REG - Churchill China PLC - Final Results
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RNS Number : 1493A Churchill China PLC 13 April 2026
13 April 2026
CHURCHILL CHINA plc
("Churchill" or the "Company" or the "Group")
FINAL RESULTS
For the year ended 31 December 2025
Resilient performance underpinned by robust cash generation and strategic
discipline
Churchill China plc (AIM: CHH), the manufacturer of innovative performance
ceramic products serving hospitality markets worldwide, is pleased to announce
its Final Results for the year ended 31 December 2025.
Financial Overview
2025 2024
Revenue £76.3m £78.3m
Profit before tax £6.0m £8.5m
Cash and cash equivalents £10.8m £10.1m
EBITDA £9.4m £11.7m
EPS 39.7p 57.9p
Interim dividend 7.0p 11.5p
Final dividend 14.0p 26.5p
Business Overview
· Stable Performance across European, North American and UK
hospitality markets, reflecting the strength of Churchill's brand and customer
partnerships.
· Robust cash generation of £0.7m, delivered through
disciplined working capital and operational controls.
· Inventory reduction of £2.0m, improving agility and
strengthening the balance sheet.
· Energy costs well controlled with substantial forward
purchased for 2026 & 2027.
· Continued capital investment enhancing factory efficiency,
automation and productivity.
· Improved European & UK hospitality pipeline entering 2026
compared with the prior year.
· Strong replacement business, underscoring the durability of
Churchill's customer base.
· Well-funded position, with a strong balance sheet, supporting
future growth and investment.
· Confidence in the Group's long term outlook.
· Final dividend of 14.0p giving a full year dividend of 21.0p.
David O'Connor, Chief Executive of Churchill China commented:
"While 2025 was another challenging year for the Group and overall revenue was
under pressure. We made meaningful progress in areas within our control. Our
focus remained on driving improved factory performance and I am pleased that
our operational initiatives have delivered clear benefits.
Sales performance across European, North American and UK hospitality markets
held up during a period of continued market contraction, reflecting the
strength of Churchill's brand and customer partnerships. We believe that we
grew market share during the year in each of these markets, and in the
2(nd) half our European sales were 7% above the prior year
The benefits of capital expenditure on more efficient and automated factory
processes continue to come through and we have a planned roll-out of further
improvements for the next few years.
Churchill enters 2026 operationally stronger, with improved factory
efficiency, controlled costs, and a more robust UK pipeline. We remain
confident in the resilience of our business and our ability to deliver
long‑term sustainable value for shareholders."
Analyst Meeting
An in-person meeting for analysts will be held at 10:00am on 13 April 2026 at
the offices of Burson Buchanan, Rose Court, 2 Southwark Bridge Road, London,
SE1 9HS. An online facility is available for those unable to attend in person.
To register for either the in-person or online meeting please contact Burson
Buchanan by email at Churchillchina@buchanan.uk.com
(mailto:Churchillchina@buchanan.uk.com) or telephone 020 7466 5000.
For further information, please contact:
Churchill China plc Tel: 01782 577566
David O'Connor / James Roper / Michael Cunningham
Burson Buchanan Tel: 020 7466 5000
Helen Tarbet / Abigail Gilchrist / Sophie Wills
ChurchillChina@buchanan.uk.com (mailto:ChurchillChina@buchanan.uk.com)
Investec Bank plc (Nominated Adviser and Joint Broker) Tel: 020 7597 5970
David Flin / Oliver Cardigan
Panmure Liberum Limited (Joint Broker) Tel: 020 3100 2000
Edward Thomas / John Moore
Chairman's Statement
Operational and commercial performance
I am pleased to present the results for the year to 31 December 2025. As we
have previously commented throughout the year, the hospitality industry in our
markets remained challenging, reducing the number of new installations of
tableware and increasing our reliance on the more predictable replacement
business. As a result, revenue in the year reduced 2.6% to £76.3m, (2024:
£78.3m). Reduced manufacturing volumes were exacerbated by a planned
reduction in stock levels, leading to higher manufacturing cost per piece, on
top of the wage and NI increases that took effect in April 2025. These
combined pressures on the business have led to a profit before tax at £6.0m
for the year (2024: £8.5m) and represented a return on sales of 7.9% (2024:
10.9%).
The Group traded in line with the expectations we set in July, which reflected
the weaker trading and cost positions that had become evident. The second half
of the year showed early signs of improved trading in mainland Europe.
Continental Europe our largest hospitality market, delivered a strong second
half, recovering from a slower H1, to end the year with revenues broadly flat
on 2024. The UK however was weaker in the second half as domestic political
uncertainty ahead of the November Budget continued to erode business
confidence. UK pub groups continued to replenish stock and there were notable
orders from some chains for added value product. As in previous years, we
benefited over the Christmas run in from our differentiated and best-in-class
service proposition.
United States tariffs have had little impact on our business, given that much
of the imported ceramics into the US come from the Far East which have been
harder hit with tariffs than the UK. We have therefore managed to hold our
prices into the US and delivered year-on-year growth at constant currency and
in GBP terms despite the devaluation of the dollar over the year. Rest of
World regions contributed some 8% to revenues and traded softly overall
through the year, as large projects, on which this segment relies, were
delayed and pushed out.
Globally the hospitality trade continues to suffer from increased inflationary
costs, leading to closures and reduced profitability in the restaurant and
casual dining sectors. This in turn caused the sector to reduce or delay
project opportunities in 2025. However, the pipeline of projects going into
2026 is stronger than the prior year.
The operations team have continued to focus on delivering improvements both in
yields and the returns from major capital purchases which are now contributing
to our factory performance. We have achieved meaningful reductions in waste
however there is still a significant opportunity to pursue further
improvements.
Reduced manufacturing levels have allowed the Group to reduce stocks by £2.0m
leading to an improvement in our year end cash position. As always Group
strategy is to maintain a strong unencumbered balance sheet in order to be
able to fund manufacturing or product opportunities as they arise.
Dividend
Given the current challenging trading backdrop, the Board has taken the
difficult but prudent decision to reduce the dividend. We therefore propose
a final dividend of 14.0p per share giving a total dividend of 21.0p per share
for the year. This final dividend, subject to shareholder approval at the
Company's AGM on 29 May 2026, will be paid on 4 June 2026 to shareholders on
the register on 1 May 2026. Our aim is to return to increasing dividends
year on year as the Group returns to growth.
Future growth
In a hospitality market that is currently weakened in our major markets,
growth is naturally more difficult to achieve, but the Group continues to
identify Continental Europe as a potential growth area due to our low market
share and our high level of sales representation in the area. We continue to
increase our sales presence in key markets to produce further new
opportunities. The recent tariff increase on imported Chinese product into
Europe also presents us with an opportunity to win new business.
The Company conducted an active new product launch programme throughout the
year which was well received by the market, showcasing both innovative design
and the benefits of more flexible manufacturing processes enabled by our
recent capital expenditure programme.
We continue to invest in productivity and in 2025 we completed commissioning
of our new plate making equipment, which is both more agile and energy
efficient. With further similar capital, we will replace our thirty-year-old
equipment which is approaching end of life. We also saw the delivery of
further electrification, replacing two more gas fired glazing pre heat units
which significantly reduce our carbon footprint and improve yields in the
process. Finally, we have automated a large proportion of our packing process
leading to significant cost saving.
We are also reviewing opportunities to distribute non-ceramic products in the
same product areas, and which could be delivered by our strong sales network.
Whether by acquisition or through exclusive distribution agreements, this
could offer an additional growth path to Churchill and strengthen the offering
to our distributor customer base.
Employees
I continue to be impressed at the commitment and effort of all our staff
during a three-year period that has been exceptionally challenging. I would
like to take this opportunity to thank all our colleagues for their
commitment, effort and diligence through the year and I look forward to 2026
being a more settled and profitable year for all.
Environmental, Social and Governance ('ESG')
ESG remains a key focus of the board with a continued strengthening of our
governance procedures. We adopted the new QCA code last year ahead of the
required schedule and will continue to interact and take account of our
shareholders views. As previously mentioned, we have continued our journey to
reduce our reliance on fossil fuels with the replacement of key equipment that
both transfers our dependence on gas into electricity but more importantly
reduces our overall energy requirement.
Outlook
The Group continues to offer world class products coupled with a high-level
service offering. With a recovering market and our investment in our sales
and service offering we see a bright future for Churchill. We are focussed on
leveraging new technologies to drive efficiency improvements in both the
factory and in the administrative and sales areas. The introduction of our
new enterprise resource planning ('ERP') system, due for implementation in
2027, will provide a strong foundation in the adoption of AI technologies to
further drive this journey and improve efficiencies across the business
particularly in respect to production planning and optimisation of stock
holding.
The outbreak of the Middle East conflict has created uncertainty in the energy
markets and, as an energy intensive company, Churchill has exposure to
increasing prices. The Group manages its risk exposure and is materially
hedged for the year-ahead. In 2026 the Group has open exposure to circa 16%
of its gas costs and has forward purchased 64% of its gas requirements for
2027. The Group has modelled the impact of rising costs under a number of
scenarios and, whilst profitability would be impacted, it is anticipated that
it is only in a prolonged conflict with dramatically increased pricing, that
this would materially impact the expected results.
We continue to invest heavily for productivity and efficiency on the factory
to drive margin improvement. When appropriate this will allow us to position
ourselves more competitively in the market, supporting a return to sales
growth.
Robin G.W. Williams
Chairman
10 April 2026
Strategic report
for the year ended 31 December 2025
The Directors present their Strategic Report for the Group for the year ended
31 December 2025.
Principal activities
Churchill China plc is a UK based manufacturer of performance tableware
primarily supplying into the hospitality sector. Utilising a high-performance
vitreous body, the Group leverages its technical advantages to deliver superb
value in use and value for money to its end users.
In addition to the supply of tableware, the Group supplies the majority of the
UK pottery industry with materials for the manufacture of ceramics. The Group
utilises its extensive technical abilities to supply high quality body
materials, glaze and colour.
Business model
The Group supplies customers worldwide with a range of high-performance
tabletop products, primarily ceramic tableware. Most of these revenues come
from our UK manufacturing facilities although we do supplement these with some
outsourced products with a growing proportion coming from associated tableware
categories such as cutlery.
We focus primarily on the hospitality sector which generates most of our
revenues. This focus is driven by the attractiveness of the sector, with
revenues seen as long term, recurring and, whilst vulnerable to short term
economic fluctuations, reasonably stable.
The market is highly fragmented and so our strategy of identifying strong,
in-territory distributors to work with, allows us to deliver to a wide range
of customers. From large chains through to small independent restaurants, we
are perfectly placed to offer innovative product and design to give a
competitive, differentiated advantage to our customers, where our innovative
design and supply strengths are important to their hospitality offering.
The growth strategy for the Group is to focus on those areas currently
underserved by our competitors with regards to customer service. Our ability
to fulfil customer orders, in most cases, in under 48 hours gives us a
significant competitive advantage.
Our business model is designed to allow us to identify markets where we may
profitably grow our revenues on a sustainable long-term basis. We research
customer product requirements and distribution structures in new markets and,
if they offer profit opportunities, invest to generate revenue, margin and
ultimately a return for the business and our stakeholders.
We continue to expect short to medium term growth to be weighted towards
export markets and particularly Europe, where we continue to develop our
distribution and sales structure.
Our target remains to deliver progressive increases in the proportion of added
value products within our business. We invest steadily in improving the
efficiency and agility of our production capability and in improving our
ability to offer added value to our customers. This involves investment in new
product development as well as capital expenditure on productive improvements.
We expect to continue to invest for the long term in our UK manufacturing
facilities. To facilitate this during 2025 the Group has delivered new
products at lower price points to allow customers to continue converting from
standard whiteware into added value products.
As a major energy user, we have recognised and acknowledged the importance to
our future operations of reducing our energy consumption substantially. We
have commenced a long-term process to develop several initiatives to meet
forward energy targets. A number of these initiatives are underway. We are
pleased with the potential impact from these actions but recognise that this
is a long-term process requiring continuing focus.
As our business develops, we need different skills and a core part of our
model is to train, develop and recruit staff to meet these requirements.
Culture and Values
As a company with a long history, our values are well defined. Innovation,
cooperation, uncompromising customer service, trust and honesty are the core
values that drive our behaviours on a day-to-day basis.
Our approach as a business is based on making decisions that are aligned with
adding long term value to our shareholders, whilst being mindful of our
responsibilities to our wider stakeholders.
The business culture is driven by the executive leadership team and hinges on
openness and giving our colleagues the space to develop and grow. While there
are controls in place to protect the business, colleagues are given the space
to make decisions without fear of failure. The average term of service of our
staff is 11.8 years, which is a key KPI for the business and we believe this
highlights our ability to create a good and supportive working environment for
our colleagues.
The Board believe that this environment allows our colleagues to become the
leaders of the future by developing their skills and abilities.
Finally, the Group engages on multiple levels with our customers, engaging at
an early stage of the design process to get the market view of proposed
products, and delivering on our promise of "performance delivered".
Business environment
2025 was another challenging year for the hospitality market with the ongoing
economic environment continuing to squeeze the profitability of restaurants
and other food outlets. The Group's strong market position provides some
protection from this disruption, with a large proportion of revenue coming
from replacement business which tends to continue regardless of the underlying
economic environment.
As a result of this challenging market, price increases remain difficult to
put through, with the obvious need to cover our own costs having to be
balanced with the impact on our end users. The Group implemented a 2.9% price
increase at the end of 2025.
Whilst we are seeing a reduction in the number of new openings in our more
established markets our pipeline for installation business remains strong
going into 2026. The Group continues to have a strong installed base which
allows a high level of replacement business where customers will continue
using Churchill products to replace breakages.
Evidence from our end users suggests that the hospitality trade is still
healthy, and consumers continue to eat out. Profitability within
establishments is being compressed and it is this dynamic that is restricting
the growth in sales in contrast to the growth which the group has seen for the
last 15 years.
Promoting the success of the Company
It is the duty of the Directors under s172 of the Companies Act 2006 to
promote the long-term success of the Company to the benefit of members as a
whole and acting fairly with regard for the interests of other stakeholders in
the business.
Other stakeholders include employees, customers, suppliers, our pension fund
members, our local and the wider community, government, and other regulatory
bodies.
Churchill has been in existence since 1795 and the company has always taken a
long-term approach to business, particularly in relation to investment and in
understanding the opportunities open to us and the risks to which we are
exposed. To operate a successful and sustainable business model it is
necessary to ensure that all the contributors to the success of the business
understand their place within it and feel that the Group operates ethically
and fairly in its dealings with them.
The Board has regard to the interests of all stakeholders in its discussions
and reaches balanced decisions with the sustainability of the business
uppermost in its considerations. Churchill maintains a financial model that is
aligned with this objective such that capital allocation decisions, where
possible, do not unfairly prioritise the interests of one group of
stakeholders over others. The Board is aware of the need to support regular
revenue and capital investment in the development of our business, and we
orientate our operations accordingly.
We aim to deliver well designed, performance products and outstanding service
at appropriate price levels to our customers. At the same time, we acknowledge
that to meet these levels of customer service, we are reliant upon good
relationships with a well-motivated workforce and fair and balanced
relationships with a range of suppliers. We understand that we have a
responsibility to pay appropriate levels of taxation and to support the future
pensions of our scheme members. We consider our dividend policy carefully in
light of the overall needs of the business and the interests of other
stakeholders. Our policy is formulated to ensure that dividend payments are
not excessive in relation to profits, and do not introduce excessive levels of
risk in relation to the sustainability of the business.
Churchill aims to manage its effect on our local community and the
environment. We have engaged with the community on an ongoing basis through
charitable and educational support. The business operates several initiatives
aimed at minimising our waste products, recycling waste where possible and in
the reduction of our energy usage and carbon footprint. We have made several
investments and process changes to reduce our use of energy. These investments
continue and have had significant impacts on process stability and yield,
allowing us to improve efficiencies in the factory.
The business has regular contact with our workforce through both formal and
informal mechanisms, the recent addition of a Factory and Staff Engagement
Committees has allowed us to engage more directly with the workforce to
understand the pressures that they are under and to address non-financial
issues that are impacting their working time with us. The scale of our
business and our open culture allow the Board and management to engage with
our employees on a day-to-day basis and employees are encouraged to raise
issues. We have a recognised trade union representing most of our weekly paid
employees and we meet regularly with their representatives. However, we
believe that other initiatives including on-site briefings, communication
boards and regular news updates provide the most important means of engaging
with our workforce. We believe that our workforce is engaged and motivated.
We meet with suppliers on a regular basis to provide information in relation
to our forward plans and review performance. As in other elements of our
business, we enjoy long standing relationships with most of our suppliers. On
average we pay suppliers within 38 days (2024: 36 days) of invoice. We believe
our suppliers regard Churchill as a good customer.
The Board consults regularly with shareholders through formal meetings,
company visits and informal discussions.
Voting on resolutions at the 2025 Annual General Meeting was positive with
over 98% of votes cast being in favour of the resolutions put to the meeting.
The Board reviews voting carefully after each Annual General Meeting.
Resources and relationships
Our key resources remain our employees and customers, our technical and
business skills, our long heritage of manufacturing and willingness to embrace
new methods to deliver an outstanding service.
One of the key elements of our sustainable market advantage is the success of
our innovation process. We have developed this process to research and
identify market trends and design new products to satisfy these trends.
Churchill has a significant technical advantage in the nature of the product
we offer to our markets. Our product offers significant benefits in terms of
durability and overall lifetime cost to users. This technical advantage has
been developed over many years, and we hold significant intellectual property
in our materials and processes.
The Group operates from two sites in Stoke on Trent, England, a renowned
centre for ceramic excellence worldwide. This gives us access to key
suppliers, technical support and experienced staff. Our main manufacturing
plant and logistics facilities have benefitted from significant and regular
long-term investment to improve our business's efficiency and effectiveness.
We also operate from several smaller locations and representative offices
around the world, including a manufacturing facility in Romania.
Our employees also give us significant advantage. We believe we recruit,
retain, and develop high quality individuals at all levels within the business
who contribute towards the success and growth of the Group and maintain our
core values. We have maintained our investment in training and development to
provide more fulfilling roles for our staff and improve the effectiveness and
productivity of our workforce. The Group invests in robotics and mechanisation
in areas that allow the removal of repetitive and unfulfilling tasks. During
the year, due to the escalating costs of labour, this approach has been
accelerated. The average head count during the year has reduced reflecting our
investments in automation and reduced volumes.
We have long standing relationships with our customers. Whilst many of these
are not contractual, we continue to supply the same customers year after year
with products that meet their requirements. Our customers value our technical
ability, our service and our commitment to high quality design and innovation.
Churchill has long enjoyed a market leading reputation for service. Our
operational plans are geared towards meeting high levels of on time delivery
both in the UK and overseas. We hold extensive inventories to meet these
service requirements and have emphasised flexibility and responsiveness within
our manufacturing process.
Strategy
The Group's objective is to generate long term benefits to all stakeholders in
the business by the efficient provision of value to customers through
excellence in design, quality and service.
We aim to increase the value we provide to our stakeholders through steady
increments to sales and margins, through alignment of our cost base with
profit opportunities and a focus on cash generation.
Our long-term aim is to build our presence in markets offering sustainable
levels of revenue and profitability. For several years this has led us towards
development of our strong UK position into hospitality markets worldwide and
particularly in Europe.
Innovation remains important to support our ambition to develop our business.
We continue to invest significant resources in new staff and flexible
technology to increase our capability in this area. It is a key strategic aim
to design products that meet our end users' requirements in terms of
performance, shape and surface design. Our target markets require products
that are aesthetically appealing whilst also performing to appropriate
customer and technical standards.
We understand that quality must exist throughout our business process. Quality
is reflected not only in the appearance of our product but in its design, its
technical performance and in the systems which support the fulfilment of our
contract with our customers. We invest to maintain the performance of our
products and to extend our capabilities.
Customer service remains a major part of our strategy, and the fulfilment of
customer expectations is critical to the maintenance of good relationships.
Our production and logistics facilities have been designed to balance
efficiency and flexibility within manufacturing to ensure that we can respond
quickly to unexpected demand levels and to meet ambitious on time, in full,
delivery targets. We invest regularly in these facilities to maintain a market
leading position in customer service.
Performance
During the year the Group took the decision to reduce manufacturing output in
order to reduce our excess stock position. When combined with the reduced
hospitality sales volumes during the year the impact of these two factors was
to reduce contribution margin due to the operational gearing of the factory,
producing at below optimum cost recovery levels.
Revenue in the year fell 2.6% from £78.3m in 2024 to £76.3m in 2025. The UK
performed well in H1 but a slightly harder second half meant that hospitality
revenue ended the year £0.3m behind 2024. Europe had a stronger performance
in the second half of the year, meaning that the region finished the year only
£0.3m behind 2024. North America ended the year ahead of 2024 by £1.3m
despite a devaluation in the Dollar. Finally, the Rest of the World finished
the year £1.7m behind 2024, driven primarily by reduced project work
completing in the year.
2025 2024
Hospitality Retail Materials Total Hospitality Retail Materials Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
United Kingdom 25,218 135 6,106 31,459 25,301 307 7,182 32,790
Rest of Europe 30,328 192 - 30,520 30,515 275 - 30,790
USA 6,519 2,039 - 8,558 6,594 638 - 7,232
Rest of the World 5,296 444 - 5,740 6,981 486 - 7,467
67,361 2,810 6,106 76,277 69,391 1,706 7,182 78,279
The Group has continued to maintain a good level of sales in the UK given our
strong market position in the pub chain sector, which tends to be less
impacted by economic sentiment compared with independents.
During the year we focussed on a reduction in our excess stock position whilst
maintaining an exemplary customer service provision. Customer deliveries
remained in excess of 98% delivered within 48 hours backed up with over 70% of
European orders being fulfilled within 24 hours from our European distribution
centre. This service offering sets us apart from the competition.
We had very successful Spring and Summer launches with a focus on inkjet
products which have been well received. The inkjet process gives us a high
degree of flexibility within the factory and is perfect for delivering high
quality hospitality designs at good margin. With low to no changeover times
the batch sizes can be better streamlined through the factory and the agility
allows us to schedule longer runs with varying designs, improving factory
recoveries.
The hospitality trade continues to be relatively buoyant, however
profitability remains under pressure. This has lead to good levels of
replacement business but new installations in the rest of the world have been
delayed and this has caused a reduction in turnover in this area of the
business.
Furlong Mills, our materials business, performed well, despite a slowdown in
the wider ceramics industry in Stoke on Trent and the business managed to
outperform management expectations. Actions were taken at the start of the
year to counteract the impact of this reduced activity leading to improved
contribution and profitability. The business continues to benefit from the
technical expertise within Furlong Mills and this expertise is key in our
plans to improve profitability through innovative materials.
Due to the actions on stock, together with the continuing cash generative
business model, cash increased during the year by £0.7m. In addition to the
stock movements, debtors increased by £1.3m as a result of Novembers sales
which were amongst the highest months turnover ever recorded by the Group and
an increase in trade payables of £0.5m.
The Group's defined benefit pension scheme surplus position decreased during
the year due to expenses incurred in continuing to match the funding position
with that of insurers and actions relating to data cleansing ahead of
Guaranteed Minimum Pension Equalisation (GMPE). The Group has assessed the
recoverability of the net asset arising from the scheme surplus and considers
that, based on the Trust Deed and Scheme rules, the surplus would be
recoverable on cessation of the scheme.
Environmental, Social and Governance (ESG)
ESG remains an important part of the culture of Churchill China plc. As a high
energy use company and one of the largest employers in the Stoke-on-Trent area
we are aware of our responsibilities to the wider community and have made this
a part of our DNA.
The Group's ESG strategy is to be, "doing the right thing" with the
knowledge that this works for both ESG factors and for the bottom line. As a
result, the Group's ESG strategy is focussed on reducing the reliance on
fossil fuels by using renewable sources of energy production along with new
technology to reduce the actual usage of energy. These actions are only taken
where there is a clear fit with the Group's investment strategy and where
returns are clearly defined.
Our ESG committee, comprised of Executive Directors and Senior Management,
have continued to develop our approach and further embed the ESG objectives
and actions into our business planning. During the year the Group has
continued on its journey to improve our ESG position. We have installed two
additional electric pre heat units on our glazing lines which have delivered a
4% reduction in energy consumption, with a corresponding reduction in carbon
emissions. In addition the pre heats have improved yields with the resultant
reduction in raw materials also leading to a reduction in emissions.
The committee also continues to assess the pressures that may affect the
business in the medium term through to 2030 and the longer term issues that
may impact shareholder value through to 2050.
Whilst these timeframes naturally mean that there is a significant level of
uncertainty in any issues identified, this strategy aligns with the Group's
long-term approach to business.
We use a significant amount of energy in our processes, and this is an area of
strategic focus for the business. Substantial progress has been made in
identifying efficiency, recovery, and generation initiatives across our
operations. We have researched proven and emerging technologies to assess how
these can potentially combine to a path to Net Zero, whilst maintaining the
performance characteristics of the technically differentiated and durable
product that we manufacture. This process has included the continuation of
several research projects in relation to our materials and processes,
contribution to industry initiatives and use of specialist advice from
suppliers and other experts.
The Group has continued to evolve its environmental strategy during the year
with, as previously mentioned, a number of capital projects focussed at
reducing the amount of CO2 generated in the production of our products. We
have continued converting gas processes to electricity and have focussed on
equipment which also reduces our reliance on compressors, which are a
significant contributor to energy usage. The new plate making machine utilises
servos which are more energy efficient than the compressor driven machines
that it will ultimately replace. The Group intends to purchase a second
machine during 2026 to continue this journey.
The business employs over 680 people across three manufacturing sites who
work predominantly in an industrial environment. Our Health and Safety
procedures and systems have continued to manage what is an important area for
the business. Unfortunately, we did have a lost time incident during the year
breaking our long run of time without an incident. As is standard in our
business this resulted in a root cause analysis of the incident along with a
wider review of health and safety but through the lens of the incident.
Several corrective actions were taken to minimise any future risks to our
colleagues.
We have also implemented a number of initiatives in relation to our workforce,
including the creation of a factory engagement committee, and our engagement
with our local community. We have always prioritised training and development
of our workforce and we have continued to invest in this area. Future plans
emphasise the improvement of our employee's working environment.
We continue to strengthen our governance procedures within the business and
aim to adhere to the new QCA code. Last year we were early adopters of the
requirement to have all directors putting themselves up for re-election and
this year we will take the step to make the vote on the remuneration report
binding.
The Company continues to test the independence of the board and confirms that
all 4 non-executive directors are considered independent.
During 2025 the Board repeated its internal evaluation of its effectiveness.
The minor issues identified in the 2024 review were reviewed and no
significant issues were highlighted, the Board commits to continue with this
process in the coming years.
The Group continues to operate a business model which is focused on long term
sustainable success, delivering returns to all stakeholders. We will continue
to develop and evolve our ESG agenda and over time, will translate our goals
and objectives into a published reporting framework, with benchmarks, key
performance indicators and our progress against them. The following tables
identify and update our goals and actions to achieve them.
Consolidated Income Statement
for the year ended 31 December 2025
2025 2024
£'000 £'000
Revenue 76,277 78,279
Operating profit 5,643 7,995
Finance income 559 631
Finance costs (175) (90)
Profit before income tax 6,027 8,536
Income tax expense (1,666) (2,171)
Profit for the year 4,361 6,365
Basic earnings per ordinary share 39.7p 57.9p
Diluted earnings per ordinary share 39.7p 57.9p
All of the above figures relate to continuing operations.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
2025 2024
£'000 £'000
Profit for the year 4,361 6,365
Other comprehensive (expense)/income
Items that will not be reclassified to profit and loss:
Remeasurements of post-employment benefit obligations net of tax (445) (835)
Items that may be reclassified subsequently to profit
and loss:
Currency translation differences (11) 4
Other comprehensive expense for the year (456) (831)
Total comprehensive income for the year 3,905 5,534
Amounts in the statement above are disclosed net of tax.
Consolidated Statement of Financial Position
as at 31 December 2025
2025 2024
£'000 £'000
Assets
Non-current assets
Property, plant and equipment 26,467 24,578
Intangible assets 454 616
Deferred tax assets 177 131
Retirement benefit assets 7,651 8,179
34,749 33,504
Current assets
Inventories 21,328 23,318
Trade and other receivables 13,445 12,191
Cash and cash equivalents 10,808 10,100
45,581 45,609
Total assets 80,330 79,113
Liabilities
Current liabilities
Trade and other payables (10,495) (11,508)
(10,495) (11,508)
Non-current liabilities
Lease liabilities (2,477) (550)
Deferred tax liabilities (5,819) (5,792)
Non-current liabilities (8,296) (6,342)
Total liabilities (18,791) (17,850)
Net assets 61,539 61,263
Equity attributable to owners of the Company
Issued share capital 1,103 1,103
Share premium account 2,348 2,348
Treasury shares (431) (431)
Other reserves 1,195 1,160
Retained earnings 57,324 57,083
Total equity 61,539 61,263
Consolidated statement of changes in equity
for the year ended 31 December 2025
Retained earnings£'000 Issued share capital Share premium account Treasury shares Other Total equity
£'000
£'000
£'000
reserves
£'000
£'000
Balance at 1 January 2024 55,558 1,103 2,348 (431) 1,363 59,941
Comprehensive Income/(expense):
Profit for the year 6,365 - - - - 6,365
Other comprehensive income/(expense):
Depreciation transfer - gross 12 - - - (12) -
Depreciation transfer - tax (3) - - - 3 -
Re-measurement of post-employment benefit obligations - net of tax (835) - - - - (835)
Currency translation - - - - 4 4
Total comprehensive income 5,539 - - - (5) 5,534
Transactions with owners
Dividends (4,014) - - - - (4,014)
Share based payments - - - - (198) (198)
Total transactions with owners (4,014) - - - (198) (4,212)
Balance at 31 December 2024 57,083 1,103 2,348 (431) 1,160 61,263
Balance at 1 January 2025 57,083 1,103 2,348 (431) 1,160 61,263
Comprehensive Income/(expense):
Profit for the year 4,361 - - - - 4,361
Other comprehensive income/(expense):
Depreciation transfer - gross 12 - - - (12) -
Depreciation transfer - tax (3) - - - 3 -
Re-measurement of post-employment benefit obligations - net of tax (445) - - - - (445)
Currency translation - - - - (11) (11)
Total comprehensive income 3,925 - - - (20) 3,905
Transactions with owners
Dividends (3,684) - - - - (3,684)
Share based payments - - - - 55 55
Total transactions with owners (3,684) - - - 55 (3,629)
Balance at 31 December 2025 57,324 1,103 2,348 (431) 1,195 61,539
Consolidated Statement of Cash Flows
for the year ended 31 December 2025
2025 2024
£'000 £'000
Cash flows from operating activities
Cash generated from operations 9,282 5,085
Interest received 111 227
Interest paid (175) (90)
Income taxes paid (1,773) (1,574)
Net cash generated from operating activities 7,445 3,648
Cash flows from investing activities
Purchases of property, plant and equipment (2,451) (3,003)
Proceeds on disposal of property, plant and equipment 32 39
Purchases of intangible assets (2) (135)
Net cash used in investing activities (2,421) (3,099)
Cash flows from financing activities
Dividends paid (3,684) (4,014)
Principal elements of leases (632) (368)
Net cash generated used in in financing activities (4,316) (4,382)
Net increase/(decrease) in cash and cash equivalents 708 (3,833)
Cash and cash equivalents at the beginning of the year 10,100 13,933
Cash and cash equivalents at the end of the year 10,808 10,100
Reconciliation of Operating Profit to Net Cash Inflow from Operating
Activities
2025 2024
£'000 £'000
Continuing operating activities
Operating profit 5,643 7,995
Adjustments for:
Depreciation and amortisation 3,806 3,666
Gain on disposal of property, plant and equipment (24) (13)
Charge/(reversal) for share-based payments 55 (198)
Defined benefit pension cash contribution - (1,167)
Pension administrative costs 382 94
Other income (309) -
Changes in working capital:
Inventory 1,990 (1,422)
Trade and other receivables (1,254) (1,150)
Trade and other payables (1,007) (2,720)
Net cash inflow from operations 9,282 5,085
1. Segmental Analysis
The Group reports to the Chief Operating Decision Maker, the Board, on two
distinct segments of revenue. The Group's reportable segments are as follows;
Ceramics, the sale of ceramic tableware and complementary items and;
Materials, the sale of materials for the production of ceramics, predominantly
to the tableware industry.
2025 2024
£'000 £'000
Market segment - Revenue
Ceramics 70,171 71,097
Materials 12,485 13,059
82,656 84,156
Intra group revenue (6,379) (5,877)
76,277 78,279
2025 2024
£'000 £'000
Geographical segment - Revenue
United Kingdom 31,459 32,790
Rest of Europe 30,520 30,790
USA 8,558 7,232
Rest of the World 5,740 7,467
76,277 78,279
2025 2024
£'000 £'000
Operating profit
Ceramics 6,999 9,106
Ceramics 3,133 6,999
Materials 2,510 996
5,643 7,995
2025 2024
£'000 £'000
Unallocated items
Finance Income 631 611
Finance income 559 631
Finance costs (175) (90)
Profit before income tax 6,027 8,536
2. Finance income and costs
2025 2024
£'000 £'000
Interest income on cash and cash equivalents 111 227
Interest on defined benefit schemes 448 404
Finance income 559 631
Interest on lease liabilities (139) (74)
Other interest (36) (16)
Finance costs (175) (90)
Net finance income 384 541
3. Income tax expense
2025 2024
£'000 £'000
Group 1,566 1,679
Current tax - current year
Current tax - adjustment in respect of prior periods (30) 9
Current tax 1,536 1,688
Deferred tax
Current year 49 489
Current year - adjustment in respect of prior periods 81 (6)
Deferred tax 130 483
Income tax expense 1,666 2,171
4. Earnings per ordinary share
Basic earnings per ordinary share is based on the profit after income tax and
on 10,997,835
(2024: 10,997,835) ordinary shares, being the weighted average number of
ordinary shares in issue during the year.
2025 2024
Pence per Pence per
share
share
Basic earnings per share 39.7 57.9
(Based on earnings £4,361,000 (2024: £6,365,000))
Basic and diluted earnings per share are the same for the period as the Group
had no dilutive potential ordinary shares
5. Dividends
The dividends paid in the year were as follows:
Group and Company 2025 2024
£'000 £'000
Ordinary 2,914 2,749
Final dividend 2024 26.5p (2023: 25.0p) per 10p ordinary share
Interim 2025 7.0p (2024: 11.5p) per 10p ordinary share paid 770 1,265
3,684 4,014
The Directors now recommend payment of the following dividend:
Ordinary dividend:
Final dividend 2025 14.0p (2024: 26.5p) per 10p ordinary share 1,540 2,914
Dividends on treasury shares held by the Company are waived.
6. Retirement benefit assets 2025 2024
£'000 £'000
Statement of financial position asset
Pension benefits 7,651 8,179
Income statement charge / (income)
Pension benefits 1,264 1,029
Administrative costs 382 94
Finance income (448) (404)
The amounts recognised in the statement of financial position are determined
as follows:
2025 2024
£'000 £'000
Present value of funded obligations (36,932) (37,144)
Fair value of plan assets 44,583 45,323
Asset in statement of financial position 7,651 8,179
7. Basis of preparation and accounting policies
The financial information included in the preliminary announcement for year to
31 December 2025 has been approved by the Board on 10 April 2026.
The final financial statements do not constitute the statutory accounts of the
Company within the meaning of section 434 of the Companies Act 2006, but are
derived from those accounts, which have been prepared in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006
This information has been prepared under the historical cost and financial
assets and liabilities (including derivative instruments) at fair value
through the profit and loss account. The same accounting policies,
presentation and methods of computation are followed in the final financial
statements as were applied in the Group's financial statements for the year
ended 31 December 2024.
Statutory accounts for the year ended 31 December 2024 have been delivered to
the Registrar of Companies. The auditors have reported on those accounts.
Their report was not qualified, did not include a reference to any matters to
which the auditors drew attention by way of emphasis without qualifying their
report, and did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
Statutory accounts for the year ended 31 December 2025 will be delivered to
the Registrar of Companies after the Company's Annual General Meeting and will
also be available on the Company's website (www.churchill1795.com
(http://www.churchill1795.com/) ) in May 2026.
8. Statement of Directors' responsibilities in respect of the financial
statements
We confirm to the best of our knowledge that:
The Group Financial Statements, which have been prepared in accordance
with UK-adopted International Accounting Statements, give a true and fair
view of the assets, liabilities, financial position and profit of the Group;
and ·
The announcement includes a fair review of the development and performance of
the business and the position of the Group, together with a description of the
principal risks and uncertainties that it faces.
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