RNS No 5980a
CHRISTIE GROUP PLC
27 August 1999
Christie Group plc
Unaudited interim results for the six months ended 30 June 1999
and
Acquisition of the business of Vision Associates
Christie Group plc announces its interim results for the six months ended 30
June 1999.
Highlights include:
- Turnover up 17% and pre-tax profit ahead 14% on corresponding period*
- Proposed payment of maiden interim dividend of 1p per Ordinary Share
- New #1 million+ contract from Forte to install EPoS in 42 Heritage Hotels,
announced today
- Launch of Christie.com, Europe's most extensive interactive website of
businesses for sale
- Christie & Co valued Unique Pub Company's estate of 2,614 pubs for #810m
refinancing
- Successful opening of Frankfurt offices for Christie & Co and Venners Computer
Systems
- Acquisition of Vision Associates (www.visiondirectkiosk.com), specialists in
3D multimedia software for touchscreen internet kiosks and kiosk design, for
#300,000, announced today
* Adjusted on a like-for-like basis
Commenting on the results, Philip Gwyn, Chairman, said:
"We are pleased with these results, and expect continuing improvements in
financial performance in the second half, reflecting strong trading since the
half-year end.
"I believe Christie Group has a unique opportunity to deliver new services to
its clients in the hospitality, leisure and retail sectors, in the UK and
overseas. The Group has long had a policy of investing in new technologies, and
consequently is well positioned to participate in the changes to our markets, in
terms of the services we offer and methods of delivery. This combination of
specialist services and market-leading technology should continue to drive
growth and profitability throughout the Group."
"Today's acquisition of Vision Associates fulfils these strategic criteria,
adding a high quality multi-media design expertise to broaden our existing
software offering. It gives us exciting possibilities to develop new and
complementary products for existing clients of the Group. We will continue to
look for acquisitions on a similar scale which add to our skill base, enhance
our existing software applications, and increase our geographic reach."
CHAIRMAN'S STATEMENT FOR THE HALF YEAR TO 30 JUNE 1999
I am pleased to report a pre-tax profit for the six months to 30 June 1999 of
#1.2m on turnover of #16.3m.
Adjusted on a like-for-like basis, turnover for the period increased by 17% and
pre-tax profit was ahead 14% of the six months to 30 June 1998. We expect
continuing improvements in financial performance in the second half, reflecting
strong trading since the half-year end.
The Group's year-end was changed in December 1998, and in consequence these
results for the six months to 30 June 1999 are not comparable to the prior half-
year ended 30 September 1998. The Group's business is substantially weighted
towards the last 10 months of the calendar year, and therefore a lower level of
reported sales and profits was anticipated by the Board for this period,
reflecting inclusion of the seasonally weaker January and February periods in
these results.
The Group has continued to pursue its strategy of international expansion,
investment in developing and rolling out innovative technology and systems, and
the development of new services, in line with our aim of consolidating our
position as a leading supplier of specialist services to the sectors we serve.
In the first half, important progress has been achieved through organic growth
in increasing international representation and enhancing our range of services
across the hospitality, leisure, healthcare and retail sectors.
The expansion of Christie & Co into Europe has been enhanced by the opening of a
Frankfurt office, jointly shared with Venners Computer Systems, in addition to
last year's opening in Paris. During this initial investment phase, the offices
are performing in line with our expectations, and we have seen encouraging
progress in Paris and Frankfurt and referrals from these offices to the UK. We
believe we will build a successful business from each of these offices.
Professional Business Services Division
This division achieved sales of #10.76m and operating profit of #0.65m.
Christie & Co consolidated its market leadership with the launch of Christie.com
in May. This is Europe's most extensive interactive website of businesses for
sale, featuring over 2,200 businesses throughout the UK. Sales particulars and
other information are available instantaneously. The market for the sale of
businesses remained buoyant in a low interest rate environment. Corporate
takeover activity is continuing which perpetuates the supply to the market of
surplus business units. New lending remains highly competitive.
In the course of the first half year, Christie & Co acted as valuer and as agent
in a number of substantial transactions. These included valuing the Unique Pub
Co. estate of 2,614 pubs for its #810 million bond issue, acting for Phoenix in
the sale of 272 pubs to Pennant Inns and valuing Swallow Group's tenanted estate
of 662 pubs for Pubmaster in its #128m acquisition. Christie & Co also acted
for Jurys in their #172m international acquisition of Doyle Hotels, and sold
Sofra Group's 10 London cafs to Scottish & Newcastle for its Espres Coffee
chain.
Information Systems and Services Division
These businesses generated operating profits of #0.55 million on sales of #5.52
million. Today, Venners Computer Systems announces its first order from Forte
Hotels to install its touchscreen EPoS system in 42 Heritage Hotels, including
such hotels as the Randolph Hotel in Oxford, and the Compleat Angler at Marlow.
The contract is worth in excess of #1 million. In each case, the hotel's till
system will be linked to both kitchen and bar dispenses (for order processing)
and to reception for central billing. Venners Computer Systems has this month
also announced the introduction of customer-facing EPoS utilising high quality
images of available menu items.
Venners' stock auditing growth continues. New clients include Burtonwood
Brewery and Pitcher and Piano. Venners' new Retail stocktaking division
widened its client base, with trials with High Street plcs continuing and the
latest radio transmitting laser bar scanners just introduced. The Company was
awarded its first stocktaking contract in Germany to add to inventory work
already undertaken there. We believe that Venners is well positioned to benefit
from the continuing trend to out-sourcing in the hospitality, leisure and retail
sectors.
Acquisition of Vision Associates business
The Group is pleased to announce today the acquisition of the business of Vision
Associates (www.visiondirectkiosk.com), for a consideration of #300,000,
payable immediately. The business will trade as a division of Venners Computer
Systems, which specialises in the provision of touchscreen EPoS and stock
control software, including head office systems, for managing food and beverage
operations nationally and internationally.
The Vision Associates business, which has 8 employees, is based in Burton-on-
Trent. It designs both 3D multimedia software for touchscreen internet kiosks
and the kiosks themselves. The acquisition will also bring in-house additional
skills useful for the development of existing software products and those under
development, such as customer-facing EPoS.
Year 2000
Each company in the Group has reviewed its systems to ensure, so far as is
possible, we are Year 2000 ready. With this work and following IT investment
in hardware and software of #1.2m over the past two years, we believe we have
taken the appropriate measures.
Board Appointments
During the period we have strengthened the Board through the appointment of
Derek Fitch, Managing Director of Venners, Stephen Mansfield, Managing Director
of Venners Computer Systems and Andrew Muir, formerly of Cazenove & Co, as a
Non-Executive Director. The presence on the Board of two Directors with
significant IT expertise is of great value to the Group in a world seeing the
rise of IT applications and e-commerce.
Interim Dividend
We view the outcome for the year as a whole with confidence and therefore
propose the introduction of an interim dividend of 1p per share for shareholders
registered on 10 September 1999.
Contact:
Philip Gwyn (Chairman)
David Rugg (Managing Director)
Robert Zenker (Finance Director) 0171 227 0707
Jon Coles - Brunswick 0171 404 5959
Consolidated profit and loss account
Unaudited Unaudited Audited
6 months 6 months 9 months
ended ended ended
30 30 31
June September December
1999 1998 1998
Notes #'000 #'000 #'000
Turnover 2 16,284 16,300 24,534
Net operating costs (15,090) (14,713) (22,461)
Operating Profit 1,194 1,587 2,073
Net Interest receivable 29 25 59
Profit on ordinary activities before tax 1,223 1,612 2,132
Tax on profit on ordinary activities 3 (443) (548) (720)
Profit on ordinary activities after tax 780 1,064 1,412
Dividends - ordinary shares 4 (243) - (481)
Retained profit for the period 537 1,064 931
Earnings per share 5 3.24p 4.42p 5.87p
Earnings per share - fully diluted 5 3.22p 4.42p 5.87p
Statement of Total Recognised Unaudited Unaudited Audited
Gains and Losses 6 months 6 months 9 months
ended ended ended
31 30 30
June September December
1999 1998 1998
#'000 #'000 #'000
Profit on ordinary activities after 780 1,064 1,412
taxation
Gain on foreign currency translation 43 - 14
Total Recognised Gains 823 1,064 1,426
Consolidated balance sheet
Unaudited Unaudited Audited
30 31
30 June September December
1999 1998 1998
#'000 #'000 #'000
Fixed Assets
Tangible assets 2,656 2,214 2,579
Current assets
Stock 378 257 220
Debtors 8,094 5,343 6,581
Cash at bank and in hand 1,571 3,256 2,416
10,043 8,856 9,217
Creditors - amounts falling due
within one year (7,357) (6,277) (7,135)
Net current assets 2,686 2,579 2,082
Total assets less current liabilities 5,342 4,793 4,661
Creditors - amounts falling due (262) (298) (285)
after more than one year
Net assets 5,080 4,495 4,376
Capital and reserves
Called up equity share capital 486 481 481
Share premium account 3,623 3,504 3,504
Profit and loss account 971 510 391
Shareholders' funds - equity interests 5,080 4,495 4,376
Notes to the interim report
1. Basis of preparation
The unaudited results have been prepared in accordance with the accounting
policies set out in the Financial Statements for the 9 months ended 31 December
1998.
The financial information in this interim report does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. Statutory
accounts for the 9 months ended 31 December 1998, upon which the auditors gave
an unqualified opinion, have been delivered to the Registrar of Companies.
2. Segmental information
Analysis of turnover and operating profit by division are given below:
Half year to Half year to 9 months to
30 June 1999 30 Sept 1998 31 December 1998
#'000 #'000 #'000
DIVISION Turnover Operating Turnover Operating Turnover Operating
(Unaudited) Profit (Unaudited) Profit Profit
(Unaudited) (Unaudited)
Professional 10,762 647 10,942 1,243 15,957 1,308
Business
Services
Information 5,522 547 5,358 344 8,577 765
Systems and
Services
TOTAL 16,284 1,194 16,300 1,587 24,534 2,073
3. Taxation
The tax charge for the six months has been based on the estimated effective tax
rate for the year to 31 December 1999 of 36%.
4. Dividend
The dividend of 1p per share will be payable to shareholders on the register on
10 September 1999. The ex-dividend date will be 6 September 1999. The dividend
will be paid on 4 October 1999.
5. Earnings Per Share
Earnings per share is based on the profit attributable to shareholders of
#780,000 (six months to 30 September 1998 - #1,064,000; 31 December 1998 -
#1,412,000) and 24,076,306 ordinary shares of 2p each, being the average number
of shares in issue during the six months (30 September 1998 - 24,057,569; 31
December 1998 - 24,057,569). Fully diluted earnings per share is based on the
profit attributable to shareholders of #780,000 (six months to 30 September 1998
- #1,064,000; Year to 31 December 1998 - #1,412,000) and 24,206,191 (30
September 1998 - 24,057,569; 31 December 1998 - 24,057,569) ordinary shares of 2
pence each being the average number of shares in issue during the period after
allowing for the exercise of outstanding share options.
6. Interim report
Copies of the interim report are available from Christie Group plc, 50 Victoria
Street, London SW1H ONW.
END
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