REG - Christie Group PLC - AGM Statement

ChristieAnnouncement

15/06/2022 10:00

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RNS Number : 9526O  Christie Group PLC  15 June 2022

15 June 2022

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, delivered the following statement:

"I am pleased to report that our business continues to grow this year.

As anticipated, costs too have increased as we have resumed a normalised level
of travel and in-person marketing activities. However, costs are not as high
as expected as recruitment is challenging and vacancies are taking longer to
fill.

Professional & Financial Services

Following a solid start to the year, we are enjoying a busier second quarter
of deal activity.

Our European team have just had its most successful month in two years.
Transactions included the sale to Raiffeisen Immobilien KAG of the newly
constructed 200 room Bassena Hotel, Wein Donaustadt, Vienna.

Notably in the Care sector landlords have been cooperating in operating
company sales, in order to gain a better covenant of established and
profitable tenants, thereby increasing the value of the landlords' own
investments.

Higher energy costs are impacting running costs of the businesses we sell.
Those businesses which are unable to increase their prices will experience a
squeeze on operating margins. Such a squeeze will serve to cap the value of
these businesses.

Pinders' building services division has experienced an uptick in technical
due-diligence surveys that include an engineer's review of the heating,
ventilation and air-conditioning systems of a building.

Private and institutional valuation instructions have both now recovered to
pre-pandemic levels for both individual and portfolio assignments.

Demand for deal funding remains strong. Christie Finance has funded over 30%
of Christie & Co arranged retail transactions this year. This demonstrates
the greater opportunity for increased funding penetration. The average size of
Christie Finance deals has increased by 25% over the same period last year.

UK commercial insurance premiums continue to rise by approximately 20% per
annum.

For Christie Insurance clients, where cover was provided, we have ensured
payment for Covid-19 claims.

Stock & Inventory Systems & Services

Vennersys continues to benefit from high volumes of domestic visitors to UK
visitor attractions. This trend increases our online revenue year on year.
Venues require a smooth online journey upon which we are focused. New wins
include Manx National Heritage and Inverary Castle.

Our stocktaking businesses incur three principal operating costs: transport,
labour, and technology. High fuel costs, the delay in new vehicle deliveries
and the knock-on effects of the recent increases in minimum wage adversely
impact our costs.

In retail operations we have maintained or improved our margins. In leisure
operations as downtime becomes fully utilised our margin is restored, aided by
necessary price increases.

Recent in-house IT developments ensure a paperless electronic service.

In Europe, our established operations are well run and profitable largely
offsetting the costs of developments in newer territories.

Our Supply Chain services are in demand, and we have now extended their
provision to Europe.

Overall, more Retailers and Licensed Retailers are choosing to outsource their
stocktaking activities, rather than to occupy their scarce management resource
with in-house provision.

Summary

Across the Group we are maintaining a flexible working approach. Collaborative
physical working in the presence of colleagues is very important, but
allowances to enable concentration on solo tasks is also beneficial and
productive where required. I thank all our staff who continue to be
co-operative, flexible & effective and our management whose oversight has
become more complex.

The banks continue to wilfully fund our sectors.

We have yet to see any material level of distress induced work, but with the
prevailing inflationary pressures, we expect to see an increased level of
distress later this year.

Post the pandemic effect in the first quarter, stocktaking new business
activity is increasing.

Our cash resources are maintained.

We have already generated a significant value of transactional work for our
second half.

We anticipate another good year.

Yours ever."

 

Enquiries:

 

Christie Group plc

David Rugg
 
                                       020 7227 0707

Chairman and Chief Executive

 

Dan Prickett
 
                                     020 7227 0700

Chief Operating Officer

 

Shore Capital:

Patrick Castle / Iain
Sexton
020 7408 4090

Nominated Adviser & Broker

 

Notes to Editors:

Christie Group plc, quoted on AIM, is a leading professional business services
group with 39 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 for the purposes of Article 7 of the UK Market
Abuse Regulation (EU) No. 596/2014 which is part of the UK law by virtue of
the European Union (Withdrawal) Act 2018.

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

 

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