Disposal of Orridge Holdings Limited

Christie Group plc (CTG.L), the leading provider of Professional & Financial Services and Stock & Inventory Systems & Services to the hospitality, leisure, healthcare, medical, childcare & education and retail sectors, is pleased to announce that on 4 November 2024 it sold the entire issued share capital of Orridge Holdings Limited to RGIS Inventory Specialists Limited ("RGIS") for a cash consideration of £5m.

The consideration is structured on a cash free/debt free basis, and comprises an upfront cash payment of £4m and up to a further £1m of retained consideration to be payable 12 months after completion. The upfront payment of £4m is itself subject to normal completion account adjustments.

Orridge is Europe's longest established stocktaking business, having been founded in 1846. It's pan-European services are co-ordinated from operational bases in the UK, Germany and Belgium. Orridge specialises in all fields of stocktaking including high street retailing, warehousing and factory operations, pharmacies and supply chain services. As at 31 December 2023, Orridge held gross assets of £4.5m and generated a loss before tax and extraordinary items of £1.2m.

The disposal reflects the Board's continued efforts to improve the quality of earnings, and the net proceeds from the disposal will be used to strengthen the balance sheet and allow the Group to focus on growth opportunities in its core businesses and end markets to deliver value for all stakeholders.

Dan Prickett, Christie Group Chief Executive Officer commented:

"Following a review of its performance and potential future funding requirements within the Christie Group, the Board unanimously concluded that we should explore opportunities for divesting the Orridge brand. We are therefore delighted to have completed a sale which eliminates the exposure to the Group of future operating losses from the brand, while providing Orridge's clients and staff with the opportunity to benefit from being part of RGIS's commitment to their own international expansion strategy and the enhancement of their service proposition in their key European markets."

Simon Herrick, Christie Group Chairman commented:

"We are delighted with this significant step towards improving the value of Christie Group plc for the benefit of its stakeholders and thank all involved for their hard work in achieving it. This transaction will improve the Group's near-term profitability and cash flow by reducing the funding of subsidiary trading losses. It will release both time and resource to invest in the profitable growth of our core businesses and our strategically important international expansion."