Interim Results
Christie Group PLC
23 September 2002
CHRISTIE GROUP PLC
INTERIM RESULTS FOR THE HALF YEAR TO 30 JUNE 2002
Highlights
• Group turnover marginally higher than previous half year at £21.5
million (2001: £21.3 million)
• Trading profit reduced to £147,000 (2001: £726,000)
• Strong cash flow
• Major clients for the period include Duke Street Capital, Macdonald
Hotels and Greene King
• Maintained interim dividend of 1p per share
Enquiries:
Christie Group 020 7227 0707 Philip Gwyn, Chairman
David Rugg, Chief Executive
Robert Zenker, Finance Director
Brunswick 020 7404 5959 Charlotte Elston or Michael Webster
Web site www.christiegroup.com
Chairman's Interim Statement for the half year to 30 June 2002
Turnover at £21.5 million was marginally higher than the previous half year
(£21.3 million) with trading profit reduced from £726,000 to £147,000. We do
not regard these figures as indicative of the outcome for the year and we have
enjoyed a stronger trading period compared to 2001 since the end of the
halfyear.
During the period net cash flow from operating activities rose to £856,000 from
£69,000 and we propose to pay a maintained interim dividend of 1p per share.
The well established UK businesses, Christie & Co, Venners, Pinders and Christie
First, all made advances in both sales and profits. However, the newer
business areas of software and the establishment of Christie & Co's
international presence saw increased losses. Both these activities are central
to our strategy and we see their problems as having been associated with
management issues. We have now strengthened the VcsTimeless Retail management,
and are operating the Christie & Co continental offices with more direct
involvement of experienced Christie & Co personnel.
Professional Business Services
The division's turnover increased to £12.8 million (2001: £12.1 million) while
operating profit reduced to £389,000 from £619,000.
Christie & Co continues to establish itself as the leading pan-European business
in its sector and, despite some disruption caused by the French elections,
substantial progress has been made across European markets.
Demonstrating its market leadership, Christie & Co carried out or advised on a
number of significant transactions in the last six months. These include
providing due diligence in respect of 54 health & fitness clubs and development
sites throughout the UK, Ireland, Spain, Portugal, France and Sweden to assist
Duke Street Capital with their £145 million acquisition of Esporta plc, advising
Nomura in connection with the sale of their three major pub companies, nightclub
valuations for Springwood Leisure, valuations of Day Nurseries and schools for
Asquith Court and valuation work for and/ or transactions with twelve listed
hotel owning companies. As part of ongoing consolidation in the pubs sector,
we advised on the sale of groups of pubs on behalf of Greene King to Punch Pub
Co, Laurel to County Estate Management, Rosewood Taverns to London Inn Group and
Lionheart Inns to a new pub company, Porter Black Holdings.
Christie First, our specialist insurance and finance business has continued to
grow with new offices opened in Ipswich, Leeds, and Nottingham.
Pinders, our specialist business appraisal company, has had a good start to the
year and is progressing on a number of fronts. One highlight included the
completion, on time, of a major project to oversee the design and build of a
45-bed nursing home in Birmingham, one of the first in the country to meet the
new National Care Standards.
Information Systems and Services
Turnover fell to £8.7 million (2001: £9.2 million) and operating losses
increased to £490,000 from £176,000 in 2001 due in part to reduced investment in
IT systems by clients. Despite these losses Information Systems and Services
remains a central part of our strategy for the Group as a whole and we are
confident of the potential of the businesses.
Our hospitality computer business, VcsTimeless Hospitality, has won a contract
with Macdonald Hotels to supply EPoS software and equipment. In addition, a
leading edge visitor admission system has been installed for the Longleat Estate
near Bath. VcsTimeless Retail, our retail software business, has launched
Colombus Regional, which allows each trading subsidiary, brand, or country to be
run independently, but consolidated at Head Office level. During the last six
months we have won significant contracts for Colombus systems which were sold to
Thierry Mugler, providers of haute couture; CWF who have children's clothes
shops in France, Austria and the UK, Tex Landes with 30 shops in the South of
France; Orchestra children's fashion which is installing our point of sale
systems in Europe, Saudi Arabia and Hong Kong and Sergent Major with over 200
shops world-wide.
Venners, our stock auditing business, has enjoyed continued growth through
adding new retail and hospitality accounts, including Rosebys Textiles, Ottakars
bookshops and Balaclava Bars and, assisting the Voyager Group with the transfer
of over 500 managed pubs to tenancy.
Management changes
There have been changes in the period to strengthen our Information Systems and
Services management team. Michel Ramis, formally a member of the Executive
Board of JDA Software Inc, has been appointed Chief Executive of VcsTimeless
Retail. Yves Doukhan becomes President of VCSTimeless Retail and a
non-executive director of Christie Group. Trevor Heyburn has been promoted to
Managing Director of Venners, our stock auditing company.
Outlook
Our strategy of creating a pan European professional business services and
information systems group continues to make progress. Despite difficult market
conditions we believe the Group can look forward to an improved performance in
the months and years ahead.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Notes Unaudited Unaudited Audited
half year to half year to year to
30 June 2002 30 June 2001 31 Dec 2001
Restated*
£000 £000 £000
Turnover 2 21,472 21,262 43,833
Net operating charges (21,325) (20,536) (41,515)
Trading profit 147 726 2,318
Exceptional item - - (262)
Goodwill amortisation (248) (283) (566)
Operating (loss)/profit (101) 443 1,490
Finance charges net (76) (139) (244)
(Loss)/profit on ordinary activities before taxation (177) 304 1,246
Tax on (loss)/profit on ordinary activities 4 (28) (230) (891)
(Loss)/profit on ordinary activities after taxation (205) 74 355
Dividends paid and proposed 5 (250) (255) (637)
Retained loss for the period (455) (181) (282)
(Loss)/earnings per share - basic 6 (0.81p) 0.29p 1.39p
Earnings per share excluding goodwill amortisation 6 0.17p 1.41p 3.62p
(Loss)/earnings per share - diluted 6 (0.81p) 0.29p 1.40p
Earnings per share excluding goodwill amortisation 6 0.17p 1.41p 3.62p
* The results for 30 June 2001 have been restated in accordance with the introduction of FRS 19 (Accounting for
Deferred Taxation)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Unaudited Unaudited Audited
half year to half year to year to
30 June 2002 30 June 2001 31 Dec 2001
£000 £000 £000
(Loss)/profit on ordinary activities after taxation (205) 75 355
(Loss)/gain on foreign currency translation (157) 45 13
Total recognised gains and losses relating to the period (362) 120 368
Prior year adjustment - 326 326
Total gains and losses recognised (362) 446 694
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
30 June 2002 30 June 2001 31 Dec 2001
Restated
£000 £000 £000
Fixed assets
Tangible assets 2,408 2,835 2,568
Intangible assets:
- goodwill 3,840 5,099 4,912
- other 44 120 42
6,292 8,054 7,522
Current assets
Stocks 350 394 347
Debtors - due within one year 9,329 10,084 11,623
- due after one year 324 325 324
Cash at bank and in hand 2,223 1,732 2,226
12,226 12,535 14,520
Creditors - amounts falling due within one year (7,737) (8,814) (9,670)
Net current assets 4,489 3,721 4,850
Total assets less current liabilities 10,781 11,775 12,372
Creditors - amounts falling due after more than one year (3,716) (3,014) (3,736)
Net assets 7,065 8,761 8,636
Capital and reserves
Called up share capital 500 509 510
Share premium 3,707 3,698 3,705
Merger reserve 945 1,896 1,896
Profit and loss account 1,913 2,658 2,525
Shareholders' funds - equity interests 7,065 8,761 8,636
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
30 June 2002 30 June 2001 31 Dec 2001
£000 £000 £000
Net cash inflow from operating activities 856 69 2,692
Returns on investments and servicing of finance (85) (70) (254)
Taxation paid (121) (123) (1,164)
Capital expenditure (294) (355) (827)
Acquisition - (229) (229)
Equity dividends paid (382) (382) (637)
Cash outflow before financing (26) (1,090) (419)
Financing (3) (17) 9
Decrease in cash in the period (29) (1,107) (410)
Notes to the interim results
1. Basis of preparation
The unaudited results continue to be prepared in accordance with the accounting
policies set out in the financial statements for the year ended 31 December
2001.
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 year ended 31 December 2001, upon which the auditors gave an
unqualified opinion, have been delivered to the Registrar of Companies.
2. Segmental information
Turnover and operating (loss)/profit
Unaudited half year to Unaudited half year to Audited year to
30 June 2002 30 June 2001 31 Dec 2001
Turnover Operating Turnover Operating Turnover Operating
Profit/(loss) Profit/(loss) Profit/(loss)
Division £000 £000 £000 £000 £000 £000
Professional
Business
Services 12,756 389 12,067 619 25,182 2,104
Information
Systems and
Services 8,716 (490) 9,195 (176) 18,651 (614)
Total 21,472 (101) 21,262 443 43,833 1,490
The £490,000 (2001: £176,000) operating loss under Information Systems and
Services for the six months ended 30 June 2002 is after charging goodwill
amortisation of £248,000 (2001: £283,000).
Turnover by origin
Unaudited half year to Unaudited half year to Audited year to
30 June 2002 30 June 2001 31 Dec 2001
Total Professional Information Total Professional Information Total Professional Information
Business Systems Business Systems Business Systems
Services and Services and Services and
Services Services Services
£000 £000 £000 £000 £000 £000 £000 £000 £000
Europe 21,149 12,751 8,398 20,700 12,067 8,633 42,928 25,175 17,753
Rest of
the
World 323 5 318 562 - 562 905 7 898
Total 21,472 12,756 8,716 21,262 12,067 9,195 43,833 25,182 18,651
3. Particulars of employees and staff costs
Half year to Half year to Year to
30 June 2002 30 June 2001 31 Dec 2001
The average number of people employed by the Group (including 684 705 652
directors)
Their aggregate remuneration (£000) 11,148 10,711 20,771
4. Taxation
The tax charge for the six months has been based on the estimated effective tax
rate for the year to 31 December 2001 of 42%. A deferred tax asset of £324,000
was recognised at 31 December 2001 and there has been no material change in the
position at 30 June 2002 (30 June 2001: £325,000). There are no material
deferred tax liabilities in the current or preceding period and, as a result, no
provisions have been made.
5. Dividend
The dividend of 1p per share will be payable to shareholders on the record on 1
November 2002. The ex-dividend date will be 30 October 2002. The dividend will
be paid on 29 November 2002.
6. Earnings per share
Half year to Half year to Year to
30 June 2002 30 June 2001 31 Dec 2001
Earnings per share - basic
(Loss)/profit attributable to shareholders after goodwill (205) 74 355
amortisation (£000)
Profit attributable to shareholders before goodwill amortisation 43 357 921
(£000)
Average number of ordinary shares of 2p each in issue during the 25,450,443 25,329,684 25,471,510
period
Earnings per share - fully diluted
(Loss)/profit attributable to shareholders after goodwill (205) 74 355
amortisation (£000)
Profit attributable to shareholders before goodwill amortisation 43 357 921
(£000)
Average number of ordinary shares of 2p each in issue during the 25,221,758 25,376,127 25,408,793
period after allowing for the exercise of outstanding share options
7. Goodwill
Goodwill and the merger reserve have been reduced as a result of the vendors of
Group Timeless SA (purchased in March 2000) surrendering 499,030 ordinary shares
of £0.02 (2% of the issued share capital) amounting to £960,633 of the original
purchase consideration as a final adjustment under the sale and purchase
agreement.
8. Interim report
Copies of the interim report are available from Christie Group plc, 50 Victoria
Street, London SW1H 0NW.
Professional Business Services
Business sales and valuations, quality assurance and improvement, financial
services
Christie & Co Christie First Pinders Quest for Quality
The leading firm of The market leader in finance The UK's leading independent Specialises in providing
independent surveyors, and insurance for the specialist business a full range of
valuers and agents leisure, care and retail appraisal company, consultancy services for
specialising in the sectors. Services include undertaking valuations, the long-term care
leisure, care and retail finance for business purchase consultancy and professional industry. Quest for
sectors. International or re-financing arranged in services for a broad range Quality has contracts
operations based in conjunction with major of clients in the leisure, with clients in both the
London, Paris, Frankfurt, financial institutions, and care and retail sectors. private and
and Barcelona. Offices tailored insurance schemes. Web sites: www.pinders.co.uk 'not-for-profit'
throughout the UK with Web site: and www.pinder-pack.com sectors.
valuation and agency www.christiefirst.com
teams focused on its key
sectors.
Web site: www.christie.com
Information Systems and Services
EPoS and head office systems, stock and inventory control
VcsTimeless Hospitality VcsTimeless Retail Venners
Specialists in leisure and hospitality Specialists in enterprise management Leading supplier of stocktaking
(including cinemas, hotels, and (ERP) in retail (including the and inventory services to the
restaurants) with particular emphasis fashion, sports and speciality leisure and retail sectors.
on providing touchscreen and kiosk sectors). The software controls the Proprietary software and
solutions to customers business process from manufacturing up-to-date technology enables
internationally. Solutions include through to distribution and point of on-site problem investigation and
EPoS, stock control, head office, and sale. direct provision of data to
ticketing software. Web site: www.vcstimeless.fr clients' management information
Web site: www.vcstimeless.com systems.
Web site: www.venners.com
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