2017 Results Presentation David Rugg Dan Prickett Chairman & Chief Executive Chief Operating Officer Simon Hawkins Group Finance Director 1
2017 Headlines David Rugg Chairman & Chief Executive 2
2017 Headlines Strong revenue growth particularly in PBS contributed to a significant improvement in operating profit of £3.8m Revenue growth of 11.1% to £71.6m (2016: £64.5m) • Operating profit of £3.8m (2016: £1.1m before exceptional items) • Earnings per share of 9.47p per share (2016: 5.41p per share) • Total dividend for the year increased to 2.75p per share (2016: 2.50p per share) • Strong recovery in revenue and operating profit from the PBS division, with revenue up 15.9% on • the prior year PBS operating profit up to £5.3m (2016: £1.7m before exceptional items) • Stronger revenues from client M&A activity set to continue in 2018 • Challenging year for retail stocktaking within the SISS division • Improved terms on a number of major UK retail stocktaking contracts should have a positive • impact as we move through 2018 3 2017 Results Presentation
An Introduction to Christie Group David Rugg Chairman & Chief Executive 4
About Us A leader in the provision of professional business services to the leisure, retail, medical, childcare & education and healthcare sectors Christie Group offers a portfolio of professional • business services for the leisure, retail, medical, childcare & education and healthcare sectors. Our focus on a limited number of sectors gives us an • unrivalled market awareness in each of these areas. We do not adopt a principal position or co-invest. • ‘We believe that our market We never compete with our clients. position is key to maximising the • opportunities presented by both We operate in the sectors in which our experience the recovering market on one • allows us to deliver intelligent solutions. hand and one showing signs of distress on the other.’ The results: a greater understanding of our clients’ • operations and a heightened ability to help them improve efficiency, enhance trading profits and increase the value of their businesses. 5 2017 Results Presentation
Group Strategy A client focused approach that leads to best-in-class results Christie Group aligns its strategy around a number of key focal points as illustrated. Our strategy is Brand focused on our clients to ensure that we meet their Strength & needs. This strategic approach provides a clear and Endurance consistent approach, which is tried and tested through the business cycle. With a focus on our core sectors, diversification through our global reach, maximising synergies across the group and a flexible approach we can deliver best-in-class results for our clients. Client Focus The agreed board objective is to initially • rebuild operating profits to that previously reached £10 million+ As profits increase, we intend to distribute a • rising and covered dividend stream to reward shareholders while at the same time Financial strengthening the balance sheet. Stability 6 2017 Results Presentation
Our Businesses Complementary specialist services classified into two divisions Professional Business Services (PBS) Stock & Inventory Systems & Services (SISS) Christie & Co is a leading specialist firm Orridge is Europe’s longest established providing business intelligence in the stocktaking business specialising in all fields hospitality, leisure, healthcare, medical, of retail stocktaking including high street, childcare & education and retail sectors. It warehousing & factory operations, pharmacy employs the largest teams of sector and supply chain services. Orridge prides specialists in the UK & Europe providing itself on the speed in supplying high quality professional agency, valuation and management information to its clients. consultancy services. Venners is the leading supplier of Christie Finance has 40 years’ experience in stocktaking, inventory, consultancy services financing businesses in the hospitality, leisure, healthcare, medical, childcare & and related stock management systems to the hospitality sector. Venners is the largest education, retail and medical sectors. and longest established stock audit company Christie Finance prides itself on its speed of in the sector in the UK. response to client opportunities and its strong relationships with finance providers. With 40 years’ experience arranging Vennersys operates in the UK and North business insurance in the hospitality, America with over 20 years experience leisure, healthcare, childcare & education, delivering online Cloud-based ticketing sales retail and medical sectors, Christie and admission systems to visitor attractions. Insurance is a leading company in its Examples include historic houses & estates, markets. It delivers and exceeds clients’ zoos, safari parks, playcentres and cinemas. expectations in terms of the cost of their insurance and the breath of its cover. Pinders is the UK's leading specialist business appraisal, valuation and consultancy company, providing professional services to the licensed, leisure, retail and care sectors, and also the commercial and corporate business sectors. Pinders staff use business analysis and surveying skills to look ay the detail of the businesses to arrive at accurate assessments of their trading potential and value. 7 2017 Results Presentation
Our Services Providing joined-up solutions throughout the client lifecycle Regardless of whether a client is looking to improve, develop, invest in, acquire or dispose of Investment advice a business or asset, our companies combine to provide support throughout the client lifecycle. Leveraging the synergies that arise from this collaboration within and across companies enhances both revenue generation and profit conversion. 8 2017 Results Presentation
Our Areas of Expertise We focus on a section of areas covering a wide range of property-based businesses in Hospitality, Leisure, Care, Medical, Retail and Childcare & Education Childcare & Childcare & Leisure Healthcare Retail Medical Hotels Public Houses Restaurants Education Education Investment advice Luxury hotels Freehouses Elderly care Supermarkets Casual dining Cinemas • • • • Pharmacies Education • • • • Mid-market Tenanted Specialist Convenience Fine dining Health & • • • • Dentists Childcare • • • • hotels pubs care stores fitness Independents GP Surgeries Independent • • • Upscale hotels Managed Private PFS Sports clubs • • • • schools • Sandwich bars Vets • • houses hospitals Forecourts Budget hotels Bingo halls • Nurseries • • Coffee shops Opticians • • High street Nursing and CTNs • • • Boutique hotels Holiday parks • Fostering • • bars residential Tea rooms • Off licences • Aparthotels Golf courses • • Late night Supported • Takeaways • • Post offices • Guest houses venues living • Gaming sector • Garden • Nightclubs Funeral B&Bs • • • centres directors Newsagents • Estimated Market Sizes - UK Estimated Market Sizes - Europe 50,000 convenience stores Over 132,000 hotels 45,000 hotels • • • 6,700 health clubs (source Otus & co) 49,000 pubs • • 8,900 GP’s 24,000 table service restaurants • • 16,000 day nurseries 25,000 healthcare facilities • • 8,400 filling stations 7,700 pharmacies • • 100,000 + retail 10,700 dental practices • • 2,500 independent schools • 9 2017 Results Presentation
Business Review David Rugg Dan Prickett Chairman & Chief Executive Chief Operating Officer 10
PBS Review of the Year Rebound in performance translated to a much improved performance from the division • Christie & Co’s complete market coverage was evidenced by increased activity from both private and corporate investors • Regional transactional income grew strongly • Recruitment strategy of last three years has begun to come through in productivity of fee earning employees • Corporate transactional activity much stronger across a number of sectors • Some increase in distress based transactions in certain labour-intensive sectors affected by increases in living wage • Christie & Co’s sector-embedded valuation teams advised on over £7.2bn worth of assets in the year • Our consultancy teams’ business intelligence is highly prized by potential investors, with our hotel and healthcare teams particularly prominent • Strong investor interest in the UK from Asia during the year, particularly in Childcare & Education 11 2017 Results Presentation
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