Interim Results
Christie Group PLC
06 September 2007
CHRISTIE GROUP PLC
6 SEPTEMBER 2007
Interim Results for the six months ended 30 June 2007
Christie Group, a leading business services and software group, today announces
its interim results for the six months ended 30 June 2007.
Highlights
Strong growth in Professional Business Services
Group Operating profit up 37.7% to £4.2 million (2006: £3.1 million)
Revenue up 2.4% to £46.1 million (2006: £45.0 million)
Basic EPS increased by 41.9% to 10.64p (2006: 7.50p)
New Christie + Co office opened in Hamburg
New Orridge operation launched in Holland
Interim dividend increased by 20% to 1.50p (2006: 1.25p)
Philip Gwyn, Chairman, commented:
'This is another solid result. We have increased the interim dividend and the
Board believes there are real prospects for growth in the years ahead.'
Enquiries:
Christie Group 020 7227 0707 David Rugg, Chief Executive
Robert Zenker, Finance Director
Brunswick 020 7404 5959 Ash Spiegelberg
Charles Stanley Securities 020 7149 6000 Philip Davies
(Nominated Adviser)
Note to Editors
Christie Group plc (CTG.L) is quoted on AIM. It is a leading business services
and software group with three business divisions: Professional Business
Services, Software Solutions and Stock & Inventory Services. The three
complementary businesses focus on the leisure, retail and care markets. Christie
Group has 35 offices across Europe - located in the UK as well as in Belgium,
France, Germany, Italy and Spain, and 1 office in Canada.
For more information, please go to: http://www.christiegroup.com/
The 2007 interim statement will be posted to shareholders by the end of
September 2007 and copies will be available at the Company's registered office,
39 Victoria Street, London SW1H 0EU.
Chairman's statement
Half year to 30 June 2007
Christie Group's operating profit for the half year to June 2007 increased 37.7%
to £4.2 million (2006: £3.1 million) on revenue ahead by 2.4%. We achieved an
operating profit margin of 9.2% up from 6.8% in the comparable period. These
results reflect a strong period for corporate M & A and advisory work.
Our interim dividend is increased to 1.5p (2006: 1.25p).
Professional Business Services
Revenue increased by 5.7% to £26.3 million (2006: £24.9 million), converting to
an increased operating profit of £4.8 million (2006: £4.1 million). Individual
business sales in the UK were flat, whilst sales volumes in continental Europe
increased. Corporate transactions remained strong and the demand for our
valuation and advisory services grew. We opened a new Christie + Co office in
Hamburg as planned. We now have a network of five such offices in Germany and
overall nine in Europe.
Our activity included the acquisition of Ma Potters for Tragus in just 16 days,
the acquisition for Moorfield Group of 24 hotels from Macdonald Hotels for circa
£400 million, the sale of Anglian Convenience Stores to the Co-op, portfolio
valuations of Alpha Hospitals and Asquith Nurseries, amongst others, and
multiple pub lettings for Marston's, Mitchells & Butler, Greene King and others.
Internationally our sales included Le Meridien Phoenicia Malta, Maritim Hamburg,
Sofitel Niceand Hotel Misiana in Cadiz.
We moved our insurance brokerage base to the City to bring us close to the main
market for placing business and therefore recruiting staff.
Christie Finance gained authorisation to arrange regulated mortgages.
Software Solutions
Revenue was reduced to £7.3 million (2006: £8.0 million). However, our margin on
sales improved by 9% as we concentrated the business mix on selling our own
software rather than re-selling third party software. This produced an operating
loss reduced by £1.0 million to £0.4 million (2006: £1.4million).
Our major development project, Colombus.next, continues. We invested in new
processes, test automisation and a benchmarking department which measures the
performance and scalability of new modules, a key market differentiator.
A dozen new customers in Spain, the UK and France included Gant, Jon Richard,
Salsa, Coronel Tapiocca and Galerias Wehbe.
Stock & Inventory Services
Revenue increased to £12.5 million (2006: £12.1 million). Profit marked time at
£0.6 million (2006: £0.8 million). New business wins in the retail sector
initially impaired profitability, but these contracts are now performing in line
with margin expectation. Our supply chain optimisation service grew.
Orridge also incurred the initial costs of establishing a permanent base in
Holland. We believe this will enable growth in Holland and free resources in our
Brussels office to concentrate on expanding stocktaking in other regions.
On the hospitality side, clients added included Loch Fyne Restaurants and
Yesteryear Pub Company. Customer and compliance audits included Elior, Shearings
and First Great Western. We completed inventories in Germany, France, Luxembourg
and Spain. In June we launched a new Food Safety Division.
Future Prospects
Building on these strong interims our results for the year should prove
satisfactory. Investment in our Software Solutions division will increase, and
whilst the second half's loss will be greater than that of the first half, we
expect the division to achieve an improvement over the prior year. Our Stock &
Inventory Services business, whilst continuing to expand, historically enjoys
its optimal workload in the first half. Our recent continental openings both
last year and this will contribute to profits in future periods.
Christie Group continues to hold out real prospects for growth in the years
ahead.
Philip Gwyn
Chairman
Consolidated interim income statement
Half year to Half year to Year ended 31
30 June 2007 30 June 2006 December 2006
£'000 £'000 £'000
(Unaudited) (Unaudited)
Note
Revenue 4 46,103 45,018 87,096
Employee benefit expenses (27,551) (27,446) (50,949)
18,552 17,572 36,147
Depreciation and amortisation (643) (639) (1,298)
Other operating expenses (13,690) (13,870) (28,770)
Operating profit 4 4,219 3,063 6,079
Finance costs (72) (133) (274)
Finance income 179 143 347
Total finance credit 107 10 73
Profit before tax 4,326 3,073 6,152
Taxation 5 (1,744) (1,189) (2,019)
Profit for the period after tax 2,582 1,884 4,133
Attributable to:
Equity shareholders of the parent 2,582 1,881 4,131
Minority interest - 3 2
2,582 1,884 4,133
Earnings per share (pence)
- Basic 6 10.64p 7.50p 16.90p
- Fully diluted 6 10.24p 7.48p 16.41p
All amounts derive from continuing activities
Consolidated interim statement of changes in shareholders' equity
Attributable to the equity holders of the
Company
Share Fair value Cumulative Retained Minority Total
capital and other translation earnings interest equity
reserves adjustments
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2006 500 4,722 (229) 4,802 19 9,814
Currency translation adjustments - - 27 - - 27
Net income recognised directly in - - 27 - - 27
equity
Profit for the period - - - 1,881 3 1,884
Total recognised income for the - - 27 1,881 3 1,911
period
Issue of share capital 2 59 - - - 61
Movement in respect of employee - (314) - - - (314)
share scheme
Employee share option scheme:
- value of services provided - 40 - - - 40
Dividends paid - - - (612) - (612)
Balance at 1 July 2006 502 4,507 (202) 6,071 22 10,900
Currency translation adjustments - - (180) - - (180)
Net expense recognised directly in - - (180) - - (180)
equity
Profit / (loss) for the period - - - 2,250 (1) 2,249
Total recognised income / - - (180) 2,250 (1) 2,069
(expenses) for the period
Issue of share capital 2 46 - - - 48
Movement in respect of employee - (209) - - - (209)
share scheme
Employee share option scheme:
- value of services provided - 66 - - - 66
Purchase of minority interest - - - (15) (21) (36)
Dividends paid - - - (305) - (305)
Balance at 1 January 2007 504 4,410 (382) 8,001 - 12,533
Currency translation adjustments - - 213 - - 213
Net income recognised directly in - - 213 - - 213
equity
Profit for the period - - - 2,582 - 2,582
Total recognised income for the - - 213 2,582 - 2,795
period
Issue of share capital 1 33 - - - 34
Movement in respect of employee - (1,425) - 467 - (958)
share scheme
Employee share option scheme:
- value of services provided - 66 - - - 66
Balance at 30 June 2007 505 3,084 (169) 11,050 - 14,470
Consolidated interim balance sheet
At 30 June At 30 June At 31 December
2007 2006 2006
£'000 £'000 £'000
(Unaudited) (Unaudited)
Note
Assets
Non-current assets
Intangible assets - Goodwill 4,096 3,939 4,096
Intangible assets - Other 3,904 2,307 3,166
Property, plant and equipment 1,985 2,346 2,214
Deferred tax assets 1,894 1,917 2,176
Available-for-sale financial assets 300 300 300
Other receivables 8 969 - -
13,148 10,809 11,952
Current assets
Inventories 307 427 332
Trade and other receivables 17,426 19,863 14,279
Current tax assets - - 282
Cash and cash equivalents 9,009 5,638 11,414
26,742 25,928 26,307
Total assets 39,890 36,737 38,259
Equity
Capital and reserves attributable to the Company's equity holders
Share capital 9 505 502 504
Fair value and other reserves 3,084 4,507 4,410
Cumulative translation reserve (169) (202) (382)
Retained earnings 11,050 6,071 8,001
14,470 10,878 12,533
Minority interest - 22 -
Total equity 14,470 10,900 12,533
Liabilities
Non-current liabilities
Borrowings 1,620 2,191 1,735
Retirement benefit obligations 10 5,807 6,593 6,300
7,427 8,784 8,035
Current liabilities
Trade and other payables 16,793 15,710 16,954
Current tax liabilities 740 1,021 -
Borrowings 460 322 737
17,993 17,053 17,691
Total liabilities 25,420 25,837 25,726
Total equity and liabilities 39,890 36,737 38,259
These consolidated interim financial statements have been approved for issue by
the Board of Directors on 5 September 2007.
Consolidated interim cash flow statement
Half year to Half year to Year to 31
30 June 2007 30 June 2006 December 2006
£'000 £'000 £'000
(Unaudited) (Unaudited)
Note
Cash flow from operating activities
Cash generated from operations 11 1,465 1,748 10,578
Interest paid (72) (133) (274)
Tax paid (440) (841) (3,233)
Net cash generated from operating activities 953 774 7,071
Cash flow from investing activities
Purchase of minority interest in subsidiary - - (36)
Purchase of property, plant and equipment (PPE) (290) (938) (1,407)
Proceeds from sale of PPE 5 64 156
Intangible assets expenditure (876) (715) (1,503)
Proceeds from disposal of intangibles - 210 1,193
Interest received 179 143 347
Net cash used in investing activities (982) (1,236) (1,250)
Cash flow from financing activities
Proceeds from issue of share capital 34 61 109
Payments to the ESOP (1,049) (314) (523)
Repayments of borrowings (123) (41) (82)
Payments of finance lease liabilities (15) (23) (59)
Increase in non - current other receivables (969) - -
Dividends paid - (612) (917)
Net cash used in financing activities (2,122) (929) (1,472)
Net (decrease) / increase in net cash (including bank (2,151) (1,391) 4,349
overdrafts)
Cash and bank overdrafts at beginning of period 11,160 6,811 6,811
Cash and bank overdrafts at end of period 9,009 5,420 11,160
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 three divisions - Professional
Business Services, Software Solutions and Stock and Inventory Services.
Professional Business Services principally covers business valuation,
consultancy and agency, mortgage and insurance services, and business appraisal.
Software Solutions covers EPoS, head office systems and supply chain management.
Stock and Inventory Services covers stock audit and inventory preparation and
valuation.
2. Basis of preparation
These interim consolidated financial statements of Christie Group plc are for
the six months ended 30 June 2007. The interim financial statements have been
prepared using accounting policies set out in the Annual Report and Financial
Statements for the year ended 31 December 2006 and in accordance with those IFRS
and IFRIC interpretations issued and effective or issued and early adopted as at
the time of preparing these statements (September 2007). The IFRS and IFRIC
interpretations that will be applicable at 31 December 2007, including those
that will be applicable on an optional basis, are not known with certainty at
the time of preparing these interim financial statements. These consolidated
interim financial statements have been prepared under the historical cost
convention.
These consolidated interim financial statements have been prepared in accordance
with IAS 34 'Interim Financial Reporting'. They do not include all of the
information required for full annual financial statements and should be read in
conjunction with the consolidated financial statements for the year ended 31
December 2006.
The financial information included in this interim report for the six months
ended 30 June 2007 does not constitute statutory financial statements as defined
by Section 240 of the Companies Act 1985 and is unaudited. The comparative
information for the six months ended 30 June 2006 is also unaudited. The
comparative figures for the year ended 31 December 2006 have been extracted from
the Group's financial statements as filed with the Registrar of Companies, on
which the auditors gave an unqualified opinion and did not make a statement
under Section 237 (2) or (3) of the Companies Act 1985.
The preparation of financial statements in accordance with IFRS requires the use
of certain critical accounting estimates. It also requires management to
exercise judgement in the process of applying the Company's accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the consolidated interim financial
statements, are disclosed in Note 3.
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 2006.
4. Segment information
a. Primary reporting format - business segments
The Group is organised into three main business segments: Professional Business
Services, Software Solutions and Stock and Inventory Services.
The segment results for the period ended 30 June 2007 are as follows:
Professional Stock and
Business Software Inventory
Services Solutions Services Other Group
£'000 £'000 £'000 £'000 £'000
Continuing Operations
Total gross segment sales 26,308 7,316 12,479 1,875 47,978
Inter-segment sales - - - (1,875) (1,875)
Revenue 26,308 7,316 12,479 - 46,103
Operating profit 4,791 (413) 646 (805) 4,219
Net finance credit 107
Profit before tax 4,326
Taxation (1,744)
Profit for the period after tax 2,582
The segment results for the period ended 30 June 2006 are as follows:
Professional Stock and
Business Software Inventory
Services Solutions Services Other Group
£'000 £'000 £'000 £'000 £'000
Continuing Operations
Total gross segment sales 24,919 8,039 12,093 1,437 46,488
Inter-segment sales (33) - - (1,437) (1,470)
Revenue 24,886 8,039 12,093 - 45,018
Operating profit 4,083 (1,425) 793 (388) 3,063
Net finance credit 10
Profit before tax 3,073
Taxation (1,189)
Profit for the period after tax 1,884
The segment results for the year ended 31 December 2006 are as follows:
Professional Stock and
Business Software Inventory
Services Solutions Services Other Group
£'000 £'000 £'000 £'000 £'000
Continuing operations
Total gross segment sales 49,739 15,053 22,337 2,777 89,906
Inter-segment sales (33) - - (2,777) (2,810)
Revenue 49,706 15,053 22,337 - 87,096
Operating profit 8,386 (2,400) 555 (462) 6,079
Net finance credit 73
Profit before tax 6,152
Taxation (2,019)
Profit for the period after tax 4,133
Other segment items included in the income statement are as follows:
Professional Stock and
Business Software Inventory
Services Solutions Services Other Group
£'000 £'000 £'000 £'000 £'000
For the period ended 30 June 2007
Depreciation and amortisation 209 141 276 17 643
Impairment of trade receivables 95 (231) (4) - (140)
For the period ended 30 June 2006
Depreciation and amortisation 293 166 161 19 639
Impairment of trade receivables 732 152 25 - 909
For the year ended 31 December 2006
Depreciation and amortisation 557 333 379 29 1,298
Impairment of trade receivables 701 382 55 - 1,138
Segment assets consist primarily of property, plant and equipment, intangible
assets, inventories, receivables and operating cash. They exclude deferred
taxation.
Segment liabilities comprise operating liabilities. They exclude items such as
taxation and corporate borrowings.
Capital expenditure comprises additions to property, plant and equipment and
intangible assets.
The segment assets and liabilities at 30 June 2007 and capital expenditure for
the period then ended are as follows:
Professional Stock and
Business Software Inventory
Services Solutions Services Other Group
£'000 £'000 £'000 £'000 £'000
Assets 20,083 11,475 6,153 285 37,996
Deferred tax assets 1,894
39,890
Liabilities 13,229 3,951 4,278 1,151 22,609
Current tax liabilities 740
Borrowings (excluding finance 2,071
leases)
25,420
Capital expenditure 90 889 187 - 1,166
The segment assets and liabilities at 30 June 2006 and capital expenditure for
the period then ended are as follows:
Professional Stock and
Business Software Inventory
Services Solutions Services Other Group
£'000 £'000 £'000 £'000 £'000
Assets 17,137 11,114 5,270 1,299 34,820
Deferred tax assets 1,917
36,737
Liabilities 11,886 4,625 4,020 1,813 22,344
Current tax liabilities 1,021
Borrowings (excluding finance 2,472
leases)
25,837
Capital expenditure 135 820 694 4 1,653
The segment assets and liabilities at 31 December 2006 and capital expenditure
for the period then ended are as follows:
Professional Stock and
Business Software Inventory
Services Solutions Services Other Group
£'000 £'000 £'000 £'000 £'000
Assets 10,433 11,953 5,329 8,086 35,801
Deferred tax assets 2,176
Current tax assets 282
38,259
Liabilities 12,959 4,268 4,056 1,977 23,260
Borrowings (excluding finance leases) 2,466
25,726
Capital expenditure 191 1,776 997 94 3,058
b. Secondary format - geographical segments
The Group manages its business segments on a global basis. The UK is the home
country of the parent. The operations are based in two main geographical areas.
The main operations in the principal territories are as follows:
- Europe
- Rest of the World (primarily North America).
The Group's sales are mainly in Europe. Sales are allocated based on the country
in which the customer is located.
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
Sales
Europe 45,836 44,564 86,435
Rest of the World 267 454 661
46,103 45,018 87,096
Total segment assets are allocated based on where the assets are located.
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
Total assets
Europe 37,842 34,485 35,666
Rest of the World 154 335 135
37,996 34,820 35,801
Capital expenditure is allocated based on where the assets are located.
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
Capital expenditure
Europe 1,166 1,653 3,058
5. Taxation
The tax charge for the six months ending 30 June 2007 has been based on a
forecasted underlying tax rate (current year corporation and deferred tax as a
percentage of pre tax profit) for the year to 31 December 2007 of 37.2% (Half
year to 30 June 2006: 38.7%; Year ended 31 December 2006: 37.2%), which includes
the movement in deferred tax asset relating to Retirement Benefit obligations.
In addition the deferred tax asset has been adjusted to reflect the forthcoming
reduction in the rate of UK corporation tax to 28% in 2008 (previously 30%)
resulting in a charge to the Income Statement and reducing the deferred tax
asset by £135,000 in the period.
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.
30 June 2007 30 June 2006 31 December 2006
Profit attributable to equity holders of the Company (£'000) 2,582 1,881 4,131
Weighted average number of ordinary shares in issue (thousands) 24,277 25,065 24,448
Basic earnings per share (pence) 10.64 7.50 16.90
Diluted earnings per share is calculated 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.
30 June 2007 30 June 2006 31 December 2006
Profit attributable to equity holders of the Company (£'000) 2,582 1,881 4,131
Weighted average number of ordinary shares in issue (thousands) 24,277 25,065 24,448
Adjustment for share options (thousands) 945 86 728
Weighted average number of ordinary shares for diluted earnings 25,222 25,151 25,176
per share (thousands)
Diluted earnings per share (pence) 10.24 7.48 16.41
7. Dividends per share
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
Interim
2006 interim, paid October 2006 (1.25p) - - 306
Final
2005 final, paid June 2006 (2.5p) - 612 611
- 612 917
An interim dividend in respect of 2007 of 1.5p per share, amounting to a
dividend of £360,000, was declared by the directors at their meeting on 5
September 2007.These financial statements do not reflect this dividend payable.
The dividend of 1.5p per share will be payable to shareholders on the record on
21 September 2007. The ex-dividend date will be 19 September 2007. The dividend
will be paid on 19 October 2007.
8. Non - current other receivables
This represents loans in respect of the Group's share schemes repayable after
more than one year.
9. Share capital
30 June 2007 30 June 2006 31 December 2006
Ordinary shares of 2p each Number £'000 Number £'000 Number £'000
Authorised: 30,000,000 600 30,000,000 600 30,000,000 600
At 1 January and 31 December
Allotted and fully paid:
At 1 January 25,216,384 504 25,003,552 500 25,003,552 500
Issued during the period 47,167 1 139,833 2 212,832 4
End of period 25,263,551 505 25,143,385 502 25,216,384 504
The consideration received for the shares issued in the period was £34,000 (Half
year to 30 June 2006: £61,000; Year ended 31 December 2006: £109,000).
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 2007 the total payments by the Group to the ESOP to finance the
purchase of ordinary shares was £2,004,000 (30 June 2006: £666,000; 31 December
2006: £916,000). The market value at 30 June 2007 of the ordinary shares held in
the ESOP was £2,291,000 (30 June 2006: £1,136,000; 31 December 2006:£1,601,000).
The investment in own shares represents 1,058,000 shares (30 June 2006: 668,000;
31 December 2006: 616,000) with a nominal value of 2p each.
10. Retirement benefit obligations
The amounts recognised in the balance sheet in respect of the net pension
liability is determined as follows:
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
United Kingdom 5,742 6,533 6,240
Overseas 65 60 60
5,807 6,593 6,300
United Kingdom
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 income statement and the movement in the liability
recognised in the balance sheet have been based on the forecasted position for
the year to 31 December 2007 after adjusting for the actual contributions to be
paid in the period.
The amounts recognised in the income statement are as follows:
Half year to 30 Half year to 30 Year ended 31
June 2007 June 2006 December 2006
£'000 £'000 £'000
Current service cost (471) (474) (945)
Interest cost (797) (720) (1,477)
Expected return on plan assets 908 755 1,364
Total included in employee benefit expenses (360) (439) (1,058)
The movement in the liability recognised in the balance sheet is as follows:
Half year to 30 Half year to 30 Year ended 31
June 2007 June 2006 December 2006
£'000 £'000 £'000
Beginning of the period 6,240 6,732 6,732
Expenses included in employee benefit expenses 360 439 1,058
Contributions paid (858) (638) (1,550)
End of the period 5,742 6,533 6,240
The principal actuarial assumptions used were as follows:
Half year to 30 Half year to 30 Year ended 31
June 2007 June 2006 December 2006
% % %
Discount rate 5.80 4.80 - 5.00 4.80 - 5.00
Inflation rate 3.50 2.75 3.00
Expected return on plan assets 6.20 - 7.60 6.20 - 7.50 6.20 - 6.90
Future salary increases 3.50 - 3.60 2.75 - 3.10 3.00 - 3.25
Assumptions regarding future mortality experience were consistent with those
disclosed in the financial statements for the year ended 31 December 2006.
Overseas
In accordance with French law a retirement indemnity provision is held. Rights
to these benefits accrue on the condition that the employee will be with the
employer at retirement date.
The movement in the liability recognised in the balance sheet is as follows:
Half year to 30 Half year to 30 Year ended 31
June 2007 June 2006 December 2006
£'000 £'000 £'000
Beginning of the period 60 58 58
Expenses included in employee benefit expenses 5 2 2
End of the period 65 60 60
The principal actuarial assumptions were consistent with those disclosed in the
financial statements for the year ended 31 December 2006.
11. Note to the cash flow statement
Cash generated from operations
Half year to Half year to Year to
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
Profit for the period 2,582 1,884 4,133
Adjustments for:
- Taxation 1,744 1,189 2,019
- Finance credits (107) (10) (73)
- Depreciation 505 614 1,249
- Amortisation of intangible assets 138 25 49
- Loss / (profit) on sale of property, plant and 9 (19) (47)
equipment
- Loss on sale of intangible assets - - 19
- Foreign currency translation 213 27 (105)
- Movement in share option charge 66 40 106
- Movement in retirement benefit obligation (493) (197) (490)
Changes in working capital (excluding the effects
of acquisitions and exchange differences on
consolidation):
- Decrease / (increase) in inventories 25 (117) (22)
- Increase in trade and other receivables (3,056) (4,651) (318)
- (Decrease) / increase in trade and other payables (161) 2,963 4,058
Cash generated from operations 1,465 1,748 10,578
Group at a glance
Professional business services
Business sales and valuations, consultancy and financial services
Christie + Co
www.christie.com
www.christiecorporate.com
Christie+ Co is the leading specialist firm providing business intelligence in
the hospitality, leisure, retail and care sectors. With 16 offices across the
UK, it focuses on agency, valuation services, investment and consultancy
activity in its key sectors. Internationally, it operates from the UK and nine
offices in France, Germany and Spain.
Christie Corporate Finance
www.christiecf.com
Acting as lead adviser and project manager of a transaction, Christie Corporate
Finance specialises in the provision of expert and creative financial advice in
the corporate hospitality, leisure, care and retail sectors. Areas of particular
expertise are: acquisitions, disposals, management buy-outs, raising development
capital for growth, deal structuring and asset-specific funding.
Christie Finance
www.christiefinance.com
Christie Finance has over 25 years' experience in financing businesses in the
hospitality, leisure, care and retail sectors. Its relationships with the
clearing banks, centralised lenders, finance houses and building societies make
it the market leader in providing finance solutions for purchase or re-financing
in its specialist sectors.
Christie Insurance
www.christieinsurance.com
With over 25 years' experience arranging business insurance in the hospitality,
leisure, care and retail sectors, Christie Insurance is a leading company in its
markets. Its contacts with the UK's leading insurers enable it to provide a
premier service including tailored insurance schemes.
Pinders
www.pinders.co.uk
www.pinderpack.com
Pinders is the UK's leading specialist business appraisal, valuation and
consultancy company, providing professional services to the licensed leisure,
retail and care sectors, and also the commercial and corporate business sectors.
Its Building Consultancy Division offers a full range of project management,
building monitoring and building surveying services.
Software solutions
EPoS and head office systems
VCSTIMELESS
www.vcstimeless.com
Retail
The VCSTIMELESS retail applications address such sectors as fashion,
accessories, luggage, leather goods, sports, footwear, home furnishings,
perfumery and toys. Solutions include merchandising planning and management,
forecasting, supply chain optimisation, EPoS, CRM and business intelligence
applications. The Colombus Enterprise suite is a comprehensive retail management
software suite, proven to meet the specific needs of single and multi-channel
retailers.Colombus.next is a next generation supply chain optimisation and
decision support solution.
Leisure and cinemas
VCSTIMELESS' VENPoS and Vista-branded leisure, hospitality and cinema management
softwares comprise admissions, head office, back office and online ticketing
modules.
Stock & inventory services
Stock and inventory control
Orridge
www.orridge.co.uk
Orridge is Europe's longest established stocktaking business specialising in all
fields of retail stocktaking including high street, warehousing, food and
factory. It also has a specialised pharmacy division providing valuation and
stocktaking services. A full range of stocktaking and inventory management
solutions is provided for a wide range of clients in the UK and Europe.
Venners
www.venners.com
Venners is the leading supplier of stocktaking, inventory, control audit and
related stock management services to the hospitality sector. Bespoke software
and systems enable real time management reporting to its customer base using the
most up-to-date technology.
This information is provided by RNS
The company news service from the London Stock Exchange R SSFFWISWSELU
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