------------ ----------------------------- ---------- ----------
Total gross segment sales 40,726 31,018 2,992 74,736
Inter-segment sales (109) - (2,992) (3,101)
------------------------------- ------------------------------ ----------------------------- ---------- ----------
Revenue 40,617 31,018 - 71,635
------------------------------- ------------------------------ ----------------------------- ---------- ----------
Operating profit/(loss) (**) 5,298 (1,085) (445) 3,768
Finance costs (342) (187) (93) (622)
------------------------------- ------------------------------ ----------------------------- ---------- ----------
Profit before tax 3,146
------------------------------- ------------------------------ ----------------------------- ---------- ----------
Taxation (699)
------------------------------- ------------------------------ ----------------------------- ---------- ----------
Profit for the year after tax 2,447
------------------------------- ------------------------------ ----------------------------- ---------- ----------
The segment results for the year ended 31 December 2016 are as
follows:
Stock & Inventory Systems
Professional Business & Services
Services GBP'000 Restated (*)
GBP'000 Other Group
GBP'000 GBP'000
----------------------------- ---------------------------- ---------------------------- ---------- ---------------
Total gross segment sales 35,139 29,455 3,533 68,127
Inter-segment sales (106) - (3,533) (3,639)
----------------------------- ---------------------------- ---------------------------- ---------- ---------------
Revenue 35,033 29,455 - 64,488
----------------------------- ---------------------------- ---------------------------- ---------- ---------------
Operating profit/(loss)
before exceptional items
(**) 1,664 (110) (413) 1,141
Exceptional items 973 286 69 1,328
----------------------------- ---------------------------- ---------------------------- ---------- ---------------
Operating profit/(loss)
after exceptional items
(**) 2,637 176 (344) 2,469
Finance costs (314) (142) (169) (625)
----------------------------- ---------------------------- ---------------------------- ---------- ---------------
Profit before tax 1,844
----------------------------- ---------------------------- ---------------------------- ---------- ---------------
Taxation (537)
----------------------------- ---------------------------- ---------------------------- ---------- ---------------
Profit for the year after
tax 1,307
----------------------------- ---------------------------- ---------------------------- ---------- ---------------
(*) Refer to note 7 for full details of the restatement of 2016
figures.
(**) Operating profit/(loss) excludes intercompany
royalties.
The segment assets and liabilities at 31 December 2017 and
capital expenditure for the year then ended are as follows:
Stock & Inventory Systems &
Professional Business Services Services
GBP'000 GBP'000
Other Group
GBP'000 GBP'000
------------------------- --------------------------------- --------------------------------- ---------- ---------
Assets 10,431 10,129 6,621 27,181
Deferred tax assets 3,142
Current tax assets 4
30,327
------------------------- --------------------------------- --------------------------------- ---------- ---------
Liabilities 15,620 8,517 3,295 27,432
Borrowings 7,260
Current tax liabilities 230
------------------------- --------------------------------- --------------------------------- ---------- ---------
34,922
------------------------- --------------------------------- --------------------------------- ---------- ---------
Capital expenditure 204 750 81 1,035
------------------------- --------------------------------- --------------------------------- ---------- ---------
The segment assets and liabilities at 31 December 2016 and
capital expenditure for the year are as follows:
Stock & Inventory Systems &
Professional Business Services Services
GBP'000 GBP'000
Other Group
GBP'000 GBP'000
------------------------- --------------------------------- -------------------------------- ---------- ----------
Assets 9,088 7,571 5,663 22,322
Deferred tax assets 3,901
Current tax assets 357
------------------------- --------------------------------- -------------------------------- ---------- ----------
26,580
------------------------- --------------------------------- -------------------------------- ---------- ----------
Liabilities 17,429 7,331 3,539 28,299
Borrowings 7,349
Current tax liabilities 152
------------------------- --------------------------------- -------------------------------- ---------- ----------
35,800
------------------------- --------------------------------- -------------------------------- ---------- ----------
Capital expenditure 799 492 17 1,308
------------------------- --------------------------------- -------------------------------- ---------- ----------
Segment assets consist primarily of property, plant and
equipment, intangible assets, inventories, receivables and
operating cash. They exclude taxation.
Segment liabilities comprise operating liabilities. They exclude
items such as taxation and corporate borrowings.
Capital expenditure comprises additions to property, plant and
equipment and intangible assets.
The Group manages its operating segments on a global basis. The
UK is the home country of the parent. The Group's revenue is mainly
generated in Europe.
Revenue is allocated below based on the entity's country of
domicile.
2017 2016
GBP'000 GBP'000
------------------------------------- ----------------- -----------------------
Revenue
Europe 71,249 64,122
Rest of the World 386 366
------------------------------------- ----------------- -----------------------
71,635 64,488
------------------------------------- ----------------- -----------------------
Total segment assets are allocated based on where the assets are located.
Restated (*)
2017 2016
GBP'000 GBP'000
------------------------------------- ----------------- -----------------------
Total segment assets
Europe 27,119 22,148
Rest of the World 62 174
------------------------------------- ----------------- -----------------------
27,181 22,322
------------------------------------- ----------------- -----------------------
4. DIVIDS
A dividend in respect of the year ended 31 December 2017 of
1.75p per share, amounting to a total dividend of GBP464,000 is to
be proposed at the Annual General Meeting on 14 June 2018. These
financial statements do not reflect this proposed dividend.
5. 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 year, which
excludes the shares held in the Employee Share Ownership Plan
(ESOP) trust.
Restated (*) 2016
2017 GBP'000
GBP'000
--------------------------------------------------------------------------- ------------ ------------------
Profit attributable to equity holders of the Company 2,496 1,423
--------------------------------------------------------------------------- ------------ ------------------
Thousands Thousands
--------------------------------------------------------------------------- ------------ ------------------
Weighted average number of ordinary shares in issue 26,346 26,295
100 472
Adjustment for share options
---------------------------------------------------------------------------
Weighted average number of ordinary shares for diluted earnings per share 26,446 26,767
--------------------------------------------------------------------------- ------------ ------------------
Pence Pence
--------------------------------------------------------------------------- ------------ ------------------
Basic earnings per share 9.47 5.41
Fully diluted earnings per share 9.43 5.32
--------------------------------------------------------------------------- ------------ ------------------
(*) Refer to note 7 for full details of the restatement of 2016
figures.
6. NOTES TO THE CASH FLOW STATEMENT
Cash generated from/(used in) operations
Restated
(*)
2017 2016
GBP'000 GBP'000
------------------------------------------- ----------- ---------
Profit for the year after tax 2,447 1,307
Adjustments for:
Taxation 699 557
Finance costs 159 193
Past service costs - (1,328)
Depreciation 569 521
Amortisation of intangible assets 333 277
(Profit) on sale of PPE (3) (10)
Foreign currency translation 16 18
Increase/(decrease) in provisions 24 (879)
Share option charge 229 238
Movement in retirement benefit obligation (632) (578)
Movement in working capital:
Increase/(decrease) in inventories 3 (23)
(Decrease) in trade and other receivables (1,647) (1,199)
Increase in trade and other payables 2,974 80
Cash generated/(used in) from operations 5,171 (826)
------------------------------------------- ----------- ---------
(*) Refer to note 7 for full details of the restatement of 2016
figures.
7. PRIOR YEAR RESTATEMENT
The Board have reviewed their previously adopted accounting
treatment in relation to two indirectly held subsidiary entities,
which were previously not consolidated by virtue of being
considered to be immaterial contingent net assets.
Having considered the requirements of IFRS 10 the Board have
restated the Consolidated Statement of Financial Position as at 1
January 2016 and 31 December 2016, the Consolidated Income
Statement for the year ended 31 December 2016, and all other
elements of the financial statements so affected. In doing so, the
consolidated financial statements are now prepared recognising
Atrium Holdings Limited and P.H. UK Limited as indirectly but
wholly owned subsidiaries of Christie Group plc and recognise that
indirect beneficial ownership of both entities has vested with
Christie Group plc since 30 April 2015.
The effect on the Consolidated Income Statement for 2016 is set
out below:
Previously
reported Restated Impact
2016 2016 of restatement
GBP'000 GBP'000 GBP'000
---------------------------------- ----------- ---------- ----------------
Revenue 64,488 64,488 -
---------------------------------- ----------- ---------- ----------------
Operating expenses (63,468) (63,347) 121
Operating profit before
exceptional items 1,020 1,141 121
---------------------------------- ----------- ---------- ----------------
Exceptional items 1,328 1,328 -
---------------------------------- ----------- ---------- ----------------
Operating profit after
exceptional items 2,348 2,469 121
Finance costs (543) (625) (82)
---------------------------------- ----------- ---------- ----------------
Profit before tax 1,805 1,844 39
Taxation (516) (537) (21)
---------------------------------- ----------- ---------- ----------------
Profit after tax 1,289 1,307 18
---------------------------------- ----------- ---------- ----------------
Earnings per share attributable
to equity holders -
pence
* Basic 5.35 5.41 0.06
* Fully diluted 5.25 5.32 0.07
---------------------------------- ----------- ---------- ----------------
The effect on the Statement of Financial Position as at 31
December 2016 was as follows:
Previously
reported Restated Impact
2016 2016 of restatement
GBP'000 GBP'000 GBP'000
------------------------------- ----------- ---------- ----------------
Property, plant and
equipment 1,468 3,559 2,091
Other receivables 451 182 (269)
Cash and cash equivalents 1,637 1,638 1
Trade and other payables (8,883) (8,916) (33)
------------------------------- ----------- ---------- ----------------
Current borrowings (5,624) (5,686) (62)
Non-current borrowings (1) (1,663) (1,662)
Other assets and liabilities
(net) 1,666 1,666 -
------------------------------- ----------- ---------- ----------------
Net assets / (liabilities) (9,286) (9,220) 66
------------------------------- ----------- ---------- ----------------
Property, plant and equipment has been restated to recognise
P.H. UK Limited's ownership of the freehold property of Pinder
House, 249 Upper Third Street, Milton Keynes, MK9 1DS.
Current and non-current borrowings are restated to include
amounts payable by Atrium Holdings Limited and its immediate and
wholly owned subsidiary undertaking, P.H. UK Limited. Borrowings
within these companies are without direct recourse to any other
group company, including Christie Group plc. The bank loan is
secured against the freehold property noted above.
The impact of the restatement of the opening Statement of
Financial Position for 2016, as at 1 January 2016, was an increase
in net assets at that date of GBP48,000.
Report and Accounts
Copies of the 2017 Annual Report and Accounts will be posted to
shareholders in May. Further copies may be obtained by contacting
the Company Secretary at the registered office. Alternatively, the
2017 Annual Report and Accounts will be available to download from
the investor relations section on the Company's website
www.christiegroup.com
Key dates
The Annual General Meeting of the Company is scheduled to take
place at 10.00am on Thursday 14th June 2018 at Whitefriars House, 6
Carmelite Street, London, EC4Y 0BS.
Group Companies
Professional Business Services
Christie & Co
Christie & Co is a leading specialist firm providing
business intelligence in the hospitality, leisure, healthcare,
medical, childcare & education and retail sectors. It employs
the largest teams of sector specialists in the UK & Europe
providing professional agency, valuation and consultancy
services.
www.christie.com www.christiecorporate.com
Christie Finance
Christie Finance has 40 years' experience in financing
businesses in the hospitality, leisure, healthcare, medical,
childcare & education, retail and medical sectors. Christie
Finance prides itself on its speed of response to client
opportunities and its strong relationships with finance
providers.
www.christiefinance.com
Christie Insurance
With over 40 years' experience arranging business insurance in
the hospitality, leisure, healthcare, retail and medical sectors,
Christie Insurance is a leading company in its markets. It delivers
and exceeds clients' expectations in terms of the cost of their
insurance and the breath of its cover.
www.christieinsurance.com
Pinders
Pinders is the UK's leading specialist business appraisal,
valuation and consultancy company, providing professional services
to the licensed, leisure, retail and care sectors, and also the
commercial and corporate business sectors. Pinders staff use
business analysis and surveying skills to look ay the detail of the
businesses to arrive at accurate assessments of their trading
potential and value.
www.pinders.co.uk
Stock & Inventory Systems & Services
Orridge
Orridge is Europe's longest established stocktaking business
specialising in all fields of retail stocktaking including high
street, warehousing & factory operations, pharmacy and supply
chain services. Orridge prides itself on the speed in supplying
high quality management information to its clients.
www.orridge.co.uk
Venners
Venners is the leading supplier of stocktaking, inventory,
consultancy services and related stock management systems to the
hospitality sector. Venners is the largest and longest established
stock audit company in the sector in the UK.
www.venners.com
Vennersys
Vennersys operates in the UK and North America with over 20
years experience delivering online Cloud-based ticketing sales and
admission systems to visitor attractions. Examples include historic
houses & estates, zoos, safari parks, playcentres and
cinemas.
www.vennersys.com www.vennersys.ca
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR MMGMDRVGGRZM
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