Christie: Hospitality services group ‘improved’ after Wilko-affected torrid year
Hospitality business services group Christie reported an “improved” trading performance at the end of 2023, after a torrid year including the administration of its client Wilko.
The firm told markets this morning it had a better second half of 2023 after it sounded an earnings alarm in August last year, leading to its shares plummeting almost 30 per cent.
Its results are now expected to be in line with market expectations, when released next month.
Since August 2023 its share place dropped dramatically from 147.5p to 110.0p per share, representing a 27.27 per cent share decline overall in the last 12 months.
Christie, which offers services to the hospitality, leisure, healthcare, medical, childcare, and education and retail sectors, operates through two key arms. Professional and Financial Services (PFS) and its Stock & Inventory Systems & Services (“SISS”)
It told markets this morning its PFS division had returned to “more encouraging levels following the end of the summer period, notwithstanding the subsequent and frustrating delay of some deals into 2024 which were otherwise expected to exchange in the latter part of 2023. “
SISS fared less well however, with revenues lower in the second half than the first, in part due to the cost of living crisis and inflation. It said this was down to “traditional seasonal trading patterns” taking effect which were “exacerbated by the loss of Wilko as a client when it fell into administration”.
Christie said WIlko going down “partially impinged upon the improved” performance from PFS, which improved its revenues in the second half. It said this will contribute to the company expecting to report a second-half operating profit.
It warned however that there would also be “exceptional items” taken away from the profits after July board changes, and restructuring.
It said the company is seeing “positive and encouraging activity” at the start of 2024, and its “transactional and advisory pipelines” had recovered from the previous year.