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Christie Group PLC
29 March 2010
29 March 2010
Christie Group plc
Final results for the twelve months ended 31 December 2009
Christie Group plc ('Christie' or the 'Group'), the leading provider of Professional Business Services and Stock &
Inventory Systems & Services to the leisure, retail and care markets, is pleased to announce its final results for
the
twelve months ended 31 December 2009.
Key points:
· Improved trading environment
· Agency business seeing stabilisation of asset prices and re-engagement of purchasers
· Resilient care business reflecting attraction of long-term Government revenue stream
· Stock & Inventory Systems & Services increasingly called on to aid cash flow management through
minimising cash tied
up in stock
Commenting on the results, David Rugg, Chief Executive of Christie Groupsaid:
"We entered 2010 in good shape with the upturn in activity maintained and with the full benefit of the cost reductions
implemented during the first half of 2009. Time will tell whether the momentum of recovery will be sustained, but the
outlook today is certainly a good deal more positive than at this time last year. We are well positioned to take full
advantage of the recovery."
Enquiries:
David Rugg 020
7227
0707
Chief Executive
Christie Group plc
Russell Cook / Carl Holmes 020 7149 6000
Charles Stanley Securities
Nominated Adviser
Tom Cooper 0797
122
1972
Winningtons
Notes to Editors:
Christie Group plc (CTG.L), quoted on AIM, is a leading professional business services group with 31 offices across the
UK,
Europe and Canada, catering to its specialist markets in the leisure, retail and care sectors.
Christie Group operates in two complementary business divisions: Professional Business Services (PBS) and Stock &
Inventory
Systems & Services (SISS). These divisions trade under the brand names:
PBS - Christie + Co, Christie Finance, Christie Insurance and Pinders;
SISS - Orridge, Venners and Vennersys.
Tracing its origins back to 1846, the Group has a long established reputation for offering essential 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
across the Group's business.
For more information, please go to www.christiegroup.com
CHAIRMAN'S STATEMENT
Recovery insight
I am pleased to present our full year results to 31 December 2009 against the backdrop of an economic outlook that is
undoubtedly more buoyant than when I posted our Interim results in August 2009. The first quarter of 2010 has started
positively and we expect to see that momentum building throughout the year.
As a result of prompt management action and cost management measures put in place by the Board, the operating loss for
our
second half to 31 December 2009 has reduced to £0.9m against a first half loss of £2.7m. This makes a post tax loss for
the year of £1.9m on turnover of £47.1m (2008: £63.4m for continuing businesses). The losses were funded from our own
cash
resources, as a result of which, we finished the year with no net borrowings and cash of £1.7m.
Our operating costs for the year amounted to £50.7m, (prior year £68.1m). Of this reduction, £15.1m was saved by our
Professional Business Services Division which reduced costs by 35.7% over the prior year. Of the operating costs, £0.9m
of
the 2009 costs relate to depreciation (net of capital expenditure), amortisation, share schemes and other non-cash
charges.
An achievement for which I think we can be justifiably proud is to have traded through the recession while incurring no
net
debt. There has been no requirement therefore for fund raising or other measures.
There are certain benefits to be gained from a recession, one of which is that other firms go back to their areas of
traditional competence. Ours is the only firm with 24 offices specialising in business sales (hospitality, retail, care)
and we now find that from a competitive view point we are trading in a less crowded marketplace. Our valuations benefit
from an in-depth knowledge of market and price trends achieved through combining our extensive transaction data on
completed sales with our visibility of current offers and acceptances in our transaction pipeline.
We believe that, for us, a year of recession bottomed in May 2009, since which point we have seen stable income. It is
rare
for transactions to be fully cash funded and therefore the availability of credit on commercial terms is a crucial
driver
for many of the transactions that we are engaged with. Initiatives are in place through a number of the commercial
lenders
to bolster the supply of credit to smaller businesses through the Enterprise Finance Guarantee scheme and by providing
access to European Investment Bank funding.
2010 has started positively. Activity levels have been good, since we emerged from the snow and ice early in the New
Year,
and margins have held up well. Our market position is strong as are our relationships with the banks and business
introducers.
I believe that once the general election is behind us, we will experience a continuing recovery supported by an improved
broader economic sentiment. Reflecting our confidence in the future it is our intention to resume dividend payments
assuming a sustained recovery.
I extend my thanks particularly to our Finance Director, Robert Zenker, who has been our capable financial steward for
the
past 16 years. We wish him well for the future. I would like to thank all our staff who have risen magnificently to a
challenging market.
Philip Gwyn
Chairman
CHIEF EXECUTIVE'S STATEMENT
We entered 2010 in good shape with the upturn in activity maintained and with the full benefit of the cost reductions
implemented during the first half of 2009. Time will tell whether the momentum of recovery will be sustained, but the
outlook today is certainly a good deal more positive than at this time last year. We are well positioned to take full
advantage of the recovery.
Our markets
Our client base is largely the same across each of our sectors - leisure, retail and care - and our ability to take
advantage of the synergy benefits of cross-selling more than one Group service to each of our businesses' clients has a
marked positive effect on revenues and profitability. There are approximately a quarter of a million businesses in
Christie
Group's specialist sectors in the UK. Our aim is to create value for shareholders from each stage in the cycle of small
and
medium-sized enterprise (SME) ownership; represented by acquisition, funding, business development, stock control,
insurance and disposal. The services offered by the Group touch each of these vital business disciplines and our success
over the years is demonstrated by both the overall size of our client base and the substantial proportion of repeat
business from entrepreneurs, funders and advisers.
We own perhaps the best known brands in our chosen sectors for the size of the businesses we target. This means that we
are
almost always considered for appointment when a suitable business requires one of the services we provide. The resulting
active client base is diversified by geography, sector, stage of development and thus by risk.
Our businesses
Against the economic background outlined above, the Group's financial performance in 2009 represented a creditable
achievement. Costs were contained or reduced across the board and a renewed emphasis on gaining new and realistic
mandates
instilled. Two of our three core sectors - leisure and retail - were hit hard by the downturn in consumer spending and
it
was only in the last quarter of the year that prices of businesses in these areas reduced sufficiently to tempt in
opportunistic buyers. Our third sector, care, stood up much better in terms of prices as a result of its longer term
revenues from government but even here, transaction levels reduced substantially, largely as a result of the restricted
availability of bank financing, a factor which continues to affect SMEs in the UK economy.
Professional BusinessServices
This division had to cope with a precipitous fall in transaction prices. Depending on the sector, we calculate this to
have
been between 16% and 34% (average of 27% across our sectors) from peak to trough in early 2009 and an almost complete
cessation of voluntary transactions; that is now beginning to recover. The first signs of this recovery became apparent
at
the end of 2009 when the first distressed sales of assets and businesses by corporates came on to the market. The
response
was surprisingly quick. Buyers with cash or access to cash took advantage of low prices and began to compete for assets,
having apparently waited on the sidelines for purchases to become available at prices they considered reasonable.
The absence of pre-credit crunch levels of debt availability has led to a much stronger equity base - some 60% - behind
property-based business acquisitions. We believe funding will remain in short supply as the heavy schedule of loan
maturities for banks begins to bite. There are, however, new lenders beginning to take up some of the demand and this,
together with an increase in the number of enquiries from potential buyers, is a positive sign.
Stock& Inventory Systems & Services
The trading environment has presented opportunities as well as issues for the businesses in this division. With working
capital facilities under pressure, tight control of stock has become vital. Retailers now operate seven days a week on
an
efficient staff headcount. As a result, more and more functions are outsourced and our businesses in this area have
benefited accordingly. Lower consumer spend, leading to pressure on margins, has also focused retailers' attention on
'just-in-time' availability counts to reduce stock levels and on the services we offer to control fraud, theft and
shrinkage.
Consequently, we plan to raise capital expenditure in this division in 2010 to take advantage of these trends and to
capitalise on the increased operating margins now available to us. We currently have a significant pipeline of new work
and, given the current economic environment, a ready supply of potential staff.
With key software developments completed in 2009, including on-line ticketing, Vennersys now offers the leading system
for
visitor attractions in the UK.
Well positioned for the future
During what proved to be a difficult 2009, the business demonstrated both its resilience and financial strength.
Resilience
because of our volume of customers and clients across our markets and strength by the fact that we are one of the very
few
companies in the property services sector that has not had to call on its shareholders to provide additional equity
funds.
The breadth, depth and longevity of the Group demonstrates to clients and potential clients that we represent a skilled
and
experienced practitioner that can be trusted to help them realise value from their businesses at every stage of the
business cycle. We have reduced costs, improved efficiency and focused on our cross-selling activity during the last
year.
Clients enjoy access to senior, experienced practitioners, which provides us with both a competitive advantage and
client
loyalty.
Distressed businesses are providing much of our current pipeline of activity and are creating almost unprecedented
opportunities for entrepreneurs. We believe the normal cycle is restarting - but this time from a more financially sound
base after business owners have deleveraged. We are confident that 2010 will mark a return to growth for the Group.
David Rugg
Chief Executive
Consolidated Statement of Comprehensive Income
Note Year ended 31 December 2009
£'000 Year ended 31 December 2008 £'000
Continuing operations
Revenue 47,067
63,422
Employee benefit expenses* (36,676)
(45,014)
10,391
18,408
Depreciation and amortisation (707)
(906)
Other operating expenses* (13,338)
(22,140)
Operating loss (3,654)
(4,638)
Finance costs 5 (148)
(162)
Finance income 5 101
227
Total finance (costs)/credit 5 (47)
65
Loss before tax (3,701)
(4,573)
Taxation 6 1,752
1,173
Loss from continuing operations (1,949)
(3,400)
Discontinued operations
- Loss from discontinued operations 7 -
(10,163)
Loss for the year after tax (1,949)
(13,563)
Other comprehensive (losses)/income:
Exchange differences on translating foreign operations (5)
1,102
Actuarial losses on defined benefit pension plans (144)
-
Income tax relating to components of other 40
-
comprehensive income
Other comprehensive (losses)/income for the period, net of tax (109)
1,102
Total comprehensive losses for the year (2,058)
(12,461)
Earnings per share - pence
Loss attributable to the equity holders of the Company
-Basic 9 (8.30)
(55.39)
-Fully diluted 9 (8.30)
(55.39)
Loss from continuing operations attributable to the equity holders of the Company
-Basic 9 (8.30)
(13.88)
-Fully diluted 9 (8.30)
(13.88)
(109)
1,102
Total comprehensive losses for the year
(2,058)
(12,461)
Earnings per share - pence
Loss attributable to the equity holders of the Company
-Basic
9
(8.30)
(55.39)
-Fully diluted
9
(8.30)
(55.39)
Loss from continuing operations attributable to the equity holders of the Company
-Basic
9
(8.30)
(13.88)
-Fully diluted
9
(8.30)
(13.88)
* These include £nil (2008: £1,964,000) of exceptional reorganisation costs.
The total loss for the year after tax and the total comprehensive loss for the year are entirely attributable to equity
holders of the parent company.
Consolidated Statement of Changes in Shareholders' Equity as at 31 December 2009
Attributable to the Equity Holders of the Company
Share capital £'000 Fair value and other reserves £'000
Cumulative translation reserve £'000 Retained earnings £'000 Total equity £'000
Balance at 1 January 2008 505 3,706
137 11,616 15,964
Exchange difference on repayment of foreign exchange loan - -
(758) 758 -
Movement in respect of employee share scheme - 72 -
(28) 44
Employee share option scheme:
-value of services provided - 98 -
- 98
Dividends paid
(794) (794)
Release of merger reserve - (945) -
945 -
Exchange differences on translating foreign operations
1,102 - 1,102
Loss for the year after tax - - -
(13,563) (13,563)
Balance at 1 January 2009 505 2,931
481 (1,066) 2,851
Movement in respect of employee share scheme - 83 -
- 83
Employee share option scheme:
-value of services provided - 92 -
- 92
Exchange differences on translating foreign operations - -
(5) - (5)
Actuarial losses on defined benefit pension plans - - -
(144) (144)
Tax relating to components of other comprehensive income
40 40
Loss for the year after tax - - -
(1,949) (1,949)
Balance at 31 December 2009 505 3,106
476 (3,119) 968
92
-
-
92
Exchange differences on translating foreign operations
-
-
(5)
-
(5)
Actuarial losses on defined benefit pension plans
-
-
-
(144)
(144)
Tax relating to components of other comprehensive income
40
40
Loss for the year after tax
-
-
-
(1,949)
(1,949)
Balance at 31 December 2009
505
3,106
476
(3,119)
968
Consolidated Statement of Financial Position
At 31 December 2009 £'000 At 31 December 2008
£'000
Assets
Non-current assets
Intangible assets - Goodwill 1,011 1,011
Intangible assets - Other 138 60
Property, plant and equipment 749 1,409
Deferred tax assets 3,067 2,063
Available-for-sale financial assets 300 300
Other receivables 1,192 1,108
6,457 5,951
Current assets
Inventories 1 -
Trade and other receivables 8,524 9,506
Current tax assets - 596
Cash and cash equivalents 3,536 2,328
12,061 12,430
Total assets 18,518 18,381
Equity
Capital and reserves attributable to the Company's equity holders
Share capital 505 505
Fair value and other reserves 3,106 2,931
Cumulative translation reserve 476 481
Retained earnings (3,119) (1,066)
Total equity 968 2,851
Liabilities
Non-current liabilities
Retirement benefit obligations 3,594 3,225
Provisions for other liabilities and charges 1,720 1,751
5,314 4,976
Current liabilities
Trade and other payables 8,631 9,289
Borrowings 2,694 706
Provisions for other liabilities and charges 911 559
12,236 10,554
Total liabilities 17,550 15,530
Total equity and liabilities 18,518 18,381
1,751
5,314
4,976
Current liabilities
Trade and other payables
8,631
9,289
Borrowings
2,694
706
Provisions for other liabilities and charges
911
559
12,236
10,554
Total liabilities
17,550
15,530
Total equity and liabilities
18,518
18,381
These Consolidated financial statements have been approved for issue by the Board of Directors
on 26 March 2010.
D B Rugg
Chief Executive
D R Prickett
Chief Financial Officer
Consolidated Statement of Cash Flows for the year ended 31 December 2009
Note 2009 £'000 2008 £'000
Cash flow from operating activities
Cash used in operations 10 (2,176) (5,254)
Interest paid (148) (163)
Tax paid 1,384 (21)
Net cash used in operating activities (940) (5,438)
Cash flow from investing activities
Purchase of property, plant and equipment (PPE) (80) (1,103)
Proceeds from sale of PPE 5 204
Intangible asset expenditure (59) (1,590)
Proceeds from sale of Software businesses (net of costs) - 1,797
Cash included in disposal of Software businesses - (749)
Investment in an available-for-sale asset - (19)
Proceeds from sale of available-for-sale financial asset 141 -
Interest received 101 227
Net cash generated from/(used in) investing activities 108 (1,233)
Cash flow from financing activities
Net payments to ESOP 201 (172)
Repayment of borrowings - (1,735)
Proceeds from invoice discounting 181 700
Payments of finance lease liabilities (6) (2)
Dividends paid - (794)
Net cash generated from/(used in) financing activities 376 (2,003)
Net decrease in net cash (456) (8,674)
Cash and cash equivalents at beginning of year 2,328 10,593
Exchange (losses)/gains on euro bank accounts (149) 409
Cash and cash equivalents at end of year 1,723 2,328
Payments of finance lease liabilities
(6)
(2)
Dividends paid
-
(794)
Net cash generated from/(used in) financing activities
376
(2,003)
Net decrease in net cash
(456)
(8,674)
Cash and cash equivalents at beginning of year
2,328
10,593
Exchange (losses)/gains on euro bank accounts
(149)
409
Cash and cash equivalents at end of year
1,723
2,328
Notes to the Consolidated Financial Statements
1. BASIS OF PREPARATION
The consolidated and Company financial statements of Christie Group plc have been prepared in accordance with
International
Financial Reporting Standards (IFRS) as adopted by the European Union (IFRSs as adopted by the EU), IFRIC
Interpretations
and the Companies Act 2006 applicable to Companies reporting under IFRS. The consolidated and Company financial
statements
have been prepared under the historical cost convention with the exception of available for sale financial assets and
defined benefit pension scheme, and on a going concern basis.
The financial statements have been prepared in accordance with IFRS and IFRIC interpretations issued and effective or
issued and early adopted as at the time of preparing these statements (March 2010).
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting
estimates.
It also requires management to exercise its judgement in the process of applying the group's accounting policies. The
areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
consolidated and parent company financial statements are disclosed in Note 2.
New and amended standards adopted by the group
The Group and Company has adopted the following new and amended IFRSs as of 1 January 2009.
- IAS 1 (revised). 'Presentation of financial statements' - effective 1 January 2009. The revised standard requires
'non-owner changes in equity' to be presented separately from owner changes in equity in a statement of comprehensive
income. As a result the group presents in the consolidated statement of changes in equity all owner changes in equity,
whereas all non-owner changes in equity are presented in the consolidated statement of comprehensive income. Comparative
information has been re-presented so that it also is in conformity with the revised standard. As the change in
accounting
policy is only presentational there is no impact on earnings per share.
- IFRS 2 (amendment), 'Share-based payment' (effective 1 January 2009) deals with vesting conditions and
cancellations.
It clarifies that vesting conditions are service conditions and performance conditions only. Other features of a
share-based payment are not vesting conditions. These features would need to be included in the grant date fair value
for
transactions with employees and others providing similar services; they would not impact the number of awards expected
to
vest or valuation thereof subsequent to grant date. All cancellations, whether by the entity or by other parties, should
receive the same accounting treatment. The amendment does not have a material impact on the group or company's financial
statements.
Mandatory new standards or interpretations, effective for accounting periods beginning on or after 1 January 2009, not
covered specifically above have no impact on the Group's financial statements.
Standards, interpretations and amendments to published standards that are not yet effective
Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for
the
Group or Company's accounting periods beginning on or after 1 January 2010 or later periods and have not been early
adopted. It is anticipated that these new standards, amendments and interpretations, currently in issue at the time of
preparing these financial statements (March 2010) will have no material impact on the Group or Company's financial
statements.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
2.1 Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a
material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a) Estimated impairment of goodwill
Goodwill is subject to an impairment review both annually and when there are indications that the carrying value may not
be
recoverable. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations.
These calculations require the use of estimates.
(b) Retirement benefit obligations
The assumptions used to measure the expense and liabilities related to the Group's two defined benefit pension plans are
reviewed annually by professionally qualified, independent actuaries, trustees and management as appropriate. The
measurement of the expense for a period requires judgement with respect to the following matters, among others:
- the probable long-term rate of increase in pensionable pay;
- the discount rate;
- the expected return on plan assets; and
- the estimated life expectancy of participating members.
The assumptions used by the Group, may differ materially from actual results, and these differences may result in a
significant impact on the amount of pension expense recorded in future periods. In accordance with IAS 19, the Group
amortises actuarial gains and losses outside the 10% corridor, over the average future service lives of employees.
Under
this method, major changes in assumptions, and variances between assumptions and actual results, may affect retained
earnings over several future periods rather than one period, while more minor variances and assumption changes may be
offset by other changes and have no direct effect on retained earnings.
(c) Deferred taxation
Deferred tax assets are recognised to the extent that the Group believes it is probable that future taxable profit will
be
available against which temporary timing differences and losses from previous periods can be utilised. Deferred tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the statement of financial
position date and are expected to apply when the related deferred tax asset is realised.
3. SEGMENT INFORMATION
The Group is organised into two main business segments: Professional Business Services and Stock & Inventory
Systems &
Services.
The segment results for the year ended 31 December 2009 are as follows:
Professional Business Services £'000 Stock & Inventory Systems
& Services £'000 Other £'000 Total continuing operations £'000 Discontinued operations £'000 Group £'000
Total gross segment sales 23,370 23,801
2,226 49,397 - 49,397
Inter-segment sales (104) -
(2,226) (2,330) - (2,330)
Revenue 23,266 23,801
- 47,067 - 47,067
Operating (loss)/profit after exceptional items (3,906) 470
(218) (3,654) - (3,654)
Net finance (costs)/credit (154) (24)
131 (47) - (47)
Loss before tax (4,060) 446
(87) (3,701) - (3,701)
Taxation
1,752 - 1,752
Loss for the year after tax
(1,949) - (1,949)
(3,654)
Net finance (costs)/credit
(154)
(24)
131
(47)
-
(47)
Loss before tax
(4,060)
446
(87)
(3,701)
-
(3,701)
Taxation
1,752
-
1,752
Loss for the year after tax
(1,949)
-
(1,949)
The segment results for the year ended 31 December 2008 are as follows:
Professional Business Services £'000 Stock & Inventory Systems
& Services £'000 Other £'000 Total continuing operations £'000 Discontinued operations £'000 Group £'000
Total gross segment sales 37,011 26,515
2,941 66,467 9,691 76,158
Inter-segment sales (104) -
(2,941) (3,045) - (3,045)
Revenue 36,907 26,515
- 63,422 9,691 73,113
Operating (loss)/profit before exceptional items (3,396) 564
158 (2,674) (3,162) (5,836)
Exceptional items (1,964) -
- (1,964) - (1,964)
Net loss on disposal of Retail Software business - -
- - (6,193) (6,193)
Operating (loss)/profit after exceptional items (5,360) 564
158 (4,638) (9,355) (13,993)
Net finance credit/(costs) 127 (42)
(20) 65 (1) 64
Loss before tax (5,233) 522
138 (4,573) (9,356) (13,929)
Taxation
1,173 (807) 366
Loss for the year after tax
(3,400) (10,163) (13,563)
(6,193)
(6,193)
Operating (loss)/profit after exceptional items
(5,360)
564
158
(4,638)
(9,355)
(13,993)
Net finance credit/(costs)
127
(42)
(20)
65
(1)
64
Loss before tax
(5,233)
522
138
(4,573)
(9,356)
(13,929)
Taxation
1,173
(807)
366
Loss for the year after tax
(3,400)
(10,163)
(13,563)
Other segment items included in the statements of comprehensive income for the years ended 31 December 2009 and 2008 are
as
follows:
Professional Business Services £'000 Stock & Inventory Systems & Services
£'000 Other £'000 Total continuing operations £'000 Discontinued operations £'000 Group £'000
31 December 2009
Depreciation and amortisation 313 365 29
707 - 707
Impairment of trade receivables (501) 69 -
(432) - (432)
31 December 2008
Depreciation and amortisation 383 492 31
906 244 1,150
Impairment of trade receivables 856 36 -
892 43 935
-
(432)
31 December 2008
Depreciation and amortisation
383
492
31
906
244
1,150
Impairment of trade receivables
856
36
-
892
43
935
The segment assets and liabilities at 31 December 2009 and capital expenditure for the year then ended are as follows:
Professional Business Services £'000 Stock & Inventory Systems &
Services £'000 Other £'000 Total continuing operations £'000 Discontinued operations £'000 Group £'000
Assets 6,886 4,906
3,659 15,451 - 15,451
Deferred tax assets
3,067 - 3,067
18,518 - 18,518
Liabilities 9,540 4,479
837 14,856 - 14,856
Borrowings (excluding finance leases)
2,694 - 2,694
17,550 - 17,550
Capital expenditure 4 135
- 139 - 139
14,856
Borrowings (excluding finance leases)
2,694
-
2,694
17,550
-
17,550
Capital expenditure
4
135
-
139
-
139
The segment assets and liabilities at 31 December 2008 and capital expenditure for the year are as follows;
Professional Business Services £'000 Stock & Inventory Systems &
Services £'000 Other £'000 Total continuing operations £'000 Discontinued operations £'000 Group £'000
Assets 6,413 6,135
3,174 15,722 - 15,722
Deferred tax assets
2,063
Current tax assets
596
18,381
Liabilities 8,721 5,144
965 14,830 - 14,830
Borrowings (excluding finance leases)
700
15,530
Capital expenditure 532 363
8 903 1,790 2,693
Borrowings (excluding finance leases)
700
15,530
Capital expenditure
532
363
8
903
1,790
2,693
Segment assets consist primarily of property, plant and equipment, intangible assets, inventories, receivables and
operating cash. They exclude taxation.
Segment liabilities comprise operating liabilities. They exclude items such as taxation and corporate borrowings.
Capital expenditure comprises additions to property, plant and equipment and intangible assets.
The Group manages its business segments on a global basis. The UK is the home country of the parent. The Group's
revenue
is mainly in Europe. Revenue is allocated based on the country in which the customer is located.
31 December 2009 31 December
2008
Continuing operations £'000 Discontinued
operations £'000 Group £'000 Continuing operations £'000 Discontinued operations £'000 Group £'000
Revenue
Europe 46,577 -
46,577 62,508 9,691 72,199
Rest of the World 490 -
490 914 - 914
47,067 -
47,067 63,422 9,691 73,113
Total segment assets are allocated based on where the assets are located.
31 December 2009 31 December
2008
Continuing operations £'000 Discontinued
operations £'000 Group £'000 Continuing operations £'000 Discontinued operations £'000 Group £'000
Total segment assets
Europe 15,335 -
15,335 14,837 - 14,837
Rest of the World 116 -
116 885 - 885
15,451 -
15,451 15,722 - 15,722
Europe
15,335
-
15,335
14,837
-
14,837
Rest of the World
116
-
116
885
-
885
15,451
-
15,451
15,722
-
15,722
Capital expenditure is allocated based on where the assets are located.
31 December 2009 31 December 2008
Continuing operations £'000 Discontinued operations £'000 Group £'000 Continuing operations
£'000 Discontinued operations £'000 Group £'000
Capital expenditure
Europe 139 - 139 903
1,790 2,693
Rest of World - - -
- -
139 - 139 903
1,790 2,693
-
-
-
-
139
-
139
903
1,790
2,693
31 December 2009 31 December 2008
Continuing operations £'000 Discontinued operations £'000 Group £'000 Continuing
operations £'000 Discontinued operations £'000 Group £'000
Analysis of revenue by category
Sale of goods 307 - 307 405
2,836 3,241
Revenue from services 46,760 - 46,760 63,017
6,855 69,872
47,067 - 47,067 63,422
9,691 73,113
-
46,760
63,017
6,855
69,872
47,067
-
47,067
63,422
9,691
73,113
4. EXCEPTIONAL ITEMS
During the year the Group incurred £nil (2008: £1,964,000) of exceptional reorganisation costs.
5. FINANCE COSTS/(CREDIT)
2009 £'000 2008 £'000
Interest payable on bank loans and overdrafts 80 127
Other interest payable 68 34
Interest payable on finance leases - 1
Total finance costs 148 162
Bank interest receivable (9) (178)
Other interest receivable (92) (49)
Total finance credit (101) (227)
Net finance costs/(credit) - continuing operations 47 (65)
Discontinued operations interest payable - 1
Net finance costs/(credit) 47 (64)
(101)
(227)
Net finance costs/(credit) - continuing operations
47
(65)
Discontinued operations interest payable
-
1
Net finance costs/(credit)
47
(64)
6. TAXATION
2009 £'000 2008 £'000
Current tax
UK Corporation tax at 28% (2008: 28%) 29 (981)
Foreign tax 15 -
Adjustment in respect of prior periods (832) -
Total current tax credit (788) (981)
Deferred tax
Origination and reversal of timing differences (1,004) (192)
Unutilised losses surrendered on disposal - 807
Total deferred tax (credit)/charge (1,004) 615
Tax credit on loss on ordinary activities (1,792) (366)
(192)
Unutilised losses surrendered on disposal
-
807
Total deferred tax (credit)/charge
(1,004)
615
Tax credit on loss on ordinary activities
(1,792)
(366)
The tax (credit)/charge is split between continuing and discontinued activities as follows:
2009 £'000 2008 £'000
Continuing operations (1,792) (1,173)
Discontinued operations - 807
(1,792) (366)
-
807
(1,792)
(366)
The tax on the Group's loss before tax differs from the theoretical amount that would arise using the standard rate of
corporation tax in the UK of 28% as follows:
Tax on loss on ordinary activities
2009 £'000 2008 £'000
Loss on ordinary activities before tax (3,845) (13,929)
Loss on ordinary activities at standard rate of UK corporation tax of 28% (2008: 28%) (1,077) (3,900)
Effects of:
- tax losses not yet utilised 747 648
- expenses not deductible for tax purposes 685 2,605
- taxable deductions (362) (393)
- utilisation of tax losses and other deductions (384) -
- adjustment to tax charge in respect of previous periods (833) -
- fixed asset timing differences (328) 6
- other timing differences (242) 119
- rate differential on certain tax losses 2 (66)
- origination and reversal of timing differences - (192)
- unutilised losses surrendered on disposal - 807
Total tax credit (1,792) (366)
- other timing differences
(242)
119
- rate differential on certain tax losses
2
(66)
- origination and reversal of timing differences
-
(192)
- unutilised losses surrendered on disposal
-
807
Total tax
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