REG - Churchill China PLC - Full Year Trading Update

Churchill ChinaAnnouncement

07/01/2022 07:00

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RNS Number : 7010X  Churchill China PLC  07 January 2022

 For immediate release  07 January 2022

 

 

 

 

 

CHURCHILL CHINA plc

("Churchill China" or the "Company")

 

FULL YEAR TRADING UPDATE

 

Churchill China plc (AIM: CHH), the manufacturer of innovative performance
ceramic products serving hospitality markets worldwide, announces the
following trading update for the year ended 31 December 2021.

The Board expects to meet market expectations* for profit before taxation for
the year ended 31 December 2021. Churchill has continued to address the issues
set by the COVID pandemic whilst maintaining our focus on securing long term
market share gains. We have exceeded our earlier revenue estimates but have
experienced higher production cost levels as we have quickly scaled output to
meet demand and cost inflation has risen.

Revenue has continued to grow strongly and H2 sales, particularly in
Hospitality, have shown growth against 2019 comparatives. Order levels have
been high as overall supply into the market from our competitors has remained
constrained. We have chosen to meet this demand given our objective to support
our customers in a replacement orientated sector. We have performed
particularly well in Europe where sales have exceeded 2019 levels across the
year as a whole. Our market leading position has allowed us to bring forward
our normal price rise and implement a higher than normal increase to offset
some of the effects of higher cost inflation.

The necessity to scale production quickly in order to meet this increased
demand has created additional pressure on our operations alongside cost
inflation, leading to some inefficiencies within our manufacturing unit. We
expect these effects to continue into 2022, but to show progressive
improvement over the year as a whole. We believe that profitability in 2022
will show further substantial growth on 2021's outfall.

We have also accelerated our investment plans to reflect the need to reduce
energy costs and to improve productivity. Our financial position remains
robust and cash and deposit levels have increased from the half year position.

The current business environment has created both opportunities and
challenges, we remain clear that we will continue to make progress against our
strategic objectives across 2022. Churchill is a resilient business with a
model that emphasises the long term in respect of both customer service and
the creation of shareholder value.

The Company intends to announce its Preliminary Results for the year ended 31
December 2021 in April this year.

* Company compiled consensus market expectations for profit before taxation
for the financial year to 31 December 2021 is £5.6m.

 

For further information, please contact:

 

 Churchill China plc                                Tel: 01782 577566
 David O'Connor / David Taylor / James Roper

 Buchanan                                           Tel: 0207 466 5000
 Mark Court / Sophie Wills

 churchillchina@buchanan.uk.com

 Investec Bank plc (Nominated Adviser and Broker)
 David Flin / Alex Wright                           Tel: 0207 597 5970

 

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