Christie Regulatory News (CTG)

7 Apr 2005 07:00

Christie Group PLC07 April 2005 CHRISTIE GROUP PLC 7th April 2005 Audited Preliminary Results for the year to 31 December 2004 Christie Group a leading business services and software group, today announces its preliminary results for the year ended December 2004 Highlights • Operating profit up 9% to £2.9 million (2003: £2.7 million)• Turnover up 12% to £70.0 million (2003: £62.5 million)• Gearing eliminated• 17p increase in net assets per share• Opened three additional Christie offices• Orridge now fully integrated and records first profit as turnover increases by 44%• VcsTimeless reports record number of contract wins Philip Gwyn, Chairman of Christie Group, said: 2004 was a year of continuing development for Christie Group. By investingfurther in our operations, systems and people, we sustained the progress ofrecent years and consolidated our position in our various markets. I am pleasedthat all three divisions had a successful year, and we ended 2004 with a much-strengthened balance sheet and with the prospect of good growth opportunities inall divisions in the UK and internationally. We intend to continue our strategyof growing our top line whilst re-investing for the long-term development of theGroup including, most recently, the January 2005 acquisition of West LondonEstates. Enquiries: Christie Group 020 7227 0707 Philip Gwyn, Chairman David Rugg, Chief Executive Robert Zenker, Finance DirectorBrunswick 020 7404 5959 Regina Kilfoyle or Ash Spiegelberg Notes to Editors Christie Group plc (CTG.L) is listed on the London Stock Exchange. A leadingbusiness services and software group with three business divisions: ProfessionalBusiness Services, Software Solutions; and Stock and Inventory Services. Thethree complementary businesses focus on the leisure, retail and care markets.Christie Group has 31 offices across Europe - located in the UK as well as inBelgium, France, Germany, Italy and Spain, and 1 office in Canada. For more information, please go to: www.christiegroup.com CHAIRMAN'S STATEMENT I am pleased to be able to report that the Group continued to make progressduring the year under review. Turnover increased to £70.0 million (2003:£62.5 million) and operating profit to £2.9 million (2003: £2.7 million). Theboard proposes a final dividend of 2p per share, bringing the dividend for theyear to 3p per share, the same as in the previous year. The UK Professional Services businesses (Christie & Co, Christie First andPinders) each enjoyed a solid year which has allowed us to open two furtherChristie & Co offices in the UK. These are located to the north and south ofLondon and, when taken together with our central London office, will give usmuch stronger representation in the Greater London and suburban areas generally. The Christie & Co international business, with offices in France, Germany andSpain, has continued to grow and we have opened a second office in Germany(adding Berlin to Frankfurt) which gives some measure of our confidence in thesemarkets. The two software solutions businesses, based in France and the UK, have beensuccessfully merged. This allows for more coherent management and we have beenable to attract more new customers to these businesses while the planned productdevelopment continues through 2005. In our Stock and Inventory division, Orridge increased sales by 44% and tradedprofitably. This was our second full year of ownership. Venners, which hasformed part of the Group for many years, continued to trade successfully. Two features have acted to improve our balance sheet. During the year, werenegotiated loans made to one of our subsidiaries and, in addition, the taxauthorities accepted dual residence status for our European agency offices withthe result that start-up losses can be set against UK profits. The net effectof these moves was to strengthen our balance sheet by £3.8 million. At the profit level, agency expansion and the development of the softwarebusiness continues to depress results but we remain confident that they willcontribute to the results in years ahead. I thank all our colleagues throughout our businesses which contributed to theseresults. PRELIMINARY STATEMENT OF AUDITED RESULTS AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31 DECEMBER 2004 Notes 2004 2003 £000 £000 Turnover 2 69,968 62,457 Staff costs (40,390) (34,933) 29,578 27,524Other operating charges before goodwill amortisation (26,095) (24,279) Goodwill amortisation (548) (551)Total other operating charges (26,643) (24,830)Operating profit 2 2,935 2,694Finance costs net (176) (206) Exceptional finance credit 3 2,455 -Total finance credit/(costs) 2,279 (206)Profit on ordinary activities before taxation 5,214 2,488 Tax on profit on ordinary activities 4 (240) (1,469)Profit on ordinary activities after taxation 4,974 1,019 Minority interest (10) -Profit for the financial year 4,964 1,019 Dividends 5 (710) (722) Retained profit for the year 4,254 297 Earnings per share - basic 6 20.09p 4.15p- fully diluted 6 19.79p 4.14p - basic before exceptional finance credit and credit for prior year tax losses 6 6.04p 4.15p All amounts derive from continuing activities. AUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESFOR THE YEAR ENDED 31 DECEMBER 2004 2004 2003 £000 £000 Profit for the financial year 4,964 1,019 Gain/(loss) on foreign currency translation 11 (240)Total recognised gains and losses relating to the year 4,975 779 AUDITED CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2004 2004 2003 Restated (note 1) £000 £000Fixed assetsIntangible assets 3,951 3,953Tangible assets 3,231 2,631Investment 100 100 7,282 6,684 Current assetsStocks 355 312Debtors 13,991 13,080Property held for resale 504 504Cash at bank and in hand 3,499 4,346 18,349 18,242 Creditors - amounts falling due within one year (11,955) (17,518)Net current assets 6,394 724Total assets less current liabilities 13,676 7,408 Creditors - amounts falling due after more than one year (2,108) (152)Net assets 11,568 7,256 Capital and reservesCalled up share capital 495 493Share premium 3,826 3,780Merger reserve 945 945Own shares (Employee Share Ownership Plan) (335) (324)Capital redemption reserve 10 10Profit and loss account 6,611 2,346 Shareholders' funds - equity interests 11,552 7,250Minority interest 16 6 11,568 7,256 AUDITED CONSOLIDATED CASHFLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2004 2004 2003 £000 £000 Net cash inflow from operating activities 3,688 4,151Returns on investments and servicing of finance (176) (206)Taxation paid (1,439) (1,067)Capital expenditure and financial investment (2,308) (1,262)Equity dividends paid (721) (597) Cash (outflow)/inflow before financing (956) 1,019Financing 311 (170) (Decrease)/increase in cash in the year (645) 849 2004 2003 £000 £000Reconciliation of net cash flow to movement in net funds/(debt) (Decrease)/increase in cash in the year (645) 849 Cash (outflow)/inflow from debt and lease financing (486) 185Change in net funds/(debt) resulting from cash flows (1,131) 1,034 Finance leases (88) (278) Exceptional finance credit 2,665 - Foreign currency translation 21 (133)Movement of net funds/(debt) in the year 1,467 623 Net debt at 1 January 2004 (350) (973)Net funds/(debt) at 31 December 2004 1,117 (350) NOTES TO THE PRELIMINARY STATEMENT OF AUDITED RESULTS 1. Accounting Policies The preliminary announcement has been prepared using accounting policies that are consistent with the policies detailed in the financial statements for the year ended 31 December 2003 except as detailed below: Changes in accounting policy and presentation Software development costs Development costs were previously charged to the profit and loss account whenincurred. Anticipating the adoption of International Financial ReportingStandards the group changed its policy and now capitalises expenditure onsoftware development which will provide long term commercial benefits. Softwaredevelopment costs capitalised in the period to 31 December 2004 amounted to£581,000. This change in accounting policy has had no effect on the results forthe previous year. UITF Abstracts adoption The Group policy for accounting and presentation of share schemes was changedduring the year ended 31 December 2004 to comply with UITF Abstract 17 (Revised2003) "Employee Share Schemes" and UITF Abstract 38 "Accounting for ESOP Trusts". The impact was to reduce fixed assets investments and shareholders' funds by£324,000 at 31 December 2003. The consolidated profit and loss account for the year ended 31 December 2003 hasnot been restated as the effect is not material. 2. Segmental information 2004 2004 2004 2003 2003 2003 Operating Operating Restated Turnover Profit/(loss) Net assets Turnover Profit/(loss) assets net £000 £000 £000 £000 £000 £000Professional Business 37,269 3,801 4,810 34,122 4,595 3,259ServicesSoftware Solutions 12,976 *(1,717) 363 12,523 (1,527) (165) Stock and Inventory 19,723 **851 1,332 15,812 (374) 1,328Services 69,968 2,935 6,505 62,457 2,694 4,422Cash 3,499 4,346 Proposed dividend (481) (492) Other 2,045 (1,020)Net assets 11,568 7,256 \* The operating loss for Software Solutions includes goodwill amortisation of£506,000 (2003: £506,000). *\* The operating profit for Stock and Inventory Services includes goodwillamortisation of £42,000 (2003: £45,000). 3. Exceptional Finance Credit The finance credit of £2,455,000 (net of associated costs) has arisen on theearly renegotiation of the Group's third party borrowings in relation to theacquisition of Timeless SA in 2000. The directors have no present intention ofselling the subsidiary, but if it were to be sold prior to 18 November 2007 apayment of a share of the sale consideration to a maximum of €3,000,000 wouldarise. 4. Tax on profit on ordinary activities 2004 2003 £000 £000Current tax UK corporation tax at 30% (2003: 30%) 897 1,490 Foreign tax 75 44 972 1,534 Adjustments in respect of prior years (970) 97Total current tax 2 1,631Deferred tax Origination and reversal of timing differences 238 (162)Total deferred tax 238 (162)Total tax on profit on ordinary activities 240 1,469 The adjustments in respect of prior years of £970,000 includes £1,017,000 whichis the benefit of prior year dual residence tax losses. 5. Dividend A final dividend of 2p (2003: 2p) per Ordinary Share has been proposed, which isin addition to the interim dividend of 1p (2003: 1p). The ex-dividend date is1 June 2005, the record date 3 June 2005 and the date payable 30 June 2005. The Employee Share Ownership Plan (ESOP) has waived any entitlement to thereceipt of dividends in respect of its entire holding of the company's ordinaryshares. As at 31 December 2004 the ESOP held 700,271 shares (2003: 692,212)with a nominal value of 2p each. 6. Earnings per share 2004 2003Earnings per share - basic Profit attributable to shareholders - £000 4,964 1,019 Average number of ordinary shares of 2p each in issue during the year 24,708,768 24,559,471Earnings per share - fully diluted Profit attributable to shareholders - £000 4,964 1,019 Average number of ordinary shares of 2p each in issue during the year afterallowing for the exercise of outstanding share options 25,077,304 24,595,162Earnings per share - basic before exceptional finance credit and credit forprior year tax losses Profit attributable to shareholders - £000 1,492 1,019Average number of ordinary shares of 2p each in issue during the year 24,708,768 24,559,471 7. The financial information does not constitute the statutory accountsof the Company as defined by section 240 of the Companies Act 1985. It is anextract from the accounts for the year ended 31 December 2004, which have notyet been filed with the Registrar of Companies. The auditors' report wasunqualified. The auditors' report does not contain a statement under eitherSection 237(2) or (3) of the Companies Act 1985. The group's auditors havereported on the accounts as required by Section 235 of the Companies Act 1985. The financial information in respect of the year ended 31 December 2003 has beenabridged from the published group accounts for which an unqualified audit reportwas issued and did not contain any statements under Section 237(2) or (3) of theCompanies Act 1985 and which have been filed with the Registrar of Companies. 8. The Report and Accounts are scheduled to be posted to shareholders inearly May. The Annual General Meeting of the Company is scheduled to takeplace at 10.00 am on Tuesday 28 June 2005 at: 39 Victoria StreetLondon SW1H 0EU CHRISTIE GROUP PLC Group Companies Christie Group www.christiegroup.com Christie Group plc, the holding company for the Group's trading businesses, islisted on the International Stock Exchange, London. PROFESSIONAL BUSINESS SERVICES BUSINESS SALES AND VALUATIONS, CONSULTANCY, FINANCIAL SERVICES The expertise offered by Christie & Co and Christie First covers all aspects ofvaluing, buying, selling, financing and insuring a wide variety of businesses.Its scope is complemented by the comprehensive appraisal and project managementservices available from Pinders. Christie & Co www.christie.com The leading firm of surveyors, valuers, consultants and agents specialising inthe leisure, care and retail sectors. International operations based inLondon, Paris, Frankfurt and Barcelona. Offices throughout the UK withvaluation, agency, development and investment teams focused on its key sectors. Christie First www.christiefirst.com The market leader in finance and insurance for the leisure, care and retailsectors. Services include finance for business purchase or re-financingarranged in conjunction with major financial institutions, and the provision oftailored insurance schemes. Pinders www.pinders.co.uk and www.pinderpack.com The UK's leading independent specialist business appraisal company, undertakingvaluations, consultancy, building surveying, project management and professionalservices for a broad range of clients in the leisure, care and retail sectors. SOFTWARE SOLUTIONS EPOS AND HEAD OFFICE SYSTEMS The two arms of VcsTimeless specialise in sophisticated IT systems and solutionsdesigned to capture and control the complex sales data connected with themanagement of cinemas, hotels, restaurants, leisure complexes, warehouses andretail outlets internationally. VcsTimeless (Hospitality) www.vcstimeless.com Specialists in software for leisure and hospitality businesses internationally,including cinemas, visitor attractions, pubs, hotels and restaurants. Solutionsinclude EPoS, chip and pin, stock control, back office, head office andticketing software. VcsTimeless (Retail) www.vcstimeless.com Leading specialist in integrated software solutions and related services for theretail industry - including fashion, sports and home improvements - dedicated tosingle and multi-channel retailers. Solutions include head office, in-store,chip and pin, manufacturing and retail business intelligence software. STOCK AND INVENTORY SERVICES STOCK AND INVENTORY CONTROL Orridge and Venners are the leading specialists in stock control and inventorymanagement systems. Employing state-of-the-art technologies and bespokesoftware, the division is focused on Europe, where both companies have a majorshare of the retail and leisure sectors. Orridge www.orridge.co.uk Europe's longest established stocktaking business specialising in all fields ofretail stocktaking including high street, warehousing and factory. Inaddition, it has a specialised pharmacy division providing data capturestocktaking services. A full range of stocktaking and inventory managementsolutions is provided for a wide range of clients in the UK and Europe. Venners www.venners.com Leading supplier of stocktaking, inventory, control audit and related stockmanagement services to the hospitality and retail sectors. Bespoke softwareand systems enable real time management reporting to its customer base using themost up-to-date technology. *** This information is provided by RNS The company news service from the London Stock Exchange