Trading Update

RNS Number : 3069T

Christie Group PLC

05 December 2011

 



 5 December 2011

Christie Group plc

('Christie Group' or the 'Company)

Trading update

The Board of Christie Group (CTG.L), the leading provider of Professional Business Services and Stock & Inventory Systems & Services to the leisure, retail and care markets, has today announced that revenues for the 12 months to 31 December 2011 are expected to be materially higher than current market forecasts.  While this growth is anticipated to be sustained into 2012, certain specific events described below also mean that operating profits for the current year are not expected to exceedthe £0.6m reported for the first six months of the year.

The Company's Professional Business Services ("PBS") division has enjoyed steady revenue growth since late 2010.  This has continued through 2011, although a number of transactions which were expected to close in the current year have been delayed primarily as a result of the current turmoil in the European debt markets which have impacted on their financing and conclusion.  Christie Group has continued to invest in PBS, as announced in our preliminary statement in May 2011, to ensure that we retain capacity to take advantage of the opportunity to increase market share in our chosen markets.  This investment in the future has resulted in a short term impact on profitability.  One example of this is the Christie + Co opening a new office in Dubai in March, covering the Middle East and North Africa, at a cost of £0.4m for the current year.

The commercial and disciplined expansion of the Stock &Inventory Systems & Services division ("SISS") has required a significant level of investment in training and other initial operating costs, with a consequential adverse impact on profit margins in the current year.  The typical client lifecycle within the SISS division results in an above average acquisition cost of bringing a client account on-stream in the first year, however, this investment is rewarded in subsequent years.  We are very pleased with the high calibre of client mandates that have been won in 2011 and have confidence in the strength of the ongoing client order book.

Our pipelines of assignments and contracted work are strong.  We enjoy a high quality and well diversified client base.   The Board remains confident that the prospects for Christie Group remain positive into 2012 and beyond, although the Eurozone debt problems may continue to impact on the Company's levels of transactional and related activity whilst these problems persist.

Enquiries:

David Rugg                                                                                              020 7227 0707

Chief Executive

Christie Group plc

Russell Cook / Carl Holmes                                                                        020 7149 6000

Charles Stanley Securities

Nominated Adviser & Broker

Tom Cooper                                                                                             0797 122 1972

Winningtons

Notes to Editors:

Christie Group plc (CTG.L), quoted on AIM, is a leading professional business services group with 38 offices across the UK, Europe, Canada and the Middle East, 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.

 

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