Half Yearly Report

RNS Number : 7330R
Christie Group PLC
16 September 2014
 



16 September 2014


Christie Group plc
Interim Results for the six months ended 30 June 2014


Christie Group plc ('Christie' or the 'Group'), the leading provider of Professional Business Services and Stock & Inventory Systems & Services to the leisure, retail and care markets, is pleased to announced its Interim Results for the six months ended 30 June 2014.



Key points:

 

·      Revenue for the first half up 14.4% to £29.4m (2013: £25.7m)

·      £1.1m increase in operating profit before exceptional items to £0.8m (2013: £0.3m loss)

·      Basic earnings per share up 5p per share to 1.74p (2013: 3.26p negative eps)

·      Interim dividend increased by 50% to 0.75p per share (2013: 0.5p per share)

·      Corporate M&A instructions provide basis for expectation of a strong full year result

 

 

Commenting on the results, David Rugg, Chief Executive of Christie Group, said:

 

"Our first half performance and the activity we continue to see provides us with confidence that we will deliver a much improved result for the year as a whole, driven by a resurgent UK M&A market."

 

Enquiries:

 

Christie Group plc

 

David Rugg

Chief Executive

020 7227 0707

Daniel Prickett

Chief Financial Officer

 

020 7227 0700


Charles Stanley Securities

Nominated Adviser & Broker

Russell Cook / Carl Holmes


020 7149 6000

 

Notes to Editors:

Christie Group plc, quoted on AIM, is a leading professional business services group with 43 offices across the UK, Europe and Canada, catering to its specialist markets in the leisure, retail and care sectors.

 

Christie Group operates in two complementary business divisions: Professional Business Services (PBS) and Stock & Inventory Systems & Services (SISS). These divisions trade under the brand names: PBS - Christie + Co, Pinders, Christie Finance and Christie Insurance: SISS - Orridge, Venners and Vennersys.

 

Tracing its origins back to 1846, the Group has a long established reputation for offering essential services to client companies in agency, valuation services, investment, consultancy, project management, multi-functional trading systems and online ticketing services, stock audit and inventory management. The diversity of these services provides a natural balance to the Group's core agency business.

 

For more information, please go to www.christiegroup.com.



CHAIRMAN'S STATEMENT


I am pleased to report a first-half operating profit before exceptional items of £0.8m (2013: £0.3m loss) which is in line with the positive outlook presented in my AGM statement in June.  This £1.1m improvement in the H1 operating result before exceptional items follows a 14.4% increase in revenue to £29.4m (2013: £25.7m).

 

Professional Business Services


Our corporate Mergers & Acquisitions activity has been both intense and successful, with our UK operations leading the recovery in what has been an encouraging six months.   The rewards of this activity have continued to accrue across the summer and, with our pipelines fully charged, we anticipate the delivery of a strong second-half result.

M&A activity has continued apace.  Owners of companies trading in our sectors increasingly appreciate how a detailed knowledge of industry demands and focus coupled with the long term trust of the national, regional and local players allows us a "rifle shot" approach when desired to deliver both a quick and timely transaction at the best available terms.

 

First half instructions in the hotel sector included the recently completed sale of QMH Hotels for the owning consortium as well as LRG's disposal of 19 Holiday Inn hotels for a price significantly above the £70 million guide price. C+Co have also been instructed to market De Vere Group's Golf & Resort Hotels, with a value of over £160m.

 

Our consultants carried out advisory work on a number of non-performing loan portfolios, including a circa €4bn NPL portfolio in Spain which includes a significant number of hotels.

 

In the Care arena, we sold Caring Daycare Nurseries, a group of 12 children's day nurseries, to Busy Bees Ltd. We also acted for Mencap in the sale of 3 Educational Colleges to GI Partners' backed Cambian Group.

 

We have sold pubs to Wetherspoons since their inception and were pleased to add Browns Hotel in Tavistock to their portfolio. We were pleased to advise a mainstream fast food franchise in releasing equity - an illustration of our knowledge in the fast food sector.This is complemented by Venners Food Services Consultancy.

 

Our Pharmacy agency division was pleased to report the sale of 11 community pharmacies to AMG Healthcare, the major shareholder of which is buying group Avicenna plc.

 

Pinders' building division has been newly appointed to work on behalf of British Telecom.  Building inspection reports were also prepared for Majestic Bingo on the Top Ten Bingo portfolio.

 

Christie Finance has established a specialist Medical Sector team to assist the funding of pharmacies, GPs' and dental surgeries and veterinary practices.

 

The regulation of consumer credit introductions has moved from the OFT to the FCA. Our belief is that a number of competitors will not choose to seek full authorisation, affording increased opportunity for those which remain.

 

The purpose of insurance is to meet losses. Christie Insurance were pleased to assist our client in being able to re-open the Cambridge Arms Hotel in the space of four days, following a fire.

 

Stock & Inventory Systems & Services


Three planned events have enabled us to continue to grow revenue in our Stock & Inventory Systems & Services division at the expense of a short term impact on operating profit.  These moves will facilitate the further growth of the businesses concerned and allow us to safeguard continuing underlying profitability.

 

When we acquired our German based retail stocktaking business in September 2013, we knew that its revenues were heavily biased towards the second half of the year.   This continues to be the case.     Moving forward, we are pursuing further new work for H1 2015 to better balance our German trade.

 

We have just finished writing a new stocktaking system for our hospitality stocktaking business Venners, appropriately called Next Generation.  We will introduce this to clients progressively through to April 2015.  This system is designed to deliver real-time reporting and online access, delivery and consumption of data and margin and revenue analysis to our clients.  We believe it is a marked improvement over our existing system and ahead of any commercially scaleable solution we know of.

 

In Vennersys we have finished an online merchandising system which operates as a stand-alone module of our new visitor attraction software encompassing online ticketing, event control, point of sale and customer relationship management.

 

Recent new clients included Carphone Warehouse, Swarovski in Belgium, Holland and Germany and Molton Brown, Harveys of Lewes, St. Austell Brewery and Novus Leisure.

From October this year we will accommodate the knock-on effect of an increase in minimum wage.

Whilst we await any legislation relating to zero hour contracts, it is noteworthy that our day rate staff each currently work approximately 96% of the hours of their full time equivalents.

 

Outlook


UK trading is set fair for our second half.  We continue carefully to expand whilst our business continues to grow organically.  The sectors we operate in are buoyant, too.  We expect to report a strong outcome for the year with the potential for further improvement once the recovery in mainland Europe materialises.

 

On your behalf, I thank our management and staff for some truly excellent achievements.

 

The Board have declared an increased interim dividend of 0.75p per share (2013: 0.50p per share) which will be paid on 17 October 2014 to shareholders on the register on 26 September 2014.

 

 



 

Consolidated interim income statement



 

 

 

 

 

Note


Continuing operations:






Revenue

4

29,406

25,702

54,154


Employee benefit expenses


(19,839)

(18,580)

(36,121)




9,567

7,122

18,033


Depreciation and amortisation


(273)

(308)

(564)


Impairment credit / (charge)


-

77

(53)


Other operating expenses


(8,479)

(7,164)

(15,849)


Operating profit / (loss) before exceptional items

4

815

(273)

1,567


Exceptional items *


-

(396)

(442)


Operating profit / (loss) after exceptional items


815

(669)

1,125


Finance costs


(53)

(52)

(120)


Finance income


-

-

4


Pension scheme finance costs


(124)

(8)

(468)


Total finance charge


(177)

(60)

(584)


Profit / (loss) before tax from continuing operations


638

(729)

541


Taxation

5

(311)

(67)

(351)


Profit / (loss) for the period after tax from continuing operations


327

(796)

190








Discontinued operations:






Profit / (loss) for the period from discontinued operations

6

-

(29)

(29)


Profit / (loss) for the period after tax


327

(825)

161

 

    Profit / (loss) for the period after tax attributable to:

Equity shareholders of the parent


458

(824)

212

Non-Controlling interest


(131)

(1)

(51)



327

(825)

161

   

 Earnings per share - pence

Profit / (loss) attributable to the equity holders of the Company





- Basic

7

1.74

(3.26)

0.82

- Fully diluted

7

1.66

(3.26)

0.80

Profit / (loss) from continuing operations attributable to the equity holders of the Company





- Basic

7

1.74

(3.15)

0.93

- Fully diluted

7

1.66

(3.15)

0.91

 

* Exceptional costs for the half year to 30 June 2013 and year to 31 December 2013 relate to the restructuring of operations. There are no such costs in the half year to 30 June 2014.

 

                                 

 

 

 

 

 

Consolidated interim statement of comprehensive income



 

 

 

 

 

 








Profit / (loss) for the period after tax


327

(825)

161








Other comprehensive income / (losses):












Items that may be reclassified subsequently to profit or loss:






Exchange differences on translating foreign operations


17

(4)

46


Net other comprehensive income / (losses) to be reclassified to profit or loss in subsequent periods


17

(4)

46








Items that will not be reclassified to profit or loss:






Actuarial (losses) / gains on defined benefit plans


(2,393)

1,499

4,839


Income tax effect


443

(315)

(1,183)


Net other comprehensive (losses) /  income not being reclassified to profit or loss in subsequent periods


(1,950)

1,184

3,656








Other comprehensive (losses) / income for the period, net of tax


(1,933)

1,180

3,702


Total comprehensive (losses)  / income for the period


(1,606)

355

3,863

 

Total comprehensive (losses) / income attributable to:

Equity shareholders of the parent


(1,475)

356

3,914

Non-Controlling interest


(131)

(1)

(51)

 



(1,606)

355

3,863

 

 

 



Consolidated interim statement of changes in shareholders' equity

 

Share capital

£'000

Fair value and other reserves £'000

Cumulative

translation

adjustments

£'000

Retained earnings

£'000

Non - Controlling interest

£'000

Total equity

£'000

Half year to 30 June 2013 (Unaudited)

Balance at 1 January 2013

505

4,688

457

(10,113)

(75)

(4,538)

(Loss)/ profit for the period after tax

-

-

-

(824)

(1)

(825)

Other comprehensive income

-

-

(4)

1,184

-

1,180

Total comprehensive (losses)  / income for the period

 

-

-

(4)

360

(1)

355

Movement in respect of employee share scheme

-

53

-

(23)

-

30

Employee share option scheme:







- value of services provided

-

43

-

-

-

43

Proceeds from shares issued

26

758

-

-

-

784

Balance at 30 June 2013

531

5,542

453

(9,776)

(76)

(3,326)








Year ended 31 December 2013 (Audited)

Balance at 1 January 2013

505

4,688

457

(10,113)

(75)

(4,538)

Profit / (loss) for the year after tax

-

-

-

212

(51)

161

Other comprehensive income

-

-

-

3,656

-

3,656

Exchange differences on translating foreign operations

-

-

 

46

 

-

 

-

 

46

 

Total comprehensive income / (losses) for the year

-

-

46

3,868

(51)

3,863

Transfer of non-controlling interest on liquidation

-            

-

 

-

 

(75)

 

75

 

-

 

Movement in respect of employee share scheme

-

 

19

 

-

 

(23)

 

-

(4)

 

Employee share option scheme:







-value of services provided

-

61

-

-

-

61

Proceeds from shares issued

26

758

-

-

-

784

Dividends paid

-

-

-

(257)

-

   (257)

Balance at 31 December 2013

531

5,526

503

(6,600)

(51)

(91)








Half year to 30 June 2014 (Unaudited)

Balance at 1 January 2014

531

5,526

503

(6,600)

(51)

(91)

Profit / (loss) for the period after tax

-

-

-

458

(131)

327

Other comprehensive (losses)

-

-

-

(1,950)

-

(1,950)

Exchange differences on translating foreign operations

-

-

17

-

-

17

Total comprehensive income / (losses)  for the period

-

-

17

(1,492)

(131)

(1,606)

Movement in respect of employee share scheme

-

(132)

-

(2)

-

(134)

Employee share option scheme:







- value of services provided

-

60

-

-

-

60

Dividends paid

-

-

-

(262)

-

(262)

Balance at 30 June 2014

531

5,454

520

(8,356)

(182)

(2,033)

 

 

 

Consolidated interim statement of financial position


 

 

 

Note

At 30 June 2014

£'000

(Unaudited)

At 30 June 2013

£'000

(Unaudited)

At 31 December 2013

£'000

Assets





Non-current assets





Intangible assets - Goodwill


1,763

1,011

1,793

Intangible assets - Other


570

408

507

Property, plant and equipment


970

1,080

1,088

Deferred tax assets


2,768

4,019

2,628

Available-for-sale financial assets


635

300

485

Other receivables


466

316

500



7,172

7,134

7,001

Current assets





Inventories


-

-

-

Trade and other receivables


12,472

11,840

10,819

Current tax assets


190

177

190

Cash and cash equivalents

12

421

334

1,747



13,083

12,351

12,756

Total assets


20,255

19,485

19,757

Equity





Capital and reserves attributable to the Company's equity holders



Share capital

9

531

531

531

Fair value and other reserves


5,454

5,542

5,526

Cumulative translation reserve


520

453

503

Retained earnings


(8,356)

(9,776)

(6,600)



(1,851)

(3,250)

(40)

Non-Controlling interest


(182)

(76)

(51)

Total equity


(2,033)

(3,326)

(91)

Liabilities





Non-current liabilities





Retirement benefit obligations

10

6,857

8,131

4,796

Provisions


313

644

561



7,170

8,775

5,357

Current liabilities





Trade and other payables


8,592

8,447

8,365

Borrowings


4,568

3,796

4,483

Provisions


1,958

1,793

1,643



15,118

14,036

14,491

Total liabilities


22,288

22,811

19,848

Total equity and liabilities


20,255

19,485

19,757

 

These consolidated interim financial statements have been approved for issue by the Board of Directors on 15 September 2014.

 

 



Consolidated interim statement of cash flows


 

 

 

 

 

Note

 

Half year to 30 June 2014

£'000

(Unaudited)

 


Half year to 30 June 2013

£'000

(Unaudited)

 

 

Year ended

31 December 2013

£'000

Cash flow from operating activities





Cash used in operations

11

(745)

(1,908)

(355)

Interest paid


(53)

(60)

(120)

Tax received


-

-

225

Net cash used in operating activities


(798)

(1,968)

(250)

Cash flow from investing activities





Acquisition of Subsidiary


-

-

(140)

Purchase of property, plant and equipment (PPE)


(134)

(81)

(297)

Proceeds from sale of PPE


6

8

13

Intangible assets expenditure


(61)

(93)

(267)

Investment in available-for-sale asset


(150)

-

(185)

Interest received


-

-

4

Net cash used in investing activities


(339)

(166)

(872)

Cash flow from financing activities





Proceeds from issuance of ordinary shares


-

784

784

Proceeds from / (repayment of) invoice discounting


969

(150)

18

Dividends paid


(262)

-

(257)

Net cash generated from financing activities


707

634

545

Net decrease in cash and cash equivalents


(430)

(1,500)

(577)

Cash and cash equivalents at beginning of period


(2,130)

(1,538)

(1,538)

Exchange (losses) / gains on Euro bank accounts


(12)

14

(15)

Cash and cash equivalents at end of period

12

(2,572)

(3,024)

(2,130)



Notes to the consolidated interim financial statements

1. General information

Christie Group plc is the parent undertaking of a group of companies covering a range of related activities.   These fall into two divisions - Professional Business Services and Stock & Inventory Systems & Services.   Professional Business Services principally covers business valuation, consultancy and agency, mortgage and insurance services, and business appraisal.  Stock & Inventory Systems & Services covers stock audit and counting, compliance and food safety audits and inventory preparation and valuation, hospitality and cinema software.

 

2. Basis of preparation

The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union.  IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement by the European Commission.  The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable as at 31 December 2014. 

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2013, except for those noted below and except for the adoption of new standards and interpretations effective as of 1 January 2014.  Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

 

Several new standards and amendments apply for the first time in 2014. However, they do not materially impact the annual consolidated financial statements of the Group or the interim condensed consolidated financial statements of the Group.

 

Non-statutory accounts

These consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting'.  The financial information for the period ended 30 June 2014 set out in this interim report does not constitute the Group's statutory accounts for that period.  The statutory accounts for the year ended 31 December 2013 have been delivered to the Registrar of Companies.  The auditors reported on those accounts; their report was unqualified, did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.  The financial information for the periods ended 30 June 2014 and 30 June 2013 is unaudited. 

3. Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future.   The resulting accounting estimates will, by definition, seldom equal the related actual results.   The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are consistent with those applied to the consolidated financial statements for the year ended 31 December 2013.



 

4. Segment information

The Group is organised into two main business segments: Professional Business Services and Stock & Inventory Systems & Services. 

 

The reportable segment results for continuing operations for the period ended 30 June 2014 are as follows:


 

Professional Business Services

£'000

 

Stock & Inventory Systems & Services

£'000

 

 

Other

£'000

 

 

Group

£'000

Total gross segment revenue

14,562

14,896

1,239

30,697

Inter-segment revenue

(52)

-

(1,239)

(1,291)

Revenue

14,510

14,896

-

29,406

Operating profit

831

264

(280)

815

Net finance charge




(177)

Profit before tax




638

Taxation




(311)

Profit for the period after tax




327

 

The reportable segment results for continuing operations for the period ended 30 June 2013 are as follows:


 

Professional Business Services

£'000

 

Stock & Inventory Systems & Services

£'000

 

 

Other

£'000

 

 

Group

£'000

Total gross segment revenue

13,152

12,602

1,163

26,917

Inter-segment revenue

(52)

-

(1,163)

(1,215)

Revenue

13,100

12,602

-

25,702

Operating (loss) / profit before exceptional items

(923)

766

(116)

(273)

Exceptional items

(396)

-

-

(396)

Operating (loss) / profit after

exceptional items

(1,319)

766

(116)

(669)

Net finance charges




(60)

Loss before tax




(729)

Taxation




(67)

Loss for the period after tax




(796)

 

The reportable segment results for continuing operations for the year ended 31 December 2013 are as follows:


 

Professional Business Services

£'000

 

Stock & Inventory Systems & Services

£'000

 

 

Other

£'000

 

 

Group

£'000

Total gross segment revenue

28,404

25,854

2,473

56,731

Inter-segment revenue

(104)

-

(2,473)

(2,577)

Revenue

28,300

25,854

-

54,154

Operating profit / (loss) before exceptional items

936

1,100

(469)

1,567

Net finance (costs) /credit

(442)

-

-

(442)

Operating profit / (loss) after exceptional items

494

1,100

(469)

1,125

Net finance charge

(455)

(128)

(1)

(584)

Profit before tax




541

Taxation




(351)

Profit for the year after tax




190

 

The Group is not reliant on any key customers.

 

5. Taxation

During the period, as a result of the change in the UK corporation tax rate, the opening deferred tax balances have been re-measured. Deferred tax assets recognised at 1 January 2014 which had been measured at 21% at 31 December 2013 have been re-measured using the enacted rate that will apply at 31 December 2014 (20%).

 

Deferred tax assets have been recognised in respect of tax losses and other temporary differences giving rise to deferred tax assets where it is probable that these assets will be recovered.

 

The tax on the Group's profit / (loss) before tax differs from the theoretical amount that would arise using the standard rate of corporation tax in the UK of 21% due to £125,000 arising from the reduction in the value of the brought forward deferred tax asset and a further £15,000 arising from other movements in the deferred tax asset.

6. Discontinued operation

On 31 January 2013, Christie + Co FZ LLC, a 95% owned subsidiary of Christie Group plc, ceased trading following the Board's decision to voluntarily liquidate the operation. The operations of Christie + Co FZ LLC have been classified as a discontinued operation for the period ended 30 June 2013.

 

The results of Christie + Co FZ LLC are as follows:

 



Half year to 30 June

2014

£'000

(Unaudited)

Half year to 30 June

2013

£'000

(Unaudited)

Year ended  31 December 2013

£'000

Revenue


-

9

9

Employee benefit expenses


-

-

-



-

9

9

Other operating expenses


-

(38)

(38)

Operating loss


-

(29)

(29)

Finance costs


-

-

-

Loss from discontinued operations


-

(29)

(29)

Total comprehensive (losses) from discontinued operations


-

(29)

(29)

7. Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period, which excludes the shares held in the Employee Share Ownership Plan (ESOP) trust. 

 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.   The Company has only one category of potential dilutive ordinary shares: share options.

 

The calculation is performed for the share options to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.



 

 

 

Half year to

30 June 2014

£'000

Half year to

30 June 2013

£'000

Year ended

31 December 2013

£'000

Profit / (loss) from continuing operations attributable to equity holders of the Company

458

 

(796)

 

241

 

(Loss) from discontinued operations attributable to equity holders of the Company

-

 

(28)

 

(29)

 

Profit / (loss) from total operations attributable to equity holders of the Company

458

212

 

 

 

 

30 June 2014

Thousands

 

30 June 2013

Thousands

 

31 December 2013

Thousands

Weighted average number of ordinary shares in issue

26,379

25,292

25,889

Adjustment for share options

1,133

263

466

Weighted average number of ordinary shares for diluted earnings per share

27,512

26,355

 

 

30 June 2014

Pence

 

30 June 2013

Pence

 

31 December 2013

Pence

Basic earnings per share




Continuing operations

1.74

(3.15)

0.93

Discontinued operations

-

(0.11)

(0.11)

Total operations

1.74

(3.26)

0.82

Fully diluted earnings per share




Continuing operations

1.66

(3.15)

0.91

Discontinued operations

-

(0.11)

(0.11)

Total operations

1.66

(3.26)

0.80

8. Dividends

A final dividend in respect of the year ended 31 December 2013 of 1.0p per share, amounting to a total dividend of £262,000, was approved and paid to the Christie Group plc registrar on 27 June 2014.  The funds were transferred to shareholders on 04 July 2014.

 

An interim dividend in respect of 2014 of 0.75p per share, amounting to a dividend of £199,000, was declared by the directors at their meeting on 10 September 2014. These financial statements do not reflect this dividend payable.

The dividend of 0.75p per share will be payable to shareholders on the record on 26 September 2014. The ex-dividend date will be 24 September 2014. The dividend will be paid on 17 October 2014.

9. Share capital

 

 

 

 

30 June 2014

 

 

 

30 June 2013

 

 

 

31 December 2013

 

Ordinary shares of 2p each

 

Number

 

£'000

 

Number

 

£'000

 

Number

 

£'000

Authorised:

At 1 January, 30 June and 31 December

 

30,000,000

 

600

 

30,000,000

 

600

 

30,000,000

 

600

Allotted and fully paid:

 

 

 

 

 

 

At beginning of period

26,526,729

531

25,263,551

505

25,263,551

505

Issue of shares

-

   -

  1,263,178

  26

1,263,178

26

At end of period

26,526,729

531

26,526,729

531

26,526,729

531

The Company has one class of ordinary shares which carry no right to fixed income.

 

 

 

 

 

During 2013, the Company placed 1,263,178 new 2p Ordinary shares during the period. The shares were placed at 62p per share, raising a total of £784,000.

 

Investment in own shares

The Group has established an Employee Share Ownership Plan (ESOP) trust in order to meet its future contingent obligations under the Group's share option schemes.  The ESOP purchases shares in the market for distribution at a later date in accordance with the terms of the Group's share option schemes.  The rights to dividend on the shares held have been waived.

 

At 30 June 2014 advances by the Group to the ESOP to finance the purchase of ordinary shares during the period were £135,000 (30 June 2013: £nil; 31 December 2013: £39,000).  The market value at 30 June 2014 of the ordinary shares held in the ESOP was £309,000 (30 June 2013: £57,000; 31 December 2013: £121,000).   The investment in own shares represents 238,000 shares (30 June 2013: 91,000; 31 December 2013: 151,000) with a nominal value of 2p each.

10. Retirement benefit obligations

The Group operates two defined benefit schemes (closed to new members) providing pensions on final pensionable pay.  The contributions are determined by qualified actuaries on the basis of triennial valuations using the projected unit method.

 

When a member retires, the pension and any spouse's pension is either secured by an annuity contract or paid from the managed fund.  Assets of the schemes are reduced by the purchase price of any annuity purchase and the benefits no longer regarded as liabilities of the scheme.

 

The amounts recognised in the statement of comprehensive income and the movement in the liability recognised in the statement of financial position have been based on the forecast position for the year ended 31 December 2014 after adjusting for the actual contributions to be paid in the period.

 

The movement in the liability recognised in the statement of financial position is as follows:

 

Half year to

 30 June 2014

£'000

Half year to 

30 June 2013

£'000

Year ended

31 December 2013

£'000

Beginning of the period

4,796

10,000

10,000

Expenses included in the employee benefit expense

284

348

567

Contributions paid

(740)

(718)

(1,400)

Finance costs

124

8

468

Actuarial losses / (gains) recognised

2,393

(1,499)

(4,839)

End of the period

6,857

8,139

4,796

 



 

 

 

The amounts recognised in the income statement and statement of comprehensive income are as follows:

 

Half year to

 30 June 2014

£'000

Half year to 

30 June 2013

£'000

Year ended

31 December 2013

£'000

Current service cost

284

340

567

Total included in employee benefit expenses

340

567

Net interest cost

124

8

468

Total included in finance costs

124

8

468

Actuarial (losses) / gains

(2,393)

1,499

4,839

Total included in other comprehensive income / (losses)

(2,393)

1,499

4,839

 

The principal actuarial assumptions used were as follows:

 

Half year to 30 June 2014

%

 Half year to 30 June 2013

%

 Year ended  31 December  2013

%

Inflation rate

3.2

3.2 - 3.3

3.2 - 3.3

Discount rate / expected return on plan assets

4.75

5.0 - 6.5

5.0

Future salary increases

3.2

3.2 - 3.3

3.2 - 3.3

Future pension increases

2.3 - 3.5

2.5 - 3.5

2.5 - 3.5

Assumptions regarding future mortality experience were consistent with those disclosed in the financial statements for the year ended 31 December 2013.

11.  Note to the cash flow statement

Cash (used in) / generated from operations


Half year to

 30 June 2014

£'000

Half year to

30 June 2013

£'000

Year ended

31 December 2013

£'000

Continuing operations




Profit / (loss) for the period

327

(796)

190

Adjustments for:




- Taxation

311

67

351

- Finance costs

53

60

116

- Depreciation

213

285

411

- Amortisation of intangible assets

60

23

153

- Profit on sale of property, plant and equipment

(1)

(28)

(42)

- Foreign currency translation

10

20

102

- Increase / (decrease) in provisions

67

(439)

(672)

- Movement in share option charge

60

43

61

- Retirement benefits

(332)

(370)

(365)

- Decrease/ (increase) in non-current other receivables

34

-

(184)

Changes in working capital (excluding the effects of exchange differences on consolidation):




- Decrease in inventories

-

1

1

- Decrease in trade and other receivables

(1,653)

(1,198)

(9)

- Increase /(decrease) in trade and other payables

106

771

(121)

Cash used in continuing operations

(745)

(1,561)

(8)

 

 

 

 

 




Discontinued operations




(Loss) for the period

-

(29)

(29)

Adjustments for:




- Finance costs

-

-

-

- Depreciation

-

-

-

- Loss on sale of property, plant and equipment

-

24

24

- Foreign currency translation

-

1

1

Changes in working capital (excluding the effects of exchange differences on consolidation):




- Decrease in trade and other receivables

-

28

28

- Decrease in trade and other payables

-

(371)

(371)

Cash used in discontinued operations

-

(347)

(347)

Cash used in operations

(745)

(1,908)

(355)

 12. Cash and cash equivalents include the following for the purposes of the cash flow statement:


Half year to

 30 June 2014

£'000

Half year to

30 June 2013

£'000

Year ended

31 December 2013

£'000

Cash and cash equivalents

421

334

1,747

Bank overdrafts

(2,993)

(3,358)

(3,877)


(2,572)

(3,024)

(2,130)

13. Related-party transactions

There is no controlling interest in the Group's shares.

 

During the period rentals of £159,000 (30 June 2013: £155,000; 31 December 2013: £310,000) were paid to Carmelite Property Limited, a company incorporated in England and Wales, and jointly owned by The Christie Group Pension and Assurance Scheme, The Venners Retirement Benefit Fund and The Fitzroy Square Pension Fund, by Christie Group plc in accordance with the terms of a long-term lease agreement.

14. Publication of Interim Report

The 2014 Interim Financial Statements are available on the Company's website www.christiegroup.com


This information is provided by RNS
The company news service from the London Stock Exchange
 
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