Interim Results

Christie Group PLC 09 September 2003 CHRISTIE GROUP PLC INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2003 Highlights • Group turnover up by 47% to £31.6 million (2002: £21.5 million) • Trading profit up to £1.1 million (2002: £147,000) • Interim dividend maintained at 1p Philip Gwyn, Chairman of Christie Group, said, 'We are delighted to announce such strong results in a challenging market with growth driven by existing businesses as well by as our acquisition of Orridge at the end of 2002. ' Enquiries: Christie Group +44 20 7227 0707 Philip Gwyn, Chairman David Rugg, Chief Executive Robert Zenker, Finance Director www.christiegroup.com Brunswick +44 20 7404 5959 Alison Howard Chairman's Interim Statement to 30 June 2003 The half year saw Group turnover grow by 47% to £31.6 million as against the previous comparable half year (£21.5 million). The trading profit amounted to £1.1 million as against £147,000. The interim dividend is maintained at 1p per share. The components of the sales growth came as to 26% from organic growth and 21% from our acquisition of the retail stocktaking business, Orridge. Our Professional Business Services activities which embrace Christie & Co (business sales and valuations), Christie First (financial services) and Pinders (valuers to central lenders and the finance broker market) saw an overall 24% sales growth with Christie First and Pinders showing a strong 54% and 45% sales growth respectively. Our European offices traded with diminished losses compared with the previous year, with the Spanish office moving into profit. Both Germany and France have had management reorganisations and we expect to see further improvement in the second half of the year. The retail software solutions business, VcsTimeless, traded profitably in France under its new management. As part of its expansion strategy, it has established new offices in Italy and the UK in addition to those in France and Spain. These will necessarily depress results in the short term but form an essential part of future growth. VcsTimeless Hospitality, which is focused on leisure and entertainment, saw diminished losses. Overall, the software business saw 54% sales gains. The retail stocktaking business of Orridge was acquired just before the start of the year. As planned, we have invested in new radio-frequency stocktaking systems and our proven proprietary software, removed surplus property overhead and renegotiated operating leases, thereby reducing the costs. We have strengthened the management team and improved efficiency: the business is now on a sound footing. Taken together with Venners, which is principally involved in licensed trade stocktaking, this represents a near doubling of the overall business. Stock and Inventory Services can now be seen as a distinct Group activity. We continue to be committed to our strategy of developing these coherent platforms and, subject to market conditions, feel confident of prospects for the full year. CONSOLIDATED PROFIT AND LOSS ACCOUNT Unaudited Unaudited Audited half year to half year to year to 30 June 2003 30 June 2002 31 Dec 2002 Notes £000 £000 £000 Turnover 2 31,617 21,472 46,473 Net operating charges (30,522) (21,325) (43,859) Trading profit 1,095 147 2,614 Goodwill amortisation (267) (248) (497) Operating profit/(loss) 828 (101) 2,117 Finance charges net (96) (76) (164) Profit/(loss) on ordinary activities before taxation 732 (177) 1,953 Tax on profit/(loss) on ordinary activities 4 (397) (28) (1,182) Profit/(loss) on ordinary activities after taxation 335 (205) 771 Dividends paid and proposed 5 (244) (250) (625) Retained profit/(loss) for the period 91 (455) 146 Earnings/(loss) per share - basic 6 1.37p (0.81p) 3.06p - basic before goodwill amortisation 6 2.46p 0.17p 5.03p - diluted 6 1.37p (0.81p) 3.08p STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Unaudited Unaudited Audited half year to half year to year to 30 June 2003 30 June 2002 31 Dec 2002 £000 £000 £000 Profit/(loss) on ordinary activities after taxation 335 (205) 771 Loss on foreign currency translation (26) (157) (146) Total gains and losses recognised 309 (362) 625 CONSOLIDATED BALANCE SHEET Unaudited Unaudited Audited 30 June 2003 30 June 2002 31 Dec 2002 £000 £000 £000 Fixed assets Tangible assets 3,122 2,408 2,749 Investments 278 - 278 Intangible assets: - goodwill 4,235 3,840 4,362 - other 42 44 38 7,677 6,292 7,427 Current assets Stocks 241 350 336 Debtors - due within one year 14,655 9,329 10,148 - due after one year 283 324 283 Cash at bank and in hand 1,563 2,223 3,051 16,742 12,226 13,818 Creditors - amounts falling due within one year (12,980) (7,737) (10,098) Net current assets 3,762 4,489 3,720 Total assets less current liabilities 11,439 10,781 11,147 Creditors - amounts falling due after more than one year (3,915) (3,716) (3,687) Net assets 7,524 7,065 7,460 Capital and reserves Called up share capital 490 500 490 Share premium 3,718 3,707 3,718 Merger reserve 945 945 945 Capital redemption reserve 10 - 10 Profit and loss account 2,354 1,913 2,289 7,517 7,065 7,452 Minority interest 7 - 8 Shareholders' funds - equity interests 7,524 7,065 7,460 CONSOLIDATED CASH FLOW STATEMENT Unaudited Unaudited Audited 30 June 2003 30 June 2002 31 Dec 2002 £000 £000 £000 Net cash (outflow)/inflow from operating activities (905) 856 4,309 Returns on investments and servicing of finance (96) (85) (216) Taxation paid (795) (121) (686) Capital expenditure (520) (294) (892) Acquisition - - (569) Equity dividends received/(paid) 1 (382) (633) Cash (outflow)/inflow before financing (2,315) (26) 1,313 Financing (99) (3) (521) (Decrease)/increase in cash in the period (2,414) (29) 792 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 2002. 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 2002 upon which the auditors gave an unqualified opinion, have been delivered to the Registrar of Companies. 2. Segmental information Turnover and operating profit/(loss) Unaudited half year to Unaudited half year to Audited year to 30 June 2003 30 June 2002 31 Dec 2002 Turnover Operating Turnover Operating Turnover Operating Profit/(loss) Profit/(loss) Profit/(loss) Division £000 £000 £000 £000 £000 £000 Professional Business 15,794 1,272 12,756 389 28,246 2,653 Services 8,554 *(80) 3,985 392 7,790 601 Stock & Inventory 7,269 **(364) 4,731 (882) 10,437 (1,137) Services Software Solutions Total 31,617 828 21,472 (101) 46,473 2,117 * The operating loss for Stock & Inventory Services includes goodwill amortisation of £19,000 (2002: nil). ** The operating loss for Software Solutions includes goodwill amortisation of £248,000 (2002: £248,000). Turnover by origin Unaudited half year to 30 June 2003 Total Professional Stock & Software Business Inventory Solutions Services Services £000 £000 £000 £000 Europe 31,357 15,794 8,554 7,009 Rest of the World 260 - - 260 Total 31,617 15,794 8,554 7,269 Unaudited half year to 30 June 2002 Total Professional Stock & Software Business Inventory Solutions Services Services £000 £000 £000 £000 Europe 21,149 12,751 3,985 4,413 Rest of the World 323 5 - 318 Total 21,472 12,756 3,985 4,731 Audited year to 31 Dec 2002 Total Professional Stock & Software Business Inventory Solutions Services Services £000 £000 £000 £000 Europe 45,958 28,246 7,790 9,922 Rest of the World 515 - - 515 Total 46,473 28,246 7,790 10,437 3. Particulars of employees and staff costs Half year to Half year to Year to 30 June 2003 30 June 2002 31 Dec 2002 The average number of people employed by the Group (including 1,131 684 818 directors) Their aggregate remuneration (£000) 16,861 11,148 23,865 4. Taxation The tax charge for the six months has been based on the estimated effective tax rate for the year to 31 December 2003 of 39%. A deferred tax asset of £283,000 was recognised at 31 December 2002 and there has been no material change in the position at 30 June 2003 (30 June 2002: £324,000). 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 31 October 2003. The ex-dividend date will be 29 October 2003. The dividend will be paid on 28 November 2003. 6. Earnings per share Half year to Half year to Year to 30 June 2003 30 June 2002 31 Dec 2002 Earnings per share - basic Profit/(loss) attributable to shareholders (£000) 335 (205) 771 Average number of ordinary shares of 2p each in issue during the 24,513,162 25,450,443 25,222,173 period Earnings per share - basic before goodwill amortisation Profit attributable to shareholders before goodwill amortisation (£000) 602 43 1,268 Average number of ordinary shares of 2p each in issue during the 24,513,162 25,450,443 25,222,173 period Earnings per share - diluted Profit/(loss) attributable to shareholders (£000) 335 (205) 771 Average number of ordinary shares of 2p each in issue during the period after allowing for the exercise of outstanding share options 24,378,821 25,221,758 25,014,319 7. Interim report Copies of the interim report are available from Christie Group plc, 50 Victoria Street, London SW1H 0NW. Professional Business Services Christie & Co www.christie.com Christie First www.christiefirst.com Pinders www.pinders.co.uk and www.pinderpack.com The leading firm of independent The market leader in finance and insurance surveyors, valuers and agents for the leisure, care and retail sectors. The UK's leading independent specialising in the leisure, care and Services include finance for business specialist business appraisal retail sectors. International purchase or re-financing arranged in company, undertaking valuations, operations based in London, Paris, conjunction with major financial consultancy and professional Frankfurt, and Barcelona. Offices institutions, and tailored insurance schemes. services for a broad range of throughout the UK with valuation and clients in the leisure, care and agency, development and investment teams retail sectors. focused on its key sectors. Stock & Inventory Services Orridge www.orridge.co.uk Venners www.venners.com Europe's oldest stocktaking company focused on the Leading supplier of stocktaking and inventory services to high street retail sector and having a specialist the leisure sector. Proprietary software and up-to-date pharmacy stocktaking division. Providing a full technology enables on-site problem investigation and range of stocktaking and inventory management direct provision of data to clients' management solutions in all operational environments for a information systems. wide range of clients throughout the UK and Europe. Software Solutions VcsTimeless Hospitality www.vcstimeless.com VcsTimeless Retail Specialists in software for leisure and hospitality www.vcstimeless.com (including cinemas, hotels, pubs and restaurants) Leading specialists in integrated software solutions and with particular emphasis on providing touchscreen related services for the retail industry (including and kiosk solutions to customers internationally. fashion, sports and home improvements) dedicated to Solutions include EPoS, stock control, head office, single and multi-channel retailers in Europe. Solutions and ticketing software. include manufacturing, head office, in-store and retail business intelligence software. This information is provided by RNS The company news service from the London Stock Exchange

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