REG - Churchill China PLC - Full Year Trading Update

Churchill ChinaAnnouncement

17/01/2024 07:00

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RNS Number : 9076Z  Churchill China PLC  17 January 2024

 For immediate release  17 January 2024

 

 

CHURCHILL CHINA plc

("Churchill" or the "Company" or the "Group")

 

Full Year Trading Update

Churchill China plc (AIM: CHH), the manufacturer of innovative performance
ceramic products serving hospitality markets worldwide provides an update on
trading for the year ended 31 December 2023.

The Company is pleased to announce that margins have continued to improve
throughout the year and as a result profitability for the year is expected to
be in line with analyst forecasts. This is particularly pleasing given a more
challenging sales backdrop in H2 of 2023.

 

Revenue for the year was £82.1m (2022: £82.5m), with revenue in the second
half of £38.1m (H2 2022: £41.1m) with export sales remaining strong.

 

The reduced revenue for the year was offset by improving manufacturing yields
as the Company overcame its previously communicated staffing issues. In
addition, a further reduction in agency staff in Q4 supported margin
improvement.

 

The macro-economic situation in UK and Europe remains challenging and we
expect demand to remain weak for at least the first half of the year. Cost
increases, including the national living wage will have an impact on margins
in 2024 which will in part be mitigated by further efficiency improvements and
increased prices.

 

Robin Williams, Chairman of Churchill China, commented:

 

"We are pleased that we have delivered a good result in 2023 and have
continued to improve profitability and levels of efficiency despite the
difficult trading conditions. Churchill China is a resilient business and
whilst the outlook for 2024 remains challenging, we are confident that our
long-term strategy positions the Company well to benefit when demand
improves."

 

The Company expects to release its preliminary results for the year ended 31
December 2023 in April.

 

For further information, please contact:

 

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

 Buchanan                                           Tel: 020 7466 5000
 Mark Court / Sophie Wills / Abigail Gilchrist
 ChurchillChina@buchanan.uk.com

 Investec                                           Tel: 020 7597 (Tel:020%207597) 5970
 David Flin / Oliver Cardigan / William Brinkley

 

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