Last checked at 7 Aug 2023 07:00
7 August 2023
Christie Group plc
("Christie Group" or the "Company")
Trading Update
The Board of Christie Group Plc (CTG.L) advises that, following continued delays in achieving contractual exchange on ongoing transactions in its agency and advisory business, Christie & Co, and alterations to the expected timing and outcome of certain significant portfolio assignments, it now expects full year performance to be materially below previous expectations.
Those deal delays, which have now been a prevailing factor throughout the first half, are unfortunately anticipated to last at least until the end of the summer period before more normalised exchange and invoicing activity resumes. The slowdown in transactions brokered by Christie & Co during the first half reflects lower activity levels and sentiment in the wider market, as recently reported by a number of competitors.
While the Group expects to report a first-half operating loss, the Board nonetheless expects a positive second half trading performance, markedly ahead of first half performance and more consistent with second-half trading in 2022. Transactional pipelines are at levels which remain historically strong and which support this trading outlook. Aborted deal volumes remain comparable with 2022 and do not indicate a lack of intent among vendors and buyers to proceed with instructed transactions.
In contrast, the Group is encouraged by activity in other areas of its PFS division. Second half prospects for the Group's finance brokerage business are positive, with unsecured lending a growing part of its own brokerage activities. Pinders, the Group's business appraisal operation, ended July with its pipeline at a record value level.
Within the SISS division, the Group's Hospitality stocktaking activities continue to recover well post-pandemic, in line with management expectations and are experiencing strong levels of demand. Its Pharmacy stocktaking and Supply Chain operations have both performed ahead of expectation in the first half.
The Group ended the first half without any term debt, with both defined benefit pension schemes in surplus, and with appropriate banking facilities in place to support its working capital funding requirements.
As previously reported, the Group expects to incur one-off exceptional costs this financial year relating to the former Group Chairman and Chief Executive leaving the Group. Interim results for the six months ended 30th June 2023 will be released in September.
Enquiries:
Christie Group plc
Dan Prickett 07885 813101
Chief Executive
Simon Hawkins 07767 354366
Group Finance Director
Shore Capital
Patrick Castle 020 7408 4090
Nominated Advisor and Broker
Notes to Editors:
Christie Group plc, quoted on AIM, is a leading professional business services group with 38 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.