Christie Group plc
Annual Report 2006
Adding value
Christie Group plc
39 Victoria Street
London SW1H 0EU
United Kingdom
Tel  +44 (0) 20 7227 0707
Fax  +44 (0) 20 7227 0708
www.christiegroup.com
Christie Group plc  Annual Report 2006 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.
Our vision 
To continue to flourish as a 
business services and software 
group serving the needs of 
predominantly European and 
North American clients.
Our objective
To build on our substantial 
strengths and successes in 
our chosen sectors.
Our aim
To grow our business through 
product development, 
new services and appropriate 
acquisitions and strategic 
alliances – while best serving 
our customers’ needs.
Christie Group plc Annual Report 2006 65
Newcastle
Tel: +44 (0) 191 269 7006
E-mail: newcastle@christiefinance.com
Nottingham
Tel: +44 (0) 115 945 4712
E-mail: nottingham@christiefinance.com
Winchester
Tel: +44 (0) 1962 833818
E-mail: winchester@christiefinance.com
Christie Insurance
4 & 6 York Street
London
W1U 6PJ
Tel: +44 (0) 844 4124924
E-mail: enquiries@christieinsurance.com
Web: www.christieinsurance.com
Orridge
Essex House
Astra Centre
Edinburgh Way
Harlow
CM20 2BN
Tel: +44 (0) 1279 620800
E-mail: enquiries@orridge.co.uk
Web: www.orridge.co.uk
Belgium
Avenue de l’Hippodrome 60
B-1050 Brussels
Tel: +32 (0) 26 46 25 47
E-mail: brussels@orridge.be
Web: www.orridge.be
Other United Kingdom office:
Centre House
Court Parade
Aldridge
WS9 8LT
Tel: +44 (0) 1922 472000
E-mail: enquiries@orridge.co.uk
Pinders
Pinder House
249 Upper Third Street
Milton Keynes
MK9 1DS
Tel: +44 (0) 1908 350500
E-mail: info@pinders.co.uk
Web: www.pinders.co.uk and www.pinderpack.com
Other United Kingdom office:
2b Prospect Street
Caversham
Reading
RG4 8JG
Tel: +44 (0) 118 946 4000
E-mail: caversham@pinders.co.uk
VCSTIMELESS
174 quai de Jemmapes
75010 Paris
Tel: +33 (0) 1 44 52 21 21
E-mail: contact@vcstimeless.fr
Web: www.vcstimeless.fr
Italy
Via Galeazzo Alessi 8 
20123 Milano
Tel: +39 02 58115120
E-mail: info@vcstimeless.it
Web: www.vcstimeless.it
Spain/Portugal
María de Molina
37 Bis, 3ª Planta
28006 Madrid 
T: +34 91 299 28 00
E-mail: contacto@vcstimeless.es
Web: www.vcstimeless.es
United Kingdom
249 Upper Third Street
Witan Gate West
Milton Keynes
MK9 1DS
Tel: +44 (0) 1908 350550
E-mail: contact@vcstimeless.com
Web: www.vcstimeless.co.uk and www.vcstimeless.com
North America
702 - 230 Richmond Street West
Toronto
Ontario
Canada M5V 3E5
Tel: +1 416 599 8366
E-mail: enquiries@vcstimeless.ca
Web: www.vcstimeless.com
Other French office:
Pôle Hélioparc
26 av de l’Europe
34830 Clapiers
Tel: +33 (0) 4 99 62 32 74
E-mail: contact@vcstimeless.fr
Venners
Essex House
Astra Centre
Edinburgh Way
Harlow
CM20 2BN
Tel: +44 (0) 8700 607800
E-mail: enquiries@venners.co.uk
Web: www.venners.com
Designed and produced by Addison Corporate Marketing
Printed by Quadracolor
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The manufacturing mill is producing Zanders Mega silk and gloss
products with up to 50% recovered fibre from pre and post consumer waste 
and the remaining pulp source is totally chlorine free sourced from fully 
sustainable sources. The manufacturing mill has also been accredited with 
the internationally recognised standard ISO 14001. 69,968
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Christie Group plc Annual Report 2006 01
Financial highlights
Our year in brief
•  Revenue up by 12%
•  Operating profit up by 38%
• Earnings per share up 57% to 16.90p
• Total dividend for 2006 up 0.5p to 4p
•  Christie + Co’s European offices into profit
•  New Christie + Co offices opened in Marseilles  
and Dusseldorf
•  Orridge wins major food retailer
•  First BeStore customer for VCSTIMELESS
•  Strong performance in buoyant market for  
Professional Business Services Division
Contents 
IFC Christie Group
01  Our year in brief
02 Group at a glance
02 Our divisions
03 Our sectors 
04 Chairman’s statement
06 Chief Executive’s statement
08  Chief Executive’s review
14 Divisional review
14  Professional business services 
16 Software solutions
18  Stock & inventory services
20 Financial review
22 Board of directors
24  Directors’ report
26 Corporate governance
29 Remuneration report
31 Statement of directors’ responsibilities
32  Auditors’ report on financial statements
33 Consolidated income statement
34   Consolidated statement of changes in 
shareholders’ equity
35  Consolidated balance sheet
36 Consolidated cash flow statement
37  Company statement of changes in 
shareholders’ equity
38 Company balance sheet
39 Company cash flow statement
40  Notes to the consolidated  
financial statements
62 Five-year record
62  Financial calender
63 Directory
 Revenue    Operating profit  Basic earnings per share
  £’000   £’000  pence 2006
£49.7m
57%
2005
£43.3m
56%
2006
£15.1m
17%
2005
£13.7m
18%
2006
£22.3m
26%
2005
£20.5m
26%
02 Christie Group plc Annual Report 2006
Our divisions
 Professional business services Software solutions Stock & inventory services
Revenue
Business sales and valuations,
consultancy and financial services 
VCSTIMELESS
www.vcstimeless.com
Retail
The VCSTIMELESS retail applications 
address such sectors as fashion, 
accessories, luggage, leather goods, 
sports, footwear, home furnishings, 
perfumery and toys. Solutions 
include merchandising planning and 
management, forecasting, supply chain 
optimisation, EPoS, CRM and business 
intelligence applications. The Colombus 
Enterprise suite is a comprehensive retail 
management software suite, proven to 
meet the specific needs of single and 
multi-channel retailers. Colombus.next is 
a next generation supply chain optimisation 
and decision support solution. 
Leisure and cinemas
VCSTIMELESS’ VENPoS and Vista- 
branded leisure, hospitality and cinema 
management softwares comprise 
admissions, head office, back office and 
online ticketing modules.
Orridge
www.orridge.co.uk
Europe’s longest established stocktaking 
business specialising in all fields of 
retail stocktaking including high street, 
warehousing, food and factory. 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.
Venners
www.venners.com
The leading supplier of stocktaking, 
inventory, control audit and related stock 
management services to the hospitality 
sector. Bespoke software and systems 
enable real time management reporting  
to its customer base using the most 
up-to-date technology. 
Group at a glance
Christie + Co
www.christie.com
www.christiecorporate.com
The leading specialist firm providing 
business intelligence in the hospitality, 
leisure, retail and care sectors. 
International operations are based in 
Barcelona, Berlin, Dusseldorf, Frankfurt, 
London, Madrid, Marseilles, Munich and 
Paris. Its 16 offices across the UK are 
focused on agency, valuation services, 
investment and consultancy activity in 
its key sectors – hotels, public houses, 
restaurants, leisure, care and retail.
Christie Finance and Christie Insurance
www.christieinsurance.com
www.christiefinance.com
The market leaders in finance and 
insurance for the leisure, retail and care 
sectors. Services include finance for 
business purchase or re-financing in both 
the private and corporate sectors arranged 
in conjunction with major financial 
institutions, and the provision of tailored 
insurance schemes.
Pinders
www.pinders.co.uk 
www.pinderpack.co.uk
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. The Building 
Consultancy Division offers a full range of 
project management, building monitoring 
and surveying services. Instructions are 
undertaken for a broad cross section of 
corporate, charity, private and public  
sector clients.
EPoS and 
head office systems
Stock and 
inventory control 2006
£41.0m
47%
2005
£35.3m
46%
2006
£31.3m
36%
2005
£28.9m
37%
2006
£14.8m
17%
2005
£13.3m
17%
Christie Group plc Annual Report 2006 03
Our sectors
Leisure Retail Care
Sector constituent industries
• Hotels
• Pubs & Bars
• Restaurants
• Takeaways
• Sports & Fitness Clubs
• Cinemas & Entertainment Venues
• Visitor Attractions
• Destination Resorts
• Caravan & Holiday Parks
• Guesthouses
• Casinos & Bingo Halls
• Railways
• Nightclubs
• Currency Exchange Bureaux
• Event Caterers
• Ten-pin Bowling Alleys
• Supermarkets, Convenience  
Stores & Bakeries
• Fashion & Footwear Outlets
• Jewellery & Accessories Shops
• Lifestyle & Home Furnishings Stores
• Newsagents & Booksellers
• DIY & Garden Centres
• Off-licences
• Sports & Leisure Stores
• Post Offices
• Perfumery & Beauty Care Outlets
• Warehouses & Supply Chain Premises
• Professional Practices
• Forecourt Businesses
• Luggage & Leather Goods Shops
• Department Stores
• Residential Care Homes
• Nursing Homes
• Domiciliary Care Businesses
• Hospitals
• Close Care/Assisted Living Centres
• Surgeries
• Daycare & Childcare Centres
• Schools & Colleges
• Pharmacies
• Dental Practices
Christie  
Group offices
Turnover
Belgium
Canada
France
Germany
Italy
Spain
United Kingdom
Algeria
Andorra
Angola 
Austria 
Bahamas
Bahrain
Barbados
Belgium 
Brazil 
Cameroon
Canada 
Cape Verde
Channel Islands
China
Costa Rica 
Cyprus
Czech Republic 
Denmark
Dominican Republic
Egypt
France
Gabon
Germany 
Greece
Guadeloupe
Hong Kong
Hungary 
Iceland
Ireland
Isle of Man
Israel
Italy
Japan 
Kenya
Kuwait
Latvia
Lebanon
Luxembourg
Mali
Malta
Martinique
Mauritius
Mexico
Monaco
Morocco
Netherlands
Norway
Panama
Poland 
Portugal
Qatar
Reunion
Romania
Russia
Saudi Arabia
Senegal
Singapore
Spain
Sweden
Switzerland
Taiwan
Tanzania
Thailand
Trinidad and Tobago 
Tunisia
Turkey
United Arab 
Emirates
United Kingdom 
United States of 
America
Countries where we have transacted business 04
Chairman’s statement
I AM PLEASED TO REPORT THAT OUR 
OPERATING PROFIT FOR THE YEAR 
INCREASED BY 38% TO £6.1 MILLION 
ON SALES WHICH GREW BY 12% TO 
£87 .1 MILLION.
Our agency and valuations business, 
Christie + Co, gave a robust performance. 
It continues to benefit from its focus on 
substantial but specialist business areas 
such as licensed, leisure, care and retail, 
to a depth of understanding that cannot  
be matched by any of our competitors. 
A particularly pleasing aspect of the  
year is that the European offices of 
Christie + Co came into profit for the first 
time, having achieved a 54% sales gain 
in the year. The first European office was 
opened nine years ago. Since that time, 
the growth of the European business has 
been supported by strong marketing aimed 
at developing the Christie + Co brand. We 
have also opened other offices in major 
national or regional centres and finally 
we have recruited and developed suitably 
skilled staff members. We now have eight 
offices in three countries (France, Spain 
and Germany). We believe the way ahead 
should prove less arduous. 
In aggregate, the Professional Business 
Services division produced a profit of  
£8.4 million on a turnover of £49.7 million. 
Our software solutions business produced 
an increased loss of £2.4 million. Whilst 
sales increased to £15.1 million, our new 
software was only available for pilot testing 
towards the end of this period, but we 
believe this should generate increasing 
sales orders as the year progresses. 
Our stocktaking division continued to grow, 
but as reported in my interim statement 
in what proved to be something of a 
transitional year, it incurred high training 
costs as part of re-equipping. We won our 
first major food retailer, Co-op, and we 
foresee good growth prospects for us in 
this sector.
In summary, professional business 
services and stock and inventory services 
together generated over £8.9 million 
operating profit and £11.6 million of 
cash. Continued investment in software 
development is programmed for 2007 
and 2008. We intend to meet such costs 
from our existing cash resources, without 
impinging on our ability to fund growth in 
our profitable divisions.
We have enjoyed a very good year, thanks 
to the commitment of our skilled teams, 
and we continue to see scope for further 
improvement. 
Philip Gwyn
Chairman
mIlest Ones In 2006
FEBRUARY
VCSTIMELESS’s flagship product, Colombus 
Enterprise, wins an award in Spain for the 
best retail management software solution.
APRIL
Christie + Co begins its roll-out of Eclipse,  
a bespoke e-marketing tool, across its 
network of UK and European offices.
VCSTIMELESS launches its new look with  
a new logo and a more modern identity.
MAY
VCSTIMELESS launches the Colombus.next 
concept at its European User Conference.
The launch of VenPowa, Venners’ new 
software package that assists operators in 
controlling their stock movements.  05
“ We have enjoyed a 
very good year, thanks 
to the commitment 
of our skilled teams, 
and we continue to 
see scope for further 
improvement.”
j ULY
Pommy Sarwal is appointed as a Christie 
Group Non-executive Director.
AUGUST
Christie Group purchased the remaining  
10% of Orridge SA (Belgium) making it a 
wholly-owned subsiduary. 
SEPTEMBER
Christie + Co opens new offices in  
Marseilles and Dusseldorf.
Orridge expands into food retail  
stocktaking after winning a contract  
with the Co-op. 06 
Chief Executive’s statement
Our business philosophy is to focus on 
what we know and do best. Years of 
experience serving leisure, retail and 
care clients have given us a profound 
understanding of the operational 
dynamics that govern these sectors  
As a result, our clients – and ultimately 
Christie Group stakeholders – gain the 
full benefit of our skills and expertise.
Adhering to our philosophy served us 
well in 2006. Our turnover rose by 12% 
from £77.5 million to £87.1 million. Equally 
encouraging, our total operating profit rose 
by 38% from £4.4 million to £6.1 million. 
Each of our three divisions – professional 
business services, software solutions and 
stock and inventory services – achieved 
material organic growth within our areas  
of business activity.
Consistent with our strategy, each division 
also worked to develop a portfolio of 
logically related pan-European services 
meeting the requirements that run 
throughout our clients’ business activities. 
During the year, we reinforced this 
continental platform with the opening of 
new offices in Marseilles and Dusseldorf. 
Now, we are better placed than ever in 
France and Germany and particularly well-
positioned to grow our hotel consultancy 
and retail stocktaking and software 
business in an enlarged European Union. 
As a result, our business risks and 
opportunities are diversified across a 
number of economies, industry sectors  
and types of service provision. Christie Group plc Annual Report 2006 07
Our investment policy has also proved 
to be successful. We continue to provide 
the requisite time, energy, expertise and 
people in all our businesses, and we have 
invested in new products and appropriate 
strategic alliances. An example of this 
is our partnership with the j apanese 
third-party IT service provider PBC. Also 
during 2006, we built on the success of 
existing partnerships with other leading 
third-party companies such as Capgemini, 
BearingPoint and LogicaCMG.
What we are not doing, however, is 
engaging in technological innovation for 
its own sake. That is not in our, or our 
customers’, interests. Instead, in 2006 we 
continued to ensure that our investment in 
research and development programmes 
was confined to creating new products and 
services that would give us a competitive 
edge in best meeting customers’ needs.
Looking ahead, while Christie Group 
“ EACH OF OUR THREE DIVISIONS... 
ACHIEVED MATERIAL ORGANIC 
GROWTH WITHIN OUR AREAS OF 
BUSINESS ACTIVITY.”
european expansion
Each of our divisions is 
developing a portfolio 
of logically related pan-
European services that 
run through our clients’ 
business activities. As 
a result, our business 
risks and opportunities 
are diversified across a 
number of economies, 
industry sectors and  
types of service provision.
l everaging our synergies
Our logically related 
services, skills and 
expertise are put to best 
use, especially when 
two or more of our 
companies combine their 
complementary skills for 
the benefit of our clients.
OUR st RAte GY FOR GROWt H
remains a market leader in the services  
we provide, the potential for growth 
remains significant. In each of our three 
divisions, we pursue a strategy for growth 
by accessing a wider geographical market 
for our products and services, and 
deliberately moving higher up the value 
chain - whilst maintaining our penetration 
of private clients’ requirements in our 
multi-domestic markets. Our client focus 
is often the requirement of the company or 
division in addition to that of the individual 
trading unit.
The arrival of financial buyers in our 
business environment increases our ability 
to provide services across the leisure, 
retail and care markets as such investors 
are catholic in the range of businesses 
they own. In each of our chosen sectors we 
see opportunities to serve a wider range of 
businesses without losing our sector focus. 
Examples include forecourt businesses, 
domiciliary care and event catering.
One of the challenges to sustainable growth 
is attracting and retaining the right people. 
In 2006 we made progress in this area, 
selectively expanding our staff while our 
profits for the same period rose by 38%. 
The productivity and professionalism of 
everyone in the group should be applauded.
Thanks to the efforts of Christie Group 
people, we are well-equipped to face  
the future. 
David Rugg
Chief Executive
Increasing our penetration 
of our core sectors
As the business 
environment within our 
specialist sectors matures, 
we see opportunities to 
serve a wider range of 
businesses without losing 
our sector focus.  08
OUR EXPANSION IN EUROPE  
IS BASED ON CLIENT DEMAND 
AND MARKET OPPORTUNITIES 
ACROSS MULTIPLE NATIONAL 
ECONOMIES THROUGH OUR 
EXISTING PORTFOLIO OF SERVICES
In 2000, Christie Group acquired 
Groupe Timeless to complement 
Venners Computer Systems, its 
existing hospitality software business. 
Timeless specialises in software for 
integrated French fashion 
manufacturers and retailers.
The acquisition of Timeless was 
important in establishing a pan-
European presence for the group as 
a whole. Over the next few years VCS 
and Timeless were re-branded as 
VCSTIMELESS and expansion was 
accelerated as customers sought a 
single system with support across 
national boundaries. New offices were 
opened in Spain and Italy and, to date, 
VCSTIMELESS has provided systems to 
around 450 brands in over 20 European 
countries and others worldwide.
At the same time, the group’s platform 
on the continent was being extended 
through new Christie + Co offices. 
The first of these was Paris in 1998, 
followed by seven more in major cities 
across France, Germany and Spain.
In 2004, Christie + Co established its 
international consultancy service, 
operating in the hotel and care sectors. 
This multi-lingual team works with 
virtually all the major hotel operators 
and the leading investment and lending 
Chief Executive’s review
banks on a range of projects; such as 
feasibility studies and development, 
valuation and appraisal advice.
Christie + Co has gained a reputation for 
facilitating cross-border transactions, 
a perfect example of this collaborative 
approach being the Scotsman Group, 
which was sold in 2006. With offices in 
each of the hotels’ locations, Christie + 
Co was perfectly placed to handle this 
prestigious £63 million deal.
In 2002, Christie Group bought Orridge, 
another stocktaking company. Orridge 
specialises in retail and complements 
Venners’ work in the licensed sector. 
This acquisition took the group into 
Belgium where Orridge already had an 
office and from which it now serves 
clients in 13 countries on the continent.
Looking ahead into 2007, Christie  
Group will continue to expand in Europe. 
Orridge will open an office in the 
Netherlands to service its developing 
Dutch business, Christie + Co will 
extend its representation in Germany by 
opening in Hamburg and VCSTIMELESS 
intends to make Colombus more 
available in Central and Eastern Europe, 
thereby giving it the ability to generate 
further sales and gain new clients.  09
Europ Ean Expan SIon
Each of our divisions is developing 
a portfolio of logically related pan-
European services that run through  
our clients’ business activities.  
As a result, our business risks and 
opportunities are diversified across  
a number of economies, industry 
sectors and types of service provision. LEVEra GIn G our SYnEr GIES
Our logically related services, 
skills and expertise are put to best 
use, especially when two or more 
of our companies combine their 
complementary skills for the benefit  
of our clients.  11
WHEN TWO CHRISTIE GROUP 
COMPANIES PUT THEIR 
COMPLEMENTARy SKILLS 
TOGETHER FOR HILTON, 
SyNERGIES WERE THE RESULT
Together, Christie + Co and Venners 
were involved in the sale of two of 
Hilton Hotels Corporation’s biggest 
European assets, the Metropoles in 
London and Birmingham.
Christie + Co was instructed to market 
two of the largest and most prominent 
hotel properties in Europe; the 1,054-
bedroom Hilton London Metropole and 
the 794-bedroom Hilton Birmingham 
Metropole. The two hotels offered a 
truly exceptional investment opportunity, 
Hilton being a widely recognised brand 
and the market leader in the operation 
of large international convention hotels.
Christie + Co’s marketing included 
a series of presentations at various 
Hilton properties around the world.  
The hotels attracted considerable 
interest from a variety of investors 
– both UK and international – resulting 
in Christie + Co running a number of 
competitive bidding rounds. Bidders 
included private equity funds, UK  
and US property companies and  
many of Hilton’s current asset  
owners worldwide.
Following this considerable interest 
and the multi-stage bidding process, 
the properties were sold through 
Christie + Co to the Tonstate Group  
for £417 million, with Hilton retaining 
30-year management contracts on 
both hotels.
This successful sale and manage-
back transaction was the biggest deal 
ever brokered by Christie + Co in its 
71-year history, and was a measure 
of the scope of the work the company 
is called upon to undertake. It also 
confirmed Christie + Co’s growing 
reputation and its position as a leading 
advisor and transactional specialist in 
the corporate hotel market.
As part of the sale, the client called in 
Venners to compile full inventories of 
both hotels’ chattel assets – a huge 
task considering the scale of the two 
facilities. On the day of the completion 
itself, the inventories were meticulously 
checked and updated to meet the 
requirements of both the vendor  
and purchaser.
For the first time, the Venners 
inventory team used DVD technology, 
enabling instant updating in the final 
hours before the sale. Also on the 
day of completion, six stocktakers 
from Venners attended each hotel to 
value the stock in trade. They worked 
through each premises, adhering to  
an action plan carefully coordinated 
with colleagues at Christie + Co.
The result of the two Christie Group 
companies working together was  
a seamless service which benefited  
the client. 12 
 INCREASING PENETRATION 
OF OUR CORE SECTORS: NEW 
OPPORTUNITIES THROUGH  
NEW LETTINGS FOR PUNCH
In Cr EaSInG pEnETra TIon 
oF our Cor E SECTor S
As the business environment within  
our specialist sectors matures, we  
see opportunities to serve a wider  
range of businesses without losing  
our sector focus.
When punch Taverns, the uK’s leading 
pub company, decided to transfer over 
700 of its best managed houses to 
the leasehold market, they turned to 
Christie + Co to handle the deals. 
The project was a first for Christie + Co 
and the response involved an innovative 
approach. Historically, pub companies 
had let their pubs without charging a 
premium but Christie + Co suggested 
doing just that – seeking a premium 
for each pub, each one reflecting 
the property’s high quality – thereby 
maximising revenue for the client.
 
Christie + Co’s marketing efforts 
were aimed at that objective and the 
properties were made available in 
three tranches. Marketing included 
a series of professionally-produced 
brochures, a number of roadshow 
promotions, various e-marketing 
campaigns, extensive advertising  
Chief Executive’s review
and special features on both the  
Punch and Christie + Co websites.
 
Existing managers at the pubs 
to be leased were encouraged to 
consider the opportunities, as were 
retailers at other Punch outlets, and 
to maximise interest Christie + Co 
used its extensive, UK-wide database 
of applicants looking to buy a pub. To 
cover the financial aspects of acquiring 
the leases, Christie Finance was also 
involved in the marketing efforts.
 
By the end of the year, Christie + Co  
had let over 300 of the pubs concerned 
with a significant number of further 
deals in the pipeline and due to 
complete early in 2007. Based on this 
successful penetration of this part  
of the pub market, Christie + Co is now 
working with many other pub chains  
on the transfer of former managed 
houses into their leased estates.  13 14	 Christie	 Group	 plc Annual Report 2006
Professional business services
Christie	 Group	 has	 its	 origins	 as	 a	 	 supplier	 of	 professional	 business	 services.	 This	 division,	 comprising	 three	 businesses,	 still	 develops	 that	 role	 and	 remains	 the	 largest	 part	 of	 our	 group.
Today’s	 services	 include	 provision	 of	 business	 intelligence	 in	 our	 specialist	 sectors	 through	 Christie	 +	 Co;	 market	 leadership	 in	 finance	 and	 insurance	 from	 Christie	 Finance	 and	 Christie	 Insurance;	 and	 business	 appraisal,	 valuation	 and	 consultancy	 by	 Pinders.
Overall,	 turnover	 in	 the	 division	 in	 2006	 rose	 by	 15%	 to	 £49.7m	 and	 profit	 by	 86%	 to	 £8.4m.
	 Christie	 +	 Co
The 2006 strategy for Christie + Co, the 
oldest and largest component in the 
division, was to continue focusing 
on its specialist areas. Overall, our 
aim was to leverage the brand to its 
maximum potential and enhance positive 
perceptions of Christie + Co throughout 
our target markets. This was achieved 
through, among other things, the 
consolidation of the new brand and the 
launch of a bespoke e-marketing tool; 
part of a wider marketing strategy to 
reduce our reliance on printed material.
At the same time, we continued to make 
the most of promising opportunities 
to increase our business reach, both 
geographically and within our defined 
areas of expertise. This strategy worked. 
In 2006 there were improvements in 
performance and earnings throughout  
the business, including a 17% growth in 
like-for-like fee income. Also, in the UK  
for example, we saw a substantial increase 
in profits over the previous year and the 
number of agency inspections rose  
by 1,500. 
Such success was due to creativity and 
hard work, helped by market conditions 
that were decidedly in our favour. This 
situation is likely to continue, thanks to 
the growing trend for existing and future 
clients to seek the sort of specialist advice 
and services for which we are well-known; 
for example, investment advice.
From our operations in the UK and 
continental Europe, we are increasingly 
involved in global markets. Continued 
expansion, including the opening of our 
Marseilles and Dusseldorf offices, has 
helped to enhance our standing as a 
business adviser to clients beyond the 
confines of Europe. 
Private equity is growing in importance 
throughout our specialist markets, and 
membership of the British Venture Capital 
Association provides us with valuable links 
to this industry.
In a year of overall success, we negotiated 
the sale of the London and Birmingham 
Metropole hotels on behalf of Hilton Hotel 
Corporation, and we successfully launched 
the on-going instruction from Punch to 
convert 720 managed pubs throughout the 
UK to leases with premiums. (See the case 
studies on pages 10 to 13.)
Other highlights included:
•  The valuation of Paragon Healthcare in 
advance of HgCapital’s acquisition of the 
business for £322 million.
•  The sale of Oakley Court in Windsor off 
an asking price of £50 million, on behalf 
of Queens Moat Houses.
•  Valuation of more than 1,500 pubs 
for The Wolverhampton & Dudley 
Breweries.
•  The sale of 11 Holiday Inn hotels on 
behalf of LRG Acquisition.
Looking ahead, we will focus on improving 
our core retail agency activities as well 
as raising the game in delivering local 
valuation services. We will also concentrate 
on enhanced activities in our corporate 
markets, and further develop our  
European operations.
(£’000)  2006 2005
Operating	 profit	 8,386	 4,519
Chris	 Day,	 MD Christie + Co and 
Christie Group director
On	 behalf	 of	 BIL	 Gaming,	 a	 wholly	 owned	 subsidiary	 of	 BIL	 International, Christie + Co undertook 
a fully coordinated national acquisition 
exercise to deliver multiple sites  
for BIL to pursue 1968 Gaming Act 
Certificate of Consent and Casino 
Licence applications. This exercise 
followed BIL ’s £31 million acquisition 
of the famous Clermont Club in 
Berkeley Square, London.
Acting	 on	 behalf	 of	 Acorn	 International	 Hotels, 
Christie + Co sold a portfolio of 10 hotels in the 
Balearic Islands. The 2, 3 and 4-Star properties 
had a total of 2,834 beds and were acquired by 
Hoteles Globales. The hotels were sold in record 
time – just five months after their introduction to 
the market – and the sale was one of the highest 
profile deals in Spain in 2006.
Divisional review Christie	 Group	 plc Annual Report 2006 15
Christie	 Finance	 and	 Christie	 Insurance
We embarked on a major re-branding 
programme in 2006, which will result in the 
emergence of four new trading names in 
2007: Christie Finance, Christie Corporate 
Finance, Christie Insurance and Christie 
Corporate Insurance. The intention is that 
the two new corporate brands will focus on 
further establishing the Christie name as a 
leading provider of financial services in our 
corporate markets.
Christie Insurance saw a continuation 
of the ‘soft’ insurance market that has 
prevailed since 2004. A market in this 
state can be either a cause for concern or 
an opportunity. In 2006, we opted for the 
positive perception and worked to increase 
our market share. As a result, when the 
market hardens and premiums rise, we 
will be well-placed to benefit.
Christie Finance continued to expand 
during the year, partly as a result of a 
re-structuring. Re-aligning the business 
more closely with Christie + Co took 
further advantage of the two companies’ 
synergies, whilst retaining Christie Finance’s 
independence in the finance market.  
In line with the resulting heightened activity, 
there was a significant increase in the 
number of business mortgage personnel 
appointments throughout our regions.
Pinders
The star performer in our appraisal, 
valuation and consultancy business was 
the retail sector. Retail instructions on an 
increasingly varied range of businesses 
were up by more than 30% over the 
previous year, exceeding 2006 forecasts. 
This increased activity occurred not only 
in our more traditional markets, but also 
in niche markets that benefited from our 
diversity of expertise and involvement.  
The level of weekly instructions fluctuated 
in our other sectors, due to a combination 
of increased competition and fewer 
quality businesses coming to the market. 
However, lenders remained committed to 
these business sectors and, with continued 
demand from purchasers, values 
continued to rise.
Overall, lenders continued to be reticent 
about funding leasehold going concerns, 
preferring to concentrate more on freehold 
businesses. This had a particular impact 
on the number of leisure sector appraisals 
we undertook in 2006.
The project management part of our 
business built up a strong pipeline of 
appointments during the year. Typically,  
this involved a degree of high-level 
strategic advice that yielded significant  
fees and raised our profile. There was  
A	 Pinders	 report	 assessed	 (for	 lending	 purposes)	 the	 proposed	 development	 of	 a	 holiday	 park with 91 timber lodges and a leisure  
building, public house and swimming pool. This was a landmark scheme 
with little comparable evidence. However, using Pinders’ invaluable 
database of similar businesses, knowledge of other schemes and 
information gained from contacts, a comprehensive report was produced, 
providing a breakdown of the likely gross development value of the site.
Christie	 Finance	 had	 another	 busy	 year	 with overall business levels 
moving sharply forward. Turnover 
increased by 19% year on year.  
A number of large deals were 
brokered by Christie Corporate 
Finance including two central  
London hotel deals on behalf  
of London Town Hotels where the  
gross consideration was in excess  
of £27 million.
Patrick	 Ryan,	 MD Christie Finance 
and Christie Insurance
also a particular focus on both the 
not-for-profit and public sectors, where 
our impartial specialist advice and 
professionalism is well recognised.
In building surveying, we consolidated our 
position following new staff appointments 
and we now have a sound team for 2007.
Of course, much of the work we do 
is behind the scenes and, due to the 
confidential nature of our work with 
lenders, applicants and vendors, must 
remain so. Dedication and discretion 
have been rewarded by engendering 
increasingly close relationships with a 
number of clients, which leads of course 
to repeat business and word-of-mouth 
recommendations.
Lender panel positions were maintained 
and increased in a number of cases during 
the year, with new entrants to the market 
anticipated in 2007.
Looking to 2007, we foresee an increasing 
focus on niche and specialist markets  
such as dental practices, clinics, health 
centres, supported living units and 
veterinary practices. There will also be 
greater emphasis on work at the higher  
end of our markets, producing 
correspondingly higher fees.
Mark	 Ellis,	 MD Pinders Belgian	 ladies’	 fashion	 manufacturer	 and	 retailer,	 	 Mer	 du	 Nord,	 uses	 VCSTIMELESS	 and	 Orridge to optimise its retail 
activities. In-store stocktaking is 
outsourced to Orridge who 
complete two stocktakes a year, 
counting more than 100,000  
items. Orridge provides an 
electronic file which is uploaded 
directly into Colombus Ret@il,  
which Mer du Nord uses to  
manage its retail operations  
from purchasing through to  
point of sale. 
16	 Christie	 Group	 plc Annual Report 2006
Divisional review
Software solutions
Michel	 Ramis, CEO VCSTIMELESS 
and director of the division
Divisional review
VCSTIMELESS,	 our	 provider	 of	 business	 software	 solutions,	 has	 its	 origins	 in	 the	 early	 1990s	 and	 the	 belief	 that	 electronic	 point	 of	 sale	 (EPoS)	 systems	 required	 some	 form	 of	 continued	 external	 audit	 and	 therefore	 needed	 to	 provide	 an	 interface	 to	 stock	 auditors.	 From	 its	 start	 in	 the	 hospitality	 sector,	 the	 original	 company	 soon	 expanded	 into	 leisure,	 particularly	 multiplex	 cinemas.	 Following	 Christie	 Group’s	 targeted	 acquisition	 of	 a	 specialist	 retail	 software	 company	 in	 2000,	 we	 moved	 into	 the	 rapidly	 growing	 non-food	 retail	 sector	 as	 well.	 Today,	 our	 software	 solutions	 encompass	 merchandise	 management,	 EPoS,	 CRM,	 supply	 chain	 optimisation	 and	 business	 intelligence	 applications.	 Thanks	 to	 the	 international	 nature	 of	 our	 clients,	 operations	 span	 the	 globe.
During	 the	 year,	 VCSTIMELESS’s	 revenues	 grew	 by	 10%	 to	 a	 record	 £15.1	 million.	 Software	 revenue	 increased	 by	 15%	 thanks	 to	 significant	 market	 wins,	 and	 new	 business	 represented	 52%	 of	 total	 revenue,	 compared	 with	 21%	 in	 2005.
However, despite these figures, 
VCSTIMELESS had a challenging year and 
reported losses. These were due to:
•  Late delivery of Colombus.next, which 
will be progressively available from 
2007.
•  The requirement for additional new 
Colombus.next modules in the light of 
changing customer demands.
•  Increased focus and investment on 
large retailer accounts characterised by 
long sales cycles and varying levels of 
commitment.
International	 scale
In 2006, we consolidated our position as a 
truly international company, with 72% of 
our total revenue coming from international 
operations outside the UK.
In France, where VCSTIMELESS has its 
retail origins, there was success in signing 
new, major higher-tier retail players.  
These included Veti, an apparel retailer 
with over 150 stores in France and 14 in 
Portugal (see case study on page 17) and 
Comptoir des Cotonniers, with more than 
210 stores in seven countries in Western 
Europe and Japan. 
In the UK, new customers featured the 
country’s second largest cinema chain, 
Vue. Also included was Hamleys, the 
world-famous toy retailer, which not only 
has its famous shop in London but 12 more 
at major airports and in department stores, 
with another to open soon in a shopping 
mall in Dubai (see case study on page 17).
Results in Canada were better than 
forecast, thanks in large part to the 
successful roll-out of the cinema software 
we distribute, in Cineplex, Canada’s largest 
cinema chain.
Southern Europe saw gratifying sales  
and the addition of four major retailers 
 to the customer roster in Spain and Italy.  
A particularly welcome win was Blanco,  
a fast-growing fashion retailer in the 
process of opening 30 stores every year 
across Europe. In the second half of 
2006, we also strengthened our Spanish 
and Italian sales organisations by the 
appointment of a new country manager  
in Spain and a sales manager in Italy.
Two factors guided the choice made 
by major new clients: firstly, shared 
commitment to innovation and  
VCSTIMELESS	 technology	 provides	 Guess	 with	 multi-lingual	 and	 multi-currency	 platforms to manage its complex 
inventories at its stores, head office and overseas franchises. 
All company-owned stores have an internet-based link to head 
office, which allows instant monitoring of new product lines 
and stock availability. In-depth analysis of sales data is made 
easier using Optimum, a VCSTIMELESS business intelligence 
module. This helps the client’s decision-making processes, 
especially when planning sales promotions.
(£’000)  2006 2005
Operating	 loss	 (2,400)	 (1,268) Christie	 Group	 plc Annual Report 2006 17
“ Our focus for 2007 will include 
accelerating the time to market 
of all our .next products in order 
to secure revenues from our 
existing customer base.”
international scope matching 
VCSTIMELESS’s own vision; secondly, our 
compelling new products and services  
(see case studies below).
 
New	 products;	 higher	 profile
By far the most important new product 
development in 2006 was the preparation 
for the phased launch of Colombus.next. The 
latest in the highly successful Colombus 
range of products, Colombus.next is a 
uniquely advanced supply chain optimisation, 
decision and planning solution for retailers 
using the latest Microsoft technologies and 
service-oriented architecture. By the end  
of the year, five tier-2 fashion retailers had 
already selected Colombus.next.
In addition, orders were received for our 
other new products, BeStore (EPoS) and 
Colombus BI (Business Intelligence).
In May 2006, we staged our third European 
User Conference, attracting a record 
350 delegates from Asia and Europe. 
In February, our flagship Colombus 
Enterprise won an award in Spain for the 
best retail management software solution. 
The jury recognised its best-in-class 
features as well as its innovative use on 
the Tour de France, one of the world’s 
most popular sporting events, where we 
delivered an effective mobile store system.
Strategy	 for	 success
In 2006, we began a partnership with the 
Japanese third-party service provider 
PBC to secure training, help desk, project 
management and roll-out of Colombus 
Enterprise across Japan. As a result of this 
partnership, our proven EPoS solution, 
Colombus Ret@il, is now available in 
Japanese – an option chosen by existing 
clients Anne Fontaine and Bonpoint to 
support their Asian operations. Partnered 
by Microsoft, we had the support of a 
vigorous worldwide sales organisation 
enabling us to achieve heightened 
international status and expand our scope.
On these solid foundations, and during the 
critical year ahead, our major challenges 
will include:
•  Successfully delivering an exemplary 
service to our first .next customers in 
order to accelerate both the .next market 
and the sales process.
•  Consolidating our cooperation and 
existing partnerships with third-party 
companies that influence tier-1 and 
tier-2 businesses. These organisations 
include Capgemini, BearingPoint and 
LogicaCMG.
•  Accelerating the time to market of  
all future .next products in order  
to secure revenues from our existing 
customer base.
•  Improving profitability by financing 
further product development in 
partnership with our high-value 
customers.
Exciting opportunities ahead should  
yield continued growth across all our 
regions. This growth will be based  
on sales generated by new products  
and by the strengthening of our 
international business.
As	 part	 of	 plans	 to	 open	 franchised	 ‘flagship’	 	 stores	 around	 the	 world,	 Hamleys	 needed	 an	 order	 system for its own-brand stock items.  
The famous toy retailer chose VCSTIMELESS 
solutions to manage the entire stock import and 
sales process including order generation, 
transportation, customs documentation, delivery, 
invoice matching and payment. Hamleys chose the 
VCSTIMELESS solution because of its robustness, 
ease of use and international 24/7 help desk.
Veti,	 a	 leading	 French	 fashion	 	 retailer	 with	 over	 160	 stores, 
selected	 the	 VCSTIMELESS	 retail	 management	 suite, as part of a major 
merchandising management and IT 
overhaul. Solutions included the 
flagship Colombus Enterprise 
software and the next generation 
software solutions including 
Colombus Business Intelligence and 
Colombus.next. Veti expects to 
improve efficiency and performance 
across the entire retail chain, from 
merchandise planning through to 
customer relationship management, 
in its stores.  18	 Christie	 Group	 plc Annual Report 2006
Stock & inventory services
 
 
 
 
Venners
Demand for our services in the hospitality 
sector heightened in 2006. We conducted 
some 26,000 individual stock audits, which 
involved tallying almost 5 million individual 
stock items.
True to our roots, we won a broad cross-
section of new clients in 2006. The biggest 
of these was Sodexho, the event caterers 
(see case study below). As a result, we 
provided stocktaking and other services at 
some of the most prestigious events in the 
UK’s social and sporting calendar. These 
included the Royal Horticultural Society’s 
Chelsea Flower Show, The Open, The 
Derby, the Ryder Cup and Royal Ascot.
Among the other major clients we acquired 
in 2006 were Thistle Hotels, Legacy Hotels, 
Leisure Plex, British Country Inns and New 
Legion Clubs.
Some of the support for these new clients 
was provided through our innovative 
VenPowa system, a new software package 
that assists operators in the control of their 
stock movements. The conceptualisation, 
writing and implementation of VenPowa 
took three months of intense development. 
We immediately deployed it at a number 
of clients’ venues such as Twickenham 
Stadium. 
Also in 2006, we laid the groundwork 
for considerable volumes of new or 
repeat business. We signed contracts 
with Foundation Group, International 
Currency Exchange (ICE), Legacy Hotels, 
Thwaites and Residor SAS. Looking ahead, 
negotiations are underway with several 
major chains with some already committed 
to contracts that will start in early 2007.
At a time when food hygiene has become 
an issue of increasing public concern, we 
revamped and re-launched an operational 
reporting template that encompasses 
state-of-the-art food hygiene parameters.
A year of high performance was marred 
by two receiverships (Barvest and London 
& Edinburgh Swallow Group) and also 
the closure of a protracted tribunal claim 
related to the collapse of the Unwins chain. 
Both of these hit our profits.
As part of our focus on customer service, 
we appointed a services director and 
improved our year-on-year rating based  
on customer survey results.
Trevor	 Heyburn, MD Venners and 
director of the division
A	 Venners’	 client	 operating	 a	 substantial	 portfolio of	 UK	 hotels	 asked	 how	 many	 bottles	 of	 Moët	 &	 Chandon	 champagne	 each	 hotel	 had	 in	 stock. Just 15 minutes later 
the information was sent via e-mail, 
proving that Vision 21 helps 
Venners provide a sparkling 
service.
Approached	 by	 Sodexho,	 Venners	 conceptualised,	 designed	 and	 built	 a	 new	 stocktaking	 system	 (VenPowa)	 that allowed the client 
to control stocks at its Prestige 
Event Catering locations. VenPowa 
provided the backbone of stock-
related data for a number of high-
profile events, including The 
Chelsea Flower Show, The Open, 
The Derby, the Ryder Cup and  
Royal Ascot.
Christie	 Group	 has	 been	 stocktaking	 on	 	 a	 significant	 commercial	 scale	 since	 1984,	 when	 we	 acquired	 Venners,	 a	 venerable	 family	 firm	 with	 roots	 in	 the	 19th	 Century	 and	 a	 specialist	 supplier	 to	 the	 	 licensed	 sector.	 Since	 then,	 we	 have	 expanded	 to	 become	 a	 leading	 supplier	 of	 stocktaking,	 inventory,	 control	 audit	 and	 related	 stock	 management	 services	 to	 the	 hospitality	 and	 retail	 sectors.	 More	 recently,	 our	 2002	 acquisition	 of	 Orridge,	 Europe’s	 longest-established	 stocktaking	 business,	 enabled	 us	 to	 expand	 our	 retail	 activities	 even	 further.	 These	 now	 include	 high	 street	 chains,	 warehouses,	 factories	 and	 supermarkets	 throughout	 the	 UK	 and,	 from	 our	 continental	 European	 base	 in	 Belgium,	 we	 now	 service	 customers	 in	 13	 countries.	 During	 2007,	 we	 are	 targeting	 increased	 expansion	 in	 Europe,	 responding	 to	 and	 anticipating	 the	 needs	 of	 our	 international	 retailing	 clients.	 Profit	 in	 the	 division	 was	 held	 back	 in	 2006	 because	 of	 a	 re-equipping	 in	 the	 first	 half	 and	 the	 cost	 of	 an	 on-going	 and	 significant	 TUPE	 transfer	 in	 the	 second.	 The	 effects	 of	 the	 latter	 will	 continue	 into	 2007.	 Divisional review
(£’000)  2006 2005
Operating	 profit	 555	 1,356 Christie	 Group	 plc Annual Report 2006 19
Orridge	 Throughout Europe, the retail sector 
increasingly regards stocktaking as an 
outsourced activity. As specialists in this 
area, this is good news for us. It perfectly 
places us to tap into this sizeable market 
– estimated in the UK alone to be worth 
£90 million a year. Half of that is as yet 
unexploited, particularly in certain sectors 
such as pharmacies. We are making the 
most of this situation.
In 2006, a key objective was to increase  
our penetration across the various 
business activities of our existing clients. 
For example, work for the Co-op (for which 
we now do 5,500 audits per annum) was 
originally limited to the client’s pharmacy 
operations. Now it has expanded to include 
the supermarket part of the business –  
a milestone in our determination to become 
a significant player in that sector (see  
case study below). Work for Waterstones 
also grew as a result of its purchase  
of Ottakers. 
Another way to grow revenues from 
existing clients is to increase the range 
of services we provide to them. Through 
our partnership with Ernst & Young, 
we assisted WHSmith with its delivery 
tracking. We also expanded our services  
to New Look by developing our supply  
chain offering; in particular, delivery 
checks including exports. At Woolworths 
we ensured that the accuracy of stock at  
its online distribution centre was ready for 
the Christmas rush. 
During the year, we also took advantage 
of the synergies between Christie 
Group companies. For example, we 
worked closely with VCSTIMELESS on 
a widening range of accounts including 
Louis Pion-Royal Quartz, a chain of 30 
jewellers in France, Italian lingerie retailer 
Loveable and Mer du Nord, the Belgian 
fashion retailer. The two companies also 
collaborated on retail promotion.
Other noteworthy Orridge achievements 
during 2006 included:
•  Securing Savers as a client – part of  
the AS Watson Group.
•  Rolling out 1,300 new scanners to all  
our field staff.
•  Restructuring of our IT help desk.
•  Completing the rollout of wireless  
LAN field technology.
•  Developing a technology-based 
distribution solution for B&Q and 
Somerfield.
•  Joining with Ernst & Young in a supply 
chain partnership.
•  Increasing our northern region 
management to support the additional 
work from the Co-op and Superdrug.
•  Appointing a divisional head for our 
pharmacy work, to reflect its growing 
importance as part of our business mix.
•  Re-structuring the board of directors in 
order to increase efficiency and re-align 
responsibilities.
To consolidate these achievements  
and continue to grow, we have developed 
a comprehensive strategy for 2007. 
This includes continued focus on the 
supermarket sector, heightened brand 
awareness in retail and a drive to agree 
longer-term contracts with as many of  
our customers as possible, to mutual 
benefit. Our staff training and development 
will concentrate on the skills needed to 
drive sales.
Paul	 Harding, MD Orridge
Thirteen	 months	 of	 negotiations,	 tough	 competition	 and	 a	 three-month	 trial	 in	 100	 stores	 won	 Orridge	 	 a	 long-term	 contract	 with	 the	 Co-op.	 Over 45 
employees were transferred from the original Co-op 
stocktaking team. The Orridge service replicates  
Co-op’s processes and delivers numerous benefits, 
including greater efficiency and Orridge ownership  
of equipment and support costs.
When	 Boots	 implemented	 plans	 to	 improve	 its	 in-house	 stocktaking	 system, 
the high street retailer called on Orridge. 
Using Boots’ own technology and 
processes Orridge provide the staff to 
conduct full stocktakes. Boots benefit by 
receiving efficient and independent counts 
and are able to oversee and monitor the 
counts in real time, thereby enabling their 
staff to concentrate on sales.
 
 
 
  04 05 06
1 , 1 17
4 , 4 5 2
8 , 9 4 2
04 05 06
3 . 0 0
3 . 5 0
4 . 0 0
04 05 06
1 , 1 17
4 , 4 5 2
8 , 9 4 2
04 05 06
3 . 0 0
3 . 5 0
4 . 0 0
20	 Christie	 Group	 plc Annual Report 2006
Robert	 Zenker,  
Finance Director
The	 areas	 I	 would	 like	 to	 examine	 	 in	 more	 depth	 this	 year	 are:
•	 Cash	 generation	 •	 Tax	 charge
•	 Earnings	 per	 share	 (eps)
•	 Pension	 deficit
•	 Key	 performance	 indicators	 (KPIs)	 Cash generation 
What is obviously a reality check when 
looking at a company’s profits is that  
cash generated from operations is in line 
with the business’s operating profits.  
To that end, in 2006, we generated  
£10.6 million of cash from our operations 
(2005: £6.8 million). This compares with 
an operating profit of £6.1 million (2005: 
£4.4 million). Part of the increased 
efficiency in cash generation has been 
improved control of working capital which 
has generated £3.7 million in the year 
compared with £1.5m in 2005. This has 
been due to making it an area of focus  
for all parts of the business.
In 2005 we paid £0.2 million in tax, 
principally as a result of past losses in  
our Professional Business Services’ 
European operations being offset against 
our UK tax liabilities. This year as a group 
we paid £3.0 million more, a total of 
£3.2 million. The result is that our net 
funds still increased by £4.5 million to 
£8.9 million at the year-end. This gives us 
a level of resilience as well as resources 
for expansion. 
Tax charge 
I have tabulated below the effective taxation 
rate (taxation on the face of the income 
statement as a percentage of pre-tax profit) 
and the underlying rate of tax (current 
year corporation and deferred tax as a 
percentage of pre-tax profit). 
 2006 2005 2004
Effective	 rate	 32.8%	 38.7% 37.5%
Underlying	 rate	 37.2%	 39.5% 36.3%
*The 2004 effective tax rate has been adjusted for the 
exceptional item and for tax relief on overseas losses 
amounting to £1,017,000.
As one can see, the underlying rate has 
reduced since last year. Currently, we  
have unrelieved European losses in the 
Software Solutions Division, for which  
we have not taken any credit. A reduction  
in these losses will impact our tax  
charge favourably.
Net	 funds	 (£’000) Dividends	 declared	 	 per	 share	 (pence)
Financial review
 
 
 
  Christie	 Group	 plc Annual Report 2006 21
Earnings per share (eps)
Our eps for the year at 16.90p was 57% 
up on last year (10.79p). This is due to 
a combination of higher profits and a 
reduction in the effective, not underlying, 
tax charge of 5.9% (see the tax note).
Pension deficit 
The table below shows the net UK pension 
deficit (after deducting the related deferred 
tax) for the last three years. 
 2006 2005 2004
UK	 pension	 deficit	 6,240	 6,732 7,067
Deferred	 tax	 (1,872)	 (2,020) (2,120)
Net	 UK	 pension	 deficit	 4,368	 4,712 4,947
The deficit has reduced due to a mixture 
of improved stock market performance 
and a continuation of our deficit reduction 
plan. For the group as a whole, the total 
employer pension charge as a percentage 
of wage and salaries was 2.8% (2005: 3.2%). 
Key performance indicators (KPIs)
In accordance with the enhanced Directors’ 
Report regulations we are this year 
including our main KPIs for both the group 
and the individual operating divisions. As 
a business we have a number of key aims 
that these indicators measure. 
•  Revenue growth – an important part 
of our strategy is growing the business 
which is best measured by revenue 
growth. 
•  Productivity – being in the service sector, 
employee costs are our largest single 
cost element. It is important to remain 
competitive and to continue to improve our 
productivity. This KPI looks at the employee 
cost (remuneration and benefits) required 
to produce £1,000 of revenue. In this case a 
reducing figure reflects an improvement.
•  Operating profit % – last but not least is 
profitability. This is measured as operating 
profit as a percentage of revenue.
 
Robert	 Zenker
Finance Director
	 Group	 	 PBS	 	 SS	 SIS
Revenue	 growth	 	 	 	 2006 on 2005 12.4% 14.9% 9.8% 8.8%
2005 on 2004 10.8% 16.1% 5.7% 4.1%
Productivity	 –	 staff	 costs	 per	 £1,000	 of	 revenue	 	 	 	 2006 585 493 531 710
2005 591 512 512 714 
Operating	 profit/(loss)	 as	 %	 of	 revenue	 	 	 	 2006 7.0% 16.9%  (15.9%) 2.5%
2005 5.7% 10.4%  (9.2%) 6.6%
 
 
 
  22	 Christie	 Group	 plc Annual Report 2006
Board of directors
 
 
 
 
 
 
 
 
 
 
 
Philip	 Gwyn
Chairman
Philip (62) 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 
director of a number of private companies. 
David	 Rugg
Chief	 Executive
David (54) is responsible for the day-to-day 
operation and development of the group. 
David either chairs or sits on the boards of 
Christie Group companies and has been 
with the group since 1972, having been 
managing director since 1985 and chief 
executive since 2000. 
Robert	 Zenker
Finance	 Director
Robert (54) is a chartered accountant 
and a member of the Chartered Institute 
of Taxation. He has responsibility for all 
financial and company accounting matters 
together with corporate finance matters 
and financial public relations. After 
qualifying, he joined Deloittes (now part of 
PricewaterhouseCoopers) before moving 
on to Sainsbury’s and then Virgin Group.
Chris	 Day
Executive	 Director
Chris (49) joined Christie + Co in 1985  
and, having worked in both the  
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 truly pan-European firm, which 
currently has 16 offices in the UK and nine  
international offices.  Christie	 Group	 plc Annual Report 2006 23
Peter	 Lane	 (Lord	 Lane	 of	 Horsell)
Senior	 Non-executive	 Director
Peter (82) is chairman of the Audit 
Committee and is also a member of 
both the Remuneration and Nomination 
Committees. He was senior partner of 
Binder Hamlyn accountants and has been 
chairman of a number of listed companies.
Michael	 Likierman
Non-executive	 Director
Michael (66) 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 both the 
Audit and Remuneration Committees.
Tony	 Chambers
Non-executive	 Director
Tony (63) was previously head of banking 
and director of Robert Fleming, a director 
of Save and Prosper Group and chairman 
of Gartmore High Income. He is currently 
a director of F&C UK Select Trust. Tony 
chairs the Remuneration Committee and 
is also a member of both the Audit and 
Nomination Committees. 
Pommy	 Sarwal
Non-executive	 Director
Pommy Sarwal (56) was previously with 
Deloitte & Touche where he was a partner 
in corporate finance since 2002. In addition, 
he is a member of the Ports Advisory Group 
of the DTI Trade & Investment Division, a 
non-executive director of Chatham Historic 
Dockyard and a member of the Board of 
the Port of London Authority. Pommy is a 
member of the Audit, Nomination and  
Remuneration Committees. 
Secretary
Robert	 Zenker	 FCA	 CTA	 FBHA
Registered	 office
2 Crane Court
Fleet Street
London EC4A 2BL
Stockbrokers
Charles	 Stanley
Principal	 solicitors
Royds
Auditors
Nexia	 Smith	 &	 Williamson
Principal	 bankers
Barclays
NatWest/RBS
HSBC
Registrars
Capita	 Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
HD8 0LA
Tel: +44 (0) 1484 600904
 
 
 
 
 
 
 
 
 
 
  24	 Christie	 Group	 plc Annual Report 2006
The Directors present their report and the audited financial statements for the year ended 31 December 2006.
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 three  
divisions – Professional Business Services, Software Solutions and Stock and Inventory Services. Professional Business Services 
principally covers business valuation, consultancy and agency, mortgage and insurance services, and business appraisal. Software 
Solutions covers EPoS, head office systems and supply chain management. Stock and Inventory Services covers stock audit and 
inventory preparation and valuation. 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 21 and the risks and uncertainties in the Corporate Governance report on  
page 28.
Results	 and	 Dividends	 The results for the year are set out in the consolidated income statement on page 33. The directors recommend the payment of a  
final dividend of 2.75p (2005: 2.5p) per share which, together with the interim dividend of 1.25p (2005: 1.0p) per share, makes a total  
of 4.0p (2005: 3.5p) per share totalling £983,000 (2005: £856,000) for the year. The profit for the year before tax was £6,152,000  
(2005: £4,381,000) and the profit for the financial year was £4,131,000 (2005: £2,684,000) and this amount, less dividends paid, has  
been transferred to reserves.
Directors	 The Directors of the Company in office at the date of this report, together with their biographical details, are shown on pages 22 and  
23. All these Directors served throughout the year, with the exception of Pommy Sarwal who was appointed on 3 July 2006. Philip 
Gwyn and Chris Day retire in accordance with the company’s Articles of Association. Philip Gwyn and Chris Day being eligible, offer 
themselves for re-election and Pommy Sarwal for election at the forthcoming Annual General Meeting. Directors’ interests are shown 
in the Remuneration Report. During the year under review 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 £27,000 (2005: £14,000) to charities during the year. It made no political contributions. The Group also operates  
a Give As You Earn scheme for employees.
Research	 and	 Development	 The Group continues to invest in software development, which will provide long term commercial benefits. In total £3,032,000  
(2005: £2,919,000) of costs have been incurred on research and development in the year of which £1,546,000 (2005: £1,611,000) has  
been capitalised as software development costs.
Directors’ Report for the year ended 31 December 2006 Christie	 Group	 plc Annual Report 2006 25
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 Company (Christie Group plc) had no trade payables at the year end, or the previous year end.  
The Group’s average trade payable days during the year was 30 (2005: 41).
Acquisition	 of	 Own	 Shares
During the year the Company funded the purchase of 381,000 (2005: 100,000) of its own ordinary shares, through an Employee Share 
Ownership Trust, for a consideration of £570,000 (2005: £112,000), to enable it to meet awards under its Save As You Earn Scheme and 
other share schemes. This brought the total holding of the Employee Share Ownership Trust to 616,000 shares (2005: 665,000 shares), 
which represents 2.44% (2005: 2.66%) 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 have a reasonable expectation 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 33 to 61.
Auditors	 During the year our auditors, Nexia Audit Limited changed their name to Nexia Smith & Williamson Audit Limited and now trade as 
Nexia Smith & Williamson. In accordance with Section 385 of the Companies Act 1985, 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
–  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.234ZA of the Companies Act 1985. 
This report was approved by the board on 29 March 2007.
R	 M	 Zenker
Company Secretary
2 Crane Court
Fleet Street
London EC4A 2BL Corporate Governance
26	 Christie	 Group	 plc Annual Report 2006
Corporate	 Governance
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 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 below);
–  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. Christie	 Group	 plc Annual Report 2006 27
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, finance and politics, and ensure that all matters of strategy, 
performance, progress and standards are debated thoroughly. The senior Non-executive Director is Peter Lane (Lord Lane of Horsell).
The table below shows the extent to which each of the Non-executive Directors complies with objective tests on independence:
 Pommy Tony Peter Michael 
Question Sarwal  Chambers Lane Likierman
has been an employee of the Company or Group within the last five years? No 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 No
has received or receives additional remuneration from the company apart  
from a Director’s fee, 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 No
has close family ties with any of the Company’s Directors, senior employees or advisers? No No No No
holds cross-directorships or has significant links with other Directors  
through involvement in other companies or bodies? No No No Yes
represents or is a significant shareholder? No No No No
has served on the Board for more than nine years from the date of their first election? No No Yes No
The Non-executive Directors are nevertheless 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. 
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 the Non-executive Directors, with Peter Lane 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 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. 28	 Christie	 Group	 plc Annual Report 2006
Corporate Governance
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 three divisions, for example, transactional, advisory and support. 
4. We have a spread of work which deliberately covers both corporate and private clients. 
That said, 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 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 in an era of low 
unemployment. Some of our activities, such as software development, may need to compete for operatives on an international basis. 
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 could adversely affect our markets and businesses: 
Professional Business Services 
– rises in interest rates or the expected rise thereof;
– lack of bank liquidity and more conservative lending criteria;
– increase in business insolvencies; and
– a slow down in the residential housing market, caused by the introduction of ‘HIPS’ (Home Information Pack Solution). 
Software Solutions 
– late delivery of new software;
–  downturn in consumer spending which would affect retailers’ profitability. Apart from economic factors, such things as unusual 
weather patterns have been shown to have an effect on consumer spending;
– unexpected technical innovations; 
– anti competitive practices by global retail software vendors; and 
– a failure in bought-in software components. 
Stock and Inventory Services 
– changes in employee legislation, in particular the Working Time Directive; 
– increase in transport costs; and
– trends towards a cashless society.
The above list of risks is meant to highlight 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 30. All major shareholders (those with more than 3% of the issued share capital) that are 
not currently directors of the company are listed below.
Andrew Muir 3.4%
Purchase	 of	 own	 shares	 by	 the	 Company
At the previous Annual General Meeting, a special resolution was passed to authorise the Directors to purchase, in the market, the 
Company’s own shares, as permitted under Regulation 46 of the Company’s Articles of Association. This authority is expressed to 
run for the period until the Company’s next Annual General Meeting and limits total purchases to 10% of the Company’s issued share 
capital. In accordance with Stock Exchange guidelines, the price paid for any share must not exceed 105% of the average of the middle 
market price as obtained from the quotations for the ordinary shares of the Company in the Stock Exchange Daily Official List for the 
ten business days immediately preceding the day on which the ordinary shares are purchased. The Directors do not propose to exercise 
the authority unless satisfied that a purchase could be expected to result in an increase in earnings per share. Renewal of this authority 
will be proposed at the forthcoming Annual General Meeting. Christie	 Group	 plc Annual Report 2006 29
Part 1 of this report sets out the Company’s remuneration policies for the Directors for the year ended 31 December 2006. 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 audited details of the remuneration received by Directors during the year ended  
31 December 2006.
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.
–  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.
–  Benefits are primarily the provision of cars and health insurance.
–  Annual bonuses are calculated as a percentage of pre-tax profits in excess of a threshold. Bonuses are designed to reward 
achievement of budget and contribute approximately 25% of total earnings and whilst they are uncapped, excess amounts relate to 
profits which exceed initial objectives.
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 12 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’ letter  
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 holds external Non-executive directorship positions. The Chairman has no 
commitments that impact adversely on his role as Chairman.
Remuneration Report 30	 Christie	 Group	 plc Annual Report 2006
Remuneration Report 
PART	 2.	 Directors’	 Emoluments	 (audited	 information)
   2006  2005
   £’000  £’000
Fees   86 54
Salaries and benefits   826 746
Performance-related bonuses   461 145
Contributions to self-administered pension fund   21 21
   1,394 966
Highest paid Director, amounts included above:
   2006  2005 
   £’000  £’000
Salaries and benefits   333 265
Performance-related bonuses   160 45
   493 310
Defined benefit scheme:    
Accrued pension at end of year   137 130
Directors’	 pension	 entitlements
The Company contributed £21,000 (2005: £21,000) for Philip Gwyn to a self-administered pension fund. David Rugg, Robert Zenker and 
Chris Day are members of the Christie Group plc Pension & Assurance Scheme. 
Directors’	 interests
Details of the directors’ interests in the ordinary shares of the Company are set below:
  31 Mar 2007 31 Dec 2006 31 Dec 2005
Philip Gwyn  10,967,582 10,967,582 10,967,582
David Rugg  2,481,510 2,478,777 2,478,777
Chris Day  469,469 469,469 451,669
Robert Zenker  191,348 188,615 188,615
Peter Lane  40,000 40,000 40,000
Michael Likierman  341,500 341,500 341,500
Tony Chambers  43,190 43,190 43,190
Pommy Sarwal  – – –
Share	 options	 Two of the Executive Directors exercised options granted under the SAYE scheme, retaining the shares. The aggregate of these gains 
made on these exercises, calculated on the difference between the option and mid-market price on the date of option maturity, was 
£9,000 (2005: £22,000), of which £4,500 (2005: £11,000) related to the gain attributable to the highest paid Director.
During the year none of the Executive Directors received share options. 
The market price of the shares at 31 December 2006 was 260.0p (31 December 2005: 115.5p) and the range during the year was 115.5p  
to 265.0p (year to 31 December 2005: 88.0p to 121.0p). Christie Group plc Annual Report 2006 31
Company law requires the Directors to prepare financial statements for each financial period which give a true and fair view of the 
state of affairs of the Company and the Group and of the profit or loss of the Group for that period. The Directors have elected to 
prepare financial statements for the Group and the Company in accordance with IFRS and the Companies Act 1985.
International Accounting Standard 1 requires that financial statements present fairly for each financial year the Company’s financial 
position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events 
and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the 
International Accounting Standards Board’s ‘Framework for the Preparation and Presentation of Financial Statements’. In virtually 
all circumstances, a fair presentation will be achieved by compliance with all applicable International Financial Reporting Standards. 
Directors are also required to:
– Properly select and apply accounting policies;
–  Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable 
information; and
–  Provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand  
the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the 
financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the 
Companies Act 1985. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking 
reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of Directors’ Responsibilities 32 Christie Group plc Annual Report 2006
Auditors’ Report on Financial Statements
Independent auditors’ report to the shareholders of Christie Group plc
We have audited the Group and Company financial statements (the ‘financial statements’) of Christie Group plc for the year ended 
31 December 2006 which comprise the Consolidated income statement, the Consolidated and Company Statements of changes in 
shareholders’ equity, the Consolidated and Company Balance sheets, the Consolidated and Company Cash Flow Statements and  
the related notes 1 to 27. We have also audited the information in the Remuneration report that is described as being audited.  
These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. 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 
auditors’ 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 auditors
The directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and 
International Financial Reporting Standards (IFRSs) as adopted by the European Union, applied in accordance with the provisions  
of the Companies Act 1985 are set out in the Statement of directors’ responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International 
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance  
with the Companies Act 1985. We report to you whether in our opinion the information given in the Directors’ report is consistent with  
the financial statements. The information given in the Directors’ report includes that specific information presented in the Operating  
and Financial Reviews that is cross referred to from the Business Review section of the Directors’ report. We also report to you if, in our 
opinion, the company has not kept proper accounting records, if we have not received all the information and explanations we require for 
our audit, or if the information specified by law regarding directors’ remuneration and transactions with the company is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. 
This other information comprises only the Directors’ report, the unaudited part of the Remuneration Report, the Chairman’s Statement, 
the Review of Operations, the Financial Review and the Corporate Governance statement. We consider the implications for our report if 
we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not 
extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices 
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. 
It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial 
statements, and of whether the accounting policies are appropriate to the company’s circumstances, consistently applied and 
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to 
provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, 
whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation 
of information in the financial statements.
Opinion
 In our opinion:
–  the financial statements give a true and fair view, in accordance with those IFRSs as adopted by the European Union applied in 
accordance with the provisions of the Companies Act 1985, of the state of the Group’s and Company’s affairs as at 31 December 2006 
and of the profit of the Group for the year then ended; 
–  the financial statements have been properly prepared in accordance with the Companies Act 1985; and
–  the information given in the Directors’ report is consistent with the financial statements.
Nexia Smith & Williamson 25 Moorgate
Chartered Accountants London
Registered Auditors EC2R 6AY
29 March 2007
The maintenance and integrity of the Christie Group plc web site is the responsibility of the directors; the work carried out by the auditors does not involve consideration of 
these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented 
on the web site.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Christie Group plc Annual Report 2006 33
Consolidated Income Statement for the year ended 31 December 2006
   2006  2005 
  Note  £’000  £’000
Revenue  5 87,096 77,506
Employee benefit expenses  6 (50,949) (45,832)
   36,147 31,674
Depreciation and amortisation   (1,298) (1,292)
Other operating expenses   (28,770) (25,973)
Operating Profit  5 6,079 4,409 
Finance costs  7 (274) (249)
Finance income  7 347 221
Total finance credit/(costs)  7 73 (28)
Profit before tax  8 6,152 4,381
Taxation  9 (2,019) (1,694)
Profit for the year after tax   4,133 2,687
   
Attributable to:   
Equity Shareholders of the parent   4,131 2,684
Minority interest   2 3
    4,133 2,687
Earnings per share – Basic  11 16.90p 10.79p
 – Fully diluted  11 16.41p 10.69p
All the amounts derive from continuing activities. 34 Christie Group plc Annual Report 2006
 Attributable to the Equity Holders of the Company
  Fair value and Cumulative 
 Share other reserves translation Retained Minority Total
 capital (Note 20) reserve earnings interest equity
 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2005 495 4,484 (347) 3,002 16 7,650
Exchange difference on repayment of foreign exchange loan – – 158 (158) – –
Currency translation adjustments – – (40) – – (40)
Net income/(expenses) recognised directly in equity – – 118 (158) – (40)
Profit for the year – – – 2,684 3 2,687
Total recognised income for the year – – 118 2,526 3 2,647
Issue of share capital 5 109 – – – 114
Movement in respect of employee share scheme – 64 – – – 64
Employee share option scheme:
– value of services provided – 65 – – – 65
Dividends paid – – – (726) – (726)
Balance at 1 January 2006 500 4,722 (229) 4,802 19 9,814
Currency translation adjustments – – (153) – – (153)
Net expenses recognised directly in equity – – (153) – – (153)
Profit for the year – – – 4,131 2 4,133
Total recognised income/(expenses) for the year – – (153) 4,131 2 3,980
Issue of share capital 4 105 – – – 109
Movement in respect of employee share scheme – (523) – – – (523)
Employee share option scheme:
– value of services provided – 106 – – – 106
Purchase of minority interest – – – (15) (21) (36)
Dividends paid – – – (917) – (917)
Balance at 31 December 2006 504 4,410 (382) 8,001 – 12,533
Consolidated Statement of Changes in Shareholders ’ Equity as at 31 December 2006 Christie Group plc Annual Report 2006 35
   2006  2005 
  Note  £’000  £’000
Assets
Non-current assets
Intangible assets – Goodwill  12 4,096 3,939
Intangible assets – Other  13 3,166 2,810
Property, plant and equipment  14 2,214 2,179
Deferred tax assets  15 2,176 1,977
Available-for-sale financial assets  16a 300 300
   11,952 11,205
Current assets   
Inventories  17 332 310
Trade and other receivables  18 14,279 14,117
Current tax assets   282 –
Cash and cash equivalents   11,414 6,811
   26,307 21,238
Total assets   38,259 32,443
Equity
Capital and reserves attributable to the Company’s equity holders
Share capital  19 504 500
Fair value and other reserves  20 4,410 4,722
Cumulative translation reserve   (382) (229)
Retained earnings  20 8,001 4,802
   12,533 9,795
Minority interest   – 19
Total equity   12,533 9,814
Liabilities   
Non-current liabilities   
Borrowings  23 1,735 2,221
Retirement benefit obligations  21 6,300 6,790
   8,035 9,011
Current liabilities
Trade and other payables  22 16,954 12,748
Current tax liabilities   – 732
Borrowings  23 737 138
   17,691 13,618
Total liabilities   25,726 22,629
Total equity and liabilities   38,259 32,443
These consolidated financial statements have been approved for issue by the Board of Directors on 29 March 2007.
Consolidated Balance Sheet as at 31 December 2006 36 Christie Group plc Annual Report 2006
Consolidated Cash Flow Statement for the year ended 31 December 2006
   2006  2005 
  Note  £’000  £’000
Cash flow from operating activities
Cash generated from operations  24a 10,578 6,772
Interest paid   (274) (249)
Tax paid   (3,233) (214)
Net cash generated from operating activities   7,071 6,309
Cash flow from investing activities   
Acquisition of subsidiary (net of cash acquired)  24b – (79)
Purchase of minority interest in subsidiary   (36) –
Purchase of property, plant and equipment (PPE)   (1,407) (858)
Proceeds from sale of PPE   156 132
Intangible assets expenditure   (1,503) (1,712)
Proceeds from disposal of intangible assets  13 1,193 –
Proceeds from sale of available-for-sale asset   – 70
Increased investment in available-for-sale asset   – (200)
Interest received   347 221
Net cash used in investing activities   (1,250) (2,426)
Cash flow from financing activities
Proceeds from issue of share capital   109 114
(Payments to)/proceeds from ESOP   (523) 64
Proceeds from borrowings   – 510
Repayment of borrowings   (82) (277)
Payments of finance lease liabilities   (59) (111)
Dividends paid   (917) (726)
Net cash used in financing activities   (1,472) (426)
Net increase in net cash (including bank overdrafts)   4,349 3,457
Cash and bank overdrafts at beginning of year   6,811 3,354
Cash and bank overdrafts at end of year   11,160 6,811 Christie Group plc Annual Report 2006 37
 Attributable to the Equity Holders of the Company
    Fair value and 
   Share other reserves Retained Total
   capital (Note 20) earnings equity
   £’000 £’000 £’000 £’000
Balance at 1 January 2005 495 4,535 7,817 12,847
Profit for the year – – 2,417 2,417
Total recognised income for the year – – 2,417 2,417
Issue of share capital 5 109 – 114
Movement in respect of employee share scheme – 64 – 64
Dividends paid – – (726) (726)
Balance at 1 January 2006 500 4,708 9,508 14,716
Profit for the year – – 2,275 2,275
Total recognised income for the year – – 2,275 2,275
Issue of share capital  4 105 – 109
Movement in respect of employee share scheme – (523) – (523)
Employee share options scheme – value of services provided – 1 – 1
Dividends paid – – (917) (917)
Balance at 31 December 2006 504 4,291 10,866 15,661
Company Statement of Changes in Shareholders’ Equity as at 31 December 2006 38 Christie Group plc Annual Report 2006
Company Balance Sheet as at 31 December 2006
   2006  2005 
  Note  £’000  £’000
Assets
Non-current assets
Investments in subsidiaries  16 11,250 11,250
Deferred tax assets  15 174 172
Available-for-sale financial assets  16a 300 300
Other receivables  18 6,058 –
   17,782 11,722
Current assets   
Trade and other receivables  18 3,333 7,504 
Current tax assets   1,528 –
Cash and cash equivalents   6,489 4,321
   11,350 11,825
Total assets   29,132 23,547
Equity
Capital and reserves attributable to the Company’s equity holders
Share capital  19 504 500
Fair value and other reserves  20 4,291 4,708
Retained earnings  20 10,866 9,508
Total equity   15,661 14,716
Liabilities   
Non-current liabilities   
Borrowings  23 1,600 2,000
Retirement benefit obligations  21 578 613
   2,178 2,613
Current liabilities
Trade and other payables  22 10,893 5,452 
Current tax liabilities    – 766
Borrowings   23 400 –
   11,293 6,218
Total liabilities   13,471 8,831
Total equity and liabilities   29,132 23,547
These Company financial statements have been approved for issue by the Board of Directors on 29 March 2007.
D B Rugg
Chief Executive
R M Zenker
Finance Director Christie Group plc Annual Report 2006 39
   2006  2005 
  Note  £’000  £’000
Cash flow from operating activities   
Cash used in operations  24a (582) (1,132)
Interest paid   (260) (264)
Tax (paid)/received   (1,527) 1,155
Net cash used in operating activities   (2,369) (241)
Cash flow from investing activities
Proceeds from sale of available-for-sale financial asset   – 70
Investment in available-for-sale financial asset   – (200)
Investment income from fixed asset investments   5,350 2,778
Interest received   518 439
Net cash generated from investing activities   5,868 3,087
Cash flow from financing activities   
Proceeds from issue of share capital   109 114
(Payments to)/proceeds from ESOP   (523) 64
Dividends paid   (917) (726)
Net cash used in financing activities   (1,331) (548)
Net increase in net cash   2,168 2,298
Cash at beginning of year   4,321 2,023
Cash at end of year   6,489 4,321
Company Cash Flow Statement for the year ended 31 December 2006 40	 Christie	 Group	 plc Annual Report 2006
1. GENERAL INFORMATION 
Christie Group plc is the parent undertaking of a group of companies covering a range of related activities. These fall into three divisions – Professional 
Business Services, Software Solutions and Stock and Inventory Services. Professional Business Services principally covers business valuation, 
consultancy and agency, mortgage and insurance services, and business appraisal. Software Solutions covers EPoS, head office systems and supply 
chain management. Stock and Inventory Services covers stock audit and inventory preparation and valuation.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Accounting	 policies	 for	 the	 year	 ended	 31	 December	 2006
The principal accounting policies adopted in the preparation of these financial statements are set out below.
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). These consolidated and Company financial statements have been prepared under the historical cost convention.
The financial statements have been prepared in accordance with IFRS standards and IFRIC interpretations issued and effective or issued and early 
adopted as at the time of preparing these statements (March 2007). 
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management 
to exercise judgement in the process of applying the Company’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 statements are disclosed in Note 4. 
Interpretations	 and	 amendments	 to	 published	 standards	 effective	 in	 2006
The following amendments and interpretations to standards are mandatory for the Group’s accounting periods beginning on or after 1 January 2006.
–  IAS 19 (Amendment), Employee Benefits (effective from 1 January 2006). This amendment  introduced the option of an alternative recognition 
approach for actuarial gains and losses. It also imposed additional recognition requirements for multi-employer plans where insufficient 
information is available to apply defined benefit accounting. It also added new disclosure requirements. As the Group has not changed the 
accounting policy adopted for recognition of actuarial gains and losses the adoption of this amendment has only impacted the format and extent  
of disclosures presented in the statements. 
It is anticipated that mandatory new standards or interpretations, effective for accounting periods beginning on or after 1 January 2006, not covered 
specifically above will 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’s accounting 
periods beginning on or after 1 January 2007 or later periods but which the group has not early adopted, are as follows:
–  IFRIC 8, Scope of IFRS 2 (effective for accounting periods beginning on or after 1 May 2006). This interpretation requires consideration of 
transactions involving the issuance of equity instruments, where the identifiable consideration received is less than the fair value of the equity 
instruments issued to establish whether or not they fall within the scope of IFRS 2. The Group will apply IFRIC 8 from 1 January 2007, but it is not 
expected to have any impact on the Group’s financial statements.
–  IFRIC 10, Interim Financial Reporting and Impairment (effective for accounting periods beginning on or after 1 November 2006). IFRIC 10 prohibits 
the impairment losses recognised in an interim period on goodwill, investments in equity instruments and investments in financial assets carried 
at cost to be reversed at a subsequent balance sheet date. The Group will apply IFRIC 10 from 1 January 2007, but it is not expected to have any 
impact on the Group’s financial statements.
–  IFRIC 11, Group and Treasury Share Transactions (effective for accounting periods beginning on or after 1 March 2007). The interpretation provides 
guidance on whether share-based transactions involving treasury shares or involving group entities (for instance, options over a parent’s shares) 
should be accounted for as equity-settled or cash-settled share-based payment transactions. Management is currently assessing the impact of 
IFRIC 11 on the Group’s operations.
–  IFRS 7, Financial instruments: Disclosures, and the complementary Amendment to IAS 1, Presentation of Financial Statements – Capital 
Disclosures (effective for accounting periods beginning on or after 1 January 2007). IFRS 7 introduces new disclosures relating to financial 
instruments. This standard does not have any  impact on the classification and valuation of the Group’s financial instruments. 
–  IFRS 8, Operating Segments (effective for accounting periods on or after 1 January 2009). IFRS 8 proposes that entities adopt ‘the management 
approach’ to reporting the financial performance of its operating segments. Management is currently assessing the impact of IFRS 8 on the format 
and extent of disclosures presented in the financial statements.
It is anticipated that new standards or interpretations, currently in issue at the time of preparing these financial statements (March 2007), not covered 
specifically above will have no impact on the Group’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 2006. The results of businesses acquired or disposed of are included from 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.
Notes to the Consolidated Financial Statements Christie	 Group	 plc Annual Report 2006 41
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 pounds sterling, which is the Company’s 
functional and presentation currency. 
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 income statement.
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 balance sheet presented are translated at the closing rate at the date of that balance sheet;
b) income and expenses for each income statement 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, and of borrowings, are taken to 
shareholders’ equity. When a foreign operation is sold, such exchange differences are recognised in the income statement 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 to be 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 on an accruals basis when the insurance policy commences.
Software	 solutions
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	 and	 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
In accordance with the Group’s risks and returns, the definition of segments for primary and secondary segment reporting reflects the internal 
management reporting structure. A business segment is a group of assets and operations engaged in providing products or services that are subject 
to risks and returns that are different from those of other business segments. Segment expenses consist of directly attributable costs and other costs, 
which are allocated based on relevant criteria.
A geographical segment is engaged in providing products or services within a particular economic environment that are subject to risks and returns 
that are different from those of components operating in other economic environments. 42	 Christie	 Group	 plc Annual Report 2006
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 life, 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. 
Research and development
Software development is capitalised at cost when the following criteria are demonstrated:
– The technical feasibility of completing the product so that it will be available for use or sale;
– The intention to complete the product and use or sell it;
– The ability to use the completed product or sell it;
– It is probable that the completed product will generate future economic benefits;
– The availability of adequate technical, financial and other resources to complete the  development and to use or sell the completed product; and
– The ability to reliably measure the expenditure on the intangible asset during its development. 
Development costs are amortised in equal annual instalments over the expected product or system life, commencing in the year when the product 
is completed. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. All other research and 
development costs are written off in the year in which they are incurred.
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 three and ten 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 balance sheet 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 income statement. 
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 income statement 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 income statement 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. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable 
cash flows (cash generating units).
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 are post-tax and 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.
Notes to the Consolidated Financial Statements Christie	 Group	 plc Annual Report 2006 43
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 at initial recognition and re-evaluates this designation at every reporting date.
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.
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. Investments are 
derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred 
substantially all risks and rewards of ownership. Available-for-sale financial assets and financial assets at fair value through profit or loss are 
subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest 
method. Realised and unrealised gains and losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ 
category are included in the income statement in the period in which they arise. Unrealised gains and losses arising from changes in the fair value 
of non-monetary securities classified as available-for-sale are recognised in equity. When securities classified as available-for-sale are sold or 
impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities.
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. These include the use of recent arm’s length transactions, reference to other instruments 
that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer’s specific circumstances. 
The Group assesses at each balance sheet 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. 
If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost  
and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and 
recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the 
income statement.
2.11 Inventories 
Inventory held for resale is 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, discounted at the effective interest rate. The amount of the provision is recognised in the 
income statement.
2.13 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. Cash and cash equivalents comprise cash in hand, deposits held at 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 balance sheet.
2.14 Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any 
difference between proceeds (net of transaction costs) and the redemption value is recognised in the income statement 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 balance sheet 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 balance sheet 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. 44	 Christie	 Group	 plc Annual Report 2006
Notes to the Consolidated Financial Statements
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.
2.18 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 balance sheet in respect of defined benefit pension schemes is the present value of the defined benefit obligation at the 
balance sheet 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 income statement over the employees’ expected 
average remaining working lives.
Past-service costs are recognised immediately in the income statement, 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 19a. In accordance with IFRS 2 ‘Share-based Payments’ the resulting cost is charged to the income statement 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.  
The expense is recognised when the options are exercised and proceeds received allocated between share capital and share premium.
For share options granted after 7 November 2002 and vested after 1 January 2005 the Group operates an equity-settled, share option scheme 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 balance sheet 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 income statement, and a corresponding adjustment to equity. The proceeds received net of any directly attributable transaction costs are 
credited to share capital (nominal value) and share premium when the options are exercised.
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. Christie	 Group	 plc Annual Report 2006 45
3. FINANCIAL RISK MANAGEMENT
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 
UK pound and the Euro. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments 
in foreign operations.
  Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the 
entity’s functional currency.
  The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.
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. A number of subsidiaries utilise credit insurance to mitigate credit risk.
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.
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. Overall the Group’s trading 
operations are normally cash generative. 
3.2 Fair value estimation
The nominal value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial 
liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to 
the Group for similar financial instruments.
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events 
that are believed to be reasonable under the circumstances.
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 12).
(b) Retirement benefit obligations
  The assumptions used to measure the expense and liabilities related to the Group’s two defined benefit pension plans are reviewed annually by 
professionally qualified, independent actuaries, trustees and management as appropriate. The measurement of the expense for a period requires 
judgement with respect to the following matters, among others:
 – the probable long-term rate of increase in pensionable pay;
 – the discount rate;
 – the expected return on plan assets; and
 – the estimated life expectancy of participating members.
The assumptions used by the Group, as stated in Note 21, 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. 46	 Christie	 Group	 plc Annual Report 2006
5. SEGMENT INFORMATION 
a. Primary reporting format – business segments
The Group is organised into three main business segments: Professional Business Services, Software Solutions and Stock and Inventory Services.
The segment results for the year ended 31 December 2006 are as follows:
 Professional   Stock and 
 Business Software Inventory 
 Services Solutions Services Other Group
 £’000 £’000 £’000 £’000 £’000
Continuing Operations     
Total gross segment revenue 49,739 15,053 22,337 2,777 89,906
Inter-segment revenue (33) – – (2,777) (2,810)
Revenue 49,706 15,053 22,337 – 87,096
Operating profit 8,386 (2,400) 555 (462) 6,079
Net finance credit     73
Profit before tax     6,152
Taxation     (2,019)
Profit for the year after tax    4,133
The segment results for the year ended 31 December 2005 are as follows:
 Professional   Stock and 
 Business Software Inventory 
 Services Solutions Services Other Group
 £’000 £’000 £’000 £’000 £’000
Continuing Operations 
Total gross segment revenue 43,289 13,714 20,536 2,554 80,093
Inter-segment revenue (33) – – (2,554) (2,587)
Revenue 43,256  13,714 20,536 – 77,506
Operating profit 4,519 (1,268) 1,356 (198) 4,409
Net finance costs     (28)
Profit before tax     4,381
Taxation     (1,694)
Profit for the year after tax     2,687
Other segment items included in the income statements for the years ended 31 December 2006 and 2005 are as follows:
 Professional   Stock and 
 Business Software Inventory 
 Services Solutions Services Other Group
 £’000 £’000 £’000 £’000 £’000
31 December 2006     
Depreciation and amortisation 557 333 379 29 1,298
Impairment of trade receivables 701 382 55 – 1,138
31 December 2005     
Depreciation and amortisation 673 304 269 46 1,292
Impairment of trade receivables 644 166 2 – 812
The segment assets and liabilities at 31 December 2006 and capital expenditure for the year then ended are as follows:
 Professional   Stock and 
 Business Software Inventory 
 Services Solutions Services Other Group
 £’000 £’000 £’000 £’000 £’000
Assets 10,433 11,953 5,329 8,086 35,801
Deferred tax assets      2,176
Current tax assets     282
     38,259
Liabilities 12,959 4,268 4,056 1,977 23,260
Borrowings (excluding finance leases)     2,466
     25,726
     
Capital expenditure 191 1,776 997 94 3,058
Notes to the Consolidated Financial Statements Christie	 Group	 plc Annual Report 2006 47
5. SEGMENT INFORMATION continued
The segment assets and liabilities at 31 December 2005 and capital expenditure for the year are as follows;
 Professional   Stock and 
 Business Software Inventory 
 Services Solutions Services Other Group
 £’000 £’000 £’000 £’000 £’000
Assets 12,168 9,937 4,707 3,654 30,466
Deferred tax assets     1,977
     32,443
Liabilities 10,066 3,507 4,006 2,024 19,603
Current tax liabilities     732
Borrowings (excluding finance leases)     2,294
     22,629
     
Capital expenditure 1,130 1,224 187 29 2,570
Segment assets consist primarily of property, plant and equipment, intangible assets, inventories, receivables and operating cash. They exclude  
deferred 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.
b.	 Secondary	 reporting	 format	 –	 geographical	 segments
The Group manages its business segments on a global basis. The UK is the home country of the parent. The operations are based in two main 
geographical areas. The main operations in the principal territories are as follows:
– Europe
– Rest of the World (primarily North America)
The Group’s revenue is mainly in Europe. Revenue is allocated based on the country in which the customer is located.
   2006 2005
   £’000 £’000
Revenue
Europe   86,435 77,080
Rest of the World   661 426
   87,096 77,506
  
Total segment assets  
Europe   35,666 30,169
Rest of the World   135 297
   35,801 30,466
Capital expenditure is allocated based on where the assets are located.
   2006 2005
   £’000 £’000
Capital expenditure  
Europe   3,058 2,570
   2006 2005
   £’000 £’000
Analysis of revenue by category  
Sales of goods   6,709 2,568
Revenue from services   80,387 74,938
   87,096 77,506 48	 Christie	 Group	 plc Annual Report 2006
Notes to the Consolidated Financial Statements
6. EMPLOYEE BENEFIT EXPENSES
   2006 2005
Staff costs for the Group during the year   £’000 £’000
Wages and salaries   40,657 36,588
Social security costs   6,255 5,387
Other benefits    2,485 2,335
Pension costs – defined benefit schemes (Note 21)   1,058 1,169
Pension costs – defined contribution scheme   388 288
Cost of employee share scheme   106 65
   50,949 45,832
The amounts included in employee benefit expenses in 2005 have been amended to include certain expenditure previously included in other operating 
expenses. The reclassification has no effect on operating profit.
   2006 2005
Average number of people (including executive directors) employed by the Group during the year was  Number Number
Operational   1,039 1,025
Administration and support staff   303 305
   1,342 1,330
7. FINANCE (CREDIT)/COSTS
   2006 2005
   £’000 £’000
Interest payable on bank loans and overdrafts   267 242
Other interest payable   5 –
Interest payable on finance leases   2 7
Total finance costs   274 249
Bank interest receivable   (335) (126)
Other interest receivable   (12) (95)
Total finance income   (347) (221)
Net finance (credit)/costs   (73) 28
8. PROFIT BEFORE TAX
    Group
   2006 2005
   £’000 £’000
Profit before tax is stated after charging/(crediting):  
Depreciation of property, plant and equipment  
– owned assets   1,196 1,125
– under finance leases   53 126
Amortisation of intangible fixed assets   49 41
Profit on sale of property, plant and equipment   (47) (20)
Loss on sale of intangible fixed asset   19 –
Profit on sale of current available for sale financial assets (including Company £nil (2005: £176,000))   – (176)
Operating lease charges  
– buildings    1,741 1,412
– other    1,162 752
Repairs and maintenance expenditure on property, plant and equipment   337    397
Research and non-capitalised development costs   1,486 1,308
Loss on foreign exchange (including Company £45,000 (2005: £31,000))   11 28
Inventories
– (credit) / cost of inventories recognised as an expense (included in other operating expenses)   (27) 41
– write down of inventories   8 1 Christie	 Group	 plc Annual Report 2006 49
8. PROFIT BEFORE TAX continued
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
 2006 2005 2006 2005
 £’000 £’000 £’000 £’000
Audit services    
– audit of the parent company and consolidated financial statements 21 18 21 18 
– audit of the subsidiary company financial statements 113 109 – –
Other services pursuant to legislation  13 12 5 5
Tax services 145 130 87 55
Other services not covered above 19 33 – –
In addition to the above services, the Group’s auditors acted as auditors to the Christie Group plc Pension & Assurance Scheme and the Venners 
Retirement Benefit Scheme. The appointment of auditors to the Group’s pension schemes and the fees paid in respect of those audits are agreed by the 
trustees of each scheme, who act independently from the management of the Group. The aggregate fees paid to the Group’s auditor for audit services to 
the pension schemes during the year were £9,500 (2005: £9,000).
9. TAXATION 
   2006 2005 
   £’000 £’000
Current tax  
UK Corporation tax at 30% (2005: 30%)   2,406 1,324
Foreign tax   73 57
Adjustment in respect of prior periods   (267) (37)
Total current tax   2,212 1,344
Deferred tax  
Origination and reversal of timing differences   (193) 350
Total deferred tax   (193) 350
Tax on profit on ordinary activities   2,019 1,694
The tax for the year is higher (2005: higher) than the standard rate of corporation tax in the UK (30%). The differences are explained below:
Tax on profit on ordinary activities 
   2006 2005 
   £’000 £’000
Profit on ordinary activities before tax   6,152 4,381
Profit on ordinary activities at standard rate of UK corporation tax of 30% (2005: 30%)   1,846 1,314
Effects of:  
– tax losses not yet utilised   716 236
– expenses not deductible for tax purposes   478 105
– taxable deductions   (638) –
– utilisation of tax losses and other deductions    (5) –
– adjustment to tax charge in respect of previous periods   (267) (37)
– fixed asset timing differences   62 (15)
– other timing differences   26 (259)
– rate differentional on certain tax losses   (6) –
Total current tax   2,212 1,344
10. DIVIDENDS
   2006 2005 
Group and Company   £’000 £’000
Interim  
2005 interim, paid October 2005 (1.0p)   – 245
2006 interim, paid October 2006 (1.25p)   306 –
Final  
2004 final, paid June 2005 (2.0p)   – 481
2005 final, paid June 2006 (2.5p)   611 –
   917 726
A dividend in respect of the year ended 31 December 2006 of 2.75p per share, amounting to a total dividend of £677,000, is to be proposed at the Annual 
General Meeting on 29 June 2007. These financial statements do not reflect this proposed dividend. 50	 Christie	 Group	 plc Annual Report 2006
Notes to the Consolidated Financial Statements
11. 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.
   2006 2005
Profit attributable to equity holders of the Company (£’000)   4,131 2,684
Weighted average number of ordinary shares in issue (thousands)   24,448 24,866 
Basic earnings per share (pence)   16.90 10.79
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.
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.
   2006 2005
Profit attributable to equity holders of the Company (£’000)   4,131 2,684
Weighted average number of ordinary shares in issue (thousands)   24,448 24,866
Adjustment for share options (thousands)   728 249
Weighted average number of ordinary shares for diluted earnings per share (thousands)   25,176 25,115
Diluted earnings per share (pence)   16.41 10.69 
12. INTANGIBLE ASSETS – GOODWILL
    Total 
Group    £’000
Cost 
At 1 January 2006    3,939
Acquisitions    157
At 31 December 2006    4,096
    Total 
Group    £’000
Cost 
At 1 January 2005    3,918
Acquisitions    21
At 31 December 2005    3,939
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 2006 are as follows:
  Professional   Stock and 
  Business  Software Inventory 
  Services Solutions Services 
Goodwill  £’000 £’000 £’000
UK  178 – 833
Continental Europe  – 3,085 –
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. The growth rate does not exceed the long-term average growth 
rate for the businesses in which the CGUs operate. Christie	 Group	 plc Annual Report 2006 51
13. INTANGIBLE ASSETS – OTHER
   Software 
  Software development Total 
Group  £’000 £’000 £’000
Cost   
At 1 January 2006  202 2,719 2,921
Exchange adjustments  (4) (34) (38)
Additions   105 1,546 1,651
Disposals  (36) (1,193) (1,229)
At 31 December 2006  267 3,038 3,305
Accumulated amortisation   
At 1 January 2006  111 – 111
Exchange adjustments  (4) – (4)
Charge for the year  49 – 49
Disposals   (17) – (17)
At 31 December 2006  139 – 139
Net book amount at 31 December 2006  128 3,038 3,166
The expected useful lives are as follows:
Software 3 – 10 years
Software development  5 – 10 years 
The investment in software development relates to development of products for resale in the Software Solutions division. The Software Development 
disposal reflects amounts relating to the Christie + Co operational support system, the costs of which were recovered from the third party software 
house contracted to provide the system.
   Software 
  Software development Total 
Group  £’000 £’000 £’000
Cost   
At 1 January 2005  103 1,122 1,225
Exchange adjustments  (2) (14) (16)
Additions   101 1,611 1,712
At 31 December 2005  202 2,719 2,921
Accumulated amortisation   
At 1 January 2005  72 – 72
Exchange adjustments  (2) – (2)
Charge for the year  41 – 41
At 31 December 2005  111 – 111
Net book amount at 31 December 2005  91 2,719 2,810
14. PROPERTY, PLANT AND EQUIPMENT  
     
   Fixtures,
   fittings,
  Short computer 
  leasehold equipment and  
  property motor vehicles Total 
Group  £’000 £’000 £’000
Cost    
At 1 January 2006  531 7,179 7,710
Exchange adjustments  (1) (41) (42)
Additions  – 1,407 1,407
Disposals  (158) (256) (414)
At 31 December 2006  372 8,289 8,661
Accumulated depreciation   
At 1 January 2006  348 5,183 5,531
Exchange adjustments  (1) (27) (28)
Charge for the year  64 1,185 1,249
Disposals  (155) (150) (305)
At 31 December 2006  256 6,191 6,447
Net book amount at 31 December 2006  116 2,098 2,214 52	 Christie	 Group	 plc Annual Report 2006
Notes to the Consolidated Financial Statements
14. PROPERTY, PLANT AND EQUIPMENT continued
   Fixtures,
   fittings,
  Short computer 
  leasehold equipment and  
  property motor vehicles Total 
Group  £’000 £’000 £’000
Cost    
At 1 January 2005  517 6,827 7,344
Exchange adjustments  – (22) (22)
Additions  14 844 858
Acquisitions  – 32 32
Disposals  – (502) (502)
At 31 December 2005  531 7,179 7,710
Accumulated depreciation   
At 1 January 2005  245 4,440 4,685
Exchange adjustments  – (15) (15)
Charge for the year  96 1,155 1,251
Reclassification  7 (7) –
Disposals  – (390) (390)
At 31 December 2005  348 5,183 5,531
Net book amount at 31 December 2005  183 1,996 2,179
Depreciation in the year on fixtures, fittings, computer equipment and motor vehicles includes £53,000 (2005: £126,000) on assets held under finance 
lease or hire purchase agreements which have a net book value at 31 December 2006 of £8,000 (2005: £62,000).
At 31 December 2006 and 2005 the Company held fixtures, fittings, computer equipment and motor vehicles with a cost of £9,000 and accumulated 
depreciation of £9,000. 
15. 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 p 
robable that these assets will be recovered. 
The movements in deferred tax assets and liabilities (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 
 2006 2005 2006 2005 
 £’000 £’000 £’000 £’000
Deferred tax assets/(liabilities) comprises:    
Accelerated capital allowances 201 109 2 2
Short-term timing differences 103 (152) (1) (13)
Deferred tax asset/(liability) 304 (43) 1 (11)
Deferred tax asset on pension 1,872 2,020 173 183
At 31 December 2,176 1,977 174 172
Movements in the deferred tax asset:
  Group  Company 
 2006 2005 2006 2005 
 £’000 £’000 £’000 £’000
At 1 January  1,977 2,327 172 203
Exchange adjustments 6 – – – 
Transfer from/(to) the income statement 193 (350) 2 (31)
At 31 December  2,176 1,977 174 172
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 £587,000 (2005: £307,000) in respect of losses that can be carried forward against 
future taxable income.
The forthcoming reduction in the rate of UK corporation tax to 28% (previously 30%) announced in the Budget on 21 March 2007 would reduce the 
deferred tax asset recognised at 31 December 2006 by approximately £145,000. Christie	 Group	 plc Annual Report 2006 53
16. INVESTMENTS IN SUBSIDIARIES 
 
  Shares in  Loans to 
  subsidiary  subsidiary 
  undertakings undertakings Total 
Company  £’000 £’000 £’000
Cost   
At 1 January 2006 and at 31 December 2006  5,559 6,301 11,860
Provisions   
At 1 January 2006 and at 31 December 2006  610 – 610
Net book amount at 31 December 2006  4,949 6,301 11,250
Net book amount at 31 December 2005  4,949 6,301 11,250
Subsidiary undertakings
At 31 December 2006 the principal subsidiaries were as follows:
Company  Country of incorporation  Nature of business
Christie, Owen & Davies plc (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
Pinders Professional & Consultancy Services Ltd UK  Business appraisers
RCC Business Mortgage Brokers plc (trading as Christie Finance) UK  Business mortgage brokers
RCC Insurance Brokers plc* (trading as Christie Insurance) UK  Insurance brokers
Orridge & Co Ltd UK  Stocktaking and inventory management services
Orridge SA* Belgium  Stocktaking and inventory management services
Venners plc UK  Licensed stock and inventory auditors and valuers
VcsTimeless Ltd* UK  EPoS, head office systems and merchandise control
Venners Computer Systems Corporation* Canada  EPoS, head office systems and merchandise control
Timeless SA* France  EPoS, head office systems and merchandise control
Timeless Premier SL * Spain  EPoS, head office systems and merchandise control
Timeless Italia Srl* Italy  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. During the year the Group purchased the 
remaining 10% of the Orridge SA ordinary share capital, making it a wholly owned subsidiary.
16a. AVAILABLE-FOR-SALE FINANCIAL ASSETS  
  Group  Company 
 2006 2005 2006 2005 
Non-current assets £’000 £’000 £’000 £’000
Cost
At 1 January 300 604 300 604
Additions 53 200 – 200
Disposals – (504) – (504)
At 31 December  353 300 300 300
Provisions
Charge for the year 53 – – –
At 31 December 53 – – –
Net book amount at 31 December 300 300 300 300
During the year the Group purchased 1,522,500 1p ordinary shares in Capcon Holdings plc, an AIM listed business. At 31 December 2006 the market  
value of the shares was £42,000. The investment has been provided against given the relative illiquidity of the shares.
The other available-for-sale financial assets represent an unquoted investment held at cost. The fair value of the unquoted investment at 31 December 
2006 approximates to cost.
17. INVENTORIES
    Group 
   2006 2005 
   £’000 £’000
Finished goods and goods for resale   332 310
A provision of £17,000 (2005: £21,000) is held against goods for resale to reflect the net realisable value of the inventory. 54	 Christie	 Group	 plc Annual Report 2006
Notes to the Consolidated Financial Statements
18. TRADE AND OTHER RECEIVABLES 
  Group  Company 
 2006 2005 2006 2005 
Current assets £’000 £’000 £’000 £’000
Trade receivables 11,317 10,621 – –
Less: Provision for impairment of receivables (2,387) (1,778) – –
Amounts owed by group undertakings – – 1,868 6,333
Other debtors 2,435 2,273 1,336 1,151
Prepayments and accrued income 2,914 3,001 129 20
 14,279 14,117 3,333 7,504
  Group  Company 
 2006 2005 2006 2005 
Non-current assets £’000 £’000 £’000 £’000
Amounts owed by group undertakings – – 8,458 – 
Less: Provision for impairment of amounts owed by group undertakings – – (2,400) –
 – – 6,058 –
During the year the Company renegotiated the repayment terms of loans with certain subsidiaries which has resulted in the loans being due after more 
than one year.
The fair values of trade and other receivables approximates to the cost as detailed above. 
Concentrations of credit risk with respect to trade receivables are limited due to the Group’s customer base being large and diverse in addition certain 
Group companies utilise credit insurance. Due to this, management believe there is no further credit risk provision required in excess of the normal 
provision for doubtful receivables. 
19. SHARE CAPITAL
  2006  2005 
Ordinary shares of 2p each Number £’000 Number £’000
Authorised:
At 1 January and 31 December 30,000,000 600 30,000,000 600
Allotted and fully paid:    
At 1 January 25,003,552 500 24,747,496 495
Issued during the year 212,832 4 256,056 5
At 31 December 25,216,384 504 25,003,552 500
The consideration received for the shares issued in the year was £109,000 (2005: £114,000).
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 to purchase 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 dividend on the shares held have been waived.
At 31 December 2006 the total payments by the Company to the ESOP to finance the purchase of ordinary shares was £916,000 (2005: £641,000).  
The market value at 31 December 2006 of the ordinary shares held in the ESOP was £1,601,000 (2005: £768,000). The investment in own shares 
represents 616,000 shares (2005: 665,000) with a nominal value of 2p each. Christie	 Group	 plc Annual Report 2006 55
19a. SHARE BASED PAYMENTS
 Certain employees hold options to subscribe for shares in the Company at prices ranging from 36p to 145p under share option schemes for the period 
from August 1998 to April 2006. 
The remaining options outstanding under approved schemes at 31 December are shown below:
     Number of Shares 
 2006 2005 Option exercise price Date granted Option exercise period
 – 27,000 35.70p Aug 1996 Aug 1999 – Aug 2006
 – 65,833 48.00p Dec 1997 Dec 2000 – Dec 2007
 6,000 6,000 47.50p Aug 1998 Aug 2001 – Aug 2008
 7,667 40,667 41.50p Dec 1998 Dec 2001 – Dec 2008
 15,000 15,000 81.00p Sep 1999 Sep 2002 – Sep 2009
 22,000 34,333 145.00p May 2000 May 2003 – May 2010
 6,000 21,000 81.50p Oct 2000 Oct 2003 – Oct 2010
 37,000 43,333 53.50p Apr 2001 Apr 2004 – Apr 2011
 6,000 9,000 40.00p Oct 2001 Oct 2004 – Oct 2011
 9,000 26,333 36.00p Apr 2002 Apr 2005 – Apr 2012
 25,000 25,000 45.50p Sep 2002 Sep 2005 – Sep 2012
 43,000 81,000 47.50p Apr 2003 Apr 2006 – Apr 2013
 31,000 57,000 46.50p Jun 2003 Jun 2006 – Jun 2013
 93,000 103,000 94.00p May 2004 May 2007 – May 2014
 38,000 41,000 111.50p Jun 2004 Jun 2007 – Jun 2014
 37,000 52,000 98.50p Oct 2004 Oct 2007 – Oct 2014
 168,000 175,000 100.00p Apr 2005 Apr 2008 – Apr 2015
 35,000 44,000 101.50p Oct 2005 Oct 2008 – Oct 2015
 188,000 – 130.50p Apr 2006 Apr 2009 – Apr 2016
766,667 866,499
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 119 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 45.5p to 228.5p. There were 783,000 (2005: 
814,000) remaining options outstanding under the SAYE scheme at 31 December 2006.
Share options (including SAYE schemes) were valued using the Black-Scholes option-pricing model. No performance conditions were included in the  
fair value calculations. The key assumptions used in the calculations are as follows:
  2006  2005
Share price at grant date  46.50p – 222.00p  46.50p – 111.50p 
Exercise price  46.50p – 228.50p  46.50p – 111.50p
Expected volatility  36.3% – 52.7%  36.3% – 52.7% 
Expected life (years)  3 – 5 years  3 – 5 years
Risk free rate  4.4% – 5.1%  4.4%
Dividend yield  1.6% – 2.7%  2.7%
Fair value per option  19.04p – 78.91p  19.04p – 45.63p
The expected volatility is based on historical volatility over the last 8 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:
  2006  2005 
  Weighted   Weighted 
  average   average 
 Number  exercise price Number  exercise price
Outstanding at 1 January 866,499 76.87p 977,555 63.37p
Granted 191,000 130.50p 226,000 100.29p
Forfeited/lapsed (78,000) 83.00p (81,000) 81.36p
Exercised (212,832) 51.14p (256,056) 44.59p
Outstanding at 31 December 766,667 96.75p 866,499 76.87p
Exercisable at 31 December 207,667 60.97p 313,499 59.86p 56	 Christie	 Group	 plc Annual Report 2006
Notes to the Consolidated Financial Statements
19a. SHARE BASED PAYMENTS continued
The weighted average share price for options exercised over the year was 170.70p (2005: 102.16p). The total charge for the year relating to employee  
share based payment plans was £106,000 (2005: £65,000), all of which related to equity-settled share based payment transactions. The weighted  
average remaining contractual life of share options outstanding at 31 December 2006 was 7.4 years (2005: 6.8 years). 
20. RESERVES
    Share   Fair value 
  Share Merger based Own Capital and other Retained 
  premium reserve payments shares redemption reserves earnings 
Group  £’000 £’000 £’000 £’000  £’000 £’000 £’000
At 1 January 2006  3,935 945 103 (271) 10 4,722 4,802
Share issues  105 – – – – 105 –
Movement in respect of employee  
share scheme  – – 106 (523) – (417) –
Purchase of minority interest  – – – – – – (15)
Retained profit for the year  – – – – – – 3,214
 At 31 December 2006  4,040 945 209 (794) 10 4,410 8,001
    Share   Fair value 
  Share Merger based Own Capital and other Retained 
  premium reserve payments shares redemption reserves earnings 
Group  £’000 £’000 £’000 £’000  £’000 £’000 £’000
At 1 January 2005  3,826 945 38 (335) 10 4,484 3,002
Share issues  109 – – – – 109 –
Movement in respect of employee  
share scheme  – – 65 64 – 129 –
Exchange difference on repayment of  
foreign exchange loan  – – – – – – (158)
Retained profit for the year  – – – – – – 1,958
At 31 December 2005  3,935 945 103 (271) 10 4,722 4,802
   Share    Fair value 
 Share Merger based Own Capital Other and other Retained 
 premium reserve payments shares redemption reserves reserves earnings 
Company £’000 £’000 £’000 £’000  £’000 £’000 £’000 £’000
At 1 January 2006 3,935 945 – (271) 10 89 4,708 9,508
Share issues 105 – – – – – 105 –
Movement in respect of  
employee share scheme – – 1 (523) – – (522) –
Retained profit for the year – – – – – – – 1,358
At 31 December 2006 4,040 945 1 (794) 10 89 4,291 10,866
        
       Fair value 
 Share Merger  Own Capital Other and other Retained 
 premium reserve  shares redemption reserves reserves earnings 
Company £’000 £’000  £’000  £’000 £’000 £’000 £’000
At 1 January 2005 3,826 945  (335) 10 89 4,535 7,817
Share issues 109 –  – – – 109 –
Movement in respect of  
employee share scheme – –  64 – – 64 –
Retained profit for the year – –  – – – – 1,691
At 31 December 2005 3,935 945  (271) 10 89 4,708 9,508
Share premium – The balance on the share premium reserve represents the amounts received in excess of the nominal value of the ordinary shares.
Merger reserve – The balance on the merger reserve represents the fair value of the consideration given in excess of the nominal value of the ordinary 
shares issued in an acquisition made by the issue of 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) that can be used to meet the future 
requirements of employee Save As You Earn and share option schemes.
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	 plc Annual Report 2006 57
21. RETIREMENT BENEFIT OBLIGATIONS
The amounts recognised in the balance sheet are determined as follows:
   2006 2005 
   £’000 £’000
United Kingdom   6,240 6,732
Overseas   60 58
   6,300 6,790
United Kingdom
The Group operates two defined benefit schemes, providing benefits 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 balance sheet are determined as follows:
   2006 2005 
   £’000 £’000
Present value of funded obligations   28,663 24,250 
Fair value of plan assets   (25,679) (22,054)
   2,984 2,196
Present value of unfunded obligations   3,640 6,277
Unrecognised actuarial losses   (384) (1,741)
Liability in the balance sheet   6,240 6,732
The principal actuarial assumptions used were as follows:
   2006 2005 
   % %
Discount rate   4.80 – 5.00 4.70 – 4.80
Inflation rate   3.00 2.75
Expected return on plan assets   6.20 – 6.90 6.00 – 6.25
Future salary increases   3.00 – 3.25 2.75 – 3.10
Future pension increases   3.00 3.00 – 3.60
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:
   2006 2005 
   Years Years
Male   21.7 19.8
Female   24.6 22.8
The movement in the defined benefit obligation is as follows:
   2006 2005 
   £’000 £’000
At 1 January   30,527 28,556
Interest cost   1,477 1,515
Current service cost   945 897
Benefits paid   (204) (493)
Actuarial (gains)/losses   (442) 52
At 31 December   32,303 30,527
Attributable to:  
Present value of funded obligations   28,663 24,250
Present value of unfunded obligations   3,640 6,277
   32,303 30,527 58	 Christie	 Group	 plc Annual Report 2006
Notes to the Consolidated Financial Statements
21. RETIREMENT BENEFIT OBLIGATIONS continued
The movement in the fair value of plan assets is as follows:
   2006 2005 
   £’000 £’000
At 1 January   22,054 18,325
Expected return on plan assets   1,364 1,269
Contributions   1,550 1,504
Benefits paid   (204) (493)
Actuarial gain   915 1,449
At 31 December   25,679 22,054
The amounts recognised in the income statement are as follows:
   2006 2005 
   £’000 £’000
Current service cost   (945) (897)
Interest cost   (1,477) (1,515)
Expected return on plan assets   1,364 1,269
Net actuarial loss recognised in the year   – (26)
Total included in employee benefit expenses (Note 6)   (1,058) (1,169)
The actual return on plan assets was £2,279,000 (2005: £2,718,000).
Plan assets are comprised as follows:
  2006  2005 
  Expected return  Expected return 
 £’000 % £’000 %
Equity 17,288 6.70 - 7.60 11,235 6.30 - 8.00
Debt 3,618 4.80 - 5.10 5,827 4.60 - 4.80
Other 4,773 5.30 - 5.70 4,992 4.00 - 6.30
 25,679 6.20 - 6.90 22,054 6.00 - 6.25
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 balance sheet 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 2007 are £1,580,000. 
History of experience adjustments:
  2006 2005 2004 
As at 31 December  £’000 £’000 £’000
Present value of defined obligations  32,303 30,527 28,556 
Fair value of plan assets  (25,679) (22,054) (18,325)
Deficit  6,624 8,473 10,231
Experience adjustments on plan liabilities  364 183 (1,232)
Experience adjustments on plan assets  915 1,449 52
The income statement charge of £82,000 (2005: £108,000) and balance sheet liability £578,000 (2005: £613,000) 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 2006 
contributions paid by the Company amounted to £135,000 (2005: £155,000). 
Overseas
In accordance with French law a retirement indemnity provision is held. Rights to these benefits accrue on the condition that the employee will be with  
the employer at retirement date. Christie	 Group	 plc Annual Report 2006 59
21. RETIREMENT BENEFIT OBLIGATIONS continued
The movement in the liability recognised in the balance sheet is as follows:
 
   2006 2005 
   £’000 £’000
Beginning of the year   58 50
Expenses included in employee benefit expenses   2 8
End of the year   60 58
The principal assumptions used were as follows:
   2006 2005 
   % %
Discount rate   2.50 2.50
Future salary increases   3.00 3.00
Employee turnover   12.00 12.00
Assumptions regarding future mortality experience are set based on advice from published statistics and experience with mortality table INSEE  
statistic ref: TD-TV 00-02 being used.
Expected contributions to the Overseas post retirement benefit scheme for the year ending 31 December 2007 are £65,000. 
22. TRADE AND OTHER PAYABLES 
 
  Group  Company 
 2006 2005 2006 2005 
 £’000 £’000 £’000 £’000
Trade payables 2,159 2,565 – –
Amounts owed to group undertakings – – 9,085 4,304
Other taxes and social security 4,248 3,332 897 856
Other creditors 917 898 229 139
Accruals  8,421 4,570 682 153
Deferred income 1,209 1,383 – –
 16,954 12,748 10,893 5,452
23. BORROWINGS
  Group  Company 
 2006 2005 2006 2005 
Non-current £’000 £’000 £’000 £’000
Bank and other borrowings (unsecured) 1,735 2,212 1,600 2,000
Finance lease obligations – 9 – –
 1,735 2,221 1,600 2,000
  Group  Company 
 2006 2005 2006 2005 
Current £’000 £’000 £’000 £’000
Bank and other borrowings (unsecured) 731 82 400 –
Finance lease obligations 6 56 – –
 737 138 400 –
    
Total borrowings 2,472 2,359 2,000 2,000
The Group is not subject to any contractual repricing.
The financial liabilities comprise: 
  Group  Company 
 2006 2005 2006 2005 
 £’000 £’000 £’000 £’000
Floating interest rate loans 2,212 2,294 2,000 2,000
Overdraft 45 – – –
Invoice discounting 209 – – –
Finance lease liabilities 6 65 – –
 2,472 2,359 2,000 2,000 60	 Christie	 Group	 plc Annual Report 2006
Notes to the Consolidated Financial Statements
23. BORROWINGS continued
The maturity of non-current borrowings is as follows:
  Group  Company 
 2006 2005 2006 2005 
 £’000 £’000 £’000 £’000
Bank loans repayable between one and two years 460 477 400 400
Bank loans repayable between two and five years 1,275 1,735 1,200 1,600
Obligation under finance leases:    
– between one and two years – 9 – –
 1,735 2,221 1,600 2,000
Interest on the Group’s borrowings is as follows:
– Floating interest rate loans – 1.25% to 1.37% above LIBOR;
– Invoice discounting – 1.75% above base rate; and
– Finance lease liabilities – variable.
The carrying amounts of short-term and non-current borrowings approximate to their fair value. 
24. NOTES TO THE CASH FLOW STATEMENT
a.	 Cash	 generated	 from/(used	 in)	 operations
  Group  Company 
 2006 2005 2006 2005 
 £’000 £’000 £’000 £’000
Profit for the year 4,133 2,687 2,275 2,416
Adjustments for:    
 – Taxation  2,019 1,694 (535) (49)
 – Finance (credit)/costs (73) 28 (5,608) (2,953)
 – Depreciation 1,249 1,251 – –
 – Amortisation of intangible assets 49 41 – –
 – Profit on sale of property, plant and equipment (47) (20) – –
 – Profit on sale of current available-for-sale financial assets  – (176) – (176)
 – Loss on sale of intangible assets 19 – – –
 – Foreign currency translation (105) (19) – –
 – Movement in share option charge 106 65 1 –
 – Movement in retirement benefit obligation (490) (327) (35) (47)
 – Increase in non-current other receivables – – (6,058) –
Changes in working capital (excluding the effects of  
acquisition and exchange differences on consolidation):    
 – (Increase)/decrease in inventories (22) 45 – –
 – (Increase)/decrease in trade and other receivables (318) (515) 4,170 (2,086)
  – Decrease in current available-for-sale financial assets – 504 – 504 
  – Increase in trade and other payables 4,058 1,514 5,208 1,259
Cash generated from/(used in) operations 10,578 6,772 (582) (1,132)
b.	 Acquisition	 of	 subsidiary
On 18 January 2005 the Group purchased West London Estates Limited. The cash outflow as a result of the acquisition is detailed below:
 
    2005 
    £’000
Property, plant and equipment    32
Net current assets    270
Assets acquired    302
Goodwill on acquisition    21
Consideration paid    323
Cash acquired    (244)
Net cash outflow    (79) Christie	 Group	 plc Annual Report 2006 61
25. RECONCILIATION OF MOVEMENT IN NET FUNDS 
 As at   As at 
 1 January   Non-cash 31 December 
 2006 Cash flow movements 2006 
 £’000 £’000 £’000 £’000
Cash in hand and at bank 6,811 4,603 – 11,414
Overdraft – (45) – (45)
Invoice discounting – (209) – (209)
Debt due after one year (2,212) – 477 (1,735)
Debt due within one year (82) 82 (477) (477)
Finance leases due after one year (9) 9 – –
Finance leases due within one year (56) 50 – (6)
 4,452 4,490 – 8,942
26. COMMITMENTS
a.	 Operating	 lease	 commitments
At 31 December 2006 the Group has lease agreements in respect of properties, vehicles, plant and equipment, for which the payments extend over a 
number of years.
  
  2006   2005 
  Vehicles and   Vehicles and 
 Property equipment Property equipment
 £’000 £’000 £’000 £’000
Commitments under non-cancellable operating leases due:    
Within one year 1,567 805 1,379 552
Within two to five years 4,655 932 3,914 1,431
After five years 2,225 – 3,579 –
 8,447 1,737 8,872 1,983
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.
The Group also sub-lets an element of office space in respect of certain property lease agreements. 
b.	 Capital	 commitments
The Group has contracted but not provided for capital commitments for £255,000 (2005: £298,000) of capital expenditure.
27. 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  
respect of liabilities which individual companies within the Group may suffer as a result of the resolution of these claims. 62	 Christie	 Group	 plc Annual Report 2006
Five-Year Record
The Group adopted IFRS for the first time in 2005 and in accordance with the requirements of IFRS, 2004 figures were restated. Restatement of earlier 
years is not required under IFRS and accordingly the information presented below for 2003 and 2002 in respect of the income statement is prepared 
under UK GAAP. The main adjustments that would be required to comply with IFRS (for 2003 and 2002) are the recognition of the defined benefit pension 
funds liabilities on the balance sheet in accordance with IAS 19 and the reversal of goodwill amortisation (IFRS 3).
    IFRS IFRS IFRS UK GAAP UK GAAP 
    2006 2005 2004 2003 2002 
Consolidated income statements   £’000 £’000 £’000 £’000 £’000
Revenue    87,096 77,506 69,968 62,457 46,473 
Operating profit before goodwill amortisation   6,079 4,409 3,844 3,245 2,614
Goodwill amortisation    – – – (551) (497)
Exceptional item    – – 2,455 – –
Finance credit/(costs)    73 (28) (176) (206) (164)
Profit on ordinary activities before tax   6,152 4,381 6,123 2,488 1,953
Taxation    (2,019) (1,694) (360) (1,469) (1,182)
Profit on ordinary activities after tax   4,133 2,687 5,763 1,019 771
Minority interest    (2) (3) (10) – –
Dividends paid    (917) (726) (722) (722) (625)
Retained profit for the year    3,214 1,958 5,031 297 146
      
Earnings per share      
– basic    16.90p 10.79p 23.28p 4.15p 3.06p
 – basic before exceptional items (net of tax)*   16.90p 10.79p 9.23p 4.15p 3.06p
 – basic before goodwill amortisation and exceptional items (net of tax)* 16.90p 10.79p 9.23p 6.39p 5.03p
Dividends per ordinary share (payable in respect of the year)      4.0p 3.5p 3.0p 3.0p 2.5p
*Exceptional items include credit for the prior year dual residence tax losses and the exceptional finance credit of £2,455,000 in 2004.
    2006 2005 2004 
Consolidated balance sheets    £’000 £’000 £’000
Non-current assets    11,952 11,205 10,157
Current assets    26,307 21,238 18,142
Current liabilities    (17,691) (13,618) (11,424)
    20,568 18,825 16,875
Non-current borrowings    (1,735) (2,221) (2,108)
Retirement benefit obligations   (6,300) (6,790) (7,117)
Net assets    12,533 9,814 7,650
   
Shareholders’ funds – equity interests   12,533 9,795 7,634
Minority interest    – 19 16
    12,533 9,814 7,650
Financial Calendar
Annual	 General	 Meeting
39 Victoria Street Friday 29 June 2007 at 2pm
London SW1H 0EU
Announcements
Half-year results for 2007 September 2007
Preliminary full-year results for 2007 April 2008
Final dividend 2007 June 2008
Final	 dividend	 2006
Ex-dividend 6 June 2007
Record date 8 June 2007
Paid 5 July 2007 Christie	 Group	 plc Annual Report 2006 63
Christie	 Group	 plc
39 Victoria Street
London
SW1H 0EU
Tel: +44 (0) 20 7227 0707
E-mail: executive@christiegroup.com
Web: www.christiegroup.com
Christie	 +	 Co
39 Victoria Street
London
SW1H 0EU
Tel: +44 (0) 20 7227 0700
E-mail: enquiries@christie.com
Web: www.christie.com and www.christiecorporate.com
France – Paris
25 rue d’Artois
75008 Paris
Tel: +33 (0) 1 53 96 72 72
E-mail: paris@christie.com
France – Marseilles
165 avenue du Prado
13008 Marseilles 
Tel: +33 (0) 4 91 29 12 40
E-mail: marseilles@christie.com
Germany – Berlin 
Kurfürstendamm 235
10719 Berlin
Tel: +49 (0) 30 / 20 00 96-0 
E-mail: berlin@christie.com
Germany – Dusseldorf
Königstraße 10
40212 Dusseldorf 
Tel: +49 (0) 2 11 / 54 25 68-0
E-mail: dusseldorf@christie.com
Germany – Frankfurt
Bockenheimer Landstrasse 93
60325 Frankfurt am Main
Tel: +49 (0) 69 / 90 74 57-0
E-mail: frankfurt@christie.com
Germany – Hamburg
Stadthausbrücke 7
20355 Hamburg
Tel: +49 (0) 40 / 4 68 99 01-10
E-mail: hamburg@christie.com
Germany – Munich
Platzl 2
80331 Munich
Tel: +49 (0) 89 / 2 00 00 07-0 
E-mail: munich@christie.com 
Spain – Madrid
María de Molina
37 Bis, 3ª Planta
28006 Madrid 
Tel: +34 91 299 29 92
E-mail: madrid@christie.com
Directory
Spain – Barcelona
Paseo de Gracia 11
Escalera B, 4° 3ª
08007 Barcelona
Tel: +34 93 343 6161
E-mail: barcelona@christie.com
Other	 United	 Kingdom	 offices:
Birmingham
Edgbaston House
3 Duchess Place
Hagley Road
Birmingham
B16 8NH
Tel: +44 (0) 121 456 1222
E-mail: birmingham@christie.com
Bristol
Embassy House
Queens Avenue
Clifton
Bristol
BS8 1SB
Tel: +44 (0) 117 946 8500
E-mail: bristol@christie.com
Edinburgh
5 Logie Mill
Beaverbank Office Park
Logie Green Road
Edinburgh
EH7 4HG
Tel: +44 (0) 131 557 6666
E-mail: edinburgh@christie.com
Enfield
Lough Point
2 Gladbeck Way
Enfield
EN2 7JA
Tel: +44 (0) 20 8370 3100 
E-mail: enfield@christie.com
Epsom
Oaks House
12-22 West Street
Epsom
KT18 7RG
Tel: +44 (0) 1372 731330 
E-mail: epsom@christie.com
Exeter
Kings Wharf
The Quay
Exeter
EX2 4AN
Tel: +44 (0) 1392 285600
E-mail: exeter@christie.com
Glasgow
120 Bath Street
Glasgow
G2 2EN
Tel: +44 (0) 141 352 7300
E-mail: glasgow@christie.com 64	 Christie	 Group	 plc Annual Report 2006
Ipswich
Wolsey House
16-18 Princes Street
Ipswich
IP1 1QT
Tel: +44 (0) 1473 256588
E-mail: ipswich@christie.com
Leeds
Aquis House
Greek Street
Leeds
LS1 5RU
Tel: +44 (0) 113 389 2700
E-mail: leeds@christie.com
Maidstone
Vaughan Chambers
4 Tonbridge Road
Maidstone
ME16 8RP
Tel: +44 (0) 1622 656000
E-mail: maidstone@christie.com
Manchester
Acresfield
St Ann’s Square
Manchester
M2 7HA
Tel: +44 (0) 161 833 3311
E-mail: manchester@christie.com
Milton Keynes
Chancery House
199 Silbury Boulevard
Milton Keynes
MK9 1JL
Tel: +44 (0) 1908 300950
E-mail: miltonkeynes@christie.com
Newcastle
Shakespeare House
18 Shakespeare Street
Newcastle upon Tyne
NE1 6AQ
Tel: +44 (0) 191 222 1740
E-mail: newcastle@christie.com
Nottingham
Alan House
Clumber Street
Nottingham
NG1 3ED
Tel: +44 (0) 115 948 3100
E-mail: nottingham@christie.com
Winchester
Star Lane House
Staple Gardens
Winchester
SO23 8SR
Tel: +44 (0) 1962 844455
E-mail: winchester@christie.com
Directory
Christie	 Corporate	 Finance
39 Victoria Street
London
SW1H 0EU
Tel: +44 (0) 20 7227 0769
E-mail: enquiries@christiecf.com
Web: www.christiefinance.com
Christie	 Finance	 The postal addresses are the same as 
Christie + Co in each case:
Birmingham
Tel: +44 (0) 121 452 3717
E-mail: birmingham@christiefinance.com
Bristol
Tel: +44 (0) 117 946 8509
E-mail: bristol@christiefinance.com
Edinburgh
Tel: +44 (0) 131 524 3417
E-mail: edinburgh@christiefinance.com
Enfield
Tel: +44 (0) 20 8370 3115 
E-mail: enfield@christiefinance.com
Epsom
Tel: +44 (0) 1372 731338 
E-mail: epsom@christiefinance.com
Exeter
Tel: +44 (0) 1392 285612
E-mail: exeter@christiefinance.com
Glasgow
Tel: +44 (0) 141 352 7310
E-mail: glasgow@christiefinance.com
Ipswich
Tel: +44 (0) 1473 234907
E-mail: ipswich@christiefinance.com
Leeds
Tel: +44 (0) 113 389 2717
E-mail: leeds@christiefinance.com
London
Tel: +44 (0) 20 7227 0780
E-mail: london@christiefinance.com
Maidstone
Tel: +44 (0) 1622 656014
E-mail: maidstone@christiefinance.com
Manchester
Tel: +44 (0) 161 833 6905
E-mail: manchester@christiefinance.com
Milton Keynes
Tel: +44 (0) 1908 300959
E-mail: miltonkeynes@christiefinance.com 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.
Our vision 
To continue to flourish as a 
business services and software 
group serving the needs of 
predominantly European and 
North American clients.
Our objective
To build on our substantial 
strengths and successes in 
our chosen sectors.
Our aim
To grow our business through 
product development, 
new services and appropriate 
acquisitions and strategic 
alliances – while best serving 
our customers’ needs.
Christie Group plc Annual Report 2006 65
Newcastle
Tel: +44 (0) 191 269 7006
E-mail: newcastle@christiefinance.com
Nottingham
Tel: +44 (0) 115 945 4712
E-mail: nottingham@christiefinance.com
Winchester
Tel: +44 (0) 1962 833818
E-mail: winchester@christiefinance.com
Christie Insurance
4 & 6 York Street
London
W1U 6PJ
Tel: +44 (0) 844 4124924
E-mail: enquiries@christieinsurance.com
Web: www.christieinsurance.com
Orridge
Essex House
Astra Centre
Edinburgh Way
Harlow
CM20 2BN
Tel: +44 (0) 1279 620800
E-mail: enquiries@orridge.co.uk
Web: www.orridge.co.uk
Belgium
Avenue de l’Hippodrome 60
B-1050 Brussels
Tel: +32 (0) 26 46 25 47
E-mail: brussels@orridge.be
Web: www.orridge.be
Other United Kingdom office:
Centre House
Court Parade
Aldridge
WS9 8LT
Tel: +44 (0) 1922 472000
E-mail: enquiries@orridge.co.uk
Pinders
Pinder House
249 Upper Third Street
Milton Keynes
MK9 1DS
Tel: +44 (0) 1908 350500
E-mail: info@pinders.co.uk
Web: www.pinders.co.uk and www.pinderpack.com
Other United Kingdom office:
2b Prospect Street
Caversham
Reading
RG4 8JG
Tel: +44 (0) 118 946 4000
E-mail: caversham@pinders.co.uk
VCSTIMELESS
174 quai de Jemmapes
75010 Paris
Tel: +33 (0) 1 44 52 21 21
E-mail: contact@vcstimeless.fr
Web: www.vcstimeless.fr
Italy
Via Galeazzo Alessi 8 
20123 Milano
Tel: +39 02 58115120
E-mail: info@vcstimeless.it
Web: www.vcstimeless.it
Spain/Portugal
María de Molina
37 Bis, 3ª Planta
28006 Madrid 
T: +34 91 299 28 00
E-mail: contacto@vcstimeless.es
Web: www.vcstimeless.es
United Kingdom
249 Upper Third Street
Witan Gate West
Milton Keynes
MK9 1DS
Tel: +44 (0) 1908 350550
E-mail: contact@vcstimeless.com
Web: www.vcstimeless.co.uk and www.vcstimeless.com
North America
702 - 230 Richmond Street West
Toronto
Ontario
Canada M5V 3E5
Tel: +1 416 599 8366
E-mail: enquiries@vcstimeless.ca
Web: www.vcstimeless.com
Other French office:
Pôle Hélioparc
26 av de l’Europe
34830 Clapiers
Tel: +33 (0) 4 99 62 32 74
E-mail: contact@vcstimeless.fr
Venners
Essex House
Astra Centre
Edinburgh Way
Harlow
CM20 2BN
Tel: +44 (0) 8700 607800
E-mail: enquiries@venners.co.uk
Web: www.venners.com
Designed and produced by Addison Corporate Marketing
Printed by Quadracolor
Printed on Mega Silk
The manufacturing mill is producing Zanders Mega silk and gloss
products with up to 50% recovered fibre from pre and post consumer waste 
and the remaining pulp source is totally chlorine free sourced from fully 
sustainable sources. The manufacturing mill has also been accredited with 
the internationally recognised standard ISO 14001. Christie Group plc
Annual Report 2006
Adding value
Christie Group plc
39 Victoria Street
London SW1H 0EU
United Kingdom
Tel  +44 (0) 20 7227 0707
Fax  +44 (0) 20 7227 0708
www.christiegroup.com
Christie Group plc  Annual Report 2006