TIDMCTG
RNS Number : 2071M
Christie Group PLC
20 September 2021
20 September 2021
Christie Group plc
Interim Results for the six months ended 30 June 2021
Christie Group plc ('Christie Group' or the 'Group'), the
leading provider of Professional & Financial Services (PFS) and
Stock & Inventory Systems & Services (SISS) to the
hospitality, leisure, healthcare, medical, childcare &
education and retail sectors, is pleased to announce its interim
results for the six months ended 30 June 2021.
H1 2021 Highlights
* Revenues up by GBP9.8m (52%) to GBP28.6m (H1 2020:
GBP18.8m)
* Operating profit improved to GBP1.8m up by GBP7.3m
compared to the PY (H1 2020: GBP5.5m loss)
* Re-instatement of interim dividend of 1.0p (H1 2020:
nil)
* Strong cash balance at 30 June 2021 of GBP9.8m
* Earnings per share 3.17p - H1 2020: (18.54p negative)
* Pension liability reduced by GBP5.1m, 26% in H1
* SISS division adversely affected by the lockdown
* We look forward to a strong and profitable H2
Commenting on the results, David Rugg, Chairman and Chief
Executive of Christie Group, said:
"The Group's results reflect the continued recovery which began
in the third quarter of 2020. The excellent performance in the PFS
division was partially absorbed by the unavoidable losses in the
SISS division as a result of the lockdown. Our third quarter
trading has started well, and with the resurgence of demand in our
hospitality activities in both the UK & Europe and barring
further lockdowns, we look forward to a strong and profitable
second half. If the current PFS division performance continues, we
would expect to exceed the current market operating profit
expectation for the year."
Enquiries:
Christie Group plc
David Rugg
Chairman and Chief Executive 020 7227 0707
Daniel Prickett
Chief Operating Officer 020 7227 0700
Simon Hawkins
Group Finance Director 020 7227 0700
Shore Capital
Patrick Castle
Nominated Adviser & Broker 020 7408 4090
Notes to Editors:
Christie Group plc (CTG.L), quoted on AIM, is a leading
professional business services group with 40 offices across the UK
and Europe, catering to its specialist markets in the hospitality,
leisure, healthcare, medical, childcare & education and retail
sectors.
Christie Group operates in two complementary business divisions:
Professional & Financial Services (PFS) and Stock &
Inventory Systems & Services (SISS). These divisions trade
under the brand names: PFS - 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 valued 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 for the purposes of
Article 7 of the UK Market Abuse Regulation (EU) No. 596/2014 which
is part of the UK law by virtue of the European Union (Withdrawal)
Act 2018.
For more information, please go to www.christiegroup.com .
Chairman and Chief Executive's review
I am pleased to report a strong first half. Revenue for the six
months ended 30 June 2021 increased by GBP9.8m to GBP28.6m (H1
2020: GBP18.8m), an increase of 52%.
In the same period we produced an operating profit of GBP1.8m
(H1 2020: GBP5.5m loss) despite the restrictions to trade caused by
the ongoing pandemic. The excellent results generated by our
Professional & Financial Services (PFS) division were partially
absorbed by unavoidable losses in our Stock & Inventory Systems
& Services (SISS) division.
That rate of loss in SISS has already been significantly stemmed
following the reopening of the hospitality sector. These results
confirm our continued recovery which began in the third quarter of
2020.
We ended the first half with net cash in excess of GBP8m, having
made repayments of debt and other deferred liabilities of GBP2.9m
in the period. Indeed, during the period we repaid GBP1.0m of the
CLBILS loan, taking the total repayment to GBP2.0m of a total
GBP6.0m originally drawn down.
We are pleased to report a GBP5.1m reduction in the liability
relating to our defined benefit pension schemes since the end of
2020. This improvement reflects actuarial gains in both asset
values and scheme liabilities, aided by the movement in gilt yields
and the positive impact on discount rates. Reflecting the defined
benefit schemes' trustees' investment strategy, scheme assets are
currently invested on a weighting of 83% in 'growth' assets and 17%
in 'protection' assets. Within the growth assets classification, we
consider 8% of the 83% to be intentionally defensive and
low-volatility in their nature and by reference to the historic
performance experience of those funds.
Professional & Financial Services
Our Professional & Financial Services division generated
revenue of GBP20.6m for the period, contributing an operating
profit of GBP3.1m. This compares with revenue of GBP11.5m and a
significant operating loss of GBP2.9m for the corresponding period
last year.
Our agency & advisory businesses have enjoyed strong demand
for businesses coming to the market. This coupled with limited
supply, has ensured some record prices achieved.
Christie & Co advised on the strategic investment by TriSpan
in Scotland's second largest dental group, Real Good Dental, which
serves 350,000 patients across 46 practices. Other notable
transactions in which our Medical team were involved included the
sale of two groups comprising 14 pharmacies to Mr Pickford's,
creating a top 30 UK group.
In Healthcare, our team sold 13 homes in Northern Ireland to St
Anne's Care on behalf of Four Seasons Health Care, while also
successfully advising on the sale of a forward-funded investment
with planning permission for a state-of-the-art care home in Market
Harborough, pre-let to Care UK.
Our Childcare & Education team brokered the sale of Poppies
Day Nurseries, increasing the national operator, Family First
Nurseries' portfolio to a total of 17 nurseries. They also brokered
the sale of three freehold therapeutic children's homes with
on-site education.
Our Retail team have sold two service station forecourts to
Ascona in 2021 so far, bringing their total portfolio to 59 of
which 33 have been sold by Christie & Co.
Our pan-European Hotel team sold the Qbic London City hotel,
London's leading 'green' hotel, comprising 183 bedrooms. In France
they sold a portfolio of 9 hotels between the Ile-de-France &
the Pays de la Loire and in Austria they sold the 'der Grune Baum
Mountain Boutique Hotel' in the Zugspitze region to g2hotels, a
German operator.
Our Pubs & Restaurants team sold several groups, including
six pubs sold on behalf of the administrators, BDO, of Seafood Pub
Company Holdings Ltd to The Oakman Group, as well as high volumes
of individual pubs & restaurants.
Overall, we sold 535 businesses in the first half of 2021 and
have been unable to identify any UK headquartered competitor which
sells as many businesses.
Pinders, our business appraisal company, has achieved a 'V'
shaped recovery and is now regularly valuing more businesses than
in 2019 and at higher average fees. Patronage has been boosted by
Pinders' development and inclusion of benchmark data covering, for
example, dental practices and social care.
Christie Finance arranged funding for 79% more Christie & Co
sales in the first half of 2021 compared to the same period in 2020
and its success rate has increased by 20%. Christie Finance also
procured funding for the Fan Museum's installation of our Vennersys
system, illustrating the potential for further cross selling
between these two subsidiaries.
In some cases Christie Insurance foresee that clients will
experience increasing fire insurance premiums or restricted cover,
reflecting insurers' lack of confidence that fires will be
contained within areas of buildings, as distinct from total
loss.
Stock & Inventory Systems & Services
The division generated revenues of GBP8.0m for the first half of
the year, an increase of 8% on the prior year
(H1 2020: GBP7.4m). The comparable operating loss was reduced from GBP2.6m to GBP1.3m.
The majority of the loss was caused by the virtual closure of
much of the hospitality sector for a significant period due to
covid-related restrictions. The greatest business impact of the
pandemic upon our Group has been the effect of the Hospitality
industry lockdown on Venners, our food & beverage
stocktaker.
Clients' business activities were significantly curtailed before
17(th) May this year. This in turn dictated that Venners' own
activity was limited. Since the period end some 95% of our clients
have returned or signified their intent to return to us as
confidence gradually returns to the sector, but volumes of work are
a little over 50% of pre pandemic levels and increasing as
throughput grows. At this level Venners is currently profitable.
Venners is also attracting new clients, converting over 70% of all
quotations. New clients include Balfour Beatty, an international
infrastructure group.
Orridge, our UK & European stocktaking business, has been
returned to profit for the half year. Understandably, new business
has been concentrated in the supply chain area of distribution
warehouses and goods inward delivery checks. New wins include One
Stop, Acelor Mittal, Clarins, Nicholas and I.D. Group.
Whilst we incentivise our own counting operatives enabling them
to enhance their earnings, other industries are competing for
hourly paid staff, and we expect market pay rates to rise.
Looking forward, we have entered the veterinary sector which
complements our dispensary expertise in the Pharmacy sector.
Vennersys, our online visitor attractions SaaS business, has
enjoyed a belated, but bumper season as venues reopened. Our timed
ticketing is essential to enable our clients to safely spread
occupancy and monitor the duration of visits. New sites won include
Woodside Animal Farm, Hopetown, Great British Car Journey and
Chiswick House. Our fastest 'go live' was achieved in just three
days from the order being placed.
New developments will enable us to interface through platforms
with a wide range of accommodation, travel, accounting, and other
sites. This will keep our systems integral to our existing clients'
growing businesses and generate further revenue from them. These
developments are also key to attracting larger venues for 2022
& beyond.
Future working model
Where permissible we have made each of our offices available for
staff and prebooked client meetings. We are experiencing a gradual
return to our offices.
There have been proven efficiency gains through the necessity of
home working and the use of video conferencing & forums. We
hope to retain such efficiencies, but also to encourage physical
presence in our premises to protect the wellbeing of our people,
engender team spirit and to facilitate recruitment, training &
monitoring.
Each of our businesses continue to invest in technology.
Additionally, we will be making available central resource to
ensure that we take full advantage of new technological
availability & digital expertise to enable us to differentiate
our leadership.
Dividend
In the light of current trading and our future prospects, your
Board have declared a reinstated interim dividend of 1.0p per share
(H1 2020: 0.0p) which will be paid on 29 October 2021 to
shareholders on the register on 1 October 2021. We thank you for
your forbearance as to dividends last year.
Summary and Outlook
The results today and those in prospect for the whole year
result from the sterling efforts of those determined to function
professionally both during lockdown periods & since.
We are indebted to all our people whom we appreciate and hold
dear. I thank them both personally and for you all.
Our rampant performance through the end of our first half in
business sales transactions, significant portfolio valuations and
consultancy assignments already point to a strong third quarter
performance. With the resurgence of demand in our hospitality
activities in both the UK & Europe and barring further
lockdowns, we look forward to a strong and profitable second half.
If the current Professional & Financial Services division
performance continues, we would expect to exceed the current market
operating profit expectation for the year.
Stay well.
David Rugg
Chairman and Chief Executive
Independent Review Report to Christie Group plc for half year
ended 30 June 2021
We have been engaged by Christie Group plc ("the Company") to
review the financial information for the six months ended 30 June
2021 which comprises the consolidated interim income statement, the
consolidated interim statement of comprehensive income, the
consolidated interim statement of changes in shareholders' equity,
the consolidated interim statement of financial position, the
consolidated interim statement of cash flows and related notes 1 to
16. We have read the other information contained in the interim
report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial
information.
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
issued by the Auditing Practices Board and our Engagement Letter
dated 2 September 2021. Our work has been undertaken so that we
might state to the Company those matters we are required to state
to them in an independent review report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our review
work, for this report, or for the conclusions we have formed.
Respective responsibilities of directors and auditor
The interim report, including the financial information
contained therein, is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the
interim report in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting', and the AIM
Rules issued by the London Stock Exchange, which requires that the
interim report must be prepared and presented in a form consistent
with that which will be adopted in the company's annual accounts
having regard to the accounting standards applicable to such annual
accounts.
Our responsibility is to express to the Company a conclusion on
the consolidated financial information in the interim report based
on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the consolidated financial information in
the interim report does not give a true and fair view of the
financial position of the Company as at 30 June 2021 and of its
financial performance and its cash flows for the six months then
ended, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting', and the AIM Rules
issued by the London Stock Exchange.
Stephen Eames (Senior Statutory Auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
The Pinnacle
160 Midsummer Boulevard
Milton Keynes
MK9 1FF
17 September 2021
Consolidated interim income statement
Half year Half year
to 30 June to 30 June
Year ended
31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Note (Unaudited) (Unaudited) (Audited)
---------------------------------------------- ----- ------------- ------------- -------------
Revenue 5 28,587 18,844 42,224
Other income - government grants 4 2,140 5,047 8,182
Employee benefit expenses (21,858) (21,209) (40,338)
Other operating expenses (7,062) (8,160) (14,423)
---------------------------------------------- ----- ------------- ------------- -------------
Operating profit/(loss) before restructuring
costs 1,807 (5,478) (4,355)
Restructuring costs - - (672)
Operating profit/(loss) after restructuring
costs 1,807 (5,478) (5,027)
Finance costs (609) (522) (1,316)
Finance income - - 4
Total finance charge (609) (522) (1,312)
---------------------------------------------- ----- ------------- ------------- -------------
Profit/(loss) before tax 1,198 (6,000) (6,339)
Taxation 6 (367) 1,140 1,277
---------------------------------------------- ----- ------------- ------------- -------------
Profit/(loss) for the period after
tax 831 (4,860) (5,062)
Profit/(loss) for the period after tax is wholly attributable to
equity shareholders of the parent.
Earnings per share attributable to equity holders - pence
All amounts derive from continuing operations
Basic 7 3.17 (18.54) (19.32)
Diluted 7 3.13 (18.54) (19.32)
--------- ----- -------- --------
Consolidated interim statement of comprehensive income
Half year Half year
to 30 June to 30 June
Year ended
31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
(Unaudited) (Unaudited) (Audited)
--------------------------------------------- ---- ------------- ------------- -------------
Profit/(loss) for the period after
tax 831 (4,860) (5,062)
--------------------------------------------------- ------------- ------------- -------------
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translating
foreign operations (32) 7 (34)
--------------------------------------------------- ------------- ------------- -------------
Net other comprehensive (losses)/income
to be reclassified to profit or loss
in subsequent periods (32) 7 (34)
--------------------------------------------------- ------------- ------------- -------------
Items that will not be reclassified
to profit or loss:
Re-measurement gains/(losses) on defined
benefit plans 5,321 (4,748) (8,052)
Income tax effect (1,011) 903 1,770
--------------------------------------------------- ------------- ------------- -------------
Net other comprehensive income/(losses)
not being reclassified to profit or
loss in subsequent periods 4,310 (3,845) (6,282)
--------------------------------------------------- ------------- ------------- -------------
Other comprehensive income/(losses)
for the period 4,278 (3,838) (6,316)
--------------------------------------------------- ------------- ------------- -------------
Total comprehensive income/(losses)
for the period 5,109 (8,698) (11,378)
--------------------------------------------------- ------------- ------------- -------------
Total comprehensive income/(losses) for the period is wholly
attributable to equity shareholders of the parent.
Consolidated interim statement of changes in shareholders'
equity
Cumulative
Share Other translation Retained Total
capital reserves reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- --------- ---------- ------------- ---------- ---------
Half year to 30 June 2021 (unaudited)
--------------------------------------- --------- ---------- ------------- ---------------------
Balance at 1 January 2021 531 5,462 586 (17,972) (11,393)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Profit for the period after tax - - - 831 831
Items that will not be reclassified
subsequently to profit or loss - - - 4,310 4,310
Items that may be reclassified
subsequently to profit or loss - - (32) - (32)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Total comprehensive (losses)/income
for the period - - (32) 5,141 5,109
Movement in respect of employee
share scheme - 30 - - 30
Employee share option scheme:
- value of services provided - (229) - - (229)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Balance at 30 June 2021 531 5,263 554 (12,831) (6,483)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Half year to 30 June 2020 (unaudited)
Balance at 1 January 2020 531 5,443 620 (6,628) (34)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Loss for the period after tax - - - (4,860) (4,860)
Items that will not be reclassified
subsequently to profit or loss - - - (3,845) (3,845)
Items that may be reclassified
subsequently to profit or loss - - 7 - 7
--------------------------------------- --------- ---------- ------------- ---------- ---------
Total comprehensive income/(losses)
for the period - - 7 (8,705) (8,698)
Movement in respect of employee
share scheme - 18 - - 18
Employee share option scheme:
- value of services provided - (75) - - (75)
Balance at 30 June 2020 531 5,386 627 (15,333) (8,789)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Year ended 31 December 2020 (audited)
----------------------------------------------------------------------------------------------------
Balance at 1 January 2020 531 5,443 620 (6,628) (34)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Loss for the year after tax - - - (5,062) (5,062)
Items that will not be reclassified
subsequently to profit or loss - - - (6,282) (6,282)
Items that may be reclassified
subsequently to profit or loss - - (34) - (34)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Total comprehensive losses for
the year - - (34) (11,344) (11,378)
Movement in respect of employee
share scheme - (27) - - (27)
Employee share option scheme:
- value of services provided - 46 - - 46
Balance at 31 December 2020 531 5,462 586 (17,972) (11,393)
--------------------------------------- --------- ---------- ------------- ---------- ---------
Consolidated interim statement of financial position
At 31 December
2020
At 30 June At 30 June GBP'000
2021 2020
GBP'000 GBP'000 (Audited)
(Unaudited) (Unaudited)
Note
-------------------------------- --------- ----------------- ----------------- ---------------
Assets
Non-current assets
Intangible assets - Goodwill 1,818 1,867 1,855
Intangible assets - Other 1,014 1,147 1,038
Property, plant and equipment 1,546 1,397 1,819
Right of use assets 5,461 6,153 5,774
Deferred tax assets 3,867 4,875 5,114
Other receivables 2,263 1,900 2,263
-------------------------------- --------- ----------------- ----------------- ---------------
15,969 17,339 17,863
-------------------------------- --------- ----------------- ----------------- ---------------
Current assets
Inventories 14 24 24
Trade and other receivables 9 11,895 7,697 10,624
Current tax assets 1,005 240 976
Cash and cash equivalents 14 9,785 13,415 10,284
-------------------------------- --------- ----------------- ----------------- ---------------
22,699 21,376 21,908
-------------------------------- --------- ----------------- ----------------- ---------------
Total assets 38,668 38,715 39,771
-------------------------------- --------- ----------------- ----------------- ---------------
Equity
Capital and reserves attributable to the Company's
equity holders
Share capital 10 531 531 531
Other reserves 5,263 5,386 5,462
Cumulative translation reserve 554 627 586
Retained earnings (12,831) (15,333) (17,972)
-------------------------------- --------- ----------------- ----------------- ---------------
Total equity (6,483) (8,789) (11,393)
-------------------------------- --------- ----------------- ----------------- ---------------
Liabilities
Non-current liabilities
Trade and other payables 50 464 50
Retirement benefit obligations 11 14,997 16,727 20,136
Borrowings 2,000 4,000 3,000
Lease liabilities 7,750 8,365 7,999
Provisions 1,027 593 1,004
-------------------------------- --------- ----------------- ----------------- ---------------
25,824 30,149 32,189
-------------------------------- --------- ----------------- ----------------- ---------------
Current liabilities
Trade and other payables 12 12,186 12,585 13,316
Current tax liabilities - 43 -
Borrowings 4,751 2,322 3,206
Lease liabilities 1,219 1,122 1,296
Provisions 1,171 1,283 1,157
-------------------------------- --------- ----------------- ----------------- ---------------
19,327 17,355 18,975
-------------------------------- --------- ----------------- ----------------- ---------------
Total liabilities 45,151 47,504 51,164
-------------------------------- --------- ----------------- ----------------- ---------------
Total equity and liabilities 38,668 38,715 39,771
-------------------------------- --------- ----------------- ----------------- ---------------
Consolidated interim statement of cash flows
Half year
to 30 June
Year ended
Half year 31 December
to 30 June 2020 2020
2021 GBP'000 GBP'000
GBP'000
Note (Unaudited) (Unaudited) (Audited)
------------------------------------------- ----- -------------- ------------- -------------
Cash flow from operating activities
Cash generated from operations 13 362 3,819 2,503
Interest paid (478) (421) (1,081)
Tax paid (127) (150) (197)
------------------------------------------- ----- -------------- ------------- -------------
Net cash generated (used in)/from
operating activities (243) 3,248 1,225
------------------------------------------- ----- -------------- ------------- -------------
Cash flow from investing activities
Purchase of property, plant and equipment (32) (140) (899)
Proceeds from sale of property, plant
and equipment - - 15
Interest received - - 4
Intangible assets expenditure (161) (99) (184)
Net cash used in investing activities (193) (239) (1,064)
------------------------------------------- ----- -------------- ------------- -------------
Cash flow from financing activities
Proceeds from loan - 6,000 6,000
Repayment of bank borrowings (1,000) - (1,000)
Repayment of other loan - (910) (910)
Proceeds/(repayment) from invoice
discounting 671 (641) (476)
Repayment of lease liabilities (599) (672) (825)
Net cash generated (used in)/from
financing activities (928) 3,777 2,789
------------------------------------------- ----- -------------- ------------- -------------
Net (decrease)/increase in cash (1,364) 6,786 2,950
Cash and cash equivalents at beginning
of period 9,565 6,625 6,625
Exchange (losses)/gain on euro bank
accounts (9) 4 (10)
------------------------------------------- ----- -------------- ------------- -------------
Cash and cash equivalents at end of
period 14 8,192 13,415 9,565
------------------------------------------- ----- -------------- ------------- -------------
Notes to the consolidated interim financial statements
1. General information
Christie Group plc is a public limited company incorporated in
and operating from England. The Company ordinary shares are traded
on the AIM Market operated by the London Stock Exchange. Christie
Group plc is the parent undertaking of a group of companies
covering a range of related activities. These fall into two
divisions - Professional & Financial Services and Stock &
Inventory Systems & Services. Professional & Financial
Services principally covers business valuation, consultancy &
agency, business mortgages & insurance services and business
appraisal. Stock & Inventory Systems & Services covers
stock audit & counting, consulting, compliance, inventory
preparation & valuation and hospitality & software
solutions.
2. Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with United Kingdom
adopted IFRS. The financial information has been prepared on the
basis of IFRS that the Directors expect to be endorsed by the UKEB
as at the date of approval of the 31 December 2021 accounts.
The interim financial statements have been prepared in
accordance with IAS 34 and the accounting policies applied in the
financial statements for the year ended 31 December 2020. Taxes on
income in the interim periods are accrued using the effective tax
rate that would be applicable to expected total annual
earnings.
Going concern
Having reviewed the Group's budgets, projections and funding
requirements to 31(st) December 2022, and taking account of
reasonable possible changes in trading performance over this
period, particularly in light of Covid-19 risks and counter
measures, the Directors believe they have reasonable grounds for
stating that the Group has adequate resources to continue in
operational existence for the foreseeable future. Accordingly, the
Directors continue to adopt the going concern basis in preparing
these interim accounts.
The forecasts for the combined Group projections, taking account
of reasonably possible changes in trading performance, indicate
that the Group has sufficient facilities and headroom to continue
in operational existence to 31(st) December 2022. As a consequence,
the Board believes that the Group is well placed to manage its
business risks, and longer-term strategic objectives.
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 2020 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 2020 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 2021 and 30 June 2020 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 discussed below.
(a) Estimated impairment of goodwill
Goodwill are subject to an impairment review both annually and
when there are indications that the carrying value may not be
recoverable. The recoverable amounts of cash-generating units have
been determined based on value-in-use calculations. These
calculations require the use of estimates.
(b) Retirement benefit obligations
The assumptions used to measure the expense and liabilities
related to the Group's defined benefit pension plans are reviewed
biannually at the statement of financial position date by
professionally qualified, independent actuaries, trustees and
management as appropriate. Management base their assumptions on
their understanding and interpretation of applicable scheme rules
which prevail at the statement of financial position date. The
measurement of the expense for a period requires judgement with
respect to the following matters, among others:
- the probable long-term rate of increase in pensionable pay;
- the discount rate; and
- the estimated life expectancy of participating members.
The assumptions used by the Group, may differ materially from
actual results, and these differences may result in a significant
impact on the amount of pension expense recorded in future periods.
In accordance with IAS 19, the Group recognises all actuarial gains
and losses immediately in other comprehensive income.
(c) Deferred taxation
Deferred tax assets are recognised to the extent that the Group
believes it is probable that future taxable profit will be
available against which temporary timing differences and losses
from previous periods can be utilised. Management judgement is
required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future
taxable profits together with future tax planning strategies.
4. Other income - government grants
The Group has benefited from Government support due to the
Covid-19 business disruption, utilising the furlough scheme from
its commencement which has provided financial assistance towards
employee salaries. Government grants have been recognised in the
Consolidated Interim Income Statement, under the category Other
income - government grants.
5. Segment information
The Group is organised into two main business segments:
Professional & Financial Services (PFS) and Stock &
Inventory Systems & Services (SISS).
The segment results for the period ended 30 June 2021 are as
follows:
PFS SISS Other Group
GBP'000 GBP'000 GBP'000 GBP'000
------------------------- ---------- ---------- ---------- ----------
Total gross segment
revenue 20,624 8,018 1,700 30,342
Inter-segment revenue (55) - (1,700) (1,755)
------------------------- ---------- ---------- ---------- ----------
Revenue 20,569 8,018 - 28,587
------------------------- ---------- ---------- ---------- ----------
Operating profit/(loss) 3,092 (1,285) - 1,807
Finance costs (527) (82) - (609)
------------------------- ---------- ---------- ---------- ----------
Profit/(loss) before
tax 2,565 (1,367) - 1,198
Taxation (367)
------------------------- ---------- ---------- ---------- ----------
Profit for the period after tax 831
------------------------------------- ---------- ---------- ----------
The segment results for the period ended 30 June 2020 are as
follows:
PFS SISS Other Group
GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ---------- ---------- ---------- ----------
Total gross segment
revenue 11,492 7,407 1,535 20,434
Inter-segment revenue (55) - (1,535) (1,590)
----------------------- ---------- ---------- ---------- ----------
Revenue 11,437 7,407 - 18,844
----------------------- ---------- ---------- ---------- ----------
Operating loss (2,863) (2,615) - (5,478)
Finance costs (416) (106) - (522)
----------------------- ---------- ---------- ---------- ----------
Loss before tax (3,279) (2,721) - (6,000)
Taxation 1,140
----------------------- ---------- ---------- ---------- ----------
Loss for the period after tax (4,860)
----------------------------------- ---------- ---------- ----------
The segment results for the year ended 31 December 2020 are as
follows:
PFS SISS Other Group
GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ---------- ---------- ---------- ----------
Total gross segment
revenue 26,320 16,014 3,123 45,457
Inter-segment revenue (110) - (3,123) (3,233)
----------------------- ---------- ---------- ---------- ----------
Revenue 26,210 16,014 - 42,224
----------------------- ---------- ---------- ---------- ----------
Operating loss (1,863) (3,164) - (5,027)
Finance costs (824) (227) (261) (1,312)
----------------------- ---------- ---------- ---------- ----------
Loss before tax (2,687) (3,391) (261) (6,339)
Taxation 1,277
----------------------- ---------- ---------- ---------- ----------
Loss for the year after tax (5,062)
----------------------------------- ---------- ---------- ----------
Revenue recognised in the period has been derived from the
provision of services provided when the performance obligation has
been satisfied.
6. 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.
7. 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, once
performance conditions are met. 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 issued 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 Half year Year ended
to to 31 December
30 June 2021 30 June 2020 2020
GBP'000 GBP'000 GBP'000
---------------------------------------- -------------- -------------- --------------
Profit/(loss) attributable to the
equity holders 831 (4,860) (5,062)
---------------------------------------- -------------- -------------- --------------
31 December
30 June 2021 30 June 2020 2020
Thousands Thousands Thousands
---------------------------------------- -------------- -------------- --------------
Weighted average number of ordinary
shares in issue 26,220 26,211 26,220
Adjustment for share options 340 1,809 843
---------------------------------------- -------------- -------------- --------------
Weighted average number of ordinary
shares for diluted earnings per share 26,560 28,020 27,063
---------------------------------------- -------------- -------------- --------------
31 December
30 June 2021 30 June 2020 2020
Pence Pence Pence
---------------------------------------- -------------- -------------- --------------
Basic earnings per share 3.17 (18.54) (19.32)
Diluted earnings per share 3.13 (18.54) (19.32)
---------------------------------------- -------------- -------------- --------------
8. Dividends
An interim dividend in respect of 2021 of 1.00p per share,
amounting to a dividend of GBP265,000, was declared by the
directors at their meeting on 14 September 2021. These financial
statements do not reflect this dividend payable.
The dividend of 1.00p per share will be payable to shareholders
on the record on 1 October 2021. The dividend will be paid on 29
October 2021.
No dividend in respect of 2020 was declared or made in respect
in 2020.
9. Trade and other receivables
Half year to Half year to Year ended
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
----------------------------------------------- -------------- -------------- ------------------
Trade receivables 7,272 3,097 4,985
Less: provision for impairment of receivables (704) (861) (681)
Other debtors 2,973 2,075 2,930
Prepayments and accrued income 2,354 3,386 3,390
11,895 7,697 10,624
----------------------------------------------- -------------- -------------- ------------------
The fair value of trade and other receivables approximates to
the carrying value as detailed above
10. Share capital
30 June 2021 30 June 2020 31 December
2020
Ordinary shares of 2p each Number GBP'000 Number GBP'000 Number GBP'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 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.
11. Retirement benefit obligations
The Group operates two defined benefit schemes (closed to new
members) providing pensions on final pensionable pay. The
contributions are determined by qualified actuaries based on
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 obligation outstanding of GBP14,997,000 (30 June 2020:
GBP16,727,000; 31 December 2020: GBP20,136,000) includes
GBP1,353,000 (30 June 2020: GBP1,359,000; 31 December 2020:
GBP1,449,000) payable to David Rugg by Christie Group plc. The
movement in the pension liability attributable to David Rugg's
pension arises entirely from a change in the actuarial assumptions
used and the discount rate applied. There have been no changes to
the amounts payable to Mr Rugg.
The defined benefit obligation as at 30 June 2021 is calculated
on a year-to-date basis, using the latest actuarial valuation as at
30 June 2021. There have been no significant market fluctuations
and significant one-off events, such as plan amendments,
curtailments and settlements that have resulted in an adjustment to
the actuarially determined pension cost since the end of the prior
financial year. The defined benefit plan assets have been updated
to reflect their market value at 30 June 2021. However, significant
market fluctuations have caused a change in the discount rate
applied to the defined benefit obligation resulting in a decrease
in the liability.
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 2021 after adjusting for the actual
contributions to be paid in the period.
11. Retirement benefit obligations (continued)
In addition, the Group operates a defined contribution scheme
for participating employees. Payments to the scheme are charged as
an employee benefit as they fall due. The Group has no further
payment obligations once the contributions have been paid.
The movement in the liability recognised in the statement of
financial position is as follows:
Half year Year ended
Half year to to 31 December
30 June 2021 30 June 2020 2020
GBP'000 GBP'000 GBP'000
----------------------------------------------------- -------------- -------------
Beginning of the period 20,136 12,011 12,011
Expenses included in the employee benefit
expense 208 211 375
Contributions paid (128) (326) (463)
Finance costs 130 110 216
Pension paid (28) (27) (55)
Actuarial (gains)/losses recognised (5,321) 4,748 8,052
End of the period 14,997 16,727 20,136
------------------------------------------- -------- -------------- -------------
The amounts recognised in the income statement and statement of
comprehensive income are as follows:
Half year Year ended
Half year to to 31 December
30 June 2021 30 June 2020 2020
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------------- -------------
Current service cost 208 211 375
Total included in employee benefit
expenses 208 211 375
--------------------------------------- -------- -------------- -------------
Net interest cost 130 110 216
--------------------------------------- -------- -------------- -------------
Total included in finance costs 130 110 216
--------------------------------------- -------- -------------- -------------
Actuarial (gains)/losses (5,321) 4,748 8,052
Total included in other comprehensive
income (5,321) 4,748 8,052
--------------------------------------- -------- -------------- -------------
The principal actuarial assumptions used were as follows:
Half year Half year Year ended
to to 30 June 31 December
2020 2020
30 June % %
2021
%
-------------------------- ------------ ------------ -------------
Discount rate 1.90 1.60 1.40
Inflation rate 3.20 2.80 2.95
Future salary increases 1.00 - 2.00 1.00 - 2.00 1.00 - 2.00
Future pension increases 2.20 - 3.40 2.05 - 3.50 2.10 - 3.30
-------------------------- ------------ ------------ -------------
Assumptions regarding future mortality experience were
consistent with those disclosed in the financial statements for the
year ended 31 December 2020.
12. Trade and other payables
Half year to Half year to Year ended
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
--------------------------------- -------------- -------------- ------------------
Trade payables 1,222 2,067 2,568
Other taxes and social security 5,040 6,796 6,358
Accruals and other creditors 5,924 3,722 4,390
12,186 12,585 13,316
--------------------------------- -------------- -------------- ------------------
13. Note to the cash flow statement
Cash generated from operations
Half year Half year
to to Year ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
-------------------------------------------- ---------- ---------- -------------
Continuing operations
Profit/(loss) for the period 831 (4,860) (5,062)
Adjustments for:
- Taxation 367 (1,140) (1,277)
- Finance costs 479 412 1,096
- Depreciation 839 938 1,818
- Amortisation of intangible assets 186 337 390
- Profit on sale of property, plant
and equipment - - (5)
- Foreign currency translation 36 7 45
- Increase in provisions 37 43 328
- Movement in share option charge 30 33 46
- Movement in retirement benefits
obligation (52) (142) (143)
- Movement in non-current other receivable - 1 (362)
Movement in working capital:
- Decrease in inventories 10 11 11
- (Increase)/decrease in trade and
other receivables (1,271) 7,216 4,290
- (Decrease)/increase in trade and
other payables (1,130) 963 1,328
-------------------------------------------- ---------- ---------- -------------
Cash generated from operations 362 3,819 2,503
-------------------------------------------- ---------- ---------- -------------
14. Cash and cash equivalents
Half year Half year
to to Year ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- -------------
Cash and cash equivalents 9,785 13,415 10,284
Bank overdrafts (1,593) - (719)
--------------------------- ---------- ---------- -------------
8,192 13,415 9,565
--------------------------- ---------- ---------- -------------
The Group is operating within its existing banking
facilities.
15. Related-party transactions
There is no controlling interest in the Group's shares.
During the period rentals of GBP242,000 (30 June 2020:
GBP239,000; 31 December 2020: GBP478,000) were payable 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.
16. Publication of Interim Report
The 2021 Interim Financial Statements are available on the
Company's website www.christiegroup.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR GZGMLVNZGMZM
(END) Dow Jones Newswires
September 20, 2021 02:00 ET (06:00 GMT)
Christie (LSE:CTG)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Christie (LSE:CTG)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024