Christie Group plc
39 Victoria Street
London SW1H 0EU
United Kingdom
T: +44 (0) 20 7227 0707
F: +44 (0) 20 7227 0708
E: executive@christiegroup.com
www.christiegroup.com
Driving recove ry
Annual Report 2010
Christie Group plc ANNUAL REPORT 2010 Designed and produced by fourthquarter
The paper used in this document contains
materials sourced from responsibly
managed and sustainable commercial
forests, certified in accordance with the
FSC (Forest Stewardship Council).
1 Highlights of the year
2 Our core capabilities
3 Our brands
4 Chairman’s statement
5 Strategy
6 Chief Executive’s review
7 Driving recovery
8 Care sector review
10 Leisure sector review
12 Retail sector review
14 Divisional review
20 Financial review
21 KPIs
22 Board of directors
22 Company information
23 Directors’ Report
24 Corporate governance
27 Remuneration report
29 Statement of directors’ responsibilities
30 Independent auditor’s report
31 Consolidated statement of 
comprehensive income
32 Consolidated statement of changes 
in shareholders’ equity
33 Consolidated statement of
financial position
34 Consolidated statement of cash flows
35 Company statement of changes in
shareholders’ equity
36 Company statement of financial position
37 Company statement of cash flows
38 Notes to the consolidated
financial statements
72 Five-year record
73 Shareholder information
75 Directory
Contents
Christie Group offers a portfolio of professional business services 
for the leisure, retail and care sectors.
These include surveying, valuation, agency, consultancy, finance, insurance,
stock control and business software solutions. Our focus on a limited number
of sectors gives us an unrivalled market awareness in each of these areas.
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. In these ways, and through our
innovative use of technology, we have built a reputation for making a
significant contribution to our clients’ commercial success.
About us
Ch ristie Gro u p plc
Professional Business Services
The expertise offered by Christie+ Co, Christie Finance and Christie Insurance 
covers all aspects of valuing, buying, selling, developing, financing and insuring 
a wide variety of businesses. Its scope is complemented by the comprehensive
appraisal and project management services available from Pinders.
Stock & Inventory Systems & Services
Orridge and Venners are the leading specialists in stock control and inventory
management services. Orridge specialises in all fields of retail, Venners
focuses on the hospitality sector and Vennersys provides software and
systems to the leisure and hospitality sectors.
Our divisions
Overview Business review Governance Financial statements
Directors’ report Christie Group Annual Report 2010 1
• Price stability returned to Christie Group’s core sectors
• Professional Business Services revenue increased by 13.9%
• UK transaction revenues up 21% on 2009
• Return to profit for Group – operating profit of £1.0m
• Significantly reduced operating cost base
• Inaugural profit contribution from European Professional
Business Services 
• European stocktaking business trading improved
following reorganisation
• New offices opened in Austria in 2010 and Dubai in 2011
• Well-positioned in core markets and poised for growth
in recovery
• Proposed dividend of 1p per share
Highlights of the year
REVENUE BY DIVISION
REVENUE BY SECTOR
2010 2009
Leisure
15%
43% 44%
43%
42%
Retail 42% 42%
Care
 
15%
 
14%
2010 2009
Professional
Business Services 54%
54%
49%
Stock & Inventory
Systems & Services
 
46%
46%
51% Our core capabilities
2 Christie Group Annual Report 2010
VIENNA
UNITED KINGDOM
BENELUX
GERMANY
FRANCE
IBERIA
SCANDINAVIA, RUSSIA & THE BALTIC STATES
BARCELONA
RENNES
LYON
PARIS
BERLIN
MUNICH
FRANKFURT
HELSINKI
BRUSSELS
MARSEILLE
CENTRAL & 
EASTERN EUROPE
TORONTO
CANADA
WINCHESTER
ENFIELD
EXETER
HARLOW
MILTON KEYNES 
MAIDSTONE
LONDON
BRISTOL
NOTTINGHAM
IPSWICH
BIRMINGHAM
ALDRIDGE
MANCHESTER
NEWCASTLE
UPON TYNE
LEEDS
EDINBURGH
GLASGOW
The Group provides over 40 individual services across its two divisions. 
These are the main ones:
Christie Christie 
Christie + Co Finance Insurance Pinders Venners Orridge Vennersys
Agency
•
Appraisal
•
Building Services
•
Consultancy
•••
Funding
•
Health & Safety
•
Insurance
•
Inventory 
•
Software and Support
•
Stock Audit
••
Valuation
••
OFFICES
39 offices across 
the UK, Continental 
Europe, Canada and
the Middle East.
EMPLOYEES
Employing 1,150
professional and
specialist staff.
DUBAI
THE MIDDLE 
EAST &
NORTH AFRICA Christie Group Annual Report 2010 3
Professional Business Services
Christie + Co
Christie + Co is the leading specialist
firm providing business intelligence in
the hospitality, leisure, care and retail
sectors. With offices across the UK, it
focuses on agency, valuation services,
investment and consultancy activity in its
key sectors. Internationally, it operates
from offices in the UK, Austria, Finland,
France, Germany, Spain and the United
Arab Emirates.
Market leaders in its sectors, employing
the largest teams of sector specialists in
the UK providing professional agency and
advisory services.
Our brands
Christie Finance
Christie Finance has over 30 years’
experience in financing businesses in 
the hospitality, leisure, care and retail
sectors. Its excellent relationships with 
the clearing banks, centralised lenders,
finance houses and building societies
make it the market leader in providing
finance solutions for purchase or
refinancing in its specialist sectors. 
Prides itself on its speed of response 
to client opportunities and its strong
relationships with finance providers.
Christie Insurance
With over 30 years’ experience arranging
business insurance in the hospitality,
leisure, care and retail sectors, Christie
Insurance is a leading company in its
markets. Its contacts with the UK’s
leading insurers enable it to provide
a premier service including tailored
insurance schemes.
Delivering and exceeding clients’
expectations in terms of the cost of their
insurance and the breath of its cover .
Pinders
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. Its Building Consultancy 
Division offers a full range of project
management, building monitoring 
and building surveying services. 
Looking at the detail of businesses to 
arrive at accurate assessments of their
trading potential and value through 
business analysis and surveying skills.
Stock & Inventory Systems & Services
Venners
The leading supplier of stocktaking,
inventory, consultancy services and
related stock management systems 
to the hospitality sector . Consultancy
services include control audits, ‘live’ 
event stocktaking and Health & Safety
implementation and control. Bespoke
software and systems enable real-time
management reporting to customers
using the best available technologies.
The largest and longest established stock
audit company in the hospitality sector in
the UK and growing in mainland Europe.
Orridge
Europe’s longest established
stocktaking business specialising in 
all fields of retail stocktaking including
high street, warehousing and factory
operations. It also has a specialised
pharmacy division providing valuation
and stocktaking services. A full range of
stocktaking and inventory management
solutions is provided for a wide range 
of clients in the UK and Europe.
Priding itself on the speed with which 
it supplies high-quality management
information to clients.
Vennersys
Vennersys operates in the UK and 
North America and delivers turnkey
EPoS and ticketing systems to visitor
attractions such as historic houses 
and estates, museums, zoos, safari
parks, aquaria and cinemas.
Over 20 years’ experience of delivering
purpose-designed solutions for clients’
ticketing, admissions, EPoS and food 
and beverage sales requirements.
Christie + Co
www.christie.com
www.christiecorporate.com
Christie Finance
www.christiefinance.com
Christie Insurance
www.christieinsurance.com
Pinders
www.pinders.co.uk
www.pinderpack.com
Venners
www.venners.com
Orridge
www.orridge.co.uk
www.orridge.eu
Vennersys
www.vennersys.co.uk
www.vennersys.com 4 Christie Group Annual Report 2010
Chairman’s statement
I am pleased to report that the return to profit reported
in my interim statement continued for our second half.
It gives me particular pleasure to say that the Continental
European operations of our Professional Business
Services Division reported a profit for the first time.
More detail is provided below.
Revenue for the period was £48.9m (2009: £47.1m), an
improvement of 3.9%, which, when combined with our
sustained cost control, resulted in an operating profit of
£1.0m. To put that into perspective, operating costs were
£47.9m (2009: £50.7m), a decrease of 5.6% on 2009 and
27.6% down from the peak in 2008 while operating profits
of £1.0m represent a positive swing of £4.7m from the
loss of £3.7m reported in 2009.
The Board’s strategy of timely cost reduction, whilst
protecting our range of services and capacity, has
enabled Christie Group to exploit a number of new
opportunities which have arisen from the more recent
stabilised trading environment.
Christie Group is well-positioned to take advantage of
the improving trading conditions. We ended the year with
no net debt and cash in hand.
Professional Business Services (PBS)
PBS has built on a strong first half performance to
deliver a full year operating profit of £1.5m (2009: £3.9m
loss), a £5.4m improvement. Revenue for the division
totalled £26.5m (2009: £23.3m).
A particular highlight has been the contribution made by
our international operation which supports the decision
taken 13 years ago to build an international transaction
and advisory business in Christie + Co. Our investment
has created an infrastructure of 10 offices across
Continental Europe and an inaugural profit in 2010.
During the year we established a presence in Austria and
are now pleased to announce the opening of an office in
Dubai. This further extends the territory where Christie +
Co can offer clients a seamless service, with offices also
located in France, Germany, Spain and Finland.
Encouragingly, we are witnessing an increase in cross
border deal flow reflecting the global interests of our
clients and the investor community.
In the UK, our business mortgages operation has enjoyed
a record year and the Government’s Project Merlin
initiative will, we hope, provide further impetus for 2011.
Our insurance business has operated in an environment
of intense premium pressure and we have therefore
taken the initiative to create a decentralised sales
function based in East Anglia, which will benefit from a
lower cost base whilst still enjoying easy access to the
London insurance market.
Stock & Inventory Systems & Services (SISS)
Our businesses in the SISS division felt the impact of
the recession later as clients sought to destock and
reduce their stocktaking requirements; a trend which
has now started to reverse with a return to more regular
audit patterns.
Despite this, revenue for the year fell 5.9% to £22.4m
(2009: £23.8m), generating an operating profit for the year
of £0.3m (2009: £0.5m).
SISS experienced lost working days in both November
and December due to snow. Whilst this had a direct
impact on the 2010 results, it has resulted in the division
working at full stretch in January to catch up on these
delayed assignments.
In Europe, we have successfully consolidated our
operations in Brussels and installed new local
management. In the final quarter of 2010, the operation
returned to profitability. Our client offering across the UK
and European operations has attracted significant new
business for 2011 from pan-European retailers.
Our visitor attraction system added Arundel Castle and
Blue Reef Aquarium to its user base in the second half.
We also signed Landmark Cinemas, the third largest
chain in Canada, as the latest customer for our
distributed cinema system.
Outlook
Price stability has now returned to the business sectors
in which we operate, with asset prices showing
improvements across most sectors. Buyer confidence
has translated into an increase in transaction income,
with 2010 UK transaction revenues showing a 21%
increase on 2009.
We are seeing the emergence and re-emergence of
lenders to our sectors and, with continued low interest
rates, businesses are eminently affordable where funding
is available.
For overseas investors, the weakness of sterling
continues to make UK assets attractive. Through our
network of offices, we believe that Christie Group is
uniquely positioned to facilitate these transactions.
Our stocktaking businesses hold an optimistic outlook
for 2011 and beyond.
Momentum in both our divisions has carried over from
2010 into 2011. Whilst it is too early to predict with a high
degree of certainty the road to recovery, it is clear that the
quality of our staff will dictate the success of Christie
Group in years to come.
I must thank my colleagues who have done an excellent
job in difficult circumstances and extend a warm welcome
to the bright young talent we have joining their ranks.
Michael Likierman has, at the age of 70 and after serving
more than 9 years as a Non-executive Director, decided
to retire from your board at our forthcoming AGM in June.
Michael’s perceptive grasp and knowledge of our markets
internationally has been a great help to us and we thank
him and wish him well for the future.
We believe 2011 will mark further progress for our Group.
We therefore propose to reinstate a dividend of 1p per
share, and we will review again at the end of the current
financial year .
Philip Gwyn
28 March 2011 Brand 
strength and
endurance 
International
development
Financial
stability
Flexible
approach
Focused
and clear
direction
Operational
efficiency
Christie Group Annual Report 2010 5
Our strategy for resilience Key drivers
Focusing rigorously 
on our core sectors 
We maintain a rigorous focus on
strengthening our capabilities within our
core sectors. This disciplined approach
aligns our activities with clients’ interests
and creates more opportunities to extend
our services and broaden our client base.
Developing our global reach
Our divisions provide portfolios of
interconnected services to facilitate 
our clients’ business activities in the 
UK, Continental Europe and around 
the world. Our risks and opportunities 
are increasingly diversified across
economies, industry sectors and the
services we offer .
Maximising our synergies
Individually, our companies acquire 
in-depth understanding in their chosen
markets. Together, they have the
resources to deliver services and skills
which are highly complementary. They 
add more value when they combine 
their strengths on behalf of our clients.
Flexible approach
We aim for flexibility in the way we meet 
our clients’ needs. In these changing and
challenging times, we consider one of our
“core competencies” to be the ability to 
flex our resources to meet the varying 
levels of demand in the marketplace. 6 Christie Group Annual Report 2010
Chief Executive’s review
Christie Group performed strongly in the year under
review. We had already demonstrated our resilience in the
downturn, and during 2010 we proved we could operate
effectively on a lower cost base. We are now operating in a
marketplace where specialist skills are highly prized: we
are well-positioned, and poised for growth.
I am delighted to report that, as predicted last year,
the Group has returned to profitability. This is a real
achievement, the result of a lot of hard work and
dedication from people at all levels of the business.
They have risen to the challenge. It is testament to the
quality of the people we have in the Group.
Strength in depth
Our business model emphasises the importance of
specialist knowledge. We succeed by understanding
our chosen sectors in depth and by delivering highly
relevant services.
The Group is balanced and highly diversified. We have low
gearing. As an asset-light business, we are cautious about
unnecessary gearing. Our profile limits our exposure to
any specific risk. Risk is spread by our range of services,
the number of clients, our geographical reach and the
complementary nature of the sectors in which we operate.
We are active in three sectors, each of which has different
performance characteristics across the economic cycle.
The leisure sector is highly geared to economic activity,
retail has a moderate positive correlation and the care
sector is normally relatively unaffected.
In each of our sectors, we focus primarily on small and
medium enterprises (SMEs), of which there are a quarter
of a million in the UK. We aim to create shareholder value
by offering them services that add value across the
business cycle: from the acquisition of a new business,
through day-to-day management, further development
and to eventual sale.
Our aim is to grow and harness the global reach of our
brands. Our stocktaking businesses are focused on
increasing their pan-European penetration and our new
Christie + Co offices in Vienna and Dubai will act as
springboards to Central and Eastern Europe and the
Middle East respectively.
Our markets
Over the past two years we have endured a deep
recession, comparable to our previous experience.
In 2008 and 2009, as with previous recessions, it was
necessary to manage our businesses around a rapid
decline in property prices and activity.
Our evidence now suggests that we have passed the
bottom of the cycle. In 2010, property prices stabilised
and volumes across our Professional Business Services
companies began to recover .
When the going gets tough, experience counts for
even more. We’re fortunate that our top managers
have been through this cycle before. We saw the
downturn coming and we were prepared. We acted
in good time to avoid any long-term, negative effects
on the business.
As volumes fell, we were able to reduce our cost base
without compromising core capabilities. The Group is
leaner and fitter as a result of these cost reduction
measures.
Future savings are likely to be incremental, offset by
investment for growth. As a business we have the benefit
of experienced, high quality people. Many of the Group’s
senior staff have worked together for a long time to
create the businesses we now have. The main focus now
will be on growth and income generation.
We have outperformed many of our peers. In the majority
of our businesses we increased market share while less
committed competitors scaled back or withdrew from
these markets.
Our businesses
Our two divisions concentrate respectively on assets and
operating efficiency. The Group’s businesses provide over
40 separate services, covering all stages of the business
cycle. With many transactions and numerous customers,
our overall performance is not reliant on any individual
transaction or customer .
Professional Business Services
Property prices stabilised in our sectors in 2010. As it
became more apparent that this stability was being
sustained, confidence built up and buyers began to
return. Many were small-scale local entrepreneurs.
There was more activity around distressed businesses.
This was matched by a shift in market dynamics. More
instructions are coming directly from lenders.
We are finding that our depth of expertise is better
appreciated in the market. As trading conditions become
more challenging, company owners and lenders want to
deal with people who fully understand their businesses.
We’re increasingly being asked to make judgments on the
quality of a business’s management, the appropriateness
of its brand and trading style, its market positioning and
its potential – rather than simply provide asset valuations.
I am delighted to advise that the authoritative Estates
Gazette announced Christie + Co as the clear winner for
2010 in its newly created Leisure & Hotels category as
the UK’s most active agent based on deals completed.
Our finance brokerage has been growing fee income both
by developing its own contacts and through internal
introductions. Our insurance brokerage is winning repeat
business by sourcing lower premiums and providing a
higher level of service to its client base.
Stock & Inventory Systems & Services
The fiercely competitive trading environment has focused
minds on effective cost control. There have been
opportunities as well as challenges for the businesses in
this division.
However, we are building on our strengths and bringing
the benefits of technology and proven operating systems
to major retailers, who are increasingly mindful of the
importance of just-in-time availability. They rely on
independent stocktakers to alert them to delivery and
production needs. They are also only too aware of the
cost of stock shrinkage and fraud. When margins are
tight these become pressing issues for business owners.
We are benefiting from this change of emphasis and have
added some major new customers.
In the wider UK licensed trade, the wave of insolvencies
has hit turnover . The hospitality sector has begun to
recover from the collapse in activity in 2009, but is not yet
back to pre-crunch levels. In Europe, our retail business is expanding into new
countries and providing the benefits of our pan-European
reach to markets that have previously only been served
by domestic suppliers.
Visitor attractions and other leisure facilities are
enthusiastically adopting integrated technology for
managing both visitors and stock. Every new VENPoS client
in 2010 embedded our state-of-the-art online module
into their deployment of our market-leading software.
The road ahead
It seems likely that the worst of the recession is behind
us. There will be bumps along the way, but we are
resilient, battle-hardened and we have strength in depth.
As a market-sensitive business, some events are
dictated by external circumstances. We can plan for
these, but the effects on supply and demand are hard to
gauge. The January VAT increase was one such event.
Typically, tax increases have a temporary effect but, once
assimilated, their impact diminishes rapidly. VAT has
little or no effect on business-to-business activity but,
if it can’t be passed on to customers, a 2.5% increase in
costs for leisure and licensed premises can make a
significant dent in those businesses’ profits. Rises in
alcohol duty will not be welcomed by the hospitality
sector, but reductions in fuel duty may partially mitigate
the impact. Although it is still too early to assess the
overall effect of the Coalition Government’s policies,
our planning assumes minimal economic growth.
It is impossible to freeze costs indefinitely. We expect a
slight increase in our cost base going forward, as we
invest for growth. With all of our businesses predicting
growth, this should be more than compensated by
additional revenues.
With an improved market share, we are poised to take
advantage of the new conditions. Even without further
recovery, each of our businesses is predicting increased
revenue. As markets finally recover, we anticipate
additional growth.
David Rugg
28 March 2011
Driving recovery
Margins increased
We took a long, hard look at expenditure
and lowered our cost base. Having achieved
this, the Group still retains its core
competencies and is more profitable.
Market share growing
Some competitors withdrew from our
core markets when times were tough.
Our long-term commitment has been
rewarded with a healthy sales pipeline
and improved conversions.
Strength in depth
In-depth expertise in our chosen sectors 
is increasingly attractive in the markets 
we serve. Our customers prefer to buy
proven experience. 
Opportunities identified
We maximise synergies by making sure
that our businesses act collaboratively
and add value for our customers by
providing complementary services.
Balance sheet strength
The Group has no net debt and is in a
strong, sustainable financial position.
Shareholder return
The Board has reinstated an annual
dividend and is focusing its energies 
on growing shareholder value.
Talent engaged
We are improving the Group’s long-term
prospects by recruiting accomplished
individuals and developing expertise in-house.
Christie + Co’s graduate programme is
attracting high-calibre candidates.
Locations added
The new Christie + Co offices in Vienna
and Dubai will extend our global
presence. Vienna will act as a gateway to
Central and Eastern Europe, and Dubai
to the Middle East and North Africa.
Christie Group Annual Report 2010 7 8 Christie Group Annual Report 2010 8 Christie Group Annual Report 2010
Quality is the watchword for the months 
ahead. Care homes and specialist units 
are focusing on improving their residents’
physical environment and care regimes. Christie Group Annual Report 2010 9
SECTOR REVIEW
Care
Care
Retail
Leisure
WE COVER:
Residential Care Homes
Nursing Homes
Hospitals
Surgeries
Daycare Centres
Childcare Centres
Schools
Colleges
Close Care/Assisted Living Centres
Secure Units
Dental Practices and Doctors’ Surgeries
Domiciliary Care Businesses
Animal Businesses
Christie Group Annual Report 2010 9
Driving recovery in care... Demand for independent 
care places will expand as the UK's population ages.
However, in the short term, this traditionally resilient
sector faces a delicate period. Care homes must deal
with higher VAT and constrained local authority budgets.
They are being asked to raise standards, but value 
for money is also being pushed up the agenda. Better 
cost management will be a key strategic objective.
Christie Group: helping to 
create and maintain desirable
care environments. 10 Christie Group Annual Report 2010
Changing customer preferences
favour budget fitness, spa and
cinema businesses at the expense
of the late-night sector . SECTOR REVIEW
Leisure
Driving recovery in leisure... There are grounds for
optimism. Historically, leisure tracks GDP, but a lot
depends on the banks. So far, they have supported
existing customers, but have shown less interest in
funding new ventures. Health clubs and cinema venues
are attracting more customers, but licensed businesses
are under pressure. In the UK, the Royal Wedding,the
2012 Olympics and Paralympics and the relative
weakness of sterling will all have a positive impact.
WE COVER:
Hotels
Public Houses
Bars
Restaurants
Takeaways
Sports Centres
Fitness Centres
Cinemas
Entertainment Venues
Nightclubs
Gaming and Betting Businesses
Visitor Attractions
Destination Resorts
Serviced Accommodation
Caravan Parks
Holiday Parks
Guesthouses
Railways
Currency Bureaux
Event Caterers
Bowling Alleys and Greens
Christie Group Annual Report 2010 11
Christie Group: helping to 
create and support opportunities
for entrepreneurs to enter 
and expand in leisure.
Leisure Care
Retail 12 Christie Group Annual Report 2010
Retailers are in the front line as the
austerity measures bite. However, 
they can prosper if they have the 
right goods, great customer service 
and efficient back-office systems. SECTOR REVIEW
Retail
Driving recovery in retail ... Consumer confidence is
returning but remains fragile, with some sectors doing
better than others. The pharmacy sector is driving
income through the provision of enhanced services and
the convenience sector is outperforming the rest of the
grocery market. Convenience sales are helping to
support petrol stations by offsetting lower fuel sales and
higher costs including business rates. Many retailers are
affiliating with symbol groups to create a ‘ corporate
profile’ to their businesses.
Christie Group Annual Report 2010 13
WE COVER:
Supermarkets
Convenience Stores
Newsagents
Booksellers
Off-licences
Post Offices
Warehouses
Supply Chain Premises
Professional Practices
Forecourt Businesses
Specialist Shops
Pharmacies
Christie Group: helping to
minimise stock holdings and
optimise stock availability.
Retail
Care Leisure 14 Christie Group Annual Report 2010
DIVISIONAL REVIEW
Professional
Business
Services
“Our international
network achieved
critical mass and
accelerated our 
global reach.”
Chris Day
MD Christie+ Co 
and a Christie Group Director
“We inspected around
15,000 businesses 
for sale or valuation
purposes.”
Simon Hughes
MD Christie + Co UK
CHRISTIE + CO
Christie + Co is Europe’s largest specialist
business broker, providing expert advice and
valuations in the hospitality, leisure, care,
education and retail sectors. With fifteen 
UK regional offices, our nationwide operation
makes us the market leader . We have a
growing presence in Europe and the Middle
East with four offices in France, three in
Germany and one each in Spain, Finland,
Austria and the United Arab Emirates. 
We are market leaders in our sectors, employing
skilled specialists across our network of
multinational offices. We have the scope and 
the resources to provide business-friendly
agency and advisory services for every kind of
organisation, from the largest multinational to 
a local start-up. In 2010, we inspected around
15,000 businesses for sale or valuation purposes,
and reviewed several thousand more on a
desk-top basis.
In tough trading conditions, in-depth sector
expertise is in demand. Our customers recognise
the advantages of business services supported
by deep sector knowledge. Some competitors
have scaled down their activities or withdrawn
from the market; we have been increasing our
market share.
There were signs during the year that buyer
confidence was returning. After two years of
rapidly declining property prices, they finally
plateaued. For potential buyers, the more 
stable conditions made it easier to assess
opportunities. Around 70% of buyers were local
entrepreneurs looking to acquire assets at
bargain prices. Meanwhile, more corporate
owners chose to sell units that didn’t fit their
portfolios, accounting for 44% of our sales. 
With more bank-led restructurings in the mix,
lenders and insolvency practitioners accounted
for more instructions. A major bank appointed 
us a tier-one advisor . We handled over 1,300
distressed businesses during the year; the vast
majority of these instructions were aimed at
preserving businesses rather than facilitating
forced sales.
In September, we opened a new office in Vienna,
specialising in the hospitality sector . With nearly
14,000 Austrian hotels and no specialist agencies
in the country there is a great opportunity there.
Vienna is also a stepping stone to Central and
Eastern Europe where Austrian banks have
strong connections. 
We are actively developing new markets in
Europe and beyond. Our Helsinki office undertook
assignments throughout Scandinavia and the
Baltic States and as far afield as Lapland 
and Siberia.
We have subsequently opened in Dubai in 2011,
which will allow us to extend our global reach,
especially to over 20 countries in the Middle East
and North Africa region.
Technology is helping us develop our service and
identify additional opportunities. We have recently
become the only business agent in the UK to
provide a legally-binding method of exchanging
contracts online. Also, our own property
database, with over 130,000 live businesses and
over 30,000 active applicants, is a vital tool across
the company, facilitating inter-regional and
international transactions.
Recruitment is a priority area. We have attracted
excellent graduates and are now training them
up in the business. They are already contributing
energy and ideas and will be important for 
our future. 
We entered the year having cut costs significantly
in 2009, but this has not compromised our
capabilities. We are gaining traction internationally
and strengthening our reputation in the UK. 
We anticipate continued improvement in the
years to come.
CASE STUDY: Hilton Hotel Valencia
Acting as exclusive advisors to Eurohypo, and 
on behalf of Administrators, Christie+ Co sold, 
in early 2011 , the freehold 5-Star,304-bedroom
Hilton Hotel Valencia, the tallest building in
Spain’s third largest city. After a coordinated
marketing campaign across several of its
European offices, Christie+ Co sold the hotel 
to Continental Property Investment, the
Paris-based, investment company, for an
undisclosed sum, in what was a landmark
transaction bringing together a Spanish hotel, 
a German bank and a buyer based in France.
CASE STUDY:Paramount Restaurants portfolio
Acting on behalf of Paramount Restaurants,
Christie+ Co sold the leasehold interests 
of 28 of the company’s non-core assets. 
Christie+ Co and Paramount worked closely 
with landlords and buyers during the
campaign, which was successfully concluded
just five months after its official launch, with
significant premiums achieved on several
sites. The average price paid for each
restaurant was in excess of £250,000. CASE STUDY:£50,000 saved on 
directors’ life assurance
After successfully securing the business
insurance for a group of care homes, Christie
Insurance was invited to quote for the 
life assurance on the business’s two key
directors. Having reviewed the business as 
a whole, including its borrowings and existing
life cover, Christie Insurance was able to 
offer a more streamlined and efficient policy. 
Once implemented, this saved the business
over £50,000 over the policy’s term.
CASE STUDY: MY Care Group
Christie Finance facilitated the expansion of 
MY Care Group by ‘gearing up’ on four of its
existing care homes and providing additional
funding to purchase a further three. Christie
Finance arranged multi-million pound facilities
and instructed Pinders to provide business
appraisal advice and valuations of all seven
units. Christie+ Co sold the additional three
units to MY Care Group and Christie
Insurance provided competitive insurance
quotations for all seven care homes.
CHRISTIE FINANCE
Christie Finance is an independent business
mortgage broker with over 30 years’ experience,
specialising in the hospitality, leisure, care,
education and retail sectors. We assist both
first time buyers and experienced operators
wanting to acquire, expand or refinance their
businesses, and offer a nationwide service 
in the UK. We pride ourselves on always
responding rapidly to client opportunities.  
Funding restrictions for businesses continued 
to dominate the UK market for mortgage-based
finance in 2010. Many companies still found the
mainstream banks unwilling or unable to 
extend credit. 
This has created opportunities for us. Our
stable, experienced team of specialist
commercial brokers is well-placed to assess
the merits of the business cases presented by
potential clients. 
Many mortgage brokers have withdrawn from
the market. We have bucked the trend. As
specialists, we are experiencing an even greater
call on our services. We have increased our fee
income from both internally generated and
external sources.
Christie Finance brokers benefit from their
knowledge of both financial and business property
markets. As a member of Christie Group,
we work closely with our sister companies.
Our brokers work alongside Christie + Co
negotiators to help potential buyers secure
funding based on sound business principles. 
Even the most successful corporate operators,
faced with the well-publicised constraints at
their banks, had difficulty sourcing funding for
growth in 2010. We conducted financial reviews
and arranged refinancing for several operators
in the healthcare and hotel sectors, among
them MY Care Group (see case study top left).
We continued to take advantage of the
Government-assisted Enterprise Finance
Guarantee Scheme. Most of the deals brokered
for first time buyers were supported by the
scheme. We also used it to back leasehold
opportunities that might not otherwise have
attracted finance.
For 2011, we are seeing early indications of
increased transaction activity. It is still too 
early to be confident that any recovery will be
sustained, but we are cautiously optimistic.
CHRISTIE INSURANCE
As an independent insurance intermediary,
Christie Insurance aims to negotiate the best
deals for all our clients. We have specialist
knowledge of the insurance market together
with a detailed, in-depth understanding of the
hospitality, leisure, care, education and 
retail sectors.
There were tentative signs during 2010 that the
long-term decline in premiums may be drawing
to a close. With low investment income and
increased claims, insurers are under pressure
to raise their premiums to rebuild their balance
sheets. On the other hand, with competitors
wishing to build market share, this means the
pressure to reduce premiums continues. As a
result, our clients should continue to benefit
from competitive premiums. As brokers, we
anticipate being able to uncover good value
insurance in niche areas. 
We have always embraced technology, but
continue to believe in the importance of
personal service. Our 90% client retention rate
demonstrates the success of our approach.
The overwhelming majority of our clients want
to hedge risks through an intermediary that
understands their business needs and
manages claims actively. 
We enjoy excellent working relationships within
the Group and are improving our conversion
rate. By the end of 2010 we were converting 45%
of the leads made available by Christie + Co and
Christie Finance, both of which continue to be
our main sources for new business generation.
In 2010, we established an agency with Liverpool
Victoria, which extends our placing ability.
LV has a strong brand reputation. Its sector
priorities align well with our business and its
digital infrastructure facilitates swift
transactions. It is a valuable addition to our
underwriting panel.
With business insurance becoming more
complex, there is even more reason for
customers to work with a specialist
intermediary; one that understands insurance
market dynamics and the specifics of their
particular circumstances. We have a strong
pipeline for 2011 and anticipate continued 
future growth.
DIVISIONAL REVIEW
Professional
Business
Services
“We are experiencing
new lenders emerge
and others come back
into the market.”
David Grant
Head of Business Mortgages 
Christie Finance
“Insuring trading
businesses is 
a highly specialised
discipline.”
Walter Murray
MD Christie Insurance
Christie Group Annual Report 2010 15 16 Christie Group Annual Report 2010
DIVISIONAL REVIEW
Professional
Business
Services
“In a tough economic
climate, we are
benefiting from a 
flight to quality and 
our performance
improved significantly .”
Justin Cain
MD Pinders
PINDERS
Pinders is a leading business valuation
provider . We assess businesses in detail to
arrive at valuations that reflect both the quality
of their fixed assets and their trading potential.
Our work is a mix of transactional and
consultancy assignments. Our database, built
up over 40 years, contains detailed analyses 
of over 180,000 businesses.
Our RICS-qualified valuers operate in five main
sectors – healthcare & education, licensed trade,
retail & catering, leisure & hospitality and services
& manufacturing. They provide services spanning
six broad categories – appraisal & valuation,
consultancy, dispute resolution, building surveying,
project management and business recovery.
A rigorous cost-cutting exercise placed the
business on a firmer footing at the end of 
2009. We took the opportunity to reorganise
ourselves as a more client-centric organisation.
Meanwhile, many of our competitors scaled back
their operations or withdrew from the market.
In a tough economic climate, we are benefiting
from a flight to quality and our performance
improved significantly in 2010. Lenders and
other commissioners can see the advantages of
working with sector specialists. They also favour
valuers with good local knowledge. We recruited
additional regional valuers in Scotland and the
South East to strengthen our nationwide coverage.
Our programme to develop a stronger presence
on bank panels continues to bear fruit. Banks
are tightening their panel appointment criteria
and several of them required panel members to
reapply during 2010. In every case, not only were
we reappointed but we extended our remit. 
We also gained a new appointment to the
Clydesdale/ Yorkshire Bank panel.
The lending, debt and debt recovery teams in the
banks account for around 50% of our referrals.
The other 50% were from brokers (40%) and 
a range of other sources (eg accountants, etc).
With panels getting smaller, we are growing
market share. As banks became more active 
in 2010, lender instructions rose by 33%. Lloyds
Banking Group and Santander each placed at
least 75% more business with us and, in total
over the year, we advised on businesses worth
over £1.75 billion.
Insolvency practitioners and solicitors are
becoming more influential: we are developing
closer relationships with them. The not-for-profit
sector has been another growing source of
revenue. In this context, we assisted with the
disposal of four care home facilities for
not-for-profit organisations. 
Our consultancy business is growing. Customers
with complex business plans benefit from a
broader-based, bespoke service. With over 
40 years’ experience in business valuation we
can contribute at every stage, from concept 
to completion. 
There has been a significant rise in the 
number of dispute resolution appointments. 
We act as expert witnesses and are able to
provide mediation services. Our extensive
property database going back to 1969 is a vital
resource here as many disagreements have
historical roots. 
We continue to develop new services. Our
business support and recovery service was a
specific response to the downturn. Our property
healthcheck report is a popular, low-cost option
for business owners who require an independent
appraisal of the assets underpinning their
companies.
We have been at the forefront of the healthcare
and education sector for over 40 years. In 2010,
we again hosted the annual Healthcare Design
Awards, which were more popular than ever . 
2010 began well and our business gathered
momentum as the year progressed. The final
quarter, which is usually relatively quiet, was 
our most profitable period of the year . This
augurs well for the future. We have increased
market share and lowered our cost base. Even
with static market conditions, we anticipate
continued improvement in 2011.
CASE STUDY: Playbox Theatre valuation
The Playbox Theatre in Warwick is a modern
250-seat theatre, built in 1999. It is held on a
99-year lease and is run by a charity. As well 
as holding main performances, it is regularly
used by community groups. The proposal was 
to improve access to the building and add
more studios. Lloyds TSB required valuation
advice, which involved detailed landlord and
tenant considerations, in addition to a
conventional business appraisal.
CASE STUDY: Cromford Mill valuation
Cromford Mill is a large-scale visitor
attraction in Derbyshire, with World Heritage
status. Pinders’ advice was needed for Lloyds
TSB regarding the potential development of
unused aspects of the site via a £4million
lottery grant. The valuation involved
multi-disciplinary aspects, including
investment valuations of let units and the
valuation of various owned cafes, conference
facilities, retail premises and vacant units. CASE STUDY: Hotel recovers from 
stock deficits of 30%
A mystery visit by Venners to a hotel highlighted
what really happened during service, despite
seemingly adequate rules, training and supervision.
The visit identified various issues that were
contributing to large stock deficits, including: 
skill shortages, free and oversized drinks at the 
bar and incorrect glass usage. At the following
consultation with Venners, the necessary 
controls to turn the business round were agreed.
The management implemented these measures 
helping to put the hotel back in the black.
CASE STUDY: Event profits soar 
as stock losses are slashed
A new client’s events were producing a
combined stock and wastage loss of 14% of
sales. As Venners’ systems connect individual
staff to stock results, the event controllers
were able, with Venners’ help, to analyse how
team leaders and unit managers performed
across a number of events. Venners
highlighted problem staff and pinpointed
areas of major stock loss. Within four months,
the client had reduced stock losses at its
events to 5%, and had substantially improved
profit margins.
DIVISIONAL REVIEW
Stock&
Inventory
Systems&
Services
“Only when stocktaking
is completed by trained
professionals does 
it assist businesses’
efficiency and margins.”
Trevor Heyburn
MD Venners
Christie Group Annual Report 2010 17
VENNERS
Venners is the UK’s largest and longest
established stock audit company, specialising in
the hospitality sector . We provide nationwide
coverage in the UK and are developing a
growing presence in Continental Europe.  
The business performed solidly throughout 2010
in difficult circumstances, and improved as the
year went on. We completed over 20,000 stock
and compliance audits during the year and new
stock and audit customers included Hilton
Hotels, Stonegate Pubs and Park Resorts. 
Our quality service is maintained through our
auditors’ expertise and by continually investing 
in cutting-edge technology. We don’t subcontract,
but rely on our own highly experienced team. 
Our full-time auditors have been doing the job
for an average of 14 years. We are currently the
only stock audit company recognised for brand
authenticity testing by the International
Federation of Spirit Producers.
At the start of 2010, we launched a dedicated
Tenancy Division. It targets pub companies and
family brewer tenants, providing support across
stocktaking, health & safety, compliance auditing,
food safety and, via our preferred partners,
accounting services. We completed over 2,000
tenancy audits during the year . We also offer
training courses covering the essentials of stock
management, helping operators spot fraud.
These are especially popular with tenants just
starting out in the trade. 
We are extending our European advisory services.
The owners of Intercontinental Hotel Group 
(IHG) asked us to produce independent audits 
for a selection of its European managed hotels. 
In 2010, we were designated a preferred supplier . 
Having honed our capabilities, we are developing
our operational and consultancy Events business.
Events pose particular logistical challenges as
audits have to be conducted against the clock 
in busy locations, and often on temporary sites 
and at anti-social hours. 
We completed fifty major assignments in 2010,
supported Sodexo at Royal Ascot and provided
live stocktaking and consultancy for all major
Twickenham and Wembley events.
Our processes record wastage and can connect
specific individuals or teams with stock issues.
By monitoring any individual’s performance over
several events, managers can identify problems
and take steps to rectify them. 
Our operators in the field have a high level of
autonomy. Their activities are supported with 
the latest communications systems. In 2010, 
this included the provision of 3G-enabled laptops 
to speed up delivery times of our new stock 
audit results, which received great plaudits from
our customers.
During the year, we appointed two additional
Directors with specific responsibility for tenancy
and consultancy. These were key appointments
that helped us sharpen our client focus. We also
strengthened our business development team.
Revamped reporting materials are giving
customers much more intuitive audit
summaries, and our research capabilities have
been upgraded with the transfer of our marketing
and sales database onto our new CRM software.
We maintain strong connections with our sister
companies. For example, we prepared an
inventory of the chattels for the luxury Llangoed
Hall hotel when it was sold through Christie + Co,
and we now provide stocktaking services for the
new owner .
New marketing channels are generating
additional business, and relationships with trade
consultants and sector accountants have won 
us major new clients, including S&N (Heineken)
and Punch Partnerships. 
Our cost reduction programme in 2009 built a
solid platform for growing the business in 2010.
Our new IT systems are working well and our
staff have adapted to changes in working practices,
helping us improve our operational efficiency.
We entered 2011 with a strong pipeline and 
a good conversion rate, and are cautiously
confident for the year ahead.
3million
PEOPLE
DRIVING RECOVERY
VENNERS
Controlled stock at
events attended by  18 Christie Group Annual Report 2010
“We act as an
extension of our
clients’ businesses,
seamlessly interfacing
our reporting with 
their systems.”
Paul Harding
MD Orridge
DIVISIONAL REVIEW
Stock&
Inventory
Systems&
Services
CASE STUDY: Wickes
Wickes is one of the UK’s leading suppliers 
of home improvement products. With nearly
200 stores and a product range that includes
over 6,000 own-brand items, the accuracy 
of Wickes’ inventory is crucial to delivering 
its stock loss strategy. Orridge plays a 
pivotal role by improving the accuracy of
Wickes’ stock cycles, thereby ensuring that 
the client can implement its shrinkage
reduction programmes with confidence.
CASE STUDY: Carphone Warehouse
With over 800 stores in the UK, Carphone
Warehouse is the country’s largest
independent mobile phone retailer . Orridge
conducted full ‘wall-to-wall’ stocktakes in 
1 16 of its stores in order to measure true
shrinkage rates and produce independent
results to compare against those collected
in-house. Further counts will be rolled out
during 2011 to support the company’s loss
prevention strategy.
ORRIDGE
Orridge was founded in 1846 offering specialist
stocktaking services to the pharmacy sector . 
A century later it expanded into other retail
sectors. Today, it is one of the UK's leading
retail stocktaking businesses with a substantial
European presence.  
Tough economic climates encourage retailers 
to focus even more on operational efficiency.
Accurate, objectively sourced stock data is key to
that. Orridge has built up a solid reputation and
a sound infrastructure over many years. We 
are trusted to provide this vital information. By
helping businesses manage their supply chains
and combat leakage and fraud, we protect their
margins and minimise insurance premiums.
Our long experience and the scale of our
operations allow us to provide cost-effective,
consistent inventory analysis. On a typical
working day, we conduct an average of 120
stocktakes. Over the course of 2010, we counted
110 million pieces of clothing, 110 million books
and stationery items and 400 million health &
beauty items and dispensary stock.
We have a large, diverse and loyal client base,
with the bulk of our customer relationships
sustained over many years. Our work for the
Cooperative group is a case in point. It employs
120,000 people across the UK and serves around
10 million customers every week. It relies on us
to maintain the accuracy of its inventory records.
We have been providing stocktaking services 
to Cooperative Pharmacy since the mid-1970s.
Since 2006, we have also been the sole provider
to Cooperative Foodstores.
We nurture these relationships by consistently
evolving our service to match developing
customer needs. We are always striving to
improve the speed, accuracy and relevance of
our services.
We take full advantage of technological
developments. During the year we equipped our
supervisors with tablet PCs so they can conduct
detailed validations more efficiently. We have
also made greater use of our online employee
portal to upload and consolidate data, and
enhanced the management information
capabilities on our online client portal. 
We are active all over mainland Europe where
around 10% of our revenue is generated. 
We offer English, French, Dutch, Spanish
and German speaking experts and a
multilingual website.
Our relationships with UK retailers support 
our international ambitions. We added 18 major
clients in 2010. We conducted Europe-wide trials
with international clothing retailer Zara and 
won a new client contract with Italian outfitter,
Ermenegildo Zegna. 
It is currently fashionable for businesses to
stress the importance of partnership, but this
has always been at the heart of our approach.
For example, with Wickes, the building materials
specialist, we are embedded in its supply chain
strategy. Our stocktaking is pivotal and helps 
the company reduce shrinkage, combat fraud
and align stock cycles accurately. Equally, 
our counts for other customers are timed to
coincide with their loss prevention strategies. 
Working alongside other Group companies
remains a priority. We collaborated with 
Christie+ Co on around 20 business transfers
during 2010. At Blenheim Palace Estate, where
Vennersys provides online ticketing and retail
solutions, we have digitised the stocktaking
process and now count the stock in its 
gift shops.
Orridge is in good shape for the future. We are
making excellent use of technology to reduce
our costs and improve our service. We are
maintaining momentum in the UK and a strong
management team in Europe is building on 
our presence there. We anticipate continued
profitable growth in 2011. CASE STUDY: Landmark Cinemas 
With 32 theatres, Landmark Cinemas is
western Canada’ s largest independent
cinema company. It agreed a five-year
contract for Vennersys to deliver, implement
and support Vista’s entertainment system,
which covers every aspect of the business –
film hire, concessions and ticket sales
(including on-line). Vennersys took time 
to understand the client’s requirements 
by conducting a detailed head office trial,
resulting in a smooth implementation and
high quality support.
CASE STUDY: Knowsley Safari Park
Knowsley Safari Park is one of the North
West’s leading visitor attractions. The
challenge was to replace a manual ticketing
system in a very busy admissions plaza with
‘state-of- the-art’ technology. After evaluating
possible alternatives and taking into account
Vennersys’ track record of implementing
similar solutions, Knowsley Safari Park chose
VENPoS. Benefits include: rapid transaction
times, fewer operator errors, faster card
payments, comprehensive reporting on visitor
statistics and quicker handling of group
bookings and coach parties.
“In a competitive
market, VENPoS is
helping our customers
to drive new and
repeat admissions 
and increase yield 
per visit.”
Kerry Lee
Executive Director Vennersys
DIVISIONAL REVIEW
Stock&
Inventory
Systems&
Services
Christie Group Annual Report 2010 19
VENNERSYS
Vennersys supplies multi-functional trading
systems, online ticketing and e-commerce
services to the leisure and visitor attraction
sectors. We also provide support services to 
a substantial user base, generating stable,
repeat revenue.
For over 20 years we have been delivering
purpose-built EPoS solutions for ticketing and
admissions. In the UK, we are one of the market
leaders in the visitor attractions sector . Our
clients include many well-known theme parks,
museums, historic estates, aquaria, zoos and
botanical gardens.
VENPoS, our proprietary software solution, 
is an integrated suite of application modules
specifically designed for the leisure and visitor
attractions industry. It allows our clients to
manage all their trading activities on a single
platform, including: ticketing and admissions,
general merchandise and food and beverage
sales, and enables them to track customers’
purchasing activity using VENPoS CRM.
Our new e-commerce solution, VENPoS Online,
proved extremely popular in 2010. Within the UK,
we believe no other system in our sector can
match the benefits it has to offer . The module is 
a highly flexible e-sales solution, but where it
really scores is in its tight integration with the
VENPoS platform. Early adopters included
Blenheim Palace and Deep Sea Leisure, which 
is part of the international Aspro Ocio Group. 
It is very easy for our clients to incorporate
VENPoS Online and it seamlessly matches the
look and feel of their existing websites. Typically,
they are using it to sell advance tickets for
admissions, special events memberships and
visitor experiences, such as “shark dives” in the
case of Deep Sea Leisure, although the system is
just as adept at managing online merchandising. 
VENPoS Online facilitates fast-track entry to
attractions. Print-at-home, bar coded tickets 
are quickly scanned and validated at the
entrance using VENPoS point of sale 
terminals. Subject to individual consent, 
visitor details can also be passed to our 
CRM module, which tracks preferences and
purchasing decisions, and informs marketing
and business planning.
This tight integration and a desire for a reliable
online sales channel were prime motivations for
Knowsley Safari Park when it chose VENPoS 
to replace its existing systems (see case study
top left). Other major sales in 2010 included
Arundel Castle, Blue Reef Aquarium, Bristol 
and a big expansion in services for Woburn
Enterprises. 
We also have a strong presence in the UK and
Canadian cinema market. In 2010, the 32-strong
Landmark chain in Canada adopted the Vista
cinema ticketing solution (see case study bottom
left). We are now the market leader there. 
Where feasible, we work closely with sister
companies in Christie Group. At Merlin
Entertainment's Blackpool Tower
VENPoS-generated data is used by Venners in its
stock audit service. At Blenheim Palace Estates
Orridge provides stocktaking services. 
The museum and cultural sector is one 
area with particular potential. As UK public 
spending cuts bite, museums are coming under 
pressure to develop alternative income streams.
The VENPoS solution can support many of 
these activities. 
We anticipate visitor growth in our target
markets in 2011 and are confident that VENPoS’s
enhanced functionality will stimulate additional
demand. We have boosted our development 
team by 50% in order to deliver new functionality
around our existing CRM and bookings modules,
which will further enhance our customers’
competitive advantage. In addition, we have
strengthened our sales team to increase 
our market presence and maximise our
conversion rate 
In today’s more competitive environment,
operators are redoubling their efforts to reduce
costs, increase efficiency and enhance the visitor 
experience. We have the solutions, experience
and expertise to help them meet 
those objectives.
DRIVING
RECOVERY
VENPoS Online transaction
values up for like-for-like 
business by 
91 % 20 Christie Group Annual Report 2010
Financial review
A return to profit
Revenue increased 3.9% in the year to £48.9m (2009:
£47.1m). This year-on-year growth accelerated as we
progressed through the year, with the 0.2% year-on-year
H1 growth improving in the second half to 8.2% growth
between year-on-year H2 revenues.
For our Professional Business Services Division the
growth in income was more pronounced. The 10.8%
growth achieved in H1 increased to a 17.3% equivalent
for H2 with a strong second half performance.
Within our Stock & Inventory Systems & Services
Division, our UK retail stocktaking operation reported
an increase in revenue and profitability. A number of
specific circumstances elsewhere within the division
served to offset this growth, most notably the ending of 
a cinema service agreement in the UK and the
challenges affecting the licensed trade sector with
increased levels of insolvencies and elongated
stocktaking periods. It is also noteworthy that 2009
revenues included £0.4m of income (2010: £nil)
attributable to our now closed loss-making operation
in Holland. The combined effect of all of the above was
a 5.9% decline in revenue to £22.4m (2009: £23.8m).
2010 2009
Total H1 H2 Total H1 H2
Revenue £’000 £’000 £’000 £’000 £’000 £’000
PBS 26,506 13,489 13,017 23,266 12,170 11,096
SISS 22,399 11,746 10,653 23,801 13,016 10,785
48,905 25,235 23,670 47,067 25,186 21,881
Using cash to support growth
We have continued to focus on ensuring that our cash
flows are optimised and our cash resources maintained.
Net cash generated from operating activities was £0.2m
for the year, a £1.1m improvement on the £0.9m of cash
used in operations in 2009. As we continue to look
forward and prepare for growth, we increased our capital
expenditure to £0.3m (2009: £0.1m).
Our revenue growth meant that we ended the year with
trade and other receivables of £9.4m (2009: £8.5m).
This £0.9m increase in receivables, combined with other
short term working capital funding requirements, had the
effect of translating the £0.2m operating cash inflow into
an overall decrease in net cash with cash and cash
equivalents at the year end of £1.2m (2009: £1.7m).
We ended the year with no net debt and cash in the bank.
We have strong banking relationships and facilities which
allow us to fund any working capital requirements which
may arise as we seek to grow revenues and service our
normal annual trading cycles.
Key performance indicators
In accordance with the enhanced Directors’ report we
have included our main KPIs for the Group and the
individual operating divisions in the table opposite.
As a group we have a number of key areas that these
indicators measure:
•Revenue growth – an important part of our strategy
is growing our businesses and this is best measured
by revenue growth.
•Productivity – being in the service sector, employee
costs are our largest single cost. It is important to
remain competitive and continue to improve our
productivity . This KPI looks at the total cost of
employees (including benefits, the cost of company
cars, company pension contributions and local
employer taxes) required to produce £1,000 of revenue.
For this KPI a reducing figure reflects an improvement.
•Operating profit % – this is measured as operating profit
(before exceptional items) as a percentage of revenue.
The 9.5% improvement in our productivity levels to staff
costs of £695 per £1,000 of revenue (2009: £768) is a
significant reversal of the decline in productivity that we
experienced in 2009. Overall staff costs for the Group per
£1,000 of revenue are at a lower level in 2010 than they
have been since our peak trading levels of 2007.
The combined effect of a growth in revenues and a
well-managed cost base is a welcome return to profit,
with operating profit as a percentage of revenue of 2.1%
representing a 9.9% swing from the 7.8% operating loss
percentage reported last year . This improved level of
operational gearing provides us with a firm foundation
on which to base a continuing recovery.
Dan Prickett
Chief Financial Officer Christie Group Annual Report 2010 21
KPIs
Stock & 
Professional Inventory 
Business Systems
Group Services & Services
Revenue growth
2010 on 2009 3.9% 13.9% (5.9%)
2009 on 2008 (25.8%) (37.0%) (10.2%)
2008 on 2007 (16.7%) (27.8%) 6.3%
Productivity – staff costs
(before reorganisation and redundancy costs) 
per £1,000 of revenue
2010 695 615 712
2009 768 759 693
2008 698 666 665
Operating profit/(loss)
before exceptional items as % of revenue
2010 2.1% 5.7% 1.3%
2009 (7.8%) (16.8%) 2.0%
2008 (4.2%) (9.2%) 2.1%
All figures apply to continuing operations only Board of directors
Philip Gwyn
Chairman
Philip is a barrister and merchant
banker by training. He is responsible for
Group strategy and planning. Philip is a
Non-executive Director of Alumasc plc
and a Director of a number of private
companies.
David Rugg
Chief Executive
David is responsible for the day-to-day
operation and development of the Group,
in which capacity he has been
responsible for the identification and
integration of its principal subsidiary
business acquisitions. David either
chairs or sits on the boards of Christie
Group trading companies.
Dan Prickett
Chief Financial Officer
Dan joined Christie Group in December
2007, prior to becoming Chief Financial
Officer in 2010. He has responsibility 
for all financial and company accounting
matters, as well as financial public
relations. Since qualifying as a Chartered
Accountant, Dan has worked for
MacIntyre Hudson and Grant Thornton
before moving to Inchcape Retail, one 
of the largest franchised motor dealer
groups in the UK.
Chris Day
Executive Director
Chris joined Christie + Co in 1985 and,
having worked in the Manchester,
Birmingham and London offices, was
appointed Managing Director in 1993. 
He has overall responsibility for all
Christie + Co’s specialist transactional
and advisory activities. Chris has
overseen the successful expansion of
Christie + Co into a global firm, which
currently has offices throughout Europe
and in the Middle East.
Tony Chambers
Senior Non-executive Director
Tony was previously Head of Banking and
Director of Robert Fleming, a Director of
Save and Prosper Group and Chairman
of Gartmore High Income. Tony chairs
the Remuneration Committee and is 
also a member of both the Audit and
Nomination Committees.
Michael Likierman
Non-executive Director
Michael was the founding Chief Executive
of Habitat France. He later co-founded
GrandVision SA, the French-based owner
of Vision Express. He is Chairman of
Générale de Téléphone and other 
private companies. In 2002, Michael 
was made a Chevalier de la Légion
d’Honneur . He chairs the Nomination
Committee and is a member of the
Remuneration Committee.
Pommy Sarwal
Non-executive Director
Pommy, a former corporate finance
partner at Deloitte, is currently a
Non-executive Director of Chatham
Historic Dockyard, Hyde Housing
Association, Hybrid Air Vehicles and
Master Ropemakers, and a member 
of the board of both the Port of London
Authority and British Waterways. 
In addition, he is a member of the Ports
Advisory Group of the Department for
Business Enterprise & Regulatory
Reform - Trade & Investment Division.
Pommy chairs the Audit Committee 
and is a member of the Nomination and
Remuneration Committees. He is also
Chairman of Venners.
Company information
Secretary
Dan Prickett ACA
Registered office
65 Carter Lane
London EC4V 5HF
Registered number
1471939 
Nominated advisor and broker
Charles Stanley Securities
Principal solicitors
Royds
SNR Denton
Auditors
Nexia Smith & Williamson Audit
Public relations
Winningtons
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham 
Kent BR3 4TU
22 Christie Group Annual Report 2010 Directors’ report
The Directors present their report and the
audited financial statements for the year ended
31 December 2010.
Principal activities and business review
Christie Group plc is the parent undertaking of a
group of companies covering a range of related
activities. These fall into two divisions – Professional
Business Services and Stock & Inventory Systems &
Services. Professional Business Services principally
covers business valuation, consultancy and agency,
mortgage and insurance services, and business
appraisal. Stock & Inventory Systems & Services
covers stock audit and counting, compliance and food
safety audits, inventory preparation and valuation,
hospitality and cinema software. A description of the
Group’s activities and a detailed business review of
the year and future developments are given in the
Chairman’s Statement and the Review of Operations.
In addition the Group’s main Key Performance
Indicators are explained in the Financial Review on
page 20 and the risks and uncertainties in the
Corporate Governance report on page 24.
Results and dividends
The results for the year are set out in the
consolidated statement of comprehensive income on
page 31. The Directors recommend the payment of
a final dividend of 1.0p (2009: nil) per share which
together with the interim dividend of nil (2009: nil)
per share, makes a total of 1.0p (2009: nil) per
share totalling £247,000 (2009: £nil) for the year .
The profit for the year before tax and before other
comprehensive income from continuing activities
was £939,000 (2009: £3,701,000 loss) and the profit
attributable to equity holders of the Company for
the financial year, after taxation and including other
comprehensive income and discontinued activities,
was £1,429,000 (2009: £2,058,000 loss).
Directors
The Directors of the Company in office at the date of
this report, together with their biographical details,
are shown on page 22. All these Directors served
throughout the year . Tony Chambers and David Rugg
retire in accordance with the Company’s Articles of
Association. Tony Chambers and David Rugg being
eligible, offer themselves for re-election at the
forthcoming Annual General Meeting. Michael
Likierman retires at the forthcoming Annual General
Meeting and will not offer himself for re-election.
Directors’ interests are shown in the Remuneration
Report. During the year under review and as at the
date of the Directors’ report, appropriate directors’
and officers’ insurance was in place.
Employees
The Directors recognise the benefits which accrue
from keeping employees informed on the progress of
the business and involving them in the Group’s
performance. Each individual operating company
adopts employee consultation as appropriate. The
Company is committed to providing equality of
opportunity to all employees regardless of nationality,
ethnic origin, age, sex or sexual orientation and
continues to be supportive of the employment and
advancement of disabled persons.
Donations
The Group contributed £5,000 (2009: £3,000) to charities
during the year . It made no political contributions.
The Group also operates a Give As You Earn (GAYE)
scheme for employees.
Policy on payments to suppliers
It is a policy of the Group in respect of all its suppliers,
where reasonably practicable, to settle the terms of
payment with those suppliers when agreeing the terms
of each transaction, to ensure that those suppliers are
made aware of the terms of payment, and to abide by
the terms of payment. The Group’s average trade
payable days during the year was 55 (2009: 53).
Acquisition of own shares
During the year the Company funded the purchase
of 49,000 (2009: none) of its own ordinary shares,
through an Employee Share Ownership Trust, for a
consideration of £28,000 (2009: £nil), to enable it to
meet awards under its SAYE and other share
schemes. The total holding of the Employee Share
Ownership Trust as at 31 December 2010 was 582,000
shares (2009: 533,000 shares), which represents 2.31%
(2009: 2.11%) of the current issued share capital.
Health, safety and the environment
The Directors consider the health, safety and
environmental protection aspects of the business to
be of great importance, as the prevention of personal
injury, the avoidance of damage to health and the
protection of the environment are important business
and social responsibilities. Management practices
within the Group are designed to ensure so far as is
reasonably practicable, the health, safety and welfare
at work of employees, contractors and visitors and
the implementation of environmentally aware and
friendly policies.
Going concern
After making enquiries, the Directors consider that
the Group has adequate resources to continue in
operational existence for the foreseeable future.
For this reason they continue to adopt the going
concern basis in preparing the financial statements,
which appear on pages 31 to 72.
Auditors
In accordance with Section 489 of the Companies Act
2006, a resolution proposing that Nexia Smith &
Williamson be re-appointed as auditors of the
Company will be put to the Annual General Meeting.
Disclosure of information to auditors
Directors of the Company have confirmed that in
fulfilling their duties as a director:
•so far as they are each aware, there was no relevant
audit information of which the auditors were
unaware; and
•they have taken all reasonable steps that a director
ought to have taken to make himself or herself
aware of any relevant audit information and to
establish that the Company’ auditors were aware
of that information.
This information is given and should be interpreted
in accordance with the provision of s.418 of the
Companies Act 2006.
This report was approved by the board on
25 March 2011.
D R Prickett
Company Secretary
65 Carter Lane
London EC4V 5HF
Registered No. 1471939
Christie Group Annual Report 2010 23 The Directors are committed to delivering high standards of corporate
governance to the Company’s shareholders and other stakeholders including
employees, suppliers and the wider community. The Board of Directors
operates within the framework described below.
The Board
The Board sets the Company’s strategic aims and ensures that necessary
resources are in place in order for the Company to meet its objectives. All
members of the Board take collective responsibility for the performance of
the Company and all decisions are taken in the interests of the Company.
Whilst the Board has delegated the normal operational management of the
Company to the Executive Directors and other senior management there
are detailed specific matters subject to decision by the Board of Directors.
These include acquisitions and disposals, joint ventures and investments and
projects of a capital nature. The Non-executive Directors have a particular
responsibility to challenge constructively the strategy proposed by the
Chairman and Executive Directors; to scrutinise and challenge performance;
to ensure appropriate remuneration and to ensure that succession planning
arrangements are in place in relation to Executive Directors and other senior
members of the management team. The Chairman holds informal meetings
with individual Non-executive Directors without the executives present.
The senior Non-executive Director also discusses matters with other
Non-executive Directors without the Chairman being present. The senior
executives enjoy open access to the Non-executive Directors with or without
the Chairman being present. In short the Directors talk to each other .
The Board is responsible for ensuring that a sound system of internal control
exists to safeguard shareholders’ interests and the Group’s assets. It is
responsible for the regular review of the effectiveness of the systems of internal
control. Internal controls are designed to manage rather than eliminate risk
and therefore even the most effective system cannot provide assurance that
each and every risk, present and future, has been addressed. The key features
of the system that operated during the year are described below.
Organisational structure and control environment
The Board of Directors meets at least five times a year to review the
performance of the Group. It seeks to foster a strong ethical climate across
the Group. There are clearly defined lines of responsibility and delegation of
authority from the Board to the operating subsidiaries. The Directors of each
trading subsidiary meet on a monthly basis with normally at least two
members of the Group Board in attendance.
Internal control
The key procedures which the Directors have established with a view to
providing effective internal control are as follows:
•regular Board meetings to consider the schedule of matters reserved for
Directors’ consideration;
•a risk management process (see below);
•an established organisational structure with clearly defined lines of
responsibility and delegation of authority;
•appointment of staff of the necessary calibre to fulfil their allotted
responsibilities;
•comprehensive budgets, forecasts and business plans approved by the
Board, reviewed on a regular basis, with performance monitored against
them and explanations obtained for material variances (see page 25);
•an Audit Committee of the Board, comprising Non-executive Directors,
which considers significant financial control matters as appropriate; and
•documented whistle-blowing policies and procedures.
There is currently no internal audit function, although this is kept under
annual review.
Risk management
The Board has the primary responsibility for identifying the major risks facing
the Group. The Board has adopted a schedule of matters which are required
to be brought to it for decision, thus ensuring that it maintains full and
effective control over appropriate strategic, financial, organisational and
compliance issues. The Board has identified a number of key areas which are
subject to regular reporting to the Board. The policies include defined
procedures for seeking and obtaining approval for major transactions and
organisational changes.
Risk reviews carried out by each subsidiary are updated annually as part of an
ongoing risk assessment process. The focus of the reviews is to identify the
circumstances, both internally and externally, where risks might affect the
Group’s ability to achieve its business objectives. An overall risk assessment
for the Group is prepared. The management of each subsidiary periodically
reports to the Board any new risks. In addition to risk assessment, the Board
believes that the management structure within the Group facilitates free and
rapid communication across the subsidiaries and between the Group Board
and those subsidiaries and consequently allows a consistent approach to
managing risks. Certain key functions are centralised, enabling the Group to
address risks to the business present in those functions quickly and efficiently.
Corporate governance
24 Christie Group Annual Report 2010 Financial planning, budgeting and monitoring
The Group operates a planning and budgeting system with an annual Budget
approved by the Board. There is a financial reporting system which compares
results with the budget and the previous year on a monthly basis to identify
any variances from approved plans. Rolling cash flow forecasts form part of
the reporting system. The Group remains alert to react to other business
opportunities as they arise.
Non-executive Directors
The Non-executive Directors do not have service agreements and have no
automatic right of re-appointment. They are regarded by the Board as
bringing experience to the Board from their fields of business and finance,
and ensure that all matters of strategy, performance, progress and standards
are debated thoroughly. The senior Non-executive Director is Tony Chambers.
The table below shows the extent to which each of the Non-executive
Directors complies with objective tests on independence:
Tony Michael Pommy 
Question Chambers Likierman Sarwal
Has been an employee of the Company or
Group within the last five years? No No No
Has, or had within the last three years, a
material business relationship with the Company
either directly, or as a partner, shareholder,
Director or senior employee of a body that has
such a relationship with the Company? No No No
Has received or receives additional
remuneration from the Company apart
from directors’ fees, participates in the
Company’s share option or performance-
related pay scheme, or is a member of
the Company’s pension scheme? No No No
Has close family ties with any of the Company’s
Directors, senior employees or advisers? No No No
Holds cross-directorships or has
significant links with other Directors
through involvement in other
companies or bodies? No Yes Yes
Represents or is a significant shareholder? No No No
Has served on the Board for more than
nine years from the date of their first election? No Yes No
The Non-executive Directors are considered by the Board to be independent in
character and judgement and have no relationships or any circumstances
that are likely to affect their judgement as Directors of the Company. Michael
Likierman sits on the board of Générale de Téléphone, a French company,
with Philip Gwyn. This is not considered to impair his judgement or character
in relation to his directorship of Christie Group plc.
Pommy Sarwal sits on the board of Hybrid Air Vehicles Limited, a UK
incorporated company, with Philip Gwyn. Mr Sarwal also sits on the Board of
Venners as non-executive Chairman, but the day-to-day management of that
company is conducted by its executive directors. Neither of these roles are
considered to impair his judgement or character in relation to his directorship
of Christie Group plc.
Audit Committee
The Audit Committee meets no less than twice a year with the auditors in
attendance. It also assists the Board in observing its responsibility for
ensuring that the Group’s accounting systems provide accurate and timely
information and that the Group’s published financial statements represent a
true and fair reflection of the Group’s financial position and its performance in
the period under review. The committee also ensures that internal controls
and appropriate accounting policies are in place, reviews the scope and
results of the audits, the independence and objectivity of the auditors and
establishes that an effective system of internal financial control is maintained.
The Committee has primary responsibility for making a recommendation on
the appointment or re-appointment of the external auditors. In order to
maintain the independence of the external auditors, the Board has
determined guidelines as to what non-audit services can be provided by the
Company’s external auditors and the approval processes related to them.
Under those policies work of a consultancy nature will not be offered to the
external auditors unless there are clear efficiencies and value added benefits
to the Company. Additionally the auditors confirm their independence in
writing each year . The committee also monitors the level of non-audit fees
paid to the external auditors. The Audit Committee consists of Tony Chambers
and Pommy Sarwal as Chairman.
Remuneration Committee
The Remuneration Committee meets no less than twice a year and is
responsible for determining main Board Directors and subsidiary company
managing directors’ remuneration together with the terms and conditions of
their service contracts. It has access to relevant comparable information in
respect of similar businesses. The committee is also responsible for the
allocation of options under the Company’s executive share option scheme.
The committee also maintains a watching brief over the general employment
Christie Group Annual Report 2010 25 terms and pay structures, existing or proposed, for the subsidiary trading
companies. The Remuneration Committee consists of the Non-executive
Directors with Tony Chambers as Chairman.
Nomination Committee
The Nomination Committee meets as required to select and propose suitable
candidates for the approval of the Board to fill vacancies or new positions and
to make recommendations to the Board on its composition. The Nomination
Committee consists of the Non-executive Directors with Michael Likierman
as Chairman.
Risks and uncertainties
We operate in a world with a heightened awareness of risk. In growing and
developing our businesses we have made a conscious decision to try and
minimise unrewarded risk. We have done this in the following ways:
1. We are growing a European business in order that we are less dependent
on the success or otherwise of one country’s economy.
2. We service three sectors; leisure, care and retail, so that we are not
dependent solely on the fortunes of one sector .
3. We offer a spread of services across our two divisions, for example,
transactional, advisory and support.
4. We have a spread of work which deliberately covers both corporate and
private clients.
That stated, whilst we have endeavoured to reduce risks, we are not immune
to movements in the global economy or changes in the economic or
legislative environments in the countries in which we do business. In addition,
such things as the psychological affect of natural disasters, terrorist attacks,
banking crises and changes in behaviour pattern due to environmental based
legislation can all impact our businesses in unexpected ways. All of our
activities rely on the recruitment and retention of skilled individuals. Each of
our divisions, though, face certain risks that are unique to the services they
provide and they are categorised under the divisional headings below:
The following can adversely affect our markets and businesses:
Professional Business Services
•changes in interest rates;
•lack of bank liquidity and more conservative lending criteria; and
•a slow down in the residential housing market.
Stock & Inventory Systems & Services
•changes in employee legislation, in particular the Working Time Directive;
•increase in transport costs;
•trends towards a cashless society; and
•economic slowdown affecting the retail and hospitality sectors.
The above list of risks is meant to highlight, in addition to any noted
elsewhere in this report, those we consider relevant today and is not intended
to be an exhaustive list of risks facing the businesses.
Dialogue with institutional shareholders
The Directors seek to build on a mutual understanding of objectives between
the Company and its institutional shareholders. This is done through
meetings following the publication of the year-end and interim results.
Shares and shareholdings
The interests of Directors are set out on page 28.
Corporate governance
Continued
26 Christie Group Annual Report 2010 Part 1 of this report sets out the Company’s remuneration policies for the
Directors for the year ended 31 December 2010. These policies are likely to
continue to apply in future years, unless there are specific reasons for change,
in which case shareholders will be informed in future reports. Part 2 sets out
details of the remuneration received by Directors during the year ended
31 December 2010.
Part 1. Remuneration Committee (not subject to audit)
The Remuneration Committee, which consists solely of Non-executive
Directors, makes recommendations to the Board on the framework of
executive remuneration and determines specific remuneration packages on
their behalf. The Chairman and Chief Executive attend the Remuneration
Committee meetings. The Chairman and Chief Executive are not present
when their own remuneration is being considered by the Committee.
The Committee’s policy is to provide a remuneration package which will
attract and retain Directors with the ability and experience required to
manage the Company and to provide superior long term performance. It is
the aim of the Committee to reward Directors competitively and on the broad
principle that their remuneration should be in line with the remuneration paid
to senior management of comparable companies. There are four main
elements of the remuneration package for Executive Directors: base salary,
annual bonus, benefits and share options.
•Base salary is reviewed annually and in setting salary levels the
Remuneration Committee considers the experience and responsibilities of
the Executive Directors and their personal performance during the previous
year . The committee also takes account of external market data, as well as
the rates of increases for other employees within the Company. Base salary
going forward is the only element of the package to determine future
pensionable earnings.
•Annual bonuses are calculated as a percentage of pre-tax profits in excess
of a threshold. Bonuses are designed to contribute approximately 25% of
total earnings, but they are normally uncapped.
•Benefits are primarily the provision of cars and health insurance.
•Share options are granted having regard to an individual’s seniority within
the business and, together with the Group’s Save As You Earn scheme
(SAYE), are designed to give Executive Directors an interest in the increase
in the value of the Group.
Service contracts and/or letters of appointment
Executive Directors
It is the Group’s policy to appoint Executive Directors under service
agreements terminable by either party giving a minimum of 6 months’ notice.
David Rugg has a two year notice period that was agreed on flotation of the
Company and this is still considered appropriate.
There are no predetermined provisions for compensation on termination
within Executive Directors’ service agreements. However the Group believes
that severance arrangements should be restricted to base pay and
consequential payments such as bonus and pension accrual. Nevertheless,
the circumstances of the termination and the individual’s duty and opportunity
to mitigate loss would be taken into account.
Non-executive Directors
The Non-executive Directors have a letter of appointment, which specifies an
initial appointment of three years. Their appointment is subject to Board
approval and election by shareholders at the annual general meeting
following appointment and, thereafter, re-election by rotation. There are no
provisions for compensation payments on early termination in the Non-
executives’ letters of appointment.
The fees of the Non-executive Directors are determined by the Chairman and
the Chief Executive and are designed to reflect the time and experience which
these Directors bring to the Company.
Outside directorships
Other than the Chairman, none of the Executive Directors hold external Non-
executive directorship positions. The Chairman has no commitments that
impact adversely on his role as Chairman.
Remuneration report
Christie Group Annual Report 2010 27 Part 2. Directors’ Emoluments
Salary,
Commissions Ex Gratia Long Term 
& Fees Payments Bonus Share Schemes Benefits Pensions 2010 2009
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Philip Gwyn 150 ––– 19 21 190 192
David Rugg* 315 – 10 – 47 – 372 377
Chris Day* 273 – 21 231 19 29 573 335
Dan Prickett** 74 –2– 8– 84 –
Robert Zenker** 39 73 ––3 14 129 162
Tony Chambers 25 ––– –– 25 25
Pommy Sarwal*** 50 ––– –– 50 50
Michael Likierman 25 ––– –– 25 25
Peter Lane**** ––– ––– – 1
951 73 33 231 96 64 1,448 1,167
* Chris Day accepted a 10% reduction in his annual salary with effect from 1 June 2009; David Rugg voluntarily reduced his annual salary by 10% on the same date. Both changes are temporary.
** Robert Zenker resigned as a Director on 22 March 2010; on the same date Dan Prickett was appointed to the Board.
*** Pommy Sarwal receives £25,000 per annum in relation to his role as a Non-executive Director of Christie Group plc and a further £25,000 for his non-executive role as Chairman of Venners Limited.
**** Peter Lane (Lord Lane of Horsell) passed away on 9 January 2009.
At the year end the highest paid Director had accrued benefits under company
pension schemes as set out below:
2010 2009
£’000 £’000
Defined benefit scheme:
Accrued pension at end of year 89 83
The highest paid director did not exercise any share options during the year .
Directors’ pension entitlements
The Company contributed £21,000 (2009: £21,000) for Philip Gwyn to a self-
administered pension fund. David Rugg and Chris Day are members of the
Christie Group plc Pension & Assurance Scheme managed by Hanover
Pensions Limited.
Directors’ interests
Details of the Directors’ interests in the ordinary shares of the Company are
set below:
25 Mar 2010 31 Dec 2010 31 Dec 2009
Philip Gwyn 10,967,582 10,967,582 10,967,582
David Rugg 2,496,860 2,496,860 2,487,510
Chris Day 606,068 606,068 606,068
Michael Likierman 300,000 300,000 341,500
Tony Chambers 125,690 125,690 125,690
Pommy Sarwal – ––
Dan Prickett* – ––
* Dan Prickett holds 50,000 share options, granted in May 2009 and September 2009 which are
exercisable between May 2012 and September 2019.
Share options
During the year none of the Executive Directors received share options under
long term incentive schemes (2009: nil).
The market price of the shares at 31 December 2010 was 55.5p (31 December
2009: 48.5p) and the range during the year was 37.5p to 62.5p (year to 31
December 2009: 17p to 66.5p).
Remuneration report
Continued
28 Christie Group Annual Report 2010 The directors are responsible for preparing the Directors’ Report and the
financial statements in accordance with applicable laws and regulations.
Company law requires the directors to prepare financial statements for each
financial year . Under that law the directors have elected to prepare the
financial statements in accordance with applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union and,
as regards the parent company financial statements, as applied in accordance
with the provisions of the Companies Act 2006. Under company law the
directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the company and of
the group and of the profit or loss of the group for that period. In preparing
these financial statements, the directors are required to:
•select suitable accounting policies and then apply them consistently;
•make judgements and accounting estimates that are reasonable and prudent;
•state that the financial statements comply with IFRSs as adopted by the
European Union; and
•prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the group will continue in business.
The directors are responsible for keeping adequate accounting records that
are sufficient to show and explain the company’s transactions and disclose
with reasonable accuracy at any time the financial position of the company
and enable them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding the assets of
the company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate
and financial information included on the company’s website. Legislation in the
United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Statement of directors’ responsibilities
Christie Group Annual Report 2010 29 We have audited the financial statements of Christie Group plc for the year
ended 31 December 2010 which comprise the Consolidated Statement of
Comprehensive Income, the Consolidated and Parent Company Statements of
Financial Position, the Consolidated and Parent Company Statements of Cash
Flows, the Consolidated and Parent Company Statements of Changes in
Shareholders’ Equity and the related notes 1 to 33. The financial reporting
framework that has been applied in their preparation is applicable law and
International Financial Reporting Standards (IFRSs) as adopted by the
European Union and, as regards the parent company financial statements,
as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the company’s members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company’s members those matters
we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company’s members as a body, for
our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities Statement set out
on page 29, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial
statements in accordance with applicable law and International Standards
on Auditing (UK and Ireland). Those standards require us to comply with the
Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on
the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion:
•the financial statements give a true and fair view of the state of the group’s
and of the parent company’s affairs as at 31 December 2010 and of the
group’s profit for the year then ended;
•the group financial statements have been properly prepared in accordance
with IFRSs as adopted by the European Union;
•the parent company financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union and as applied in
accordance with the provisions of the Companies Act 2006; and
•the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial
year for which the financial statements are prepared is consistent with the
financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the
Companies Act 2006 requires us to report to you if, in our opinion:
•adequate accounting records have not been kept by the parent company, or
returns adequate for our audit have not been received from branches not
visited by us; or
•the parent company financial statements are not in agreement with the
accounting records and returns; or
•certain disclosures of directors’ remuneration specified by law are not
made; or
•we have not received all the information and explanations we require
for our audit.
Michael Bishop
Senior Statutory Auditor, for and on behalf of
Nexia Smith & Williamson
Statutory Auditor
Chartered Accountants
25 Moorgate
London
EC2R 6AY
25 March 2011
Independent auditor’s report
To the members of Christie Group plc
30 Christie Group Annual Report 2010 2010 2009
Note £’000 £’000
Revenue 6 48,905 47,067
Employee benefit expenses 7 (33,972) (36,676)
14,933 10,391
Depreciation and amortisation 6 (497) (707)
Other operating expenses (13,394) (13,338)
Operating profit/(loss) 1,042 (3,654)
Finance costs 8 (126) (148)
Finance income 8 23 101
Total finance costs 8 (103) (47)
Profit/(loss) before tax 9 939 (3,701)
Taxation 10 455 1,752
Profit/(loss) for the year after tax 1,394 (1,949)
Other comprehensive income/(losses):
Exchange differences on translating foreign operations 35 (5)
Actuarial losses on defined benefit pension plans – (144)
Income tax relating to components of other comprehensive income 10 – 40
Other comprehensive income/(losses) for the period, net of tax 35 (109)
Total comprehensive income/(losses) for the year 1,429 (2,058)
Earnings per share – pence
Profit/(loss) attributable to the equity holders of the Company
– Basic 12 5.64 (8.30)
– Fully diluted 12 5.62 (8.30)
The total profit/(loss) for the year after tax and the total comprehensive income/(loss) for the year are entirely attributable to equity holders of the parent company.
All the amounts derive from continuing activities.
Consolidated statement of comprehensive income
For the year ended 31 December 2010
Christie Group Annual Report 2010 31 Attributable to the Equity Holders of the Company
Fair value and Cumulative 
Share other reserves translation Retained Total 
capital (Note 23) reserve earnings equity 
For the year ended 31 December 2009 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2009 505 2,931 481 (1,066) 2,851
Loss for the year after tax ––– (1,949) (1,949)
Exchange differences on translating foreign operations –– (5) – (5)
Actuarial losses on defined benefit pension plans ––– (144) (144)
Income tax relating to components of other comprehensive income ––– 40 40
Total comprehensive losses for the period –– (5) (2,053) (2,058)
Movement in respect of employee share scheme – 83 –– 83
Employee share option scheme:
– value of services provided – 92 –– 92
Balance at 1 January 2010 505 3,106 476 (3,119) 968
Attributable to the Equity Holders of the Company
Fair value and Cumulative 
Share other reserves translation Retained Total 
capital (Note 23) reserve earnings equity 
For the year ended 31 December 2010 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2010 505 3,106 476 (3,119) 968
Profit for the year after tax ––– 1,394 1,394
Exchange differences on translating foreign operations –– 35 – 35
Total comprehensive income for the period –– 35 1,394 1,429
Movement in respect of employee share scheme – 383 – (410) (27)
Employee share option scheme:
– value of services provided – 86 –– 86
Balance at 31 December 2010 505 3,575 511 (2,135) 2,456
Consolidated statement of changes in shareholders’ equity
As at 31 December 2010
32 Christie Group Annual Report 2010 2010 2009
Note £’000 £’000
Assets
Non-current assets
Intangible assets – Goodwill 13 1,011 1,011
Intangible assets – Other 14 184 138
Property, plant and equipment 15 591 749
Deferred tax assets 16 3,425 3,067
Available-for-sale financial assets 17a 300 300
Other receivables 18 904 1,192
6,415 6,457
Current assets
Inventories 19 1 1
Trade and other receivables 21 9,377 8,524
Current tax assets 93 –
Cash and cash equivalents 20 2,323 3,536
11,794 12,061
Total assets 18,209 18,518
Equity
Capital and reserves attributable to the Company’s equity holders
Share capital 22 505 505
Fair value and other reserves 23 3,575 3,106
Cumulative translation reserve 511 476
Retained earnings 23 (2,135) (3,119)
Total equity 2,456 968
Liabilities
Non-current liabilities
Retirement benefit obligations 24 3,222 3,594
Provisions 27 2,093 1,720
5,315 5,314
Current liabilities
Trade and other payables 25 8,580 8,631
Borrowings 26 1,717 2,694
Provisions 27 141 911
10,438 12,236
Total liabilities 15,753 17,550
Total equity and liabilities 18,209 18,518
These consolidated financial statements have been approved for issue by the Board of Directors on 25 March 2011.
D B Rugg D R Prickett
Chief Executive Chief Financial Officer
Consolidated statement of financial position
As at 31 December 2010
Christie Group Annual Report 2010 33 2010 2009
Note £’000 £’000
Cash flow from operating activities
Cash generated from/(used in) operations 28 295 (2,176)
Interest paid (126) (148)
Tax received 33 1,384
Net cash generated from/(used in) operating activities 202 (940)
Cash flow from investing activities
Purchase of property, plant and equipment (PPE) (306) (80)
Proceeds from sale of PPE 7 5
Intangible asset expenditure (92) (59)
Proceeds from sale of available-for-sale financial asset – 141
Interest received 23 101
Net cash (used in)/generated from investing activities (368) 108
Cash flow from financing activities
Net (payment to)/proceeds from the purchase & sale of shares held by ESOP (28) 201
(Repayments of)/proceeds from invoice discounting (255) 181
Payments of finance lease liabilities – (6)
Net cash (used in)/generated from financing activities (283) 376
Net decrease in net cash (449) (456)
Cash and cash equivalents at beginning of year 1,723 2,328
Exchange losses on euro bank accounts (42) (149)
Cash and cash equivalents at end of year 1,232 1,723
Consolidated statement of cash flows
For the year ended 31 December 2010
34 Christie Group Annual Report 2010 Attributable to the Equity Holders of the Company
Fair value and
Share other reserves Retained Total 
capital (Note 23) earnings equity 
For the year ended 31 December 2009 £’000 £’000 £’000 £’000
Balance at 1 January 2009 505 2,595 2,930 6,030
Total comprehensive income for the period –– 1,569 1,569
Movement in respect of employee share scheme – 83 – 83
Employee share options scheme
– value of services provided –1– 1
Balance at 1 January 2010 505 2,679 4,499 7,683
Attributable to the Equity Holders of the Company
Fair value and
Share other reserves Retained Total 
capital (Note 23) earnings equity 
For the year ended 31 December 2010 £’000 £’000 £’000 £’000
Balance at 1 January 2010 505 2,679 4,499 7,683
Total comprehensive losses for the period –– (139) (139)
Movement in respect of employee share scheme – 383 (410) (27)
Employee share options scheme
– value of services provided – (1) – (1)
Balance at 31 December 2010 505 3,061 3,950 7,516
Company statement of changes in shareholders’ equity
As at 31 December 2010
Christie Group Annual Report 2010 35 2010 2009
Note £’000 £’000
Assets
Non-current assets
Investments in subsidiaries 17 2,563 2,260
Deferred tax assets 16 569 327
Available-for-sale financial assets 17a 300 300
Other receivables 18 6,090 6,046
9,522 8,933
Current assets
Trade and other receivables 21 2,459 2,997
Current tax assets 72 –
Cash and cash equivalents 20 55 150
2,586 3,147
Total assets 12,108 12,080
Equity
Capital and reserves attributable to the Company’s equity holders
Share capital 22 505 505
Fair value and other reserves 23 3,061 2,679
Retained earnings 23 3,950 4,499
Total equity 7,516 7,683
Liabilities
Non-current liabilities
Retirement benefit obligations 24 335 347
335 347
Current liabilities
Trade and other payables 25 3,260 2,237
Borrowings 26 997 1,813
4,257 4,050
Total liabilities 4,592 4,397
Total equity and liabilities 12,108 12,080
These Company financial statements have been approved for issue by the Board of Directors on 25 March 2011.
D B Rugg D R Prickett
Chief Executive Chief Financial Officer
Company statement of financial position
As at 31 December 2010
36 Christie Group Annual Report 2010 2010 2009
Note £’000 £’000
Cash flow from operating activities
Cash generated from/(used in) operations 28 648 (4,281)
Interest paid (126) (117)
Tax received – 340
Net cash generated from/(used in) operating activities 522 (4,058)
Cash flow from investing activities
Investment in fixed asset investments (303) (450)
Investment income from fixed asset investments 350 1,181
Proceeds from sale of available-for-sale financial asset – 141
Interest received 187 293
Net cash generated from investing activities 234 1,165
Cash flow from financing activities
Net (payment to)/proceeds from the purchase & sale of shares held by ESOP (28) 201
Net cash (used in)/generated from financing activities (28) 201
Net increase/(decrease) in net cash 728 (2,692)
Cash and cash equivalents at beginning of year (1,663) 1,151
Exchange loss on euro bank account (7) (122)
Cash and cash equivalents at end of year (942) (1,663)
Company statement of cash flows
For the year ended 31 December 2010
Christie Group Annual Report 2010 37 1. General information
2. Summary of significant accounting policies
Christie Group plc is the parent undertaking of a group of companies covering a
range of related activities. These fall into two divisions – Professional Business
Services and Stock & Inventory Systems & Services. Professional Business
Services principally covers business valuation, consultancy and agency,
mortgage and insurance services, and business appraisal. Stock & Inventory
Systems & Services covers stock audit and counting, compliance and food
safety audits and inventory preparation and valuation, hospitality and
cinema software.
Accounting policies for the year ended 31 December 2010
The principal accounting policies adopted in the preparation of these financial
statements are set out below. These policies have been consistently applied to
all years presented, unless otherwise stated.
2.1 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 2011).
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 4.
New and amended standards adopted by the group
The Group and Company has adopted the following new and amended IFRS
as of 1 January 2010.
•‘Prepayments of a minimum funding requirement’ (amendments to IFRIC
14). The amendments correct an unintended consequence of IFRIC 14, ‘IAS
19 – The limit on a defined benefit asset, minimum funding requirements
and their interaction’. Without the amendments, entities are not permitted
to recognise as an asset some voluntary prepayments for minimum funding
contributions. This was not intended when IFRIC 14 was issued, and the
amendments correct this. The amendments are effective for annual periods
beginning 1 January 2011 however earlier application is permitted. The
amendments have been applied retrospectively to the earliest comparative
period presented. 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 2010, 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 2011 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 2011) will have no material impact on the
Group or Company’s financial statements.
2.2 Consolidation
The Group financial statements include the results of Christie Group plc and
all its subsidiary undertakings on the basis of their financial statements to
31 December 2010. The results of businesses acquired or disposed of are
included from or to the date of acquisition or disposal.
A subsidiary is an entity controlled, directly or indirectly, by Christie Group plc.
Control is regarded as the power to govern the financial and operating
policies of the entity so as to obtain the benefits from its activities.
2.3 Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are
measured using the currency of the primary economic environment in which
the entity operates (‘the functional currency’). The consolidated financial
statements are presented in sterling, which is the Group’s and Company’s
functional and presentation currency.
38 Christie Group Annual Report 2010
Notes to the consolidated financial statements 2. Summary of significant accounting policies continued
Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions
and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the statement
of comprehensive income.
Group companies
The results and financial position of all the group entities (none of which has
the currency of a hyperinflationary economy) that have a functional currency
different from the presentation currency are translated into the presentation
currency as follows:
a) assets and liabilities for each statement of financial position presented are
translated at the closing rate at the date of that statement of financial position;
b) income and expenses for each statement of comprehensive income are
translated at average exchange rates; and
c) all resulting exchange differences are recognised as a separate component
of equity, the cumulative translation reserve.
On consolidation, exchange differences arising from the translation of the net
investment in foreign entities, are taken to shareholders’ equity. When a
foreign operation is sold, such exchange differences are recognised in the
statement of comprehensive income as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and translated
at the closing rate.
2.4 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for
the sale of goods and services provided in the ordinary course of the Group’s
activities. Revenue derived from the Group’s principal activities (which is shown
exclusive of applicable sales taxes or equivalents) is recognised as follows:
Agency, consultancy and valuations
Net agency fees are recognised as income on exchange of contracts.
Consultancy income is recognised in the accounting period in which the
service is rendered, assessed on the basis of actual service provided as a
proportion of the total services provided. In respect of valuations, turnover is
recognised once the property or business has been inspected. Appraisal
income is recognised in the accounting period in which the service is
rendered, assessed on the basis of actual service provided as a proportion
of the total services to be provided.
Business mortgage broking
Fee income is taken either when a loan offer is secured or when the loan is
drawn down.
Insurance broking
Insurance brokerage is accounted for when the insurance policy commences.
Software
Hardware revenues are recognised on installation or as otherwise specified in
the terms of the contract. Software revenues are recognised on delivery or as
otherwise specified in the terms of the contract. Revenues on maintenance
contracts are recognised over the period of the contracts. Revenue in respect
of services, such as implementation, training and consultancy, are recognised
when the services are performed.
Stock & inventory services
Fees are recognised on completion of the visit to client’s premises.
Other income is recognised as follows:
Interest income
Interest income is recognised on a time-proportion basis using the effective
interest method.
Dividend income
Dividend income is recognised when the right to receive payment is
established.
2.5 Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker as required by IFRS 8
“Operating Segments”. The chief operating decision-maker, who is
responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of Directors.
The Group operating segments are defined as Professional Business
Services, Stock & Inventory Systems & Services, and Other . Within these
segments, the Board of Directors distinguish between European-based
operations and those operations based overseas on the basis that the risks
and returns may vary depending on the economic environment.
Segment assets and liabilities include items that are directly attributable to a
segment plus an allocation on a reasonable basis of shared items. Any
current and deferred tax assets and liabilities are not included in business
segments and are thus unallocated.
Christie Group Annual Report 2010 39 Notes to the consolidated financial statements
Continued
40 Christie Group Annual Report 2010
2.6 Intangible assets
Goodwill
On the acquisition of a business, fair values are attributed to the net assets
acquired. Goodwill arises on the acquisition of subsidiary undertakings,
representing any excess of the fair value of the consideration given over the
fair value of the identifiable assets and liabilities acquired. Goodwill arising on
acquisitions is capitalised and subject to impairment review, both annually
and when there are indications that the carrying value may not be
recoverable. Goodwill arising on acquisitions prior to the date of transition to
IFRS has been retained at previous UK GAAP amounts as permitted by IFRS 1
‘First time adoption of International Accounting Standards’. Prior to 1 January
2004, goodwill was amortised over its estimated useful lives. Such
amortisation ceased on 31 December 2003, subject to an impairment review
at the date of transition, in which no impairment was recognised. The Group’s
policy for the years up to 31 March 1998 was to eliminate goodwill arising on
acquisitions against reserves. As permitted by IFRS 1 and IFRS 3, such
goodwill remains eliminated against reserves.
Other
Intangible fixed assets such as software, trademarks and patent rights are
stated at cost, net of amortisation and any provision for impairment.
Amortisation is calculated to write down the cost of all intangible fixed assets
to their estimated residual value by equal annual instalments over their
expected useful economic lives. The expected useful lives are between one
and five years.
2.7 Property, plant and equipment
Tangible fixed assets are stated at cost, net of depreciation and provision for
any impairment. Depreciation is calculated to write down the cost of all
tangible fixed assets to estimated residual value by equal annual instalments
over their expected useful lives as follows:
Leasehold property Lease term
Fixtures, fittings and equipment 5 – 10 years
Computer equipment 2 – 3 years
Motor vehicles 4 years
The assets’ residual values and useful lives are reviewed, and adjusted if
appropriate, at each statement of financial position date. An asset’s carrying
amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the disposal
proceeds with the carrying amount and are included in the statement of
comprehensive income.
2.8 Leases
Leases where the lessor retains a significant portion of the risks and rewards
of ownership are classified as operating leases. Rentals under operating
leases (net of any incentives received) are charged to the statement of
comprehensive income on a straight-line basis over the period of the lease.
Assets, held under finance leases, which confer rights and obligations similar
to those attached to owned assets, are capitalised as tangible fixed assets and
are depreciated over the shorter of the lease terms and their useful lives. The
capital elements of future lease obligations are recorded as liabilities, whilst
the interest elements are charged to the statement of comprehensive income
over the period of the leases at a constant rate.
2.9 Impairment of assets
Non-current assets are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s
carrying value exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use. Value in use
is based on the present value of the future cash flows relating to the asset,
and is determined over periods which are deemed to appropriately reflect the
minimum expected period that the cash generating unit will operate for . For
the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash generating
units), and their carrying value assessed against management’s projection of
the present value of cashflows arising over a projected period of 5 years from
the balance sheet date, using growth rates determined by management.
Any assessment of impairment based on value in use takes account of the
time value of money and the uncertainty or risk inherent in the future cash
flows. The discount rates applied reflect current market assessments of the
time value of money and the risks specific to the asset for which the future
cash flow estimates have not been adjusted.
2.10 Investments
The Group classifies its investments depending on the purpose for which the
investments were acquired. Management determines the classification of its
investments on purchase and re-evaluates this designation at every reporting
date. Fixed asset investments in subsidiaries are shown at cost less any
provision for impairment.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either
designated in this category or not classified in any of the other categories.
They are included in non-current assets unless management intends to
dispose of the investment within 12 months of the balance sheet date.
2. Summary of significant accounting policies continued Christie Group Annual Report 2010 41
Purchases and sales of investments are recognised on trade date, the date on
which the Group commits to purchase or sell the asset. Investments are
initially recognised at fair value plus transaction costs for all financial assets
not carried at fair value through profit or loss.
The fair values of quoted investments are based on current bid prices. If the
market for a financial asset is not active (and for unlisted securities), the
Group establishes fair value by using valuation techniques. For investments in
equity instruments and unlisted securities that do not have a quoted market
price in an active market and whose fair value can not be reliably measured
these are valued at cost.
The Group assesses at each statement of financial position date whether
there is objective evidence that a financial asset or a group of financial assets
is impaired. In the case of equity securities classified as available-for-sale, a
significant or prolonged decline in the fair value of the security below its cost
is considered in determining whether the securities are impaired.
2.11 Inventories
Inventories held for resale are valued at the lower of cost and net realisable value.
2.12 Trade receivables
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less
provision for impairment. A provision for impairment of trade receivables is
established when there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of receivables. The
amount of the provision is the difference between the asset’s carrying amount
and the present value of estimated future cash flows. The amount of the
provision is recognised in the statement of comprehensive income.
2.13 Cash and cash equivalents
Cash and cash equivalents are recognised initially at fair value and
subsequently measured at amortised cost. Cash and cash equivalents
comprise cash in hand, deposits held on call with banks, other short-term,
highly liquid investments with original maturities of three months or less, and
bank overdrafts. Bank overdrafts are included within borrowings in current
liabilities on the statement of financial position.
2.14 Borrowings
Borrowings are recognised initially at fair value. Borrowings are subsequently
stated at amortised cost; any difference between proceeds and the
redemption value is recognised in the statement of comprehensive income
over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12 months
after the statement of financial position date.
2.15 Taxation including deferred tax
Tax on company profits is provided for at the current rate applicable in each
of the relevant territories.
Deferred tax is provided in full, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, if the
deferred tax arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss, it is not
accounted for . 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
or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future
taxable profit will be available against which the temporary differences can
be utilised. This is reviewed annually.
2.16 Share capital and share premium
Ordinary shares are classified as equity.
Where any Group company or the Employee Share Ownership Plan (ESOP)
trust purchases the Company’s equity share capital (own shares), the
consideration paid, including any directly attributable incremental costs
(net of taxes), is deducted from equity attributable to the Company’s
equity holders until the shares are cancelled, reissued or disposed of.
Where such shares are subsequently sold or reissued, any consideration
received, net of any directly attributable incremental transaction costs
and the related tax effects, is included in equity attributable to the
Company’s equity holders.
2.17 Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a
liability in the Group’s financial statements in the period in which the
dividends are approved by the Company’s shareholders. In respect of interim
dividends, which are paid prior to approval by the Company’s shareholders
they are recognised on payment.
2. Summary of significant accounting policies continued 2.18 Employee benefits
Pension obligations
The Group has both defined benefit and defined contribution schemes.
A defined benefit scheme is a pension scheme that defines the amount of
pension benefit that an employee will receive on retirement, usually
dependent on one or more factors such as age, years of service and
remuneration. A defined contribution scheme is a pension scheme under
which the Group pays fixed contributions into a separate entity. The schemes
are generally funded through payments to insurance companies or trustee-
administered funds, determined by periodic actuarial calculations.
Pension obligations – Defined benefit schemes
The liability recognised in the statement of financial position in respect of
defined benefit pension schemes is the present value of the defined benefit
obligation at the statement of financial position date less the fair value of
scheme assets, together with adjustments for unrecognised actuarial gains
or losses and past service costs. The defined benefit obligation is calculated
annually by independent actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of high-
quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approximating to the
terms of the related pension liability.
Cumulative actuarial gains and losses arising from experience adjustments
and changes in actuarial assumptions in excess of the greater of 10% of the
value of scheme assets or 10% of the defined benefit obligation are charged
or credited to the statement of comprehensive income over the employees’
expected average remaining period till the scheme retirement date.
Past-service costs are recognised immediately in the statement of
comprehensive income, unless the changes to the pension scheme are
conditional on the employees remaining in service for a specified period of
time (the vesting period). In this case, the past-service costs are amortised
on a straight-line basis over the vesting period.
Pension obligations – Personal pension scheme
Group companies contribute towards a personal pension scheme for their
participating employees. These employees are currently entitled to such
contributions after a qualifying period has elapsed. Payments to the scheme
are charged as an employee benefit expense as they fall due. The Group has
no further payment obligations once the contributions have been paid.
Share based compensation
The fair value of employee share option schemes, including Save As You Earn
(SAYE) schemes, is measured by a Black-Scholes pricing model. Further
details are set out in Note 22a. In accordance with IFRS 2 ‘Share-based
Payments’ the resulting cost is charged to the statement of comprehensive
income over the vesting period of the options. The value of the charge is
adjusted to reflect expected and actual levels of options vesting.
No expense was recognised in respect of share options granted before
7 November 2002 and those which had vested before 1 January 2005.
For share options granted after 7 November 2002 and vested after 1 January
2005 the Group operates an equity-settled, long term incentive plan designed
to align management interests with those of shareholders. The fair value of
the employee’s services received in exchange for the grant of the options is
recognised as an expense. The total amount to be expensed over the vesting
period is determined by reference to the fair value of the options granted,
excluding the impact of any non-market vesting conditions (for example,
profitability and sales growth targets). Non-market vesting conditions are
included in assumptions about the number of options that are expected to
become exercisable. At each statement of financial position date, the entity
revises its estimates of the number of options that are expected to become
exercisable. It recognises the impact of the revision of original estimates, if
any, in the statement of comprehensive income, and a corresponding
adjustment to equity.
Commissions and bonus plans
The Group recognises a liability and an expense for commissions and
bonuses, based on formula driven calculations. The Group recognises a
provision where contractually obliged or where there is a past practice that
has created a constructive obligation.
2.19 Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. Where the
Group expects some or all of a provision to be reimbursed, for example, under
an insurance contract, the reimbursement is recognised as a separate asset
but only when the reimbursement is virtually certain. The expense relating to
any provision is presented in the income statement net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, where appropriate, the risks specific
to the liability. Where discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.
Notes to the consolidated financial statements
Continued
42 Christie Group Annual Report 2010
2. Summary of significant accounting policies continued The Group uses a limited number of financial instruments, comprising cash,
short-term deposits, bank loans and overdrafts and various items such as
trade receivables and payables, which arise directly from operations. The
Group does not trade in financial instruments.
3.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk
(including currency risk, and interest rate risk), credit risk, liquidity risk and
cash flow interest rate risk. The Group’s overall risk management programme
focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Group’s financial performance.
a) Market risk
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk
arising from various currency exposures, primarily with respect to the Euro.
Foreign exchange risk arises from future commercial transactions,
recognised assets and liabilities and net investments in foreign operations.
The Group has certain investments in foreign operations, whose net assets
are exposed to foreign currency translation risk.
At 31 December 2010, if sterling had strengthened by 10% against the Euro,
with all other variables held constant, the post tax profit for the year would
have been £10,000 (2009: £58,000) lower mainly as a result of foreign
exchange gains/losses on translation of Euro denominated trade
receivables, cash and cash equivalents, and trade payables. Applying the
same variables to foreign exchange differences recognised directly in equity
the effect would be a reduction in equity of £46,000 (2009: £45,000).
b) Credit risk
The Group has no significant concentrations of credit risk and has policies
in place to ensure that sales are made to customers with an appropriate
credit history.
For the year ended 31 December 2010, total credit insurance costs incurred
by the Group amounted to £nil (2009: £32,000). During this period the Group
did not make any claims (2009: £Nil) in relation to disputed balances,
resulting in a net cost to the Group for the period of £nil (2009: £32,000) for
credit insurance facilities.
c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and
available funding through an adequate amount of committed credit
facilities. The Group ensures it has adequate cover through the availability
of bank overdraft and loan facilities.
At 31 December 2010 total borrowings by the Group amounted to
£1,717,000 (2009: £2,694,000), with additional available unutilised credit
facilities at 31 December 2010 of £2,945,000 (2009: £2,486,000).
Cash and cash equivalents comprise cash in hand, deposits held at call
with banks and other short-term highly liquid investments with original
maturities of three months or less. Total cash and cash equivalents held
by the group at 31 December 2010 were £2,323,000 (2009: £3,536,000).
d) Cash flow and interest rate risk
The Group finances its operations through a mix of cash flow from current
operations together with cash on deposit and bank and other borrowings.
Borrowings are generally at floating rates of interest and no use of interest
rate swaps has been made.
The Group’s interest rate risk arises from cash balances and borrowings
subject to variable interest rates. For the year ended 31 December 2010,
assuming all other variables remained equal but interest rates were 1%
higher or lower throughout the year, the impact on post tax losses would
be a maximum increase or decrease of £14,000 (2009: £68,000).
3.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain a capital
structure appropriate for its growth plans.
In order to maintain or adjust the capital structure, the Group may adjust the
amount of dividends paid to shareholders or alter debt levels.
Christie Group Annual Report 2010 43
3. Financial risk management 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.
4.1 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, in accordance
with the accounting policy stated in Note 2.6. The recoverable amounts of
cash-generating units have been determined based on value-in-use
calculations. These calculations require the use of estimates (Note 13).
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. Management base their assumptions on their
understanding and interpretation of applicable scheme rules which prevail
at the statement of financial position date. 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, as stated in Note 24, 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.
Notes to the consolidated financial statements
Continued
44 Christie Group Annual Report 2010
4. Critical accounting estimates and judgements
As permitted by section 408 of the Companies Act 2006 the Income Statement of the Parent Company is not presented as part of these financial statements.
The Parent Company made a loss after tax of £139,000 (2009: £1,573,000 profit).
5. Loss of the parent company 6. Segment information
The Group is organised into two main operating segments: Professional Business Services and Stock & Inventory Systems & Services.
The segment results for the year ended 31 December 2010 are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
Total gross segment sales 26,610 22,399 2,188 51,197
Inter-segment sales (104) – (2,188) (2,292)
Revenue 26,506 22,399 – 48,905
Operating profit/(loss) 1,508 298 (764) 1,042
Net finance (costs)/credit (125) (12) 34 (103)
Profit before tax 1,383 286 (730) 939
Taxation 455
Profit for the year after tax 1,394
The segment results for the year ended 31 December 2009 are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
Total gross segment sales 23,370 23,801 2,226 49,397
Inter-segment sales (104) – (2,226) (2,330)
Revenue 23,266 23,801 – 47,067
Operating (loss)/profit (3,906) 470 (218) (3,654)
Net finance (costs)/credit (154) (24) 131 (47)
Loss before tax (4,060) 446 (87) (3,701)
Taxation 1,752
Loss for the year after tax (1,949)
Christie Group Annual Report 2010 45 6. Segment information continued
Other segment items included in the statements of comprehensive income for the years ended 31 December 2010 and 2009 are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
31 December 2010
Depreciation and amortisation 202 273 22 497
Impairment of trade receivables (627) 61 – (566)
31 December 2009
Depreciation and amortisation 313 365 29 707
Impairment of trade receivables (501) 69 – (432)
The segment assets and liabilities at 31 December 2010 and capital expenditure for the year then ended are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
Assets 7,439 4,834 2,418 14,691
Deferred tax assets 3,425
Current tax assets 93
18,209
Liabilities 7,963 4,497 1,576 14,036
Borrowings 1,717
15,753
Capital expenditure 69 323 6 398
The segment assets and liabilities at 31 December 2009 and capital expenditure for the year are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
Assets 6,886 4,906 3,659 15,451
Deferred tax assets 3,067
18,518
Liabilities 9,540 4,479 837 14,856
Borrowings 2,694
17,550
Capital expenditure 4 135 – 139
Notes to the consolidated financial statements
Continued
46 Christie Group Annual Report 2010 6. Segment information continued
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 operating segments on a global basis. The UK is the home country of the parent. The Group’s revenue is mainly generated in Europe.
Revenue is allocated below based on the country in which the customer is located.
2010 2009
£’000 £’000
Revenue
Europe 48,412 46,577
Rest of the World 493 490
48,905 47,067
Total segment assets are allocated based on where the assets are located.
2010 2009
£’000 £’000
Total segment assets
Europe 14,504 15,335
Rest of the World 187 116
14,691 15,451
Capital expenditure is allocated based on where the assets are located.
2010 2009
£’000 £’000
Capital expenditure
Europe 398 139
Rest of World – –
398 139
2010 2009
£’000 £’000
Analysis of revenue by category
Sale of goods 106 307
Revenue from services 48,799 46,760
48,905 47,067
Christie Group Annual Report 2010 47 7. Employee benefit expenses
2010 2009
Staff costs for the Group during the year £’000 £’000
Salaries and short term employee benefits 31,252 32,697
Other benefits 1,372 2,006
Post employment benefits 585 1,056
Other long-term benefits 677 825
Cost of employee share scheme 86 92
33,972 36,676
2010 2009
Average number of people (including executive directors) employed by the Group during the year was Number Number
Operational 757 783
Administration and support staff 238 244
995 1,027
8. Finance costs
2010 2009
£’000 £’000
Interest payable on bank loans and overdrafts 70 80
Other interest payable 56 68
Total finance costs 126 148
Bank interest receivable (5) (9)
Other interest receivable (18) (92)
Total finance credit (23) (101)
Net finance costs 103 47
Notes to the consolidated financial statements
Continued
48 Christie Group Annual Report 2010 9. Profit/(loss) before tax
Group
2010 2009
£’000 £’000
Profit/(loss) before tax is stated after charging/(crediting):
Depreciation of property, plant and equipment
– owned assets 451 639
– under finance leases – 2
Amortisation of intangible fixed assets 46 66
Loss/(profit) on sale of property, plant and equipment 6 5
Profit on sale of available-for-sale investment – (60)
Operating lease charges
– buildings 1,319 1,395
– other 668 741
Impairment of trade receivables (566) (432)
Vacant leasehold provisions 50 (374)
Reorganisation costs – 453
Repairs and maintenance expenditure on property, plant and equipment 249 378
Loss on foreign exchange (including Company £7,000 (2009: £159,000)) 21 212
Services provided by the Group’s auditor and network firms
During the year the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditor or a network firm of the Group’s auditor
as detailed below:
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Audit services
– audit of the parent company and consolidated financial statements 14 14 14 14
– audit of the subsidiary company financial statements 85 75 – –
Total audit fees 99 89 14 14
Pension scheme fees 11 11 – –
Other services pursuant to legislation 4 – – –
Tax services 17 55 17 55
Other services
– other services 7 7 7 –
Christie Group Annual Report 2010 49 10. Taxation
2010 2009
£’000 £’000
Current tax
UK Corporation tax at 28% (2009: 28%) 72 (29)
Foreign tax 21 (15)
Adjustment in respect of prior periods 4 832
Total current tax credit 97 788
Deferred tax
Origination and reversal of timing differences 358 1,004
Total deferred tax credit 358 1,004
Tax credit on profit/(loss) on ordinary activities 455 1,792
The tax on the Group’s profit/(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 profit/(loss) on ordinary activities
2010 2009
£’000 £’000
Profit/(loss) on ordinary activities before tax 939 (3,845)
(Profit)/loss on ordinary activities at standard rate of UK corporation tax of 28% (2009: 28%) (263) 1,077
Effects of:
– tax losses not yet utilised – (747)
– net (income)/expenses not deductible for tax purposes 541 (685)
– taxable deductions – 362
– utilisation of tax losses and other deductions – 384
– adjustment to tax charge in respect of previous periods 4 833
– fixed asset timing differences 155 328
– other timing differences 18 242
– rate differential on certain tax losses – (2)
Total tax credit 455 1,792
11. Dividends
A dividend in respect of the year ended 31 December 2010 of 1.0p per share, amounting to a total dividend of £247,000, is to be proposed at the Annual General
Meeting on 15 June 2011. These financial statements do not reflect this proposed dividend.
Notes to the consolidated financial statements
Continued
50 Christie Group Annual Report 2010 12. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in
issue during the year, which excludes the shares held in the Employee Share Ownership Plan (ESOP) trust.
31 December 2010 31 December 2009
£’000 £’000
Profit/(loss) from continuing operations attributable to equity holders of the Company 1,394 (2,053)
31 December 2010 31 December 2009
Thousands Thousands
Weighted average number of ordinary shares in issue 24,718 24,722
Adjustment for share options 67 1
Weighted average number of ordinary shares for diluted earnings per share 24,785 24,723
31 December 2010 31 December 2009
Pence Pence
Basic earnings per share
Continuing operations 5.64 (8.30)
Fully diluted earnings per share
Continuing operations 5.62 (8.30)
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential
ordinary shares. The Company has only one category of dilutive potential ordinary shares: share options. In 2009 the basic and diluted loss per share was the same,
as the exercise of share options would reduce the loss per share and was, therefore, anti-dilutive.
The calculation is performed for the share options to determine the number of shares that could have been acquired at fair value (determined as the average
annual market share price of the Company’s shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of
shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
13. Intangible assets – goodwill
Total
Group £’000
Cost
At 1 January 2010 and 31 December 2010 1,011
Total
Group £’000
Cost
At 1 January 2009 and 31 December 2009 1,011
Christie Group Annual Report 2010 51 13. Intangible assets – goodwill continued
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified according to country of operation and business segment. The carrying amounts of
goodwill by segment as at 31 December 2010 are as follows:
Professional Stock & Inventory 
Business Services Systems & Services
£’000 £’000
Goodwill 178 833
During the year, the acquired goodwill was tested for impairment in accordance with IAS 36 on the basis of the relevant CGUs. Following the impairment tests there
has been no change to the carrying values. The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use cash flow
projections based on current business plans. The key assumptions for the value-in-use calculations are those regarding revenue growth rates, discount rates and
long-term growth rates. Management determined budgeted revenue growth based on past performance and its expectations for the market development. Discount
rates were determined using post-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGUs. Cash flows
beyond the five-year period are extrapolated using estimated long term growth rates obtained from HM Treasury for both the UK and Continental Europe.
The revenue growth rate does not exceed the long-term average growth rate for the businesses in which the CGUs operate.
Professional Stock & Inventory 
Business Services Systems & Services
%%
Discount rates 10.0 10.0
Long-term growth rates 2.5 2.5
14. Intangible assets – other
Software
Group £’000
Cost
At 1 January 2010 296
Transfer from property, plant and equipment –
Additions 92
Disposals (36)
Foreign currency translation effects 8
At 31 December 2010 360
Accumulated amortisation and impairment
At 1 January 2010 158
Transfer from property, plant and equipment –
Charge for the year 46
Disposals (36)
Foreign currency translation effects 8
At 31 December 2010 176
Net book amount at 31 December 2010 184
Notes to the consolidated financial statements
Continued
52 Christie Group Annual Report 2010 14. Intangible assets – other continued
Software
Group £’000
Cost
At 1 January 2009 112
Transfer from property, plant and equipment 165
Additions 59
Disposals (40)
At 31 December 2009 296
Accumulated amortisation and impairment
At 1 January 2009 52
Transfer from property, plant and equipment 80
Charge for the year 66
Disposals (40)
At 31 December 2009 158
Net book amount at 31 December 2009 138
15. Property, plant and equipment
Fixtures, fittings,
Short leasehold computer equipment 
property and motor vehicles Total
Group £’000 £’000 £’000
Cost
At 1 January 2010 303 3,130 3,433
Additions – 306 306
Disposals – (529) (529)
Foreign currency translation effects – 11 11
At 31 December 2010 303 2,918 3,221
Accumulated depreciation
At 1 January 2010 303 2,381 2,684
Charge for the year – 451 451
Disposals – (516) (516)
Foreign currency translation effects – 11 11
At 31 December 2010 303 2,327 2,630
Net book amount at 31 December 2010 – 591 591
Christie Group Annual Report 2010 53 15. Property, plant and equipment continued
Fixtures, fittings,
Short leasehold computer equipment 
property and motor vehicles Total
Group £’000 £’000 £’000
Cost
At 1 January 2009 280 4,510 4,790
Transfer from/(to) Intangibles assets – other 23 (188) (165)
Additions – 80 80
Disposals – (1,272) (1,272)
At 31 December 2009 303 3,130 3,433
Accumulated depreciation
At 1 January 2009 260 3,121 3,381
Transfer from/(to) Intangibles assets – other 23 (89) (66)
Charge for the year 20 621 641
Disposals – (1,272) (1,272)
At 31 December 2009 303 2,381 2,684
Net book amount at 31 December 2009 – 749 749
Depreciation in the year on fixtures, fittings, computer equipment and motor vehicles includes £nil (2009: £2,000) on assets held under finance lease or hire
purchase agreements which have a net book value at 31 December 2010 of £nil (2009: £nil).
16. Deferred tax
Deferred tax assets have been recognised in respect of tax losses and other temporary differences giving rise to deferred tax assets where it is probable that these
assets will be recovered.
The movements in deferred tax assets (prior to the offsetting of balances within the same jurisdiction as permitted by IAS 12) during the year are shown below.
Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net.
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Deferred tax assets comprises:
Accelerated capital allowances 765 610 3 1
Losses not yet utilised 793 797 279 226
Short-term timing differences 997 654 197 3
Deferred tax asset 2,555 2,061 479 230
Deferred tax asset on pension 870 1,006 90 97
At 31 December 3,425 3,067 569 327
Notes to the consolidated financial statements
Continued
54 Christie Group Annual Report 2010 16. Deferred tax continued
Movements in the deferred tax asset:
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
At 1 January 3,067 2,063 327 316
Credited to statement of comprehensive income 358 1,004 242 11
At 31 December 3,425 3,067 569 327
Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is
probable. The Group did not recognise deferred tax assets of £139,000 (2009: £337,000) in respect of losses amounting to £518,000 (2009: £1,202,000) that can be
carried forward against future taxable income as the realisation of the benefit cannot be assessed as probable as at 31 December 2010.
UK deferred tax assets have been recognised at the UK corporation tax rate of 27% effective from 1 April 2011.
The UK government has announced future changes to the Corporation tax rate. These changes, if enacted, will result in a decrease in the standard rate of
corporation tax to 26% in April 2011, reducing by 1% per annum to a standard rate of 23% in April 2014. As at 31 December 2010 the substantively enacted rate
remains at 27% and in accordance with applicable accounting standards the deferred tax asset has been calculated using this rate. In the event that the proposed
rate changes are substantively enacted the effect on the deferred tax asset of the Group would be a reduction of up to £479,000 (Company: £56,000).
17. Investments in subsidiaries
Shares in subsidiary Loans to subsidiary
undertakings undertakings Total
Company £’000 £’000 £’000
Cost
At 1 January 2010 6,196 – 6,196
Additions 303 – 303
Written off (350) – (350)
At 31 December 2010 6,149 – 6,149
Provision for impairment
At 1 January 2010 3,936 – 3,936
Written off (350) – (350)
At 31 December 2010 3,586 – 3,586
Net book amount at 31 December 2010 2,563 – 2,563
Christie Group Annual Report 2010 55 17. Investments in subsidiaries continued
Shares in subsidiary Loans to subsidiary
undertakings undertakings Total
Company £’000 £’000 £’000
Cost
At 1 January 2009 5,746 1,700 7,446
Transfer to long term receivables – (1,700) (1,700)
Additions 450 – 450
At 31 December 2009 6,196 – 6,196
Provision for impairment
At 1 January 2009 3,923 – 3,923
Charge in the year 13 – 13
At 31 December 2009 3,936 – 3,936
Net book amount at 31 December 2009 2,260 – 2,260
Subsidiary undertakings
At 31 December 2010 the principal subsidiaries were as follows:
Company Country of incorporation Nature of business
Christie, Owen & Davies Ltd (trading as Christie + Co)* UK Business valuers, surveyors and agents
Christie + Co SARL* France Business valuers, surveyors and agents
Christie + Co GmbH* Germany Business valuers, surveyors and agents
Christie, Owen & Davies SL* Spain Business valuers, surveyors and agents
Christie + Co Oy* Finland Business valuers, surveyors and agents
Pinders Professional & Consultancy Services Ltd UK Business appraisers
RCC Business Mortgage Brokers Ltd (trading as Christie Finance) UK Business mortgage brokers
RCC Insurance Brokers Ltd* (trading as Christie Insurance) UK Insurance brokers
Orridge & Co Ltd UK Stocktaking and inventory management services
Ridgecop Limited* UK Stocktaking and inventory management services
Venners Ltd UK Licensed stock and inventory auditors and valuers
Venners Systems & Services Ltd (trading as Vennersys) UK EPoS, head office systems and merchandise control
Venners Systems & Services Corporation* (trading as Vennersys) Canada EPoS, head office systems and merchandise control
*The Company directly or indirectly owns 100% of the ordinary share capital of each of the above companies. Those designated with an asterisk represent indirect ownership.
Notes to the consolidated financial statements
Continued
56 Christie Group Annual Report 2010 17. Investments in subsidiaries continued
17a. Available-for-sale financial assets
Group Company
2010 2009 2010 2009
Non-current assets £’000 £’000 £’000 £’000
Cost
At 1 January 300 381 300 381
Additions – – – –
Disposals – (81) – (81)
At 31 December 300 300 300 300
Provision for impairment
At 1 January – 81 – 81
Charge for the year – – – –
Release of provision – (81) – (81)
At 31 December – – – –
Net book amount at 31 December 300 300 300 300
The available-for-sale financial assets are all denominated in sterling.
During 2009 the Group disposed of its entire shareholding in Capcon Holdings plc, an AIM listed business, for consideration of £141,000, realising a profit on
disposal of £60,000 after releasing all provisions against the carrying value of the shareholding.
The other available-for-sale financial asset represent an unquoted investment held at cost. The asset is classified as a non-current available-for-sale asset by
virtue of its non-classification in any other asset category. There are no current plans to dispose of the asset and as such the directors believe it appropriate to
carry the asset at the lower of cost and fair value.
18. Other receivables
Group Company
2010 2009 2010 2009
Non-current assets £’000 £’000 £’000 £’000
Amounts due from group undertakings – – 5,771 5,469
Less: Provision for impairment of amounts due from group undertakings – – (585) (615)
Other debtors 904 1,192 904 1,192
Other receivables 904 1,192 6,090 6,046
The Company’s non-current other receivables are denominated in sterling.
Amounts due from group undertakings represent loans due from subsidiaries which are repayable after more than one year .
Other debtors represent loans in respect of the Group’s share schemes repayable after more than one year, none of which are impaired.
Christie Group Annual Report 2010 57 19. Inventories
Group
2010 2009
£’000 £’000
Finished goods and goods for resale 1 1
A provision of £22,000 (2009: £22,000) is held against goods for resale to reduce the carrying value to reflect the net realisable value of the inventory.
20. Cash and cash equivalents
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Cash at bank and in hand 2,323 3,536 55 150
Short-term bank deposits – – – –
2,323 3,536 55 150
Cash, cash equivalents and bank overdrafts include the following for the purposes of the cashflow statement:
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Cash and cash equivalents 2,323 3,536 55 150
Bank overdrafts (note 26) (1,091) (1,813) (997) (1,813)
1,232 1,723 (942) (1,663)
The Group operates a centrally-controlled treasury function where the use of overdraft facilities is concentrated with the ultimate parent company. As a result at
31 December 2010 the ultimate parent undertaking had utilised bank overdrafts to the value of £997,000 (2009: £1,813,000).
Notes to the consolidated financial statements
Continued
58 Christie Group Annual Report 2010 21. Trade and other receivables
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Trade receivables 6,683 7,362 – –
Less: Provision for impairment of receivables (1,101) (1,837) – –
Amounts owed by group undertakings – – 2,144 2,040
Other debtors 1,068 1,163 260 282
Prepayments and accrued income 2,727 1,836 55 675
9,377 8,524 2,459 2,997
The fair values of trade and other receivables approximates to the carrying value as detailed above.
Movements on the Group’s provision for impairment of trade receivables are as follows:
Group
2010 2009
£’000 £’000
Provision at 1 January 1,837 2,577
Impairment of trade receivables during the year (566) (300)
Amounts written off in the year (131) (370)
Foreign currency translation effects (39) (70)
Provision at 31 December 1,101 1,837
The impairment of trade receivables in the year has been included in ‘Other operating expenses’ in the statement of comprehensive income. Amounts are written
off when there is no expectation of recovering additional cash.
The following summary details trade receivables that are not overdue (where payment terms have not been exceeded) as well as an analysis of overdue amounts
and related provisions.
Group
2010 2009
£’000 £’000
Not overdue 3,089 2,726
Amounts past due:
< 1 month 1,668 1,638
1 – 3 months 576 852
3 – 6 months 341 615
6 – 12 months 225 344
> 1 year 784 1,187
Provision for impairment of trade receivables (1,101) (1,837)
Amounts past due but not impaired 2,493 2,799
The carrying value of trade receivables that are not covered by credit insurance is £5,582,000 (2009: £5,525,000).
Christie Group Annual Report 2010 59 21. Trade and other receivables continued
The carrying value of trade receivables is reviewed and amounts not provided for are considered recoverable. Concentrations of credit risk with respect to trade
receivables are limited due to the Group’s customer base being large and diverse. Due to this, management believe there is no further credit risk provision required
in excess of the normal provision for doubtful receivables. The carrying amounts of trade and other receivables are denominated in the following currencies:
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Sterling 7,645 7,651 2,459 2,997
Euros 1,599 817 – –
Canadian Dollars 133 56 – –
9,377 8,524 2,459 2,997
22. Share capital
2010 2009
Ordinary shares of 2p each Number £’000 Number £’000
Allotted and fully paid:
At 1 January and 31 December 25,263,551 505 25,263,551 505
The Company has one class of ordinary shares which carry no right to fixed income.
Investment in own shares
The Group has established an Employee Share Ownership Plan (ESOP) trust in order to meet its future contingent obligations under the Group’s share option
schemes. The ESOP purchases shares in the market for distribution at a later date in accordance with the terms of the Group’s share option schemes. The rights
to dividends on the shares held have been waived.
At 31 December 2010 the total payments by the Company to the ESOP to finance the purchase of ordinary shares was £1,988,000 (2009: £1,869,000). The market
value at 31 December 2010 of the ordinary shares held in the ESOP was £323,000 (2009: £258,000). The investment in own shares represents 582,000 shares
(2009: 533,000) with a nominal value of 2p each.
Notes to the consolidated financial statements
Continued
60 Christie Group Annual Report 2010 22. Share capital continued
22a. Share based payments
Certain employees hold options to subscribe for shares in the Company at prices ranging from 39.5p to 251.5p under share option schemes for the period from
April 2001 – May 2010.
The remaining options outstanding under approved schemes (unapproved options marked *) at 31 December are shown below:
Number of Shares
2010 2009 Option exercise price Date granted Option exercise period
13,333 13,333 53.5p Apr 2001 Apr 2004 – Apr 2011
3,000 3,000 40.0p Oct 2001 Oct 2004 – Oct 2011
– 25,000 45.5p Sep 2002 Sep 2005 – Sep 2012
35,000 35,000 47.5p Apr 2003 Apr 2006 – Apr 2013
12,000 12,000 46.5p Jun 2003 Jun 2006 – Jun 2013
6,000 9,000 100.0p Apr 2005 Apr 2008 – Apr 2015
9,000 12,000 130.5p Apr 2006 Apr 2009 – Apr 2016
9,000 9,000 251.5p Mar 2007 Mar 2010 – Mar 2017
7,000 7,000 113.5p Apr 2008 Apr 2011 – Apr 2018
23,000 23,000 39.5p May 2009 May 2012 – May 2019
745,634 824,134 45.0p May 2009 May 2012 – May 2019
16,000 16,000 45.0p Jun 2009 Jun 2012 – Jun 2019
140,000 140,000 57.5p Sep 2009 Sep 2012 – Sep 2019
104,000 – 46.5p May 2010 May 2013 – May 2020
1,122,967 1,128,467
Under the Share Option Scheme the Remuneration Committee can grant options over shares to employees of the Company. Options are granted with a fixed
exercise price equal to the market price of the shares under option at the date of grant. The contractual life of an option is 10 years. Awards under the Share Option
Scheme are generally reserved for employees at senior management level and 145 employees are currently participating in this Group. The Company has made
grants at least annually. Options granted under the Share Option Scheme will become exercisable on the third anniversary of the date of grant. Exercise of an option
is subject to continued employment and achievement of a performance target.
The Group also operates a Save As You Earn (SAYE) scheme which was introduced in 2002. Under the SAYE scheme eligible employees can save up to £250 per
month over a three or five year period and use the savings to exercise options granted between 53.0p to 228.5p. There were 865,000 (2009: 737,000) remaining
options outstanding under the SAYE scheme at 31 December 2010.
Christie Group Annual Report 2010 61 22. Share capital continued
Share options (including SAYE schemes) were valued using the QCA share option valuer, which is based on Black-Scholes. No performance conditions were
included in the fair value calculations. The key assumptions used in the calculations are as follows:
2010 2009
Share price at grant date 39.5p – 251.5p 39.5p – 251.5p
Exercise price 39.5p – 251.5p 39.5p – 251.5p
Expected volatility 28.5% – 78.3% 28.5% – 75.3%
Expected life (years) 3 – 5 years 3 – 5 years
Risk free rate 1.8% – 5.1% 1.8% – 5.1%
Dividend yield 0.0% – 3.7% 0.0% – 3.7%
Fair value per option 10.35p – 84.8p 10.4p – 84.8p
The expected volatility is based on historical volatility over the last 5 years. The expected life is the average expected period to exercise. The risk free rate of return is
the yield on zero-coupon UK government bonds of a term consistent with the assumed option life.
A reconciliation of share option movements (excluding SAYE schemes) over the year to 31 December is shown below:
2010 2009
Weighted average Weighted average
Number exercise price Number exercise price
Outstanding at 1 January 1,128,467 50.05p 1,018,467 125.98p
Granted 107,000 46.50p 1,016,134 46.49p
Forfeited or lapsed (112,500) 48.90p (53,000) 101.34p
Exercised –– ––
Surrendered –– (853,134) 133.39p
Expired –– ––
Outstanding at 31 December 1,122,967 49.83p 1,128,467 49.98p
Exercisable at 31 December 69,333 52.70p 97,333 52.31p
No share options were exercised during the year or prior year . The total charge for the year relating to employee share based payment plans was £86,000
(2009: £92,000), all of which related to equity-settled share based payment transactions. The weighted average remaining contractual life of share options
outstanding at 31 December 2010 was 8.1 years (2009: 8.8 years).
Notes to the consolidated financial statements
Continued
62 Christie Group Annual Report 2010 23. Reserves
Capital Fair value 
Share Share based redemption and other Retained 
premium payments Own shares reserve reserves earnings
Group £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2010 4,073 521 (1,498) 10 3,106 (3,119)
Movement in respect of employee share scheme – 86 383 – 469 (410)
Comprehensive profits for the period ––– –– 1,394
At 31 December 2010 4,073 607 (1,115) 10 3,575 (2,135)
Capital Fair value 
Share Share based redemption and other Retained 
premium payments Own shares reserve reserves earnings
Group £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2009 4,073 429 (1,581) 10 2,931 (1,066)
Movement in respect of employee share scheme – 92 83 – 175 –
Comprehensive losses for the period ––– –– (2,053)
At 31 December 2009 4,073 521 (1,498) 10 3,106 (3,119)
Capital Fair value 
Share Share based redemption Other and other Retained 
premium payments Own shares reserve reserves reserves earnings
Company £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2010 4,073 5 (1,498) 10 89 2,679 4,499
Movement in respect of employee share scheme – (1) 383 –– 382 (410)
Comprehensive losses for the period ––– ––– (139)
At 31 December 2010 4,073 4 (1,115) 10 89 3,061 3,950
Capital Fair value 
Share Share based redemption Other and other Retained 
premium payments Own shares reserve reserves reserves earnings
Company £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2009 4,073 4 (1,581) 10 89 2,595 2,930
Movement in respect of employee share scheme –1 83 –– 84 –
Comprehensive income for the period ––– ––– 1,569
At 31 December 2009 4,073 5 (1,498) 10 89 2,679 4,499
Share premium – The balance on the share premium reserve represents the amounts received in excess of the nominal value of the ordinary shares.
Share based payments – The balance on the share based payments reserve represents the value of services provided in relation to employee share ownership schemes.
Own shares – Own shares represents Company shares held in the Employee Share Ownership Plan (ESOP) to meet the future requirements of employee share-
based payment arrangements.
Capital redemption reserve – The balance on the capital redemption reserve represents the aggregate nominal value of all the ordinary shares repurchased and cancelled.
Christie Group Annual Report 2010 63 24. Retirement benefit obligations
The amounts recognised in the statement of financial position are determined as follows:
2010 2009
£’000 £’000
United Kingdom 3,222 3,594
United Kingdom
The Group operates two defined benefit schemes (closed to new members) providing pensions based on final pensionable pay. The contributions are determined by
qualified actuaries on the basis of triennial valuations using the projected unit method.
When a member retires, the pension and any spouse’s pension is either secured by an annuity contract or paid from the managed fund. Assets of the schemes are
reduced by the purchase price of any annuity purchase and the benefits no longer regarded as liabilities of the scheme.
The amounts recognised in the statement of financial position are determined as follows:
2010 2009
£’000 £’000
Present value of funded obligations 33,042 29,348
Fair value of plan assets (33,324) (29,348)
(282) –
Present value of unfunded obligations 2,746 4,277
Unrecognised actuarial losses 758 (683)
Liability in the statement of financial position 3,222 3,594
The principal actuarial assumptions used were as follows:
2010 2009
% %
Discount rate 5.8 5.8
Inflation rate 3.5 3.5
Expected return on plan assets 6.2 – 7.6 6.2 – 7.6
Future salary increases 3.5 3.5 – 3.6
Future pension increases 2.5 – 3.5 3.0 – 3.5
Assumptions regarding future mortality experience are set based on advice from published statistics and experience. The average life expectancy in years of a
pensioner retiring at age 65 is as follows:
2010 2009
Years Years
Male 19.8 – 22.0 19.8 – 22.0
Female 22.7 – 24.0 22.7 – 24.0
Notes to the consolidated financial statements
Continued
64 Christie Group Annual Report 2010 24. Retirement benefit obligations continued
The movement in the defined benefit obligation is as follows:
2010 2009
£’000 £’000
At 1 January 33,625 33,547
Interest cost 1,966 1,958
Current service cost 667 795
Benefits paid (672) (654)
Actuarial (gains)/losses 202 (2,021)
At 31 December 35,788 33,625
Attributable to:
Present value of funded obligations 33,042 29,348
Present value of unfunded obligations 2,746 4,277
35,788 33,625
The movement in the fair value of plan assets is as follows:
2010 2009
£’000 £’000
At 1 January 29,348 25,463
Expected return on plan assets 1,988 1,781
Contributions 1,017 749
Benefits paid (672) (654)
Actuarial gains 1,643 2,009
At 31 December 33,324 29,348
The amounts recognised in the statement of comprehensive income are as follows:
2010 2009
£’000 £’000
Current service cost 667 795
Interest cost 1,966 1,958
Expected return on plan assets (1,988) (1,781)
Net actuarial loss recognised in the year – 144
645 1,116
The actual return on plan assets was £3,631,000 (2009: £3,790,000).
Christie Group Annual Report 2010 65 24. Retirement benefit obligations continued
Plan assets are comprised as follows:
2010 2009
Expected return Expected return
£’000 % £’000 %
Equity 24,167 6.5 – 7.6 20,961 6.5 – 7.6
Debt 4,965 7.5 – 7.6 4,534 5.1 – 7.5
Other 4,192 5.3 – 7.6 3,853 5.0 – 5.3
33,324 6.2 – 7.6 29,348 6.2 – 7.6
The expected return on plan assets was determined by considering the expected returns available on the assets underlying the current investment policy. Expected
yields on fixed interest investments are based on gross redemption yields as at the statement of financial position date. Expected returns on equity and property
investments reflect long-term real rates of return experienced in the respective markets.
Expected contributions to UK post retirement benefit schemes for the year ending 31 December 2010 are £1,301,000.
History of experience adjustments:
2010 2009 2008 2007 2006
As at 31 December £’000 £’000 £’000 £’000 £’000
Present value of defined obligations 35,788 33,625 33,547 30,998 32,303
Fair value of plan assets (33,324) (29,348) (25,463) (29,566) (25,679)
Deficit 2,464 4,277 8,084 1,432 6,624
Experience adjustments on plan liabilities (202) 2,021 (1,182) 218 364
Experience adjustments on plan assets 1,643 2,009 (6,508) (346) 915
Company
The statement of comprehensive income charge of £21,000 (2009: £21,000) and statement of financial position liability of £335,000 (2009: £347,000) recognised
by the Company in relation to the Christie Group defined benefit scheme has been allocated on the basis of contributions to the scheme. For the year ended
31 December 2010 contributions paid by the Company amounted to £42,000 (2009: £24,000).
Notes to the consolidated financial statements
Continued
66 Christie Group Annual Report 2010 25. Trade and other payables
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Trade payables 1,968 2,062 247 –
Amounts owed to group undertakings – – 2,574 1,930
Other taxes and social security 1,585 1,720 251 66
Other creditors 472 427 1 75
Accruals 3,522 3,804 187 166
Deferred income 1,033 618 – –
8,580 8,631 3,260 2,237
The carrying value of all amounts shown above corresponds to their fair value.
The carrying amounts of trade and other payables are denominated in the following currencies:
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Sterling 7,808 7,600 3,260 2,237
Euros 751 860 – –
Canadian Dollars 21 171 – –
8,580 8,631 3,260 2,237
26. Borrowings
Group Company
2010 2009 2010 2009
Current £’000 £’000 £’000 £’000
Bank overdrafts 1,091 1,813 997 1,813
Invoice discounting 626 881 – –
1,717 2,694 997 1,813
The Group is not subject to any contractual repricing.
The carrying amounts of current borrowings approximate to their fair value.
Christie Group Annual Report 2010 67 27. Provisions
Vacant leasehold Long-term benefits 
provisions due to employees Dilapidations Total
£’000 £’000 £’000 £’000
At 1 January 2010 244 2,058 329 2,631
Charged/(credited) to the statement of comprehensive income
– Additional provision 50 560 88 698
– Released during the year (32) –– (32)
Utilised during the year (113) (934) (16) (1,063)
At 31 December 2010 149 1,684 401 2,234
Vacant leasehold Long-term benefits 
provisions due to employees Dilapidations Total
£’000 £’000 £’000 £’000
At 1 January 2009 889 1,136 285 2,310
Charged/(credited) to the statement of comprehensive income
– Additional provision 212 1,173 144 1,529
– Released during the year (618) – (100) (718)
Utilised during the year (239) (251) – (490)
At 31 December 2009 244 2,058 329 2,631
2010 2009
Analysis of total provisions: £’000 £’000
Non-current 2,093 1,720
Current 141 911
2,234 2,631
a. Long-term benefits due to employees
Provisions for long-term benefits to employees comprise £1,629,000 for incentives in excess of one year’s duration. These are determined in line with the
projected unit credit method.
b. Dilapidations
Provision is held in respect of potential dilapidations arising on leasehold premises over the length of the lease in accordance with the lease terms.
The non-current liabilities are estimated to be payable over periods from one to seven years.
c. Vacant leasehold provisions
Provisions are held for rental costs and related premises charges on leasehold commitments for excess or unutilised space, net of expected income from
anticipated sub-lease arrangements. All provisions are carried at present value after applying an appropriate discount rate, and all non–current liabilities are
estimated to be payable over periods from one to seven years.
Notes to the consolidated financial statements
Continued
68 Christie Group Annual Report 2010 28. Notes to the cash flow statement
Cash generated from/(used in) operations
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Profit/(loss) for the year 1,394 (1,949) (139) 1,573
Adjustments for:
– Taxation (455) (1,752) (314) (779)
– Finance costs/(credit) 103 47 (61) (176)
– Impairment of investments in subsidiaries – – – 13
– Depreciation 451 641 – –
– Amortisation of intangible assets 46 66 – –
– Loss on sale of property, plant and equipment 6 5 – –
– Foreign currency translation 21 30 7 –
– (Decrease)/increase in provisions (397) 321 – –
– Movement in available-for-sale financial asset – (141) – (141)
– Movement in share option charge 86 92 (1) 1
– Movement in retirement benefit obligation (372) 225 (12) 9
– Decrease/(increase) in non-current other receivables 288 (84) – –
– Dividends received – – (350) (1,181)
Changes in working capital (excluding the effects exchange differences on consolidation):
– Increase in inventories – (1) – –
– (Increase)/decrease in trade and other receivables (825) 982 403 (2,933)
– (Decrease)/increase in trade and other payables (51) (658) 1,115 (667)
Cash generated from/(used in) operations 295 (2,176) 648 (4,281)
29. Reconciliation of movement in net funds
As at As at
1 January 2010 Cash flow 31 December 2010
£’000 £’000 £’000
Cash and cash equivalents 3,536 (1,213) 2,323
Bank overdrafts (1,813) 722 (1,091)
Invoice discounting (881) 255 (626)
842 (236) 606
Christie Group Annual Report 2010 69 30. Financial assets and liabilities
The carrying value of financial assets and liabilities, which are principally denominated in Sterling, Euros or Canadian dollars, were as follows:
Group Company
2010 2009 2010 2009
Assets £’000 £’000 £’000 £’000
Available-for-sale financial assets 300 300 300 300
Trade and other receivables 10,281 9,716 8,549 9,043
Current tax assets 93 – 72 –
Cash and cash equivalents 2,323 3,536 55 150
12,997 13,552 8,976 9,493
Group Company
2010 2009 2010 2009
Liabilities £’000 £’000 £’000 £’000
Retirement benefit obligations 3,222 3,594 335 347
Provisions 2,234 2,631 – –
Trade and other payables 8,580 8,631 3,260 2,237
Borrowings 1,717 2,694 997 1,813
15,753 17,550 4,592 4,397
31. Commitments
a. Operating lease commitments
At 31 December 2010 the Group has lease agreements in respect of properties, vehicles, plant and equipment, for which the payments extend over a number of years.
2010 2009
Vehicles and Vehicles and 
Property equipment Property equipment
£’000 £’000 £’000 £’000
Commitments under non-cancellable operating leases due:
Within one year 1,372 529 1,578 553
Within two to five years 3,505 523 3,384 532
After five years 1,589 – 1,234 –
6,466 1,052 6,196 1,085
Operating lease payments represent:
•rentals payable by the Group for certain of its office properties. The leases have varying terms, break clauses and renewal rights.
•rentals for vehicles and equipment under non-cancellable operating lease agreements
Notes to the consolidated financial statements
Continued
70 Christie Group Annual Report 2010 31. Commitments continued
The Group also sub-lets an element of office space in respect of certain property lease agreements. The future minimum sublease payments expected to be
received under non-cancellable subleases at the statement of financial position date was £254,000.
b. Capital commitments
The Group has contracted but not provided for capital commitments for £nil (2009: £nil) of capital expenditure.
32. Contingent liabilities
In the ordinary course of business, claims arise in Group companies. In the opinion of the Directors, appropriate amounts have been set aside in the individual
companies within the Group in respect of liabilities which they may suffer as a result of the resolution of these claims. As at 31 December 2010 no material
unprovided contingent liabilities existed (2009: £nil).
33. Related-party transactions
Group
There is no controlling interest in the Group’s shares.
The Group Executive Directors are considered to be the persons who have the authority and responsibility for planning, directing and controlling the Group.
This information is included in the Director’s remuneration report for the Directors employed by the Company.
2010 2009
£’000 £’000
Loans to Directors:
At 1 January and 31 December – 136
The loan represents an amount advanced in respect of the Group’s share schemes repaid in April 2010.
Company
Transactions with Group undertakings:
2010 2009
£’000 £’000
Dividends received from subsidiaries 350 1,181
Provision of services 3,099 2,403
Purchase of services 585 1,410
Sales and purchases to group undertakings were carried out on commercial terms and conditions.
Year end balances arising from sales and provision of services to group undertakings are disclosed in Notes 18, 21 and 25.
See Note 18 for provisions against amounts due from group undertakings.
Christie Group Annual Report 2010 71 Consolidated statements of comprehensive income
2010 2009 2008 2007 2006
£’000 £’000 £’000 £’000 £’000
Revenue 48,905 47,067 63,422 87,372 87,096
Operating profit/(loss) before exceptional items 1,042 (3,654) (2,674) 7,001 6,079
Exceptional items – – (1,964) ––
Finance credit/(costs) (103) (47) 65 214 73
Profit/(loss) on ordinary activities before tax 939 (3,701) (4,573) 7,215 6,152
Taxation 455 1,752 1,173 (2,567) (2,019)
Profit/(loss) on ordinary activities after tax 1,394 (1,949) (3,400) 4,648 4,133
Non-controlling interest – ––– (2)
Profit/(loss) for the year after tax 1,394 (1,949) (3,400) 4,648 4,131
Earnings per share
– basic 5.64p (8.30p) (13.88p) 19.12p 16.90p
– basic before exceptional finance credit (net of tax) 5.62p (8.30p) (13.88p) 19.12p 16.90p
Dividends per ordinary share (payable in respect of the year) 1.00p 0.00p 0.50p 4.25p 4.00p
The 2009 and 2008 results shown above are for continuing operations only.
Consolidated statement of financial position
2010 2009 2008 2007 2006
£’000 £’000 £’000 £’000 £’000
Non-current assets 6,415 6,457 5,951 14,499 11,952
Current assets 11,794 12,061 12,430 24,245 26,307
Non-current liabilities (2,093) (1,720) (1,751) (432) (145)
Current liabilities (10,438) (12,236) (10,554) (16,730) (17,546)
5,678 4,562 6,076 21,582 20,568
Non-current borrowings – –– (1,275) (1,735)
Retirement benefit obligations (3,222) (3,594) (3,225) (4,343) (6,300)
Net assets 2,456 968 2,851 15,964 12,533
Five-year record
72 Christie Group Annual Report 2010 Company information
Investor and shareholder-related information can 
be found on our website at: www.christiegroup.com
Financial calendar 
Annual General Meeting
39 Victoria Street, London SW1H 0EU Wednesday 15 June 2011 at 10am
Announcements
Half-year results for 2011 September 2011
Preliminary full-year results for 2011 March 2012
Final dividend 2010
Ex-dividend 1 June 2011
Record date 3 June 2011
Payment date 4 July 2011
Dates are correct at the time of printing, but are subject to change.
Registrars 
All administrative enquiries relating to shareholdings and requests to receive
corporate documents by e-mail should, in the first instance, be directed to:
Capita Registrars
The Registry
34 Beckenham Road
Beckenham 
Kent
BR3 4TU
0871 664 0300 (calls cost 10 pence per minute plus network extras.
Lines are open from 8:30am to 5:30pm Mon –Fri) from the UK and
+44 20 8639 3399 from overseas.
shareholder .services@capitaregistrars.com
Shareholders who receive duplicate sets of company mailings because they
have multiple accounts should write to Capita Registrars to have their
accounts amalgamated.
Shareholder portal
You will need your investor code, which can be found on your share
certificate(s) to register for the shareholder portal.
Once you have registered, you can immediately:
•Cast your proxy vote on-line.
•Elect to receive shareholder communication electronically.
And, after you have activated your account, you can benefit from a number of
other on-line services:
•View your holding balance and indicative share price and valuation.
•View transactions on your holding and dividend payments you have received.
•Update your address or register a bank mandate instruction to have
dividends paid directly to your bank account.
•Access a wide range of shareholder information including downloadable forms.
www.capitashareportal.com
ShareGift
ShareGift is a charity share donation scheme for shareholders who may
wish to dispose of a small number of shares where the market value makes
it uneconomic to sell them on a commission basis. The scheme is
administered by the Orr Mackintosh Foundation. For further information,
please contact the foundation: 020 7930 3737.
www.sharegift.org
Shareholder information
Christie Group Annual Report 2010 73 Unauthorised brokers (“boiler room” scams)
Shareholders are advised to be wary of any unsolicited advice, offers to buy
shares at a discount or offers of free company reports. These are typically
from overseas based “brokers” who target UK shareholders offering to sell
them what often turns out to be worthless or high risk shares in US or UK
investments. These are commonly known as “boiler rooms”. 
If you receive any unsolicited investment advice:
•Make sure you get the correct name of the person and organisation.
•Check that they are properly authorised by the FSA before getting involved.
You can check at: www.fsa.gov.uk/register
•Report the matter to the FSA either by calling 0845 606 1234 or visiting:
www.moneymadeclear .fsa.gov.uk
•If the calls persist, hang up.
Details of any share dealing facilities that Christie Group endorses will
only be included in company mailings.
More detailed information can be found on the FSA website:
www.moneymadeclear .fsa.gov.uk
Identity theft
Tips for protecting your shares in the Company:
•Ensure all your certificates are kept in a safe place or hold your shares
electronically in CREST via a nominee.
•Keep correspondence from us and Capita in a safe place and destroy any
unwanted correspondence by shredding.
•If you change address, inform Capita in writing or update your address online
via the shareholder portal. If you receive a letter from Capita regarding a
change of address but have not moved, please contact them immediately.
•Consider having your dividend paid directly into your bank. This will reduce
the risk of the cheque being intercepted or lost in the post. If you change
your bank account, inform Capita of the details of your new account. You can
do this by post or online via the shareholder portal. 
•If you are buying or selling shares, only deal with brokers registered and
authorised to carry out that type of business.
•Be wary of phone calls or e-mails purporting to come from us or Capita
asking you to confirm personal details or details of your investment in
our shares. Neither we nor Capita will ever ask you to provide information
in this way.
Shareholder information
Continued
74 Christie Group Annual Report 2010 Christie Group plc
39 Victoria Street
London SW1H 0EU
T: +44 (0) 20 7227 0707
E: executive@christiegroup.com
W: www.christiegroup.com
Christie + Co
39 Victoria Street
London SW1H 0EU
T: +44 (0) 20 7227 0700
E: enquiries@christie.com
W: www.christie.com and
www.christiecorporate.com
Austria – Vienna
Dapontegasse 11/9
1030 Vienna
T: +43 (0) 1 / 9 97 13 65 
E: vienna@christie.com
Finland – Helsinki
Tammasaarenlaituri 3
00180 Helsinki
T: +358 (0) 9 4137 8500
E: helsinki@christie.com 
France – Paris
25 rue d’Artois
75008 Paris
T: +33 (0) 1 53 96 72 72
E: paris@christie.com
France – Lyon
11 rue Pascal Tavernier
42000 Saint-Etienne
T: +33 (0) 4 77 25 11 47
E: lyon@christie.com
France – Marseille
35 cours Pierre Puget
13286 Marseille cedex 06
T: +33 (0) 4 91 29 12 40
E: marseille@christie.com 
France – Rennes
Immeuble “Artemis”
Parc Monier
167 route de Lorient
35000 Rennes
T: +33 (0) 2 99 59 83 30
E: rennes@christie.com 
Germany – Berlin 
Markgrafenstraße 32
10117 Berlin
T: +49 (0) 30/20 00 96-0
E: berlin@christie.com
Germany – Frankfurt
Bockenheimer Landstraße 93
60325 Frankfurt am Main
T: +49 (0) 69/90 74 57-0
E: frankfurt@christie.com
Germany – Munich
Platzl 3
80331 Munich
T: +49 (0) 89 / 2 00 00 07-0
E: munich@christie.com
Spain – Barcelona
Paseo de Gracia 11
Escalera B, 4° 3ª
08007 Barcelona
T: +34 93 34 361 61
E: barcelona@christie.com
United Arab Emirates – Dubai
Office 213
Building 9
Dubai Media City
Dubai
T: +971 (0) 50 426 6045 
E: dubai@christie.com
OTHER UNITED 
KINGDOM OFFICES
Birmingham
Edgbaston House
3 Duchess Place
Hagley Road
Birmingham B16 8NH
T: +44 (0) 121 456 1222
E: birmingham@christie.com
Bristol
Embassy House
Queens Avenue, Clifton
Bristol BS8 1SB
T: +44 (0) 117 946 8500
E: bristol@christie.com
Edinburgh
5 Logie Mill
Beaverbank Office Park
Logie Green Road
Edinburgh EH7 4HG
T: +44 (0) 131 557 6666
E: edinburgh@christie.com
Enfield
Lough Point
2 Gladbeck Way
Enfield EN2 7JA
T: +44 (0) 20 8370 3100
E: enfield@christie.com
Exeter
Kings Wharf
The Quay
Exeter EX2 4AN
T: +44 (0) 1392 285600
E: exeter@christie.com
Glasgow
120 Bath Street
Glasgow G2 2EN
T: +44 (0) 141 352 7300
E: glasgow@christie.com
Ipswich
Wolsey House
16 – 18 Princes Street
Ipswich IP1 1QT
T: +44 (0) 1473 256588
E: ipswich@christie.com
Leeds
Aquis House
Greek Street
Leeds LS1 5RU
T: +44 (0) 113 389 2700
E: leeds@christie.com
Directory
Christie Group Annual Report 2010 75 London
39 Victoria Street
London SW1H 0EU
T: +44 (0) 20 7227 0700
E: enquiries@christie.com
Maidstone
Vaughan Chambers
4 Tonbridge Road
Maidstone ME16 8RP
T: +44 (0) 1622 656000
E: maidstone@christie.com
Manchester
Acresfield
St Ann’s Square
Manchester M2 7HA
T: +44 (0) 161 833 3311
E: manchester@christie.com
Milton Keynes
Chancery House
199 Silbury Boulevard
Milton Keynes MK9 1JL
T: +44 (0) 1908 300950
E: miltonkeynes@christie.com
Newcastle
Shakespeare House
18 Shakespeare Street
Newcastle upon Tyne NE1 6AQ
T: +44 (0) 191 222 1740
E: newcastle@christie.com
Nottingham
Alan House
Clumber Street
Nottingham NG1 3ED
T: +44 (0) 115 948 3100
E: nottingham@christie.com
Winchester
Star Lane House
Staple Gardens
Winchester SO23 8SR
T: +44 (0) 1962 844455
E: winchester@christie.com
Christie Finance
The postal addresses are the same as
Christie + Co in each case:
Birmingham
T: +44 (0) 121 452 3717
E: birmingham@christiefinance.com
Bristol
T: +44 (0) 117 946 8502
E: bristol@christiefinance.com
Edinburgh
T: +44 (0) 131 524 3417
E: edinburgh@christiefinance.com
Enfield
T: +44 (0) 20 8370 3115
E: enfield@christiefinance.com
Exeter
T: +44 (0) 1392 285612
E: exeter@christiefinance.com
Glasgow
T: +44 (0) 141 352 7310
E: glasgow@christiefinance.com
Ipswich
T: +44 (0) 1473 234907
E: ipswich@christiefinance.com
Leeds
T: +44 (0) 113 389 2717
E: leeds@christiefinance.com
London
T: +44 (0) 20 7227 0780
E: london@christiefinance.com
Maidstone
T: +44 (0) 1622 656006
E: maidstone@christiefinance.com
Manchester
T: +44 (0) 161 833 6901
E: manchester@christiefinance.com
Milton Keynes
T: +44 (0) 1908 300959
E: miltonkeynes@christiefinance.com
Newcastle
T: +44 (0) 191 269 7025
E: newcastle@christiefinance.com
Nottingham
T: +44 (0) 115 945 4712
E: nottingham@christiefinance.com
Winchester
T: +44 (0) 1962 833818
E: winchester@christiefinance.com
Christie Insurance
11 – 21 Paul Street
London EC2A 4JU 
T: +44 (0) 20 7448 8820 
E: enquiries@christieinsurance.com
W: www.christieinsurance.com
Ipswich
Wolsey House
16 – 18 Princes Street
Ipswich IP1 1QT
T: +44 (0) 1473 234900
E: ipswich@christieinsurance.com
Orridge
Essex House
Astra Centre
Edinburgh Way
Harlow CM20 2BN
T: +44 (0) 1279 775600
E: contact@orridge.co.uk
W: www.orridge.co.uk
Belgium
Renbaanlaan 60 
1050 Brussel
T: +32 (0) 26 46 25 47
E: contact@orridge.eu
W: www.orridge.eu
OTHER UNITED 
KINGDOM OFFICE
Centre House
Court Parade
Aldridge WS9 8LT
T: +44 (0) 1922 472000
E: contact@orridge.co.uk
Pinders
Pinder House
249 Upper Third Street
Milton Keynes MK9 1DS
T: +44 (0) 1908 350500
E: info@pinders.co.uk
W: www.pinders.co.uk and
www.pinderpack.com
Venners
Essex House
Astra Centre
Edinburgh Way
Harlow CM20 2BN
T: +44 (0) 1279 620820
E: enquiries@venners.co.uk
W: www.venners.com
Vennersys
249 Upper Third Street
Milton Keynes MK9 1DS
T: +44 (0) 1908 350650
E: contact@vennersys.com
W: www.vennersys.co.uk
North America
200 – 1920 Yonge Street
Toronto
Ontario
Canada M4S 3E2
T: +1 416 572 7784
E: contact@vennersys.com
W: www.vennersys.com
Directory
Continued
76 Christie Group Annual Report 2010 Designed and produced by fourthquarter
The paper used in this document contains
materials sourced from responsibly
managed and sustainable commercial
forests, certified in accordance with the
FSC (Forest Stewardship Council).
1 Highlights of the year
2 Our core capabilities
3 Our brands
4 Chairman’s statement
5 Strategy
6 Chief Executive’s review
7 Driving recovery
8 Care sector review
10 Leisure sector review
12 Retail sector review
14 Divisional review
20 Financial review
21 KPIs
22 Board of directors
22 Company information
23 Directors’ Report
24 Corporate governance
27 Remuneration report
29 Statement of directors’ responsibilities
30 Independent auditor’s report
31 Consolidated statement of 
comprehensive income
32 Consolidated statement of changes 
in shareholders’ equity
33 Consolidated statement of
financial position
34 Consolidated statement of cash flows
35 Company statement of changes in
shareholders’ equity
36 Company statement of financial position
37 Company statement of cash flows
38 Notes to the consolidated
financial statements
72 Five-year record
73 Shareholder information
75 Directory
Contents
Christie Group offers a portfolio of professional business services 
for the leisure, retail and care sectors.
These include surveying, valuation, agency, consultancy, finance, insurance,
stock control and business software solutions. Our focus on a limited number
of sectors gives us an unrivalled market awareness in each of these areas.
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. In these ways, and through our
innovative use of technology, we have built a reputation for making a
significant contribution to our clients’ commercial success.
About us
Ch ristie Gro u p plc
Professional Business Services
The expertise offered by Christie+ Co, Christie Finance and Christie Insurance 
covers all aspects of valuing, buying, selling, developing, financing and insuring 
a wide variety of businesses. Its scope is complemented by the comprehensive
appraisal and project management services available from Pinders.
Stock & Inventory Systems & Services
Orridge and Venners are the leading specialists in stock control and inventory
management services. Orridge specialises in all fields of retail, Venners
focuses on the hospitality sector and Vennersys provides software and
systems to the leisure and hospitality sectors.
Our divisions
Overview Business review Governance Financial statements
Directors’ report Christie Group plc
39 Victoria Street
London SW1H 0EU
United Kingdom
T: +44 (0) 20 7227 0707
F: +44 (0) 20 7227 0708
E: executive@christiegroup.com
www.christiegroup.com
Driving recove ry
Annual Report 2010
Christie Group plc ANNUAL REPORT 2010