TIDMCTG
RNS Number : 9526O
Christie Group PLC
15 June 2022
15 June 2022
Christie Group plc
("Christie Group" or the "Company")
AGM Statement
Christie Group plc (CTG.L), the leading provider of Professional
& Financial Services and Stock & Inventory Systems &
Services to the hospitality, leisure, healthcare, medical,
childcare & education and retail sectors, announces that at
today's Annual General Meeting, the Chairman and Chief Executive,
David Rugg, delivered the following statement:
"I am pleased to report that our business continues to grow this
year.
As anticipated, costs too have increased as we have resumed a
normalised level of travel and in-person marketing activities.
However, costs are not as high as expected as recruitment is
challenging and vacancies are taking longer to fill.
Professional & Financial Services
Following a solid start to the year, we are enjoying a busier
second quarter of deal activity.
Our European team have just had its most successful month in two
years. Transactions included the sale to Raiffeisen Immobilien KAG
of the newly constructed 200 room Bassena Hotel, Wein Donaustadt,
Vienna.
Notably in the Care sector landlords have been cooperating in
operating company sales, in order to gain a better covenant of
established and profitable tenants, thereby increasing the value of
the landlords' own investments.
Higher energy costs are impacting running costs of the
businesses we sell. Those businesses which are unable to increase
their prices will experience a squeeze on operating margins. Such a
squeeze will serve to cap the value of these businesses.
Pinders' building services division has experienced an uptick in
technical due-diligence surveys that include an engineer's review
of the heating, ventilation and air-conditioning systems of a
building.
Private and institutional valuation instructions have both now
recovered to pre-pandemic levels for both individual and portfolio
assignments.
Demand for deal funding remains strong. Christie Finance has
funded over 30% of Christie & Co arranged retail transactions
this year. This demonstrates the greater opportunity for increased
funding penetration. The average size of Christie Finance deals has
increased by 25% over the same period last year.
UK commercial insurance premiums continue to rise by
approximately 20% per annum.
For Christie Insurance clients, where cover was provided, we
have ensured payment for Covid-19 claims.
Stock & Inventory Systems & Services
Vennersys continues to benefit from high volumes of domestic
visitors to UK visitor attractions. This trend increases our online
revenue year on year. Venues require a smooth online journey upon
which we are focused. New wins include Manx National Heritage and
Inverary Castle.
Our stocktaking businesses incur three principal operating
costs: transport, labour, and technology. High fuel costs, the
delay in new vehicle deliveries and the knock-on effects of the
recent increases in minimum wage adversely impact our costs.
In retail operations we have maintained or improved our margins.
In leisure operations as downtime becomes fully utilised our margin
is restored, aided by necessary price increases.
Recent in-house IT developments ensure a paperless electronic
service.
In Europe, our established operations are well run and
profitable largely offsetting the costs of developments in newer
territories.
Our Supply Chain services are in demand, and we have now
extended their provision to Europe.
Overall, more Retailers and Licensed Retailers are choosing to
outsource their stocktaking activities, rather than to occupy their
scarce management resource with in-house provision.
Summary
Across the Group we are maintaining a flexible working approach.
Collaborative physical working in the presence of colleagues is
very important, but allowances to enable concentration on solo
tasks is also beneficial and productive where required. I thank all
our staff who continue to be co-operative, flexible & effective
and our management whose oversight has become more complex.
The banks continue to wilfully fund our sectors.
We have yet to see any material level of distress induced work,
but with the prevailing inflationary pressures, we expect to see an
increased level of distress later this year.
Post the pandemic effect in the first quarter, stocktaking new
business activity is increasing.
Our cash resources are maintained.
We have already generated a significant value of transactional
work for our second half.
We anticipate another good year.
Yours ever."
Enquiries:
Christie Group plc
David Rugg
020 7227 0707
Chairman and Chief Executive
Dan Prickett
020 7227 0700
Chief Operating Officer
Shore Capital:
Patrick Castle / Iain Sexton 020 7408 4090
Nominated Adviser & Broker
Notes to Editors:
Christie Group plc, quoted on AIM, is a leading professional
business services group with 39 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 for the purposes of
Article 7 of the UK Market Abuse Regulation (EU) No. 596/2014 which
is part of the UK law by virtue of the European Union (Withdrawal)
Act 2018.
For more information, please go to www.christiegroup.com.
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END
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