Interim Results for six months ended 30 June 2017

RNS Number : 9608Q
Christie Group PLC
18 September 2017
 

18 September 2017


Christie Group plc
Interim Results for the six months ended 30 June 2017


 


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 announce its Interim Results for the six months ended 30 June 2017.

 

Key points:

 

·      First half revenues up 10.6% to £34.9m (2016: £31.6m)

·      First-half operating profit before exceptional items of £1.0m (2016: operating loss of £0.9m)

·      Basic earnings per share of 1.49p per share (2016: Negative 4.95p per share)

·      Interim dividend maintained at 1.0p per share (2016: 1.0p per share)

·      Professional Business Services revenues up 17.7% to £19.3m (2016: £16.4m)

·      Stocktaking and Inventory Systems and Services revenues up 2.9% to £15.6m (2016: £15.2m)

·      UK transactional activity has recovered, with contributions from across our sectors

·      Lender market remains positive and continues to diversify

 

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

"We are pleased to report an encouraging first-half performance, with strong growth. Business buyers have been undeterred by political events and our sector-specialist knowledge and services are in demand. We remain optimistic for our full year prospects."


 

 

Enquiries:

 

Christie Group plc

 

David Rugg

Chief Executive

020 7227 0707

 

 

Daniel Prickett

Chief Financial Officer

 

020 7227 0700

Panmure Gordon (UK) Limited

Dominic Morley / Charles Leigh-Pemberton

Nominated Adviser & Broker

 



020 7886 2980


Notes to Editors:

Christie Group plc, quoted on AIM, is a leading professional business services group with 42 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.

 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

 

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






 

CHAIRMAN'S STATEMENT

 

As anticipated in my AGM statement in June, our first-half result was a material improvement over the corresponding period in 2016, further supporting our view that last year was adversely affected in the run up to the EU Referendum. Reflecting this recovery, we achieved an operating profit before exceptional items of £1.0 million (2016: £0.9m operating loss) from revenue of £34.9 million (2016: £31.6m).  In the UK, neither the EU Referendum nor the General Election outcome have deterred business buyers. Indeed, this first-half result coupled with the stronger second-half we delivered in 2016, equates to an operating profit before exceptional items over that twelve month period of £3.0m.

 

Stock & Inventory Systems & Services

In Germany, our retail stocktaking operation Orridge, added counts for Fressnapf, Hugo Boss and Amor. We have also agreed trials for four additional retailers for work in 2018, while our new sales initiative in France has been successful in securing work for Fremaux Delorme and trials with six retailers for work both in France and Belgium. Across our European operations, we are rolling out our UK-style of bonus schemes to boost count rates whilst maintaining accuracy.

 

In the UK we have welcomed Musto, Habitat, Tate Gallery, Goulds Departments Stores and Trotters School Uniform Warehouse as clients. We are working with two other major retailers to provide our services, although with systems adaptation requirements these should be to the benefit of next year. All high street client contracts expiring in the period were successfully renewed.

 

Our Pharmacy division is achieving incremental gains in a sector where ownership remains diversified.  Our Supply Chain service, whilst hitherto operating in distribution centres, has been successful in adding "in good faith receiving" checks to food retailers sites whilst we are concurrently on site for our routine stocktaking operations. This creates an integrated and cost effective solution. Evolving further from its origins and reflecting our knowledge in the hospitality sector, our Supply Chain work has also moved beyond pure retail with a new assignment to focus on food and drink supplies.

 

Continuing in the licence sector with Venners, we won stocktaking for Amber Taverns and for Milton Group, a portfolio of 73 pubs just purchased from Mitchell & Butlers.  For our Health & Safety services we added Cotswold Inns and Hotels and Yummy Pub Company.

 

Early adoption of evolving and emerging third party software and technology is vital. As Venners' Clients adopt newer more modern systems that introduce a greater level of control and analysis into their businesses, we too gain vital exposure to a working knowledge of such systems. We adopt them into our working practices and integrate them into our own technology infrastructure.

 

Trevor Heyburn, the Managing Director of Venners, has decided to take a well-earned retirement after over forty years with the firm. I am pleased to advise we have been able to appoint our current Client Services Director, Steve Mayne, to the role of Managing Director and have created a new role of Deputy M.D. to further strengthen Venners' solid management team.

 

Vennersys, our cloud-based e-ticketing and customer management system for visitor attractions, reports a healthy outlook for growth. Scottish Seabird Centre, Greensand Trust, Dynamic Earth and Active Tameside are all recently welcomed as users.

 


Professional Business Services

We have enjoyed a strong first-half performance by our existing UK regional office network. Owning and operating one's own business remains an aspiration for many. Our coordinated sector-specialist teams were busy assisting corporate operators to either build or rationalise their portfolios across both branded and unbranded assets.

In Hotels, we've been busy on regional brokerage transactions. Branded examples included the sale of Holiday Inn Expresses in Tamworth and Ramsgate, the Holiday Inn Coventry South and a number of Mercures including Hatfield, Hull and Bowdon, Cheshire. Most recently we have sold on behalf of Principal Hotel Group, Project Prime, a group of five regional hotels to be operated by a major FTSE 100 Plc. Remaining in the UK hospitality arena in the Pub sector, we have seen most of the activity coming from established PubCos seeking to expand their estates.

 

Differing from the UK, hotel agency completions in our mainland Europe operations were subdued in the period. However momentum has begun to gather pace. Completions nonetheless included two branded hotels - the Lindner Hotel Much in Cologne and the Steigenberger in Linz - as well as the Best Western L'Artist Hotel in the Loire Valley and the Hotel Live & Dream in Barcelona.

 

The Care team have been continuing with their ongoing work of disposal of non-core assets for Four Seasons, including the sale of six homes based across the North East and South Yorkshire to Hill Care. We also acted on behalf of LRH to sell thirteen homes in a deal worth over £70m and completed three deals for specialist supported living provider National Care Group. In one of the largest transactions of the year, Christie & Co sold the Elderly Care Division of Embrace Group - consisting of thirty five homes across England and Scotland - to Sanctuary Care Group.

 

Following on from an excellent 2016, our Childcare and Education team facilitated multiple single-asset transactions including providing buy-side advice to ICP Nurseries on their acquisition of Little Monkeys Nurseries, helping them to add to their expanding portfolio of six settings across London and the South East.

 

In the Medical sector, The Department of Health's funding cuts to Pharmacy remuneration, introduced from September 2016, have to date had little effect on market appetite. Sales activity increased compared with the first half in 2016, and saw our Medical team broker the sale of Patrick Dental Group in Glasgow, made up of two high quality Dental Practices comprising nine surgeries in total.

 

Active on the ground in fifteen European markets, the Valuations and Consultancy team have undertaken a number of large (and small) assignments across both the UK and Europe, leveraging the knowledge and experience of our teams. The Care Consultancy Team launched its renowned Adult Social Care Report in July which this year focused on funding, staffing and bed blocking. The report has already generated extensive interest and media coverage including The Sunday Times, The Guardian and all key trade publications. The Hotels Consultancy team is busy working on confidential due diligence projects in the UK and across Europe.

 

Pinders' own excellence in service provision was recognised by Lloyds Bank, with the award of 'South East Valuer of the Year'. As well as valuing over £1bn worth of student accommodation in the period, its Building Services division saw significant progression in the learning difficulties sector, with portfolio instructions relating to the G4S, Swanton Care and Danshell groups.   

 

We have decided to create a Financial Services Division to focus the provision of our existing Finance and Insurance services and to seek to make available a wider product offering to our existing client base, as well as the external inflows from our strengthening Christie Finance and Christie Insurance brands. The new division will come into effect once we have obtained the necessary regulatory approvals.

 

There has been no let up in the continuing diversity of the lender market - new entrants continue to appear. As a result, there has been no detriment to the availability of Commercial Finance for SME's seen post-Brexit or in the run up to the General Election. Expanding its own product offering in light of this positive lending landscape, Christie Finance will launch its new Unsecured Finance option in Q4.

 

 

 

Dividend

The Board has declared an interim dividend of 1.0p per share (2016: 1.0p per share) which will be paid on 20 October 2017 to shareholders on the register on 29 September 2017.

 

Outlook

Assuming relatively benign conditions continue to prevail overall, the Group is on track for the year with the prospect for further growth into 2018.

 

Board changes

This is my last statement to you as Chairman, as I retire today.

 

I have enjoyed enormously my 43 years with the business and I am immensely proud to have seen it grow from a company in the South of England into the international group of companies which it is today. Growth within the Group has always been driven by the quality of service provided to our customers and, in my view, this has never been stronger than it is today. I would like to thank all our talented staff, both current and past, for their unbridled enthusiasm, energy and support over the years. I am very grateful to you all.

 

It has been a great honour to serve as the first Chairman of our Group since its flotation in 1988 and I am pleased to advise that my long standing colleague and friend David Rugg has agreed to become Chairman, as well as continuing his role as Chief Executive. In support of this move our current Chief Financial Officer Daniel Prickett has moved to Chief Operating Officer and Simon Hawkins, currently finance director of Christie & Co, has been appointed Group Finance Director.

 

My enthusiasm and belief in the companies within Christie Group remains undiminished and I will be staying in close contact as both the major shareholder and in my honorary role as Group President. I am also pleased to announce that my son, Hwfa Gwyn, has been invited to join your board, thereby ensuring our family's ongoing involvement in the performance and direction of the Group.

 

Lastly I thank you, our shareholders, including many longstanding holders, for their loyal support of our Group. I think that the Group is excellently positioned within its various market sectors and so trust that you will continue to support it on the next phase of its journey.

 

 

 

Philip Gwyn

Chairman

 



Consolidated interim income statement

 

 

 

 

 

Note

Half year to 30 June

2017

£'000

(Unaudited)

Half year to 30 June

2016

£'000

(Unaudited)

Year ended  31 December 2016

£'000


Revenue

4

34,925

31,575

64,488


Employee benefit expenses


(23,733)

(23,260)

(45,866)




11,192

8,315

18,622


Depreciation and amortisation


(415)

(352)

(757)


Impairment charge


-

-

(194)


Other operating expenses


(9,749)

(8,867)

(16,651)


Operating profit / (loss) before exceptional items


1,028

(904)

1,020


Exceptional items


-

-

1,328


Operating profit / (loss) after exceptional items

4

1,028

(904)

2,348


Finance costs


(63)

(47)

(111)


Finance income


2

-

-


Pension scheme finance costs


(235)

(216)

(432)


Total finance charge


(296)

(263)

(543)


Profit / (loss) before tax


732

(1,167)

1,805


Taxation

5

(376)

(202)

(516)


Profit / (loss) for the period after tax

356

(1,369)

1,289


All amounts derive from continuing operations. 

 

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

Equity shareholders of the parent


391

(1,301)

1,405

Non-Controlling interest


(35)

(68)

(116)



356

(1,369)

1,289

   

 Earnings per share attributable to equity holders - pence

- Basic

6

1.49

(4.95)

5.35

- Fully diluted

6

1.47

(4.95)

5.25

 



 

Consolidated interim statement of comprehensive income



 

 

 

 

 

 

Half year to 30 June

2017

£'000

(Unaudited)

Half year to 30 June

2016

£'000

(Unaudited)

Year ended  31 December 2016

£'000


Profit / (loss) for the period after tax


356

(1,369)

1,289








Other comprehensive (losses) / income:












Items that may be reclassified subsequently to profit or loss:






Exchange differences on translating foreign operations


2

143

                      184


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


2

143

184








Items that will not be reclassified to profit or loss:






Re-measurement (losses) / gains on defined benefit plans


(378)

(3,046)

          (8,054)


Income tax effect


64

459

           1,011


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


(314)

(2,587)

          (7,043)


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


(312)

(2,444)

          (6,859)


 

Total comprehensive income / (losses) for the period


44

(3,813)

(5,570)

 

Total comprehensive income / (losses) attributable to:

Equity shareholders of the parent


79

(3,745)

(5,454)

Non-Controlling interest


(35)

(68)

(116)



44

(3,813)

(5,570)

 

 



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 2016 (Unaudited)

Balance at 1 January 2016

531

5,207

472

(9,073)

(454)

(3,317)

Profit / (loss) for the period after tax

-

-

-

(1,301)

(68)

(1,369)

Items that will not be reclassified subsequently to profit or loss

 

-

-

-

(2,587)

-

(2,587)

Items that may be reclassified subsequently to profit or loss

 

-

-

143

-

-

143

Total comprehensive (losses) / income for the period

-

-

143

(3,888)

(68)

(3,813)

Movement in respect of employee share scheme

-

117

-

-

-

117

Employee share option scheme:







- value of services provided

-

2

-

-

-

2

Dividends payable

-

-

-

(394)

-

(394)

Balance at 30 June 2016

531

5,326

615

(13,355)

(522)

(7,405)








Year ended 31 December 2016 (Audited)

Balance at 1 January 2016

531

5,207

472

(9,073)

(454)

(3,317)

Profit / (loss) for the year after tax

-

-

-

1,405

(116)

1,289

Items that will not be reclassified subsequently to profit or loss

-

-

-

(7,043)

-

(7,043)

Items that may be reclassified subsequently to profit or loss

-

-

184

-

-

184

Total comprehensive (losses) / income for the year

-

-

184

(5,638)

(116)

(5,570)

Movement in respect of employee share scheme

 

        -

20

-

-

 

-

20

Employee share option scheme:







-value of services provided

-

238

-

-

-

238

Acquisition of non controlling interest

 

-

-

-

(241)

241

-

Dividends paid

-

-

-

(657)

-

(657)

Balance at 31 December 2016

531

5,465

656

(15,609)

(329)

(9,286)








Half year to 30 June 2017 (Unaudited)







 

Balance at 1 January 2017

531

5,465

656

(15,609)

(329)

(9,286)

 

Profit / (loss) for the period after tax

-

-

-

391

(35)

356

 

Items that will not be reclassified subsequently to profit or loss

 

-

-

-

(314)

-

(314)

 

Items that may be reclassified subsequently to profit or loss

 

-

-

2

-

-

2

 

Total comprehensive income / (losses) for the period

-

-

2

77

(35)

44

 

Movement in respect of employee share scheme

-

33

-

-

-

33

 

Employee share option scheme:







 

- value of services provided

-

100

-

-

-

100

 

Dividends payable

-

-

-

(398)

-

(398)

 

Balance at 30 June 2017

531

5,598

658

(15,930)

(364)

(9,507)

 

Consolidated interim statement of financial position


 

 

 

Note

At 30 June 2017

£'000

(Unaudited)

At 30 June 2016

£'000

(Unaudited)

At 31 December 2016

£'000

Assets





Non-current assets





Intangible assets - Goodwill


1,837

1,790

1,812

Intangible assets - Other


1,353

1,226

1,241

Property, plant and equipment


1,536

1,251

1,468

Deferred tax assets


3,781

3,613

3,901

Available-for-sale financial assets


635

635

635

Other receivables


451

451

451



9,593

8,966

9,508

Current assets





Inventories


16

8

29

Trade and other receivables


14,568

12,913

13,226

Current tax assets


178

243

357

Cash and cash equivalents

11

3,385

2,348

1,637



18,147

15,512

15,249

Total assets


27,740

24,478

24,757

Equity





Capital and reserves attributable to the Company's equity holders



Share capital

8

531

531

531

Fair value and other reserves


5,598

5,326

5,465

Cumulative translation reserve


658

615

656

Retained earnings


(15,930)

(13,355)

(15,609)



(9,143)

(6,883)

(8,957)

Non-Controlling interest


(364)

(522)

(329)

Total equity


(9,507)

(7,405)

(9,286)

Liabilities





Non-current liabilities





Trade and other payables


-

-

249

Retirement benefit obligations

9

18,167

14,721

18,106

Borrowings


-

3

1

Provisions


218

281

167



18,385

15,005

18,523

Current liabilities





Trade and other payables


10,891

9,438

8,883

Current tax liabilities


335

73

152

Borrowings


6,807

6,479

5,624

Provisions


829

888

861



18,862

16,878

15,520

Total liabilities


37,247

31,883

34,043

Total equity and liabilities


27,740

24,478

24,757


 



 

Consolidated interim statement of cash flows


 

 

 

 

Note

Half year to 30 June 2017

£'000

(Unaudited)

Half year to 30 June 2016

£'000

(Unaudited)

 

Year ended

31 December 2016

£'000

Cash flow from operating activities





Cash generated from / (used in) operations

10

1,202

(2,735)

(1,016)

Interest paid


(63)

(47)

(111)

Tax paid


(23)

(129)

(213)

Net cash generated from / (used in) operating activities


1,116

(2,911)

(1,340)

Cash flow from investing activities





Purchase of property, plant and equipment (PPE)


(295)

(373)

(855)

Proceeds from sale of PPE


-

14

16

Interest received


2

-

-

Intangible assets expenditure


(268)

(297)

(453)

Net cash used in investing activities


(561)

(656)

(1,292)

Cash flow from financing activities





Proceeds from invoice discounting


779

1,158

363

Payment of finance lease liabilities


(1)

(4)

(6)

Dividends paid


-

-

(657)

Net cash generated from / (used in) financing activities


778

1,154

(300)

Net increase / (decrease) in cash and cash equivalents


1,333

(2,413)

(2,932)

Cash and cash equivalents at beginning of period


(2,933)

17

17

Exchange gain / (losses) on Euro bank accounts


9

107

(18)

Cash and cash equivalents at end of period

11

(1,591)

(2,289)

(2,933)


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 2017. 

 

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2016, except for those noted below and except for the adoption of new standards and interpretations effective as of 1 January 2017. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

 

A number of amendments apply for the first time in 2016. 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 year ended 31 December 2016 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 2016 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 2017 and 30 June 2016 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 2016.



 

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 2017 are as follows:


 

Professional Business Services

£'000

 

Stock & Inventory Systems & Services

£'000

 

 

Other

£'000

 

 

Group

£'000

Total gross segment revenue

19,351

15,628

1,451

36,430

Inter-segment revenue

(54)

-

(1,451)

(1,505)

Revenue

19,297

15,628

-

34,925

Operating profit / (loss)

1,408

(558)

178

1,028

Net finance charge




(296)

Profit before tax




732

Taxation




(376)

Profit for the period after tax



356

 

The reportable segment results for continuing operations for the period ended 30 June 2016 are as follows:


 

Professional Business Services

£'000

 

Stock & Inventory Systems & Services

£'000

 

 

Other

£'000

 

 

Group

£'000

Total gross segment revenue

16,440

15,188

1,538

33,166

Inter-segment revenue

(53)

-

(1,538)

(1,591)

Revenue

16,387

15,188

-

31,575

Operating loss

(414)

(116)

(374)

(904)

Net finance charge




(263)

Loss before tax




(1,167)

Taxation




(202)

Loss for the period after tax



(1,369)

 

The reportable segment results for continuing operations for the year ended 31 December 2016 are as follows:

 

 

Professional Business Services

£'000

Stock & Inventory Systems &  Services

£'000

Other

£'000

Group

£'000

Total gross segment sales

35,139

29,455

3,533

68,127

Inter-segment sales

(106)

-

(3,533)

(3,639)

Revenue

35,033

29,455

-

64,488

Operating profit/(loss) before exceptional items

1,407

(165)

(222)

1,020

Exceptional items

973

286

69

1,328

Operating profit/(loss) after exceptional items

2,380

121

(153)

2,348

Finance costs

 

 

 

(543)

Profit before tax

 

 

 

1,805

Taxation

 

 

 

(516)

Profit for the year after tax




1,289

 

The Group is not reliant on any key customers.


5. Taxation

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 before tax differs from the theoretical amount that would arise using the standard rate of corporation tax in the UK of 19%, based on the Group's profit before tax and before pension scheme finance costs, due to £87,000 arising from the reduction in the value of the brought forward deferred tax asset and a further £85,000 arising from other movements in the deferred tax asset.

6. 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. Where a loss for the year has been recognised the share options are considered anti-dilutive and so not included in the calculation of diluted earnings per share.

 

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 2017

£'000

Half year to

30 June 2016

£'000

Year ended

31 December 2016

£'000

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

391

(1,301)

1,405

 

 

 

30 June 2017

Thousands

30 June 2016

Thousands

31 December 2016

   Thousands

Weighted average number of ordinary shares in issue

26,351

26,279

26,295

Adjustment for share options

344

-

472

Weighted average number of ordinary shares for diluted earnings per share

26,695

26,279

26,767

 

 

30 June 2017

Pence

30 June 2016

Pence

 

Pence

Basic earnings per share

1.49

(4.95)

5.35

Fully diluted earnings per share

1.47

5.25

 

7. Dividends

 

A final dividend in respect of the year ended 31 December 2016 of 1.5p per share, amounting to a total dividend of £398,000, was approved and paid to the Christie Group plc registrar on 30 June 2017.  The funds were transferred to shareholders on 7 July 2017.

 

An interim dividend in respect of 2017 of 1.0p per share, amounting to a dividend of £265,000, was declared by the directors at their meeting on 13 September 2017. These financial statements do not reflect this dividend payable.

The dividend of 1.0p per share will be payable to shareholders on the record on 29 September 2017. The ex-dividend date will be 28 September 2017. The dividend will be paid on 20 October 2017.

8. Share capital

 

30 June 2017

30 June 2016

31 December 2016

Ordinary shares of 2p each

Number

£'000

Number

£'000

Number

£'000

Allotted and fully paid:

 

 

 

 

 

 

At beginning and 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.

 

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 2017 the total payments by the Group to the ESOP to finance the purchase of ordinary shares were £2,639,000 (30 June 2016: £2,639,000; 31 December 2016: £2,639,000). This figure is inclusive of shares purchased and subsequently issued to satisfy employee share awards. The market value at 30 June 2017 of the ordinary shares held in the ESOP was £129,000 (30 June 2016: £203,000; 31 December 2016: £151,000). The investment in own shares represents 139,000 shares (30 June 2016: 247,000; 31 December 2016: 182,000) with a nominal value of 2p each.

9. Retirement benefit obligations

The obligation outstanding of £18,167,000 (30 June 2016: £14,721,000; 31 December 2016: £18,106,000) includes £965,000 (30 June 2016: £962,000; 31 December 2016: £990,000) payable to David Rugg by Christie Group plc.

 

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 2017 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 2017

£'000

Half year to 

30 June 2016

£'000

Year ended

31 December 2016

£'000

Beginning of the period

18,106

11,958

11,958

Expenses included in the employee benefit expense

219

303

587

Contributions paid

(746)

(778)

(1,547)

Finance costs

235

216

432

Pension paid

(25)

(24)

(50)

Past service cost

-

-

(1,328)

Actuarial losses / (gains)  recognised

378

3,046

8,054

End of the period

18,167

14,721

18,106

 


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

 

Half year to

 30 June 2017

£'000

Half year to 

30 June 2016

£'000

Year ended

31 December 2016

£'000

Current service cost

219

303

587

Total included in employee benefit expenses

219

303

587

Past service cost

-

-

(1,328)

Total included in exceptional items

-

-

(1,328)

Net interest cost

235

216

432

Total included in finance costs

216

432

Actuarial (losses) / gains

(378)

(3,046)

(8,054)

Total included in other comprehensive (losses) / income

(378)

(3,046)

(8,054)

 

The principal actuarial assumptions used were as follows:

 

Half year to 30 June 2017

%

 Half year to 30 June 2016

%

 Year ended  31 December  2016

%

Inflation rate

2.80

2.70

2.80

Discount rate

3.30

3.10

3.30

Future salary increases

1.00 - 2.00

2.70

1.00-2.00

Future pension increases

2.30 - 3.50

1.90 - 2.70

2.30-3.50

 

Assumptions regarding future mortality experience were consistent with those disclosed in the financial statements for the year ended 31 December 2016.

10.  Note to the cash flow statement

Cash generated from / (used in) operations


Half year to

 30 June 2017

£'000

Half year to

30 June 2016

£'000

Year ended

31 December 2016

£'000

Continuing operations




Profit / (loss) for the period

356

(1,369)

1,289

Adjustments for:




- Taxation

376

202

516

- Finance costs

61

47

111

- Past services cost

-

-

(1,328)

- Depreciation

258

216

480

- Amortisation of intangible assets

157

136

277

- Profit on sale of property, plant and equipment

-

(9)

(10)

- Foreign currency translation

(25)

(102)

18

- Increase / (decrease) in provisions

19

(738)

(879)

- Movement in share option charge

117

117

238

- Retirement benefits

(317)

(283)

(578)

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




- Increase in inventories

13

(2)

(23)

- Increase in trade and other receivables

(1,322)

(919)

(1,203)

- Increase / (decrease) in trade and other payables

1,509

(31)

76

Cash generated from / (used in)  operations

1,202

(2,735)

(1,016)

 


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


Half year to

 30 June 2017

£'000

Half year to

30 June 2016

£'000

Year ended

31 December 2016

£'000

Cash and cash equivalents

3,385

2,348

1,637

Bank overdrafts

(4,976)

(4,637)

(4,570)


(1,591)

(2,289)

(2,933)

12. Related-party transactions

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

 

During the period rentals of £393,000 (30 June 2016: £164,000; 31 December 2016: £287,000) 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.

13. Publication of Interim Report

The 2017 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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