Christie Group plc
Whitefriars House
6 Carmelite Street
London EC4Y 0BS
United Kingdom
T: +44 (0) 20 7227 0707
F: +44 (0) 20 7227 0708
E: executive@christiegroup.com
www.christiegroup.com
Annual Report for 2011
Orchestrating
our strategy
1 Christie Group Annual Report 2010
About us
Professional Business Services
The expertise offered by Christie+ Co, Christie Finance
and Christie Insurance covers all aspects of valuing,
buying, selling, developing, financing and insuring 
a wide variety of businesses. Its scope is complemented 
by the comprehensive appraisal and project
management services available from Pinders.
Stock & Inventory Systems & Services
Orridge and Venners are the leading specialists in stock
control and inventory management services. Orridge
specialises in all fields of retail, Venners focuses on the
hospitality sector and Vennersys provides software and
systems to the leisure and hospitality sectors.
Our sections
Contents
1 Highlights of the year
2 Chairman’s statement
4 Our strategy
6 Orchestrating our strategy
8 Chief Executive’s review
14 Cross selling
16 Divisional review
28 Financial review
29 KPIs
30 Board of directors
30 Company information
31 Directors’ report
32 Corporate governance
35 Remuneration report
37 Statement of directors’ responsibilities
38 Independent auditor’s report
39 Consolidated statement 
of comprehensive income
40 Consolidated statement of 
changes in shareholders’ equity
41 Consolidated statement of
financial position
42 Consolidated statement 
of cash flows
43 Company statement of changes 
in shareholders’ equity
44 Company statement of 
financial position
45 Company statement of cash flows
46 Notes to the consolidated
financial statements
80 Five-year record
81 Shareholder information
83 Directory
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.
Christie Group plc ANNUAL REPORT 2011 Christie Group plc
Whitefriars House
6 Carmelite Street
London EC4Y 0BS
United Kingdom
T: +44 (0) 20 7227 0707
F: +44 (0) 20 7227 0708
E: executive@christiegroup.com
www.christiegroup.com
Annual Report for 2011
Orchestrating
our strategy
1 Christie Group Annual Report 2010
About us
Professional Business Services
The expertise offered by Christie+ Co, Christie Finance
and Christie Insurance covers all aspects of valuing,
buying, selling, developing, financing and insuring 
a wide variety of businesses. Its scope is complemented 
by the comprehensive appraisal and project
management services available from Pinders.
Stock & Inventory Systems & Services
Orridge and Venners are the leading specialists in stock
control and inventory management services. Orridge
specialises in all fields of retail, Venners focuses on the
hospitality sector and Vennersys provides software and
systems to the leisure and hospitality sectors.
Our sections
Contents
1 Highlights of the year
2 Chairman’s statement
4 Our strategy
6 Orchestrating our strategy
8 Chief Executive’s review
14 Cross selling
16 Divisional review
28 Financial review
29 KPIs
30 Board of directors
30 Company information
31 Directors’ report
32 Corporate governance
35 Remuneration report
37 Statement of directors’ responsibilities
38 Independent auditor’s report
39 Consolidated statement 
of comprehensive income
40 Consolidated statement of 
changes in shareholders’ equity
41 Consolidated statement of
financial position
42 Consolidated statement 
of cash flows
43 Company statement of changes 
in shareholders’ equity
44 Company statement of 
financial position
45 Company statement of cash flows
46 Notes to the consolidated
financial statements
80 Five-year record
81 Shareholder information
83 Directory
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.
Christie Group plc ANNUAL REPORT 2011 Designed and produced by fourthquarter
The paper used in this document contains
materials sourced from responsibly
managed and sustainable commercial
forests, certified in accordance with the
FSC (Forest Stewardship Council).
Where we perform
VIENNA
UNITED KINGDOM
BENELUX
GERMANY
FRANCE
IBERIA
THE NORDIC REGION, RUSSIA 
& THE BALTIC STATES
BARCELONA
RENNES
LYON
PARIS
BERLIN
MUNICH
FRANKFURT
HELSINKI
BRUSSELS
MARSEILLE
CENTRAL & 
EASTERN EUROPE
TORONTO
CANADA
WINCHESTER
ENFIELD
EXETER
HARLOW
MILTON KEYNES 
MAIDSTONE
LONDON
BRISTOL
NOTTINGHAM
IPSWICH
BIRMINGHAM
ALDRIDGE
MANCHESTER
NEWCASTLE
UPON TYNE
LEEDS
EDINBURGH
DUBLIN
GLASGOW
Professional Business Services
Christie + Co
Christie + Co is the leading specialist 
firm providing business intelligence 
in the hospitality, leisure, care and 
retail sectors. 
Market leaders in its sectors, employing 
the largest teams of sector specialists 
in the UK providing professional agency and
advisory services.
www.christie.com
www.christiecorporate.com
Christie Finance
Christie Finance has over 30 years’
experience in financing businesses 
in the hospitality, leisure, care and 
retail sectors. 
Christie Finance prides itself on its speed 
of response to client opportunities and its
strong relationships with finance providers.
www.christiefinance.com
Christie Insurance
With over 30 years’ experience arranging
business insurance in the hospitality, leisure,
care and retail sectors, Christie Insurance
is a leading company in its markets.
Delivering and exceeding clients’
expectations in terms of the cost of their
insurance and the breath of its cover .
www.christieinsurance.com
Pinders
Pinders is the UK's leading specialist business
appraisal, valuation and consultancy company,
providing professional services to the licensed,
leisure, retail and care sectors, and also the
commercial and corporate business sectors. 
Looking at the detail of businesses to arrive
at accurate assessments of their trading
potential and value through business
analysis and surveying skills.
www.pinders.co.uk
www.pinderpack.com
Stock & Inventory Systems & Services
Venners
The leading supplier of stocktaking,
inventory, consultancy services and 
related stock management systems 
to the hospitality sector . 
The largest and longest established 
stock audit company in the hospitality
sector in the UK and growing in 
mainland Europe.
www.venners.co.uk
Orridge
Europe’s longest established stocktaking
business specialising in all fields of retail
stocktaking including high street,
warehousing and factory operations. 
Orridge prides itself on the speed with
which it supplies high-quality management
information to clients.
www.orridge.co.uk
www.orridge.eu
Vennersys
Vennersys operates in the UK and North
America and delivers turnkey EPoS and
ticketing systems to visitor attractions such
as historic houses and estates, museums,
zoos, safari parks, aquaria and cinemas.
Over 20 years’ experience delivering
purpose-designed solutions for clients’
ticketing, admissions, EPoS and food 
and beverage sales requirements.
www.vennersys.co.uk
www.vennersys.ca
Our performers
Some of our client audience
American Film Institute
Arundel Castle
Barclays
Berkeley Homes 
BHS
Blenheim Palace
Boots Opticians
Calvin Klein
Carlsberg UK
Co-operative
De Vere
Empire Theatres
Enterprise Inns
Euro Garages
Festival Cinemas
Fitness4Less
Hilton Hotels & Resorts
Hobbycraft
InterContinental Hotels
John Lewis
Kidzworld
Landmark Cinemas
LaSalle Investment
Management
Lloyds Banking Group
Marston’s
Merlin Entertainments
Methodist Homes 
for the Aged
Nuffield Health
Park Resorts 
Pets at Home 
Punch 
Royal Bank of Scotland 
Scottish & Newcastle
Pub Company 
Sodexo Prestige 
Starwood Capital Group
Swarovski
Tesco Pharmacy
The Orders of St John
Care Trust 
The Restaurant Group
Travelodge
Virgin
WH Smith
Whitbread
Wickes
Wilkinson
Woburn Abbey 
and Safari Park
Zara
DUBAI
THE MIDDLE 
EAST &
NORTH AFRICA
Offices
39 offices across the UK, Continental Europe, Canada and the Middle East.
Employees
Employing up to 1 ,200 professional and specialist staff.
Our audiences Designed and produced by fourthquarter
The paper used in this document contains
materials sourced from responsibly
managed and sustainable commercial
forests, certified in accordance with the
FSC (Forest Stewardship Council).
Where we perform
VIENNA
UNITED KINGDOM
BENELUX
GERMANY
FRANCE
IBERIA
THE NORDIC REGION, RUSSIA 
& THE BALTIC STATES
BARCELONA
RENNES
LYON
PARIS
BERLIN
MUNICH
FRANKFURT
HELSINKI
BRUSSELS
MARSEILLE
CENTRAL & 
EASTERN EUROPE
TORONTO
CANADA
WINCHESTER
ENFIELD
EXETER
HARLOW
MILTON KEYNES 
MAIDSTONE
LONDON
BRISTOL
NOTTINGHAM
IPSWICH
BIRMINGHAM
ALDRIDGE
MANCHESTER
NEWCASTLE
UPON TYNE
LEEDS
EDINBURGH
DUBLIN
GLASGOW
Professional Business Services
Christie + Co
Christie + Co is the leading specialist 
firm providing business intelligence 
in the hospitality, leisure, care and 
retail sectors. 
Market leaders in its sectors, employing 
the largest teams of sector specialists 
in the UK providing professional agency and
advisory services.
www.christie.com
www.christiecorporate.com
Christie Finance
Christie Finance has over 30 years’
experience in financing businesses 
in the hospitality, leisure, care and 
retail sectors. 
Christie Finance prides itself on its speed 
of response to client opportunities and its
strong relationships with finance providers.
www.christiefinance.com
Christie Insurance
With over 30 years’ experience arranging
business insurance in the hospitality, leisure,
care and retail sectors, Christie Insurance
is a leading company in its markets.
Delivering and exceeding clients’
expectations in terms of the cost of their
insurance and the breath of its cover .
www.christieinsurance.com
Pinders
Pinders is the UK's leading specialist business
appraisal, valuation and consultancy company,
providing professional services to the licensed,
leisure, retail and care sectors, and also the
commercial and corporate business sectors. 
Looking at the detail of businesses to arrive
at accurate assessments of their trading
potential and value through business
analysis and surveying skills.
www.pinders.co.uk
www.pinderpack.com
Stock & Inventory Systems & Services
Venners
The leading supplier of stocktaking,
inventory, consultancy services and 
related stock management systems 
to the hospitality sector . 
The largest and longest established 
stock audit company in the hospitality
sector in the UK and growing in 
mainland Europe.
www.venners.co.uk
Orridge
Europe’s longest established stocktaking
business specialising in all fields of retail
stocktaking including high street,
warehousing and factory operations. 
Orridge prides itself on the speed with
which it supplies high-quality management
information to clients.
www.orridge.co.uk
www.orridge.eu
Vennersys
Vennersys operates in the UK and North
America and delivers turnkey EPoS and
ticketing systems to visitor attractions such
as historic houses and estates, museums,
zoos, safari parks, aquaria and cinemas.
Over 20 years’ experience delivering
purpose-designed solutions for clients’
ticketing, admissions, EPoS and food 
and beverage sales requirements.
www.vennersys.co.uk
www.vennersys.ca
Our performers
Some of our client audience
American Film Institute
Arundel Castle
Barclays
Berkeley Homes 
BHS
Blenheim Palace
Boots Opticians
Calvin Klein
Carlsberg UK
Co-operative
De Vere
Empire Theatres
Enterprise Inns
Euro Garages
Festival Cinemas
Fitness4Less
Hilton Hotels & Resorts
Hobbycraft
InterContinental Hotels
John Lewis
Kidzworld
Landmark Cinemas
LaSalle Investment
Management
Lloyds Banking Group
Marston’s
Merlin Entertainments
Methodist Homes 
for the Aged
Nuffield Health
Park Resorts 
Pets at Home 
Punch 
Royal Bank of Scotland 
Scottish & Newcastle
Pub Company 
Sodexo Prestige 
Starwood Capital Group
Swarovski
Tesco Pharmacy
The Orders of St John
Care Trust 
The Restaurant Group
Travelodge
Virgin
WH Smith
Whitbread
Wickes
Wilkinson
Woburn Abbey 
and Safari Park
Zara
DUBAI
THE MIDDLE 
EAST &
NORTH AFRICA
Offices
39 offices across the UK, Continental Europe, Canada and the Middle East.
Employees
Employing up to 1 ,200 professional and specialist staff.
Our audiences REVENUE BY DIVISION
REVENUE BY SECTOR
2011 2010
Leisure
13%
46% 43%
41%
46%
Retail 41% 42%
Care
 
13%
 
15%
2011 2010
Professional
Business Services 51%
51%
54%
Stock & Inventory
Systems & Services
 
49%
49%
46%
54% 46%
15%
42%
43%
201 1 2010
201 1 2010
• Revenue increased by 9.0% to £53.3m (2010: £48.9m)
• Operating profit before exceptional items of £0.7m 
(2010: £1.0m)
• Profit before tax before exceptional items of £0.6m 
(2010: £0.9m)
• Exceptional loss of £0.4m (2010: £nil) incurred in the 
opening of a new Dubai office
• Tax charge is entirely attributable to a reduction in deferred 
tax assets with no corporation tax payable in 2012 
• Dividend proposed of 0.5p (2010: 1.0p) per share
• The current year has started well
• Strong position in chosen markets delivering 
a resilient performance
• Our international capability strengthens our reach and 
ability to complete cross-border mandates for larger clients
• Sustained investment in technology and training
• Christie + Co awarded ‘UK’s most active agent’ in the Leisure
and Hotels category by the Estates Gazette for the second 
year since its inception two years ago
Highlights of the year
Christie Group Annual Report 2011 1 We believe that our market
position is key to maximising
the opportunities presented 
by both the recovering market
on one hand and one showing
signs of distress on the other . 
Chairman’s statement
I am pleased to present these results, which despite
difficult markets in 2011, demonstrate progress in your
business. My trading update of 5th December 2011
referred to a number of transactions that had been
delayed by external factors and the subsequent effect 
on the results for the year . Despite the timing of these
specific deals, the reliability of our operations and the
depth of our expertise continue to be attractive to those
looking for professional support in difficult times, 
which puts Christie Group in a strong position in its
chosen markets.
Financial turmoil in the Eurozone and political instability
in the Middle East ultimately curtailed our profitability in
the second half of the year, albeit a healthy increase in
top line revenue was achieved across the year .
Revenue for the year was £53.3m (2010: £48.9m) an
increase of 9.0%. After exceptional items, operating
profits were £0.3m (2010: £1.0m) reflecting the
significant investment made in bringing new client
contracts on stream and opening the new office in
Dubai. Our high tax charge is a non cash item which
principally reflects the reduction in the carrying value 
of our deferred tax asset following the reduction in the
UK corporation tax rate.
The cost base rose in 2011 in line with our expectations
and our continued commitment to investing in the
business. This investment has been rewarded through
new client wins and ‘approved adviser’ panel
appointments, ensuring that we remain at the forefront
of our industry. Cash flow requirements have followed
the increased business generation and therefore show 
a reduction in cash balances.
Stock & Inventory Systems & Services (SISS) 
Tough trading conditions amplify the need for
understanding the margins within a client’s business
and maintaining tight control over stock. This remains 
a detail-oriented business where the experience of 
our loyal staff benefits clients through the incisive 
nature of the reports generated from the stock audits. 
The integrity of the process and the subsequent profit
enhancement are all the more appreciated at a time
when profits are hard to come by in the first place.
Revenue was £25.9m (2010: £22.4m) with growth seen
across all companies; Orridge, Venners and Vennersys.
SISS is now delivering management information to its
clients which directly contributes to their strategic
business planning. This degree of granular information
and added value is unique and significantly valued by
Christie Group’s clients.  New clients won in 2011
included Zara, Hobbycraft, Butlins, Tesco Pharmacy,
BHS, Cairn Hotel Group, Park Resorts, Mecca and 
Murrayfield Stadium.
Professional Business Services (PBS)
Our PBS division had a creditable 2011 despite what could
be considered a ‘year of two halves’ where, as referred to
above, the Eurozone and Middle East problems affected
UK market confidence in the second half.
Revenue for the year stood at £27.4m (2010: £26.5m).
Quality assets and deals funded by cash were transacted
with far greater ease than tired assets or those requiring
significant bank support.
New clients won in the period included Southern Cross
and von Essen Hotels (in Administration); with notable
instructions from existing clients such as Punch
2 Christie Group Annual Report 2011 Taverns, Enterprise Inns, Admiral Taverns and the
Scottish & Newcastle Pub Company.
Christie Insurance benefited from its enlarged office 
in Ipswich working alongside the London-based team,
whilst on an increasing number of occasions, Christie
Finance incorporated European Investment Banking
support for clients’ deals and successfully arranged it 
in tandem with mainstream lending facilities.
Pinders’ market is often driven by selective panel
appointments and the company scores well with its
national network and high level of professionally
qualified staff. The market witnessed some fee erosion
during the year but Pinders resisted pressure to reduce
fees in pursuit of work. Good progress was made in its
Building Services division, particularly project
management services.
Outlook
Recommendations from established clients and 
fellow professionals result from having a business of
longstanding pedigree, easily accessible local staff and 
a comprehensive web presence. These are qualities 
that are not easy for competitors to emulate.
We are pleased to announce that Christie + Co has been
awarded the accolade of ‘UK’s most active agent’ in the
Leisure and Hotels category by the Estates Gazette for
the second year in a row. This industry recognition is an
encouraging confirmation of our strength in the market.
We believe that our market position is key to maximising
the opportunities presented by both the recovering
market on one hand and one showing signs of distress
on the other . Our valuation and agency services are
central to both de-gearing and transactional activity.
The pattern of this economic downturn is familiar to us
given our experiences of the recession in the early
1990s. However, this downturn has different root causes.
From our previous experiences we have a profound
understanding of our own business, its base trading
levels, the efficiency of our infrastructure and,
importantly, the value in ensuring that we are attractive
to our extended professional network and 'business
ready'. The Group is ready for an upturn in the market
and will benefit from the opportunity when markets
open more fully.
Christie Group relies on supportive clients and the
dedication of its quality personnel. It is thanks to them
both that we hold our strong market position. I express
my gratitude to our staff on behalf of the Board for their
ongoing commitment and professionalism.
The year has started well. A brighter outlook combined
with the profitability reported for 2011 enables the Board
to recommend a final dividend of 0.5p per share (2011:
1.0p per share). If approved, the dividend will be paid 
on 2 July 2012 to those shareholders on the register on 
1 June 2012.
Philip Gwyn
3 April 2012
Orchestrating
our strategy
Christie Group Annual Report 2011 3 Strategic foundations
We follow a clear, consistent route-map. 
It is tried and tested through the business cycle.
Our strategy
4 Christie Group Annual Report 2011
Focusing rigorously 
on our core sectors 
We maintain a rigorous focus on
strengthening our capabilities
within our core sectors. This
disciplined approach aligns our
activities with clients’ interests 
and creates more opportunities 
to extend our services and 
broaden our client base.
Developing our global reach
Our divisions provide portfolios 
of interconnected services to
facilitate our clients’ business
activities in the UK, Continental
Europe and around the world. 
Our risks and opportunities are
increasingly diversified across
economies, industry sectors and
the services we offer .
Maximising our synergies
Individually, our companies acquire 
in-depth understanding in their
chosen markets. Together, they
have the resources to deliver
services and skills which are highly
complementary. They add more
value when they combine their
strengths on behalf of our clients.
Flexible approach
We aim for flexibility in the way we
meet our clients’ needs. In these
changing and challenging times, 
we consider one of our “core
competencies” to be the ability 
to flex our resources to meet the
varying levels of demand in the
marketplace. Christie Group Annual Report 2011 5
Brand 
strength and
endurance 
International
development
Financial
stability
Flexible
approach
Operational
efficiency
Focused
and clear
direction 6 Christie Group Annual Report 2011
Orchestrating our strategy
Our talents
Our audiences
We provide over 40 individual services to companies through our two
divisions. The Professional Business Services division offers a broad
portfolio of transaction-related services. The Stock & Inventory Systems 
& Services division focuses on improving operational efficiency and
limiting risk for its clients.
We value and appraise, buy, sell, finance and insure businesses. 
We have consultancy and project management capabilities. We are 
stock control and inventory management specialists. And we design 
and deliver bespoke software and support.
Our in-depth knowledge of specific markets allows us to add 
exceptional value for our clients. We devise tailored solutions for 
the retail, care and leisure sectors.
Our performers
We expand our skills, broaden our scope 
and extend our reach by organising the 
Group around the needs of our clients. Bars
Public Houses
Takeaways
Hotels
Guesthouses
Caravan Parks
Currency Bureaux
Entertainment Venues
Fitness Centres
Restaurants
Sports Centres
Cinemas
Nightclubs
Destination Resorts Holiday Parks
Serviced Accommodation
Bowling Alleys and Greens
Gaming & Betting Businesses
Event Caterers
Railways
Convenience Stores
Booksellers
Off-licences
Post Offices
Warehouses
Supply Chain Premises
Professional Practices
Forecourt Businesses
Specialist Shops
Pharmacies
Supermarkets Newsagents
Nursing Homes
Hospitals
Veterinary Practices
Close Care/Assisted Living Centres Colleges
Daycare Centres
Schools
Dental Practices
Animal Businesses Childcare Centres
Domiciliary Care
Residential Care Homes
Secure Units Doctors’ Surgeries
Visitor Attractions
Agency
Funding
Appraisal
Building Services
Health & Safety
Software & Support
Valuation
Insurance
Consultancy
Stock Audit
Inventory
Christie + Co
Pinders
Christie Finance
Christie 
Insurance
Vennersys
Venners
Orridge
Retail
Care
Leisure
Christie Group Annual Report 2011 7
A varied skill set that maximises service across the Group
Professional Business Services
Stock & Inventory Systems & Services Christie Group’s strong revenue growth demonstrates
a growing business with a sustained ability to deliver
premium levels of client service. Given the prevailing
economic climate this was a pleasing result and 
is testament to the underlying strength of our
business model.
The Christie brand stands for in-depth, informed
business intelligence. In tough times, proven expertise
is in demand, and this plays to our strengths.
A balanced business
We are a balanced, diversified organisation. Our
services add value at every stage in the lifecycle
of a business, from start-up, through day-to-day
operations, all the way to an eventual sale. We focus
on three broad sectors – retail, care and leisure –
where we have significant, in-depth knowledge.
Christie Group's portfolio of complementary
companies matches a range of business
requirements. The Group's two divisions each account
for approximately half of total revenue. Professional
Business Services focuses on assets and transactions.
Stock & Inventory Systems & Services is concerned
with operational efficiency.
Limiting exposure 
We have built a naturally resilient organisation by
spreading our exposure. We limit our risk to specific
clients and sectors, and through our broad 
geographic reach.
Leading UK and international businesses are the most
significant in value terms. The majority of our clients
are small and medium-sized enterprises (SMEs). 
For transactional business and consultancy work,
banks and administrators are increasingly important.
We are careful to avoid over-reliance on any one client.
This approach is more than merely theoretical. We turn
down unprofitable business and seek to avoid an
over-reliance on any single contract or client.
Each of our three main sectors relates to the
economic cycle differently. In leisure, the economic
climate has a marked impact on performance. There
is a link too with the retail sector, but it is less direct.
Our third major sector, care, is largely unaffected by
what happens in the wider economy.
International operations
Our international network is helping us attract larger
clients and win transnational contracts.
We build strong networks by focusing on deepening
coverage as well as extending our reach. Christie +
Co’s new Lyon office is its fourth covering France 
while the new office in Vienna extends its influence
eastwards and also links back to the German network.
Furthermore, the newly-opened Christie + Co off ice in
Dubai will attract new investors and entrepreneurs in
a region with a strong heritage in leisure and hospitality.
Orridge now coordinates activities in 18 European
countries from its central base in Belgium.
High quality clients
We gained a succession of prestige clients and
assignments during the year . High-profile wins
included stocktaking contracts for BHS and Zara.
Christie + Co handled the politically sensitive sale of
Southern Cross freeholds, and several Christie Group
companies were involved in the disposal of von Essen
Hotels’ 26 UK country house hotels for the
administrators.
Chief Executive’s review
8 Christie Group Annual Report 2011
Christie Group’s strong
revenue growth demonstrates
a growing business with 
a sustained ability to 
deliver premium levels 
of client service. Christie Group Annual Report 2011 9
Focused and 
clear direction
Complementary
Our services mirror the
evolving needs of businesses 
in our sector . We provide
professional services to meet
many of their commercial
requirements – from 
start-up through to sale.
Connected 
We invest in technology to 
stay close to customers and 
in touch with each other – 
via our international network,
online and on the move.
Cross-selling
We benefit from and build 
on each other’s strengths. 
We present customers with 
a wide range of services – 
from right across the Group.  10 Christie Group Annual Report 2011
Complementary 
capabilities enhance 
our trading resilience Stock & Inventory Systems & Services 
When margins are under pressure it focuses
managers' minds on costs. They know that rigorous
stock control can help streamline supply chains,
protect against fraud and squeeze as much value as
possible out of every single asset.
Increasingly, retailers are opting for outsourcing as
the best way to guarantee quality and objectivity. This
is good news for our highly respected stocktaking
businesses. The pipeline for our retail business at the
end of 2011 had increased significantly compared to
December 2010.
Both companies gained important new clients during
the year . Our stocktaking businesses tend to have
strong client retention rates, but incur high initial costs.
There is an acclimatisation period as we harmonise
systems and adapt to each customer's processes.
We are investing in systems and training to service
this extra demand. Venners, for example, spent £0.2m
more than budgeted on training additional
stocktakers. We are confident that these costs will be
quickly recouped.
Professional Business Services 
Transactional activity was inevitably affected by the
global economic crisis. The economic uncertainty kept
voluntary sellers away while distressed asset sales
dominated activity.
A dearth of transactions in the first half of the year
was balanced by improved fee income in the second
six months. We won accolades from industry peers.
The Estates Gazette named Christie + Co as both
Property Adviser of The Year – Leisure and the most
active agent in the leisure and hotel sector .
At the end of 2010 it had seemed probable that
property prices had plateaued. Twelve months on,
however, the picture looked very different. In
retrospect, the stabilisation in 2010 was a pause for
breath on a continued downward trajectory.
But it is important to recognise that, even at today's
values, businesses are selling at multiples that were
commonplace in the 1990s. These are not
unprecedented levels and we are confident we can
operate successfully in a low-growth environment.
In this generally subdued marketplace larger groups
featured more prominently. Some were forced to scale
down their portfolios to meet lenders' lower
loan-to-value refinancing requirements. Others
wanted to release capital to maintain and upgrade
their core facilities.
For cash buyers wishing to build asset portfolios these
were excellent conditions. We saw entrepreneurs 
who had sold their businesses at peak levels return 
to the market to acquire opportunities at substantial
discounts.
The emergence of new sources of finance was a
positive development. Many traditional lenders are
constrained by their existing loan books. Recent
arrivals in the markets have no such limitations. With
property prices approaching historically low levels, they
have the chance to build up high quality loan books.
Liquidity in the commercial debt markets has
remained an issue. However, with initiatives such as
the introduction of the Government’s loan guarantee
scheme announced in the Budget on 21 March 2012,
we are hopeful that this may start to ease.
Christie Group Annual Report 2011 11
Chief Executive’s review
Continued
As the going got tough
banks and owners 
came to us for specialist
advice. They wanted 
to reshape portfolios,
dispose of poorly
performing units, review
strategy, refinance and
restructure. 12 Christie Group Annual Report 2011
Our valuation and advisory businesses were in
demand. Our specialist-based approach to valuation
has been adopted as best practice. Our valuation
professionals are Royal Institute of Chartered
Surveyors qualified specialists. Early in the year the
RICS introduced a licensing system requiring valuation
professionals to register their specialist area of
expertise. The new system will benefit us and
improve standards for customers.
As the going got tough banks and owners came to us
for specialist advice. They wanted to reshape portfolios,
dispose of poorly performing units, review strategy,
refinance and restructure.
Our finance business helped match new lenders with
high quality borrowers. Our insurance business
maintained its high client retention rate and benefitted
from rising premiums.
Connecting with customers - and each other
These days, much of our intellectual property is vested
in technology. Our customers expect to find more
information online. The ubiquity of smartphones,
tablets and 3G connectivity has been another
game-changer . We now live in an always-online
culture. Real-time information is available everywhere,
at the touch of a button.
With many of our staff spending a lot of their time in
the field, we saw the value of mobile communications
early on. Our retail stocktakers use tablet technology
to record, report and analyse stock levels while
Christie + Co launched a mobile-friendly version of 
its website. We are also developing technologies to
make our people more productive on the move and
strengthen customer relationships. For example, 
we increasingly use more targeted marketing to
produce better results and social media to
supplement traditional communication channels.
Relocation
I am pleased to advise that the Group’s pension 
funds have acquired a dedicated new head office 
for our occupation in the City of London. We look
forward to improved efficiency through combining 
our two separate existing London offices in this
permanent home.
Looking ahead
I said last year that the economy faced setbacks 
on the road to recovery. These have come sooner
rather than later and, so far at least, have been more
significant than one might have hoped. But, having
been spared any pre-Christmas adverse weather,
activity levels in the early part of 2012 are improved
compared with those in 2011.
Whatever the prospects for the economy, Christie
Group is in a strong position. We have a manageable
cost base and are investing in both systems and
people to meet additional demand. We have a 
strong track record, a proven business model and 
a lengthening list of prestige clients. We are never
complacent, but we do share confidence in the future.
David Rugg
3 April 2012
Chief Executive’s review
Continued
Christie Group is in a 
strong position. We have 
a manageable cost base
and are investing in both
systems and people to 
meet additional demand. Connected with clients
wherever they are, 
whenever they need us 
Christie Group Annual Report 2011 13 Cross-selling
to broaden our
client relationships
Christie + Co, Christie Finance, Christie
Insurance, Pinders and Venners were all
involved in the hotel sector’s most high
profile disposal of 201 1– von Essen Hotels.
The company went into administration in 
April 2011. Christie + Co was instructed by the
administrators to dispose of 26 UK country house
hotels plus a Napoleonic island fort off the 
Welsh coast and a French chateau hotel. Market
conditions and investor appetite determined that
the portfolio would be sold off in parts rather 
than as a whole.
Being a widely recognised brand in the country
house hotel market, the von Essen Hotels 
portfolio offered a variety of excellent investment
opportunities. It generated huge interest and
demonstrated both the desire of investors for
quality assets and the fact that values were 
holding up in difficult market conditions.
To help facilitate the sale process, the administrators
instructed Pinders to undertake building surveys
across the whole portfolio, including several
properties that were either Grade I or Grade II Listed
or of special historical interest.
Pinders also coordinated mechanical and electrical
surveys on all 26 hotels, and all the reports were
delivered within very tight timescales. In addition,
valuation and business appraisal services were
provided in relation to two of the hotels.
von Essen Hotels
The Elms
14 Christie Group Annual Report 2011 The administrators called in Venners to compile 
full inventory listings of the hotels’ chattel assets 
– fixtures and fittings – a huge task considering 
the complicated nature of the hotels involved.
Also, when each hotel was sold, Venners provided
inventories of the liquor, food, supplies and
consumables at the point of exchange. Encouragingly,
up to 85% of the work undertaken by Venners has
been retained as the new business owners chose to
continue using the company’s services.
Christie Insurance gave advice on protection and
business insurance, which provided the company
with leads for the future.
Following considerable interest, by the end of 
2011, Christie + Co had sold the majority of the
hotels and some new country house hotel operators
had emerged. Most of the deals were completed 
for cash with the possibility of raising debt later 
but Christie Finance arranged funding on those 
hotels where debt financing was required to
facilitate a purchase.
One purchaser was an experienced and reputable
hotel operator but his current bank wasn ’t prepared
to expose itself any further in the hotel sector . 
In this case, Christie Finance arranged funding
through the new lender, Shawbrook Bank. Another
buyer had previously sold her hotel to von Essen
Hotels and had become its General Manager .
Christie Finance arranged finance that enabled 
her to buy the hotel back from the administrators.
Christie +Co ’s success in selling the hotels was
largely based on its excellent relationships and
contacts within the investor community. Bath Priory
Group acquired four of the hotels, Eden Hotels
Collection added two to its growing portfolio, while
Longleat Enterprises bought two of the hotels near
its estate. Also, Patron Capital Partners, in a joint
venture with Halcyon Hotels and Resorts, acquired
seven of the former von Essen Hotels assets.
The von Essen Hotels disposal was the most high
profile Christie Group has dealt with in the hotel
sector in recent years. It was a measure of the scope
and complexity of the work the Group is called upon
to undertake. It also confirmed its reputation and
position as a leading adviser and specialist service
provider in the corporate hotel market.
The result of five Christie Group companies
working together was an added value service
which benefited both the administrators and 
the purchasers.
Callow Hall Hotel
This former von Essen Hotels property
provides an excellent example of the 
value added by Christie Group companies’
complementary services. 
• Christie +  Co
handled the sale
• Venners
provided stock control 
and inventory services
• Christie Finance
arranged the senior debt 
• Christie Insurance 
gave advice on protection 
and business insurance. 
No other group in our specialist
sectors can offer such a comprehensive
range of complementary services
to business operators.
Seaham Hall Cliveden
Thornbury Castle
Left and above: A selection of some of the prestigious 
von Essen Hotels properties included in the portfolio sale.
Christie Group Annual Report 2011 15 16 Christie Group Annual Report 2010
Orridge’s in-store delivery checks to Pets at Home
provide an independent view of delivery accuracy
through bespoke management reporting. This
gives the client quick, accurate and consistent
data across every store, and helps get the 
right product in the right place at the right time.
Previous in-house delivery checks were very
time-consuming and reassigning staff from 
other duties proved both costly and disruptive.
Investing in an independent counting programme
has helped Pets at Home be more efficient in 
a difficult economic environment.
Getting your ducks in a row
There are around 300 Waterstones bookshops 
in the UK, Ireland, Amsterdam and Brussels, with
larger stores stocking up to 80,000 different titles.
Waterstones found that it wasn’t effective to use
in-house staff to count large volumes of stock in 
a concentrated timeframe, and that it was both
quicker and more efficient to outsource the work
to experienced stocktakers with the necessary
expertise. Orridge provides a reliable, responsive
and accurate stocktaking service at a time when 
it is especially important for financial reporting
and measuring shrinkage in the retail sector .
Making every word count Christie Group Annual Report 2011 17
ORRIDGE
Orridge was founded over 160 years ago to provide
independent stocktaking services to pharmacies 
and dispensaries. A century later it expanded into
hardware, confectionery and groceries. Today, it is 
a leading UK retail stocktaking company aiming to
become a market leader across Europe too. 
Our clients are feeling the full force of Europe's slowdown.
With raw material costs rising and spending still slow
on the high street, retailers’ margins are being squeezed.
In such circumstances it becomes even more important
to keep a tight rein on stock. Accurate stock control can
protect margins by optimising supply chain management,
improving inventories and combating fraud.
Many retailers are choosing to outsource stocktaking as
part of a strategy which enables them to utilise their
workforce more efficiently and their time more
effectively, while reducing costs on training and
equipment and improving stock count accuracy.
As a UK market leader in the sector with strong
international coverage, we offer a high quality,
cost-effective service. From our Continental office in
Belgium we serve 18 countries across Europe in five
languages, and promote our services through
multilingual communications online.
Orridge performed strongly in 2011, with revenue up by
15.2%. We saw once again that demand for our services
often intensifies in tough trading conditions. We conducted
an average of 135 stocktakes every working day, and
counted a total of 138 million items of clothing, 115
million books and 450 million health and beauty items.
We also gained 28 new clients, including BHS,
Hobbycraft, AllSaints, Zara and Swarovski.
In a largely commoditised price environment we know
that it is critical to stay competitive on price. We employ
technological solutions to drive down unit costs and
improve our service. We were cloud-computing
pioneers, adopting RAS-based communications early
on to connect our employees in the field. 
More recently, our new, more focused e-marketing
product has delivered excellent results. Online analytics
now help us measure campaign success and website
activity more accurately, thereby enabling our sales
team to take a more sophisticated approach to targeting
clients and following up leads. 
Key clients can use our website portal to review their
data in real time, and we are adding value with
analytical tools. For example, one of our major
customers can analyse stock history by region, store,
line of business or product item. Key indicators such as
loss, wastage, and accuracy are displayed graphically.
The application is now being trialled elsewhere.
We work closely with other companies within the Group
whenever possible. We collaborated with Christie + Co
on 29 business valuations in 2011, and we introduced
Venners to Compass Group. Orridge conducts
stocktakes at Compass’s retail outlets while Venners
audits licensed trade outlets at Twickenham and its
other event venues.
We experienced heightened competitive pressures
during the year . We responded by reducing costs,
improving our service, broadening our product range
and consolidating our position in Europe. 
We retain our large client base through hard work,
professionalism and competitive pricing. Our profit is
comparatively small in the first year of trading with a new
client – but by the second year we gain a higher margin
from proving that the service we provide is unbeatable. 
Our new business pipeline at the end of the year was
three times higher than in 2010 and we expect to make
further progress in 2012.
Divisional review
Stock & Inventory Systems & Services
Paul Harding
Managing Director, Orridge
and a Christie Group Director
“As a UK market leader in the
sector with strong international
coverage, we offer a high
quality, cost-effective service.” 18 Christie Group Annual Report 2011
A client experienced a downturn in his food
operation’s gross profits. Venners staff tried
reconciling the main food products against till
sales but with no success. So, a more basic
strategy was employed – observation, which
produced a quick result. 
Each week, the chef ordered a joint of meat,
cooked it and left it in a pan of water outside 
the back door – to ‘cool off’. His wife would 
then drive up and take the meat to ‘cool off’ 
some more.
‘Cooling rip-off’ 
exposed
The caterers at a football stadium were enjoying
success off the field with the amount of beer 
sold on match days. The sales were well over
budget but massive losses were stacking up.
The operators called in Venners to get to the
bottom of the problem. It transpired that oversized
plastic cups were being used. This, combined 
with the free-flow draught beer, meant that casual
staff were simply giving customers 15% more 
than they had paid for . Over 15,000 pints a day; 
that was a huge give-away.
Event profit control – 
make mine a pint! VENNERS
Venners is the UK’s largest and longest established
stock audit company specialising in the hospitality
sector . We provide nationwide coverage, and are
developing a growing presence in Continental Europe.   
2011 was a busy year and the business performed
solidly. Turnover was up by 12.8% and both profits 
and return on capital employed increased. All of 
our divisions made progress. We visited 12% more
premises, planned over 25,000 man-day assignments,
counted 2.5m individual product lines and controlled
stock with a total value of over £110m. 
In 2011, a new landmark was passed. For the first time
in its 116-year history the revenue that Venners
controlled from food stocktaking exceeded the turnover
from liquor, justifying our investment in new food
reporting systems.
Stock audit remains our core activity, accounting for
90% of revenue. We don’t sub-contract, but use our
own highly experienced fully contracted staff. Most
have been doing the job for at least a decade so they
have unrivalled trade experience.
Every one of our expiring contracts in 2011 was
successfully renewed. New additions to our client 
list included Cairn Hotel Group, Park Resorts, Mecca
and Murrayfield Stadium. A key client, Marston’s
signed a new long-term contract appointing us to
manage stock audits for all its service platforms.
In recent years we have launched a range of
complementary services. Services such as compliance
audits, inventory checks, health and safety, food safety,
fire safety and event profit and control have been
carefully chosen to extend and enhance our stock 
audit service.  
Establishing specialist sales teams has meant that 
we are becoming more adept at selling these services. 
We offer attractive discounts when clients buy more
than one service. Once one of our stocktakers is
already on site, an additional specialist service incurs 
a low additional cost. As customers buy more varied
services we have the added benefit of forging closer
links with our clients. 
The ability to offer a range of services is also giving 
us more reasons to meet more people. It is improving
the effectiveness of our marketing spend.
We encountered strong demand in 2011. We responded
by recruiting and training extra auditors, all of whom
have to pass our BII-accredited training programme.
This led to higher than anticipated training expenditure
which affected our profitability, but we regard this is 
a prudent investment in new business relationships.
Venners has frequently been a technological
trailblazer . We were the second company in the
country to acquire a mainframe computer and had an
OCR scanner as early as 1971. Our stocktakers got
their own laptops in the mid 1980s. With our Next
Generation IT investment we will be setting the pace
again. Our clients will have access to real-time
audited information with built-in interactive reporting. 
Collaboration with other Christie Group companies
was as strong as ever during 2011. We worked 
with Christie Insurance on client development and,
with Orridge, provided stocktaking services to
Compass Group.
Venners and Christie + Co worked together providing
services to the same customers on various occasions
throughout the year . The von Essen Hotels disposal
was the most prominent example.
We enter 2012 with a strong sales pipeline, a clear
strategy and confidence in our ability to develop and
grow the business in the years to come.
Divisional review
Stock & Inventory Systems & Services
Trevor Heyburn
Managing Director, Venners
“Turnover was up by 
12.8% and both profits 
and return on capital
employed increased.”
Christie Group Annual Report 2011 19 VENNERSYS
Vennersys supplies visitor attractions and
entertainment venues with specialist trading systems,
online ticketing and e-commerce services. Our support
services generate stable, repeat revenue from our
substantial user base. 
Vennersys has been supplying purpose-built EPoS,
ticketing and admissions systems for over 20 years. 
We are a market leader for visitor attractions in the UK.
In Canada, we lead the market for cinema management
systems including film hire, concession sales and
ticketing. Many of our clients are household names; 
they include cinemas, theme parks, museums, historic
estates, zoos and botanical gardens. 
VENPoS, our proprietary software solution, is an
integrated suite of applications, purpose-built for leisure
and visitor attractions. Our clients can manage all their
trading activities – including admissions, merchandise,
food and beverage sales – on a single platform. 
The company performed well in 2011. Revenue was
46.4% higher than in 2010. We improved product quality
and saw promising growth in our online ticketing
product, with its fee per booking revenue model. 
Our e-commerce solution VENPoS Online continued to
exceed expectations, managing more than £3.3m worth
of transactions during the year . We recognise a clear
market opportunity here. Visitors have an increasing
appetite to buy tickets for attractions online, yet just 18%
of UK venues currently offer this capability. In 2012, we
plan to market VENPoS Online as a standalone product.
New client signings during 2011 included Arundel Castle,
the ancestral home of the Duke of Norfolk; CurveMotion,
a roller skating-themed centre in Bury St Edmunds; and
Kidzworld in St Austell.
Various existing customers expanded their VENPoS
systems. We have been developing software integration
tools for Merlin Entertainments. Aspro Group rolled out
VENPoS to all its remaining UK venues while Knowsley
Safari Park added new functionality to its core system.
Our project development team continued to innovate,
focusing on enhancing VENPoS CRM. On average,
secondary spend accounts for around 50% of revenue 
at visitor attractions. Our improved CRM module helps
clients analyse visitor numbers and secondary spending
patterns, and tailor marketing campaigns accordingly.
As part of this initiative we joined forces with Peach
Digital to develop and launch VENPoS Campaign. This
new software module manages targeted e-mail and 
SMS campaigns. It tracks effectiveness by monitoring
customer response rates against promotion codes.
In Canada, we implemented Vista for various Empire
cinemas, and continued to implement ticketing systems
for Landmark Theatres. This key relationship goes from
strength to strength – the client reported that better
system integration had radically improved management
information flows. It intends to install Vista at a further
nine sites in 2012.
The Vista solution is not just applicable to large cinema
circuits. We embarked on a major sales campaign during
the year to attract smaller independent cinemas. This
has already borne fruit. The first implementations took
place in the last quarter of 2011 and we anticipate more
throughout 2012.
We entered 2012 with strong sales pipelines in both 
Canada and the UK and healthy growth in online
ticketing revenue. We anticipate a strong performance
during the year taking us into 2013 with healthy
maintenance and online revenue streams.
.
Divisional review
Stock & Inventory Systems & Services
20 Christie Group Annual Report 2011
Alan Magrowski
General Manager, Vennersys Corp
“We entered 2012 with strong
sales pipelines in both Canada
and the UK and healthy growth
in online ticketing revenue.” Christie Group Annual Report 2011 21
CurveMotion is an exciting new indoor interactive
venue in Bury St Edmunds incorporating the only
purpose-built roller skating rink in Suffolk, the
largest soft play frame in East Anglia and a high
quality restaurant. The aim was to implement a
single, easy-to-use system capable of managing
CurveMotion’s business operations including 
EPoS, CRM and particularly online bookings. 
As the venue caters for all age ranges, it was also
essential to include a security feature to ensure
children were linked with their accompanying
adult. Vennersys took the time to fully understand
CurveMotion’s exact needs and carried out custom
development before delivering a security system
based on barcoded wristbands.
VENPoS on a roll at CurveMotion
Arundel Castle is one of the most beautiful
castles in the country, welcoming over 150,000
visitors each year . The aim was to implement 
a leading-edge retail and admissions solution
providing a total view of both the visitor base 
and trading performance. VENPoS offered the
flexibility, functionality and value for money 
that was needed: facilities for rapid admissions
and ‘fast tracking’ customers purchasing 
tickets online; easy-to-use/touchscreen EPoS
terminals; integrated card payment processing;
online sales 24/7; CRM for managing
memberships plus better reporting and
management information.
Arundel Castle 22 Christie Group Annual Report 2011
Following the collapse of Southern Cross,
Christie + Co was asked to advise on the
reassignment of over 60 leasehold agreements
the care provider had with its landlords. The
agreements were transferred to alternative
operators. Christie + Co was also appointed 
to sell the five freehold going concern homes
owned by Southern Cross, together with its
domiciliary care business. The care homes 
were situated in Shropshire, the North of
England and Scotland. Purchasers were 
found for all six opportunities and they were 
sold within a two-month timeframe.
Southern Cross
The acquisition of the Royal Bank of Scotland’s
‘Galaxy’ estate for a reported £412 million 
by Heineken UK’s Scottish & Newcastle Pub
Company was the pub sector’s major deal 
of 2011, and the biggest deal for many years. 
Christie +Co provided valuation and advisory
services to RBS throughout the process, 
which saw Heineken acquire a major estate 
and secure the futures of the existing tenants 
of the 918 pubs involved.
Royal Bank of Scotland’s 
‘Galaxy’ estate CHRISTIE + CO
Christie + Co is Europe’s largest specialist business
broker . We provide expert advice and valuations in the
leisure, care and retail sectors. In the UK, we have a
nationwide operation with fourteen regional offices,
and are a growing force in Europe. 
The Eurozone crisis and uncertain economic conditions
coloured the trading environment throughout 2011. 
Our transactional business began slowly, but picked up
momentum as the year progressed. There were fewer
transactions across the year, with distress driving many
sales. Our Bank Support and Business Recovery team
worked closely with banks to either dispose of distressed
businesses or return them to economic health. 
Specialist expertise is now seen as a priority in our
marketplace. In tough trading conditions administrators,
banks and other vendors recognise the value of
experience and in-depth sector knowledge. We continue
to invest in expertise. We recruit and develop skilled
specialists in our chosen sectors, and support them
with technological resources.
The quality of our service results in clients engaging us
for complex, high-profile assignments, where informed
advice is required quickly. We are consulting on more
valuations and advisory projects than ever before and
attracting an increasing number of high quality, high
value instructions. 
In the healthcare sector, the disposal by Southern Cross
of its care home assets touched a raw political nerve.
We were asked to advise on reassigning over 60 of the
leases it held with landlords. We then managed the sale
of the remaining freehold properties. 
The administrators for von Essen Hotels instructed us 
to dispose of its 26 UK hotels, along with a Napoleonic
fort off the Welsh coast and a French château. 
This assignment was one of many where we worked
closely with other Christie Group companies.
Major pub chains Punch Taverns, Enterprise Inns and
Admiral Taverns engaged us to rationalise their portfolios,
and we managed the disposal of over 200 pubs for the
administrators of Retail & Licensed Properties (R&L). 
For the Royal Bank of Scotland we provided valuation and
advisory services for the year's largest deal in the pub
sector, the £412m acquisition of its Galaxy estate by the
Heineken subsidiary, Scottish & Newcastle Pub Company. 
Excellence in our specialist sectors was recognised 
with two accolades from our peers. The Estates Gazette
named Christie + Co as both the Property Adviser of 
The Year – Leisure and the most active agent in the
leisure and hotel sector .
We are growing internationally with four offices in France,
three in Germany and one each in Spain, Finland, Austria
and the United Arab Emirates. Our most recent office in
Dubai extends our reach across the Middle East and
North Africa. 
In Europe, our expertise and international capabilities 
in the hotel sector are attracting increasing interest. 
We traded profitably in Europe in 2011 and are recruiting
in both Vienna and Lyon to manage growing demand. 
We continue to trial the new technology platform, Click
to Purchase. It facilitates sales by allowing customers to
exchange quickly online and improves the transparency
and flexibility of our services.
We are also enhancing mobile connectivity. Our new,
mobile-friendly website supports customers on the
move. Our investment in search engine optimisation 
has significantly improved the rankings for our
www.christie.com website, which is a key tool in driving
new business.
As the market continues to adjust, we anticipate more
opportunities in 2012. Our international profile, strong
reputation and proven track record will stand us in 
good stead.
Chris Day
Managing Director, Christie+  Co 
and a Christie Group Director
“The quality of our service results 
in clients engaging us for complex,
high-profile assignments, where
informed advice is required quickly.”
Simon Hughes
Managing Director, Christie + Co UK
Christie Group Annual Report 2011 23
Divisional review
Professional Business Services 24 Christie Group Annual Report 2011
Even though the purchasers had experience
owning and managing both hotels and care
homes, they had difficulties with their existing
bank so they called on Christie Finance to help
secure funding to buy the Esplanade Hotel in
Clacton-on-Sea. 
Christie Finance was successful and the 
family bought the hotel under JMG Hotels Ltd
commenting that Christie Finance offered
“valuable expertise in a difficult market.” 
The hotel was sold through Christie + Co 
and valued by Pinders.
Esplanade Hotel
Brook Hotels is a privately-owned group, 
which now has a selection of 21 historic hotels
in key towns and cities throughout the UK.
Christie Insurance arranged the general
insurance for the group, enabling the client 
to make a significant saving. The hotel group
later sold some of its hotels and Christie
Insurance insured the new owner at very 
short notice. Christie Insurance also looks
after Brook Hotels’ group health insurance 
and death in service on an annual basis.
Brook Hotels CHRISTIE FINANCE
Christie Finance is an independent business
mortgage broker . For more than 30 years we have
helped entrepreneurs acquire, expand or refinance
their businesses. We specialise in the leisure, care
and retail sectors and offer a nationwide service
across the UK. 
During 2011, we focused on improving our service to
clients. This included recruiting expert mortgage
brokers to improve the quality of our advice and
continuing to integrate technology into our operations.
For example, we are using the Christie Finance and
Christie + Co websites, together with our IBIS CRM
system, to get earlier sight of Christie + Co
instructions and support our clients more effectively.
The refinancing of Buckreddan Care Centre with
Clydesdale Bank shows how Christie Group teams work
together to unlock funding. Having successfully operated
the business since 1986, the owners had a solid growth
strategy. Their existing bank relationship had broken
down and Christie + Co introduced them to Christie
Finance to consider possible funding options. We worked
with the Christie + Co valuation and agency teams in
Glasgow to build a compelling lending case based on
the clients’ sector experience and the quality of service,
to effect a successful outcome with Clydesdale Bank.
Our role is becoming more complex as de-leveraging
makes debt finance harder to arrange, with banks
typically lending on loan to value ratios of 65% or less.
Whilst lenders demand ever more robust lending
propositions of us, many are simultaneously reducing
the commission paid in return.
Fortunately, Christie Finance is not wholly reliant on
banks for revenue. Our premium service justifies
charging clients a fee and our clients are prepared to
pay for market-leading sector knowledge and
expertise to secure intelligent financial solutions.
With the wholesale money market effectively closed,
we are developing innovative funding strategies and
sources. For instance, we have secured funding across
our specialist sectors with European Investment Bank
and Enterprise Finance Guarantee support.
Whilst some lenders have retracted, new funding
sources are emerging. Metro Bank launched last year
and Shawbrook Bank opened in October . Virgin Money
has acquired Northern Rock and the Co-operative
bank is bidding for Lloyds TSB branches. All these
new lenders have the opportunity to build up high
quality loan books at attractive rates.
Looking ahead, we are comfortable with our market
position and, in fact, may gain market share as
lenders restrict their broker panels. By keeping costs
low we will continue to trade profitably. A decisive
improvement in profitability, however, will only come
about when transaction volumes recover .
CHRISTIE INSURANCE
Christie Insurance is an independent insurance
intermediary. We negotiate competitively priced,
carefully targeted cover for our clients, and work
closely with both Christie + Co and Christie Finance.
We have a detailed, in-depth understanding of the
hospitality, leisure, care, education and retail markets.
We deliver a personalised service to our clients, take
time to understand their objectives and recommend
the right combination of policies and cost. It is a
distinctive stance in a market increasingly dominated
by call centres and self-interested models. 
Our clients appreciate our independence and
expertise. The overwhelming majority prefer to hedge
risk through an intermediary who understands their
business priorities. At over 90%, our client retention
rate ranks amongst the highest in the industry.
The majority of our new business comes from
referrals from Christie + Co and Christie Finance.
When establishing a business, entrepreneurs can use
the combination of services offered by our companies
as a one-stop shop – to find a business, finance it,
arrange insurance and manage its stock.
The global economic crisis limited the amount of
transaction-related business during 2011. We focused
on forging smoother links with our sister companies
and improving the conversion rate of new business
referrals.
After an extended period of higher than average
claims, insurers will have to gradually rebuild their
balance sheets. An across-the-board rise in insurance
premiums hurt hard-pressed businesses. 
We were able to source competitive premiums in
niche areas, but there were fewer opportunities
for substantial discounts. This was sometimes
challenging for our renewals business, although we
did manage to retain the vast majority of our clients.
Our IT platform is a key source of competitive
advantage. Our bespoke CRM system is
interconnected with the Christie + Co system, giving
greater deal visibility. We maintain complete records
for all our clients who renew, thereby enhancing our
ability to quote and re-broke business.
During 2011, we strengthened our sales force and
extended our network with an office in Ipswich, which
is already trading successfully. We have worked hard
to contain expenditure and achieved significant
reductions against budgeted levels. 
Looking ahead, we will continue to fine-tune our
service, retain our personalised approach and build
even closer links with the rest of Christie Group.
Walter Murray
Managing Director, Christie Finance
“At over 90%, our client
retention rate ranks amongst
the highest in the industry.”
“Customers are prepared to pay
for our sector expertise and
in-depth knowledge of funding
sources and strategies.”
David Grant
Head of Business Mortgages, 
Christie Finance
Christie Group Annual Report 2011 25
Divisional review
Professional Business Services PINDERS
Our RICS-qualified valuers provide reporting for
businesses in five broad sectors – healthcare and
education; licensed trade; retail and catering; leisure and
hospitality; services and manufacturing. Our services fall
within six main categories – appraisal and valuation,
consultancy, dispute resolution, building surveying,
project management and business recovery.
The lack of transactions during 2011 inevitably affected
our ability to conduct business appraisals. Our
Healthcare & Education and Leisure & Hospitality
divisions were relatively flat, in large part due to the
adverse wider economic conditions. However, our 
Retail & Catering division made good progress. 
On a positive note, we continued to experience a flight to
quality. Formal appraisals are now regularly demanded 
in financing negotiations and lenders are turning to
companies they know and trust. Both factors have
boosted the proportion of transactions leading to referrals. 
Despite overcapacity in our market continuing to place
downward pressure on fees, it was encouraging to note
that our average reporting fees rose slightly in 2011.
Banks continue to be an important source of business
and they prefer to engage valuers with national networks
in order to ensure consistency in reporting standards
across the country. We extended our national coverage 
by recruiting valuation professionals in the South West,
North East and East Anglia.
Our appointment to the HSBC panel was extended for a
further 12 months and our Barclays panel appointment
for a further two years. We also built strong links with
new lenders; we were appointed to Metro Bank's panel
and were one of only two firms specialising in business
appraisal on the panel of Shawbrook Bank. In addition,
we undertook numerous reviews for the debt recovery
teams at Lloyds and Santander .
Broker referrals remain a very important source of
business. Although Christie Finance provided us with the
same level of referrals in 2011, other brokers were
noticeably less visible. This appears to reflect a reduction
in their business rather than any particular change 
in attitudes.
Whilst our consultancy work was affected by the low level
of transactions, we recorded some big wins, including
several planning consultancy commissions from care
group Quercus, which led to project management
assignments. 
We hosted the 2011 Healthcare Design Awards at 
Lord’s Cricket Ground. The awards are a calendar
highlight for many and the event was well attended 
by over 500 sector professionals and strongly supported
by industry sponsors.
Pinders professionals are frequently asked to act as
expert witnesses in property-related disputes and we
enjoy a number of national retailers and healthcare
groups as clients.
We conducted several building surveys following 
Christie + Co referrals, most notably the substantial
portfolio of 26 von Essen Hotels assets. 
Clients and competitors alike are quick to acknowledge
the quality of our products and services. However, with
market volumes at low levels, some competitors are
reducing fees to unsustainable levels in pursuit of market
share. This is a dangerous practice and one in which we
will not engage. There is no shortcut to the preparation 
of an accurate and informative business valuation. 
In the short term, we are focusing on further efficiencies
whilst retaining our excellent reputation for quality
service. Longer term, the outlook is for gradually
increasing turnover leading to higher profitability.
Justin Cain
Managing Director, Pinders
“Clients and competitors alike
are quick to acknowledge 
the quality of our products 
and services.”
Divisional review
Professional Business Services
26 Christie Group Annual Report 2011 Christie Group Annual Report 2011 27
HSBC appointed Pinders to project monitor 
a mixed-use development comprising ground 
floor retail units and a 95-bedroom hotel above.
The site posed some problems and temporary
buildings had to be built within the retail space 
for most of the duration of the project.
Pinders worked with both the developer’s team
and the bank’s solicitors to ensure that the
contract procurement, statutory approvals, costs
and overall programme were acceptable before 
the funding was released. Once completed,
Premier Inns leased the upper floors.
New Premier Inn hotel, Camberley
Stockton Pre-school in Warwickshire asked
Pinders to project manage the redesign of its old,
and rather tired garden to become a revitalised
play/sensory area for the children. Part of the 
brief was for it to be a safe and stimulating
environment and low on maintenance.
Pinders produced several drawings and 3D images
of the proposed project, which proved useful in
illustrating the plans, addressing issues and
getting local residents on board. The design and
build took just under six weeks to complete.
Stockton Pre-school 28 Christie Group Annual Report 2011
Financial review
Strong growth, increased expenditure
We achieved a significant increase in revenue in 2011 as
total income increased from £48.9m in 2010 to £53.3m
in 2011. This 9.0% increase was driven primarily by a
15.7% increase in revenue from our Stock & Inventory
Systems & Services division (SISS), assisted by a 3.3%
growth in income from our Professional Business
Services division (PBS).
Revenue growth within SISS was profitable growth which
was achieved despite significant investment in systems
and training. The £3.5m year-on-year increase in
revenue from £22.4m in 2010 to £25.9m in 2011
generated an increase in operating profit of £0.3m
despite this investment expenditure.
Revenue growth in PBS was more modest in a
challenging climate. Revenue increased by 3.3% to
£27.4m (2010: £26.5m) but to achieve this and maintain
our strong position in the market it was necessary to
reintroduce some operating cost to the business which
resulted in a decrease in profitability for the division when
compared to the previous year . This increase in operating
costs included a significant one-off reintroduction of
employee costs with the aim of ensuring we are able to
achieve profitable growth as the market recovers.
In addition to the increased expenditure on our existing
business within PBS, we invested £0.4m in the start-up of
our new Dubai operation. The operating loss attributable
to the opening of Dubai is reported as an exceptional item
within the Consolidated Statement of Comprehensive
Income, and highlights a £0.7m operating profit (2010:
£1.0m) achieved from those operations which had
comprised the previous year’s performance.
Cash investment in working capital
Finance costs of £0.1m (2010: £0.1m) reflect the
manageable cost of financing our working capital
requirements.
Trade and other receivables had increased to £11.2m
(2010: £9.4m) with the year on year increase of £1.8m
attributable in part to the increased rate of VAT but
primarily due to the revenue growth referred to previously.
This increase in our working capital funding requirement
at the year-end is demonstrated by an increased level of
borrowing and a decrease in our cash balance.
Within the Consolidated Statement of Comprehensive
Income we have, for the first time this year, reported as
a separate item the effect on operating profit of the
provision for the impairment of trade receivables. In
previous years these amounts have been included within
‘Other operating expenses’. As a result of successfully
collecting many of those items which had been
considered a credit risk at 31 December 2011 and had
been impaired accordingly, we are able to report a credit
to the income statement of £92,000 (2010: £566,000).
The Board views credit risk extremely seriously
and where objective evidence exists which might
reasonably be considered to indicate that a receivable
may not be realised in full, a provision for impairment
may be recognised. The evidence that the Board
considers relevant in making such assessments
includes the non-payment by customers within a
period significantly greater than their contractual
payment terms, the financial distress of customers
and unresolved disputes relating to amounts owed by
custom ers. Notwithstanding this approach, all of our
businesses adopt a robust stance to debt collection
where they believe they are owed money for services
provided and their success in pursuing such amounts
is demonstrated by the credits to the income
statement reported in 2011 and 2010.
Full details of the provision for impairment of trade
receivables are set out in note 21 of the accounts.
Taxation
The tax charge for the year of £0.4m (2010: £0.5m credit)
was markedly higher than the profit before tax of £0.2m
might have been expected to result in. This was due
primarily to a £0.2m deferred tax charge arising from
the re-measurement of our opening deferred tax asset
and a further £0.2m charge arising from the effects of
disallowable expenditure. It is significant to note that
there are no cash payments in relation to corporation
tax expected in 2012 as we continue to utilise tax losses
to offset any taxable profits arising.
Key performance indicators
In accordance with the enhanced Directors’ report we
have included our main KPIs for the Group and the
individual operating divisions in the table below. As a
group we have a number of key areas that these
indicators measure:
•Revenue growth – an important part of our strategy is
growing our businesses and is best measured by
revenue growth
We remain well-placed to
drive improved profitability
from future growth. KPIs
Professional Stock & 
Business Inventory Systems
Group Services & Services
Revenue growth
2011 on 2010 9.0% 3.3% 15.7%
2010 on 2009 3.9% 13.9% (5.9%)
2009 on 2008 (25.8%) (37.0%) (10.2%)
Productivity – staff costs
(before exceptionals) per £1,000 of revenue
2011 704 644 701
2010 695 615 712
2009 768 759 693
Operating profit/(loss)
before exceptional items as % of revenue
2011 1.4% (0.2%) 2.5%
2010 2.1% 5.7% 1.3%
2008 (7.8%) (16.8%) 2.0%
All figures apply to continuing operations only
Christie Group Annual Report 2011 29
•Productivity – being in the service sector, employee
costs are our largest single cost. It is important to
remain competitive and continue to improve our
productivity . This KPI looks at the total cost of
employees (including benefits, the cost of company
cars, company pension contributions and local
employer taxes) required to produce £1,000 of revenue.
For this KPI a reducing figure reflects an improvement.
•Operating profit % - this is measured as operating
profit (before any charge for impairment) as a
percentage of revenue
An excellent year for our Stock & Inventory Systems &
Services division is demonstrated by a 2.5% operating
profit margin (2010: 1.3%) and an improved productivity
level with staff costs per £1,000 of revenue reduced to
£701 (2010: £712). Combined with a 15.7% increase in
revenue the result is a 117% increase in operating profit
to £0.6m (2010: £0.3m).
Within our Professional Business Services division,
a marginal operating loss before exceptional items of
0.2% of revenue was achieved in a difficult climate with
productivity which, while lower than 2010, remained
significantly improved on 2009.
Our results for 2011 demonstrate the resilience and
complementary nature of our businesses and our ability
to deliver a profitable performance as a Group in
challenging times. We remain well-placed to drive
improved profitability from future growth.
Dan Prickett
Chief Financial Officer Board of directors
Philip Gwyn
Chairman
Philip is a barrister and merchant
banker by training. He is responsible 
for Group strategy and planning. 
Philip is a Non-executive Director 
of Alumasc plc and a Director of a
number of private companies, including
Joint Chairman of Hybrid Air Vehicles.
David Rugg
Chief Executive
David is responsible for the day-to-day
operation and development of the 
Group, in which capacity he has been
responsible for the identification and
integration of its principal subsidiary
business acquisitions. David either
chairs or sits on the boards of Christie
Group trading companies.
Dan Prickett
Chief Financial Officer
Dan joined Christie Group in December
2007, prior to becoming Chief Financial
Officer in 2010. He has responsibility for
all financial and company accounting
matters, as well as financial public
relations. Dan, a Chartered Accountant,
has previously worked for Grant Thornton,
MacIntyre Hudson and Inchcape Retail.
Chris Day
Executive Director
Chris joined Christie +Co in 1 985 and,
having worked in the Manchester,
Birmingham and London offices, was
appointed Managing Director in 1 993. 
He has overall responsibility for all
Christie +Co’ s specialist transactional
and advisory activities. Chris has
overseen the successful expansion 
of Christie +Co into an international firm, 
which currently has offices throughout
Europe and in the Middle East.
Tony Chambers
Senior Non-executive Director
Tony was previously Head of Banking and
Director of Robert Fleming, a Director of
Save and Prosper Group and Chairman
of Gartmore High Income. Tony chairs
the Remuneration Committee and is 
also a member of both the Audit and
Nomination Committees.
Paul Harding
Executive Director
Paul has worked for Orridge for over 
25 years. When Christie Group acquired
Orridge in December 2002 Paul was
Sales Director . He was appointed 
as Managing Director in 2004 and, 
since then, has been responsible for
developing the company into a profitable
pan-European retail stocktaking
business. Paul has also been a 
Director of Vennersys since 2008.
Pommy Sarwal
Non-executive Director
Pommy, a former corporate finance
partner at Deloitte, is currently Joint
Chairman of Hybrid Air Vehicles and
Chairman of Master Ropemakers. 
He is also a Non-executive Director 
of Chatham Historic Dockyard and 
Hyde Housing Association, and 
a member of the board of both the 
Port of London Authority and British
Waterways. Pommy chairs the 
Audit Committee and is a member 
of the Nomination and Remuneration
Committees. He is also Chairman 
of Venners.
Company information
Secretary
Dan Prickett ACA
Registered office
65 Carter Lane
London EC4V 5HF
Registered number
1471939 
Nominated adviser and broker
Charles Stanley Securities
Principal solicitors
Royds
SNR Denton
Auditors
Nexia Smith & Williamson Audit
Public relations
Winningtons
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham 
Kent BR3 4TU
30 Christie Group Annual Report 2011 Directors’ report
The Directors present their report and the
audited financial statements for the year ended
31 December 2011.
Principal activities and business review
Christie Group plc is the parent undertaking of a
group of companies covering a range of related
activities. These fall into two divisions – Professional
Business Services and Stock & Inventory Systems &
Services. Professional Business Services principally
covers business valuation, consultancy and agency,
mortgage and insurance services, and business
appraisal. Stock & Inventory Systems & Services
covers stock audit and counting, compliance and food
safety audits, inventory preparation and valuation,
hospitality and cinema software. A description of the
Group’s activities and a detailed business review of
the year and future developments ar e 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 28 and the risks and uncertainties in the
Corporate Governance report on page 34.
Results and dividends
The results for the year are set out in the
consolidated statement of comprehensive income on
page 39. The Directors recommend the payment of a
final dividend of 0.5p (2010: 1.0p) per share which
together with the interim dividend of nil (2010: nil) per
share, makes a total of 0.5p (2010: 1.0p) per share
totalling £124,000 (2010: £247,000) for the year .
The profit for the year before tax and before other
comprehensive income was £237,000 (2010: £939,000)
and the loss attributable to equity holders of the
Company for the financial year, after taxation and
including other comprehensive income, was
£206,000 (2010: £1,429,000 profit).
Directors
The Directors of the Company in office at the date of
this report, together with their biographical details,
are shown on page 30. All these Directors served
throughout the year except Paul Harding, who was
appointed to the Board on 1 July 2011. Dan Prickett,
Paul Harding and Pommy Sarwal retire in accordance
with the Company’s Articles of Association. Dan Prickett,
Paul Harding and Pommy Sarwal being eligible, offer
themselves for re-election at the forthcoming Annual
General Meeting. Directors’ interests are shown in the
Remuneration Report. During the year under review
and as at the date of the Directors’ report, appropriate
directors’ and officers’ insurance was in place.
Employees
The Directors recognise the benefits which accrue
from keeping employees informed on the progress
of the business and involving them in the Group’s
performance. Each individual operating company
adopts employee consultation as appropriate.
The Company is committed to providing equality of
opportunity to all employees regardless of nationality,
ethnic origin, age, sex or sexual orientation and
continues to be supportive of the employment and
advancement of disabled persons.
Donations
The Group contributed £9,000 (2010: £5,000) to
charities during the year . It made no political
contributions. The Group also operates a
Give As You Earn (GAYE) scheme for employees.
Policy on payments to suppliers
It is a policy of the Group in respect of all its suppliers,
where reasonably practicable, to settle the terms of
payment with those suppliers when agreeing the terms
of each transaction, to ensure that those suppliers are
made aware of the terms of payment, and to abide by
the terms of payment. The Group’s average trade
payable days during the year was 42 (2010: 55).
Acquisition of own shares
During the year the Company funded the purchase
of 150,000 (2010: 49,000) of its own ordinary shares,
through an Employee Share Ownership Trust, for a
consideration of £82,000 (2010: £28,000), to enable
it to meet awards under its SAYE and other share
schemes. During the year the Company also sold
250,000 (2010: nil) of its own ordinary shares,
through an Employee Share Ownership Trust, for a
consideration of £120,000 (2010: £nil). The total
holding of the Employee Share Ownership Trust as at
31 December 2011 was 483,000 shares (2010: 582,000
shares), which represents 1.91% (2010: 2.31%) of
the current issued share capital.
Health, safety and the environment
The Directors consider the health, safety and
environmental protection aspects of the business to
be of great importance, as the prevention of personal
injury, the avoidance of damage to health and the
protection of the environment are important business
and social responsibilities. Management practices
within the Group are designed to ensure so far as is
reasonably practicable, the health, safety and
welfare at work of employees, contractors and
visitors and the implementation of environmentally
aware and friendly policies.
Going concern
After making enquiries, the Directors consider that
the Group has adequate resources to continue in
operational existence for the foreseeable future.
For this reason they continue to adopt the going
concern basis in preparing the financial statements,
which appear on pages 39 to 80.
Auditors
In accordance with Section 489 of the Companies Act
2006, a resolution proposing that Nexia Smith &
Williamson be re-appointed as auditors of the
Company will be put to the Annual General Meeting.
Disclosure of information to auditors
Directors of the Group have confirmed that in fulfilling
their duties as a director:
•so far as they are each aware, there was no relevant
audit information of which the auditors were
unaware; and
•they have taken all reasonable steps that a director
ought to have taken to make himself or herself
aware of any relevant audit information and to
establish that the Group’s auditors were aware of
that information.
This information is given and should be interpreted
in accordance with the provision of s.418 of the
Companies Act 2006.
This report was approved by the board on 3 April 2012.
D R Prickett
Company Secretary
65 Carter Lane
London EC4V 5HF
Registered No. 1471939
Christie Group Annual Report 2011 31 The Directors are committed to delivering high standards of corporate
governance to the Company’s shareholders and other stakeholders including
employees, suppliers and the wider community. The Board of Directors
operates within the framework described below.
The Board
The Board sets the Company’s strategic aims and ensures that necessary
resources are in place in order for the Company to meet its objectives.
All members of the Board take collective responsibility for the performance
of the Company and all decisions are taken in the interests of the Company.
Whilst the Board has delegated the normal operational management of the
Company to the Executive Directors and other senior management there are
detailed specific matters subject to decision by the Board of Directors.
These include acquisitions and disposals, joint ventures and investments and
projects of a capital nature. The Non-executive Directors have a particular
responsibility to challenge constructively the strategy proposed by the
Chairman and Executive Directors; to scrutinise and challenge performance;
to ensure appropriate remuneration and to ensure that succession planning
arrangements are in place in relation to Executive Directors and other senior
members of the management team. The Chairman holds informal meetings
with individual Non-executive Directors without the executives present.
The senior Non-executive Director also discusses matters with other
Non-executive Directors without the Chairman being present. The senior
executives enjoy open access to the Non-executive Directors with or without
the Chairman being present. In short the Directors talk to each other .
The Board is responsible for ensuring that a sound system of internal control
exists to safeguard shareholders’ interests and the Group’s assets. It is
responsible for the regular review of the effectiveness of the systems of internal
control. Internal controls are designed to manage rather than eliminate risk
and therefore even the most effective system cannot provide assurance that
each and every risk, present and future, has been addressed. The key features
of the system that operated during the year are described below.
Organisational structure and control environment
The Board of Directors meets at least five times a year to review the
performance of the Group. It seeks to foster a strong ethical climate across
the Group. There are clearly defined lines of responsibility and delegation of
authority from the Board to the operating subsidiaries. The Directors of each
trading subsidiary meet on a monthly basis with normally at least two
members of the Group Board in attendance.
Internal control
The key procedures which the Directors have established with a view to
providing effective internal control are as follows:
•Regular Board meetings to consider the schedule of matters reserved
for Directors’ consideration;
•A risk management process (see below);
•An established organisational structure with clearly defined lines of
responsibility and delegation of authority;
•Appointment of staff of the necessary calibre to fulfil their allotted
responsibilities;
•Comprehensive budgets, forecasts and business plans approved by the
Board, reviewed on a regular basis, with performance monitored against
them and explanations obtained for material variances (see page 33);
•An Audit Committee of the Board, comprising Non-executive Directors,
which considers significant financial control matters as appropriate; and
•Documented whistle-blowing policies and procedures.
There is currently no internal audit function, although this is kept under
annual review.
Risk management
The Board has the primary responsibility for identifying the major risks facing
the Group. The Board has adopted a schedule of matters which are required
to be brought to it for decision, thus ensuring that it maintains full and
effective control over appropriate strategic, financial, organisational and
compliance issues. The Board has identified a number of key areas which
are subject to regular reporting to the Board. The policies include defined
procedures for seeking and obtaining approval for major transactions and
organisational changes.
Risk reviews carried out by each subsidiary are updated annually as part of an
ongoing risk assessment process. The focus of the reviews is to identify the
circumstances, both internally and externally, where risks might affect the
Group’s ability to achieve its business objectives. An overall risk assessment
for the Group is prepared. The management of each subsidiary periodically
reports to the Board any new risks. In addition to risk assessment, the Board
believes that the management structure within the Group facilitates free and
rapid communication across the subsidiaries and between the Group Board
and those subsidiaries and consequently allows a consistent approach to
managing risks. Certain key functions are centralised, enabling the Group to
address risks to the business present in those functions quickly and efficiently.
Corporate governance
32 Christie Group Annual Report 2011 Financial planning, budgeting and monitoring
The Group operates a planning and budgeting system with an annual Budget
approved by the Board. There is a financial reporting system which compares
results with the budget and the previous year on a monthly basis to identify
any variances from approved plans. Rolling cash flow forecasts form part of
the reporting system. The Group remains alert to react to other business
opportunities as they arise.
Non-executive Directors
The Non-executive Directors do not have service agreements and have no
automatic right of re-appointment. They are regarded by the Board as
bringing experience to the Board from their fields of business and finance,
and ensure that all matters of strategy, performance, progress and standards
are debated thoroughly. The senior Non-executive Director is Tony Chambers.
The table below shows the extent to which each of the Non-executive
Directors complies with objective tests on independence:
Tony Pommy 
QuestionChambers Sarwal
Has been an employee of the Company or
Group within the last five years? 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
Has received or receives additional remuneration
from the Company apart from directors’ fees,
participates in the Company’s share option or
performance-related pay scheme, or is a member
of the Company’s pension scheme? No No
Has close family ties with any of the Company’s
Directors, senior employees or advisers? No No
Holds cross-directorships or has significant links
with other Directors through involvement in other
companies or bodies? No Yes
Represents or is a significant shareholder? No No
Has served on the Board for more than nine years
from the date of their first election? No No
The Non-executive Directors are considered by the Board to be independent
in character and judgement and have no relationships or any circumstances
that are likely to affect their judgement as Directors of the Company.
Pommy Sarwal sits on the board of Hybrid Air Vehicles Limited, a UK
incorporated company, as Joint Chairman with Philip Gwyn. Mr Sarwal also
sits on the Board of Venners as non-executive Chairman, but the day-to-day
management of that company is conducted by its executive directors.
Neither of these roles are considered to impair his judgement or character
in relation to his directorship of Christie Group plc.
Audit Committee
The Audit Committee meets no less than twice a year with the auditors in
attendance. It also assists the Board in observing its responsibility for
ensuring that the Group’s accounting systems provide accurate and timely
information and that the Group’s published financial statements represent a
true and fair reflection of the Group’s financial position and its performance in
the period under review. The committee also ensures that internal controls
and appropriate accounting policies are in place, reviews the scope and
results of the audits, the independence and objectivity of the auditors and
establishes that an effective system of internal financial control is maintained.
The Committee has primary responsibility for making a recommendation on
the appointment or re-appointment of the external auditors. In order to
maintain the independence of the external auditors, the Board has
determined guidelines as to what non-audit services can be provided by the
Company’s external auditors and the approval processes related to them.
Under those policies work of a consultancy nature will not be offered to the
external auditors unless there are clear efficiencies and value added benefits
to the Company. Additionally the auditors confirm their independence in
writing each year . The committee also monitors the level of non-audit fees
paid to the external auditors. The Audit Committee consists of Tony Chambers
and Pommy Sarwal as Chairman.
Remuneration Committee
The Remuneration Committee meets no less than twice a year and is
responsible for determining main Board Directors and subsidiary company
managing directors’ remuneration together with the terms and conditions of
their service contracts. It has access to relevant comparable information in
respect of similar businesses. The committee is also responsible for the
allocation of options under the Company’s executive share option scheme.
The committee also maintains a watching brief over the general employment
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.
Christie Group Annual Report 2011 33 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 and
Philip Gwyn as Chairman.
Risks and uncertainties
We operate in a world with a heightened awareness of risk. In growing and
developing our businesses we have made a conscious decision to try and
minimise unrewarded risk. We have done this in the following ways:
1. We are growing a European business in order that we are less dependent
on the success or otherwise of one country’s economy.
2. We service three sectors; leisure, care and retail, so that we are not
dependent solely on the fortunes of one sector .
3. We offer a spread of services across our two divisions, for example,
transactional, advisory and support.
4. We have a spread of work which deliberately covers both corporate
and private clients.
That stated, whilst we have endeavoured to reduce risks, we are not immune
to movements in the global economy or changes in the economic or
legislative environments in the countries in which we do business. In addition,
such things as the psychological affect of natural disasters, terrorist attacks,
banking crises, currency crises and changes in behaviour pattern due to
environmental based legislation can all impact our businesses in unexpected
ways. All of our activities rely on the recruitment and retention of skilled
individuals. Each of our divisions, though, face certain risks that are unique to
the services they provide and they are categorised under the divisional
headings below:
The following can adversely affect our markets and businesses:
Professional Business Services
•changes in interest rates;
•lack of bank liquidity and more conservative lending criteria; and
•a slow down in the residential housing market.
•collapse or fragmentation of the Euro Currency (also applicable to SISS)
•dismemberment of the European Union (also applicable to SISS)
Stock & Inventory Systems & Services
•changes in employee legislation, in particular the Working Time Directive;
•increase in transport costs;
•trends towards a cashless society; and
•economic slowdown affecting the retail and hospitality sectors.
The above list of risks is meant to highlight, in addition to any noted
elsewhere in this report, those we consider relevant today and is not intended
to be an exhaustive list of risks facing the businesses.
Dialogue with institutional shareholders
The Directors seek to build on a mutual understanding of objectives between
the Company and its institutional shareholders. This is done through
meetings following the publication of the year-end and interim results.
Shares and shareholdings
The interests of Directors are set out on page 36.
Corporate governance
Continued
34 Christie Group Annual Report 2011 Part 1 of this report sets out the Company’s remuneration policies for the
Directors for the year ended 31 December 2011. These policies are likely to
continue to apply in future years, unless there are specific reasons for change,
in which case shareholders will be informed in future reports. Part 2 sets out
details of the remuneration received by Directors during the year ended
31 December 2011.
Part 1. Remuneration Committee (not subject to audit)
The Remuneration Committee, which consists solely of Non-executive
Directors, makes recommendations to the Board on the framework of
executive remuneration and determines specific remuneration packages on
their behalf. The Chairman and Chief Executive attend the Remuneration
Committee meetings. The Chairman and Chief Executive are not present
when their own remuneration is being considered by the Committee.
The Committee’s policy is to provide a remuneration package which will
attract and retain Directors with the ability and experience required to
manage the Company and to provide superior long term performance. It is
the aim of the Committee to reward Directors competitively and on the broad
principle that their remuneration should be in line with the remuneration paid
to senior management of comparable companies. There are four main
elements of the remuneration package for Executive Directors: base salary,
annual bonus, benefits and share options.
•Base salary is reviewed annually and in setting salary levels the
Remuneration Committee considers the experience and responsibilities of
the Executive Directors and their personal performance during the previous
year . The committee also takes account of external market data, as well as
the rates of increases for other employees within the Company. Base salary
going forward is the only element of the package to determine future
pensionable earnings.
•Annual bonuses are calculated as a percentage of pre-tax profits in excess
of a threshold. Bonuses are designed to contribute approximately 25% of
total earnings, but they are normally uncapped.
•Benefits are primarily the provision of cars and health insurance.
•Share options are granted having regard to an individual’s seniority within
the business and, together with the Group’s Save As You Earn scheme
(SAYE), are designed to give Executive Directors an interest in the increase
in the value of the Group.
Service contracts and/or letters of appointment
Executive Directors
It is the Group’s policy to appoint Executive Directors under service
agreements terminable by either party giving a minimum of 6 months’ notice.
David Rugg has a two year notice period that was agreed on flotation of the
Company and this is still considered appropriate.
There are no predetermined provisions for compensation on termination
within Executive Directors’ service agreements. However the Group believes
that severance arrangements should be restricted to base pay and
consequential payments such as bonus and pension accrual. Nevertheless,
the circumstances of the termination and the individual’s duty and opportunity
to mitigate loss would be taken into account.
Non-executive Directors
The Non-executive Directors have a letter of appointment, which specifies
an initial appointment of three years. Their appointment is subject to Board
approval and election by shareholders at the annual general meeting
following appointment and, thereafter, re-election by rotation. There are
no provisions for compensation payments on early termination in the
Non-executives’ letters of appointment.
The fees of the Non-executive Directors are determined by the Chairman
and the Chief Executive and are designed to reflect the time and experience
which these Directors bring to the Company.
Outside directorships
Other than the Chairman, none of the Executive Directors hold external
Non-executive directorship positions. The Chairman has no commitments
that impact adversely on his role as Chairman.
Remuneration report
Christie Group Annual Report 2011 35 Part 2. Directors’ Emoluments
Salary, Ex Gratia
Commissions & Fees Payments Bonus Benefits Pensions 2011 2010
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Philip Gwyn 150 –– 20 21 191 190
David Rugg* 333 –3 40 – 376 372
Chris Day** 285 –1 21 29 336 573
Dan Prickett*** 120 –– 10 4 134 84
Paul Harding**** 75 – 15 88 106 –
Robert Zenker***** ––– –– – 129
Tony Chambers 25 ––– – 25 25
Pommy Sarwal 50 ––– – 50 50
Michael Likierman****** 11 ––– – 11 25
1,049 – 19 99 62 1,229 1,448
* David Rugg voluntarily reduced his annual salary by 10% with effect from 1 June 2009 which was restored with effect from 1 July 2011.
** Chris Day accepted a 10% reduction in basic salary with effect from 1 June 2009 which was restored with effect from 1 July 2011.
*** Dan Prickett was appointed to the Board on 22 March 2010 and his comparative figures for 2010 reflect this appointment date.
**** Paul Harding was appointed to the Board on 1 July 2011.
***** Robert Zenker resigned from the Board on 22 March 2010.
****** Michael Likierman retired from the Board on 15 June 2011.
At the year end the highest paid Director had accrued benefits under company
pension schemes as set out below:
2011 2010
£’000 £’000
Defined benefit scheme:
Accrued pension at end of year 196 163
The highest paid director did not exercise any share options during the year .
Directors’ pension entitlements
The Company contributed £21,000 (2010: £21,000) for Philip Gwyn to a self-
administered pension fund. David Rugg and Chris Day are members of the
Christie Group plc Pension & Assurance Scheme managed by Hanover
Pensions Limited. P Harding and D Prickett both receive employer
contributions as members of the Company defined contribution scheme.
Directors’ interests
Details of the Directors’ interests in the ordinary shares of the Company are
set below:
31 Mar 2011 31 Dec 2011 31 Dec 2010
Philip Gwyn 10,967,582 10,967,582 10,967,582
David Rugg 2,596,860 2,596,860 2,496,860
Chris Day 606,068 606,068 606,068
Michael Likierman – – 300,000
Paul Harding 200,000 200,000 –
Tony Chambers 125,690 125,690 125,690
Pommy Sarwal – ––
Dan Prickett – ––
In addition to interests shown above the following directors hold share options
under company share option schemes:
•Dan Prickett holds 50,000 share options, granted in May 2009 and
September 2009 exercisable between May 2012 and September 2019.
•Paul Harding holds 25,000 share options, granted in May 2009 exercisable
between May 2012 and May 2019.
•Chris Day holds 50,000 share options, granted in May 2009 exercisable
between May 2012 and May 2019.
Share options
During the year none of the Executive Directors were awarded share options
under long term incentive schemes (2010: nil).
The market price of the shares at 31 December 2011 was 62.5p
(31 December 2010: 55.5p) and the range during the year was 41.5p to 72.5p
(year to 31 December 2010: 37.5p to 62.5p).
Remuneration report
Continued
36 Christie Group Annual Report 2011 The directors are responsible for preparing the Directors’ Report and the
financial statements in accordance with applicable laws and regulations.
Company law requires the directors to prepare financial statements for each
financial year . Under that law the directors have elected to prepare the
financial statements in accordance with applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union and,
as regards the parent company financial statements, as applied in accordance
with the provisions of the Companies Act 2006. Under company law the
directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the company and of
the group and of the profit or loss of the group for that period. In preparing
these financial statements, the directors are required to:
•select suitable accounting policies and then apply them consistently;
•make judgements and accounting estimates that are reasonable and prudent;
•state that the financial statements comply with IFRSs as adopted by the
European Union; and
•prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the group will continue in business.
The directors are responsible for keeping adequate accounting records that
are sufficient to show and explain the company’s transactions and disclose
with reasonable accuracy at any time the financial position of the company
and enable them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding the assets of
the company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate
and financial information included on the company’s website. Legislation in the
United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Statement of directors’ responsibilities
Christie Group Annual Report 2011 37 We have audited the financial statements of Christie Group plc for the year
ended 31 December 2011 which comprise the Consolidated Statement of
Comprehensive Income, the Consolidated and Parent Company Statements of
Financial Position, the Consolidated Statement of Cash Flows, the
Consolidated and Parent Company Statements of Changes in Shareholders’
Equity and the related notes 1 to 34. The financial reporting framework that
has been applied in their preparation is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union and,
as regards the parent company financial statements, as applied in accordance
with the provisions of the Companies Act 2006.
This report is made solely to the company’s members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company’s members those matters
we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company’s members as a body, for
our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities Statement set
out on page 37, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial
statements in accordance with applicable law and International Standards
on Auditing (UK and Ireland). Those standards require us to comply with the
Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on
the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion:
•the financial statements give a true and fair view of the state of the group’s
and of the parent company’s affairs as at 31 December 2011 and of the
group’s loss for the year then ended;
•the group financial statements have been properly prepared in accordance
with IFRSs as adopted by the European Union;
•the parent company financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union and as applied in
accordance with the provisions of the Companies Act 2006; and
•the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial
year for which the financial statements are prepared is consistent with the
financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the
Companies Act 2006 requires us to report to you if, in our opinion:
•adequate accounting records have not been kept by the parent company, or
returns adequate for our audit have not been received from branches not
visited by us; or
•the parent company financial statements are not in agreement with the
accounting records and returns; or
•certain disclosures of directors’ remuneration specified by law are not
made; or
•we have not received all the information and explanations we require
for our audit.
Michael Bishop
Senior Statutory Auditor, for and on behalf of
Nexia Smith & Williamson
Statutory Auditor
Chartered Accountants
25 Moorgate
London
EC2R 6AY
3 April 2012
Independent auditor’s report
To the members of Christie Group plc
38 Christie Group Annual Report 2011 2011
Before 2011 2010
exceptional Exceptional 2011 Total
items items Total (restated)
Note £’000 £’000 £’000 £’000
Revenue 6 53,230 60 53,290 48,905
Employee benefit expenses 7 (37,466) (310) (37,776) (33,972)
15,764 (250) 15,514 14,933
Depreciation and amortisation 6 (434) (3) (437) (497)
Impairment (charge)/credit 21 92 – 92 566
Other operating expenses (14,677) (152) (14,829) (13,960)
Operating profit/(loss) 745 (405) 340 1,042
Finance costs 8 (104) – (104) (126)
Finance income 8 1– 1 23
Total finance costs 8 (103) – (103) (103)
Profit/(loss) before tax 9 642 (405) 237 939
Taxation 10 (386) – (386) 455
Profit/(loss) for the year after tax 256 (405) (149) 1,394
Other comprehensive (losses)/income:
Exchange differences on translating foreign operations (57) 35
Other comprehensive (losses)/income for the period, net of tax (57) 35
Total comprehensive (losses)/income for the year (206) 1,429
(Loss)/profit for the period after tax attributable to:
Equity shareholders of the parent (114) 1,394
Non-Controlling interest (35) –
(149) 1,394
Earnings per share attributable to equity holders – pence
– Basic 12 (0.46) 5.64
– Fully diluted 12 (0.46) 5.62
All the amounts derive from continuing activities.
Exceptional items represent the costs of new operations commenced during the year . (See notes 2.5 and 33).
The 2010 results are re-stated to separately identify amounts recognised in the statement of comprehensive income in relation to the impairment of trade
receivables, previously included within “Other operating expenses”. No other changes have been made.
Consolidated statement of comprehensive income
For the year ended 31 December 2011
Christie Group Annual Report 2011 39 Attributable to the Equity Holders of the Company
Fair value and Cumulative Non-
Share other reserves translation Retained controlling Total 
capital (Note 23) reserve earnings interest equity 
For the year ended 31 December 2010 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2010 505 3,106 476 (3,119) – 968
Profit for the year after tax – –– 1,394 – 1,394
Exchange differences on translating foreign operations –– 35 –– 35
Total comprehensive income for the period –– 35 1,394 – 1,429
Movement in respect of employee share scheme – 383 – (410) – (27)
Employee share option scheme:
– value of services provided – 86 – –– 86
Balance at 31 December 2010 505 3,575 511 (2,135) – 2,456
Attributable to the Equity Holders of the Company
Fair value and Cumulative Non-
Share other reserves translation Retained controlling Total 
capital (Note 23) reserve earnings interest equity 
For the year ended 31 December 2011 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2011 505 3,575 511 (2,135) – 2,456
Loss for the year after tax – –– (114) (35) (149)
Exchange differences on translating foreign operations –– (57) –– (57)
Total comprehensive losses for the period –– (57) (114) (35) (206)
Movement in respect of employee share scheme – 38 – –– 38
Employee share option scheme:
– value of services provided – 72 – –– 72
Dividends paid – –– (244) – (244)
Balance at 31 December 2011 505 3,685 454 (2,493) (35) 2,116
Consolidated statement of changes in shareholders’ equity
As at 31 December 2011
40 Christie Group Annual Report 2011 2011 2010
Note £’000 £’000
Assets
Non-current assets
Intangible assets – Goodwill 13 1,011 1,011
Intangible assets – Other 14 145 184
Property, plant and equipment 15 606 591
Deferred tax assets 16 3,039 3,425
Available-for-sale financial assets 17a 300 300
Other receivables 18 904 904
6,005 6,415
Current assets
Inventories 19 1 1
Trade and other receivables 21 11,225 9,377
Current tax assets 72 93
Cash and cash equivalents 20 1,059 2,323
12,357 11,794
Total assets 18,362 18,209
Equity
Capital and reserves attributable to the Company’s equity holders
Share capital 22 505 505
Fair value and other reserves 23 3,685 3,575
Cumulative translation reserve 454 511
Retained earnings 23 (2,493) (2,135)
2,151 2,456
Non-Controlling interest 33 (35) –
Total equity 2,116 2,456
Liabilities
Non-current liabilities
Retirement benefit obligations 24 2,376 3,222
Provisions 27 554 2,093
2,930 5,315
Current liabilities
Trade and other payables 25 8,265 8,580
Borrowings 26 3,091 1,717
Provisions 27 1,960 141
13,316 10,438
Total liabilities 16,246 15,753
Total equity and liabilities 18,362 18,209
These consolidated financial statements have been approved for issue by the Board of Directors on 3 April 2012.
D B Rugg D R Prickett
Chief Executive Chief Financial Officer
Consolidated statement of financial position
As at 31 December 2011
Christie Group Annual Report 2011 41 2011 2010
Note £’000 £’000
Cash flow from operating activities
Cash (used in)/generated from operations 28 (1,907) 295
Interest paid (104) (126)
Tax received – 33
Net cash (used in)/generated from operating activities (2,011) 202
Cash flow from investing activities
Purchase of property, plant and equipment (PPE) (420) (306)
Proceeds from sale of PPE – 7
Intangible asset expenditure (7) (92)
Interest received 1 23
Net cash used in investing activities (426) (368)
Cash flow from financing activities
Net proceeds from/(payment to) the purchase & sale of shares held by ESOP 38 (28)
Proceeds from/(repayments of) invoice finance 397 (255)
Dividends paid (244) –
Net cash generated from/(used in) financing activities 191 (283)
Net decrease in cash (2,246) (449)
Cash and cash equivalents at beginning of year 1,232 1,723
Exchange gains/(losses) on euro bank accounts 5 (42)
Cash and cash equivalents at end of year (1,009) 1,232
Consolidated statement of cash flows
For the year ended 31 December 2011
42 Christie Group Annual Report 2011 Attributable to the Equity Holders of the Company
Fair value and
Share other reserves Retained Total 
capital (Note 23) earnings equity 
For the year ended 31 December 2010 £’000 £’000 £’000 £’000
Balance at 1 January 2010 505 2,679 4,499 7,683
Total comprehensive losses for the period –– (139) (139)
Movement in respect of employee share scheme – 383 (410) (27)
Employee share options scheme
– value of services provided – (1) – (1)
Balance at 31 December 2010 505 3,061 3,950 7,516
Attributable to the Equity Holders of the Company
Fair value and
Share other reserves Retained Total 
capital (Note 23) earnings equity 
For the year ended 31 December 2011 £’000 £’000 £’000 £’000
Balance at 1 January 2011 505 3,061 3,950 7,516
Total comprehensive losses for the period –– (514) (514)
Movement in respect of employee share scheme – 39 – 39
Balance at 31 December 2011 505 3,100 3,436 7,041
Company statement of changes in shareholders’ equity
As at 31 December 2011
Christie Group Annual Report 2011 43 2011 2010
Note £’000 £’000
Assets
Non-current assets
Investments in subsidiaries 17 2,563 2,563
Deferred tax assets 16 626 569
Available-for-sale financial assets 17a 300 300
Other receivables 18 7,175 6,090
10,664 9,522
Current assets
Trade and other receivables 21 2,958 2,459
Current tax assets 72 72
Cash and cash equivalents 20 1 55
3,031 2,586
Total assets 13,695 12,108
Equity
Capital and reserves attributable to the Company’s equity holders
Share capital 22 505 505
Fair value and other reserves 23 3,100 3,061
Retained earnings 23 3,436 3,950
Total equity 7,041 7,516
Liabilities
Non-current liabilities
Retirement benefit obligations 24 286 335
286 335
Current liabilities
Trade and other payables 25 4,451 3,260
Borrowings 26 1,917 997
6,368 4,257
Total liabilities 6,654 4,592
Total equity and liabilities 13,695 12,108
These Company financial statements have been approved for issue by the Board of Directors on 3 April 2012.
D B Rugg D R Prickett
Chief Executive Chief Financial Officer
Company statement of financial position
As at 31 December 2011
44 Christie Group Annual Report 2011 2011 2010
Note £’000 £’000
Cash flow from operating activities
Cash (used in)/generated from operations 28 (834) 648
Interest paid (122) (126)
Net cash (used in)/generated from operating activities (956) 522
Cash flow from investing activities
Investment in fixed asset investments – (303)
Investment income from fixed asset investments – 350
Interest received 192 187
Net cash generated from investing activities 192 234
Cash flow from financing activities
Dividends paid (244) –
Net proceeds from/(payment to) the purchase & sale of shares held by ESOP 39 (28)
Net cash used in financing activities (205) (28)
Net (decrease)/increase in net cash (969) 728
Cash and cash equivalents at beginning of year (942) (1,663)
Exchange loss on euro bank account (5) (7)
Cash and cash equivalents at end of year (1,916) (942)
Company statement of cash flows
For the year ended 31 December 2011
Christie Group Annual Report 2011 45 1. General information
2. Summary of significant accounting policies
Christie Group plc is the parent undertaking of a group of companies covering a
range of related activities. These fall into two divisions – Professional Business
Services and Stock & Inventory Systems & Services. Professional Business
Services principally covers business valuation, consultancy and agency,
mortgage and insurance services, and business appraisal. Stock & Inventory
Systems & Services covers stock audit and counting, compliance and food
safety audits and inventory preparation and valuation, hospitality and
cinema software.
Accounting policies for the year ended 31 December 2011
The principal accounting policies adopted in the preparation of these financial
statements are set out below. These policies have been consistently applied to
all years presented, unless otherwise stated.
2.1 Basis of preparation
The consolidated and Company financial statements of Christie Group plc
have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union (IFRSs as adopted by
the EU), IFRIC Interpretations and the Companies Act 2006 applicable to
Companies reporting under IFRS. The consolidated and Company financial
statements have been prepared under the historical cost convention with the
exception of available for sale financial assets and defined benefit pension
scheme, and on a going concern basis.
The financial statements have been prepared in accordance with IFRS and
IFRIC interpretations issued and effective or issued and early adopted as at
the time of preparing these statements (April 2012).
The preparation of financial statements in accordance with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the group’s accounting
policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the consolidated
and parent company financial statements are disclosed in Note 4.
New and amended standards adopted by the group
None of the new standards, interpretations and amendments, effective for the
first time from 1 January 2011, have had a material effect on the financial
statements of the Group or the Company.
Standards, interpretations and amendments to published standards
that are not yet effective
Certain new standards, amendments and interpretations to existing standards
have been published that are mandatory for the Group or Company’s
accounting periods beginning after 1 January 2012 or later periods and have
not been early adopted. It is anticipated that none of these new standards,
interpretations and amendments currently in issue at the time of preparing the
financial statements (April 2012) will have a material effect on the consolidated
financial statements of the Group, except for IAS 19 ‘Employee benefits’ which
becomes mandatory for the Group’s 2013 consolidated financial statements.
IAS 19, ‘Employee benefits’ was amended in June 2011. The impact on the
group will be as follows: to eliminate the corridor approach and recognise all
actuarial gains and losses in Other Comprehensive Income as they occur; to
immediately recognise all past service costs; and to replace interest cost and
expected return on plan assets with a net interest amount that is calculated
by applying the discount rate to the net defined benefit liability (asset). The
group does not plan to adopt this standard early and the extent of the impact
will be assessed when the standard becomes effective.
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 2011. The results of businesses acquired or disposed of are
included from or to the date of acquisition or disposal.
A subsidiary is an entity controlled, directly or indirectly, by Christie Group plc.
Control is regarded as the power to govern the financial and operating
policies of the entity so as to obtain the benefits from its activities.
Non controlling interests
Total comprehensive income within a subsidiary is attributed to the non-
controlling interest even if that results in a deficit balance.
2.3 Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are
measured using the currency of the primary economic environment in which
the entity operates (‘the functional currency’). The consolidated financial
statements are presented in sterling, which is the Group’s and Company’s
functional and presentation currency.
46 Christie Group Annual Report 2011
Notes to the consolidated financial statements 2. Summary of significant accounting policies continued
Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions
and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the statement
of comprehensive income.
Group companies
The results and financial position of all the group entities (none of which has
the currency of a hyperinflationary economy) that have a functional currency
different from the presentation currency are translated into the presentation
currency as follows:
a) assets and liabilities for each statement of financial position presented
are translated at the closing rate at the date of that statement of
financial position;
b) income and expenses for each statement of comprehensive income are
translated at average exchange rates; and
c) all resulting exchange differences are recognised as a separate component
of equity, the cumulative translation reserve.
On consolidation, exchange differences arising from the translation of the net
investment in foreign entities, are taken to shareholders’ equity. When a
foreign operation is sold, such exchange differences are recognised in the
statement of comprehensive income as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and translated
at the closing rate.
2.4 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for
the sale of goods and services provided in the ordinary course of the Group’s
activities. Revenue derived from the Group’s principal activities (which is shown
exclusive of applicable sales taxes or equivalents) is recognised as follows:
Agency, consultancy and valuations
Net agency fees are recognised as income on exchange of contracts.
Consultancy income is recognised in the accounting period in which the service
is rendered, assessed on the basis of actual service provided as a proportion of
the total services provided. In respect of valuations, turnover is recognised once
the property or business has been inspected. Appraisal income is recognised in
the accounting period in which the service is rendered, assessed on the basis of
actual service provided as a proportion of the total services to be provided.
Business mortgage broking
Fee income is taken either when a loan offer is secured or when the loan is
drawn down.
Insurance broking
Insurance brokerage is accounted for when the insurance policy commences.
Software
Hardware revenues are recognised on installation or as otherwise specified in
the terms of the contract. Software revenues are recognised on delivery or as
otherwise specified in the terms of the contract. Revenues on maintenance
contracts are recognised over the period of the contracts. Revenue in respect
of services, such as implementation, training and consultancy, are recognised
when the services are performed.
Stock & inventory services
Fees are recognised on completion of the visit to client’s premises.
Other income is recognised as follows:
Interest income
Interest income is recognised on a time-proportion basis using the effective
interest method.
Dividend income
Dividend income is recognised when the right to receive payment is established.
2.5 Exceptional items
Exceptional items are disclosed separately in the financial statements where
it is necessary to do so to provide further understanding of the financial
performance of the group. They are material items of income or expense that
have been shown separately due to the significance of their nature or amount.
2.6 Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker as required by
IFRS 8 “Operating Segments”. The chief operating decision-maker, who is
responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of Directors.
The Group operating segments are defined as Professional Business
Services, Stock & Inventory Systems & Services, and Other . Within these
segments, the Board of Directors distinguish between European-based
operations and those operations based overseas on the basis that the risks
and returns may vary depending on the economic environment.
Christie Group Annual Report 2011 47 Notes to the consolidated financial statements
Continued
48 Christie Group Annual Report 2011
Segment assets and liabilities include items that are directly attributable to a
segment plus an allocation on a reasonable basis of shared items. Any
current and deferred tax assets and liabilities are not included in business
segments and are thus unallocated.
All transactions between reportable segments are at arm’s length.
2.7 Intangible assets
Goodwill
On the acquisition of a business, fair values are attributed to the net assets
acquired. Goodwill arises on the acquisition of subsidiary undertakings,
representing any excess of the fair value of the consideration given over the
fair value of the identifiable assets and liabilities acquired. Goodwill arising on
acquisitions is capitalised and subject to impairment review, both annually
and when there are indications that the carrying value may not be
recoverable. Goodwill arising on acquisitions prior to the date of transition to
IFRS has been retained at previous UK GAAP amounts as permitted by IFRS 1
‘First time adoption of International Accounting Standards’. Prior to 1 January
2004, goodwill was amortised over its estimated useful lives. Such
amortisation ceased on 31 December 2003, subject to an impairment review
at the date of transition, in which no impairment was recognised. The Group’s
policy for the years up to 31 March 1998 was to eliminate goodwill arising on
acquisitions against reserves. As permitted by IFRS 1 and IFRS 3, such
goodwill remains eliminated against reserves.
Other
Intangible fixed assets such as software, trademarks and patent rights are
stated at cost, net of amortisation and any provision for impairment.
Amortisation is calculated to write down the cost of all intangible fixed assets to
their estimated residual value by equal annual instalments over their expected
useful economic lives. The expected useful lives are between one and five years.
2.8 Property, plant and equipment
Tangible fixed assets are stated at cost, net of depreciation and provision for
any impairment. Depreciation is calculated to write down the cost of all
tangible fixed assets to estimated residual value by equal annual instalments
over their expected useful lives as follows:
Leasehold property Lease term
Fixtures, fittings and equipment 5 – 10 years
Computer equipment 2 – 3 years
Motor vehicles 4 years
The assets’ residual values and useful lives are reviewed, and adjusted if
appropriate, at each statement of financial position date. An asset’s carrying
amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the disposal
proceeds with the carrying amount and are included in the statement of
comprehensive income.
2.9 Leases
Leases where the lessor retains a significant portion of the risks and rewards
of ownership are classified as operating leases. Rentals under operating
leases (net of any incentives received) are charged to the statement of
comprehensive income on a straight-line basis over the period of the lease.
Assets, held under finance leases, which confer rights and obligations similar
to those attached to owned assets, are capitalised as tangible fixed assets and
are depreciated over the shorter of the lease terms and their useful lives.
The capital elements of future lease obligations are recorded as liabilities,
whilst the interest elements are charged to the statement of comprehensive
income over the period of the leases at a constant rate.
2.10 Impairment of assets
Non-current assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the
asset’s carrying value exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and value in
use. Value in use is based on the present value of the future cash flows
relating to the asset, and is determined over periods which are deemed to
appropriately reflect the minimum expected period that the cash generating
unit will operate for. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash
flows (cash generating units), and their carrying value assessed against
management’s projection of the present value of cashflows arising over a
projected period of 5 years from the balance sheet date, using growth rates
determined by management.
Any assessment of impairment based on value in use takes account of the
time value of money and the uncertainty or risk inherent in the future cash
flows. The discount rates applied reflect current market assessments of the
time value of money and the risks specific to the asset for which the future
cash flow estimates have not been adjusted.
2.11 Investments
The Group classifies its investments depending on the purpose for which the
investments were acquired. Management determines the classification of its
investments on purchase and re-evaluates this designation at every reporting
date. Fixed asset investments in subsidiaries are shown at cost less any
provision for impairment.
2. Summary of significant accounting policies continued Christie Group Annual Report 2011 49
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.
The fair values of quoted investments are based on current bid prices. If the
market for a financial asset is not active (and for unlisted securities), the
Group establishes fair value by using valuation techniques. For investments in
equity instruments and unlisted securities that do not have a quoted market
price in an active market and whose fair value can not be reliably measured
these are valued at cost.
The Group assesses at each statement of financial position date whether
there is objective evidence that a financial asset or a group of financial assets
is impaired. In the case of equity securities classified as available-for-sale, a
significant or prolonged decline in the fair value of the security below its cost
is considered in determining whether the securities are impaired.
2.12 Inventories
Inventories held for resale are valued at the lower of cost and net realisable value.
2.13 Trade receivables
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less
provision for impairment. A provision for impairment of trade receivables is
established when there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of receivables. The
amount of the provision is the difference between the asset’s carrying amount
and the present value of estimated future cash flows. The amount of the
provision is recognised in the statement of comprehensive income.
2.14 Cash and cash equivalents
Cash and cash equivalents are recognised initially at fair value and
subsequently measured at amortised cost. Cash and cash equivalents
comprise cash in hand, deposits held on call with banks, other short-term,
highly liquid investments with original maturities of three months or less, and
bank overdrafts. Bank overdrafts are included within borrowings in current
liabilities on the statement of financial position.
2.15 Borrowings
Borrowings are recognised initially at fair value. Borrowings are subsequently
stated at amortised cost; any difference between proceeds and the
redemption value is recognised in the statement of comprehensive income
over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12 months
after the statement of financial position date.
2.16 Taxation including deferred tax
Tax on company profits is provided for at the current rate applicable in each
of the relevant territories.
Deferred tax is provided in full, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, if the
deferred tax arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss, it is not
accounted for . Deferred tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the statement of financial position
date and are expected to apply when the related deferred tax asset is realised
or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be
utilised. This is reviewed annually.
2.17 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.
2.18 Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a
liability in the Group’s financial statements in the period in which the
dividends are approved by the Company’s shareholders. In respect of interim
dividends, which are paid prior to approval by the Company’s shareholders
they are recognised on payment.
2. Summary of significant accounting policies continued 2.19 Invoice finance
Trade receivables are subject to an invoice finance facility whereby an advance
is received based upon and secured upon trade receivables. The carrying
value is stated at the fair value of the amount repayable at the date of the
statement of financial position.
2.20 Employee benefits
Pension obligations
The Group has both defined benefit and defined contribution schemes.
A defined benefit scheme is a pension scheme that defines the amount of
pension benefit that an employee will receive on retirement, usually
dependent on one or more factors such as age, years of service and
remuneration. A defined contribution scheme is a pension scheme under
which the Group pays fixed contributions into a separate entity. The schemes
are generally funded through payments to insurance companies or trustee-
administered funds, determined by periodic actuarial calculations.
Pension obligations – Defined benefit schemes
The liability recognised in the statement of financial position in respect of defined
benefit pension schemes is the present value of the defined benefit obligation at
the statement of financial position date less the fair value of scheme assets,
together with adjustments for unrecognised actuarial gains or losses and past
service costs. The defined benefit obligation is calculated annually by
independent actuaries using the projected unit credit method. The present value
of the defined benefit obligation is determined by discounting the estimated
future cash outflows using interest rates of high-quality corporate bonds that are
denominated in the currency in which the benefits will be paid, and that have
terms to maturity approximating to the terms of the related pension liability.
Cumulative actuarial gains and losses arising from experience adjustments
and changes in actuarial assumptions in excess of the greater of 10% of the
value of scheme assets or 10% of the defined benefit obligation are charged
or credited to the statement of comprehensive income over the employees’
expected average remaining period till the scheme retirement date.
Past-service costs are recognised immediately in the statement of
comprehensive income, unless the changes to the pension scheme are
conditional on the employees remaining in service for a specified period of
time (the vesting period). In this case, the past-service costs are amortised on
a straight-line basis over the vesting period.
Pension obligations – Personal pension scheme
Group companies contribute towards a personal pension scheme for their
participating employees. These employees are currently entitled to such
contributions after a qualifying period has elapsed. Payments to the scheme
are charged as an employee benefit expense as they fall due. The Group has
no further payment obligations once the contributions have been paid.
Share based compensation
The fair value of employee share option schemes, including Save As You Earn
(SAYE) schemes, is measured by a Black-Scholes pricing model. Further
details are set out in Note 22a. In accordance with IFRS 2 ‘Share-based
Payments’ the resulting cost is charged to the statement of comprehensive
income over the vesting period of the options. The value of the charge is
adjusted to reflect expected and actual levels of options vesting.
No expense was recognised in respect of share options granted before
7 November 2002 and those which had vested before 1 January 2005.
For share options granted after 7 November 2002 and vested after 1 January
2005 the Group operates an equity-settled, long term incentive plan designed
to align management interests with those of shareholders. The fair value of
the employee’s services received in exchange for the grant of the options is
recognised as an expense. The total amount to be expensed over the vesting
period is determined by reference to the fair value of the options granted,
excluding the impact of any non-market vesting conditions (for example,
profitability and sales growth targets). Non-market vesting conditions are
included in assumptions about the number of options that are expected to
become exercisable. At each statement of financial position date, the entity
revises its estimates of the number of options that are expected to become
exercisable. It recognises the impact of the revision of original estimates, if
any, in the statement of comprehensive income, and a corresponding
adjustment to equity.
Commissions and bonus plans
The Group recognises a liability and an expense for commissions and
bonuses, based on formula driven calculations. The Group recognises a
provision where contractually obliged or where there is a past practice that
has created a constructive obligation.
2.21 Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation. Where the Group expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the income
statement net of any reimbursement. If the effect of the time value of money
is material, provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
Notes to the consolidated financial statements
Continued
50 Christie Group Annual Report 2011
2. Summary of significant accounting policies continued The Group uses a limited number of financial instruments, comprising cash,
short-term deposits, bank loans and overdrafts and various items such
as trade receivables and payables, which arise directly from operations.
The Group does not trade in financial instruments.
3.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk
(including currency risk, and interest rate risk), credit risk, liquidity risk and
cash flow interest rate risk. The Group’s overall risk management programme
focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Group’s financial performance.
a) Market risk
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange
risk arising from various currency exposures, primarily with respect to
the Euro. Foreign exchange risk arises from future commercial
transactions, recognised assets and liabilities and net investments in
foreign operations.
The Group has certain investments in foreign operations, whose net assets
are exposed to foreign currency translation risk.
At 31 December 2011, if sterling had strengthened by 10% against the
Euro, with all other variables held constant, the post tax profit for the year
would have been £20,000 higher (2010: £10,000 lower) mainly as a result of
foreign exchange gains/losses on translation of Euro denominated trade
receivables, cash and cash equivalents, and trade payables. Applying the
same variables to foreign exchange differences recognised directly in equity
the effect would be a reduction in equity of £20,000 (2010: £46,000).
b) Credit risk
The Group has no significant concentrations of credit risk and has policies
in place to ensure that sales are made to customers with an appropriate
credit history.
c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash
and available funding through an adequate amount of committed credit
facilities. The Group ensures it has adequate cover through the availability
of bank overdraft and loan facilities.
At 31 December 2011 total borrowings by the Group amounted to
£3,091,000 (2010: £1,717,000), with additional available unutilised credit
facilities at 31 December 2011 of £2,078,000 (2010: £2,945,000).
Cash and cash equivalents comprise cash in hand, deposits held at call
with banks and other short-term highly liquid investments with original
maturities of three months or less. Total cash and cash equivalents held
by the group at 31 December 2011 were £1,059,000 (2010: £2,323,000).
d) Cash flow and interest rate risk
The Group finances its operations through a mix of cash flow from current
operations together with cash on deposit and bank and other borrowings.
Borrowings are generally at floating rates of interest and no use of interest
rate swaps has been made.
The Group’s interest rate risk arises from cash balances and borrowings
subject to variable interest rates. For the year ended 31 December 2011,
assuming all other variables remained equal but interest rates were 1%
higher or lower throughout the year, the impact on post tax losses would
be a maximum increase or decrease of £1,000 (2010: £14,000).
3.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain a capital
structure appropriate for its growth plans.
In order to maintain or adjust the capital structure, the Group may adjust the
amount of dividends paid to shareholders or alter debt levels.
Christie Group Annual Report 2011 51
3. Financial risk management Estimates and judgements are continually evaluated and are based on
historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
4.1 Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The
resulting accounting estimates will by definition, seldom equal the related
actual results. The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
a) Estimated impairment of goodwill
Goodwill is subject to an impairment review both annually and when there
are indications that the carrying value may not be recoverable, in accordance
with the accounting policy stated in Note 2.7. The recoverable amounts of
cash-generating units have been determined based on value-in-use
calculations. These calculations require the use of estimates (Note 13).
b) Retirement benefit obligations
The assumptions used to measure the expense and liabilities related to the
Group’s two defined benefit pension plans are reviewed annually by
professionally qualified, independent actuaries, trustees and management
as appropriate. Management base their assumptions on their understanding
and interpretation of applicable scheme rules which prevail at the statement
of financial position date. The measurement of the expense for a period
requires judgement with respect to the following matters, among others:
• the probable long-term rate of increase in pensionable pay;
• the discount rate;
• the expected return on plan assets; and
• the estimated life expectancy of participating members.
The assumptions used by the Group, as stated in Note 24, may differ
materially from actual results, and these differences may result in a
significant impact on the amount of pension expense recorded in future
periods. In accordance with IAS 19, the Group amortises actuarial gains
and losses outside the 10% corridor, over the average future service lives of
employees. Under this method, major changes in assumptions, and
variances between assumptions and actual results, may affect retained
earnings over several future periods rather than one period, while more
minor variances and assumption changes may be offset by other changes
and have no direct effect on retained earnings.
c) Deferred taxation
Deferred tax assets are recognised to the extent that the Group believes it is
probable that future taxable profit will be available against which temporary
timing differences and losses from previous periods can be utilised.
Management judgement is required to determine the amount of deferred
tax assets that can be recognised, based upon the likely timing and the
level of future taxable profits together with future tax planning strategies.
Notes to the consolidated financial statements
Continued
52 Christie Group Annual Report 2011
4. Critical accounting estimates and judgements
As permitted by section 408 of the Companies Act 2006 the Income Statement of the Parent Company is not presented as part of these financial statements.
The Parent Company made a loss after tax of £270,000 (2010: £139,000). It had dividends paid of £244,000 making total comprehensive losses for the year
of £514,000.
5. Loss of the parent company 6. Segment information
The Group is organised into two main operating segments: Professional Business Services and Stock & Inventory Systems & Services.
The segment results for the year ended 31 December 2011 are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
Total gross segment sales 27,474 25,920 2,338 55,732
Inter-segment sales (104) – (2,338) (2,442)
Revenue 27,370 25,920 – 53,290
Operating (loss)/profit before exceptional items (57) 647 155 745
Exceptional items (405) –– (405)
Operating (loss)/profit after exceptional items (462) 647 155 340
Net finance (costs)/credit (121) (34) 52 (103)
Profit before tax 237
Taxation (386)
Loss for the year after tax (149)
The segment results for the year ended 31 December 2010 are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
Total gross segment sales 26,610 22,399 2,188 51,197
Inter-segment sales (104) – (2,188) (2,292)
Revenue 26,506 22,399 – 48,905
Operating profit/(loss) 1,508 298 (764) 1,042
Net finance (costs)/credit (125) (12) 34 (103)
Profit before tax 939
Taxation 455
Profit for the year after tax 1,394
Christie Group Annual Report 2011 53 6. Segment information continued
Other segment items included in the statements of comprehensive income for the years ended 31 December 2011 and 2010 are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
31 December 2011
Depreciation and amortisation 190 242 5 437
Impairment of trade receivables (143) 51 – (92)
31 December 2010
Depreciation and amortisation 202 273 22 497
Impairment of trade receivables (627) 61 – (566)
The segment assets and liabilities at 31 December 2011 and capital expenditure for the year then ended are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
Assets 6,832 5,519 2,900 15,251
Deferred tax assets 3,039
Current tax assets 72
18,362
Liabilities 7,070 4,688 1,397 13,155
Borrowings 3,091
16,246
Capital expenditure 147 277 3 427
The segment assets and liabilities at 31 December 2010 and capital expenditure for the year are as follows:
Stock & 
Professional Inventory Systems 
Business Services & Services Other Group
£’000 £’000 £’000 £’000
Assets 7,439 4,834 2,418 14,691
Deferred tax assets 3,425
Current tax assets 93
18,209
Liabilities 7,963 4,497 1,576 14,036
Borrowings 1,717
15,753
Capital expenditure 69 323 6 398
Notes to the consolidated financial statements
Continued
54 Christie Group Annual Report 2011 6. Segment information continued
Segment assets consist primarily of property, plant and equipment, intangible assets, inventories, receivables and operating cash. They exclude taxation.
Segment liabilities comprise operating liabilities. They exclude items such as taxation and corporate borrowings.
Capital expenditure comprises additions to property, plant and equipment and intangible assets.
The Group manages its operating segments on a global basis. The UK is the home country of the parent. The Group’s revenue is mainly generated in Europe.
Revenue is allocated below based on the country in which the customer is located.
2011 2010
£’000 £’000
Revenue
Europe 52,400 48,412
Rest of the World 890 493
53,290 48,905
Total segment assets are allocated based on where the assets are located.
2011 2010
£’000 £’000
Total segment assets
Europe 14,998 14,504
Rest of the World 253 187
15,251 14,691
Capital expenditure is allocated based on where the assets are located.
2011 2010
£’000 £’000
Capital expenditure
Europe 392 398
Rest of World 35 –
427 398
2011 2010
£’000 £’000
Analysis of revenue by category
Sale of goods 405 106
Revenue from services 52,885 48,799
53,290 48,905
Christie Group Annual Report 2011 55 7. Employee benefit expenses
2011 2010
Staff costs for the Group during the year £’000 £’000
Salaries and short term employee benefits* 35,101 31,252
Other benefits 1,198 1,372
Post employment benefits 986 585
Other long-term benefits 419 677
Cost of employee share scheme 72 86
37,776 33,972
*Includes exceptional items of £310,000 (2010: £nil).
2011 2010
Average number of people (including executive directors) employed by the Group during the year was Number Number
Operational 840 757
Administration and support staff 240 238
1,080 995
8. Finance costs
2011 2010
£’000 £’000
Interest payable on bank loans and overdrafts 75 70
Other interest payable 29 56
Total finance costs 104 126
Bank interest receivable (1) (5)
Other interest receivable – (18)
Total finance credit (1) (23)
Net finance costs 103 103
Notes to the consolidated financial statements
Continued
56 Christie Group Annual Report 2011 9. Profit/(loss) before tax
Group
2011 2010
£’000 £’000
Profit/(loss) before tax is stated after charging/(crediting):
Depreciation of property, plant and equipment
– owned assets 398 451
Amortisation of intangible fixed assets 39 46
Profit on sale of property, plant and equipment – 6
Operating lease charges
– buildings 1,448 1,319
– other 675 668
Impairment of trade receivables (see note 21) (92) (566)
Vacant leasehold provisions 52 50
Repairs and maintenance expenditure on property, plant and equipment 291 249
(Gain)/loss on foreign exchange (including Company gain £5,000 (2010: loss £7,000)) (16) 21
Services provided by the Group’s auditor
During the year the Group obtained the following services from the Group’s auditor as detailed below:
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Audit services
– audit of the parent company and consolidated financial statements 14 14 14 14
– audit of the subsidiary company financial statements 88 85 – –
Total audit fees 102 99 14 14
Pension scheme fees 11 11 – –
Other services pursuant to legislation 4 4 – –
Tax services 1 17 1 17
Other services
– other services 7 7 7 7
Christie Group Annual Report 2011 57 10. Taxation
2011 2010
£’000 £’000
Current tax
UK Corporation tax at 26.5% (2010: 28%) – 72
Foreign tax – 21
Adjustment in respect of prior periods – 4
Total current tax credit – 97
Deferred tax
Origination and reversal of timing differences (146) 358
Impact of change in the UK corporation tax rate (240) –
Total deferred tax (charge)/credit (386) 358
Tax (charge)/credit on profit/(loss) on ordinary activities (386) 455
The tax on the Group’s profit/(loss) before tax differs from the theoretical amount that would arise using the standard rate of corporation tax in the UK of 26.5% as follows:
Tax on profit/(loss) on ordinary activities
2010
2011 (restated)
£’000 £’000
Profit on ordinary activities before tax 237 939
Profit on ordinary activities at standard rate of UK corporation tax of 26.5% (2010: 28%) (63) (263)
Effects of:
– income not subject to tax 5 654
– expenses not deductible for tax purposes (205) (183)
– tax losses for which no deferred tax asset has previously been recognised 117 243
Re-measurement of deferred tax asset due to changes in the UK corporation tax rate (240) –
Adjustment to tax charge in respect of previous periods – 4
Total tax (charge)/credit (386) 455
During the year, as a result of the change in the UK corporation tax rate, the opening deferred tax balances have been re-measured. Deferred tax assets recognised at
1 January 2011 which had been measured at 27% at 31 December 2010 have been re-measured using the enacted rate that will apply at 31 December 2012 (25%).
11. Dividends
A dividend in respect of the year ended 31 December 2011 of 0.5p per share, amounting to a total dividend of £124,000, is to be proposed at the Annual General
Meeting on 13 June 2012. These financial statements do not reflect this proposed dividend.
Notes to the consolidated financial statements
Continued
58 Christie Group Annual Report 2011 12. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in
issue during the year, which excludes the shares held in the Employee Share Ownership Plan (ESOP) trust.
31 December 2011 31 December 2010
£’000 £’000
(Loss)/profit from continuing operations attributable to equity holders of the Company (114) 1,394
31 December 2011 31 December 2010
Thousands Thousands
Weighted average number of ordinary shares in issue 24,677 24,718
Adjustment for share options 189 67
Weighted average number of ordinary shares for diluted earnings per share 24,866 24,785
31 December 2011 31 December 2010
Pence Pence
Basic earnings per share
Continuing operations (0.46) 5.64
Fully diluted earnings per share
Continuing operations (0.46) 5.62
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.
13. Intangible assets – goodwill
Total
Group £’000
Cost
At 1 January 2011 and 31 December 2011 1,011
Total
Group £’000
Cost
At 1 January 2010 and 31 December 2010 1,011
Christie Group Annual Report 2011 59 13. Intangible assets – goodwill continued
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified according to business segment. The carrying amounts of goodwill by segment
as at 31 December 2011 are as follows:
Professional Stock & Inventory 
Business Services Systems & Services
£’000 £’000
Goodwill 178 833
During the year, the acquired goodwill was tested for impairment in accordance with IAS 36 on the basis of the relevant CGUs. Following the impairment tests there
has been no change to the carrying values. The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use cash flow
projections based on current business plans. The key assumptions for the value-in-use calculations are those regarding revenue growth rates, discount rates and
long-term growth rates. Management determined budgeted revenue growth based on past performance and its expectations for the market development. Discount
rates were determined using post-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGUs. Cash flows
beyond the five-year period are extrapolated using estimated long term growth rates obtained from HM Treasury for both the UK and Continental Europe.
The revenue growth rate does not exceed the long-term average growth rate for the businesses in which the CGUs operate.
Professional Stock & Inventory 
Business Services Systems & Services
%%
Discount rates 10.0 10.0
Long-term growth rates 2.5 2.5
14. Intangible assets – other
Software
Group £’000
Cost
At 1 January 2011 360
Additions 7
Disposals (30)
Foreign currency translation effects 1
At 31 December 2011 338
Accumulated amortisation and impairment
At 1 January 2011 176
Charge for the year 39
Disposals (30)
Foreign currency translation effects 8
At 31 December 2011 193
Net book amount at 31 December 2011 145
Notes to the consolidated financial statements
Continued
60 Christie Group Annual Report 2011 14. Intangible assets – other continued
Software
Group £’000
Cost
At 1 January 2010 296
Additions 95
Disposals (36)
Foreign currency translation effects 5
At 31 December 2010 360
Accumulated amortisation and impairment
At 1 January 2010 158
Charge for the year 46
Disposals (36)
Foreign currency translation effects 8
At 31 December 2010 176
Net book amount at 31 December 2010 184
15. Property, plant and equipment
Fixtures, fittings,
Short leasehold computer equipment 
property and motor vehicles Total
Group £’000 £’000 £’000
Cost
At 1 January 2011 303 2,918 3,221
Additions – 420 420
Disposals – (522) (522)
Foreign currency translation effects – (18) (18)
At 31 December 2011 303 2,798 3,101
Accumulated depreciation
At 1 January 2011 303 2,327 2,630
Charge for the year – 398 398
Disposals – (522) (522)
Foreign currency translation effects – (11) (11)
At 31 December 2011 303 2,192 2,495
Net book amount at 31 December 2011 – 606 606
Christie Group Annual Report 2011 61 15. Property, plant and equipment continued
Fixtures, fittings,
Short leasehold computer equipment 
property and motor vehicles Total
Group £’000 £’000 £’000
Cost
At 1 January 2010 303 3,130 3,433
Additions – 306 306
Disposals – (529) (529)
Foreign currency translation effects – 11 11
At 31 December 2010 303 2,918 3,221
Accumulated depreciation
At 1 January 2010 303 2,381 2,684
Charge for the year – 451 451
Disposals – (516) (516)
Foreign currency translation effects – 11 11
At 31 December 2010 303 2,327 2,630
Net book amount at 31 December 2010 – 591 591
16. Deferred tax
Deferred tax assets have been recognised in respect of tax losses and other temporary differences giving rise to deferred tax assets where it is probable that
these assets will be recovered.
The movements in deferred tax assets (prior to the offsetting of balances within the same jurisdiction as permitted by IAS 12) during the year are shown below.
Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net.
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Deferred tax assets comprises:
Depreciation in excess of capital allowances 802 765 1 3
Losses not yet utilised 822 793 363 279
Short-term timing differences 821 997 191 197
Deferred tax asset 2,445 2,555 555 479
Deferred tax asset on pension 594 870 71 90
At 31 December 3,039 3,425 626 569
Notes to the consolidated financial statements
Continued
62 Christie Group Annual Report 2011 16. Deferred tax continued
Movements in the deferred tax asset:
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
At 1 January 3,425 3,067 569 327
(Charged)/credited to statement of comprehensive income (386) 358 57 242
At 31 December 3,039 3,425 626 569
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
considered probable. The deferred tax asset of £822,000 (2010: £793,000) relating to losses not yet utilised is derived from unutilised tax losses of £3,288,000
(2010: £2,937,000). In considering the future probability that these losses will be fully utilised, the directors make reference to i) the past performance of
individual subsidiary entities and the sectors and markets within which they operate as an indicator of future trading potential, particularly for those entities
which are more subject to cyclical economic factors, ii) the budgeted performance of each entity and its ability to trade profitably and so utilise losses, iii) the
medium and long term strategy for profit generation applicable to each entity and iv) the circumstances which have given rise to the losses in the first instance.
Where the directors are satisfied that these loss-making circumstances no longer prevail and, having considered both previous actual and future anticipated
performance, that the future profitability of the operations from which the losses are derived will be sufficient to allow for the full utilisation of these losses, the
directors are satisfied that a deferred tax asset should be recognised accordingly.
The Group did not recognise deferred tax assets of £131,000 (2010: £139,000) in respect of losses amounting to £524,000 (2010: £518,000) that can be carried
forward against future taxable income as the realisation of the benefit cannot be assessed as probable as at 31 December 2011.
UK deferred tax assets have been recognised at the UK corporation tax rate of 25% effective from 1 April 2012.
The UK government has announced future changes to the Corporation tax rate. These changes, if enacted, will result in a decrease in the standard rate of
corporation tax to 24% in April 2012, reducing by 1% per annum to a standard rate of 22% in April 2014. As at 31 December 2011 the substantively enacted rate
remains at 25% and in accordance with applicable accounting standards the deferred tax asset has been calculated using this rate. In the event that the
proposed rate changes are substantively enacted the effect on the deferred tax asset of the Group would be a reduction of up to £342,000 (Company: £52,000).
17. Investments in subsidiaries
Total
Company £’000
Cost
At 1 January 2011 and 31 December 2011 6,149
Provision for impairment
At 1 January 2011 and 31 December 2011 3,586
Net book amount at 31 December 2011 2,563
Christie Group Annual Report 2011 63 17. Investments in subsidiaries continued
Total
Company £’000
Cost
At 1 January 2010 6,196
Additions 303
Written off (350)
At 31 December 2010 6,149
Provision for impairment
At 1 January 2010 3,936
Written off (350)
At 31 December 2010 3,586
Net book amount at 31 December 2010 2,563
Subsidiary undertakings
At 31 December 2011 the principal subsidiaries were as follows:
Company Country of incorporation Nature of business
Christie, Owen & Davies Ltd (trading as Christie + Co)* UK 100% Business valuers, surveyors and agents
Christie + Co SARL* France 100% Business valuers, surveyors and agents
Christie + Co GmbH* Germany 100% Business valuers, surveyors and agents
Christie, Owen & Davies SL* Spain 100% Business valuers, surveyors and agents
Christie + Co Oy* Finland 100% Business valuers, surveyors and agents
Christie + Co FZ LLC* United Arab Emirates 90% Business valuers, surveyors and agents
Pinders Professional & Consultancy Services Ltd UK 100% Business appraisers
RCC Business Mortgage Brokers Ltd (trading as Christie Finance) UK 100% Business mortgage brokers
RCC Insurance Brokers Ltd* (trading as Christie Insurance) UK 100% Insurance brokers
Orridge & Co Ltd UK 100% Stocktaking and inventory management services
Ridgecop Limited* UK 100% Stocktaking and inventory management services
Venners Ltd UK 100% Licensed stock and inventory auditors and valuers
Venners Systems & Services Ltd (trading as Vennersys) UK 100% EPoS, head office systems and merchandise control
Venners Systems & Services Corporation* (trading as Vennersys) Canada 100% EPoS, head office systems and merchandise control
*The Company directly or indirectly owns ordinary share capital of each of the above companies. Those designated with an asterisk represent indirect ownership.
Notes to the consolidated financial statements
Continued
64 Christie Group Annual Report 2011 17. Investments in subsidiaries continued
17a. Available-for-sale financial assets
Group Company
2011 2010 2011 2010
Non-current assets £’000 £’000 £’000 £’000
Cost
At 1 January 2011 and 31 December 2011 300 300 300 300
The available-for-sale financial assets are all denominated in sterling.
The available-for-sale financial asset represents an unquoted investment held at cost. The fair value of the asset cannot be measured reliably as it is an unquoted
equity investment. The asset is classified as a non-current available-for-sale asset by virtue of its non-classification in any other asset category. There are no
current plans to dispose of the asset and as such the directors believe it appropriate to carry the asset at the lower of cost and fair value.
18. Other receivables
Group Company
2011 2010 2011 2010
Non-current assets £’000 £’000 £’000 £’000
Amounts due from group undertakings – – 6,842 5,771
Less: Provision for impairment of amounts due from group undertakings – – (571) (585)
Other debtors 904 904 904 904
Other receivables 904 904 7,175 6,090
The Company’s non-current other receivables are denominated in sterling.
Amounts due from group undertakings represent loans due from subsidiaries which are repayable after more than one year .
Other debtors represent loans in respect of the Group’s share schemes repayable after more than one year, none of which are impaired.
19. Inventories
Group
2011 2010
£’000 £’000
Finished goods and goods for resale 1 1
A provision of £nil (2010: £22,000) is held against goods for resale to reduce the carrying value to reflect the net realisable value of the inventory.
Christie Group Annual Report 2011 65 20. Cash and cash equivalents
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Cash at bank and in hand 1,059 2,323 1 55
Short-term bank deposits – – – –
1,059 2,323 1 55
Cash, cash equivalents and bank overdrafts include the following for the purposes of the cashflow statement:
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Cash and cash equivalents 1,059 2,323 1 55
Bank overdrafts (note 26) (2,068) (1,091) (1,917) (997)
(1,009) 1,232 (1,916) (942)
The Group operates a centrally-controlled treasury function where the use of overdraft facilities is concentrated with the ultimate parent company. As a result at
31 December 2011 the ultimate parent undertaking had utilised bank overdrafts to the value of £1,917,000 (2010: £997,000).
21. Trade and other receivables
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Trade receivables 7,559 6,683 – –
Less: Provision for impairment of receivables (929) (1,101) – –
Amounts owed by group undertakings – – 1,979 2,144
Other debtors 1,754 1,068 869 260
Prepayments and accrued income 2,841 2,727 110 55
11,225 9,377 2,958 2,459
The fair values of trade and other receivables approximates to the carrying value as detailed above.
Notes to the consolidated financial statements
Continued
66 Christie Group Annual Report 2011 21. Trade and other receivables continued
Movements on the Group’s provision for impairment of trade receivables are as follows:
Group
2010
2011 (restated)
£’000 £’000
Provision at 1 January 1,101 1,837
Amounts provided in previous period not utilised (793) (1,009)
Provided in the period 701 443
Impairment of receivables recognised in the Consolidated Statement of Comprehensive Income (92) (566)
Amounts written off in the year (75) (131)
Foreign currency translation effects (5) (39)
Provision at 31 December 929 1,101
The impairment of trade receivables in the year has been included in ‘Other operating expenses’ in the Consolidated Statement of Comprehensive Income.
Amounts are written off when there is no expectation of recovering additional cash.
The following summary details trade receivables that are not overdue (where payment terms have not been exceeded) as well as an analysis of overdue
amounts and related provisions.
Group
2011 2010
£’000 £’000
Not overdue 3,127 3,089
Amounts past due:
< 1 month 2,004 1,668
1 – 3 months 914 576
3 – 6 months 621 341
6 – 12 months 455 225
> 1 year 438 784
Provision for impairment of trade receivables (929) (1,101)
Amounts past due but not impaired 3,503 2,493
Christie Group Annual Report 2011 67 21. Trade and other receivables continued
The carrying value of trade receivables is reviewed and amounts not provided for are considered recoverable. Concentrations of credit risk with respect to trade
receivables are limited due to the Group’s customer base being large and diverse. Due to this, management believe there is no further credit risk provision required
in excess of the normal provision for doubtful receivables. The carrying amounts of trade and other receivables are denominated in the following currencies:
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Sterling 9,902 7,645 2,958 2,459
Euros 1,182 1,599 – –
Canadian Dollars 112 133 – –
United Arab Emirates Dirhams 29 – – –
11,225 9,377 2,958 2,459
22. Share capital
2011 2010
Ordinary shares of 2p each Number £’000 Number £’000
Allotted and fully paid:
At 1 January and 31 December 25,263,551 505 25,263,551 505
The Company has one class of ordinary shares which carry no right to fixed income.
Investment in own shares
The Group has established an Employee Share Ownership Plan (ESOP) trust in order to meet its future contingent obligations under the Group’s share option
schemes. The ESOP purchases shares in the market for distribution at a later date in accordance with the terms of the Group’s share option schemes.
The rights to dividends on the shares held have been waived.
At 31 December 2011 the total payments by the Company to the ESOP to finance the purchase of ordinary shares was £1,868,000 (2010: £1,988,000). The market
value at 31 December 2011 of the ordinary shares held in the ESOP was £302,000 (2010: £323,000). The investment in own shares represents 483,000 shares
(2010: 582,000) with a nominal value of 2p each.
Notes to the consolidated financial statements
Continued
68 Christie Group Annual Report 2011 22. Share capital continued
22a. Share based payments
Certain employees hold options to subscribe for shares in the Company at prices ranging from 39.5p to 251.5p under share option schemes for the period
from April 2003 – September 2011.
The remaining options outstanding under approved schemes (unapproved options marked *) at 31 December are shown below:
Number of Shares
2011 2010 Option exercise price Date granted Option exercise period
– 13,333 53.5p Apr 2001 Apr 2004 – Apr 2011
– 3,000 40.0p Oct 2001 Oct 2004 – Oct 2011
35,000 35,000 47.5p Apr 2003 Apr 2006 – Apr 2013
12,000 12,000 46.5p Jun 2003 Jun 2006 – Jun 2013
3,000 6,000 100.0p Apr 2005 Apr 2008 – Apr 2015
9,000 9,000 130.5p Apr 2006 Apr 2009 – Apr 2016
3,000 9,000 251.5p Mar 2007 Mar 2010 – Mar 2017
– 7,000 113.5p Apr 2008 Apr 2011 – Apr 2018
– 23,000 39.5p May 2009 May 2012 – May 2019
735,634 745,634 45.0p May 2009 May 2012 – May 2019
16,000 16,000 45.0p Jun 2009 Jun 2012 – Jun 2019
140,000 140,000 57.5p Sep 2009 Sep 2012 – Sep 2019
94,000 104,000 46.5p May 2010 May 2013 – May 2020
84,000 – 58.5p Sep 2011 Sep 2014 – Sep 2021
1,131,634 1,122,967
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 142 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, linked directly to Christie Group plc earnings per share (eps).
The Group also operates a Save As You Earn (SAYE) scheme which was introduced in 2002. Under the SAYE scheme eligible employees can save up to £250 per
month over a three or five year period and use the savings to exercise options granted between 53.0p to 228.5p. There were 834,000 (2010: 865,000) remaining
options outstanding under the SAYE scheme at 31 December 2011.
Christie Group Annual Report 2011 69 22. Share capital continued
Share options (including SAYE schemes) were valued using the Quoted Companies Alliance (QCA) share option valuer, which is based on Black-Scholes.
No performance conditions were included in the fair value calculations. The key assumptions used in the calculations are as follows:
2011 2010
Share price at grant date 39.5p – 251.5p 39.5p – 251.5p
Exercise price 39.5p – 251.5p 39.5p – 251.5p
Expected volatility 28.5% – 78.3% 28.5% – 78.3%
Expected life (years) 3 – 5 years 3 – 5 years
Risk free rate 1.4% – 5.1% 1.8% – 5.1%
Dividend yield 0.0% – 3.7% 0.0% – 3.7%
Fair value per option 10.35p – 84.80p 10.35p – 84.8p
The expected volatility is based on historical volatility over the last 5 years. The expected life is the average expected period to exercise. The risk free rate of
return is the yield on zero-coupon UK government bonds of a term consistent with the assumed option life.
A reconciliation of share option movements (excluding SAYE schemes) over the year to 31 December is shown below:
2011 2010
Weighted average Weighted average
Number exercise price Number exercise price
Outstanding at 1 January 1,122,967 49.83p 1,128,467 50.05p
Granted 84,000 58.50p 107,000 46.50p
Forfeited or lapsed (59,000) 76.90p (112,500) 48.90p
Exercised – – – –
Surrendered – – – –
Expired (16,333) 51.02p – –
Outstanding at 31 December 1,131,634 49.04p 1,122,967 49.83p
Exercisable at 31 December 62,000 71.77p 69,333 52.70p
No share options were exercised during the year or prior year . The total charge for the year relating to employee share based payment plans was £72,000
(2010: £86,000), all of which related to equity-settled share based payment transactions. The weighted average remaining contractual life of share options
outstanding at 31 December 2011 was 7.4years (2010: 8.1 years).
Notes to the consolidated financial statements
Continued
70 Christie Group Annual Report 2011 23. Reserves
Capital Fair value 
Share Share based redemption and other Retained 
premium payments Own shares reserve reserves earnings
Group £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2011 4,073 607 (1,115) 10 3,575 (2,135)
Movement in respect of employee share scheme – 72 38 – 110 –
Comprehensive loss for the period ––– –– (114)
Dividends paid ––– –– (244)
At 31 December 2011 4,073 679 (1,077) 10 3,685 (2,493)
Capital Fair value 
Share Share based redemption and other Retained 
premium payments Own shares reserve reserves earnings
Group £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2010 4,073 521 (1,498) 10 3,106 (3,119)
Movement in respect of employee share scheme – 86 383 – 469 (410)
Comprehensive profits for the period ––– –– 1,394
At 31 December 2010 4,073 607 (1,115) 10 3,575 (2,135)
Capital Fair value 
Share Share based redemption Other and other Retained 
premium payments Own shares reserve reserves reserves earnings
Company £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2011 4,073 4 (1,115) 10 89 3,061 3,950
Movement in respect of employee share scheme –1 38 –– 39 –
Comprehensive losses for the period ––– ––– (514)
At 31 December 2011 4,073 5 (1,077) 10 89 3,100 3,436
Capital Fair value 
Share Share based redemption Other and other Retained 
premium payments Own shares reserve reserves reserves earnings
Company £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2010 4,073 5 (1,498) 10 89 2,679 4,499
Movement in respect of employee share scheme – (1) 383 –– 382 (410)
Comprehensive losses for the period ––– ––– (139)
At 31 December 2010 4,073 4 (1,115) 10 89 3,061 3,950
Share premium – The balance on the share premium reserve represents the amounts received in excess of the nominal value of the ordinary shares.
Share based payments – The balance on the share based payments reserve represents the value of services provided in relation to employee share ownership schemes.
Own shares – Own shares represents Company shares held in the Employee Share Ownership Plan (ESOP) to meet the future requirements of employee share-
based payment arrangements.
Capital redemption reserve – The balance on the capital redemption reserve represents the aggregate nominal value of all the ordinary shares repurchased and cancelled.
Christie Group Annual Report 2011 71 24. Retirement benefit obligations
The amounts recognised in the statement of financial position are determined as follows:
2011 2010
£’000 £’000
United Kingdom 2,376 3,222
United Kingdom
The Group operates two defined benefit schemes (closed to new members) providing pensions based on final pensionable pay. The contributions are determined
by qualified actuaries on the basis of triennial valuations using the projected unit method.
When a member retires, the pension and any spouse’s pension is either secured by an annuity contract or paid from the managed fund. Assets of the schemes
are reduced by the purchase price of any annuity purchase and the benefits no longer regarded as liabilities of the scheme.
The amounts recognised in the statement of financial position are determined as follows:
2011 2010
£’000 £’000
Present value of funded obligations 33,612 33,042
Fair value of plan assets (33,277) (33,324)
335 (282)
Present value of unfunded obligations 3,957 2,746
Unrecognised actuarial (losses)/gains (1,916) 758
Liability in the statement of financial position 2,376 3,222
The principal actuarial assumptions used were as follows:
2011 2010
% %
Discount rate 5.8 5.8
Inflation rate 3.5 3.5
Expected return on plan assets 6.2 – 7.6 6.2 – 7.6
Future salary increases 3.5 3.5
Future pension increases 2.5 – 3.5 2.5 – 3.5
Assumptions regarding future mortality experience are set based on advice from published statistics and experience. The average life expectancy in years of a
pensioner retiring at age 65 is as follows:
2011 2010
Years Years
Male 19.8 – 22.1 19.8 – 22.0
Female 22.7 – 23.9 22.7 – 24.0
Notes to the consolidated financial statements
Continued
72 Christie Group Annual Report 2011 24. Retirement benefit obligations continued
The movement in the defined benefit obligation is as follows:
2011 2010
£’000 £’000
At 1 January 35,788 33,625
Interest cost 2,078 1,966
Current service cost 599 667
Benefits paid (657) (672)
Actuarial (gains)/losses (239) 202
At 31 December 37,569 35,788
Attributable to:
Present value of funded obligations 33,612 33,042
Present value of unfunded obligations 3,957 2,746
37,569 35,788
The movement in the fair value of plan assets is as follows:
2011 2010
£’000 £’000
At 1 January 33,324 29,348
Expected return on plan assets 2,153 1,988
Employee Contributions 174 186
Employer Contributions 1,150 831
Benefits paid (657) (672)
Actuarial (losses)/gains (2,867) 1,643
At 31 December 33,277 33,324
The amounts recognised in the statement of comprehensive income are as follows:
2011 2010
£’000 £’000
Current service cost 599 667
Interest cost 2,078 1,966
Expected return on plan assets (2,153) (1,988)
Net actuarial loss recognised in the year (46) –
Total included in employee benefit expenses 478 645
The actual return on plan assets was a loss of £714,000 (2010: £3,631,000 gain).
Christie Group Annual Report 2011 73 24. Retirement benefit obligations continued
Plan assets are comprised as follows:
2011 2010
Expected return Expected return
£’000 % £’000 %
Equity 22,500 6.9 – 7.6 24,167 6.5 – 7.6
Debt 5,412 7.5 – 7.6 4,965 7.5 – 7.6
Property 1,410 6.9 – 7.6 ––
Other 3,955 4.4 – 7.6 4,192 5.3 – 7.6
33,277 6.2 – 7.6 33,324 6.2 – 7.6
The expected return on plan assets was determined by considering the expected returns available on the assets underlying the current investment policy.
Expected yields on fixed interest investments are based on gross redemption yields as at the statement of financial position date. Expected returns on equity
and property investments reflect long-term real rates of return experienced in the respective markets.
Expected contributions to UK post retirement benefit schemes for the year ending 31 December 2012 are £1,142,000.
History of experience adjustments:
2011 2010 2009 2008 2007
As at 31 December £’000 £’000 £’000 £’000 £’000
Present value of defined obligations 37,569 35,788 33,625 33,547 30,998
Fair value of plan assets (33,277) (33,324) (29,348) (25,463) (29,566)
Deficit 4,292 2,464 4,277 8,084 1,432
Experience adjustments on plan liabilities 239 (202) 2,021 (1,182) 218
Experience adjustments on plan assets (2,867) 1,643 2,009 (6,508) (346)
Company
The statement of comprehensive income charge of £33,000 (2010: £30,000) and statement of financial position liability of £286,000 (2010: £335,000) 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 2011 contributions paid by the Company amounted to £79,000 (2010: £38,000).
Notes to the consolidated financial statements
Continued
74 Christie Group Annual Report 2011 25. Trade and other payables
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Trade payables 1,442 1,968 137 247
Amounts owed to group undertakings – – 3,514 2,574
Other taxes and social security 2,103 1,585 333 251
Other creditors 859 472 319 1
Accruals 2,534 3,522 148 187
Deferred income 1,327 1,033 – –
8,265 8,580 4,451 3,260
The carrying value of all amounts shown above corresponds to their fair value.
The carrying amounts of trade and other payables are denominated in the following currencies:
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Sterling 8,001 7,808 4,451 3,260
Euros 212 751 – –
Canadian Dollars 51 21 – –
United Arab Emirates Dirhams 1 – – –
8,265 8,580 4,451 3,260
26. Borrowings
Group Company
2011 2010 2011 2010
Current £’000 £’000 £’000 £’000
Bank overdrafts 2,068 1,091 1,917 997
Invoice finance 1,023 626 – –
3,091 1,717 1,917 997
The Group is not subject to any contractual repricing.
The carrying amounts of current borrowings approximate to their fair value.
Christie Group Annual Report 2011 75 27. Provisions
Vacant leasehold Long-term benefits 
provisions due to employees Dilapidations Total
£’000 £’000 £’000 £’000
At 1 January 2011 149 1,684 401 2,234
Charged/(credited) to the statement of comprehensive income
– Additional provision 52 887 143 1,082
Utilised during the year (63) (619) (120) (802)
At 31 December 2011 138 1,952 424 2,514
Vacant leasehold Long-term benefits 
provisions due to employees Dilapidations Total
£’000 £’000 £’000 £’000
At 1 January 2010 244 2,058 329 2,631
Charged/(credited) to the statement of comprehensive income
– Additional provision 50 560 88 698
– Released during the year (32) –– (32)
Utilised during the year (113) (934) (16) (1,063)
At 31 December 2010 149 1,684 401 2,234
2011 2010
Analysis of total provisions: £’000 £’000
Non-current 554 2,093
Current 1,960 141
2,514 2,234
a. Long-term benefits due to employees
Provisions for long-term benefits to employees comprise £199,000 for incentives in excess of one year’s duration. These are determined in line with the
projected unit credit method.
b. Dilapidations
Provision is held in respect of potential dilapidations arising on leasehold premises over the length of the lease in accordance with the lease terms.
The non-current liabilities are estimated to be payable over periods from one to seven years.
c. Vacant leasehold provisions
Provisions are held for rental costs and related premises charges on leasehold commitments for excess or unutilised space, net of expected income from
anticipated sub-lease arrangements. All provisions are carried at present value after applying an appropriate discount rate, and all non–current liabilities
are estimated to be payable over periods from one to seven years.
Notes to the consolidated financial statements
Continued
76 Christie Group Annual Report 2011 28. Notes to the cash flow statement
Cash (used in)/generated from operations
Group Company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
(Loss)/profit for the year after tax (149) 1,394 (270) (139)
Adjustments for:
– Taxation 386 (455) (57) (314)
– Finance costs/(credit) 103 103 (70) (61)
– Depreciation 398 451 – –
– Amortisation of intangible assets 39 46 – –
– Loss on sale of property, plant and equipment – 6 – –
– Foreign currency translation (37) 21 5 7
– Increase/(decrease) in provisions 280 (397) – –
– Movement in share option charge 72 86 – (1)
– Movement in retirement benefit obligation (846) (372) (49) (12)
– Decrease in non-current other receivables – 288 – –
– Dividends received – – – (350)
Changes in working capital (excluding the effects of exchange differences on consolidation):
– (Increase)/decrease in trade and other receivables (1,691) (825) (1,585) 403
– (Decrease)/increase in trade and other payables (462) (51) 1,192 1,115
Cash (used in)/generated from operations (1,907) 295 (834) 648
29. Reconciliation of movement in net funds
As at
As at 1 January 2011 Cash flow 31 December 2011
£’000 £’000 £’000
Cash and cash equivalents 2,323 (1,264) 1,059
Bank overdrafts (1,091) (977) (2,068)
1,232 (2,241) (1,009)
Invoice finance (626) (397) (1,023)
Net funds/(debt) 606 (2,638) (2,032)
Christie Group Annual Report 2011 77 30. Financial assets and liabilities
The carrying value of financial assets and liabilities, which are principally denominated in Sterling, Euros, Canadian dollars or United Arab Emirate dirhams,
were as follows:
Group Company
2011 2010 2011 2010
Assets £’000 £’000 £’000 £’000
Available-for-sale financial assets 300 300 300 300
Trade and other receivables 12,054 10,281 10,133 8,549
Cash and cash equivalents 1,059 2,323 1 55
13,413 12,904 10,434 8,904
Group Company
2011 2010 2011 2010
Liabilities £’000 £’000 £’000 £’000
Retirement benefit obligations 2,376 3,222 286 335
Provisions 2,514 2,234 – –
Trade and other payables 8,190 8,580 4,451 3,260
Borrowings 3,091 1,717 1,917 997
16,171 15,753 6,654 4,592
31. Commitments
Operating lease commitments
At 31 December 2011 the Group has lease agreements in respect of properties, vehicles, plant and equipment, for which the payments extend over a number of years.
2011 2010
Vehicles and Vehicles and 
Property equipment Property equipment
£’000 £’000 £’000 £’000
Commitments under non-cancellable operating leases due:
Within one year 867 589 1,372 529
Within two to five years 2,008 1,047 3,505 523
After five years 127 – 1,589 –
3,002 1,636 6,466 1,052
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. The future minimum sublease payments expected to
be received under non-cancellable subleases at the statement of financial position date was £111,000 (2010: 254,000).
Notes to the consolidated financial statements
Continued
78 Christie Group Annual Report 2011 32. Contingent liabilities
In the ordinary course of business, claims arise in Group companies. In the opinion of the Directors, appropriate amounts have been set aside in the individual
companies within the Group in respect of liabilities which they may suffer as a result of the resolution of these claims. As at 31 December 2011 no material
unprovided contingent liabilities existed (2010: £nil).
33. Acquisition
On 7 March 2011, Christie & Co (Holdings) Limited, a wholly owned subsidiary of Christie Group plc, acquired a 90% shareholding in the ordinary shares of
Christie & Co FZ-LLC, a newly incorporated company registered with The Dubai Technology and Media Free Zone Authority, for a consideration of 54,000 AED.
34. Related-party transactions
Group
There is no controlling interest in the Group’s shares.
The Group Executive Directors are considered to be the persons who have the authority and responsibility for planning, directing and controlling the Group.
This information is included in the Director’s remuneration report on page 35, along with details on remuneration for Non-Executive directors.
Key management are those persons having authority and responsibility for planning, directing and controlling the activities of the Group. In the opinion of the
board, the company’s key management comprises the directors and information regarding their emoluments stated in accordance with IFRS is set out below:
2011 2010
£’000 £’000
Directors remuneration per Directors report 1,229 1,448
Employers NI 155 160
Total remuneration 1,384 1,608
2011 2010
£’000 £’000
Dividends paid to Directors 145 –
Company
Transactions with Group undertakings:
2011 2010
£’000 £’000
Dividends received from subsidiaries – 350
Provision of services 3,524 3,099
Purchase of services 878 585
Sales and purchases to group undertakings were carried out on commercial terms and conditions. Year end balances arising from sales and provision of services
to group undertakings are disclosed in Notes 18, 21 and 25. See Note 18 for provisions against amounts due from group undertakings.
During the year the company loaned £660,000 to Carmelite Property Limited, a company incorporated in England and Wales, and jointly owned by The Christie
Group Pension and Assurance Scheme, The Venners Retirement Benefit Fund and The Fitzroy Square Pension Fund. The loan is expected to be repaid in full
during 2012 and is non-interest bearing.
Christie Group Annual Report 2011 79 Consolidated statements of comprehensive income
2011 2010 2009 2008 2007
£’000 £’000 £’000 £’000 £’000
Revenue 53,290 48,905 47,067 63,422 87,372
Operating profit/(loss) before exceptional items 745 1,042 (3,654) (2,674) 7,001
Exceptional items (405) –– (1,964) –
Finance (costs)/credit (103) (103) (47) 65 214
Profit/(loss) on ordinary activities before tax 237 939 (3,701) (4,573) 7,215
Taxation (386) 455 1,752 1,173 (2,567)
(Loss)/profit on ordinary activities after tax (149) 1,394 (1,949) (3,400) 4,648
Non-Controlling interest 35 ––– –
(Loss)/profit attributable to equity holders of the parent (114) 1,394 (1,949) (3,400) 4,648
Earnings per share
– basic (0.46p) 5.64p (8.30p) (13.88p) 19.12p
– basic before exceptional finance credit (net of tax) (0.46p) 5.62p (8.30p) (13.88p) 19.12p
Dividends per ordinary share (payable in respect of the year) 0.50p 1.00p 0.00p 0.50p 4.25p
The 2009 and 2008 results shown above are for continuing operations only.
Consolidated statement of financial position
2011 2010 2009 2008 2007
£’000 £’000 £’000 £’000 £’000
Non-current assets 6,005 6,415 6,457 5,951 14,499
Current assets 12,282 11,794 12,061 12,430 24,245
Non-current liabilities (554) (2,093) (1,720) (1,751) (432)
Current liabilities (13,241) (10,438) (12,236) (10,554) (16,730)
4,492 5,678 4,562 6,076 21,582
Non-current borrowings – ––– (1,275)
Retirement benefit obligations (2,376) (3,222) (3,594) (3,225) (4,343)
Net assets 2,116 2,456 968 2,851 15,964
Five-year record
80 Christie Group Annual Report 2011 Company information
Investor and shareholder-related information can 
be found on our website at: www.christiegroup.com
Financial calendar 
Annual General Meeting
Whitefriars House Wednesday 13 June 2012 
6 Carmelite Street at 10.30am
London EC4Y 0BS
Announcements
Half-year results for 2012 September 2012
Preliminary full-year results for 2012 April 2013
Final dividend 2011
Ex-dividend 30 May 2012
Record date 1 June 2012
Payment date 2 July 2012
Dates are correct at the time of printing, but are subject to change.
Registrars 
All administrative enquiries relating to shareholdings and requests to receive
corporate documents by e-mail should, in the first instance, be directed to:
Capita Registrars
The Registry
34 Beckenham Road
Beckenham 
Kent
BR3 4TU
0871 664 0300 (calls cost 10 pence per minute plus network extras.
Lines are open from 8:30am to 5:30pm Mon –Fri) from the UK and
+44 (0) 20 8639 3399 from overseas.
shareholder .services@capitaregistrars.com
Shareholders who receive duplicate sets of company mailings because they
have multiple accounts should write to Capita Registrars to have their
accounts amalgamated.
Voting online and the shareholder portal – www.capitashareportal.com
You will need your investor code, which can be found on your share
certificate(s) to register for the shareholder portal. 
Once you have registered, you can immediately:
•Cast your proxy vote online.
•Elect to receive shareholder communication electronically.
And, after you have activated your account, you can benefit from a number of
other online services:
•View your holding balance and indicative share price and valuation.
•View transactions on your holding and dividend payments you have received.
•Update your address or register a bank mandate instruction to have
dividends paid directly to your bank account.
•Access a wide range of shareholder information including downloadable forms.
If you need any help with voting online, please contact the Capita Registrars
Shareholders Helpline, either:
•by phone on 0871 664 0391 from the UK (calls cost 10p per minute plus
network extras. Lines are open between 9am and 5:30pm, Monday – Friday)
or from overseas on +44 (0) 20 8639 3367; or
•by e-mail at shareholder .services@capitaregistrars.com
ShareGift
ShareGift is a charity share donation scheme for shareholders who may
wish to dispose of a small number of shares where the market value makes
it uneconomic to sell them on a commission basis. The scheme is
administered by the Orr Mackintosh Foundation. For further information,
please contact the foundation: 020 7930 3737.
www.sharegift.org/donorinformation
Shareholder information
Christie Group Annual Report 2011 81 Unauthorised brokers (“boiler room” scams)
Shareholders are advised to be wary of any unsolicited advice, offers to buy
shares at a discount or offers of free company reports. These are typically
from overseas based “brokers” who target UK shareholders offering to sell
them what often turns out to be worthless or high risk shares in US or UK
investments. These are commonly known as “boiler rooms”. 
If you receive any unsolicited investment advice:
•Make sure you get the correct name of the person and organisation.
•Check that they are properly authorised by the FSA before getting involved.
You can check at: www.fsa.gov.uk/fsaregister
•Report the matter to the FSA by calling 0845 606 1234.
•If the calls persist, hang up.
Details of any share dealing facilities that Christie Group endorses will
only be included in company mailings.
Identity theft
Tips for protecting your shares in the company:
•Ensure all your certificates are kept in a safe place or hold your shares
electronically in CREST via a nominee.
•Keep correspondence from us and Capita in a safe place and destroy any
unwanted correspondence by shredding.
•If you change address, inform Capita in writing or update your address online
via the shareholder portal. If you receive a letter from Capita regarding a
change of address but have not moved, please contact them immediately.
•Consider having your dividend paid directly into your bank. This will reduce
the risk of the cheque being intercepted or lost in the post. If you change
your bank account, inform Capita of the details of your new account. You can
do this by post or online via the shareholder portal. 
•If you are buying or selling shares, only deal with brokers registered and
authorised to carry out that type of business.
•Be wary of phone calls or e-mails purporting to come from us or Capita
asking you to confirm personal details or details of your investment in
our shares. Neither we nor Capita will ever ask you to provide information
in this way.
Shareholder information
Continued
82 Christie Group Annual Report 2011 Christie Group plc
Whitefriars House
6 Carmelite Street
London EC4Y 0BS
T: +44 (0) 20 7227 0707
E: executive@christiegroup.com
W: www.christiegroup.com
Christie + Co
Whitefriars House
6 Carmelite Street
London EC4Y 0BS
T: +44 (0) 20 7227 0700
E: enquiries@christie.com
W: www.christie.com and
www.christiecorporate.com
Austria – Vienna
Stallburggasse 2/3a
1010 Vienna
T: +43 (0) 1 / 8 90 53 57-0 
E: vienna@christie.com
Finland – Helsinki
Tammasaarenlaituri 3
00180 Helsinki
T: +358 (0) 9 4137 8500
E: helsinki@christie.com 
France – Paris
25 rue d’Artois
75008 Paris
T: +33 (0) 1 53 96 72 72
E: paris@christie.com
France – Lyon
Immeuble Danica B
21 avenue Georges Pompidou
69486 Lyon cedex 03
T: +33 (0) 4 72 91 30 50
E: lyon@christie.com
France – Marseille
35 cours Pierre Puget
13286 Marseille cedex 06
T: +33 (0) 4 91 29 12 40
E: marseille@christie.com 
France – Rennes
Immeuble “Artemis”
Parc Monier
167 route de Lorient
35000 Rennes
T: +33 (0) 2 99 59 83 30
E: rennes@christie.com 
Germany – Berlin 
Markgrafenstraße 32
10117 Berlin
T: +49 (0) 30/20 00 96-0
E: berlin@christie.com
Germany – Frankfurt
Bockenheimer Landstraße 93
60325 Frankfurt am Main
T: +49 (0) 69/90 74 57-0
E: frankfurt@christie.com
Germany – Munich
Pfisterstraße 6
80331 Munich
T: +49 (0) 89 / 2 00 00 07-0
E: munich@christie.com
Ireland – Dublin
T: +353 (0) 1 618 2000
E: dublin@christie.com
Spain – Barcelona
Paseo de Gracia 11
Escalera B, 4° 3ª
08007 Barcelona
T: +34 93 34 361 61
E: barcelona@christie.com
United Arab Emirates – Dubai
Office 213
Building 9
Dubai Media City
Dubai
T: +971 (0) 4 434 8444
E: dubai@christie.com
OTHER UNITED 
KINGDOM OFFICES
Birmingham
Edgbaston House
3 Duchess Place
Hagley Road
Birmingham B16 8NH
T: +44 (0) 121 456 1222
E: birmingham@christie.com
Bristol
Embassy House
Queens Avenue, Clifton
Bristol BS8 1SB
T: +44 (0) 117 946 8500
E: bristol@christie.com
Edinburgh
5 Logie Mill
Beaverbank Office Park
Logie Green Road
Edinburgh EH7 4HG
T: +44 (0) 131 557 6666
E: edinburgh@christie.com
Enfield
Lough Point
2 Gladbeck Way
Enfield EN2 7JA
T: +44 (0) 20 8370 3100
E: enfield@christie.com
Exeter
Kings Wharf, The Quay
Exeter EX2 4AN
T: +44 (0) 1392 285600
E: exeter@christie.com
Glasgow
120 Bath Street
Glasgow G2 2EN
T: +44 (0) 141 352 7300
E: glasgow@christie.com
Ipswich
Wolsey House
16 – 18 Princes Street
Ipswich IP1 1QT
T: +44 (0) 1473 256588
E: ipswich@christie.com
Leeds
Aquis House
Greek Street
Leeds LS1 5RU
T: +44 (0) 113 389 2700
E: leeds@christie.com
Directory
Christie Group Annual Report 2011 83
Continued overleaf > London
Whitefriars House
6 Carmelite Street
London EC4Y 0BS
T: +44 (0) 20 7227 0700
E: enquiries@christie.com
Maidstone
Vaughan Chambers
4 Tonbridge Road
Maidstone ME16 8RP
T: +44 (0) 1622 656000
E: maidstone@christie.com
Manchester
Acresfield
St Ann’s Square
Manchester M2 7HA
T: +44 (0) 161 833 3311
E: manchester@christie.com
Newcastle
Shakespeare House
18 Shakespeare Street
Newcastle upon Tyne NE1 6AQ
T: +44 (0) 191 222 1740
E: newcastle@christie.com
Nottingham
Alan House
Clumber Street
Nottingham NG1 3ED
T: +44 (0) 115 948 3100
E: nottingham@christie.com
Winchester
Star Lane House
Staple Gardens
Winchester SO23 8SR
T: +44 (0) 1962 844455
E: winchester@christie.com
Christie Finance
The postal addresses are the same as
Christie + Co in each case:
Birmingham
T: +44 (0) 121 452 3717
E: birmingham@christiefinance.com
Bristol
T: +44 (0) 117 946 8502
E: bristol@christiefinance.com
Edinburgh
T: +44 (0) 131 524 3417
E: edinburgh@christiefinance.com
Enfield
T: +44 (0) 20 8370 3100
E: enfield@christiefinance.com
Exeter
T: +44 (0) 1392 285612
E: exeter@christiefinance.com
Glasgow
T: +44 (0) 141 352 7305
E: glasgow@christiefinance.com
Ipswich
T: +44 (0) 1473 234905
E: ipswich@christiefinance.com
Leeds
T: +44 (0) 113 389 2714
E: leeds@christiefinance.com
London
T: +44 (0) 20 7227 0774
E: london@christiefinance.com
Maidstone
T: +44 (0) 1622 656006
E: maidstone@christiefinance.com
Manchester
T: +44 (0) 161 833 6901
E: manchester@christiefinance.com
Newcastle
T: +44 (0) 191 222 1740
E: newcastle@christiefinance.com
Nottingham
T: +44 (0) 115 945 4712
E: nottingham@christiefinance.com
Winchester
T: +44 (0) 1962 833818
E: winchester@christiefinance.com
Christie Insurance
Whitefriars House
6 Carmelite Street
London EC4Y 0BS
T: +44 (0) 20 7448 8820 
E: enquiries@christieinsurance.com
W: www.christieinsurance.com
Ipswich
Wolsey House
16 – 18 Princes Street
Ipswich IP1 1QT
T: +44 (0) 1473 234900
E: ipswich@christieinsurance.com
Orridge
Essex House
Astra Centre
Edinburgh Way
Harlow CM20 2BN
T: +44 (0) 1279 775600
E: contact@orridge.co.uk
W: www.orridge.co.uk
Belgium
100 Avenue du Port
1000 Brussels
T: +32 (0) 26 46 25 47
E: contact@orridge.eu
W: www.orridge.eu
OTHER UNITED 
KINGDOM OFFICE
Centre House
Court Parade
Aldridge WS9 8LT
T: +44 (0) 1922 472000
E: contact@orridge.co.uk
Pinders
Pinder House
249 Upper Third Street
Milton Keynes MK9 1DS
T: +44 (0) 1908 350500
E: info@pinders.co.uk
W: www.pinders.co.uk and
www.pinderpack.com
Venners
Essex House
Astra Centre
Edinburgh Way
Harlow CM20 2BN
T: +44 (0) 1279 620820
E: enquiries@venners.co.uk
W: www.venners.co.uk
Vennersys
249 Upper Third Street
Milton Keynes MK9 1DS
T: +44 (0) 1908 350650
E: contact@vennersys.com
W: www.vennersys.co.uk
North America
200 – 1920 Yonge Street
Toronto
Ontario
Canada M4S 3E2
T: +1 416 572 7784
E: contact@vennersys.ca
W: www.vennersys.ca
Directory
Continued
84 Christie Group Annual Report 2011 Designed and produced by fourthquarter
The paper used in this document contains
materials sourced from responsibly
managed and sustainable commercial
forests, certified in accordance with the
FSC (Forest Stewardship Council).
Where we perform
VIENNA
UNITED KINGDOM
BENELUX
GERMANY
FRANCE
IBERIA
THE NORDIC REGION, RUSSIA 
& THE BALTIC STATES
BARCELONA
RENNES
LYON
PARIS
BERLIN
MUNICH
FRANKFURT
HELSINKI
BRUSSELS
MARSEILLE
CENTRAL & 
EASTERN EUROPE
TORONTO
CANADA
WINCHESTER
ENFIELD
EXETER
HARLOW
MILTON KEYNES 
MAIDSTONE
LONDON
BRISTOL
NOTTINGHAM
IPSWICH
BIRMINGHAM
ALDRIDGE
MANCHESTER
NEWCASTLE
UPON TYNE
LEEDS
EDINBURGH
DUBLIN
GLASGOW
Professional Business Services
Christie + Co
Christie + Co is the leading specialist 
firm providing business intelligence 
in the hospitality, leisure, care and 
retail sectors. 
Market leaders in its sectors, employing 
the largest teams of sector specialists 
in the UK providing professional agency and
advisory services.
www.christie.com
www.christiecorporate.com
Christie Finance
Christie Finance has over 30 years’
experience in financing businesses 
in the hospitality, leisure, care and 
retail sectors. 
Christie Finance prides itself on its speed 
of response to client opportunities and its
strong relationships with finance providers.
www.christiefinance.com
Christie Insurance
With over 30 years’ experience arranging
business insurance in the hospitality, leisure,
care and retail sectors, Christie Insurance
is a leading company in its markets.
Delivering and exceeding clients’
expectations in terms of the cost of their
insurance and the breath of its cover .
www.christieinsurance.com
Pinders
Pinders is the UK's leading specialist business
appraisal, valuation and consultancy company,
providing professional services to the licensed,
leisure, retail and care sectors, and also the
commercial and corporate business sectors. 
Looking at the detail of businesses to arrive
at accurate assessments of their trading
potential and value through business
analysis and surveying skills.
www.pinders.co.uk
www.pinderpack.com
Stock & Inventory Systems & Services
Venners
The leading supplier of stocktaking,
inventory, consultancy services and 
related stock management systems 
to the hospitality sector . 
The largest and longest established 
stock audit company in the hospitality
sector in the UK and growing in 
mainland Europe.
www.venners.co.uk
Orridge
Europe’s longest established stocktaking
business specialising in all fields of retail
stocktaking including high street,
warehousing and factory operations. 
Orridge prides itself on the speed with
which it supplies high-quality management
information to clients.
www.orridge.co.uk
www.orridge.eu
Vennersys
Vennersys operates in the UK and North
America and delivers turnkey EPoS and
ticketing systems to visitor attractions such
as historic houses and estates, museums,
zoos, safari parks, aquaria and cinemas.
Over 20 years’ experience delivering
purpose-designed solutions for clients’
ticketing, admissions, EPoS and food 
and beverage sales requirements.
www.vennersys.co.uk
www.vennersys.ca
Our performers
Some of our client audience
American Film Institute
Arundel Castle
Barclays
Berkeley Homes 
BHS
Blenheim Palace
Boots Opticians
Calvin Klein
Carlsberg UK
Co-operative
De Vere
Empire Theatres
Enterprise Inns
Euro Garages
Festival Cinemas
Fitness4Less
Hilton Hotels & Resorts
Hobbycraft
InterContinental Hotels
John Lewis
Kidzworld
Landmark Cinemas
LaSalle Investment
Management
Lloyds Banking Group
Marston’s
Merlin Entertainments
Methodist Homes 
for the Aged
Nuffield Health
Park Resorts 
Pets at Home 
Punch 
Royal Bank of Scotland 
Scottish & Newcastle
Pub Company 
Sodexo Prestige 
Starwood Capital Group
Swarovski
Tesco Pharmacy
The Orders of St John
Care Trust 
The Restaurant Group
Travelodge
Virgin
WH Smith
Whitbread
Wickes
Wilkinson
Woburn Abbey 
and Safari Park
Zara
DUBAI
THE MIDDLE 
EAST &
NORTH AFRICA
Offices
39 offices across the UK, Continental Europe, Canada and the Middle East.
Employees
Employing up to 1 ,200 professional and specialist staff.
Our audiences Christie Group plc
Whitefriars House
6 Carmelite Street
London EC4Y 0BS
United Kingdom
T: +44 (0) 20 7227 0707
F: +44 (0) 20 7227 0708
E: executive@christiegroup.com
www.christiegroup.com
Annual Report for 2011
Orchestrating
our strategy
1 Christie Group Annual Report 2010
About us
Professional Business Services
The expertise offered by Christie+ Co, Christie Finance
and Christie Insurance covers all aspects of valuing,
buying, selling, developing, financing and insuring 
a wide variety of businesses. Its scope is complemented 
by the comprehensive appraisal and project
management services available from Pinders.
Stock & Inventory Systems & Services
Orridge and Venners are the leading specialists in stock
control and inventory management services. Orridge
specialises in all fields of retail, Venners focuses on the
hospitality sector and Vennersys provides software and
systems to the leisure and hospitality sectors.
Our sections
Contents
1 Highlights of the year
2 Chairman’s statement
4 Our strategy
6 Orchestrating our strategy
8 Chief Executive’s review
14 Cross selling
16 Divisional review
28 Financial review
29 KPIs
30 Board of directors
30 Company information
31 Directors’ report
32 Corporate governance
35 Remuneration report
37 Statement of directors’ responsibilities
38 Independent auditor’s report
39 Consolidated statement 
of comprehensive income
40 Consolidated statement of 
changes in shareholders’ equity
41 Consolidated statement of
financial position
42 Consolidated statement 
of cash flows
43 Company statement of changes 
in shareholders’ equity
44 Company statement of 
financial position
45 Company statement of cash flows
46 Notes to the consolidated
financial statements
80 Five-year record
81 Shareholder information
83 Directory
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.
Christie Group plc ANNUAL REPORT 2011