Christie Group plc · LSE:CTG
Christie — FY2022 Earnings Presentation
31 slides from Christie's earnings presentation, April 2023
Slide 1: Results Presentation FY 2022
Results Presentation FY 2022 April 2023 1
Slide 2: Contents
Contents 1. Introductions 2. 2022 Group Highlights 3. An Introduction to Christie Group 4. 2022 Review 5. Our opportunities, aspirations & outlook 6. Appendices 2 Results Presentation FY 2022
Slide 3: Introductions
Introductions David Rugg Chairman & Chief Executive David is Chairman and Chief Executive of Christie Group plc which is the holding company for the Group’s seven trading businesses. David has been responsible for the identification and integration of our principal business acquisitions and involved
Slide 4: 2022 Group Highlights
2022 Group Highlights A positive set of results, with growth in revenue, profit and cash Revenue up 13% to £69.2m Balance sheet significantly (2021: £61.3m) strengthened Operating profit up to £5.5m (2021: £5.2m) Elimination of pension deficits Excellent PFS performance 56% improvement in net In exc
Slide 5: An Introduction to Christie Group
An Introduction to Christie Group David Rugg Chairman and Chief Executive 5
Slide 6: About Christie Group
About Christie Group We are a leader in the provision of professional and financial services to the hospitality, leisure, healthcare, medical, childcare & education and retail sectors An extensive portfolio of professional services in our chosen sectors These include surveying, valuation, agency, co
Slide 7: Our Businesses
Our Businesses Two divisions comprising seven brands, originating more than 175 years ago 7 Results Presentation FY 2022
Slide 8: Our Services
Our Services Joined-up solutions throughout our clients’ life cycle – supporting and enabling their growth and aspirations Investment advice A range of demand services Aimed at owners and operators* in our chosen sectors (*and their investors and lenders) Acquisition, Development, Operation and Disp
Slide 9: Our Sectors & Markets
Our Sectors & Markets We focus on a section of areas covering a wide range of property-based businesses in Hospitality, Leisure, Healthcare, Retail, Medical and Childcare & Education sectors Childcare & Hotels Public Houses Restaurants Leisure Healthcare Retail Medical Education Investment advice •
Slide 10: Our Sector Coverage by Brand
Our Sector Coverage by Brand Across our seven trading brands, we have opportunity for expanded coverage of our specialist sectors Investment advice 10 Results Presentation FY 2022
Slide 11: Group Strategy
Group Strategy We aim to be the recognised knowledge leader and pre-eminent advisor in our sectors Our USPs, Strengths & Advantages • We enjoy the synergistic benefits of common markets and common client bases • We have a range of databases, own IPR & systems • High degree of repeat & referral work
Slide 12: 2022 Review
2022 Review Dan Prickett Simon Hawkins Chief Operating Officer Group Finance Director 12
Slide 13: Professional & Financial Services
Professional & Financial Services PFS division exceeds 2019 performance with another excellent year • PFS division delivered growth in revenue and operating 1,000+ profit businesses sold in year • Benefitted from profitable contributions from all our sector teams and our trading brands • Christie &
Slide 14: Professional & Financial Services
Professional & Financial Services Our award winning teams returned tremendous performances across our chosen sectors • Medical team were involved in a number of portfolio transactions, growing their own fee income by 11% • Positive signs across the UK hotel sector in 2022, with Christie & Co once ag
Slide 15: Professional & Financial Services
Professional & Financial Services Valuation teams experience busy 2022, while our Financial Services businesses are well placed to deliver growth • Valuation and Appraisal teams extremely busy, valuing over £10bn of Average £10bn of assets and over 5,500 units asset loan size • Base rate increases h
Slide 16: Stock & Inventory Systems & Services
Stock & Inventory Systems & Services Significant growth in activity year on year, as stocktaking operations continue their recovery • Overall stocktaking activity up by more than 33% on 2021 levels • Venners performance was encouraging, after a challenging Q1 due to remaining Covid-19 restrictions.
Slide 17: Stock & Inventory Systems & Services
Stock & Inventory Systems & Services Post covid recovery underway with 18% growth in stocktaking and growing supply chain demand • Supply chain services remains a key growth focus, with success in winning new business through 2022 • Those supply chain services are expanding into Europe • Service lev
Slide 18: Stock & Inventory Systems & Services
Stock & Inventory Systems & Services Vennersys continues to progress • Visitors to attractions now purchasing 54% of their tickets online • 2022 online revenues have grown to 277% of their 2019 levels • 2022 saw some caution in respect of investment decisions in the sector • Sales activity gathered
Slide 19: Revenue
Revenue Revenue recovered strongly with a 13% (£7.9m) increase to £69.2m 2022 2021 Movement £'000 £'000 £'000 % Professional & Financial Services (PFS) 47,377 43,772 3,605 8% Stock & Inventory Systems & Services (SISS) 21,815 17,480 4,335 25% Total 69,192 61,252 7,940 13% • Strong PFS performance wi
Slide 20: 2017 – 2022 revenue by division
2017 – 2022 revenue by division PFS revenues in 2022 fully recovered to above pre pandemic levels. Strong growth in SISS division but still recovery & further opportunities to go in order to get back to pre pandemic levels. 20 Results Presentation FY 2022
Slide 21: Revenue by sector and division
Revenue by sector and division Decrease in PFS (68% v 71% PY) v an improvement in SISS (32% v 29% PY) is principally reflective of the recovery post covid restrictions within the hospitality stock- taking business. By sector, remains a reasonably balance spread. • Retail includes retail, forecourts
Slide 22: Operating result by half years
Operating result by half years 2022 full year result of £5.5m - £0.3m (5%) improvement on PY. Chart illustrates the impact of Covid in H1 2020 and the subsequent recovery since. 2nd HY of 2019 includes a £1.5m profit on a sale & leaseback of a property. 22 Results Presentation FY 2022
Slide 23: Cash & net funds
Cash & net funds Strong cash reserves as at 31 December of £8.8m with an increase in net funds of 56% in the year to £7.2m. Repaid £2.0m CLBILS loan in the year 31 Dec 2022 31 Dec 2021 Movement £'000 £'000 £'000 Cash & cash equivalent 8,839 8,167 672 Bank overdrafts - - - Total cash 8,839 8,167 672
Slide 24: Cash & net funds/(debt) history 2017 - 2022
Cash & net funds/(debt) history 2017 - 2022 Net funds has improved by £9.7m since 2017. Positive net funds of £7.2m at 31 Dec 2022 24 Results Presentation FY 2022
Slide 25: Defined benefit pension liability history
Defined benefit pension liability under IAS 19/IFRIC14 history Strong improvement in 2022 with a YOY reduction of £8.0m – which has significantly strengthened the balance sheet. Surplus of £13.9m on the defined benefit schemes not recognised. Ongoing cash costs significantly reduced. 25 Results Pres
Slide 26: Our Aspirations, Opportunities & Outlook
Our Aspirations, Opportunities & Outlook David Rugg Chairman and Chief Executive 26
Slide 27: Opportunities & Aspirations
Opportunities & Aspirations We believe we can drive the further recovery of the Group to new heights in the years ahead Existing access to a UK Return our SISS division to market of 250,000 small profit through growth across businesses all brands Over 140,000 hotels in Expansion of our Supply Europe
Slide 28: Outlook
Outlook We regard the future with optimism & expect second half weighting to 2023 performance Optimistic about the future 2023 expected to be weighted towards H2 Sales process of Four Seasons portfolio has progressed well and is expected to complete in H2 2023 Activity is continuing across all our s
Slide 29: Appendices
Appendices 29
Slide 30: Appendix (I) – Other Plc Board Members
Appendix (I) – Other Plc Board Members Paul Harding – Executive Director Paul is Orridge Group Chairman and Managing Director of Vennersys. Paul has worked for Orridge for over 30 years. When Christie Group acquired Orridge in December 2002 Paul was Sales Director. He was appointed as Managing Direc
Slide 31: Appendix (II) – Shareholdings
Appendix (II) – Shareholdings Issued share capital 26,526,729 ordinary 2p shares Major shareholders Philip Gwyn 27.93% David Rugg (Chairman & Chief Executive) 0.26% Mrs T C Rugg 4.76%* Mr J P Rugg 6.00% Lord Lee of Trafford 4.70% Hwfa Gwyn 3.87% Katie Gwyn 3.87% Christina Bretten 3.82% Anna Ross 3.8