TIDMCTG
RNS Number : 7956V
Christie Group PLC
19 April 2021
19 April 2021
Christie Group plc
Preliminary results for the 12 months ended 31 December 2020
Christie Group plc ('Christie Group' or the 'Group'), the
leading provider of Professional & Financial Services (PFS) and
Stock & Inventory Systems & Services (SISS) to the
hospitality, leisure, healthcare, medical, childcare &
education and retail sectors, is pleased to announce its audited
preliminary results for the 12 months ended 31 December 2020.
Key points:
-- Revenue of GBP42.2m (2019: GBP78.0m) impacted by the pandemic
-- Operating profit pre exceptionals for the 2(nd) HY GBP1.1m
-- Operating loss for the full year pre exceptionals contained
to GBP4.4m loss (2019: GBP5.8m profit)
-- Sectorisation of Christie & Co - more flexibility,
efficiency and lower cost base going forward
-- All our sectors remain in demand and pricing of businesses is robust
-- Retail stocktaking restructured
-- Prudently foregone a final dividend (2019 total dividend: 1.25p per share)
-- Ended year with a healthy cash balance of GBP10.3m (2019: GBP9.8m)
-- Earnings per share (19.32p) - 2019: 15.30p
-- 2021 has started positively and look forward to remainder of year with enthusiasm
Commenting on the results, David Rugg, Chairman and Chief
Executive of Christie Group said:
"2020 Group performance was impacted by the pandemic especially
in the 1(st) half year; however, we have already experienced a
recovery in performance in the 2(nd) half year. The business
reorganisations taken by the Group during this period, have created
the ability to generate higher levels of profitability. 2021 has
started positively in the PFS division and Retail stocktaking
businesses, and as our Hospitality stocktaking & visitor
attractions businesses reopen we shall be firing on all
cylinders."
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
Shore Capital
Antonio Bossi / Patrick Castle
Nominated Adviser & Broker 020 7408 4090
Notes to Editors:
Christie Group plc (CTG.L), quoted on AIM, is a leading
professional business services group with 40 offices across the UK
and Europe, 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 & Financial Services (PFS) and Stock &
Inventory Systems & Services (SISS). These divisions trade
under the brand names: PFS - 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 valued 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
Review of 2020 results and performance
Following an unprecedented first half to the year, we are
pleased to report the return to operating profit in the second half
of the year. Our operating loss before restructuring costs for the
year was contained to GBP4.4m (2019: GBP5.8m operating profit)
derived from decimated revenue of GBP42.2m (2019: GBP78.0m). We
have risen from an extraordinary year with transformed businesses,
tight-knit focused teams and a renewed sense of purpose.
Despite the considerable adverse financial impact and ongoing
effect of the Covid-19 pandemic, 2020 was a positive year for
Christie Group as we proved our resilience, adaptability and the
value of the roles we undertake for our clients across all our
businesses.
We experienced an encouraging first quarter, boosted by the
certainty of a decisive general election result. However, the
pandemic's arrival meant that business effectively stalled for
three months, with our physical offices closed and systems and
people adapting to the demands of remote working to the extent
required.
Professional & Financial Services
Our Professional & Financial Services ("PFS") Division
achieved revenue of GBP26.3m (2019: GBP46.0m). Despite a reduction
in revenue of GBP19.7m, through prompt and decisive action we
limited the derived operating loss to GBP1.9m, compared to an
operating profit of GBP6.2m in the prior year.
The outstanding attitude of our people drove a broadly positive
performance across the PFS division. For example, Christie &
Co, our business intelligence, valuation and consultancy firm,
following sectorisation focused more effectively than ever on
clients' key priorities, enabling it to make efficiency gains and
achieve better margins. Our brilliant Childcare & Education
team won the 'Broker - of Educational Institutions' award at the
Education Investor awards 2020. Our Christie Insurance brokerage
successfully placed business in a historically challenging market,
winning new business while also achieving its budgeted
client-retention figures.
An encouraging first quarter was progressively curtailed by
Covid-19. Our last major pre-Covid event was the successful
Healthcare Design Awards held on 11(th) March run by Pinders, our
business appraisal practice.
Our continuing teams assumed the transactions and assignments of
their furloughed colleagues. With their on-site management duties
largely in abeyance we enjoyed a period of great productivity.
Our agency business adopted a sector focus. This proved the
sectorised model with which we reorganised the business.
The continued stamp duty holiday should ensure a vibrant
residential market releasing capital for first-time business
buyers.
Our FCA-authorised Christie Finance operation saw increased
demand for the services of all its divisions, benefiting from its
positive relationships with a very wide array of niche lenders at a
time of reduced appetite from the big banks. In addition, the
availability of the UK government's Coronavirus Business
Interruption Loan Scheme ("CBILS") and bounce-back loans
effectively created a new marketplace for the firm which was busily
engaged throughout arranging loans predominantly through challenger
banks.
Pinders, our specialist business appraisal, valuation and
consultancy company, continued to build a solid platform for
growth, ending 2020 with a stronger new business pipeline than the
previous year.
Our territories in Europe were the most affected by the pandemic
in view of their focus on the hotel industry. Hotels coming to the
market are now generating strong interest, where appropriately
priced. As recently announced, Christie & Co have been ranked
as the most active agent in the hotel sector across Europe for 2020
based on the number of hotels sold, according to Real Capital
Analytics.
Stock & Inventory Systems & Services
Our Stock & Inventory Systems & Services ("SISS")
division achieved revenue of GBP16.0m for 2020 (2019: GBP32.1m).
Taking into consideration, our constrained trading periods, we
showed a marked improvement to the rate of loss, when the trading
result is compared on a pro rata basis to the prior year.
There were encouraging developments for our SISS division too.
The services of our Venners hospitality stocktaking business, for
example, were in considerable demand prior to lockdowns, as
business success and even survival for many players depends on
understanding stock levels and eliminating waste.
With our Retail stocktaking business closed in the UK, we took
the opportunity to plan a new start. We focused upon developing
tight-knit teams, with flexible but client-focused skills and
efficiencies. These teams comprised a smaller number of empowered
cross-function management.
From January 2021 we are seeing the benefit of our new approach
with increased efficiency and high accuracy of counts. The
extension of flexible furlough has given us the ability to recall
stocktakers into operations in line with our hospitality clients'
resumption of trade.
Vennersys, meanwhile, continued to prove it is positioned at the
forefront of providing advanced online ticketing solutions for the
UK leisure industry. Additionally, demand grew for Orridge's
retail, pharmacy and supply-chain stocktaking services in the UK
and Europe. You can read in more detail about the performance of
our subsidiaries elsewhere in this report.
The Government's culture grant to museums and heritage
attractions was augmented in the recent Budget. This funding is
enabling new Vennersys SAAS clients to open in a Covid-19-secure
manner through joining our online timed ticketing facility.
The advent of Brexit has made no discernible impact to our
businesses performance to date.
The impact of Covid-19
Despite such reasons for encouragement, we cannot ignore the
fact that our business environment overall was extremely
challenging during the year, and our revenues for the first half of
the year were only approximately half of those we generated in
2019. We therefore undertook a number of actions to minimise the
long-term impact on our business. These are set out in our Finance
Director's review. For example, as previously reported we availed
ourselves of a GBP6 million loan from the CLBILS.
In addition, we took action across the organisation to reduce
our running costs and reduced permanent employee numbers by 7.5%,
in line with our new ways of working. I am also extremely grateful
to our staff and directors who willingly accepted a reduction in
their remuneration while trading was either stalled or interrupted.
I must also thank and congratulate our many colleagues who during
this difficult time continued to support their communities, often
through charitable activities. We continue to admire, encourage and
support their selfless endeavours.
While at the time of writing we have been blessed in that none
of our employees have succumbed to the virus, many of us have lost
friends and relations during the pandemic. Several of our clients
have lost colleagues and other loved ones, as have many of the
businesses with which we partner to deliver our services. Our
thoughts and condolences are with all those affected.
None of the year's achievements would have been possible without
the ongoing diligence, energy and commitment of our extremely
hard-working management and staff. Their performance was exemplary
throughout the year, and I am enormously grateful to each and every
one of them.
We saw some significant changes at the trading entity Board
level during the year. My congratulations go to Scott Hulme, who
was appointed to the role of Venners Managing Director. Likewise,
congratulations are deservedly due to Darren Flack, who has been
appointed as Managing Director of Orridge UK Retail and Pharmacy. I
am pleased to announce that Mr Simon Herrick will be joining the
Group Board as a Non-executive Director from the 1 May 2021. Simon
brings with him a wealth of experience in multinational FMCG,
property, consultancy, food, software, manufacturing and retail
sectors.
Strategy
During the year we continued our strategic objectives. We
accelerated our application of technology & used lockdown
periods to test solutions that best require systems shut down. Our
reorganisations reflected our strategic objective to increase
operating margins as revenue rebuilds.
Outlook
We have come into the year with a strong cash position, having
already repaid GBP1.0m of our CLBILS facility.
Your directors have prudently opted not to propose a dividend
for 2020. It is our intention to reconsider dividend payments once
supported by more normalised trading.
Following business reorganisations in 2020 we have created the
ability to generate higher levels of profitability from the levels
of revenue previously achieved. The year has started positively for
our Professional and Financial Services and Retail stocktaking
businesses. As these activities are joined by hospitality
stocktaking and visitor attractions are reopened we shall be firing
on all cylinders. After allowing for inevitable lead time and lags
associated with sector reopening, for each quarter that our Group
is permitted to trade unimpeded we expect to do so profitably.
David Rugg
Chairman and Chief Executive
16 April 2021
CHIEF OPERATING OFFICER'S REVIEW
The prevailing theme when looking back at 2020, across both our
PFS and SISS divisions, is of a year where the scale of what we
were able to offer was significantly disrupted by the pandemic, but
the flexibility, value and quality of our services when provided
were undiminished, if not enhanced.
While the headline financial results for the year - and
particularly the fall in revenue compared to 2019 - illustrate the
impact of that reduction in activity, within that - for those
periods where each of our businesses and the sectors they serve
were able to trade - there was much to be encouraged by. We saw
enough from each of our businesses during a profitable second half
of the year for the Group as a whole, to be confident that all of
our trading brands can be profitable contributors to the Group in
future.
Professional & Financial Services Division
Our agency and advisory business, Christie & Co, remained
active across all of its sectors throughout the year, and continued
to serve clients in both the UK and internationally from its
European network.
While brokerage activity in terms of the number of businesses
sold in the year was 45% lower than achieved a year earlier,
average commissions received held up well. Indeed, the average fee
per business sold was up 29% on a year earlier, although it should
be noted this was partly a reversal of the mix of types of
businesses sold which last year explained a 21% fall. A comparison
across a slightly longer period of reflection shows average
brokerage fees per business sold were at a level broadly consistent
with 2018 and 2017.
There were several notable transactions across our sectors. In
Hotels, highlights included the sale of the Grade II-listed Warren
House in Surrey to Sun Hotel Limited, with Christie & Co acting
for the private vendors as well as advising Peel Hotels on their
sale of The Cosmopolitan Hotel in Leeds to the newly-formed Belfont
Hotels. Internationally the second half brought more success than a
very subdued H1, with the sale of the Schlosshotel Klink in Germany
reflective of a more active summer.
In Care, where once again Christie & Co was the most active
broker in the UK, we successfully supported the retiring directors
of Waverley Care Centre Limited in their sale of the leading South
Wales care home to Bellavista Care Homes in one of the largest
single-asset care home transactions in Wales.
Our Medical teams were busy throughout the year in both the
Dental and Pharmacy markets. In the latter, we continued to support
Boots and Rowlands on their respective multi-site disposal projects
while also seeing a 17% increase in independent pharmacy
instructions. In the former, it was a year where brokerage activity
gathered momentum, with the value of offers received in the second
half of 2020 being a 300% increase on that received in the first
six months.
Our award-winning Childcare & Education team were somewhat
stopped in their tracks by the impact of Covid on the sector after
an initially buoyant level of activity at the beginning of the
year. Values in the sector have nonetheless held up and activity
began to pick up again from Easter. Highlights in a very
challenging year included the sale of Heathfield Knoll School to
KSI Education, and the sale of Futurepath Childcare to Grandir UK,
the expanding French childcare operator.
Our Retail team were able to support a buoyant level of demand
for convenience stores and forecourts. Our appointment by Bestway
Retail Ltd to market 37 stores across the UK illustrated our
standing in the sector.
For the pub sector, we saw very little in the year in terms of
large-scale portfolio transactions, although the volume of
single-asset transactions rose, partly as a reflection of
first-time buyer appetite.
For Pinders, their decentralised national team of business
appraisers were already 'Covid ready' in their working practices.
They were therefore very quickly able to transition to undertaking
inspections in a Covid-secure manner.
Nonetheless, the first lockdown brought a sharp decline in new
instructions for a short period. The subsequent recovery in
activity levels represented an almost-symmetrical reversal of the
second-quarter decline, so that by the end of the year weekly
activity levels and volumes were back to levels comparable with the
last quarter of 2019. Indeed, in the final month of 2020, the
number of valuation reports issued was actually 14% higher than the
same period a year before, boding well for 2021 demand.
With Christie & Co's own valuation teams experiencing a
similar trend in the year, the number of valuations carried out in
the division for the year as a whole fell to 42% of the previous
year's volume. Despite this, fee levels held up well with a small
increase in the average fee per valuation, reversing an almost
equivalent fall seen in 2019.
PFS divisional KPIs 2020 2019
Total businesses sold 624 1,127
------ --------
% Increase / (decrease) in average fee
per business sold 29.3% (21.4%)
------ --------
Total value of businesses sold (GBPm) 823 1,444
------ --------
Total valuations carried out 2,642 6,346
------ --------
% increase / (decrease) in average fee
per valuation 0.8% (0.7%)
------ --------
Value of businesses valued (GBPm) 3,889 9,532
------ --------
% increase in number of loan offers secured 2.3% 13.9%
------ --------
Average loan size (GBP'000) 413 481
------ --------
Within the PFS division, our financial services businesses,
Christie Finance and Christie Insurance, were well placed to
support clients throughout the pandemic with little or no
disruption to their services. As owners and operators sought ways
to access both traditional funding and the attractively-priced
government funding schemes, Christie Finance were expertly
positioned to support clients in securing it for them.
A 2% increase in the number of loan offers secured illustrates
that borrower demand remained strong throughout the year, despite
the disruption to the level of transactionally-led referral volumes
that would normally come across from Christie & Co's agency
teams. Indeed, Christie Finance experienced increased demand in its
Core, Corporate and Unsecured divisions as businesses were able to
access commercial mortgages through CBILS.
For our insurance intermediary business, securing new business
was challenging in sectors where, due to the impacts of Covid and
insurers' own caution regarding their own business interruption
liabilities, appetite for taking on new client risk among
underwriters was severely limited, particularly in the Care
sector.
Nonetheless, Christie Insurance were able to support clients
across our chosen sectors in understanding the insurance market as
it applied to them. As the ability to shift insurers became more
challenging, premiums hardened and retention rates improved.
Stock & Inventory Systems & Services Division
The impact on our ability to carry out stocktakes during the
year as lockdown restrictions were applied to the retail and
hospitality sectors in particular, is starkly illustrated by the
fact that we were only able to complete 57% of the volume of jobs
we achieved in 2019. Our hospitality stock audit business, Venners,
bore the heaviest burden in that regard, with only 48% of the
previous year's volume of work possible.
Covid-secure operating requirements dictated that where it was
possible to carry out stocktaking, it was necessary to undertake
smaller assignments with reduced team sizes to limit people
interactions. That dynamic is reflected by a 12.5% fall in the
average income we earned per job, but the productivity improvements
achieved in Orridge in the UK meant that the profitability per job
was increased, despite the lower per-event income.
Positively - and demonstrating the value that independent
stocktaking has to our clients - we saw demand return quickly when
allowed. For Orridge, trading in both the UK and Europe was
encouraging through much of the second half of 2020, before the
onset of winter lockdowns and traditional seasonal demand effects
in the UK combined to curtail activity in the final few weeks of
the year.
SISS divisional KPIs 2020 2019
Total stocktakes & audits carried out (number
of jobs) 38,930 68,055
-------- -------
% increase / (decrease) in average income
per job (12.5%) 1.5%
-------- -------
For the traditionally-profitable Venners, from a complete
lockdown through April and May we then saw revenues recover
steadily through the third quarter to levels which, while still
significantly lower than normalised pre-Covid invoicing, were
sufficient for the business to return to trading profitably in the
month of September.
No sooner had we reached this point of recovery, it was then
immediately followed by the introduction of tier-based restrictions
on hospitality in October before the further national lockdowns
that followed thereafter, and which have remained in place
throughout the first quarter of 2021.
Nonetheless, this demonstrated how swiftly the business can
expect to scale back up and return to profit. We have retained a
nationwide team of over 150 BII-accredited licensed-trade
stocktakers who will be key to our future success and we have been
grateful for their support and endurance through an exceptionally
difficult period for the hospitality sector.
Despite these frustrations, Venners were still able to secure
new business with a number of clients including Alton Towers Group,
the Savini Group and HF Holidays, all of which we look forward to
working with when restrictions come to an end.
For Vennersys, our visitor attraction software provider, it was
a not-dissimilar story of continued progress offset by the
frustration of our clients being unable to trade for large periods
of the year.
Working from home presented no obstacles to the business in
itself, with staff and management able to transition quickly to
remote - but still collegiate and creative - working.
For the summer months of 2020, attractions saw strong consumer
demand return, particularly for those who were able to offer
outdoor experiences and events, and Vennersys's own revenues and
performance were strong through that period as a result, as
pre-booked ticketing became a 'must-have' even for many of those
clients who had previously opted for more reduced functionality
alongside their traditional ticketing processes.
Cross-selling initiatives have also gathered pace. Vennersys has
worked collaboratively with other group companies, such as Christie
Finance, enabling them to help their clients to access funding to
support their own investment plans.
Against this backdrop, growth continued. By the end of 2020, the
total number of sites using VenPos Cloud had increased by 31%
compared to a year earlier, and total new sales orders confirmed in
the year equated to 33% of 2019 revenues.
Summary
I wrote in early September when we released the then-delayed
2019 results, the events of 2020 have certainly not curtailed our
optimism or belief in what can be achieved by the Group in the
years ahead. 'Unprecedented' is a word which has been as overused
in the last twelve months as any, but our businesses and brands
have showed themselves to be resilient to the task.
If anything, 2020 has allowed us to review our operating models
and enhance efficiency and productivity where it was appropriate to
do so, while also re-confirming that the range of services we offer
our clients - underpinned by sector specialist knowledge and with
client relationships at the very heart of what we do - are as
valuable to them as they have ever been.
We look forward to the remainder of 2021 with enthusiasm.
Dan Prickett
Chief Operating Officer
16 April 2021
Consolidated Income Statement
For the year ended 31 December 2020
Note
2020 2019
GBP'000 GBP'000
---------------------------------------------- ----- ---------- ----------
Revenue 2 42,224 78,041
Other income - government grants 3 8,182 -
Employee benefit expenses (40,338) (53,754)
---------------------------------------------- ----- ---------- ----------
10,068 24,287
Impairment (charge)/reversal (120) 22
Gain on sale and leaseback of property - 1,531
Other operating expenses (14,303) (20,069)
---------------------------------------------- ----- ---------- ----------
Operating (loss)/profit before restructuring
costs (4,355) 5,771
Restructuring costs 4 (672) -
Operating (loss)/profit post restructuring
costs (5,027) 5,771
Finance costs (1,316) (1,351)
Finance income 4 2
Total finance costs (1,312) (1,349)
---------------------------------------------- ----- ---------- ----------
(Loss)/profit before tax (6,339) 4,422
Taxation 1,277 (409)
---------------------------------------------- ----- ---------- ----------
(Loss)/profit after tax (5,062) 4,013
---------------------------------------------- ----- ---------- ----------
Profit for the period after tax attributable
to:
Equity shareholders of the parent (5,062) 4,013
Earnings per share attributable to equity holders - pence
Profit attributable to the equity holders of the Company
Basic 6 (19.32) 15.30
Diluted 6 (19.32) 14.87
---------------------------------------------- ----- ---------- ----------
All amounts derive from continuing activities.
The accompanying notes are an integral part of these preliminary
results .
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2020
2020 2019
GBP'000 GBP'000
----------------------------------------------------- --------------- ----------
(Loss)/profit after tax (5,062) 4,013
---------------------------------------------------- ----- ---------- ----------
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translating foreign
operations (34) (145)
---------------------------------------------------- ----- ---------- ----------
Net other comprehensive losses to be reclassified
to profit or loss in subsequent years (34) (145)
---------------------------------------------------- ----- ---------- ----------
Items that will not be reclassified subsequently
to profit or loss:
Actuarial (losses)/gains on defined benefit
plans (8,052) 1,207
Income tax effect 1,770 (205)
---------------------------------------------------- ----- ---------- ----------
Net other comprehensive (losses)/income
not being reclassified to profit or loss
in subsequent years (6,282) 1,002
---------------------------------------------------- ----- ---------- ----------
Other comprehensive (losses)/income/ for
the year net of tax (6,316) 857
---------------------------------------------------- ----- ---------- ----------
Total comprehensive (losses)/income for
the year (11,378) 4,870
---------------------------------------------------- ----- ---------- ----------
Total comprehensive (losses)/income attributable to:
Equity shareholders of the parent (11,378) 4,870
------------------------------------ --------- ------
Consolidated Statement of Changes in Shareholders' Equity
As at 31 December 2020
Attributable to the Equity Holders of the Company
Other Cumulative
Share reserves translation Retained Total
capital GBP'000 reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------- --------- ---------- ------------- ---------- ---------
Balance at 1 January 2019 531 5,357 765 (10,853) (4,200)
------------------------------------- --------- ---------- ------------- ---------- ---------
Profit for the year after
tax - - - 4,013 4,013
Items that will not be reclassified
subsequently to profit or
loss - - - 1,002 1,002
Items that may be reclassified
subsequently to profit or
loss - - (145) - (145)
------------------------------------- --------- ---------- ------------- ---------- ---------
Total comprehensive income
for the year - - (145) 5,015 4,870
Movement in respect of employee
share scheme - 27 - - 27
Employee share option scheme
- value of services provided - 59 - - 59
Dividends paid - - - (790) (790)
------------------------------------- --------- ---------- ------------- ---------- ---------
Balance at 31 December 2019 531 5,443 620 (6,628) (34)
------------------------------------- --------- ---------- ------------- ---------- ---------
Loss for the year after tax - - - (5,062) (5,062)
Items that will not be reclassified
subsequently to profit or
loss - - - (6,282) (6,282)
Items that may be reclassified
subsequently to profit or
loss - - (34) - (34)
Total comprehensive losses
for the year - - (34) (11,344) (11,378)
Movement in respect of employee
share scheme - (27) - - (27)
Employee share option scheme
- value of services provided - 46 - - 46
Dividends paid - - - - -
Balance at 31 December 2020 531 5,462 586 (17,972) (11,393)
------------------------------------- --------- ---------- ------------- ---------- ---------
Consolidated Statement of Financial Position
At 31 December 2020
2020 2019
GBP'000 GBP'000
-------------------------------- ----------------- -----------------
Assets
Non-current assets
Intangible assets - Goodwill 1,855 1,810
Intangible assets - Other 1,038 1,243
Property, plant and equipment 1,819 1,557
Right of use assets 5,774 6,649
Deferred tax assets 5,114 2,649
Other receivables 2,263 1,901
----------------------------------- ----------------- -----------------
17,863 15,809
-------------------------------- ----------------- -----------------
Current assets
Inventories 24 35
Trade and other receivables 10,624 14,914
Current tax assets 976 240
Cash and cash equivalents 10,284 9,807
----------------------------------- ----------------- -----------------
21,908 24,996
-------------------------------- ----------------- -----------------
Total assets 39,771 40,805
----------------------------------- ----------------- -----------------
Equity
Share capital 531 531
Other reserves 5,462 5,443
Cumulative translation
reserve 586 620
Retained earnings (17,972) (6,628)
----------------------------------- ----------------- -----------------
Total equity (11,393) (34)
----------------------------------- ----------------- -----------------
Liabilities
Non-current liabilities
Trade and other payables 50 464
Retirement benefit obligations 20,136 12,011
Lease liabilities 7,999 8,737
Borrowings 3,000 -
Provisions 1,004 590
----------------------------------- ----------------- -----------------
32,189 21,802
-------------------------------- ----------------- -----------------
Current liabilities
Trade and other payables 13,316 11,574
Lease liabilities 1,296 1,122
Current tax liabilities - 43
Borrowings 3,206 5,055
Provisions 1,157 1,243
----------------------------------- ----------------- -----------------
18,975 19,037
-------------------------------- ----------------- -----------------
Total liabilities 51,164 40,839
----------------------------------- ----------------- -----------------
Total equity and liabilities 39,771 40,805
----------------------------------- ----------------- -----------------
Consolidated Statement of Cash Flows
For the year ended 31 December 2020
Note 2020 2019
GBP'000 GBP'000
---------------------------------------------- ------- ---------- ----------
Cash flow from operating activities
Cash generated from operations 7 2,503 6,535
Interest paid (1,081) (992)
Tax paid (197) (361)
---------------------------------------------- ------- ---------- ----------
Net cash generated from operating activities 1,225 5,182
---------------------------------------------- ------- ---------- ----------
Cash flow from investing activities
Purchase of property, plant and equipment (899) (540)
Proceeds from sale of property, plant
and equipment 15 5,082
Intangible asset expenditure (184) (326)
Interest received 4 2
Net cash generated (used in)/from investing
activities (1,064) 4,218
---------------------------------------------- ------- ---------- ----------
Cash flow from financing activities
Proceeds from bank loan 6,000 -
Repayment of bank loan (1,000) (653)
Repayment of other loan (910) -
(Repayment)/drawdown of invoice finance (476) 37
Repayment of lease liabilities (825) (1,596)
Dividends paid - (790)
Net cash generated/(used in) financing
activities 2,789 (3,002)
---------------------------------------------- ------- ---------- ----------
Net increase in cash 2,950 6,398
Cash and cash equivalents at beginning
of year 6,625 201
Exchange gains on euro bank accounts (10) 26
Cash and cash equivalents at end of
year 9,565 6,625
---------------------------------------------- ------- ---------- ----------
The accompanying notes are an integral part of these preliminary
results.
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 2020 or 31 December 2019.
The financial information has been extracted from the statutory
accounts of the Company for the years ended 31 December 2020 and 31
December 2019. The auditors reported on those accounts; their
reports were unqualified.
The statutory accounts for the year ended 31 December 2019 have
been delivered to the Registrar of Companies, whereas those for the
year ended 31 December 2020 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 June
2021.
These policies have been consistently applied to all years
presented, unless otherwise stated.
2. SEGMENT INFORMATION
The Group is organised into two main operating segments:
Professional & Financial Services (PFS) and Stock &
Inventory Systems & Services (SISS).
The segment results for the year ended 31 December 2020 are as
follows:
PFS SISS Other Group
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ---------- ---------- ---------- ----------
Total gross segment sales 26,320 16,014 3,123 45,457
Inter-segment sales (110) - (3,123) (3,233)
----------------------------- ---------- ---------- ---------- ----------
Revenue 26,210 16,014 - 42,224
----------------------------- ---------- ---------- ---------- ----------
Operating loss (1,863) (3,164) - (5,027)
Finance costs (824) (227) (261) (1,312)
----------------------------- ---------- ---------- ---------- ----------
Loss before tax (2,687) (3,391) (261) (6,339)
----------------------------- ---------- ---------- ---------- ----------
Taxation 1,277
----------------------------- ---------- ---------- ---------- ----------
Loss for the year after tax (5,062)
----------------------------- ---------- ---------- ---------- ----------
The segment results for the year ended 31 December 2019 are as
follows:
PFS SISS Other Group
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- ---------- ----------
Total gross segment sales 46,063 32,088 3,333 81,484
Inter-segment sales (110) - (3,333) (3,443)
------------------------------- ---------- ---------- ---------- ----------
Revenue 45,953 32,088 - 78,041
------------------------------- ---------- ---------- ---------- ----------
Operating profit/(loss) 6,224 (1,984) 1,531 5,771
Finance costs (915) (382) (52) (1,349)
------------------------------- ---------- ---------- ---------- ----------
Profit before tax 5,309 (2,366) 1,479 4,422
------------------------------- ---------- ---------- ---------- ----------
Taxation (409)
------------------------------- ---------- ---------- ---------- ----------
Profit for the year after tax 4,013
------------------------------- ---------- ---------- ---------- ----------
Revenue is allocated below based on the entity's country of
domicile.
2020 2019
GBP'000 GBP'000
------------------- ---------- ----------
Revenue
Europe 42,174 77,632
Rest of the World 50 409
------------------- ---------- ----------
42,224 78,041
------------------- ---------- ----------
3. OTHER INCOME - GOVERNMENT GRANTS
The Group has benefited from the Government support due to the
Covid-19 business disruption, utilising the furlough scheme from
its commencement which has provided financial assistance towards
employee salaries in 2020. During 2020, GBP8,182,000 (2019: GBPnil)
Government grants have been recognised in the Consolidated Income
Statement, under the category Other income - government grants.
4. RESTRUCTURING COSTS
2020 2019
GBP'000 GBP'000
-------------------- --------- ---------
Restructuring costs 672 -
672 -
-------------------- --------- ---------
During the year, the Group incurred restructuring costs of
GBP672,000, including GBP628,000 of employee related termination
costs.
5. DIVIDS
A dividend in respect of the year ended 31 December 2020 of
0.00p per share (2019: 0.00p), amounting to a total dividend of
GBPnil (2019: GBPnil) is to be proposed at the Annual General
Meeting on 16 June 2021.
In the year the Group paid an interim dividend of 0.00p per
share (2019: 1.25p) totalling GBPnil (2019: GBP326,000).
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 year, which
excludes the shares held in the Employee Share Ownership Plan
(ESOP) trust.
2020 2019
GBP'000 GBP'000
--------------------------------------------------------------------------- ------------ ------------
(Loss)/profit attributable to equity holders of the Company (5,062) 4,013
--------------------------------------------------------------------------- ------------ ------------
Thousands Thousands
--------------------------------------------------------------------------- ------------ ------------
Weighted average number of ordinary shares in issue 26,220 26,220
843 755
Adjustment for share options
---------------------------------------------------------------------------
Weighted average number of ordinary shares for diluted earnings per share 27,063 26,975
--------------------------------------------------------------------------- ------------ ------------
Pence Pence
--------------------------------------------------------------------------- ------------ ------------
Basic earnings per share (19.32) 15.30
Diluted earnings per share (19.32) 14.87
--------------------------------------------------------------------------- ------------ ------------
7. NOTES TO THE CASH FLOW STATEMENT
Cash generated from operations
2020 2019
GBP'000 GBP'000
-------------------------------------- --------- ---------
(Loss)/profit for the year after
tax (5,062) 4,013
Adjustments for:
Taxation (1,277) 409
Finance costs 1,096 1,000
Depreciation 1,818 1,936
Amortisation of intangible assets 390 469
Profit on sale of property, plant
and equipment (5) (1,531)
Increase in provisions 328 504
Foreign currency translation 45 12
Share option charge 46 59
Movement in retirement benefit
obligation (143) (900)
Movement in non-current other
receivables (362) 12
Movement in working capital:
Decrease/(increase) in inventories 11 (6)
Decrease/(increase) in trade and
other receivables 4,290 (54)
Increase in trade and other payables 1,328 612
Cash generated from operations 2,503 6,535
-------------------------------------- --------- ---------
Report and Accounts
Copies of the 2020 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
2020 Annual Report and Accounts will be available to download from
the investors 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 Wednesday 16(th) June 2021 as a closed virtual
meeting.
Group Companies
Professional & Financial Services
Christie & Co
Christie & Co is the leading specialist firm providing
business intelligence in the hospitality, leisure, healthcare,
medical, childcare & education and retail sectors. A leader in
its specialist markets, it employs the largest team of sector
experts in the UK & Europe providing professional agency,
valuation and consultancy services.
www.christie.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
Christie Insurance has over 40 years' experience arranging
business insurance in the hospitality, leisure, healthcare,
medical, childcare & education and retail sectors. It delivers
and exceeds clients' expectations in terms of the cost of their
insurance and the breadth 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. Its Building Consultancy
Division offers a full range of project management, building
monitoring and building surveying services. Pinders staff use
business analysis and surveying skills to look at 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 and factory operations, pharmacy and supply
chain services. It also has a specialised pharmacy division
providing valuation and stocktaking services. Orridge prides itself
in its ability to deliver high-quality management information to
its clients effectively and conveniently.
www.orridge.eu
Venners
Venners is the leading supplier of stocktaking, inventory,
consultancy and compliance services and related stock management
systems to the hospitality sector. Consultancy and compliance
services include control audits and live event stock taking.
Bespoke software and systems enable real-time management reporting
to customers using the best available technologies. 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 deliveries online Cloud-based
ticketing sales and admission Systems to visitor attractions such
as historic houses and estates, museums, zoos, safari parks,
aquaria and cinemas. It has over 25 years' experience delivering
purpose-designed solutions for clients' ticketing, admissions, EPoS
and food and beverages sales requirements.
www.vennersys.co.uk
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END
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