Christie Regulatory News (CTG)

16 June 2021

Christie Group plc("Christie Group" or the "Company")

AGM Statement

Christie Group plc (CTG.L), the leading provider of Professional & Financial Services and Stock & Inventory Systems & Services to the hospitality, leisure, healthcare, medical, childcare & education and retail sectors, announces that at today's Annual General Meeting, the Chairman and Chief Executive, David Rugg, will make the following statement:

"Dear Shareholders, The Recovery Continues 

I am pleased to report that the recovery that first emerged in the second half of 2020 continues. The business is progressing well and has traded in line with market expectations.

 Professional & Financial Services

We are seeing strong performances across most parts of our Professional & Financial Services Division.

Our UK businesses have led the way with progress, despite being locked down again from early January 2021.

By the end of May, Christie & Co, had exchanged or completed contracts on the sale of 164 hospitality businesses alone and a retail business for every working day of the year so far.

Central & Eastern Europe have contributed to an encouraging start, but the Mediterranean countries await the advent of this summer season. Elsewhere we are currently experiencing strong buyer demand across each of the trade sectors we serve.

The breadth of our sector specialisations is illustrated by our involvement in a variety of transactions. The sale of The Essex Smile Centre in Rayleigh to Dentex Healthcare Group limited, one of the fastest growing dental corporates in the UK, Red Mist Leisure an award winning pub company to Red Lion Holdings for a guide price of £20m, the 181 bedroom Hilton Warwick / Stratford- upon- Avon, the 1000 year old 5 star Schloss Pichlarn Hotel in the Austrian Alps, 27 Pizza Hut Delivery units to Starboard Hotels who are diversifying their hospitality portfolio in a growing sector, 7 petrol stations in northern England to Certas Energy UK Limited and the former Rastrick Independent School & Day Nursery in Brighouse.

Our appraisal practice, Pinders, has experienced an upturn in the number of valuations commissioned in respect of asset-rich businesses raising additional loans to tide them over for short term cash flow requirements. As businesses reopen, we expect lenders to seek our assistance in reviewing their exposure to businesses impacted by the pandemic. Pinders intends to relaunch its graduate training programme in July. Its building services division is operating at pre Covid levels and is recruiting.

At Christie Finance we have now processed our last CBILS loans. The successor Recovery Loan Scheme is being utilised by the Challenger Banks for both secured and unsecured lending. Such lending is typically only accessible via an accredited broker. Therefore, for Christie Finance the outlook for loans granted is further improved. We were pleased to raise the funding for the MBO of Auckland Care, a specialist provider for adults with learning difficulties.

Working with Christie Finance, Christie Insurance can assist their clients with overcoming concerns where they need to give a personal guarantee; the cover includes existing or new personal guarantees and may include lease guarantees.

Stock & Inventory Systems & Services

After the lockdown ended, our licensed trade stock auditing business, Venners, is now experiencing a return of clients as premises opened internally (in England) from 17th May. We anticipate Venners schedule of visits will be over 50% operative by the end of July. Earlier this year we were pleased to complete 98 change valuations pursuant to the takeover of Brains pubs by Marston.

Our Retail stocktaking business, Orridge, is reaping the benefits from its reorganisation and restart in 2020. So too are its clients, receiving the highest service level ever achieved. Recent M&A activity in the sector should unleash further opportunity for us in the UK, France & Benelux. Clients who require a duopoly of service provision will not accept sole supplier status created by provider mergers.

Our Orridge Pharmacy division conducted its largest stocktake event to enable the transfer of the 57 branch Dudley Taylor chain to Avicenna. New business wins have primarily been generated for our supply chain service. We look forward to benefit from the occupancy of our own vehicles increasing, once precautionary covid measures are lifted as well as the benefits to be gained from investment in hybrid vehicles.

Vennersys, our SaaS provider, experienced a surge in online ticket sales that had hitherto been absent this year. It anticipates further increases in volumes when social distancing measures are relaxed. The business has activated a record 18 attractions for new users of our ERP system since Easter, including Hurst Castle, the British Motor Museum and Sky Park Farm.

Our staff

I thank all our teams for their considerable achievements in trying times. I commend the management of our seven trading businesses for ensuring the wellbeing and morale of our colleagues.

 My particular thanks are expressed to our management in continental Europe who have led the charge without any physical interaction with our UK headquartered team. Lastly, the initiative and energy of your executive and the support of the wider board has been both spontaneous and essential.

Directorate changes

I would like to thank Victoria Muir, who is retiring from the board today after completing a three-year term. In particular, for her help in modernising our corporate governance practice and chairing independent and objective nominations processes and subsidiary MD appointments committees. To have achieved this excellence through the pandemic is a greater achievement. We are most appreciative and wish her well.

 Chris Day retires from the board at today's AGM. I place on record my personal thanks to Chris Day and also my thanks on behalf of all those who served with Chris on our Group board over the past 25 years. Chris has been an inspiration to a generation in our business.

Andrew Doyle joined our board on 1 June 2021 and therefore stands for re-election today. We welcome his strategic engagement and oversight in our operation and growth. Andrew has agreed to chair the Nominations Committee.

 Simon Herrick joined our board on 1 May 2021 and therefore also stands for re-election today. We welcome Simon who has accepted the chair of the Audit Committee.  

Summary

Most of the businesses upon which our services are focused are property based. Historically, these have provided a hedge against inflation. Each of our services and all of our sectors are in demand.

We expect further progress once our remaining hospitality markets fully re-open for business both here and in mainland Europe. Based upon current momentum we look forward to a strong second half.

 I wish you well."

Enquiries:

Christie Group plc

David Rugg 01908 920594

Chairman and Chief Executive

Dan Prickett 01908 920537

Chief Operating Officer

Shore Capital:

Patrick Castle 020 7408 4090

Nominated Adviser & Broker

Notes to Editors:

Christie Group plc, 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 under the Market Abuse Regulations (EU) No. 596/2014.

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