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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Christie Group Plc | LSE:CTG | London | Ordinary Share | GB0001953156 | ORD 2P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2.50 | 2.63% | 97.50 | 95.00 | 100.00 | 97.50 | 95.00 | 95.00 | 2,719 | 16:29:20 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Business Services, Nec | 69.23M | 3.21M | 0.1210 | 8.06 | 25.86M |
From Apr 2019 to Apr 2024
TIDMCTG
RNS Number : 5323D
Christie Group PLC
29 October 2020
29 October 2020
Christie Group plc
Interim Results for the six months ended 30 June 2020
Christie Group plc ('Christie Group' or the 'Group'), the leading provider of Professional & Financial Services and Stock & Inventory Systems & Services 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 2020.
H1 2020 Headlines:
-- Revenues amounted to GBP18.8m (H1 2019: GBP38.1m) -- Operating loss of GBP5.5m (H1 2019: GBP1.5m profit) -- Prudently foregone an interim dividend this year (H1 2019: 1.25p per share) -- Strong cash balance at 30 June 2020 of GBP13.4m -- Stocktaking more than 50% back as businesses reopen
Commenting on the results, David Rugg, Chairman and Chief Executive of Christie Group, said:
"The Group's performance was impacted by the outbreak of Covid-19 and the subsequent difficult trading conditions associated with the lockdown. However, all businesses have resumed to the extent now possible. Our third quarter trading has been encouraging and, if it continues, should lead to a much improved second half."
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 Antonio Bossi Nominated Adviser and Broker 020 7408 4090
Notes to Editors:
Christie Group plc (CTG.L), quoted on AIM, is a leading professional business services group with 41 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 Group to constitute inside information under the market Abuse Regulation (EU) No. 596/2014.
For more information, please go to www.christiegroup.com .
Chairman and Chief Executive's review
Our revenue for the six months ended 30 June 2020 amounted to GBP18.8m (H1 2019: GBP38.1m), approximately 50% of that generated in the first half of 2019. This reduction was entirely attributable to the business interruption caused by the Covid-19 pandemic, illustrating the scale of its impact.
We acted swiftly and decisively to mitigate its effects to the fullest extent possible and in doing so limited an unavoidable first half operating loss to GBP5.5m, which compares to a GBP1.5m operating profit reported for H1 2019.
While unprecedented, the first half loss was rather better than our revised projections for the period and I am pleased to advise that we have continued to trade ahead of those expectations in the third quarter.
We continue to avail ourselves of all government help and support. The additional gross profit from the GBP19m foregone Q2 revenue would if traded through, in the opinion of your board, have been more than sufficient to have offset the trading loss recorded plus the UK government's Covid-related support and the similar support received from foreign governments.
Cash collection and retention were strong with limited bad debt experience and we finished the half year with over GBP13.4m cash in hand, boosted by the drawdown of the Coronavirus Large Business Interruption Loan Scheme (CLBILS) loan in June.
Professional & Financial Services
Our PFS division recorded an operating loss of GBP2.9m for the period (H1 2019: GBP2.3m profit), from depressed revenues of GBP11.5m (H1 2019: GBP21.3m).
The momentum for 2019 initially continued into 2020. Confidence flagged in mid-March as the pandemic took hold. Active users of our website increased by 46% from April to the end of June and user sessions increased by 63%. Notwithstanding our teams' inability to physically visit businesses or for new prospective purchasers to do so, we nonetheless received 757 offers to purchase, agreed 208 deals and contracted 98 sales during the lockdown period.
Certain sectors, most notably the pharmacy sector and food retailers, were impacted less than others and demand held up well. In March we launched the sale of a portfolio of 44 surplus Boots pharmacies to a receptive market.
In Hospitality, we sold the Chrysos Hotel, overlooking a garden square in London, Paddington, to Touriste Collection of Paris for GBP18 million in a cross-border deal and we acted as agents for the sale of The Mitre Hotel at Hampton Court which was sold for the first time in 30 years.
Internationally, we transacted with SAS Societe Vosgienne, Ibis Styles, Holiday Inn Calais Coquelles, Tryp Wolfsburg, Teikyo Campus and Schloss Reinfels.
In Care we arranged agreement for lease and forward-funded a number of investment sales at yields as keen as 4%. First half highlights, included our creation of the sale & leaseback of The Holmes Care Group for GBP47.5m to Impact Healthcare REIT plc, with the deal exchanging on 9 March, and more recently we acted on behalf of Legal & General who sold their investment in the BMI Woodlands Hospital, Darlington for GBP29.4 million.
In Childcare, a bumper start to the year included the sale of the Kids Allowed Group, comprising 8 locations across South Manchester and Cheshire, to Kids Planet. Whilst in Education, we completed the sale of the former Excel English college and Heathfield Knoll School, established in 1620. Many children were removed from day care and their home-working parents sought to provide home learning. These children are returning to external provision either near to home or near to the parents' place of employment, depending upon where their work is now based.
The furlough scheme allowed us to retain Business Valuers, Surveyors, Consultants & other Sector specialists during lockdown. The introduction of flexible furlough from July then enabled us to match their availability with the demand for our services.
Our Financial Services business continued on a par with prior year activity. CBILS, and Bounce Back ("BBLS") loans provided a new source of funding which gained in momentum as the year progressed.
Insurance rates, upon which our commissions are based, have hardened.
Stock & Inventory Systems & Services
Our SISS division achieved revenues of GBP7.4m in the period, a significant reduction compared to the GBP16.8m reported in H1 2019. The first half operating loss increased to GBP2.6m as a result (H1 2019: GBP0.7m).
Encouragingly, post-lockdown demand for our retail stocktaking services quickly ignited. Our food retailing clients have been trading briskly and most quickly sought our resumption. Our UK retail business has made a positive contribution in the third quarter, with reorganisation in progress. We quickly brought back our sales team to meet enquiries and re-engaged our supply chain management to handle new business.
Internationally, we faced few border closures. In Germany, we traded throughout where permitted and in Belgium and France have recommenced stocktaking activity.
Our licensed trades stocktaking business, Venners, endured a shutdown whilst Pubs, Hotels, Restaurants, Sports venues & theatres were closed. We are, since they reopened, back up and running.
Many businesses in London and other city centres have yet to reopen, including contributors to the night-time economy. Our trade is increasing, and we anticipate utilising the new Job Support Scheme to maintain our skilled workforce.
Vennersys, our cloud-based enterprise SaaS, enjoyed an extraordinary uptake in on-line sales once visitor attractions were able to re-open. Covid-19 necessitated the eradication of queues through the introduction of pre-sold and timed ticketing. Eight existing Venpos clients launched their venues on-line for the first time. New clients included Treasure Island, Bear Feet and Lincolnshire Wildlife Park.
Vennersys's web-based food & drink ordering system requires no app download by the customers. It can be used across any and every venue using our Venpos on-line element. For users of our enterprise system, food ordering comes fully integrated to existing point of sale, revenue & stock management systems and the accompanying reporting suite.
Director Change
Laurie Benson a Non-executive Director steps down from the board shortly after serving a three-year term. We have benefitted from Laurie's knowledge of digital systems, social media and remuneration structures, for which we are most grateful, and I thank her on your behalf.
Summary and Outlook
The ability of our field-based staff and workers to operate effectively has been largely unaffected by changing work practice. Our temporarily home-based staff mostly now look forward to returning to their offices. They have in the main coped magnanimously. I thank both these groups of colleagues and our central team for their unflagging efforts and enterprise.
In aggregate our pipelines of ongoing transactions were maintained throughout lockdown. For those requesting funding, the lender requirement for a valuation has also been maintained. Reopened businesses require stocktaking. Open or closed, insurance is required.
In view of the necessary but disappointing localised lock downs and further Covid-19 related restrictions, we have prudently opted to forgo the declaration of an interim dividend this year (H1 2019: 1.25p per share).
We are well resourced and our third quarter trading has been encouraging.
I wish you well.
David Rugg
Chairman and Chief Executive
Consolidated interim income statement
Hot Features
Premium
Half year Half year
to 30 June to 30 June
Year ended
31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Note (Unaudited) (Unaudited) (Audited)
------------------------------------ ----- ------------- ------------- -------------
Revenue 18,844 38,140 78,041
Other income - government grant 4 5,047 - -
Employee benefit expenses (21,209) (27,179) (53,754)
----------------------------------------- ----- ------------- ------------- -------------
2,682 10,961 24,287
Depreciation and amortisation (1,274) (1,115) (2,405)
Impairment reversal - - 22
Gain on sale and leaseback of
property - - 1,531
Other operating expenses (6,886) (8,331) (17,664)
----------------------------------------- ----- ------------- ------------- -------------
Operating (loss)/profit (5,478) 1,515 5,771
Finance costs (522) (624) (1,351)
Finance income - - 2
Total finance charge (522) (624) (1,349)
----------------------------------------- ----- ------------- ------------- -------------
(Loss)/profit before tax (6,000) 891 4,422
Taxation 6 1,140 (187) (409)
----------------------------------------- ----- ------------- ------------- -------------
(Loss)/profit for the period after
tax (4,860) 704 4,013
(Loss)/profit for the period after tax attributable to:
Equity shareholders of the parent (4,860) 704 4,013 ------------------------------------ -------- ---- ------
Earnings per share attributable to equity holders - pence
Basic 7 (18.54) 2.68 15.30 Diluted 7 (18.54) 2.63 14.87 --------- -------- ----- ------
All amounts derive from continuing operations.
Consolidated interim statement of comprehensive income
Half year Half year
to 30 June to 30 June
Year ended
31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
(Unaudited) (Unaudited) (Audited)
--------------------------------------------- ---- ------------- ------------- -------------
(Loss)/profit for the period after tax (4,860) 704 4,013
--------------------------------------------------- --- ------------- ------------- -------------
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translating
foreign operations 7 (6) (145)
--------------------------------------------------- --- ------------- ------------- -------------
Net other comprehensive income/(losses)
to be reclassified to profit or loss
in subsequent periods 7 (6) (145)
--------------------------------------------------- --- ------------- ------------- -------------
Items that will not be reclassified
to profit or loss:
Re-measurement (losses)/gains on defined
benefit plans (4,748) 1,105 1,207
Income tax effect 903 (187) (205)
--------------------------------------------------- --- ------------- ------------- -------------
Net other comprehensive (losses)/income
not being reclassified to profit or
loss in subsequent periods (3,845) 918 1,002
--------------------------------------------------- --- ------------- ------------- -------------
Other comprehensive (losses)/income
for the period (3,838) 912 857
--------------------------------------------------- --- ------------- ------------- -------------
Total comprehensive (losses)/income
for the period (8,698) 1,616 4,870
--------------------------------------------------- --- ------------- ------------- -------------
Total comprehensive (losses)/income attributable to:
Equity shareholders of the parent (8,698) 1,616 4,870 ------------------------------------ -------- ------ ------
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 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)
------------------------------------------- --------- ---------- ------------- ---------- -----------
Half year to 30 June 2019 (unaudited)
Balance at 1 January 2019 531 5,357 765 (9,032) (2,379)
------------------------------------------- --------- ---------- ------------- ---------- ---------
Restated impact of IFRS 16 - - - (1,821) (1,821)
------------------------------------------- --------- ---------- ------------- ---------- ---------
Restated adjusted balance at 1
January 2019 531 5,357 765 (10,853) (4,200)
------------------------------------------- --------- ---------- ------------- ---------- ---------
Profit for the period after tax - - - 704 704
Items that will not be reclassified
subsequently to profit or loss - - - 918 918
Items that may be reclassified
subsequently to profit or loss - - (6) - (6)
------------------------------------------- --------- ---------- ------------- ---------- ---------
Total comprehensive income/(losses)
for the period - - (6) 1,622 1,616
Movement in respect of employee
share scheme - 29 - - 29 Employee share option scheme: - value of services provided - (45) - - (45) Dividends payable - - - (462) (462) ------------------------------------------- --------- ---------- ------------- ---------- --------- Balance at 30 June 2019 531 5,341 759 (9,693) (3,062) ------------------------------------------- --------- ---------- ------------- ---------- --------- Year ended 31 December 2019 (audited) ---------------------------------------------------------------------------------------------------------- Balance at 1 January 2019 531 5,357 765 (9,032) (2,379) ------------------------------------------- --------- ---------- ------------- ---------- --------- Impact of IFRS 16 - - - (1,821) (1,821) ------------------------------------------- --------- ---------- ------------- ---------- --------- Adjusted balance at 1 January 2019 531 5,357 765 (10,853) (4,200) ------------------------------------------- --------- ---------- ------------- ---------- --------- Profit for the year after tax - - - 4,013 4,013 Items that will not be reclassified subsequently to profit or loss - - - 1,002 1,002 Items that may be reclassified subsequently to profit or loss - - (145) - (145) ------------------------------------------- --------- ---------- ------------- ---------- --------- Total comprehensive income/(losses) for the year - - (145) 5,015 4,870 Movement in respect of employee share scheme - 27 - - 27 Employee share option scheme: - value of services provided - 59 - - 59 Dividends paid - - - (790) (790) ------------------------------------------- --------- ---------- ------------- ---------- --------- Balance at 31 December 2019 531 5,443 620 (6,628) (34) ------------------------------------------- --------- ---------- ------------- ---------- ---------
Consolidated interim statement of financial position
At 30 June At 31 December
2019 2019
At 30 June GBP'000 GBP'000
2020
Note GBP'000 (Restated (Audited)
and
(Unaudited) unaudited)
-------------------------------- --------- ----------------- ---------------- ----------------
Assets
Non-current assets
Intangible assets - Goodwill 1,867 1,856 1,810
Intangible assets - Other 1,147 1,320 1,243
Property, plant and equipment 1,397 3,639 1,557
Right of use assets 6,153 5,671 6,649
Deferred tax assets 4,875 2,822 2,649
Other receivables 1,900 1,913 1,901
-------------------------------- --------- ----------------- ---------------- ----------------
17,339 17,221 15,809
-------------------------------- --------- ----------------- ---------------- ----------------
Current assets
Inventories 24 15 35
Trade and other receivables 9 7,697 16,610 14,914
Current tax assets 240 158 240
Cash and cash equivalents 14 13,415 2,394 9,807
-------------------------------- --------- ----------------- ---------------- ----------------
21,376 19,177 24,996
-------------------------------- --------- ----------------- ---------------- ----------------
Total assets 38,715 36,398 40,805
-------------------------------- --------- ----------------- ---------------- ----------------
Equity
Capital and reserves attributable to the Company's
equity holders
Share capital 10 531 531 531
Other reserves 5,386 5,341 5,443
Cumulative translation reserve 627 759 620
Retained earnings (15,333) (9,693) (6,628)
-------------------------------- --------- ----------------- ---------------- ----------------
Total equity (8,789) (3,062) (34)
-------------------------------- --------- ----------------- ---------------- ----------------
Liabilities
Non-current liabilities
Trade and other payables 464 134 464
Retirement benefit obligations 11 16,727 12,641 12,011
Borrowings 4,000 546 -
Lease liabilities 8,365 6,314 8,737
Provisions 593 399 590
-------------------------------- --------- ----------------- ---------------- ----------------
30,149 20,034 21,802
-------------------------------- --------- ----------------- ---------------- ----------------
Current liabilities
Trade and other payables 12 12,585 10,367 11,574
Current tax liabilities 43 67 43
Borrowings 2,322 6,895 5,055
Lease liabilities 1,122 1,228 1,122
Provisions 1,283 869 1,243
-------------------------------- --------- ----------------- ---------------- ----------------
17,355 19,428 19,037
-------------------------------- --------- ----------------- ---------------- ----------------
Total liabilities 47,504 39,460 40,839
-------------------------------- --------- ----------------- ---------------- ----------------
Total equity and liabilities 38,715 36,398 40,805
-------------------------------- --------- ----------------- ---------------- ----------------
Consolidated interim statement of cash flows
Year ended
Half year Half year
to 30 June to 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Note (Unaudited) (Unaudited) (Audited)
------------------------------------------- ------- --------------- --------------- ---------------
Cash flow from operating activities
Cash generated from/(used in) operations 13 3,819 (1,103) 6,535
Interest paid (421) (115) (992)
Tax paid (150) (230) (361)
------------------------------------------- ------- --------------- --------------- ---------------
Net cash generated from/(used in)
operating activities 3,248 (1,448) 5,182
------------------------------------------- ------- --------------- --------------- ---------------
Cash flow from investing activities
Purchase of property, plant and equipment (140) (322) (540)
Proceeds from sale of property, plant
and equipment - - 5,082
Interest received - - 2
Intangible assets expenditure (99) (155) (326) Net cash (used in)/generated from investing activities (239) (477) 4,218 ------------------------------------------- ------- --------------- --------------- --------------- Cash flow from financing activities Proceeds from loan 6,000 - - Repayment of bank borrowings (910) (56) (653) (Repayment)/proceeds from invoice discounting (641) 705 37 Repayment of lease liabilities (672) (829) (1,596) Dividends paid - - (790) Net cash generated from/(used in) financing activities 3,777 (180) (3,002) ------------------------------------------- ------- --------------- --------------- --------------- Net increase/(decrease) in cash 6,786 (2,105) 6,398 Cash and cash equivalents at beginning of period 6,625 201 201 Exchange gain/(losses) on euro bank accounts 4 (6) 26 ------------------------------------------- ------- --------------- --------------- --------------- Cash and cash equivalents at end of period 14 13,415 (1,910) 6,625 ------------------------------------------- ------- --------------- --------------- ---------------
Notes to the consolidated interim financial statements
1. General information
Christie Group plc is a company incorporated in and operating from England. 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 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 2020.
The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2019, except for those noted below and except for the adoption of new standards and interpretations effective as of 1 January 2020. Taxes on income in the interim periods are accrued using the 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 2021, 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 2021. 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 2019 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 2019 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 2020 and 30 June 2019 is unaudited.
Prior period restatement
The prior period restatement was after reassessing the adoption of the implementation of IFRS 16 on the opening reserves for 1 January 2019, in light of information which was available at the year end. This assessment reduced opening reserves on 1 January 2019 by GBP760,000. There was no impact of the profit for the period.
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 and investments
Goodwill and investments 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 annually 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 grant
The Group has benefited from Government support across its UK and European entities, 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', as they are incurred.
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 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 period ended 30 June 2019 are as follows:
PFS SISS Other Group
GBP'000 GBP'000 GBP'000 GBP'000
------------------------- ---------- ---------- ---------- ----------
Total gross segment
revenue 21,348 16,847 1,638 39,833
Inter-segment revenue (55) - (1,638) (1,693)
------------------------- ---------- ---------- ---------- ----------
Revenue 21,293 16,847 - 38,140
------------------------- ---------- ---------- ---------- ----------
Operating profit/(loss) 2,284 (769) - 1,515
Finance costs (502) (122) - (624)
------------------------- ---------- ---------- ---------- ----------
Profit/(loss) before
tax 1,782 (891) - 891
Taxation (187)
------------------------- ---------- ---------- ---------- ----------
Profit for the period after tax 704
------------------------------------- ---------- ---------- ----------
The segment results for the year ended 31 December 2019 are as follows:
PFS SISS Other Group
GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ---------- ---------- ---------- ----------
Total gross segment
revenue 46,063 32,088 3,333 81,484
Inter-segment revenue (110) - (3,333) (3,443)
------------------------ ---------- ---------- ---------- ----------
Revenue 45,953 32,088 - 78,041
------------------------ ---------- ---------- ---------- ----------
Operating profit/(loss
) 6,224 (1,984) 1,531 5,771
Finance costs (915) (382) (52) (1,349)
------------------------ ---------- ---------- ---------- ----------
Profit/(loss) before
tax 5,309 (2,366) 1,479 4,442
Taxation (409)
------------------------ ---------- ---------- ---------- ----------
Profit for the year after tax 4,013
------------------------------------ ---------- ---------- ----------
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. 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 Half year Year ended
to to 31 December
30 June 2020 30 June 2019 2019
GBP'000 GBP'000 GBP'000
---------------------------------------- -------------- -------------- --------------
(Loss)/profit attributable to the
equity holders (4,860) 704 4,013
---------------------------------------- -------------- -------------- --------------
31 December
30 June 2020 30 June 2019 2019
Thousands Thousands Thousands
---------------------------------------- -------------- -------------- --------------
Weighted average number of ordinary
shares in issue 26,211 26,226 26,220
Adjustment for share options 1,809 564 755
---------------------------------------- -------------- -------------- --------------
Weighted average number of ordinary
shares for diluted earnings per share 28,020 26,790 26,975
---------------------------------------- -------------- -------------- --------------
31 December
30 June 2020 30 June 2019 2019
Pence Pence Pence
---------------------------------------- -------------- -------------- --------------
Basic earnings per share (18.54) 2.68 15.30
Diluted earnings per share (18.54) 2.63 14.87
---------------------------------------- -------------- -------------- --------------
8. Dividends
No dividends were declared or paid in the period to 30 June 2020. An interim dividend in respect of 2019 of 1.25p per share, amounting to a dividend of GBP326,000 was paid to shareholders on the record on 11 October 2019. The dividend was paid on 1 November 2019.
9. Trade and other receivables
Half year to Half year to Year ended
30 June 2020 30 June 2019 31 December 2019
GBP'000 GBP'000 GBP'000
----------------------------------------------- -------------- -------------- ------------------
Trade receivables 3,097 9,937 8,922
Less: provision for impairment of receivables (861) (634) (561)
Other debtors 2,075 1,985 1,512
Prepayments and accrued income 3,386 5,322 5,041
7,697 16,610 14,914
----------------------------------------------- -------------- -------------- ------------------
10. Share capital
30 June 2020 30 June 2019 31 December
2019
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 GBP16,727,000 (30 June 2019: GBP12,641,000; 31 December 2019: GBP12,011,000) includes GBP1,359,000 (30 June 2019: GBP1,254,000; 31 December 2019: GBP1,324,000) payable to David Rugg by Christie Group plc. The increase 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 2020 is calculated on a year-to-date basis, using the latest actuarial valuation as at 30 June 2020. 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 2020. However, significant market fluctuations have caused a change in the discount rate applied to the defined benefit obligation resulting in an increase 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 2020 after adjusting for the actual contributions to be paid in the period.
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 2020 30 June 2019 2019
GBP'000 GBP'000 GBP'000
---------------------------------------------------- -------------- -------------
Beginning of the period 12,011 14,119 14,119
Expenses included in the employee benefit
expense 211 197 386
Contributions paid (326) (717) (1,579)
Finance costs 110 175 346
Pension paid (27) (28) (54)
Actuarial losses/(gains) recognised 4,748 (1,105) (1,207)
End of the period 16,727 12,641 12,011
------------------------------------------- ------- -------------- -------------
The amounts recognised in the income statement and statement of comprehensive income are as follows:
as
Half year Year ended
Half year to to 31 December
30 June 2020 30 June 2019 2019
GBP'000 GBP'000 GBP'000
----------------------------------------------- -------------- -------------
Current service cost 211 197 386
Total included in employee benefit
expenses 211 197 386
--------------------------------------- ------ -------------- -------------
Net interest cost 110 175 346
--------------------------------------- ------ -------------- -------------
Total included in finance costs 110 175 346
--------------------------------------- ------ -------------- -------------
Actuarial losses/(gains) 4,748 (1,105) (1,207)
Total included in other comprehensive
income 4,748 (1,105) (1,207)
--------------------------------------- ------ -------------- -------------
The principal actuarial assumptions used were as follows:
Half year Half year Year ended
to 30 June to 30 June 31 December
2020 2019 2019
% % %
-------------------------- ------------ ------------ -------------
Discount rate 1.60 2.30 2.05
Inflation rate 2.80 3.20 - 3.30 2.95
Future salary increases 1.00 - 2.00 1.00 - 2.00 1.00 - 2.00
Future pension increases 2.05 - 3.50 2.20 - 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 2019.
12. Trade and other payables
Half year to Half year to Year ended
30 June 2020 30 June 2019 31 December 2019
GBP'000 GBP'000 GBP'000
--------------------------------- -------------- -------------- ------------------
Trade payables 2,067 1,686 2,487
Other taxes and social security 6,796 3,246 3,398
Accruals and other creditors 3,722 5,742 5,689
12,585 10,367 11,574
--------------------------------- -------------- -------------- ------------------
13. Note to the cash flow statement
Cash generated from operations
Half year Restated
to Half year Year ended
30 June to 31 December
2020 30 June 2019 2019
GBP'000 GBP'000 GBP'000
Continuing operations
(Loss)/profit for the period (4,860) 704 4,013
Adjustments for:
- Taxation (1,140) 187 409
- Finance costs 412 115 1,000
- Depreciation 938 885 1,936
- Amortisation of intangible assets 337 230 469
- Profit on sale of property, plant
and equipment - - (1,531)
- Foreign currency translation 7 6 12
- Increase/(decrease) in provisions 43 (61) 504
- Movement in share option charge 33 27 59
- Movement in retirement benefits
obligation (142) (548) (900)
- Movement in non-current other receivable 1 - 12
Movement in working capital:
- Decrease/(increase) in inventories 11 14 (6)
- Decrease/(increase) in trade and
other receivables 7,216 (1,737) (54)
- Increase/(decrease) in trade and
other payables 963 (925) 612
-------------------------------------------- ---------- --------------- -------------
Cash generated from/(used in) operations 3,819 (1,103) 6,535
-------------------------------------------- ---------- --------------- -------------
14. Cash and cash equivalents
Half year
to Half year Year ended
30 June to 31 December
2020 30 June 2019 2019
GBP'000 GBP'000 GBP'000
--------------------------- ---------- -------------- -------------
Cash and cash equivalents 13,415 2,394 9,807
Bank overdrafts - (4,304) (3,182)
--------------------------- ---------- -------------- -------------
13,415 (1,910) 6,625
--------------------------- ---------- -------------- -------------
The Group is operating within its existing banking facilities.
On the 1 June 2020, the Group drew down a GBP6.0m CLBILS loan. This is repayable over 3 years.
15. Related-party transactions
There is no controlling interest in the Group's shares.
During the period rentals of GBP239,000 (30 June 2019: GBP233,000; 31 December 2019: GBP468,000) 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. Contingent liabilities
At 30 June 2020 a subsidiary undertaking remained subject to an ongoing enquiry by HMRC to ensure continued compliance of National Minimum Wage Regulations. This subsidiary has previously been subject to enquiries in 2015 and 2017, both of which concluded with confirmation of compliance having examined a period from 2009 to 2017. The subsidiary's advisor, PwC, have very recently advised them that, following verbal confirmation from HMRC, a closure notice is expected to be issued imminently confirming that no minimum wage underpayments have been identified.
17. Publication of Interim Report
The 2020 Interim Financial Statements are available on the Company's website www.christiegroup.com
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END
IR PPGBAUUPUGQR
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