Christie Regulatory News (CTG)

6 Sep 2007 07:01

Christie Group PLC06 September 2007 CHRISTIE GROUP PLC6 SEPTEMBER 2007 Interim Results for the six months ended 30 June 2007 Christie Group, a leading business services and software group, today announcesits interim results for the six months ended 30 June 2007. Highlights Strong growth in Professional Business ServicesGroup Operating profit up 37.7% to £4.2 million (2006: £3.1 million)Revenue up 2.4% to £46.1 million (2006: £45.0 million)Basic EPS increased by 41.9% to 10.64p (2006: 7.50p)New Christie + Co office opened in HamburgNew Orridge operation launched in HollandInterim dividend increased by 20% to 1.50p (2006: 1.25p) Philip Gwyn, Chairman, commented: "This is another solid result. We have increased the interim dividend and theBoard believes there are real prospects for growth in the years ahead." Enquiries: Christie Group 020 7227 0707 David Rugg, Chief Executive Robert Zenker, Finance DirectorBrunswick 020 7404 5959 Ash SpiegelbergCharles Stanley Securities 020 7149 6000 Philip Davies(Nominated Adviser) Note to Editors Christie Group plc (CTG.L) is quoted on AIM. It is a leading business servicesand software group with three business divisions: Professional BusinessServices, Software Solutions and Stock & Inventory Services. The threecomplementary businesses focus on the leisure, retail and care markets. ChristieGroup has 35 offices across Europe - located in the UK as well as in Belgium,France, Germany, Italy and Spain, and 1 office in Canada. For more information, please go to: http://www.christiegroup.com/ The 2007 interim statement will be posted to shareholders by the end ofSeptember 2007 and copies will be available at the Company's registered office,39 Victoria Street, London SW1H 0EU. Chairman's statement Half year to 30 June 2007 Christie Group's operating profit for the half year to June 2007 increased 37.7%to £4.2 million (2006: £3.1 million) on revenue ahead by 2.4%. We achieved anoperating profit margin of 9.2% up from 6.8% in the comparable period. Theseresults reflect a strong period for corporate M & A and advisory work. Our interim dividend is increased to 1.5p (2006: 1.25p). Professional Business Services Revenue increased by 5.7% to £26.3 million (2006: £24.9 million), converting toan increased operating profit of £4.8 million (2006: £4.1 million). Individualbusiness sales in the UK were flat, whilst sales volumes in continental Europeincreased. Corporate transactions remained strong and the demand for ourvaluation and advisory services grew. We opened a new Christie + Co office inHamburg as planned. We now have a network of five such offices in Germany andoverall nine in Europe. Our activity included the acquisition of Ma Potters for Tragus in just 16 days,the acquisition for Moorfield Group of 24 hotels from Macdonald Hotels for circa£400 million, the sale of Anglian Convenience Stores to the Co-op, portfoliovaluations of Alpha Hospitals and Asquith Nurseries, amongst others, andmultiple pub lettings for Marston's, Mitchells & Butler, Greene King and others. Internationally our sales included Le Meridien Phoenicia Malta, Maritim Hamburg,Sofitel Niceand Hotel Misiana in Cadiz. We moved our insurance brokerage base to the City to bring us close to the mainmarket for placing business and therefore recruiting staff. Christie Finance gained authorisation to arrange regulated mortgages. Software Solutions Revenue was reduced to £7.3 million (2006: £8.0 million). However, our margin onsales improved by 9% as we concentrated the business mix on selling our ownsoftware rather than re-selling third party software. This produced an operatingloss reduced by £1.0 million to £0.4 million (2006: £1.4million). Our major development project, Colombus.next, continues. We invested in newprocesses, test automisation and a benchmarking department which measures theperformance and scalability of new modules, a key market differentiator. A dozen new customers in Spain, the UK and France included Gant, Jon Richard,Salsa, Coronel Tapiocca and Galerias Wehbe. Stock & Inventory Services Revenue increased to £12.5 million (2006: £12.1 million). Profit marked time at£0.6 million (2006: £0.8 million). New business wins in the retail sectorinitially impaired profitability, but these contracts are now performing in linewith margin expectation. Our supply chain optimisation service grew. Orridge also incurred the initial costs of establishing a permanent base inHolland. We believe this will enable growth in Holland and free resources in ourBrussels office to concentrate on expanding stocktaking in other regions. On the hospitality side, clients added included Loch Fyne Restaurants andYesteryear Pub Company. Customer and compliance audits included Elior, Shearingsand First Great Western. We completed inventories in Germany, France, Luxembourgand Spain. In June we launched a new Food Safety Division. Future Prospects Building on these strong interims our results for the year should provesatisfactory. Investment in our Software Solutions division will increase, andwhilst the second half's loss will be greater than that of the first half, weexpect the division to achieve an improvement over the prior year. Our Stock &Inventory Services business, whilst continuing to expand, historically enjoysits optimal workload in the first half. Our recent continental openings bothlast year and this will contribute to profits in future periods. Christie Group continues to hold out real prospects for growth in the yearsahead. Philip GwynChairman Consolidated interim income statement Half year to Half year to Year ended 31 30 June 2007 30 June 2006 December 2006 £'000 £'000 £'000 (Unaudited) (Unaudited) Note Revenue 4 46,103 45,018 87,096Employee benefit expenses (27,551) (27,446) (50,949) 18,552 17,572 36,147Depreciation and amortisation (643) (639) (1,298)Other operating expenses (13,690) (13,870) (28,770) Operating profit 4 4,219 3,063 6,079 Finance costs (72) (133) (274)Finance income 179 143 347 Total finance credit 107 10 73 Profit before tax 4,326 3,073 6,152Taxation 5 (1,744) (1,189) (2,019) Profit for the period after tax 2,582 1,884 4,133 Attributable to:Equity shareholders of the parent 2,582 1,881 4,131Minority interest - 3 2 2,582 1,884 4,133 Earnings per share (pence)- Basic 6 10.64p 7.50p 16.90p- Fully diluted 6 10.24p 7.48p 16.41p All amounts derive from continuing activities Consolidated interim statement of changes in shareholders' equity Attributable to the equity holders of the Company Share Fair value Cumulative Retained Minority Total capital and other translation earnings interest equity reserves adjustments £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 January 2006 500 4,722 (229) 4,802 19 9,814 Currency translation adjustments - - 27 - - 27 Net income recognised directly in - - 27 - - 27equityProfit for the period - - - 1,881 3 1,884 Total recognised income for the - - 27 1,881 3 1,911periodIssue of share capital 2 59 - - - 61Movement in respect of employee - (314) - - - (314)share schemeEmployee share option scheme:- value of services provided - 40 - - - 40Dividends paid - - - (612) - (612) Balance at 1 July 2006 502 4,507 (202) 6,071 22 10,900 Currency translation adjustments - - (180) - - (180) Net expense recognised directly in - - (180) - - (180)equityProfit / (loss) for the period - - - 2,250 (1) 2,249 Total recognised income / - - (180) 2,250 (1) 2,069(expenses) for the periodIssue of share capital 2 46 - - - 48Movement in respect of employee - (209) - - - (209)share schemeEmployee share option scheme:- value of services provided - 66 - - - 66Purchase of minority interest - - - (15) (21) (36)Dividends paid - - - (305) - (305) Balance at 1 January 2007 504 4,410 (382) 8,001 - 12,533 Currency translation adjustments - - 213 - - 213 Net income recognised directly in - - 213 - - 213equityProfit for the period - - - 2,582 - 2,582 Total recognised income for the - - 213 2,582 - 2,795periodIssue of share capital 1 33 - - - 34Movement in respect of employee - (1,425) - 467 - (958)share schemeEmployee share option scheme:- value of services provided - 66 - - - 66 Balance at 30 June 2007 505 3,084 (169) 11,050 - 14,470 Consolidated interim balance sheet At 30 June At 30 June At 31 December 2007 2006 2006 £'000 £'000 £'000 (Unaudited) (Unaudited) NoteAssetsNon-current assetsIntangible assets - Goodwill 4,096 3,939 4,096Intangible assets - Other 3,904 2,307 3,166Property, plant and equipment 1,985 2,346 2,214Deferred tax assets 1,894 1,917 2,176Available-for-sale financial assets 300 300 300Other receivables 8 969 - - 13,148 10,809 11,952 Current assetsInventories 307 427 332Trade and other receivables 17,426 19,863 14,279Current tax assets - - 282Cash and cash equivalents 9,009 5,638 11,414 26,742 25,928 26,307 Total assets 39,890 36,737 38,259 EquityCapital and reserves attributable to the Company's equity holdersShare capital 9 505 502 504Fair value and other reserves 3,084 4,507 4,410Cumulative translation reserve (169) (202) (382)Retained earnings 11,050 6,071 8,001 14,470 10,878 12,533Minority interest - 22 - Total equity 14,470 10,900 12,533 LiabilitiesNon-current liabilitiesBorrowings 1,620 2,191 1,735Retirement benefit obligations 10 5,807 6,593 6,300 7,427 8,784 8,035 Current liabilitiesTrade and other payables 16,793 15,710 16,954Current tax liabilities 740 1,021 -Borrowings 460 322 737 17,993 17,053 17,691 Total liabilities 25,420 25,837 25,726 Total equity and liabilities 39,890 36,737 38,259 These consolidated interim financial statements have been approved for issue bythe Board of Directors on 5 September 2007. Consolidated interim cash flow statement Half year to Half year to Year to 31 30 June 2007 30 June 2006 December 2006 £'000 £'000 £'000 (Unaudited) (Unaudited) NoteCash flow from operating activitiesCash generated from operations 11 1,465 1,748 10,578Interest paid (72) (133) (274)Tax paid (440) (841) (3,233) Net cash generated from operating activities 953 774 7,071 Cash flow from investing activitiesPurchase of minority interest in subsidiary - - (36)Purchase of property, plant and equipment (PPE) (290) (938) (1,407)Proceeds from sale of PPE 5 64 156Intangible assets expenditure (876) (715) (1,503)Proceeds from disposal of intangibles - 210 1,193Interest received 179 143 347 Net cash used in investing activities (982) (1,236) (1,250) Cash flow from financing activitiesProceeds from issue of share capital 34 61 109Payments to the ESOP (1,049) (314) (523)Repayments of borrowings (123) (41) (82)Payments of finance lease liabilities (15) (23) (59)Increase in non - current other receivables (969) - -Dividends paid - (612) (917) Net cash used in financing activities (2,122) (929) (1,472) Net (decrease) / increase in net cash (including bank (2,151) (1,391) 4,349overdrafts)Cash and bank overdrafts at beginning of period 11,160 6,811 6,811 Cash and bank overdrafts at end of period 9,009 5,420 11,160 Notes to the consolidated interim financial statements 1. General information Christie Group plc is the parent undertaking of a group of companies covering arange of related activities. These fall into three divisions - ProfessionalBusiness Services, Software Solutions and Stock and Inventory Services.Professional Business Services principally covers business valuation,consultancy and agency, mortgage and insurance services, and business appraisal.Software Solutions covers EPoS, head office systems and supply chain management.Stock and Inventory Services covers stock audit and inventory preparation andvaluation. 2. Basis of preparation These interim consolidated financial statements of Christie Group plc are forthe six months ended 30 June 2007. The interim financial statements have beenprepared using accounting policies set out in the Annual Report and FinancialStatements for the year ended 31 December 2006 and in accordance with those IFRSand IFRIC interpretations issued and effective or issued and early adopted as atthe time of preparing these statements (September 2007). The IFRS and IFRICinterpretations that will be applicable at 31 December 2007, including thosethat will be applicable on an optional basis, are not known with certainty atthe time of preparing these interim financial statements. These consolidatedinterim financial statements have been prepared under the historical costconvention. These consolidated interim financial statements have been prepared in accordancewith IAS 34 'Interim Financial Reporting'. They do not include all of theinformation required for full annual financial statements and should be read inconjunction with the consolidated financial statements for the year ended 31December 2006. The financial information included in this interim report for the six monthsended 30 June 2007 does not constitute statutory financial statements as definedby Section 240 of the Companies Act 1985 and is unaudited. The comparativeinformation for the six months ended 30 June 2006 is also unaudited. Thecomparative figures for the year ended 31 December 2006 have been extracted fromthe Group's financial statements as filed with the Registrar of Companies, onwhich the auditors gave an unqualified opinion and did not make a statementunder Section 237 (2) or (3) of the Companies Act 1985. The preparation of financial statements in accordance with IFRS requires the useof certain critical accounting estimates. It also requires management toexercise judgement in the process of applying the Company's accounting policies.The areas involving a higher degree of judgement or complexity, or areas whereassumptions and estimates are significant to the consolidated interim financialstatements, are disclosed in Note 3. 3. Critical accounting estimates and judgements Estimates and judgements are continually evaluated and are based on historicalexperience and other factors, including expectations of future events that arebelieved to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resultingaccounting estimates will by definition, seldom equal the related actualresults. The estimates and assumptions that have a significant risk of causing amaterial adjustment to the carrying amounts of assets and liabilities within thenext financial year are consistent with those applied to the consolidatedfinancial statements for the year ended 31 December 2006. 4. Segment information a. Primary reporting format - business segments The Group is organised into three main business segments: Professional BusinessServices, Software Solutions and Stock and Inventory Services. The segment results for the period ended 30 June 2007 are as follows: Professional Stock and Business Software Inventory Services Solutions Services Other Group £'000 £'000 £'000 £'000 £'000Continuing OperationsTotal gross segment sales 26,308 7,316 12,479 1,875 47,978Inter-segment sales - - - (1,875) (1,875) Revenue 26,308 7,316 12,479 - 46,103 Operating profit 4,791 (413) 646 (805) 4,219Net finance credit 107 Profit before tax 4,326Taxation (1,744) Profit for the period after tax 2,582 The segment results for the period ended 30 June 2006 are as follows: Professional Stock and Business Software Inventory Services Solutions Services Other Group £'000 £'000 £'000 £'000 £'000Continuing OperationsTotal gross segment sales 24,919 8,039 12,093 1,437 46,488Inter-segment sales (33) - - (1,437) (1,470) Revenue 24,886 8,039 12,093 - 45,018 Operating profit 4,083 (1,425) 793 (388) 3,063Net finance credit 10 Profit before tax 3,073Taxation (1,189) Profit for the period after tax 1,884 The segment results for the year ended 31 December 2006 are as follows: Professional Stock and Business Software Inventory Services Solutions Services Other Group £'000 £'000 £'000 £'000 £'000Continuing operationsTotal gross segment sales 49,739 15,053 22,337 2,777 89,906Inter-segment sales (33) - - (2,777) (2,810) Revenue 49,706 15,053 22,337 - 87,096 Operating profit 8,386 (2,400) 555 (462) 6,079Net finance credit 73 Profit before tax 6,152Taxation (2,019) Profit for the period after tax 4,133 Other segment items included in the income statement are as follows: Professional Stock and Business Software Inventory Services Solutions Services Other Group £'000 £'000 £'000 £'000 £'000 For the period ended 30 June 2007Depreciation and amortisation 209 141 276 17 643Impairment of trade receivables 95 (231) (4) - (140) For the period ended 30 June 2006Depreciation and amortisation 293 166 161 19 639Impairment of trade receivables 732 152 25 - 909 For the year ended 31 December 2006Depreciation and amortisation 557 333 379 29 1,298Impairment of trade receivables 701 382 55 - 1,138 Segment assets consist primarily of property, plant and equipment, intangibleassets, inventories, receivables and operating cash. They exclude deferredtaxation. Segment liabilities comprise operating liabilities. They exclude items such astaxation and corporate borrowings. Capital expenditure comprises additions to property, plant and equipment andintangible assets. The segment assets and liabilities at 30 June 2007 and capital expenditure forthe period then ended are as follows: Professional Stock and Business Software Inventory Services Solutions Services Other Group £'000 £'000 £'000 £'000 £'000 Assets 20,083 11,475 6,153 285 37,996Deferred tax assets 1,894 39,890 Liabilities 13,229 3,951 4,278 1,151 22,609Current tax liabilities 740Borrowings (excluding finance 2,071leases) 25,420 Capital expenditure 90 889 187 - 1,166 The segment assets and liabilities at 30 June 2006 and capital expenditure forthe period then ended are as follows: Professional Stock and Business Software Inventory Services Solutions Services Other Group £'000 £'000 £'000 £'000 £'000 Assets 17,137 11,114 5,270 1,299 34,820Deferred tax assets 1,917 36,737 Liabilities 11,886 4,625 4,020 1,813 22,344Current tax liabilities 1,021Borrowings (excluding finance 2,472leases) 25,837 Capital expenditure 135 820 694 4 1,653 The segment assets and liabilities at 31 December 2006 and capital expenditurefor the period then ended are as follows: Professional Stock and Business Software Inventory Services Solutions Services Other Group £'000 £'000 £'000 £'000 £'000 Assets 10,433 11,953 5,329 8,086 35,801Deferred tax assets 2,176Current tax assets 282 38,259 Liabilities 12,959 4,268 4,056 1,977 23,260Borrowings (excluding finance leases) 2,466 25,726 Capital expenditure 191 1,776 997 94 3,058 b. Secondary format - geographical segments The Group manages its business segments on a global basis. The UK is the homecountry of the parent. The operations are based in two main geographical areas.The main operations in the principal territories are as follows: - Europe- Rest of the World (primarily North America). The Group's sales are mainly in Europe. Sales are allocated based on the countryin which the customer is located. 30 June 2007 30 June 2006 31 December 2006 £'000 £'000 £'000SalesEurope 45,836 44,564 86,435Rest of the World 267 454 661 46,103 45,018 87,096 Total segment assets are allocated based on where the assets are located. 30 June 2007 30 June 2006 31 December 2006 £'000 £'000 £'000Total assetsEurope 37,842 34,485 35,666Rest of the World 154 335 135 37,996 34,820 35,801 Capital expenditure is allocated based on where the assets are located. 30 June 2007 30 June 2006 31 December 2006 £'000 £'000 £'000Capital expenditureEurope 1,166 1,653 3,058 5. Taxation The tax charge for the six months ending 30 June 2007 has been based on aforecasted underlying tax rate (current year corporation and deferred tax as apercentage of pre tax profit) for the year to 31 December 2007 of 37.2% (Halfyear to 30 June 2006: 38.7%; Year ended 31 December 2006: 37.2%), which includesthe movement in deferred tax asset relating to Retirement Benefit obligations.In addition the deferred tax asset has been adjusted to reflect the forthcomingreduction in the rate of UK corporation tax to 28% in 2008 (previously 30%)resulting in a charge to the Income Statement and reducing the deferred taxasset by £135,000 in the period. 6. Earnings per share Basic earnings per share is calculated by dividing the profit attributable toequity holders of the Company by the weighted average number of ordinary sharesin issue during the period, which excludes the shares held in the Employee ShareOwnership Plan (ESOP) trust. 30 June 2007 30 June 2006 31 December 2006 Profit attributable to equity holders of the Company (£'000) 2,582 1,881 4,131Weighted average number of ordinary shares in issue (thousands) 24,277 25,065 24,448Basic earnings per share (pence) 10.64 7.50 16.90 Diluted earnings per share is calculated adjusting the weighted average numberof ordinary shares outstanding to assume conversion of all dilutive potentialordinary shares. The Company has only one category of potential dilutiveordinary shares: share options. The calculation is performed for the share options to determine the number ofshares that could have been acquired at fair value (determined as the averageannual market share price of the Company's shares) based on the monetary valueof the subscription rights attached to outstanding share options. The number ofshares calculated as above is compared with the number of shares that would havebeen issued assuming the exercise of the share options. 30 June 2007 30 June 2006 31 December 2006 Profit attributable to equity holders of the Company (£'000) 2,582 1,881 4,131Weighted average number of ordinary shares in issue (thousands) 24,277 25,065 24,448Adjustment for share options (thousands) 945 86 728Weighted average number of ordinary shares for diluted earnings 25,222 25,151 25,176per share (thousands)Diluted earnings per share (pence) 10.24 7.48 16.41 7. Dividends per share 30 June 2007 30 June 2006 31 December 2006 £'000 £'000 £'000Interim2006 interim, paid October 2006 (1.25p) - - 306Final2005 final, paid June 2006 (2.5p) - 612 611 - 612 917 An interim dividend in respect of 2007 of 1.5p per share, amounting to adividend of £360,000, was declared by the directors at their meeting on 5September 2007.These financial statements do not reflect this dividend payable. The dividend of 1.5p per share will be payable to shareholders on the record on21 September 2007. The ex-dividend date will be 19 September 2007. The dividendwill be paid on 19 October 2007. 8. Non - current other receivables This represents loans in respect of the Group's share schemes repayable aftermore than one year. 9. Share capital 30 June 2007 30 June 2006 31 December 2006Ordinary shares of 2p each Number £'000 Number £'000 Number £'000 Authorised: 30,000,000 600 30,000,000 600 30,000,000 600At 1 January and 31 December Allotted and fully paid:At 1 January 25,216,384 504 25,003,552 500 25,003,552 500Issued during the period 47,167 1 139,833 2 212,832 4 End of period 25,263,551 505 25,143,385 502 25,216,384 504 The consideration received for the shares issued in the period was £34,000 (Halfyear to 30 June 2006: £61,000; Year ended 31 December 2006: £109,000). The Company has one class of ordinary shares which carry no right to fixedincome. Investment in own shares The Group has established an Employee Share Ownership Plan (ESOP) trust in orderto meet its future contingent obligations under the Group's share optionschemes. The ESOP purchases shares in the market for distribution at a laterdate in accordance with the terms of the Group's share option schemes. Therights to dividend on the shares held have been waived. At 30 June 2007 the total payments by the Group to the ESOP to finance thepurchase of ordinary shares was £2,004,000 (30 June 2006: £666,000; 31 December2006: £916,000). The market value at 30 June 2007 of the ordinary shares held inthe ESOP was £2,291,000 (30 June 2006: £1,136,000; 31 December 2006:£1,601,000).The investment in own shares represents 1,058,000 shares (30 June 2006: 668,000;31 December 2006: 616,000) with a nominal value of 2p each. 10. Retirement benefit obligations The amounts recognised in the balance sheet in respect of the net pensionliability is determined as follows: 30 June 2007 30 June 2006 31 December 2006 £'000 £'000 £'000 United Kingdom 5,742 6,533 6,240Overseas 65 60 60 5,807 6,593 6,300 United Kingdom The Group operates two defined benefit schemes (closed to new members) providingpensions on final pensionable pay. The contributions are determined by qualifiedactuaries on the basis of triennial valuations using the projected unit method. When a member retires, the pension and any spouse's pension is either secured byan annuity contract or paid from the managed fund. Assets of the schemes arereduced by the purchase price of any annuity purchase and the benefits no longerregarded as liabilities of the scheme. The amounts recognised in the income statement and the movement in the liabilityrecognised in the balance sheet have been based on the forecasted position forthe year to 31 December 2007 after adjusting for the actual contributions to bepaid in the period. The amounts recognised in the income statement are as follows: Half year to 30 Half year to 30 Year ended 31 June 2007 June 2006 December 2006 £'000 £'000 £'000 Current service cost (471) (474) (945)Interest cost (797) (720) (1,477)Expected return on plan assets 908 755 1,364 Total included in employee benefit expenses (360) (439) (1,058) The movement in the liability recognised in the balance sheet is as follows: Half year to 30 Half year to 30 Year ended 31 June 2007 June 2006 December 2006 £'000 £'000 £'000 Beginning of the period 6,240 6,732 6,732Expenses included in employee benefit expenses 360 439 1,058Contributions paid (858) (638) (1,550) End of the period 5,742 6,533 6,240 The principal actuarial assumptions used were as follows: Half year to 30 Half year to 30 Year ended 31 June 2007 June 2006 December 2006 % % % Discount rate 5.80 4.80 - 5.00 4.80 - 5.00Inflation rate 3.50 2.75 3.00Expected return on plan assets 6.20 - 7.60 6.20 - 7.50 6.20 - 6.90Future salary increases 3.50 - 3.60 2.75 - 3.10 3.00 - 3.25 Assumptions regarding future mortality experience were consistent with thosedisclosed in the financial statements for the year ended 31 December 2006. Overseas In accordance with French law a retirement indemnity provision is held. Rightsto these benefits accrue on the condition that the employee will be with theemployer at retirement date. The movement in the liability recognised in the balance sheet is as follows: Half year to 30 Half year to 30 Year ended 31 June 2007 June 2006 December 2006 £'000 £'000 £'000 Beginning of the period 60 58 58Expenses included in employee benefit expenses 5 2 2 End of the period 65 60 60 The principal actuarial assumptions were consistent with those disclosed in thefinancial statements for the year ended 31 December 2006. 11. Note to the cash flow statement Cash generated from operations Half year to Half year to Year to 30 June 2007 30 June 2006 31 December 2006 £'000 £'000 £'000 Profit for the period 2,582 1,884 4,133Adjustments for:- Taxation 1,744 1,189 2,019- Finance credits (107) (10) (73)- Depreciation 505 614 1,249- Amortisation of intangible assets 138 25 49- Loss / (profit) on sale of property, plant and 9 (19) (47)equipment- Loss on sale of intangible assets - - 19- Foreign currency translation 213 27 (105)- Movement in share option charge 66 40 106- Movement in retirement benefit obligation (493) (197) (490)Changes in working capital (excluding the effectsof acquisitions and exchange differences onconsolidation):- Decrease / (increase) in inventories 25 (117) (22)- Increase in trade and other receivables (3,056) (4,651) (318)- (Decrease) / increase in trade and other payables (161) 2,963 4,058 Cash generated from operations 1,465 1,748 10,578 Group at a glance Professional business servicesBusiness sales and valuations, consultancy and financial services Christie + Cowww.christie.comwww.christiecorporate.com Christie+ Co is the leading specialist firm providing business intelligence inthe hospitality, leisure, retail and care sectors. With 16 offices across theUK, it focuses on agency, valuation services, investment and consultancyactivity in its key sectors. Internationally, it operates from the UK and nineoffices in France, Germany and Spain. Christie Corporate Financewww.christiecf.com Acting as lead adviser and project manager of a transaction, Christie CorporateFinance specialises in the provision of expert and creative financial advice inthe corporate hospitality, leisure, care and retail sectors. Areas of particularexpertise are: acquisitions, disposals, management buy-outs, raising developmentcapital for growth, deal structuring and asset-specific funding. Christie Financewww.christiefinance.com Christie Finance has over 25 years' experience in financing businesses in thehospitality, leisure, care and retail sectors. Its relationships with theclearing banks, centralised lenders, finance houses and building societies makeit the market leader in providing finance solutions for purchase or re-financingin its specialist sectors. Christie Insurancewww.christieinsurance.com With over 25 years' experience arranging business insurance in the hospitality,leisure, care and retail sectors, Christie Insurance is a leading company in itsmarkets. Its contacts with the UK's leading insurers enable it to provide apremier service including tailored insurance schemes. Pinderswww.pinders.co.ukwww.pinderpack.com Pinders is the UK's leading specialist business appraisal, valuation andconsultancy company, providing professional services to the licensed leisure,retail and care sectors, and also the commercial and corporate business sectors.Its Building Consultancy Division offers a full range of project management,building monitoring and building surveying services. Software solutionsEPoS and head office systems VCSTIMELESSwww.vcstimeless.com Retail The VCSTIMELESS retail applications address such sectors as fashion,accessories, luggage, leather goods, sports, footwear, home furnishings,perfumery and toys. Solutions include merchandising planning and management,forecasting, supply chain optimisation, EPoS, CRM and business intelligenceapplications. The Colombus Enterprise suite is a comprehensive retail managementsoftware suite, proven to meet the specific needs of single and multi-channelretailers.Colombus.next is a next generation supply chain optimisation anddecision support solution. Leisure and cinemas VCSTIMELESS' VENPoS and Vista-branded leisure, hospitality and cinema managementsoftwares comprise admissions, head office, back office and online ticketingmodules. Stock & inventory servicesStock and inventory control Orridgewww.orridge.co.uk Orridge is Europe's longest established stocktaking business specialising in allfields of retail stocktaking including high street, warehousing, food andfactory. It also has a specialised pharmacy division providing valuation andstocktaking services. A full range of stocktaking and inventory managementsolutions is provided for a wide range of clients in the UK and Europe. Vennerswww.venners.com Venners is the leading supplier of stocktaking, inventory, control audit andrelated stock management services to the hospitality sector. 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