Today’s AGM Trading Update from the Christie Group (LON:CTG) was really quite positive.
On 9th April I featured the company suggesting that the group’s shares were ready to reflect the recovery that was underway.
The shares were then 92.5p and I reckoned that they could be a very interesting Recovery Stock, with aims of trading well in the 90p to 130p range.
The AGM Update
The company, which is a leading provider of Professional & Financial Services and Stock & Inventory Systems & Services to the hospitality, leisure, healthcare, medical, childcare & education and retail sectors, updated on its the current year trading in its first five months to end May.
The business continued to see a more positive trading environment for its transactional brokerage business compared to that experienced in the first half of 2023, and that was reflected in an improved year-on-year performance for the period.
Management Comment
CEO Dan Prickett stated that:
“The Board maintains its expectation for the Group's improved performance in 2024, with PFS revenues once again expected to be weighted toward the second-half.”
Analyst View
Research analyst Rob Sanders at the House Broker, Shore Capital Markets, now has estimates out for the current year to end December to lift revenues to £75.8m (£65.9m) while the company stages a total recovery from last year’s adjusted pre-tax loss of £1.6m to a profit of £1.6m.
That should generate earnings of 4.6p (4.2p loss), while helping to increase its dividend from a totally uncovered 1.0p in 2023 to 1.5p this year.
He sees £81.4m revenues in 2025, with almost double profits of £3.1m, earnings of 9.2p and a double dividend to 3.0p per share.
My View
The shares today have reflected the good news with a near 6% rise to 121.68p.
So that has shown a healthy 31.5% uplift since 9th April.
It would be sensible to anticipate some profit-taking on the positive news.
However, I do note that Sanders is estimating £5.6m profits and 16.4p earnings, with a 5.5p dividend per share for the 2026 year – which infers that the shares have even further to climb, so it may prove wise for medium-term investors to buy on any dips.
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